<SUBMISSION>
<ACCESSION-NUMBER>0001161697-05-001338
<TYPE>10QSB
<PUBLIC-DOCUMENT-COUNT>18
<PERIOD>20050930
<FILING-DATE>20051123
<DATE-OF-FILING-DATE-CHANGE>20051123
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>ADSERO CORP
<CIK>0001103544
<ASSIGNED-SIC>6770
<IRS-NUMBER>650602729
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>10QSB
<ACT>34
<FILE-NUMBER>000-31040
<FILM-NUMBER>051222833
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>2101 NOBEL STREET
<CITY>SAINTE JULIE
<STATE>A8
<ZIP>J3E 1Z8
<PHONE>450-922-5689
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>2101 NOBEL STREET
<CITY>SAINTE JULIE
<STATE>A8
<ZIP>J3E 1Z8
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>REINK CORP
<DATE-CHANGED>20010212
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>10QSB
<SEQUENCE>1
<FILENAME>form10-qsb_sep302005.htm
<DESCRIPTION>FORM 10-QSB 09-30-05
<TEXT>
<HTML>
<HEAD>
<TITLE> </TITLE>
</HEAD>
<BODY bgcolor="#ffffff" style='font-family:"Times New Roman"'>

<div style='width:600;'>

<div style="border:none;border-bottom:solid .05em;padding:0in 0in 1.0pt 0in">
<div style="border:none;border-bottom:solid .05em;padding:0in 0in 1.0pt 0in">
<p>&nbsp;</p></div></div><BR>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>UNITED STATES</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>SECURITIES AND EXCHANGE COMMISSION</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>WASHINGTON, D.C. 20549</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>FORM 10-QSB </font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font face=Wingdings>x</font><font size=2> QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>SECURITIES EXCHANGE ACT OF 1934</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>For the quarterly period ended </font><u><font size=2>September 30, 2005</font></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>OR</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2><font face=Wingdings>o</font> TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>SECURITIES EXCHANGE ACT OF 1934</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>For the Transition Period from ___________ to ___________</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Commission File Number: 0-31040</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><U><B><font SIZE=2>ADSERO CORPORATION</font></B></U></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Exact name of Registrant as specified in its charter)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table width="600" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse'>
    <tr style=' height:41.45pt;border-color:gray'>
        <td width="295" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:41.45pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Delaware</font></u><br> <font size=2>(State or other jurisdiction of</font><br> <font size=2>incorporation or organization)</font></p> </td>
        <td width="295" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:41.45pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=2>65-0602729</font></u><br> <font size=2>(I.R.S. Employer Identification No.)</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>2101 Nobel Street</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Sainte Julie, Quebec</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><U><font SIZE=2>J3E 1Z8</font></U></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Address of principal executive offices, including zip code)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><u><font size=2>(450) 922-5689</font></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Registrant&#146;s telephone number, including area code)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>Check whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months, and (2) has been subject to such filing requirements for the past 90 days. Yes </font><font face=Wingdings>x</font><font size=2>  No <font face=Wingdings>o</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>The number of shares of the
Registrant&#146;s common stock outstanding at November 15, 2005, was 17,241,975. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="432" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="288" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Transitional Small Business Disclosure Format:</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Yes <font face=Wingdings>o</font></font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>No </font><font face=Wingdings>x</font></p> </td> </tr></table>


<div style="border:none;border-bottom:solid .05em;padding:0in 0in 1.0pt 0in">
<div style="border:none;border-bottom:solid .05em;padding:0in 0in 1.0pt 0in">
<p>&nbsp;</p></div></div><BR>

<pAGE>

<BR>
<BR>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>ADSERO CORPORATION</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>SEPTEMBER 30, 2005 QUARTERLY REPORT ON FORM 10-QSB</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>TABLE OF CONTENTS</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>&nbsp;</font></p>


<table width="600" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse'>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt;border-color:gray'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="432" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="56" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><U><B><font SIZE=2>PAGE</font></B></U><u></u></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="432" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="56" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="432" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Special Note Regarding Forward Looking Statements </font></p> </td>
        <td width="56" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>3</font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="432" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="56" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="432" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="56" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td  colspan="3" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>PART I FINANCIAL INFORMATION</font></B></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="432" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="56" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Item 1.</font></p> </td>
        <td width="432" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Financial Statements </font></p> </td>
        <td width="56" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>4</font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin:0in;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="432" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin:0in;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="56" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p align=center style='margin:0in;margin-bottom:.0001pt;text-align:center'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin:0in;margin-bottom:.0001pt'><font size=2>Item 2.</font></p> </td>
        <td width="432" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin:0in;margin-bottom:.0001pt'><font size=2>Plan of Operation</font></p> </td>
        <td width="56" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p align=center style='margin:0in;margin-bottom:.0001pt;text-align:center'><font size=2>35</font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin:0in;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="432" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin:0in;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="56" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p align=center style='margin:0in;margin-bottom:.0001pt;text-align:center'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin:0in;margin-bottom:.0001pt'><font size=2>Item 3</font></p> </td>
        <td width="432" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin:0in;margin-bottom:.0001pt'><font size=2>Controls and Procedures</font></p> </td>
        <td width="56" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p align=center style='margin:0in;margin-bottom:.0001pt;text-align:center'><font size=2>36</font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin:0in;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="432" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin:0in;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="56" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p align=center style='margin:0in;margin-bottom:.0001pt;text-align:center'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin:0in;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="432" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin:0in;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="56" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p align=center style='margin:0in;margin-bottom:.0001pt;text-align:center'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td  colspan="3" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>PART II OTHER INFORMATION</font></B></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="432" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="56" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Item 1.</font></p> </td>
        <td width="432" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Legal Proceedings</font></p> </td>
        <td width="56" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>37</font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="432" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="56" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Item 2.</font></p> </td>
        <td width="432" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Changes in Securities and Use of Proceeds</font></p> </td>
        <td width="56" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>37</font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="432" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="56" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Item 3.</font></p> </td>
        <td width="432" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Defaults Upon Senior Securities</font></p> </td>
        <td width="56" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>39</font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="432" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="56" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Item 5.</font></p> </td>
        <td width="432" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Other Information</font></p> </td>
        <td width="56" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>39</font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="432" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="56" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Item 6.</font></p> </td>
        <td width="432" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Exhibits</font></p> </td>
        <td width="56" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>45</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>2</font></p>
<BR>
<HR noshade align="center" width="100%" size="2">

<pAGE>

<BR>
<BR>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>To the extent that the information presented in this Quarterly Report on Form 10-QSB for the quarter ended September 30, 2005, discusses financial projections, information or expectations about our products or markets, proposed financing and acquisition activities, or otherwise makes statements about future events, such statements are forward-looking. We are making these forward-looking statements in reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Although we believe that the expectations reflected in these forward-looking statements are based on reasonable assumptions, there are a number of risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. These risks and uncertainties are described, among other places in this Quarterly Report, in &#147;Plan of Operation&#148;.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.55in;text-align:justify;'><font size=2>In addition, we disclaim any obligations to update any forward-looking statements to reflect events or circumstances after the date of this Quarterly Report. When considering such forward-looking statements, you should keep in mind the risks referenced above and the other cautionary statements in this Quarterly Report.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>3</font></p>
<BR>
<HR noshade align="center" width="100%" size="2">

<pAGE>

<BR>
<BR>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>PART I - FINANCIAL INFORMATION</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="576" style='border-collapse:collapse; '>
    <tr >
        <td width="76" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>ITEM 1.</font></p> </td>
        <td width="440" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>FINANCIAL STATEMENTS</font></p> </td>
        <td width="60" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><U><font SIZE=2>PAGE</font></U></p> </td> </tr>
    <tr >
        <td width="76" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="440" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="60" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="76" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="440" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="60" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="76" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="440" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Condensed Consolidated Balance Sheet as of September 30, 2005 (unaudited)</font></p> </td>
        <td width="60" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>5</font></p> </td> </tr>
    <tr >
        <td width="76" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="440" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="60" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="76" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="440" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="60" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="76" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="440" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Condensed Consolidated
Statements of Operations for the three and nine months ended September 30, 2005 and 2004 (unaudited) </font></p> </td>
        <td width="60" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>6</font></p> </td> </tr>
    <tr >
        <td width="76" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="440" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="60" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="76" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="440" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="60" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:44.55pt'>
        <td width="76" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:44.55pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="440" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:44.55pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2005 and 2004 (unaudited) </font></p> </td>
        <td width="60" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:44.55pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>7</font></p> </td> </tr>
    <tr >
        <td width="76" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="440" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="60" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="76" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="440" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Notes to Condensed Consolidated Financial Statements (unaudited)</font></p> </td>
        <td width="60" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>8</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>4</font></p>
<BR>
<HR noshade align="center" width="100%" size="2">
<pAGE>
<BR><BR>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>ADSERO CORP. AND SUBSIDIARIES<BR>
CONDENSED CONSOLIDATED BALANCE SHEET<BR>
September 30, 2005<BR>
(unaudited)</B></FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="600">
 <TR style="font-size:1px">
  <TD WIDTH="78%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="3%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="13%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT>&nbsp;</P>
  </TD>
  <TD WIDTH="3%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2><B><U>ASSETS</U></B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>CURRENT ASSETS</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"
SIZE=2>Cash</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>86,998  </FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Accounts
receivable, net</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>3,465,890  </FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"
SIZE=2>Inventories</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>5,105,107  </FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Income
taxes receivable</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>273,259  </FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Prepaid
expenses and other assets</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>265,342  </FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Deferred
income taxes</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>160,207  </FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2><B>TOTAL
CURRENT ASSETS</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>9,356,803</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Property,
plant and equipment, net</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>2,125,037  </FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"
SIZE=2>Trademarks</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>483,333  </FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Investment
in prospective acquire</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>1,001,000  </FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"
SIZE=2>Goodwill</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>6,946,875  </FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Other
assets</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>644,153  </FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Total
Assets</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>20,557,201  </FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2><B><U>LIABILITIES AND STOCKHOLDERS&#146; EQUITY</U></B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>CURRENT LIABILITIES</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Line of
credit obligation</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>2,162,204  </FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Installment
loans</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>382,716  </FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Accounts
payable</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>5,339,293  </FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Salaries
and Benefits</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>723,398  </FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Warranties
and related accruals</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>351,022  </FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Accrued
expenses</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>1,136,647  </FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Liabilities
of discontinued operation</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>2,125,341  </FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Notes
payable - Related Parties (including
  accrued interest of $66,495)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>172,988  </FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Redeemable
preferred stock of subsidiary</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>1,570,732  </FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Current
portion of long-term debt</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>41,485  </FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2><B>TOTAL
CURRENT LIABILITIES</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>14,005,826  </FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"
SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Long-term
debt, less current portion</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>57,175  </FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Convertible
promissory note</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>1,639,320  </FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Deferred
income taxes</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>373,014  </FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Total
Liabilities</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>16,075,335  </FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>Commitments and Contingencies</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>STOCKHOLDERS&#146; EQUITY</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Common
stock, $.001 par value, 100,000,000
  shares authorized,17,241,975 shares issued and outstanding</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>17,243  </FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Series I
exchangeable shares of subsidiary,
  6,500,000 shares outstanding, exchangeable one for one into common shares of
  the company</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>3,250,000  </FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Preferred
Stock, $.0001 par value,
  20,000,000 shares authorized, 6,500,000 issued and outstanding</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>650  </FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Additional
paid-In-capital</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>11,297,497  </FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Common
stock to be issued</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>2,308,779  </FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Deferred
compensation</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(27,998  </FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Accumulated
other comprehensive income -
  Foreign currency translation adjustment</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>123,289  </FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Accumulated
deficit</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(12,487,594  </FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2><B>TOTAL
STOCKHOLDERS&#146; EQUITY</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>4,481,866  </FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Total
Liabilities and Stockholders&#146; Equity</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>20,557,201  </FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
</TABLE>

<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2"><B>See notes to condensed consolidated financial
statements</B> </FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2>5</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=2><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR><BR>

<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"  SIZE=2><B>ADSERO CORP. AND SUBSIDIARIES<BR>
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS<BR>
(unaudited)</B></FONT></P>

<TABLE  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="600">
 <TR style="font-size:1px">
  <TD WIDTH="29%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="3%" VALIGN=BOTTOM>
  <P ALIGN=CENTER>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P ALIGN=CENTER>&nbsp;</P>
  </TD>
  <TD WIDTH="13%" VALIGN=BOTTOM>
  <P ALIGN=CENTER>&nbsp;</P>
  </TD>
  <TD WIDTH="3%" VALIGN=BOTTOM>
  <P ALIGN=CENTER>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P ALIGN=CENTER>&nbsp;</P>
  </TD>
  <TD WIDTH="13%" VALIGN=BOTTOM>
  <P ALIGN=CENTER>&nbsp;</P>
  </TD>

  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P ALIGN=CENTER>&nbsp;</P>
  </TD>
 <TD WIDTH="3%" VALIGN=BOTTOM>
  <P ALIGN=CENTER>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P ALIGN=CENTER>&nbsp;</P>
  </TD>
  <TD WIDTH="13%" VALIGN=BOTTOM>
  <P ALIGN=CENTER>&nbsp;</P>
  </TD>
  <TD WIDTH="3%" VALIGN=BOTTOM>
  <P ALIGN=CENTER>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P ALIGN=CENTER>&nbsp;</P>
  </TD>
  <TD WIDTH="13%" VALIGN=BOTTOM>
  <P ALIGN=CENTER>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P ALIGN=CENTER>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="5" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1><B>Three
  Months Ended</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>

  <TD  COLSPAN="5" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1><B>Nine
  Months Ended</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="6" VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>

  <TD  COLSPAN="6" VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM NOWRAP>
  <P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1><B>September
  30, 2005</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM NOWRAP>
  <P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1><B>September
  30, 2004</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>

  <TD  COLSPAN="2" VALIGN=BOTTOM NOWRAP>
  <P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1><B>September
  30, 2005</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM NOWRAP>
  <P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1><B>September
  30, 2004</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>

  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>REVENUES</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>6,503,215</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>-</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>

  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>20,249,635</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>

  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>COST OF
  GOODS SOLD</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>5,169,535</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>-</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>

  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>15,065,687</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>

  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"    SIZE=2>GROSS PROFIT</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>1,333,680</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>-</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>

  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>5,183,948</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>-</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>

  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>

  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>OPERATING
  EXPENSES</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>

  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"    SIZE=2>Salaries and Compensation expenses</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>709,604</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>

  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>2,286,851</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"    SIZE=2>Sales and Administrative expenses</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>766,765</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>335,605</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>

  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>2,121,192</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>621,719</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"    SIZE=2>Restructuring charge</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>52,505</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>-</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>

  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>52,505</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>-</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"    SIZE=2>Conversion of debt expense</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>-</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>-</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>

  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>-</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>627,340</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"    SIZE=2>Depreciation and amortization</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>226,527</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>-</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>

  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>363,153</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>-</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>

  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"    SIZE=2>TOTAL OPERATING EXPENSES</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>1,755,401</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>335,605</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>

  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>4,823,701</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>1,249,059</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>

  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>

  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>INCOME
  (LOSS) FROM OPERATIONS</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>(421,721</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>(335,605</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>

  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>360,247</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>(1,249,059</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>)</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>

  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"    SIZE=2>INTEREST EXPENSE</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>332,386</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>13,596</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>

  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>721,492</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>41,456</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>

  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>

  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>LOSS BEFORE
  INCOME TAXES</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>(754,107</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>(349,201</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>

  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>(361,245</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>(1,290,515</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>)</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>

  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"    SIZE=2>INCOME TAXES</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>68,583</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>-</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>

  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>137,377</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>-</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>

  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>

  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>NET LOSS</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>(822,690</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>(349,201</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>

  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>(498,622</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>(1,290,515</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>)</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>

  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>

  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>LOSS PER
  SHARE</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>

  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>

  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"    SIZE=2>NET LOSS PER SHARE, BASIC AND DILUTED</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>(0.05</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>(0.03</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>

  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>(0.03</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>(0.15</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>)</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>

  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>

  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"    SIZE=2>WEIGHTED AVERAGE NUMBER OF SHARES USED IN
  COMPUTATION</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>17,241,975</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>10,925,755</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>

  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>16,658,197</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>8,774,865</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=1>&nbsp;</FONT></P>
  </TD>

  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>
  </TD>
 </TR>
</TABLE>

<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2"><B>See notes to condensed consolidated financial
statements</B> </FONT></P>


<P ALIGN=CENTER><FONT  SIZE=2>6</FONT></P>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=2><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR><BR>


<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif"  SIZE=2><B>ADSERO CORP. AND SUBSIDIARIES<BR>
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS<BR>
(unaudited)</B></FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="600">
 <TR style="font-size:1px">
  <TD WIDTH="64%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="3%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="13%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT>&nbsp;</P>
  </TD>
  <TD WIDTH="3%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="13%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="6" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1><B>Nine months ended</B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="6" VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1><B>September 30, 2005</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1><B>September 30, 2004</B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2><B>CASH FLOWS FROM OPERATING
ACTIVITIES:</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Net Loss</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(498,622</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(1,290,515</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Adjustments to reconcile net
loss to net
  cash</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>provided by (used in)
operating activities:</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Depreciation and
amortization</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>363,153</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Bad debt reserve</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>34,957</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Inventory reserve</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>189,492</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Non-cash interest
expense</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>191,934</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Deferred income
taxes</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>285,555</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Stock based
compensation</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>83,995</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Conversion of debt
expense</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>627,340</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Changes in operating assets
and
  liabilities:</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Accounts
receivable</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>320,385</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Inventories</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(1,965,684</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Prepaid expenses and other
assets</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(757,679</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Accounts payable and
accrued expenses</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>1,361,260</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>116,222</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Income taxes
receivable</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>512,238</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:.6IN;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=2>Total Adjustments</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>619,606</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>743,562</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2><B>NET CASH PROVIDED BY
(USED IN) OPERATING
  ACTIVITIES</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>120,986</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(546,953</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2><B>CASH FLOWS USED IN
INVESTING ACTIVITIES</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Investment in
Turbon</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(1,001,000</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Acquisition of business,
net of cash
  received</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(3,100,359</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Puchase of fixed
assets</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(96,477</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Proceeds received from sale
of building</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>2,777,460</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2><B>NET CASH USED IN
INVESTING ACTIVITIES</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(1,420,376</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2><B>CASH FLOWS FROM FINANCING
ACTIVITIES</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Repayment on notes payable
to related
  parties</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(76,079</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Repayment of mortgage</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(2,338,375</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Principal payments on long
term debt</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(686,853</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Bank loan</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(506,069</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Proceeds from issuances of
common stock</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>2,511,250</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>519,588</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Proceeds from sale of
special warrants</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>205,000</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Proceeds from issuances of
convertible
  notes</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>2,666,666</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>70,075</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Proceeds (repayments) of
loan payable</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(275,000</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>52,500</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2><B>NET CASH PROVIDED BY
FINANCING ACTIVITIES</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>1,295,540</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>847,163</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2><B>EFFECT OF EXCHANGE RATE
ON CASH</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(70,852</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2><B>NET INCREASE (DECREASE)
IN CASH</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(74,702</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>300,210</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2><B>CASH AT BEGINNING OF
PERIOD</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>161,700</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>444</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2><B>CASH AT END OF
PERIOD</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>86,998</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>300,654</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  COLSPAN="8" VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>SUPPLEMENTAL DISCLOSURE OF NONCASH<BR>INVESTING AND FINANCING
ACTIVITIES</B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>ACQUISITION OF
BUSINESS</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Assets acquired</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>13,292,123</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>costs in excess of net
assets acquired</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>7,446,875</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Liabilities
assumed</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(12,364,345</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Stock based purchase
consideration</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(3,250,000</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Redeemable preferred stock
issued as
  purchase consideration</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(1,570,732</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Non cash expenses</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(376,865</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>cash received at
closing</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(38,348</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Net cash paid for
acquisition of business</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>3,138,707</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
</TABLE>

<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2"><B>See notes to condensed consolidated financial
statements</B> </FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2>7</FONT></P>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=2><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR><BR>

<P ALIGN=CENTER><FONT  SIZE=2>ADSERO CORP. AND SUBSIDIARIES<BR>
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<BR>
SEPTEMBER 30, 2005<BR>
(unaudited)</FONT></P>

<P ALIGN=JUSTIFY><FONT SIZE=2>1. BASIS OF
INTERIM FINANCIAL STATEMENT PRESENTATION</FONT></P>

<TABLE  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="600">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>The accompanying unaudited
  condensed consolidated financial statements have been prepared by the Company
  in conformity with accounting principles generally accepted in the United
  States of America and the instructions to Form 10-QSB. It is management&#146;s
  opinion that these statements include all adjustments, consisting of only
  normal recurring adjustments considered necessary to make the financial
  position, results of operations, and cash flows not misleading as of
  September 30, 2005 and for all periods presented.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>Certain information and
  footnote disclosures normally included in the annual financial statements
  prepared in accordance with accounting principles generally accepted in the
  United States of America have been condensed or omitted. These condensed
  consolidated financial statements should be read in conjunction with the
  consolidated financial statements and notes thereto as of December 31, 2004
  and for the year ended December 31, 2004, which are included in the Company&#146;s
  Annual Report on Form 10KSB for the year ended December 31, 2004 filed with
  the Securities and Exchange Commission.</FONT></P>
  </TD>
 </TR>
</TABLE>

<P ALIGN=JUSTIFY><FONT SIZE=2>2.
ORGANIZATION</FONT></P>

<TABLE  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="600">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>Adsero Corp. (&#147;Adsero&#148;),
  formerly known as Reink Corp., was incorporated in Delaware on March 6, 1999.
  Adsero Corp, is the parent of wholly owned subsidiaries Teckn-O-Laser Global
  Company, Teckn-O-Laser Inc. and Tecknolaser USA inc. (collectively the
  &#147;Tecknolaser Group&#148;) which acquisitions were completed effective January 2,
  2005 as described in Note 14.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>Adsero and the Tecknolaser
  Group (collectively the &#147;Company&#148;) manufactures and distributes
  remanufactured toner cartridges and inkjet cartridges. These products are
  sold through a variety of channels such as distributors and retail office
  supply stores, both domestically and internationally.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2><U>Development Stage Operations</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>Effective January 2, 2005, the Company no longer considers itself to be a
  development stage company.</FONT></P>
  </TD>
 </TR>
</TABLE>



<P ALIGN=CENTER><FONT  SIZE=2>8</FONT></P>


<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=2><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR><BR>


<TABLE  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="600">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>3. LIQUIDITY AND FINANCIAL CONDITION</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>The accompanying financial
  statements have been prepared assuming that the Company will continue as a
  going concern, which contemplates the realization of assets and satisfaction
  of liabilities in the normal course of business.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>At September 30, 2005, the
  Company had a working capital deficiency of $4,649,023 and was not in
  compliance with certain covenants under its line of credit obligation
   and certain of its term loans described in Note 10. The lender under these
  obligations has the right to demand immediate repayment of these loans due to
  the event of default. The exercise of these rights and the requirement to
  immediately repay the outstanding balances, which amounts to an aggregate of
  $2,517,636 at September 30, 2005, would have a material adverse effect on the
  business. There can be no assurance that the lender under these obligations
  will provide the Company with a waiver of this breach of covenant.</FONT></P>
  </TD>
 </TR>
<TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>During the nine months ended September 30, 2005 the Company raised  $2,511,250 through sales of its equity securities and $2,666,666
through issuance of convertible notes.  Subsequent to September 30, 2005 the Company raised an additional $3,200,000 through sales of
its equity securities and $3,400,000 in debt financing. (Note 20)</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>The Company&#146;s ability to
  recover its assets and continue its operations is dependent upon its ability
  to raise additional capital and generate revenue and operating cash flow
  through the execution of its business plan. There can be no assurance that
  the Company will be successful in its efforts to operate the Tecknolaser
  Group or any other prospective acquiree businesses profitably. The Company
  can also not provide any assurance that it will obtain the financing it needs
  to sustain the business until such time that it is able to generate
  sufficient revenue and operating cash flow through the operations of the
  Tecknolaser Group or other prospective acquiree businesses. These matters
  raise substantial doubt about the Company&#146;s ability to continue as a going
  concern. The financial statements do not include any adjustments relating to
  the recovery of the recorded assets or the classification of liabilities that
  might be necessary should the Company be unable to continue as a going
  concern.</FONT></P>
  </TD>
 </TR>
</TABLE>

<P ALIGN=JUSTIFY><FONT SIZE=2>4. SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES</FONT></P>

<TABLE  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="600">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2><U>Principles of Consolidation</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>The consolidated financial
  statements include the accounts of the Company and its wholly-owned
  subsidiaries. All significant inter-company transactions have been
  eliminated.</FONT></P>
  </TD>
 </TR>
</TABLE>



<P ALIGN=CENTER><FONT  SIZE=2>9</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=2><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR><BR>


<TABLE  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="600">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2><U>Revenue Recognition</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>The Company applies the
  revenue recognition principles set forth in Securities and Exchange
  Commission Staff Accounting Bulletin (&#147;SAB&#148;) 104 &#147;Revenue Recognition&#148; with
  respect to all of its revenue. Accordingly, the Company records revenue when
  (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred,
  (iii) the vendor&#146;s fee is fixed or determinable, and (iv) collectability is
  probable. The Company requires all of its product sales to be supported by
  evidence of a sale transaction that clearly indicates the selling price to
  the customer, shipping terms, payment terms (generally 30 days) and refund
  policy, if any. Selling prices of the products are fixed at the time the sale
  is consummated. The Company recognizes revenue at the time in which it
  receives a confirmation that the goods were either tendered at their
  destination when shipped &#147;FOB destination,&#148; or transferred to a shipping
  agent when &#147;FOB shipping point.&#148;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2><U>Cash and Cash Equivalents</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>The Company considers all
  highly liquid securities purchased with original maturities of three months
  or less to be cash equivalents.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2><U>Accounts Receivable</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>The Company has a policy of
  reserving for uncollectible accounts based on its best estimate of the amount
  of probable credit losses in its existing accounts receivable. The Company
  periodically reviews its accounts receivable to determine whether an
  allowance is necessary based on an analysis of past due accounts and other
  factors that may indicate that the realization of an account may be in doubt.
  Account balances deemed to be uncollectible are charged to the allowance
  after all means of collection have been exhausted and the potential for
  recovery is considered remote. As of September 30, 2005, the Company has had
  a low occurrence of credit losses and based on a review of balances
  outstanding has determined that an allowance for doubtful accounts of $34,957
  is necessary.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2><U>Inventories</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>The Company&#146;s inventories,
  which consists of raw material and finished goods are stated at the lower of
  cost (first in first out method) or market.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2><U>Property and Equipment</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>Property and Equipment are
  stated at cost less accumulated depreciation and amortization, Depreciation
  and amortization are calculated using the straight line methods over the
  estimated useful lives, which generally range from 3 to 10 years.</FONT></P>
  </TD>
 </TR>
</TABLE>



<P ALIGN=CENTER><FONT  SIZE=2>10</FONT></P>


<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=2><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR><BR>


<TABLE  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="600">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2><U>Goodwill</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>Goodwill represents the excess
  of purchase considerations and related transaction expenses that are incurred
  in connection with completing acquisitions of businesses accounted for in
  accordance with SFAS 141 &#147;Business Combinations.&#148; SFAS 142, &#147;Goodwill and
  Other Intangible Assets,&#148; requires that goodwill be tested for impairment at
  the reporting unit level (operating segment or one level below an operating
  segment) on an annual basis and between annual tests in certain
  circumstances. Application of the goodwill impairment test requires judgment,
  including the identification of reporting units, assigning assets and
  liabilities to reporting units, assigning goodwill to reporting units, and
  determining the fair value. Significant judgments required to estimate the
  fair value of reporting units include estimating future cash flows,
  determining appropriate discount rates and other assumptions.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>The Company did not experience
  any events or changes in circumstances during the nine-month period ended
  September 30, 2005 that would indicate that the recoverability of its goodwill
  is in doubt.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2><U>Long Lived Assets</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>The Company periodically
  reviews the carrying values of its long lived assets in accordance with SFAS
  144 &#147;Long Lived Assets&#148; when events or changes in circumstances would
  indicate that it is more likely than not that their carrying values may
  exceed their realizable values and records impairment charges when considered
  necessary. The Company has determined that no impairment charges are
  necessary during the quarter ended September 30, 2005.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2><U>Use of Estimates</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>The preparation of financial
  statements in conformity with accounting principles generally accepted in the
  United States of America requires management to make estimates and
  assumptions that affect the reported amounts of assets and liabilities and
  disclosures of contingent assets and liabilities at the date of the financial
  statements and the reported amounts of revenues and expenses during the
  reporting period. Actual results could differ from those estimates.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2><U>Fair Value of Financial
  Instruments</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>The carrying amounts reported
  in the balance sheet for cash, accounts receivable, accounts payable and
  accrued expenses and preferred stock redeemable during the next year
  approximate fair value based on the short-term maturity of these instruments.
  The carrying amounts of the Company&#146;s line of credit obligation, and other
  long term obligations approximate fair value as such instruments feature
  contractual interest rates that are consistent with current market rates of
  interest or have effective yields that are consistent with instruments of
  similar risk, when taken together with equity instruments issued to the
  holder.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2><U>Common Stock Purchase Warrants
  Issued in Private Placement Transactions</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>The Company accounts for the
  issuance of common stock purchase warrants issued in connection with sales of
  its common stock in accordance with the provisions of EITF 00-19 &#147;Accounting
  for Derivative Financial Instruments Indexed to, and Potentially Settled in,
  a Company&#146;s Own Stock&#148;.</FONT></P>
  </TD>
 </TR>
</TABLE>



<P ALIGN=CENTER><FONT  SIZE=2>11</FONT></P>


<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=2><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR><BR>



<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
<P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>Based on the provisions of
  EITF 00-19, the Company classifies as equity any contracts that (i) require
  physical settlement or net-share settlement or (ii) gives the Company a
  choice of net-cash settlement or settlement in its own shares (physical settlement
  or net-share settlement). The Company classifies as assets or liabilities any
  contracts that (i) require net-cash settlement (including a requirement to
  net cash settle the contract if an event occurs and if that event is outside
  the control of the Company) (ii) give the counterparty a choice of net-cash
  settlement or settlement in shares (physical settlement or net-share
  settlement).</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2><U>Stock Based Compensation</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>As permitted under SFAS No.
  148, &#147;Accounting for Stock-Based Compensation--Transition and Disclosure&#148;,
  which amended SFAS No. 123 (&#147;SFAS 123&#148;), &#147;Accounting for Stock-Based
  Compensation&#148;, the Company has elected to continue to follow the intrinsic
  value method in accounting for its stock-based employee compensation
  arrangements as defined by Accounting Principles Board Opinion (&#147;APB&#148;) No.
  25, &#147;Accounting for Stock Issued to Employees&#148;, and related interpretations
  including &#147;Financial Accounting Standards Board Interpretation No. 44,
  Accounting for Certain Transactions Involving Stock Compensation&#148;, an
  interpretation of APB No. 25. No stock-based employee compensation cost is
  reflected in net income, as all options that the Company granted had exercise
  prices equal to the fair market value of the underlying common stock, on
  their dates of grant.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>As described in Note 13, the
  Company granted 244,500 stock options, to certain employees of Tecknolaser
  Group and 110,000 to the three independent members of its board of directors
  during the quarter ended March 31, 2005.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>The following table
  illustrates what the Company&#146;s net income and earnings per share would have
  been if the Company had used the fair value based method of accounting for
  its employee stock option plans, as prescribed by SFAS No. 123:</FONT></P>
  </TD>
 </TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">

 <TD WIDTH="5%"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT> </TD>
 <TD WIDTH="45%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="3%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="7%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT>&nbsp;</P>
  </TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="7%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT>&nbsp;</P>
  </TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="7%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT>&nbsp;</P>
  </TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT> </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="5" VALIGN=BOTTOM NOWRAP>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1><B>For the Three Months Ended<BR>
  September 30,</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="5" VALIGN=BOTTOM  NOWRAP>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1><B>For the Nine Months Ended<BR>
  September 30,</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT> </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="5" VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="5" VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT> </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1><B>2005</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1><B>2004</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1><B>2005</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1><B>2004</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>

 <TR>
  <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT> </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Net loss, as reported</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(822,690</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(349,201</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(498,622</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(1,290,515</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT> </TD>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"
SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT> </TD>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Incremental
amount of stock based
  compensation expense determined under the fair value method</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(51,080</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(3,125</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(132,861</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(3,125</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT> </TD>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"
SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT> </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Net loss, pro-forma</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(873,770</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(352,326</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(631,483</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(1,293,640</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT> </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT> </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Income loss per share:</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT> </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT> </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Basic and
diluted, as reported</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(0.05</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(0.03</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(0.03</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(0.15</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT> </TD>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"
SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT> </TD>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"
SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT> </TD>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Basic and
Diluted, pro-forma</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(0.05</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(0.03</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(0.03</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(0.15</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT> </TD>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"
SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
</TABLE>



<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif"  SIZE=2 >12</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=2><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR>
<BR>
<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
<P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2><U>Non-Employee Stock Based
  Compensation</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
<P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>The Company accounts for the
  cost of stock based compensation awards issued to non-employees for services
  at either the fair value of the services rendered or the instruments issued
  in exchange for such services, whichever is more readily determinable, using
  the measurement date guidelines enumerated in Emerging Issues Task Force
  Issue (&#147;EITF&#148;) 96-18, &#147;Accounting for Equity Instruments That Are Issued to
  Other Than Employees for Acquiring, or in Conjunction with Selling, Goods or
  Services.&#148;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>

 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2><U>Income Taxes</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>The Company accounts for
  income taxes under Statement of Financial Accounting Standards No. 109,
  Accounting for Income Taxes (&#147;SFAS No. 109&#148;). SFAS No. 109 requires the
  recognition of deferred tax assets and liabilities for both the expected
  impact of differences between the financial statements and tax basis of
  assets and liabilities and for the expected future tax benefit to be derived
  from tax loss and tax credit carry forwards. SFAS No. 109 additionally
  requires the establishment of a valuation allowance to reflect the likelihood
  of realization of deferred tax assets.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2><U>Net Income (Loss) Per Share</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>The Company presents net
  income (loss) per share (&#147;EPS&#148;) in accordance with SFAS No. 128, &#147;Earnings
  per Share.&#148; Accordingly, the Company computes basic EPS based upon the
  weighted average number of common shares outstanding. Diluted EPS , when
  presented is computing using the weighted average number of common and
  potential common shares outstanding. Potential common shares would include
  stock options using the treasury stock method, and convertible notes and
  exchangeable shares using the &#147;if converted&#148; method. Potential common shares
  are excluded from the calculation of diluted EPS in loss periods, as the
  impact is anti-dilutive.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>The following table provides a
  summary of all potentially dilutive securities for the quarters ended
  September 30, 2005 and 2004, of which the amounts presented for the quarter
  ended September 30, 2005 have been excluded from the computation of the loss
  per share as their effect would be anti-dilutive:</FONT></P>
  </TD>
 </TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="70%">
 <TR style="font-size:1px">
  <TD WIDTH="63%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="4%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="13%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT>&nbsp;</P>
  </TD>
  <TD WIDTH="4%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="10%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="5" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1><B>September 30,</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1><B>2005</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1><B>2004</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Stock options</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>784,500</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>337,500</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Common stock purchase warrants</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>8,458,978</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>281,430</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Series I exchangeable shares</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>6,500,000</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Convertible debentures</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>1,639,320</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>70,000</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Total</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>17,382,798</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>688,930</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
</TABLE>





<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif"  SIZE=2 >13</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=2><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR>
<BR>
<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2><U>Foreign currency translation</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>The consolidated financial
  statements are presented in United States dollars in accordance with SFAS No.
  52, &#147;Foreign Currency Translation&#148;. The functional currency of the
  Tecknolaser Group is the Canadian dollar. Foreign denominated monetary assets
  are translated to United States dollars using foreign exchange rates in
  effect at the balance sheet date. Revenues and expenses are translated at the
  average rate of exchange during the period. Gain or losses arising on foreign
  currency transactions are included in the determination of operating results
  for the period.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2><U>Recently Issued Accounting
  Pronouncements</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>In January 2003, Financial
  Accounting Standards Board (&#147;FASB&#148;) issued FASB Interpretation No. 46,
  &#147;Consolidation of Variable Interest Entities&#148; (&#147;FIN 46&#148;). This interpretation
  of Accounting Research Bulletin No. 51, &#147;Consolidated Financial Statements,&#148;
  provides guidance for identifying a controlling interest in a variable
  interest entity (&#147;VIE&#148;) established by means other than voting interest. FIN
  46 also required consolidation of a VIE by an enterprise that holds such
  controlling interest. In December 2003, the FASB completed its deliberations
  regarding the proposed modifications to FIN No., 46 and issued Interpretation
  Number 46R, &#147;Consolidation of Variable Interest Entities &#150; an Interpretation
  of ARB 51&#148; (&#147;FIN No. 46 R&#148;). The decisions reached included a deferral of the
  effective date and provisions for additional scope exceptions for certain
  types of variable interests. Application of FIN No. 46R is required in
  financial statements of public entities that have interests in VIEs or
  potential VIEs commonly referred to as special-purpose entities for periods
  ending after December 15, 2003. Application by public issuers&#146; entities is
  required in all interim and annual financial statements for periods ending
  after December 15, 2004. The adoption of this pronouncement did not have a
  material effect on the Company&#146;s financial statements.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>In December 2004, the FASB
  issued SFAS No. 123R &#147;Share Based Payment&#148;. This statement is a revision of
  SFAS Statement No. 123, &#147;Accounting for Stock-Based Compensation&#148; and
  supersedes APB Opinion No. 25, Accounting for Stock Issued to Employees, and
  its related implementation guidance. SFAS 123R addresses all forms of share
  based payment (&#147;SBP&#148;) awards including shares issued under employee stock
  purchase plans, stock options, restricted stock and stock appreciation
  rights. Under SFAS 123R, SBP awards result in a cost that will be measured at
  fair value on the awards&#146; grant date, based on the estimated number of awards
  that are expected to vest and will result in a charge to operations for
  stock-based compensation expense. SFAS 123R is effective for public entities
  that file as small business issuers--as of the beginning of the first annual
  reporting period of the fiscal year that begins after December 15, 2005.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>The Company is currently in
  the process of evaluating the effect that the adoption of this pronouncement
  will have on its financial statements.</FONT></P>
  </TD>
 </TR>

 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>

 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
<P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>In December 2004, the FASB
  issued SFAS No. 153, &#147;Exchanges of Nonmonetary Assets&#148;. SFAS 153 amends APB
  Opinion No. 29 to eliminate the exception for nonmonetary exchanges of
  similar productive assets and replaces it with a general exception for
  exchanges of nonmonetary assets that do not have commercial substance. A
  nonmonetary exchange has commercial substance if the future cash flows of the
  entity are expected to change significantly as a result of the exchange. The
  provisions of SFAS 153 are effective for nonmonetary asset exchanges
  occurring in fiscal periods beginning after June 15, 2005. Earlier
  application is permitted for nonmonetary asset exchanges occurring in fiscal
  periods beginning after December 16, 2004. The provisions of this Statement are
  intended be applied prospectively. The adoption of this pronouncement did not
  have material effect on the Company&#146;s financial statements.</FONT></P>
  </TD>
 </TR>



</TABLE>



<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif"  SIZE=2 >14</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=2><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR><BR>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="600">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>

 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
<P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>EITF Issue No. 04-8, &#147;The
  Effect of Contingently Convertible Instruments on Diluted Earnings per
  Share.&#148; The EITF reached a consensus that contingently convertible
  instruments, such as contingently convertible debt, contingently convertible
  preferred stock, and other such securities should be included in diluted
  earnings per share (if dilutive) regardless of whether the market price
  trigger has been met. The consensus became effective for reporting periods
  ending after December 15, 2004. The adoption of this pronouncement did not
  have material effect on the Company&#146;s financial statements.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
<P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>In September 2005, the
FASB ratified the Emerging Issues
Task Force&#146;s (&#147;EITF&#148;) Issue No. 05-7, &#147;Accounting for
Modifications to Conversion Options Embedded in Debt
Instruments and Related Issues,&#148; which addresses whether a
modification to a conversion option that changes its fair
value affects the recognition of interest expense for the
associated debt instrument after the modification and
whether a borrower should recognize a beneficial conversion
feature, not a debt extinguishment if a debt modification
increases the intrinsic value of the debt (for example, the
modification reduces the conversion price of the debt).
<br><br>
In September 2005, the FASB also ratified the EITF&#146;s Issue
No. 05-8, &#147;Income Tax Consequences of Issuing Convertible
Debt with a Beneficial Conversion Feature,&#148; which discusses
whether the issuance of convertible debt with a beneficial
conversion feature results in a basis difference arising
from the intrinsic value of the beneficial conversion
feature on the commitment date (which is treated recorded
in the shareholder&#146;s equity for book purposes, but as a
liability for income tax purposes), and, if so, whether
that basis difference is a temporary difference under FASB
Statement No. 109, &#147;Accounting for Income Taxes.&#148;  The
Company is currently in the process of evaluating the
effect that the adoption of this pronouncement may have on
its financial statements.</font></p>
</td>
</tr>

</TABLE>


<P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>5. INVENTORIES</FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="600">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
<P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>Inventories consists of the
  following at September 30, 2005:</FONT></P>
  </TD>
 </TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="300">
 <TR style="font-size:1px">
  <TD WIDTH="71%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="17%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT>&nbsp;</P>
  </TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Raw materials</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>2,193,842</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Finished goods</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>3,100,757</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>5,294,599</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Less reserves</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(189,492</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>5,105,107</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
</TABLE>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>6. PREPAID
EXPENSES</FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Prepaid
expenses consist of the following:</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="300">
 <TR style="font-size:1px">
  <TD WIDTH="71%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="6%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="17%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT>&nbsp;</P>
  </TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR BGCOLOR="#EAF9E8">
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Insurance</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>81,878</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Rent</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>115,932</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR BGCOLOR="#EAF9E8">
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Other</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>67,532</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>

 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>

 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>265,342</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
</TABLE>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif"  SIZE=2>15</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=2><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR><BR>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>7. PROPERTY
AND EQUIPMENT</FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="600">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Property and Equipment
  consists of the following at September 30, 2005:</FONT></P>
  </TD>
 </TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="500">
 <TR style="font-size:1px">
  <TD WIDTH="85%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="3%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="6%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT>&nbsp;</P>
  </TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Leasehold improvements</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>150,077</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Machinery and Equipment</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>825,442</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Furniture and Fixtures</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>143,911</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Computer Equipment</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>1,308,383</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>2,427,813</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Less Accumulated Depreciation</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(302,776</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>2,125,037</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
</TABLE>

<BR>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="600">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Depreciation expense for the nine months ended September 30,
2005 was $ 346,486.  As described in Note 9, the
  Company consummated a sale of its main production plant in Sainte
  Julie, Quebec for proceeds of $2,777,460 (CDN$3,400,000).
The net carrying value of the land and building amounted to $ 2,281,397 at the time of the sale.</FONT></P>
  </TD>
 </TR>
</TABLE>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>8. LONG TERM
DEBT</FONT></P>

<TABLE align=center BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="500">
 <TR style="font-size:1px">
  <TD WIDTH="85%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="3%" VALIGN=BOTTOM>
  <P ALIGN=CENTER>&nbsp;</P>
  </TD>
  <TD WIDTH="10%" COLSPAN="2" VALIGN=BOTTOM>
  <P ALIGN=CENTER>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P ALIGN=CENTER>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1><B>Obligation</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1><B>Balance</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Equipment
financing, with interest ranging
  from 6.52% and 10%, payable monthly, maturing at various dates until April
  2009</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>70,311</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Term loans,
payable in monthly instalments
  of $1,600(CDN$1,921) without interest, maturing at various dates through
  August 2008</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>28,349</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"
size=1>&nbsp;</font></p>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>98,660</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Less current portion</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(41,485</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"
size=1>&nbsp;</font></p>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR BGCOLOR="#EAF9E8">
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Total long term debt</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>57,175</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
</TABLE>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>9. SALE
LEASEBACK OF PRODUCTION PLANT</FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="600">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
<P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>On August
  15, 2005, Teckn-O-Laser Global Company, a wholly-owned subsidiary of the
  Company, sold its land and building for a gross purchase price of
  approximately $2,900,000 (CDN$3,400,000). The same property was leased back
  to Teckn-O-Laser, Inc., a wholly-owned subsidiary of the Company, for a
  period of approximately ten years, effective September 30, 2005. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
<P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>The triple
  net lease is being accounted for as an operating lease, which calls for equal
  monthly installments. The base rent is $297,885 (CDN$345,775) per annum for
  the first five years, and $327,673 (CDN$380,352) per annum for the next five
  years of the term of the lease. The lease provides for two renewal options to
  extend the term of the lease each by a period of five years.</FONT></P>
  </TD>
 </TR>
</TABLE>


<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif"  SIZE=2>16</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=2><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR><BR>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="600">
 <TR style="font-size:1px">
  <TD WIDTH="10%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
<P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>Future
  minimum lease payment for the year ending December 31 are as follows:</FONT></P>
  </TD>
 </TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="300">
 <TR style="font-size:1px">
  <TD WIDTH="73%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="15%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT>&nbsp;</P>
  </TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>October 1 to December 31, 2005</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>74,472</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>For years ending 2006</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>297,885</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>2007</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>297,885</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>2008</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>297,885</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>2009</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>297,885</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>thereafter</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>1,861,780</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Total
minimum payments required</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>3,127,792</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
</TABLE>

<BR>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="600">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
<P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>There was no gain recognized
  in the financial statements since the adjustment related to the building has
  been reflected in the Goodwill recognized on the acquisition of the
  Teckn-O-Laser Group in January, 2005. </FONT></P>
  </TD>
 </TR>
</TABLE>

<P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>10. BANK LINE
OF CREDIT AND TERM LOANS DUE ON DEMAND</FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="600">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2><U>Bank Line of Credit</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
<P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>That Company has a credit
  facility with a Canadian bank that provides for aggregate borrowings of up to
  approximately $3.0 million (CDN$3.5 million), including an exchange line of
  credit for an amount of US$250,000. The loan is secured by a first ranking
  lien for an amount of approximately $4.3 million (CDN$5 million) on all
  accounts receivable and inventories. Interest is at the Bank&#146;s Canadian prime
  rate plus 1% (5.25% as at September 30, 2005) and is renewable annually.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
<P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>The Company is required to
  comply with certain financial ratios under the terms of the bank loan. As of
  September 30, 2005, and subsequent thereto, the Company is not in compliance
  with one of these financial ratios. The Company anticipates being able to cure the
  aforementioned default, however; the Company cannot provide any assurance
  that the lender will waive the violation. The lender has requested that the
  Company seek alternative methods of financing in order to replace this
  operating facility. The lender currently has the ability to demand immediate
  repayment of the loan which demand would have a material adverse affect on
  the Company&#146;s financial position.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2><U>Term Loans</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
<P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>The Company has the following
  outstanding term loans, under which it is required to comply with certain
  financial ratios. As of September 30, 2005, and subsequent thereto, the
  Company is not in compliance with these financial ratios. For this reason, a
  12.5% penalty is charged by the bank. The contractual terms of the loans,
  notwithstanding the Company&#146;s event of default are as follows:</FONT></P>
  </TD>
 </TR>
</TABLE>

<BR>

<TABLE align=center BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="500">
 <TR style="font-size:1px">
  <TD WIDTH="85%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="3%" VALIGN=BOTTOM>
  <P ALIGN=CENTER>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P ALIGN=CENTER>&nbsp;</P>
  </TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=CENTER>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P ALIGN=CENTER>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1><B>Obligation</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1><B>Balance</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Term loan,
Secured by automotive equipment,
  6.65%, payable in monthly instalments of 1,250(CDN$1,500), maturing in
  November 2006 (1)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>95,607</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Term loan,
secured by a lien on all present
  and future furniture, fixtures and equipment, Canadian bank prime rate plus
  1% (5.25% as at September 30, 2005), payable in monthly instalments of
  $17,360(CDN$20,833), maturing January 2007 (1)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>287,109</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"
size=1>&nbsp;</font></p>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>382,716</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
</TABLE>


<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif"  SIZE=2>17</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=2><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR><BR>




<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>The Company is continuing
  making the instalment payments in accordance with the terms of these obligations.
The lender has not, as pf this time, exercised its right to
  demand immediate payment. However, the lender under these obligations has not provided
  the Company with a written waiver of the violation and therefore has the ability
  to exercise its right to demand payment at anytime. The Company
  cannot provide any assurance that the lender will not demand immediate payment. Accordingly, the Company
  has classified the outstanding balance of these loans as a current liability
  in the accompanying balance sheet.</FONT></P>
  </TD>
 </TR>
</TABLE>

<P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>11. NOTES
PAYABLE</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2><U>Westminster Capital Inc.
  Convertible Promissory Note</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>On January 7, 2005 the Company
  issued a $1,000,000 convertible promissory note (the &#147;Note&#148;) paying interest
  at the rate of 3.9% per annum to Westminster Capital Inc. (&#147;Westminster&#148;) in
  consideration of $1,000,000. Interest and principal in the Note are due
  January 1, 2008 subject to prepayment or conversion commencing on or after
  July 1, 2005. Interest and principal due on the Note are convertible into
  shares of common stock at a price of $.50 per share. For each share acquired
  upon conversion, the holder will also receive one common stock purchase
  warrant to purchase one share of common stock at a price of $1.50 per share
  at any time prior to July 1, 2008. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>On September 30, 2005 the
  $1,000,000 note plus $28,529 of accrued interest were converted into
  2,057,058 common shares and 2,057,058 warrants. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2><U>Barrington Bank International
  Limited</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>Effective January 26, 2005 the
  Company entered into a 5 year $1,639,320 (approximately Cdn$2,000,000)
  convertible loan agreement (the &#147;Loan Agreement&#148;) with Barrington Bank
  International Limited (&#147;Barrington Bank&#148;) with interest payable quarterly at
  12% per annum during the first 12 months and 20% per annum thereafter. This
  obligation is subordinated to the Bank of Line of Credit and is secured by
  substantially all the Company&#146;s assets.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>The Loan Agreement provides
  for a prepayment penalty which specifies that in the event the Company
  prepays the obligation prior to its one year anniversary date, it will be
  obligated to pay a fee equal to the amount of additional interest that it
  would have paid had the obligation remained outstanding through the 1 year
  anniversary date. Commencing on the 6 month anniversary of the loan,
  Barrington Bank has the right to convert the remaining principal balance into
  shares of the Company&#146;s common stock at a conversion price of US$1.00 per
  share.  The Company also issued
  200,000 shares of common stock to the Lender and has agreed to register these
  shares within the next registration statement filed by the Company. The
  Company accounted for the issuance of the shares as a debt discount, which is
  being amortized over the term of the loan.</FONT></P>
  </TD>
 </TR>
</TABLE>



<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>18</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=2><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR><BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2><U>Loewen, Ondaatje, McCutcheon
  Limited</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>Effective June 22, 2005 the
  Company entered into an agreement with Loewen, Ondaatje, McCutcheon Limited
  (&#147;LOM&#148;), an investment banking firm. Pursuant to the Agreement, LOM loaned
  the Company $1,001,000 on June 22, 2005 for the specific purpose of allowing
  the Company to purchase issued and outstanding shares of Turbon AG. The term
  of the loan is for a one year period that commenced on June 22, 2005.
  Interest accrued on the outstanding amount of the loan at the rate of 10%
  compounded semi-annually, and is payable quarterly commencing September 1,
  2005. As partial consideration for entering into the Agreement, the Company
  issued 100,000 common stock purchase warrants to LOM, each exercisable for
  the purchase of one share of the Company&#146;s common stock at a price of $1.50
  per share during the 30 month period following issuance. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>On July 21, 2005 pursuant to
  the Agency Agreement with LOM the Company offered and sold through LOM, as
  placement agent, 1,707,000 subscription receipts at a price of $.75 per
  Subscription Receipt or $1,280,250 in the aggregate. Each Subscription
  Receipt will be automatically exercised, without payment of any additional
  consideration, at the Automatic Exercise Date into, subject to adjustment, a
  unit consisting of one share of the Company&#146;s common stock and one common
  stock purchase warrant. Each Unit Warrant entitles the holder to purchase an
  additional share of the Company&#146;s common stock at a price of $1.25 per share
  during the 30 month period that commenced on July 21, 2005. The
  offer of the Subscription Receipts was made subject to satisfaction of
  certain conditions (the &#147;Qualification Conditions&#148;).  Failure to meet the Qualification
  Conditions by the Qualification Date, as defined below, results in each
  Subscription Receipt being exercised into 1.5 Units.  The Qualification Date is defined as the
  earlier of (i) December 31, 2005; or (ii) the date ten business days
  following the date by which both (a) a receipt (the &#147;Receipt&#148;) for the final
  prospectus of ours that qualifies the Units and Agent&#146;s Warrants, as such term
  is defined below, for issuance in Canada has been obtained by us from the
  securities commissions or securities regulatory authorities in those Canadian
  provinces where purchasers of the Subscription Receipts reside and (b) a
  registration statement under the Securities Act of 1933, as amended, (the
  Registration Statement&#148;) has become effective for registering the resale of
  the Unit Shares, Unit Warrants (including those underlying the Agent&#146;s
  Warrants, as defined below), and the Warrant Shares issuable upon exercise of
  the Unit Warrants.  The Qualification
  Conditions are defined in the Agency Agreement as (i) our having obtained a
  Receipt for the Prospectus, and the Registration Statement having become
  effective for registering the resale of the Unit Shares, Unit Warrants
  (including those underlying the Agent&#146;s Warrants, as defined below) and the
  Warrant Shares issuable upon exercise of the Unit Warrants; and (ii) the
  shares of our common stock having been listed for trading on the Toronto
  Stock Exchange.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>Pursuant to the Agency
  Agreement, the Company paid the Agent a commission of $89,618 which is equal
  to 7% of the gross aggregate offering proceeds and issued to the Agent
  119,490 warrants which is equal to 7% of the number of Subscription Receipts
  sold. Each warrant provides
  for the purchase of a Unit at a price of $.75 per Unit during the 30 month
  period that commenced July 21, 2005. If the Qualification
  Conditions have not been satisfied by the Automatic Exercise Date, as defined
  below, then each Broker Warrant will be automatically exercised at the
  Automatic Exercise Date into 1.5 Agent&#146;s Warrants.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>This loan was repaid in full,
  including interest of $7,679, from the proceeds of the equity securities sold
  on July 21, 2005 pursuant to the Agency Agreement between LOM and the
  Company.</FONT></P>
  </TD>
 </TR>
</TABLE>



<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif"  SIZE=2>19</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=2><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR><BR>

<P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>12. REDEEMABLE
PREFERRED STOCK OF SUBSIDIARY</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>As described in Note 14, the
  Company issued 1,932,000 shares of preferred stock in a wholly owned
  subsidiary as partial purchase consideration to the sellers of the
  Tecknolaser Group. The aforementioned shares are mandatorily redeemable at
  CDN$1.00 per share (US$0.83) at certain times through March 31, 2006 and
  contains certain provisions that would enable the holders to obtain up to 2.5
  Series II Exchangeable Shares in the event of the Company&#146;s failure to make
  the cash payment. Each Series II Exchangeable shares would be convertible
  into the Company&#146;s common stock at the option of the holder, which could
  result in a substantial dilution of stockholders equity in the event of a
  default in addition to one share of the Company Series A Special Preferred
  Voting Stock.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>As described in Note 20 these shares were
 cancelled in connection with an
amendment to the Company&#146;s commitment (under the Share Purchase Agreement) to make
certain payments of contingent consideration to the sellers of the Tecknolaser Group.</FONT></P>
  </TD>
 </TR>
</TABLE>

<P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>13.
COMMITMENTS AND CONTINGENCIES</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2><U>Litigation with Former
  Officers</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>The Company is involved in
  ongoing litigation as both a plaintiff and as a defendant against three
  former officers of Reink that arose in connection with the involuntary
  bankruptcy and loss of control of that former business unit. In this action
  the Company is seeking damages and other relief in the amount of $1,000,000.
  The prior officers filed a counter-suit against the Company for back wages and
  other costs. The Company considers the former officers claims to be without
  merit and is vigorously contesting their claim, however; the Company is
  presently unable to determine the outcome or possible range of loss, if any,
  with respect to this matter at the current time.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2><U>Other Litigation</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>On June 25, 2004 the Company
  entered into a non-binding letter agreement with Dancap Private Equity Inc.
  (&#147;Dancap&#148;) respecting the proposed sale of $2,000,000 of a 5 year, 12%
  secured subordinated debenture to Dancap. The proposed transaction involved
  the sale to Dancap of 800,000 shares of redeemable, convertible preferred
  stock for nominal consideration. The agreement was conditioned on the
  execution of a formal agreement between the parties and several other
  conditions. Dancap has instituted an action against the Company in Ontario
  Superior Court related to a break-up fee which was within the agreement. As
  described in Note 16, this claim was settled on November 10, 2005.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2><U>Bankruptcy of Reink USA and
  Liabilities of Discontinued Operations</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>In January, 2003 the three
  largest creditors (the &#147;Petitioners&#148;) of Reink USA (&#147;Reink&#148;) filed a petition
  to force Reink into Chapter 7 under the US Federal Bankruptcy Act. The
  Company believes that certain of the Petitioners and officers of this former
  business unit formed a new business that became a direct competitor of the
  Company. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>In March 2003, Reink filed a
  motion to convert its case to a voluntary Chapter 11, which motion was
  accepted by the District of New Jersey, Federal Bankruptcy Court. However, as
  the case was subsequently converted from Chapter 11 &#147;Reorganization&#148; into
  Chapter 7 &#147;Liquidation&#148; on July 10, 2003, and a Bankruptcy Trustee was
  appointed to administer the estate. As a result, the Company lost control of
  Reink.</FONT></P>
  </TD>
 </TR>
</TABLE>



<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif"  SIZE=2>20</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=2><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR><BR>

<BR>


<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>Reink&#146;s remaining liabilities,
  which consist of $2,125,341 of accounts payable and accrued expenses, are
  presented in the accompanying balance sheet as liabilities of discontinued
  operations until such time that the bankruptcy is adjudicated. The Company is
  unaware of any changes in the status of the Bankruptcy proceedings.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2><U>Employment Agreements</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>Concurrent with the
  acquisition of the Tecknolaser Group, the Company&#146;s President and Chief Executive
  Officer resigned from his position. The vacancy in this position was
  immediately filled by Yvon Leveille, a former shareholder of the acquiree.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>The Company entered into
  renewable 3 year employment agreements with each of Yvon Leveille and Alain Lachambre.
  The initial base annual salaries payable to Messrs.
  Leveille and Lachambre under their employment agreements are CDN$175,000
  (approximately US$146,000) and CDN$166,000 (approximately US$139,000),
  respectively. The employment agreements further provide for the payment of
  performance based bonuses of up to 100% of salary at the discretion of the
  compensation committee of the board of directors.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2><U>Consulting Agreements</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>The Company entered into a
  series of consulting agreements with certain related and unrelated parties
  that are more fully described in Note 15.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2><U>Strategic Supply Agreement</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>Effective June 22, 2005, the
  Company entered into a Strategic Supply Agreement with Turbon AG, (&#147;Turbon&#148;)
  a leading global imaging supply company specializing in the remanufacture of
  laser cartridges. Pursuant to the Agreement, Turbon will become a strategic
  supplier of remanufactured laser toner cartridges for the Company at prices
  that will be competitive in the market place for such products and that will
  be lower than prices offered by Turbon to other third party customers for
  similar products under similar conditions. In consideration thereof, the
  Company will give preferred vendor status to Turbon and will give preference
  to ordering products from Turbon over competitive products of third parties
  as long as Turbon&#146;s product quality meets our specifications.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>As described in Note 16, the
  Company made a tender offer to acquire all of the outstanding capital stock
  of Turbon in a proposed purchase business combination, which is still subject
  to completion.</FONT></P>
  </TD>
 </TR>
</TABLE>

<P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>14.
STOCKHOLDERS&#146; EQUITY</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2><U>Private Placement of Equity
  Securities</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>In January 2005 the Company
  sold an aggregate of 2,530,000 units to 11 accredited investors (as defined
  under Securities Act Rule 144) at $.50 per unit or net proceeds of $1,121,000
  ($1,265,000 less cash fees charged as reduction of the offering proceeds).
  Each unit consists of one share of common stock (the &#147;Unit Shares&#148;) and one
  common stock purchase warrant. Each warrant entitles the holder to purchase
  one share of common stock at a price of $1.50 per share at any time during
  the three year period commencing on January 31, 2005.</FONT></P>
  </TD>
 </TR>
</TABLE>



<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>21</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=2><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR><BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>The Company issued 68,000
  shares of its common stock and 68,000 common stock purchase warrants. Each
  warrant entitles the holder to purchase one share of common stock at a price
  of $1.50 per share at any time during the three year period commencing on
  January 31, 2005. In addition, the Company paid $44,000 in cash to DGM Bank
  &amp; Trust Inc., the placement agent, as fees for representing the Company
  in the aforementioned financing transaction.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2><U>Issuance of Common Stock in
  Connection with Debt Financing</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>As described in Note 10, the
  Company issued 200,000 shares of common stock with registration rights to
  Barrington Bank in accordance with the Loan Agreement.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2><U>Issuance of Common Stock as a
  Fee to Related Party Transaction Advisor</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>In March 2005, the Company
  issued an aggregate of 698,500 shares of common stock to Manchester
  Consolidated Corp. (&#147;Manchester&#148;) and its designees as part of the financing
  fee payable to Manchester for its role in arranging the acquisition of the
  Tecknolaser Group.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2><U>Issuance of Unit Shares in
  Settlement of Fees to Placement Agent</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>In March 2005, the Company
  issued 50,000 shares of common stock and 150,000 common stock purchase
  warrants to DGM Bank and Trust Inc. (&#147;DGM&#148;) in satisfaction and settlement of
  all sums due to DGM under the June 22, 2004 Agency Agreement with DGM with
  respect to equity sales made by the Company during the term of the Agency
  Agreement that were not generated by or through DGM.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2><U>Issuance of Shares Committed
  in 2004</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>In March 2005, the Company
  issued an aggregate of 500,000 shares of its common stock pursuant to a
  commitment to issue such shares to certain consultants who rendered services
  to the Company in 2004. The Company also issued 205,000 Units Shares to
  certain investors who funded their purchases during 2004. The Company
  accounted for the issuance of these shares as a reduction of Common Stock to
  be Issued.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2><U>Common Stock Purchase Warrants</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>The Company issued all
  warrants under the Unit Shares with registration rights agreements which
  stipulate that the Company will file a registration statement to register the
  underlying shares. The Company is not precluded from delivering restricted
  stock to the holders of these warrants in the event such holder elect to
  exercise their warrants prior to the Company causing a registration statement
  to be declared effective under the Securities Act. In addition, there are no
  provision under which the Company would be required to net cash settle any of
  the aforementioned instruments. Accordingly, the Company has classified the
  warrants as equity securities in accordance with EITF 00-19.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2><U>Adjustment to Previously
  Issued Unit Shares</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>The Company, following the
  sale of Unit Shares that it consummated in January 2005, agreed to issue an
  additional 852,500 units to certain investors, or their designees, at no
  additional cost, to bring their unit cost down to $.50 per unit.</FONT></P>
  </TD>
 </TR>
</TABLE>



<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>22</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=2><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR><BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>The Company has agreed to
  register for resale on behalf of the subscribers in this offering and DGM,
  the Unit Shares and Warrant Shares, including the additional Unit Shares and
  the Warrant Shares underlying the additional warrants issued in March 2005,
  and the Work Fee Shares.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2><U>Issuance of Series A Preferred
  Special Voting Stock</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>As described in Note 14, the
  Company issued 6,500,000 shares of Series A Special Voting Preferred Stock as
  partial purchase consideration to the former shareholders of the Tecknolaser
  Group. The Series A Special Voting Preferred Stock is non-participating and
  the holder&#146;s rights allow them only to vote.
  Each Series A Special Preferred Voting share is cancellable on a
  one-for-one basis upon the exercise of certain cinversion privledges embedded
  in the Series I Exchangeable Shares described below.</FONT></P>
  </TD>
 </TR>

 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>

 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2><U>Issuance of Exchangeable
  Shares</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>As described in Note 14, the
  Company issued 6,500,000 Series I Exchangeable Shares of 3091503 Nova Scotia
  Company, an indirect subsidiary, as partial purchase consideration to the
  former shareholders of the Tecknolaser Group. Each Series I Exchangeable
  Share is convertible into one share of the Company&#146;s common stock at the
  option of the holder at any time. Upon issuance of any common shares of the
  Company, the corresponding number of Series A Preferred Special Voting will
  be cancelled.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2><U>Non-Employee Stock Based
  Compensation</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>In February 2005, the Company
  issued 100,000 stock options with an exercise price of $1.55 per share to
  Agora Investor Relations Corp. (&#147;Agora&#148;) pursuant to its February 1, 2005
  Investor Relations Agreement with Agora. The options are exercisable, upon
  vesting, during the two year period commencing February 1, 2006. The Company
  is recording a charge of $111,993 equally over the 4 quarters ($27,998 each
  quarter) to amortize the cost of the options under the contract.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2><U>Grants of Stock Options to
  Employees and Directors</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>Pursuant to the Share Purchase
  Agreement described in Note 14, the Company agreed to issue an aggregate of
  300,000 non-statutory stock options under its 2000 Stock Option Plan to
  certain employees of the Tecknolaser Group. The options granted to each
  employee have a maximum term of 10 years and vest in equal amounts, each
  equal to 1/3 of the total number of options granted to the employee, on each
  of the first, second and third anniversaries of the date of grant.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>The Company granted 244,500
  and 110,000 stock options, exercisable at $1.57 and $1.06 per share,
  respectively (the quoted market prices) during the quarter ended March 31,
  2005. Such grants include 244,500 options to certain employees of Tecknolaser
  Group, and 110,000 to the three independent members of the board of
  directors. The options vest over a period of three years.</FONT></P>
  </TD>
 </TR>
</TABLE>



<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>23</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=2><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR><BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2><U>Equity Purchase Commitment</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>On January 6, 2005 the Company
  obtained an equity purchase commitment from Trisan Equitable Corporation
  (&#147;Trisan&#148;) pursuant to which Trisan has committed to purchase an aggregate of
  $1,600,000 of the Company&#146;s common shares valued at $.50 per share in stated
  amounts at stated times. Pursuant thereto, Trisan had agreed to purchase
  1,250,000 shares for $625,000 on September 1, 2005; 740,000 shares for
  $370,000 on September 30, 2005; 740,000 shares for $370,000 on December 31,
  2005; and 470,000 shares for $235,000 on March 31, 2006. On each share
  purchase date, for each share purchased by Trisan, the Company has also
  agreed to issue one common stock purchase warrant, each to purchase one share
  of the Company&#146;s common stock at $1.50 per share at any time during the 3
  year period commencing on issuance.
  The warrants will contain anti-dilution and cashless exercise
  provisions. The Company has agreed to register the shares to be purchased by
  Trisan under the commitment on behalf of Trisan.  </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>As described in Note 20,
  effective November 4, 2005 the equity purchase commitment was cancelled with
  a full release from both the Company and Trisan related to any past or
  ongoing future commitments. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>15. RESTRUCTURING CHARGE</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>As a result of the changes
  within the existing business of the Company, and its main operating
  subsidiary, certain changes have been undertaken due to the outsourcing of
  production to the Turbon group.  As a
  result the Company has eliminated certain positions and recorded a charge for one-time termination benefits payable to such employees in the amount of $52,505.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>16. ACQUISITION OF THE
  TECKNOLASER GROUP</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2><U>Description of Transaction</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>Effective January 2, 2005, the
  Company entered into a Share Purchase Agreement (the &#147;Share Purchase
  Agreement&#148;) among Adsero Corp, YAC Corp. (&#147;YAC&#148;), Teckn-O-Laser Company (&#147;TOL
  Canada&#148;), 3091503 Nova Scotia Company (&#147;Acquiror&#148;), and Teckn-O-Laser Global
  Company (&#147;Acquiree&#148;), 3091732 Nova Scotia Company (&#147;Callco&#148;), and the
  shareholders of Acquiree (the &#147;Acquiree Shareholders&#148;). TOL Canada is a
  wholly owned subsidiary of Acquiree. YAC is a wholly owned subsidiary of the
  Company. Callco is a wholly owned subsidiary of YAC. Acquiror is a wholly
  owned subsidiary of Callco.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>Pursuant to the Share Purchase
  Agreement, The Company acquired through its subsidiary Acquiror, all of the
  issued and outstanding capital stock of Acquiree, effectively the Tecknolaser
  Group. The Tecknolaaser Group manufacturers and distributes imaging products,
  including remanufactured toner cartridges and remanufactured inkjet
  cartridges.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>The Company acquired the
  Tecknolaser Group to establish a platform that would enable it to penetrate
  the imaging consumables market and to position itself to acquire other high
  potential businesses in the same market segment. The accompanying statement
  of operations for the period ended September 30, 2005 includes the results of
  the Technolaser Group.</FONT></P>
  </TD>
 </TR>
</TABLE>



<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif"  SIZE=2>24</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=2><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR><BR>




<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>The aggregate purchase price
  that the Company paid for its acquisition of theTecknolaser Group amounted to
  $8,374,652, including cash of $1,894,598, 6,500,000 Acquiror Series I
  Exchangeable Shares in the Acquiror Subsidiary with a fair value of $3,250,000,
  1,932,000 shares of preferred stock in the Acquiror Subsidiary which are
  mandatorily redeemable for $1,570,732 (Note 11) and transaction fees
  amounting to $1,659,322.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
    <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>The cash component of the
  purchase consideration includes a $1,265,656 (contractual amount of
  CDN$1,500,000) advance that the Company made to the Acquiree shareholders for
  them to acquire certain shares of stock from a third party so that at
  closing, the Acquiree Shareholders would own all the capital stock of
  Acquiree. The advance, which was not required to be repaid upon closing,
  became part of the purchase consideration that the Company paid to the
  Acquiree shareholders.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
    <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>Pursuant to a Lock-Up
  Agreement dated as of January 2, 2005, 6,000,000 of the Series I Exchangeable
  Shares are subject to provisions that restrict the subsequent sale, transfer,
  or disposal of a corresponding number of the Company&#146;s common shares that
  will be issued to the holders of the Acquiror Series I Exchangeable Shares
  upon exchange thereof.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
    <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>In addition, the Company
  issued 6,500,000 shares of its newly created Series A Preferred Special
  Voting Stock (the &#147;Series A Preferred Stock&#148;) for each Acquiror Series I
  Exchangeable Share owned. Shares of the Company&#146;s Series A Preferred Stock
  have the right to vote on all matters submitted to the vote of the Company&#146;s
  common shareholders on the basis of one vote for each share held.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
    <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>Transaction fees include an
  aggregate of $640,800 in cash and common stock paid to Manchester
  Consolidated Corp., a related party pursuant to a consulting services
  agreement. The cash portion of the fee amounted to $291,550 and the stock
  portion includes 698,500 shares with an aggregate fair value amounting to
  $349,250.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
    <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>A summary of the allocation of
  the purchase price to the fair value of assets acquired and liabilities
  assumed, in accordance with SFAS 141 &#147;Business Combinations&#148;, is as follows:</FONT></P>
  </TD>
 </TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="80%">
 <TR style="font-size:1px">
  <TD WIDTH="14%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="67%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="11%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT>&nbsp;</P>
  </TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Cash</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>38,348</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Other current assets</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>8,194,656</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Property, plant and equipment</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>4,824,329</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Other assets</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>234,790</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Fair value of assets acquired</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>13,292,123</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Accounts payable and accrued
  expenses</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>6,189,468</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Secured obligations and long
  term debt</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>6,174,877</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Fair value of liabilities
  assumed</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>12,364,345</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Fair value of identifiable net
  tangible assets acquired</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>927,777</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Trademarks (estimated life of
  15 years, straight line basis)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>500,000</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Goodwill</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>6,946,875</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Total Purchase Price</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>8,374,652</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
</TABLE>


<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif"  SIZE=2>25</FONT></P>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=2><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR><BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>The allocation of the purchase
  price is preliminary and was prepared by management using estimates and
  assumptions that management believes are reasonable in the circumstances. The
  Company intends to commission a formal valuation study, which study could
  result in changes to the allocation of the purchase price and the
  determination of the fair value of the assets acquired and liabilities
  assumed and the amount of any excess that could be assigned to amortizable
  intangibles. During the quarter ended September 30, 2005, the Company modified its allocation of the purchase price to increase
 the fair market value of the plant and reduce goodwill be approximately $196,000. The modification was made to more appropriately reflect
the fair value of the building based on information that became available to the Company as a result of the sale transaction
described in Note 9.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>The Share Purchase Agreement
  also provides for the Company to pay the following additional consideration
  (the &#147;Contingent Consideration&#148;) to the Acquiree shareholder at future dates,
  contingent upon the attainment of certain performance targets described
  below.</FONT></P>
  </TD>
 </TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="80%">
 <TR style="font-size:1px">
  <TD WIDTH="17%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="33%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="40%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1><B>Date</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1><B>Amount</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP >
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM >
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM >
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM COLSPAN=2>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM >
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR BGCOLOR="#EAF9E8">
  <TD  VALIGN=TOP BGCOLOR=WHITE>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>March 26, 2006</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM NOWRAP>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>2,182,000
  (approximately US $1,817,606)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR >
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>March 31, 2007</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>1,000,000
  (approximately US$833,333)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR BGCOLOR="#EAF9E8">
  <TD  VALIGN=TOP  BGCOLOR=WHITE>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>March 31, 2008</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>1,000,000
  (approximately US$833,333)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></P>
  </TD>
 </TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>Notwithstanding the forgoing,
  the 2006 Payment is not due and payable in the event that Acquiree&#146;s Earnings
  Before Interest Taxes Depreciation and Amortization (&#147;EBITDA&#148;) for the year
  ending December 31, 2005, is less than CDN$1,000,000. The 2007 Payment is not
  due and payable in the event that Acquiree&#146;s EBITDA for the year ending
  December 31, 2006 is less than CDN$1,500,000. The 2008 Payment is not due and
  payable in the event that Acquiree&#146;s EBITDA for the year ending December 31,
  2007 is less than CDN$2,000,000.  </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT Face="Times New Roman, Times, Serif" SIZE=2>The following table provides
  unaudited pro-forma results of operations and loss per share data for the 3
  and 9 months ended September 30, 2004 as if the Tecknolaser Group had been
  acquired on January 1, 2004.</FONT></P>
  </TD>
 </TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="10%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="46%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="4%" VALIGN=BOTTOM>
  <P ALIGN=CENTER>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P ALIGN=CENTER>&nbsp;</P>
  </TD>
  <TD WIDTH="15%" VALIGN=BOTTOM>
  <P ALIGN=CENTER>&nbsp;</P>
  </TD>
  <TD WIDTH="4%" VALIGN=BOTTOM>
  <P ALIGN=CENTER>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P ALIGN=CENTER>&nbsp;</P>
  </TD>
  <TD WIDTH="14%" VALIGN=BOTTOM>
  <P ALIGN=CENTER>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P ALIGN=CENTER>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM COLSPAN=2>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1><B>For the Three Months<BR> Ended<BR> September
30, 2004</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM COLSPAN=2>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1><B>For the Nine Months <BR>
  Ended <BR>
  September 30, 2004</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM COLSPAN=2>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM COLSPAN=2>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Revenues</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>7,229,237</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>22,069,383</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Cost of good sold</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>5,601,665</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>17,297,314</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Gross profit</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>1,627,572</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>4,772,069</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Operating expenses</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Selling
General &amp; Administration</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>1,789,804</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>4,824,152</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Conversion
of debt expense</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>627,340</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"
SIZE=2>Depreciation and amortization</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>161,372</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>555,146</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Total
operating expenses</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>1,951,176</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>6,006,638</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Loss from
operations</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(323,604</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(1,234,569</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"    SIZE=2>Interest
expense</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>163,564</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>533,544</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Loss before income taxes</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(487,168</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(1,768,113</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Income taxes (benefit)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(42,074</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(135,607</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Net Loss</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(445,094</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(1,632,506</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#EAF9E8">
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Net Loss per share basic</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(0.04</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(0.19</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
  </TD>
 </TR>
</TABLE>



<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif"  SIZE=2>26</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=2><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR><BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px" >
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2><U>Share Voting, Support and
  Exchange Agreements</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
    <P ALIGN=JUSTIFY><FONT SIZE=2><U>Series I Exchangeable Share
  Voting, Support and Exchange Agreement</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
    <P ALIGN=JUSTIFY><FONT SIZE=2>Subject to the terms of a
  Series I Exchangeable Share Voting, Support and Exchange Agreement, dated as
  of January 2, 2005 (the &#147;Series I Support Agreement&#148;), among us, YAC, Callco,
  Acquiror and the Acquiree Shareholders holding Series I Exchangeable Shares
  of Acquiror (the &#147;Holders&#148;), the holders of Acquiror Series I Exchangeable
  Shares have the option of converting any Post Closing Payments due to them
  into Acquiror Series I Exchangeable Shares at a conversion rate calculated by
  dividing the dollar amount of any converted payments by an amount
  representing the greater of:</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
    <P ALIGN=JUSTIFY><FONT SIZE=2>US$1.00 converted to CDN
  dollars; or 80% of the average closing price of the Company&#146;s common stock
  converted to CDN dollars for the twenty trading days immediately preceding
  the date on which an Acquiree Shareholder provides a notice of conversion to
  Acquiree.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>All Holders of Acquiror Series
  I Exchangeable Shares were issued one share of the Company&#146;s newly created
  Series A Preferred Special Voting Stock (the &#147;Series A Preferred Stock&#148;) for
  each Acquiror Series I Exchangeable Share owned. Shares of the Company&#146;s
  Series A Preferred Stock have the right to vote on all matters submitted to
  the vote of the Company&#146;s common shareholders on the basis of one vote for
  each share held. The Series A Preferred Stock is non-transferable, other than
  upon sale or exchange on disposition of the corresponding Acquiror Series I
  Exchangeable Shares, which triggers a requirement for the holder to deliver a
  like number of shares of Series A Preferred Stock to us for cancellation. The
  Series I Support Agreement also contains provisions that grant Callco the
  right, exercisable upon the occurrence of certain events, including the
  proposed dissolution or liquidation of Acquiror or a prior retraction request
  by the Holder, to require the Holders to sell their Series I Exchangeable
  Shares to Callco. Similarly, the Series I Support Agreement grants the Holder
  the right to require Callco to purchase from the Holder all or any part of
  the holder&#146;s Acquiror Series I Exchangeable Shares upon certain events
  including the institution by Acquiror of any proceeding to be adjudicated a
  bankrupt or insolvent or to be dissolved or wound up. The Series I Support
  Agreement further provides for automatic exchange upon the sale of all or
  substantially all of the Company&#146;s assets, or upon the Company&#146;s liquidation
  or dissolution. The Series I Support Agreement further provides that so long
  as any Acquiror Series I Exchangeable Shares are issued and outstanding, that
  the Company and its subsidiaries cannot declare or pay a dividend on the
  Company&#146;s respective common stocks unless an equivalent dividends is declared
  or paid, as the case may be, on the Series I Exchangeable Shares.</FONT></P>
  </TD>
 </TR>
</TABLE>


<P ALIGN=CENTER><FONT SIZE=2>27</FONT></P>


<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=2><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR><BR>


<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px" >
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2><U>Preferred Share Purchase and
  Support Agreement</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>Subject to the terms of a
  Preferred Share Purchase and Support Agreement, dated as of January 2, 2005
  (the &#147;Preferred Share Support Agreement&#148;), among us, YAC, Callco, Acquiror
  and the Acquiree Shareholders holding Acquiror Preferred Shares, and subject
  to Callco&#146;s right (the &#147;Retraction Call Right&#148;), exercisable upon the
  occurrence of certain events to require the Holders of Acquiror Preferred
  Shares to sell such shares to Callco, the Acquiree Shareholders, as Holders
  of Acquiror Preferred Shares, have the rights set forth in Schedule A of the
  Preferred Share Support Agreement. Dividends are not payable on the Acquiror
  Preferred Shares but as long as they are outstanding, Acquiror cannot,
  without the approval of the holders of the Acquiror Preferred Shares, pay any
  dividends on Acquiror&#146;s common shares or redeem or purchase or make any
  capital distributions in respect of any Acquiror common shares. Holders of
  Acquiror Preferred Shares are entitled to a specially designated right,
  subject to the exercise of the Retraction Call Right by Callco and compliance
  with other terms of the Preferred Share Support Agreement, to require
  Acquiror to redeem their Acquiror Preferred Shares at a price of CDN$1.00 per
  share at specified times. The times at which holders of Acquiror Preferred
  Shares may make such requests are as follows:</FONT></P>
  </TD>
 </TR>
</TABLE>

<BR>



<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="60%">
 <TR style="font-size:1px" >
  <TD WIDTH="74%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="11%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT>&nbsp;</P>
  </TD>
  <TD WIDTH="4%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM NOWRAP>
  <P ALIGN=CENTER><FONT SIZE=1><B>Number of Acquiror </B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Dates</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1><B>Preferred Shares </B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR BGCOLOR="#EAF9E8">
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>September 1, 2005</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>750,000</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>September 30, 2005</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>443,250</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR BGCOLOR="#EAF9E8">
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>December 31, 2005</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>443,250</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>March 31, 2006</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>295,500</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
</TABLE>



<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px" >
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>The September 1, and September
  30, 2005 obligations for redemption were delayed at the request of the
  Company. On November 4, 2005 all of the Acquiror Preferred Shares along with
  all future payments under the earn-out obligation were cancelled in exchange for $600,000
  cash payment on or before November 24, 2005, 3,272,397 common shares and
  $2,290,678 in payments to be paid equally over 6 quarters commencing March,
  2005.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2><U>Series II Exchangeable Share
  Voting, Support and Exchange Agreement</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>Subject to the terms of a
  Series II Exchangeable Share Voting, Support and Exchange Agreement, dated as
  of January 2, 2005 (the &#147;Series II Support Agreement&#148;) among the Company,
  YAC, Callco, Acquiror and the Acquiree stockholders holding Series II
  Exchangeable Shares of Acquiror (the &#147;Acquiror Series II Exchangeable
  Shares&#148;), the Holders of the Acquiror Series II Exchangeable Shares have the
  option (subject to the right of Callco (the &#147;Retraction Call Right&#148;)
  exercisable upon the occurrence of certain events to require the Holders to
  sell their Acquiror Series II Exchangeable Shares to Callco) to require
  Acquiror to redeem any or all of the Holders&#146;s Acquiror Series II
  Exchangeable Shares at a price equal to:</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>the then current market price
  for one share of the Company&#146;s common stock which is payable by the delivery
  of one (1) share of the Company&#146;s common stock; plus the amount of all cash
  dividends declared and unpaid by us on the Company&#146;s common stock at the
  effective time of such action; plus the amount of all declared and unpaid
  non-cash dividends or other distributions by us on the Company&#146;s common stock
  at the effective time of such action.</FONT></P>
  </TD>
 </TR>
</TABLE>


<P ALIGN=CENTER><FONT  SIZE=2>28</FONT></P>


<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=2><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR><BR>


<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px" >
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>Notwithstanding the forgoing,
  during the first ninety days following the issuance of any Series II
  Exchangeable Shares, the Holders can only require the Acquiror to redeem half
  of their Series II Exchangeable Shares.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>All Holders of Acquiror Series
  II Exchangeable Shares receive one share of the Company&#146;s Series A Preferred
  Stock for each of their Acquiror Series II Exchangeable Shares.
  Contemporaneously with the completion of any transaction pursuant to which
  any Acquiror Series II Exchangeable Shares held by a Holder is retracted,
  redeemed, purchased or exchanged, such Holder(s) shall surrender to us a like
  number of shares of Series A Preferred Stock for cancellation. Holders of
  Acquiror Series II Exchangeable Shares are entitled to receive dividends on
  such shares at the times and in the amounts of any dividends declared by us
  on the Company&#146;s common stock. The Series II Support Agreement also places
  limitations on Acquiror&#146;s ability to pay dividends on its common stock while
  shares of Acquiror Series II Exchangeable Shares are issued and outstanding.
  The Series II Support Agreement grants the Holders the right to require
  Callco to purchase from the Holders all or any part of the Holder&#146;s Acquiror
  Series II Exchangeable Shares upon certain events including the institution
  by Acquiror of any proceeding to be adjudicated a bankrupt or insolvent or to
  be dissolved or wound up. The Series II Support Agreement further provides
  for automatic exchange upon the Company&#146;s liquidation or dissolution or upon
  the sale of all or substantially all of the Company&#146;s assets.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>As described in Note 20,
  effective November 4, 2005, the Company and the Aquiree Shareholders agreed
  to modify certain provisions of the original Share Purchase Agreement
  relating ot the payment of contingent consideration and to cancel 1,932,000
  Redeemable Preferred Shares in exchange for $2,890,678 in cash and 600,000
  shares of the Company common stock. </FONT></P>
  </TD>
 </TR>
</TABLE>

  <P ALIGN=JUSTIFY><FONT SIZE=2>17. CONSULTING
AGREEMENTS</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px" >
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2><U>Westminster Capital Corp.</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>In January 2005, the Company
  entered into a 3 year consulting agreement with Westminster Capital Inc., a
  shareholder, to provide various services to the Company. The Company issued
  300,000 shares in exchange for the services.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2><U>Gregory Belzberg</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>In January 2005, the Company
  entered into a 3 year consulting agreement with Gregory Belzberg, a
  shareholder, to provide various services to the Company. The Company issued
  50,000 shares in exchange for the services.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><U>6327214 Canada Inc. (A Related
  Party)</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>In January 2005, the Company
  executed a consulting agreement with 6327214 Canada Inc., a company owned by
  William Smith, the Company&#146;s CFO, to provide consulting services to the
  Company. 6327214 Canada Inc. is paid approximately $11,500 per month based on
  invoicing to the Company. In addition, the Company covers all business
  related expenses incurred by 6327214 Canada Inc. while delivering the
  consulting services. This agreement continues until terminated and can be
  terminated by the Company upon 10 months written notice. At the same time the
  existing agreement with Manchester Administrative Services providing
  consulting services was terminated. </FONT></P>
  </TD>
 </TR>
</TABLE>



<P ALIGN=CENTER><FONT  SIZE=2>29</FONT></P>


<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=2><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR><BR>


<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px" >
  <TD WIDTH="5%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2><U>Agora Investor Relations Corp.</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>Effective February 1, 2005 the
  Company entered into a 1 year Investor Relations Agreement with Agora
  Investor Relations Corp., an Ontario, Canada corporation (&#147;Agora&#148;) pursuant
  to which Agora provides shareholder relation services and, subject to
  compliance with applicable laws, rules and regulation, other services
  intended to raise public awareness of the Company&#146;s business. Compensation
  under this arrangement includes monthly cash payments amounting to CDN$2,750
  (approximately US$2,300) and 100,000 stock options with an exercise price of
  $1.55 per share issued at the inception of the agreement (Note 13).</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>The options are exercisable,
  upon vesting, during the period February 1, 2006 through February 1, 2008.
  25,000 of the options vest on each of May 1, 2005; August 1, 2005; November
  1, 2005; and February 1, 2006. The agreement is renewable at the Company&#146;s
  option, for an additional 1 year term on similar terms. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2><U>Stockgroup Media Inc.</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>Effective February 1, 2005 the
  Company entered into a 1 year Investor Relations Agreement with Stockgroup
  Media Inc., a Canadian corporation (&#147;Stockgroup&#148;) pursuant to which
  Stockgroup provides shareholder relation services and, subject to compliance
  with applicable laws, rules and regulations, other services intended to raise
  public awareness of the Company&#146;s business. In consideration of such
  services, the Company is paying Stockgroup monthly compensation of CDN$2,250
  (approximately US$1,920).</FONT></P>
  </TD>
 </TR>
</TABLE>

<P ALIGN=JUSTIFY><FONT SIZE=2>18. PROPOSED
ACQUISITION OF TURBON AG</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px" >
  <TD WIDTH="5%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>In April 2005, the Company made
  a tentative offer to the management of Turbon to acquire all the outstanding
  shares of Turbon, a leading global imaging supply company publicly traded on
  the Frankfurt stock exchange. The aggregate offering price pursuant to the
  offer, as amended, amounts to approximately US$56.8 million in cash. The
  Turbon Executive Board has agreed to meet with us to discuss the details of
  our offer as well as the planned role and significance of Turbon within the
  combined entity in the event the acquisition is accomplished. If amenable to
  our offer, Turbon&#146;s Executive Board will provide its recommendation to
  Turbon&#146;s shareholders. The completion and closing of this transaction is
  subject to certain conditions, including but not limited to, completing due
  diligence, raising the necessary funds to close the transaction, and obtaining the approval of
  Turbon&#146;s shareholders. The Company cannot provide any assurance that it will
  complete this proposed acquisition or that the terms of the transaction if
  completed will not be materially different from the terms that are currently
  proposed.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>On June 21, 2005 and June 22,
  2005 the Company entered into stock purchase agreements with each of NCR
  Corporation, Holger Brueckmann - Turbon and Gothaer Lebensversicherung AG (the &#147;Selling
  Shareholders&#148;). Pursuant to the Agreements, the Selling Shareholders
  have agreed to sell to the Company an aggregate of 2,509,000 shares of Turbon
  capital stock owned by them in the event the Company submits a public offer
  for the acquisition of the such shares in accordance with the terms of the
  Securities Acquisition and Takeover Act, to which Turbon is subject, by
  September 30, 2005. Prior to the end of the quarter all the above
  shareholders extended the agreements to December 31, 2005. The purchase price
  for the Vendor Shares, which is payable in cash or a combination of cash and
  stock, will be made for at least $14 per share. Under the Agreements, the
  Company is not required to submit an offer to purchase the Vendor Shares or
  any other Turbon shares.</FONT></P>
  </TD>
 </TR>
</TABLE>



<P ALIGN=CENTER><FONT SIZE=2>30</FONT></P>


<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=2><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR><BR>


<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px" >
  <TD WIDTH="5%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>Effective June 22, 2005 the
  Company entered into a Share Purchase Agreement with Turbon pursuant to which
  it agreed to purchase 400,000 Turbon shares from Turbon&#146;s treasury at a
  purchase price of $14 per share or an aggregate of $5,600,000 (the &#147;Purchase
  Price&#148;). On June 23, 2005 the Company paid Turbon $1,001,000 of the Purchase
  Price which represents 71,500 shares. Such funds were obtained under the loan
  facility with LOM described in Note 10. The balance of $4,599,000 (328,500
  shares) was completed November 4, 2005 (see Note 18 below). These funds were
  comprised of $1.2 million from a private placement, a $2.8 million term loan
  from Turbon International, and a $600,000 loan from three shareholders, two
  of which are officers of the Company.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>The Company classified its
  investment in these securities as investment in prospective acquiree in the
  accompanying balance sheet pending its completion of the transaction.</FONT></P>
  </TD>
 </TR>
</TABLE>

<P ALIGN=JUSTIFY><FONT SIZE=2>19. MAJOR
CUSTOMERS AND FOREIGN AND DOMESTIC SALES</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px" >
  <TD WIDTH="5%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>During the nine months ended
  September 30, 2005, ten customers represented 42% of our total sales and one
  customer represented approximately 16% of our total sales. Sales to
  customers in the United States represented 59% of total sales and sales to
  customers outside the United States represented 41% of total sales.</FONT></P>
  </TD>
 </TR>
</TABLE>

<P ALIGN=JUSTIFY><FONT SIZE=2>20. SUBSEQUENT
EVENTS</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px" >
  <TD WIDTH="5%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P ALIGN=JUSTIFY> &nbsp;</P>
  </TD>
 </TR>

 <TR >
  <TD WIDTH="5%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2><U>Private Placements and Loans</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>On November
  4, 2005 the Company sold 2,400,000 subscription receipts at a price of $.50
  per subscription receipt or an aggregate of $1,200,000 to HBT Holdings GmbH,
  each subscription receipt to be automatically exercised, without payment of
  any additional consideration, on January 31, 2006 into, subject to
  adjustment, one unit. Each unit consists of one share of common stock (the
  &#147;Unit Shares&#148;) and one common stock purchase warrant (the &#147;Unit Warrants&#148;)
  .Each warrant entitles the holder to purchase, subject to adjustment, an
  additional share of common stock (the &#147;Warrant Shares&#148;) at a price of $1.25
  per share during the period ending at 5:00 p.m. (Toronto time) on May 3,
  2008. We have agreed to use best efforts to file a registration statement on
  or before March 31, 2006 and to have such registration statement declared
  effective within 90 days of filing, registering the resale of the Unit Shares
  and Unit Warrants and the issuance of the Warrant Shares. The issuance of the
  subscription receipts was made in reliance on Regulation S under the
  Securities Act of 1933, as amended. Proceeds from the sales were utilized to
  purchase certain Turbon AG shares (See below).</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>On November
  4, 2005 the Company received aggregate loans of $600,000 from three related
  persons. In consideration thereof, the Company issued 5% convertible
  promissory notes due December 31, 2006 (the &#147;Maturity Date&#148;) to Alain Lachambre
  ($136,198), Yvon Leveille ($328,113) and Manchester Consolidated Corp.
  ($135,689). Interest and principal on the notes are due on the Maturity Date.
  The notes can be prepaid at any time. If all principal and interest due on
  the notes are not paid in full on the Maturity Date, the respective holders
  may, at their sole option, convert the total amount of unpaid principal and
  interest into shares of common stock at the rate of $.50 per share. The
  issuance of the notes was made in reliance on Section 4(2) of the Securities
  Act of 1933, as amended. The loan proceeds were utilized to purchase certain
  Turbon shares. (See below).</FONT></P>
  </TD>
 </TR>
</TABLE>



<P ALIGN=CENTER><FONT SIZE=2>31</FONT></P>


<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=2><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR><BR>


<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px" >
  <TD WIDTH="5%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>On November
  9, 2005 the Company entered into an Agency Agreement with Loewen, Ondaatje,
  McCutcheon Limited (&#147;LOM&#148;) pursuant to which the Company offered and sold
  through LOM, as placement agent, (the &#147;Agent&#148;) 4,000,000 subscription
  receipts (the &#147;Subscription Receipts&#148;) at a price of $.50 per Subscription
  Receipt or $2,000,000 in the aggregate. The offering was made to non-US
  persons in reliance on Regulation S under the Securities Act of 1933 as
  amended. Each Subscription Receipt will be automatically exercised, without
  payment of any additional consideration, at the Automatic Exercise Date, as
  defined below, into, subject to adjustment, a unit (the &#147;Units&#148;) consisting
  of one share of common stock (the &#147;Unit Shares&#148;) and one common stock
  purchase warrant (the &#147;Unit Warrants&#148;). Each Unit Warrant entitles the holder
  to purchase an additional share of common stock (the &#147;Warrant Shares&#148;) at a
  price of $1.25 per share during the 30 month period that commenced on
  November 9, 2005. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>Pursuant to
  the Agency Agreement, the Company paid the Agent a commission of $140,000
  which is equal to 7% of the gross aggregate offering proceeds and issued to
  the Agent 280,000 broker warrants (the &#147;Broker Warrants&#148;) which is equal to
  7% of the number of Subscription Receipts sold. Each Broker Warrant will be
  automatically exercised, without payment of any consideration, at the
  Automatic Exercise Date, as defined below, into, subject to adjustment, one
  agent&#146;s warrant (the Agent&#146;s Warrant&#148;). Each Agent&#146;s Warrant entitles the
  holder, subject to adjustment and the terms and condition set forth in the
  Agent&#146;s Warrant certificate, to purchase one Unit at a price of $.50 per Unit
  during the 30 month period that commenced November 9, 2005. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>For purposes
  of the Agency Agreement, the Automatic Exercise Date means the earlier of (i)
  December 31, 2005; (ii) the closing date in respect of the Prospectus and the
  Registration Statement, as defined below; and (iii) the Qualification Date,
  as defined below.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>The
  Qualification Date is defined as the earlier of (i) December 31, 2005; or
  (ii) the date ten business days following the date by which both (a) a
  receipt (the &#147;Receipt&#148;) for the final prospectus that qualifies the Units and
  Agent&#146;s Warrants for issuance in Canada (the &#147;Prospectus&#148;) has been obtained
  from the securities commission or securities regulatory authorities in those
  Canadian provinces where purchasers of the Subscription Receipts reside and
  (b) a registration statement under the Securities Act of 1933, as amended,
  (the &#147;Registration Statement&#148;) has become effective for registering the
  resale of the Unit Shares, Unit Warrants (including those underlying the
  Agent&#146;s Warrants, as defined below), and the Warrant Shares issuable upon
  exercise of the Unit Warrants. In all events the Company has agreed to use
  best efforts to have the common shares listed for trading on the Toronto
  Stock Exchange, file and obtain the Receipt for the Prospectus and file and
  have the Registration Statement declared effective by March 31, 2006.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>Pursuant to
  the Agency Agreement, the Company also granted the Agent the right to act as
  co-lead member of an investment banking syndicate for purposes of marketing
  and selling any brokered equity financing for the Company in Canada for a
  period of one year commencing November 9, 2005. The Company also granted the
  Agent the right to a minimum participation of 15% on any brokered equity
  financing in the United States for a period of one year commencing November
  9, 2005.</FONT></P>
  </TD>
 </TR>
</TABLE>




<P ALIGN=CENTER><FONT SIZE=2>32</FONT></P>


<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=2><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR><BR>


<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px" >
  <TD WIDTH="5%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2><U>Modifications
  to Share Purchase Agreement </U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>On November
  4, 2005 the Company entered into an agreement with 9144-6773 Quebec Inc. and
  9144-6906 Quebec Inc. (the &#147;Modification Agreement&#148;), providing for the
  restructuring of certain payment stipulated in the Share Purchase Agreement
  described in Note 14. These obligations were modified to improve the Company&#146;s
  liquidity and facilitate its purchase of treasury shares of Turbon AG as
  described below. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>Pursuant to
  the restructuring, the Company and Acquiree Shareholders agreed to cancel any
  obligation on the part of the Company to (a) ,make any Contingent Consideration
  payments to the Acquiree Shareholders (described in the Share Purchase
  Agreement) and (b) redeem the 1,932,000 shares of Redeemable Preferred Stock
  originally issued as part of the purchase consideration (Notes 11 and 14). In
  exchange, the Company agreed to make an immediate payment of $600,000 to the
  Acquiree Shareholders, issue 3,272,397 shares to the Acquiree Shareholders,
  make an aggregate of $2,290,678 in additional cash payments in six equal
  installments of $381,780 each on March 31, 2007; June 30, 2007; September 30,
  2007; December 31, 2007; March 31, 2008 and June 30, 2008.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2><U>Share
  Purchase Agreement with Turbon AG</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>Effective
  June 22, 2005 the Company entered into a Share Purchase Agreement (the
  &#147;Agreement&#148;) with Turbon AG (&#147;Turbon&#148;) pursuant to which the Company agreed
  to purchase 400,000 Turbon shares from Turbon&#146;s treasury at a purchase price
  of $14 per share or an aggregate of $5,600,000 (the &#147;Purchase Price&#148;). On
  June 23, 2005 the Company paid Turbon $1,001,000 of the Purchase Price and
  acquired 71,500 of the 400,000 Turbon shares. On November 4, 2005 the Company
  paid Turbon an additional $4,599,000 and acquired the remaining 328,500 of
  the 400,000 Turbon shares. Manchester Consolidated Corp. is entitled to
  acquisition fees under their agreement of $642,000. The acquisition fees will
  be paid in a combination of cash of $82,000 and the balance in shares of
  common stock. For such purposes, the common stock will be valued at $.50 per
  share.</FONT></P>
  </TD>
 </TR>
</TABLE>



<P ALIGN=CENTER><FONT SIZE=2>33</FONT></P>


<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=2><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR><BR>


<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px" >
  <TD WIDTH="5%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P ALIGN=JUSTIFY>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2><U>Loan Agreement
  with Turbon International Inc.</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>As of
  November 4, 2005 the Company entered into a Loan Agreement (the &#147;Loan
  Agreement&#148;) with Turbon International Inc., (&#147;Turbon International&#148;), a
  wholly subsidiary of Turbon AG, and Teckn-O-Laser Global Company, a wholly
  owned subsidiary of the Company (&#147;Teckn-O-Laser&#148;). Pursuant to the Loan
  Agreement, Turbon International made a $2,800,000 term loan to the Company
  and extended a line of credit for up to an additional $2,800,000. Proceeds
  from the term loan were utilized to purchase certain Turbon AG shares (see
  above). In consideration of the $2,800,000 term loan, the Company issued a 5%
  promissory note to Turbon International. Interest under the term loan note is
  payable quarterly on each of January 31, April 30, July 31 and October 31
  during the term of the loan commencing January 31, 2006. Principal and
  accrued but unpaid interest under the term loan note are due October 31, 2008
  subject to acceleration upon an event of default. The loan can be prepaid at
  any time prior to maturity without penalty. The line of credit may only be
  used for the purpose of purchasing products from Turbon International and
  certain affiliated entities. The Company will pay interest of 5% per annum on
  all sums advanced under the line of credit. Interest will be due and payable
  on the last day of each quarter starting with the quarter ending November 30,
  2005. Principal and accrued but unpaid interest under the line of credit are
  due October 31, 2006 subject to acceleration upon an event of default. All
  advances under the line of credit will be evidenced by promissory notes.
  Amounts borrowed under the line of credit may be repaid at any time prior to
  maturity without penalty and may be re-borrowed. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>Upon an
  event of default under the term loan or line of credit the interest rate
  payable under the applicable notes will be increased from 5% to 9% until
  cured. The Company&#146;s indebtedness to Turbon International under both the term
  loan and line of credit has been guaranteed by Teckn-O-Laser and, subject to
  the receipt of written consent from existing secured lenders, will be secured
  by a first priority loan on the 400,000 shares of common stock of Turbon AG.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2><U>Litigation
  Settlement</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=JUSTIFY><FONT SIZE=2>The Company settled its
  litigation with Dancap for approximately $42,500 (Cdn$50,000) on November 10,
  2005</FONT></P>
  </TD>
 </TR>
</TABLE>



<P ALIGN=CENTER><FONT SIZE=2>34</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=2>

<pAGE>

<BR>
<BR>


<table border="0" cellspacing=0 cellpadding=0 width="273" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>ITEM 2.</font></B></p> </td>
        <td width="177" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>PLAN OF OPERATION</font></B></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>The following discussion and analysis should be read in conjunction with the consolidated financial statements and the notes thereto appearing elsewhere in this Report.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>In January 2005 we purchased Teckn-O-Laser Global Company, a remanufacturer of laser toner and inkjet print cartridges. Prior to the acquisition, we had no operations. Accordingly, no comparison of prior period results is contained herein.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>As of September 30, 2005, we had a working capital
deficiency of approximately $4,649,023 (including approximately $2,125,037 related to the discontinued operation leaving a net
working capital deficiency of approximately $2,523,986). At September 30, 2005 and subsequent thereto, we are not in compliance with
certain covenants under a line of credit obligation and certain of its term loans. The lender under these obligations has the right
to demand immediate repayment of these loans due to this event of default. See Item 3 hereof. The exercise of this right and the
requirement to immediately repay the outstanding balance, which amounts to an aggregate of $2,517,636 at September 30, 2005, would
have a material adverse effect on our business. We cannot provide any assurance that the lender under these obligations will provide
us with a waiver of this breach of covenant.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.49in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Our ability continued existence is dependent upon our ability to raise additional capital and generate revenue and operating cash flow through the execution of our business plan. We can not provide any assurance that we will be able obtain the financing we needs to sustain the business until such time that we generate sufficient revenue and operating cash flow through the operations of the Tecknolaser Group or other prospective acquiree businesses. These matters raise substantial doubt about our ability to continue as a going concern. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Subsequent to September 30, 2005 we  raised approximately $4.4 million in additional equity and entered into a loan agreements for approximately $7.2 million with various parties. These financings allowed us to acquire Teckn-O-Laser Global Company in January 2005 and an aggregate of 400,000 treasury shares of Turbon AG in June 2005 and November 2005. In April 2005 we announced our intention to launch a formal takeover offer for 100% of the shares of Turbon AG, a German public company operating in the same business. As discussed above, we have acquired 400,000 common shares of Turbon AG which equates to approximately 10% of Turbon AG&#146;s outstanding common shares. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Except as provided herein, we have no present
commitment that is likely to result in our liquidity increasing or decreasing in any material way. In addition, except as noted
herein, we know of no trend, additional demand, event or uncertainty that will result in, or that are reasonably likely to result
in, our liquidity increasing or decreasing in any material way. We have no material commitments for capital expenditures. As a
result of the Teckn-O-Laser Global Company acquisition we operate a plant in Sainte Julie, Quebec that is equipped to remanufacture
laser toner printer cartridges. We also conduct reverse engineering of products at this location. During its 2003 and 2004 fiscal
years ended April 30, 2003 and April 30, 2004, respectively, Teckn-O-Laser Global Company expended approximately $395,833
(approximately CDN$475,0000) and $280,000 (approximately CDN$336,000) on this reverse engineering process. We anticipate spending
approximately $350,000 on the reverse engineering during 2005. We have 232 employees as a result of the acquisition. We presently
have sufficient cash available together with anticipated cash flow from operations to cover our anticipated cash requirements for
our existing operations for the next 12 months. We anticipate however, that we will need additional financing during the next 12
months with respect to our intended acquisition of the balance of Turbon AG and any other acquisitions that we may decide to engage
in.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>35</font></p>

<br>
<HR noshade align="center" width="100%" size="2">
<pAGE>

<BR>
<BR>
<table border="0" cellspacing=0 cellpadding=0 width="339" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>ITEM 3.</font></B></p> </td>
        <td width="243" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>CONTROLS AND PROCEDURES</font></B></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Evaluation of Our Disclosure Controls and Internal Controls</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>As of the end of the period covered by this Quarterly Report, we carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Exchange Act Rule 13-d-15(e) and 15d-15(e)). Based upon that evaluation, our Chief Executive Officer (&#147;CEO&#148;) and Chief Financial Officer (&#147;CFO&#148;) concluded that as of the end of the period covered by this Quarterly Report on Form 10-QSB our disclosure controls and procedures were adequate to enable us to record, process, summarize and report information required to be included in our periodic SEC filings within the required time period.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Officers&#146; Certifications</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Appearing as exhibits to this Quarterly Report are &#147;Certifications&#148; of the CEO and the CEO. The Certifications are required pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (the &#147;Section 302 Certifications&#148;). This section of the Quarterly Report contains information concerning the Controls Evaluation referred to in the Section 302 Certifications and this information should be read in conjunction with the Section 302 Certifications for a more complete understanding of the topics presented.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Disclosure Controls and Internal Controls</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Disclosure Controls are procedures that are designed with the objective of ensuring that information required to be disclosed in our reports filed under the Securities Exchange Act of 1934 (&#147;Exchange Act&#148;), such as this Quarterly Report, is recorded, processed, summarized and reported within the time periods specified in the SEC&#146;s rules and forms. Disclosure Controls are also designed with the objective of ensuring that such information is accumulated and communicated to our management, including the CEO and CFO, as appropriate to allow timely decisions regarding required disclosure. Internal Controls are procedures which are designed with the objective of providing reasonable assurance that (1) our transactions are properly authorized, recorded and reported; and (2) our assets are safeguarded against unauthorized or improper use, to permit the preparation of our financial statements in
conformity with generally accepted accounting principles.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Our Company is not an accelerated filer (as defined in the Securities Exchange Act) and is not required to deliver management&#146;s report on control over our financial reporting until our fiscal year ended December 31, 2006. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>There were no changes in our internal controls over financial reporting that occurred during the quarter ended September 30, 2005 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>36</font></p>

<br>
<HR noshade align="center" width="100%" size="2">
<pAGE>

<BR>
<BR>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>PART II - OTHER INFORMATION</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.38in;text-align:center;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="279" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>ITEM 1.</font></B></p> </td>
        <td width="183" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>LEGAL PROCEEDINGS</font></B></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>On December 31, 2002, our CEO and VP of Finance resigned. On the same date, one of the production chemists from our R&amp;D facility also resigned. Prior to resigning these three officers dismissed all the employees of Reink USA, which left us with no employees. On May 7, 2003 we commenced legal proceedings against these three former officers in the United States Bankruptcy Court for the District of New Jersey (Case Number 03-11053 (JHW)) for actions we believe to be in violation of non-competition and confidentiality clauses within their employment contracts. In this action we are seeking damages and other relief in the amount of $1,000,000. The prior officers filed a counter-suit against us for back wages and other costs. We consider the counter-claim to be without merit. On September 7, 2003 we filed a defense against the counter-claim. We are presently unable to determine the probable outcome of these matters.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>In January, 2003 the three largest creditors of Reink USA filed a petition to force Reink into Chapter 7 under the US Federal Bankruptcy Act. We believe that some of the creditors involved with the petition assisted the new business which competed directly against us and was founded by our former CEO and VP of Finance. Reink USA filed a motion to have the petition thrown out since the third creditor withdrew from the filing and also since the counsel for the petitioners withdrew. Subsequently the remaining two creditors provided a new third creditor and amended the filing. This new third creditor also subsequently withdrew and the two remaining creditors found two other creditors and filed an amendment. During March 2003, Reink USA&#146;s motion to convert to a voluntary Chapter 11 was accepted by the District of New Jersey, Federal Bankruptcy Court. As a result of failed negotiations with our largest
suppliers, on July 10, 2003, Reink USA was moved from Chapter 11 &#147;Reorganization&#148; into Chapter 7 &#147;Liquidation&#148; and a Bankruptcy Trustee was appointed to administer the estate. As a result, we lost control of Reink USA and Reink USA is presented for all periods as a discontinued operation. The Company is unaware of any changes in the status of the Bankruptcy proceedings.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>In June 2005, we were served with a Statement of Claim by Dancap Private Equity Inc. (&#147;Dancap&#148;). The Statement of Claim alleges that we are in breach of certain obligations under a letter agreement between us and Dancap, dated September 25, 2004, with respect to a possible investment in us by Dancap. The Statement of Claim relates to a break fee provision contained in the letter agreement and seeks CDN$107,000 in damages together with interest and costs. On November 10, 2005 we settled this claim for a total of Cdn $50,000 or approximately US$42,500. We obtained full releases related to this matter.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>No other material legal proceedings are pending to which we or any of our property are subject, nor to our knowledge are any such proceedings threatened. </font></p>


<table border="0" cellspacing=0 cellpadding=0 width="477" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>ITEM 2.</font></B></p> </td>
        <td width="381" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>CHANGES IN SECURITIES AND USE OF PROCEEDS</font></B></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>In connection with our July 21, 2005 Agency Agreement with Loewen, Ondaatje, McCutcheon Limited described in Item 5 hereof, and the related offering made thereunder, on July 21, 2005 we issued the following securities.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(i)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1,707,000 Subscription Receipts</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(ii)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>119,490 Broker Warrants</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>37</font></p>

<br>
<HR noshade align="center" width="100%" size="2">
<pAGE>
<BR>
<BR>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'>
<font size=2>For a detailed description of the foregoing securities and the securities into which they will be automatically exercised, reference is made to Item 5 hereof.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Effective September 30, 2005 Westminster Capital Inc., the holder of our January 7, 2005 3.9% 1,000,000 convertible promissory note, converted the principal ($1,000,000) and interest ($28,529) then due thereon, at a conversion price of $.50 per unit, into an aggregate of 2,057,058 units. Each unit consists of one share of our common stock and one common stock purchase warrant each of which is exercisable to purchase an additional share of our common stock at a price of $1.50 per share at any time prior to July 1, 2008. We have yet to issue the 2,057,058 shares but expect to do so shortly.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>On November 4, 2005 we sold 2,400,000 subscription receipts at a price of $.50 per subscription receipt or an aggregate of $1,200,000 to HBT Holdings GmbH, each subscription receipt to be automatically exercised, without payment of any additional consideration, on January 31, 2006 into, subject to adjustment, one unit. Each unit consists of one share of our common stock (the &#147;Unit Shares&#148;) and one common stock purchase warrant (the &#147;Unit Warrants&#148;) .Each warrant entitles the holder to purchase, subject to adjustment, an additional share of our common stock (the &#147;Warrant Shares&#148;) at a price of $1.25 per share during the period ending at 5:00 p.m. (Toronto time) on May 3, 2008. We have agreed to use our best efforts to file a registration statement on or before March 31, 2006 and to have such registration statement declared effective within 90 days of filing, registering the
resale of the Unit Shares and Unit Warrants and the issuance of the Warrant Shares. Proceeds from the sales were utilized to purchase certain Turbon AG shares (See Item 5 &#150; Turbon Share Purchase Agreement).</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>On November 4, 2005 we received aggregate loans of $600,000 from three related persons. In consideration thereof, we issued 5% convertible promissory notes due December 31, 2006 (the &#147;Maturity Date&#148;) to Alain Lachambre ($136,198), Yvon Leveille ($328,113) and Manchester Consolidated Corp. ($135,689). Interest and principal on the notes are due on the Maturity Date. The notes can be prepaid by us at any time. If all principal and interest due on the notes are not paid in full on the Maturity Date, the respective holders may, at their sole option, convert the total amount of unpaid principal and interest into shares of our common stock at the rate of $.50 per share. The loan proceeds were utilized to purchase certain Turbon AG shares. (See Item 5 &#150; Turbon Share Purchase Agreement).</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>On November 4, 2005 we entered into a term loan with Turbon International Inc. as more fully described in Item 5 hereof. In connection therewith we issued to Turbon International Inc. a $2,800,000 5% promissory note due October 31, 2008. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>In connection with our November 9, 2005 Agency Agreement with Loewen, Ondaatje, McCutcheon Limited described in Item 5 hereof, and the related offering made thereunder, on November 9, 2005 we issued the following securities:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="307" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(i)</font></p> </td>
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>4,000,000 Subscription Receipts</font></p> </td> </tr>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(ii)</font></p> </td>
        <td width="171" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>280,000 Broker Warrants</font></p> </td>
        <td  width="40">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>For a detailed description of the forgoing securities and the securities into which they will be automatically exercised, reference is made to Item 5 hereof.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>All of the foregoing issuances were made in reliance on Section 4(2) or Regulation S of the Securities Act of 1933, as amended.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>38</font></p>

<br>
<HR noshade align="center" width="100%" size="2">
<pAGE>

<BR>
<BR>

<table border="0" cellspacing=0 cellpadding=0 width="393" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>ITEM 3.</font></B></p> </td>
        <td width="297" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>DEFAULTS UPON SENIOR SECURITIES</font></B></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><u><font size=2>Bank Line of Credit</font></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>We currently have a credit facility with a Canadian bank that provides for aggregate borrowings of up to approximately $3.0 million (CDN$3.5 million), including an exchange line of credit for an amount of US$250,000. The loan is secured by a first ranking lien for an amount of approximately $4.3 million (CDN$5 million) on all accounts receivable and inventories. Interest is at the Bank's Canadian prime rate plus 1% (5.25% as at September 30, 2005) and is renewable annually.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>We are required to comply with certain financial
ratios under the terms of the bank loan. As of September 30, 2005, and subsequent thereto, we were not in compliance with one of
these financial ratios. We anticipate being able to cure the aforementioned default, however; we cannot provide any assurance that
the lender will waive the violation. The lender has requested that we seek alternative methods of financing in order to replace this
operating facility.&nbsp; The lender currently has the ability to demand immediate repayment of the loan which demand would have a
material adverse effect on our financial position.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="283" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>ITEM 5.</font></B></p> </td>
        <td width="187" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>OTHER INFORMATION</font></B></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><u><font size=2>Turbon Share Purchase Agreement</font></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Effective June 22, 2005 we entered into a Share Purchase Agreement (the &#147;Share Purchase Agreement&#148;) with Turbon AG pursuant to which we agreed to purchase 400,000 Turbon AG shares from Turbon AG&#146;s treasury at a purchase price of $14 per share or an aggregate of $5,600,000 (the &#147;Purchase Price&#148;). On June 23, 2005 we paid Turbon $1,001,000 of the Purchase Price and acquired 71,500 of the 400,000 shares. On November 4, 2005 we paid Turbon AG $4,599,000 of the Purchase Price and acquired the remaining 328,500 shares. In furtherance of the Share Purchase Agreement, we have obtained irrevocable agreements from Turbon AG&#146;s three largest shareholders, with aggregate holdings of 2,509,000 Turbon AG shares, in which each of the shareholder&#146;s have agreed to sell all of the Turbon AG shares owned by them or affiliated entities to us, upon a formal takeover offer by us, at a price of
$14 per share in cash or a combination of cash and stock. The 400,000 shares purchased by us represent 9.928% of Turbon AG&#146;s outstanding share capital consisting of 4,029,000 shares. The Share Purchase Agreement is part of our larger plan to acquire all or a majority of Turbon AG&#146;s outstanding shares. The closing and completion of any such transaction will be subject to certain conditions including but not limited to, raising of necessary funds to close the transaction and obtaining the approval of Turbon AG&#146;s shareholders. No assurance can be given that we will be able to close and complete the transaction. Pursuant to the Share Purchase Agreement, Manchester Consolidated Corp. is entitled to acquisition fees of $642,000. The acquisition fee is being paid in a combination of cash ($82,000) and the balance in shares of our common stock. For such purposes, the common stock will be valued at $.50 per share.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><u><font size=2>Sale Leaseback Of Production Plant</font></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>On August 15, 2005 our wholly owned subsidiary, Teckn-O-Laser Global Company, sold its land and building for a gross purchase price of approximately $2,900,000 (CDN$3,400,000). The same property was leased back to our wholly owned subsidiary, Teckn-O-Laser, Inc., for a period of approximately ten years, effective September 30, 2005, under a triple net lease which provides for payments in equal monthly installments. The base rent under the lease is $297,885 </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>39</font></p>

<br>
<HR noshade align="center" width="100%" size="2">
<pAGE>

<BR>
<BR>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'>
<font size=2>(CDN$345,775) per annum for the first five years, and $327,673 (CDN$380,352) per annum for the next five years of the term of the lease. The lease provides for two renewal options to extend the term of the lease each by a period of five years.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><u><font size=2>LOM Loan Agreement</font></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Effective June 22, 2005 we entered into an agreement (the &#147;Loan Agreement&#148;) with Loewen, Ondaatje, McCutcheon Limited (&#147;LOM&#148;), an investment banking firm. Pursuant to the Loan Agreement, LOM loaned us $1,001,000 on June 22, 2005 for the specific purpose of allowing us to purchase issued and outstanding shares of Turbon AG. The term of the loan was the one year period that commenced on June 22, 2005. Interest accrued on the outstanding amount of the loan at the rate of 10% compounded semi-annually, and was payable quarterly commencing June 1, 2005. As partial consideration for entering into the Agreement, we issued 100,000 common stock purchase warrants to LOM, each exercisable for the purchase of one share of our common stock at a price of $1.50 per share during the 30 month period following issuance. The LOM loan was repaid in full from the proceeds of our July 21, 2005 private
placement discussed below. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><u><font size=2>July 21, 2005 Agency Agreement and Private Placement</font></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>In connection with the LOM Loan Agreement, on July 21, 2005 we entered into an Agency Agreement with LOM. The proceeds from the July 2005 private placement were used to repay all principal and interest due under our loan from LOM. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>On July 21, 2005 pursuant to the Agency Agreement with LOM we offered and sold through LOM, as placement agent, (the &#147;Agent&#148;) 1,707,000 subscription receipts (the &#147;Subscription Receipts&#148;) at a price of $.75 per Subscription Receipt or $1,280,250 in the aggregate. The offering was made to non-US persons in reliance on Regulation S under the Securities Act of 1933 as amended. Each Subscription Receipt will be automatically exercised, without payment of any additional consideration, at the Automatic Exercise Date, as defined below, into, subject to adjustment, a unit (the &#147;Units&#148;) consisting of one share of our common stock (the &#147;Unit Shares&#148;) and one common stock purchase warrant (the &#147;Unit Warrants&#148;). Each Unit Warrant entitles the holder to purchase an additional share of our common stock (the &#147;Warrant Shares&#148;) at a price of $1.25 per share during
the 30 month period that commenced on July 21, 2005. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>The offer of the Subscription Receipts was made subject to satisfaction of certain conditions (the &#147;Qualification Conditions&#148;). Failure to meet the Qualification Conditions by the Qualification Date, as defined below, results in each Subscription Receipt being exercised into 1.5 Units. We do not expect to satisfy the Qualification Conditions by the Qualification Date. The Qualification Date is defined as the earlier of (i) December 31, 2005; or (ii) the date ten business days following the date by which both (a) a receipt (the &#147;Receipt&#148;) for the final prospectus of ours that qualifies the Units and Agent&#146;s Warrants, as such term is defined below, for issuance in Canada has been obtained by us from the securities commissions or securities regulatory authorities in those Canadian provinces where purchasers of the Subscription Receipts reside and (b) a registration statement under the
Securities Act of 1933, as amended, (the Registration Statement&#148;) has become effective for registering the resale of the Unit Shares, Unit Warrants (including those underlying the Agent&#146;s Warrants, as defined below), and the Warrant Shares issuable upon exercise of the Unit Warrants. The Qualification Conditions are defined in the Agency Agreement as (i) our having obtained a Receipt for the Prospectus, and the Registration Statement having </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>40</font></p>

<br>
<HR noshade align="center" width="100%" size="2">
<pAGE>

<BR>
<BR>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'>
<font size=2>become effective for registering the resale of the Unit Shares, Unit Warrants (including those underlying the Agent&#146;s Warrants, as defined below) and the Warrant Shares issuable upon exercise of the Unit Warrants; and (ii) the shares of our common stock having been listed for trading on the Toronto Stock Exchange.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Pursuant to the July 21, 2005 Agency Agreement, we paid the Agent a commission of $89,618 which is equal to 7% of the gross aggregate offering proceeds and issued to the Agent 119,490 broker warrants (the &#147;Broker Warrants&#148;) which is equal to 7% of the number of Subscription Receipts sold. Each Broker Warrant will be automatically exercised, without payment of any consideration, at the Automatic Exercise Date, as defined below, into, subject to adjustment, one agent&#146;s warrant (the Agent&#146;s Warrant&#148;). Each Agent&#146;s Warrant entitles the holder, subject to adjustment and the terms and condition set forth in the Agent&#146;s Warrant certificate, to purchase from us one Unit at a price of $.75 per Unit during the 30 month period that commenced July 21, 2005. If the Qualification Conditions haven&#146;t been satisfied by the Automatic Exercise Date, as defined below, then each Broker
Warrant will be automatically exercised at the Automatic Exercise Date into 1.5 Agent&#146;s Warrants. We do not expect to satisfy the Qualification Conditions by the Qualification Date.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>For purposes of the Agency Agreement, the Automatic Exercise Date means the earlier of (i) December 31, 2005; (ii) the closing date in respect of the Prospectus and the Registration Statement; and (iii) the Qualification Date.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Pursuant to the Agency Agreement, our officers and directors entered into 180 day lock up agreements whereby they agreed not to directly or indirectly, offer, sell, contract to sell, pledge, grant any option to purchase, make any short sale or otherwise dispose of any shares of our common stock, or any financial instruments or securities convertible into, exercisable or exchangeable for, or that represent the right to receive shares of our common stock or similar securities now owned directly or indirectly by them or under their control or direction or with respect to which they have beneficial ownership, or enter into any swap, forward or other arrangement that transfers all or a portion of the economic consequences associated with the ownership of their securities or agree to do any of the forgoing or publicly announce any intention to do the foregoing. Pursuant to the Agency Agreement, Manchester
Consolidated Corp., a principal shareholder, entered into a 30 day lock up agreement on similar terms to those discussed above.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><u><font size=2>Agreement with 9144-6773 Quebec Inc. and 9144-6906 Quebec Inc.</font></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>On November 4, 2005 we entered into an agreement with 9144-6773 Quebec Inc. and 9144-6906 Quebec Inc., to restructure certain obligations of ours to these corporations pursuant to the Share Purchase Agreement dated and effective as of January 2, 2005 among us, YAC Corp. (&#147;YAC&#148;), Teckn-O-Laser Company (&#147;TOL Canada&#148;), 3091503 Nova Scotia Company (&#147;Acquiror&#148;), Teckn-O-Laser Global Company (&#147;Acquiree&#148;), 3091732 Nova Scotia Company (&#147;Callco&#148;), and 9144-6773 Quebec Inc. and 9144-6906 Quebec Inc., the shareholders of Acquiree (the &#147;Acquiree Shareholders&#148;). </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Pursuant to the Share Purchase Agreement, we acquired through our indirect subsidiary, Acquiror, all of the issued and outstanding capital stock of Acquiree in exchange for certain payments to be made at closing (the &#147;Closing Payments&#148;) and subsequent to closing (the &#147;Post-Closing Payments&#148;).</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>41</font></p>

<br>
<HR noshade align="center" width="100%" size="2">
<pAGE>

<BR>
<BR>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
<font size=2>The Closing Payments consisted of:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=4><b>&#149;</b></font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>the issuance to the Acquiree Shareholders of 6,500,000 Acquiror Series I Exchangeable Shares; </font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=4><b>&#149;</b></font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>the issuance to the Acquiror Shareholders of 1,932,000 Acquiror Preferred Shares; and</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=4><b>&#149;</b></font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>the payment to the Acquiree Shareholders of CDN$750,000 (approximately US$625,000).</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>The required Post-Closing Payments consisted of:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=4><b>&#149;</b></font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>a cash payment to the Acquiree Shareholders of CDN$2,182,000 (approximately US$1,818,333) due March 26, 2006 (the &#147;2006 Payment&#148;);</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=4><b>&#149;</b></font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>a cash payment to the Acquiree Shareholders of CDN$1,000,000 (approximately US$833,333) due March 31, 2007 (the &#147;2007 Payment&#148;); and</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=4><b>&#149;</b></font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>a cash payment to the Acquiree Shareholders of CDN$1,000,000 (approximately US$833,333) due March 31, 2008 (the &#147;2008 Payment&#148;).</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>The 2006 Payment was not due and payable in the event that Acquiree&#146;s Earnings Before Interest Taxes Depreciation and Amortization (&#147;EBITDA&#148;) for the year ending December 31, 2005, was less than CDN$1,000,000. The 2007 Payment was not due and payable in the event that Acquiree&#146;s EBITDA for the year ending December 31, 2006 was less than CDN$1,500,000. The 2008 Payment was not due and payable in the event that Acquiree&#146;s EBITDA for the year ending December 29, 2007 was less than CDN$2,000,000.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Subject to the terms of a Series I Exchangeable Share Voting, Support and Exchange Agreement, dated as of January 2, 2005 (the &#147;Series I Support Agreement&#148;), among us, YAC, Callco, Acquiror and the Acquiree Shareholders holding Series I Exchangeable Shares of Acquiror, the holders had the option of converting any Post Closing Payments due to them into Acquiror Series I Exchangeable Shares at a conversion rate calculated by dividing the dollar amount of any converted payments by an amount representing the greater of:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=4><b>&#149;</b></font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>US$1.00 converted to CDN dollars; or</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=4><b>&#149;</b></font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>80% of the average closing price of our common stock converted to CDN dollars for the twenty trading days immediately preceding the date on which an Acquiree Shareholder provides a notice of conversion to Acquiree.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Dividends were not payable on the Acquiror Preferred Shares but as long as they were outstanding, Acquiror could not, without the approval of the holders of the Acquiror Preferred Shares, pay any dividends on Acquiror&#146;s common shares or redeem or purchase or make any capital distributions in respect of any Acquiror common shares. Holders of Acquiror Preferred Shares were entitled, subject to the exercise of the Retraction Call Right by Callco and compliance with other terms of the Preferred Share Support Agreement, to require Acquiror to redeem their Acquiror Preferred Shares at a price of CDN$1.00 per share at specified times. The times at which holders of Acquiror Preferred Shares could make such requests were as follows:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=4><b>&#149;</b></font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>September 1, 2005 : 750,000 Acquiror Preferred Shares;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=4><b>&#149;</b></font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>September 30, 2005 ; 443,250 Acquiror Preferred Shares;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=4><b>&#149;</b></font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>December 31, 2005 : 443,250 Acquiror Preferred Shares; and</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=4><b>&#149;</b></font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>March 31, 2006 : 295,500 Acquiror Preferred Shares.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>42</font></p>

<br>
<HR noshade align="center" width="100%" size="2">
<pAGE>

<BR>
<BR>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'>
<font size=2>In the event Acquiror failed or neglected to redeem the Acquiror Preferred Shares for CDN$1.00 as required by the Preferred Share Support Agreement, Acquiror was required to redeem such Acquiror Preferred Shares by issuing to the holders thereof 2.5 Series II Exchangeable Shares of Acquiror for each Acquiror Preferred Shares so redeemed.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>The restructuring transaction was effected to improve our liquidity and facilitate our purchase of treasury shares of Turbon AG. Pursuant to the restructuring, our obligation to make the 2006 Payment, 2007 Payment and 2008 Payment to the Acquiree Shareholders was terminated, and the 1,932,000 Acquiror Preferred Shares were cancelled as was our obligation to redeem such Preferred Shares. In consideration thereof, we agreed to pay $600,000 to the Acquiree Shareholders, agreed to issue 3,272,397 shares to the Acquiree Shareholders at a valuation of $.70 per share or $2,290,678, and agreed to pay to Acquiree Shareholders additional aggregate cash payments of $2,290,678 payable in six equal installments of $381,780 each on March 31, 2007; June 30, 2007; September 30, 2007; December 31, 2007; March 31, 2008 and June 30, 2008.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><u><font size=2>Loan Agreement with Turbon International Inc.</font></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>As of November 4, 2005 we entered into a Loan Agreement (the &#147;Loan Agreement&#148;) with Turbon International Inc., (&#147;Turbon International&#148;), a wholly subsidiary of Turbon AG, and Teckn-O-Laser Global Company, a wholly owned subsidiary of ours (&#147;Teckn-O-Laser&#148;). Pursuant to the Loan Agreement, Turbon International made a $2,800,000 term loan to us and extended us a line of credit for up to an additional $2,800,000. Proceeds from the term loan were utilized by us to purchase certain Turbon AG shares (See Turbon Share Purchase Agreement). In consideration of the $2,800,000 term loan, we issued a 5% promissory note to Turbon International. Interest under the term loan note is payable quarterly on each of January 31, April 30, July 31 and October 31 during the term of the loan commencing January 31, 2006. Principal and accrued but unpaid interest under the term loan note are due October
31, 2008 subject to acceleration upon an event of default. The loan can be prepaid by us at any time prior to maturity without penalty. The line of credit may only be used by us for the purpose of purchasing products from Turbon International and certain affiliated entities. We will pay interest of 5% per annum on all sums advanced under the line of credit. Interest will be due and payable on the last day of each quarter starting with the quarter ending November 30, 2005. Principal and accrued but unpaid interest under the line of credit are due October 31, 2006 subject to acceleration upon an event of default. All advances under the line of credit will be evidenced by promissory notes. Amounts borrowed under the line of credit may be repaid by us at any time prior to maturity without penalty and may be re-borrowed. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Upon an event of default under the term loan or line
of credit the interest rate payable under the applicable notes will be increased from 5% to 9% until cured. Our indebtedness to
Turbon International under both the term loan and line of credit has been guaranteed by Teckn-O-Laser and, subject to our receipt of
written consent from our existing secured lenders, will be secured by a first priority lien on our 400,000 shares of common stock of
Turbon AG.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><u><font size=2>November 9, 2005 Agency Agreement and Private Placement</font></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>On November 9, 2005 we entered into an Agency Agreement with Loewen, Ondaatje, McCutcheon Limited (&#147;LOM&#148;) pursuant to which we offered and sold through LOM, as placement agent, (the &#147;Agent&#148;) 4,000,000 subscription receipts (the &#147;Subscription Receipts&#148;) at a price of $.50 per Subscription Receipt or $2,000,000 in the aggregate. The offering was made to non-US persons in reliance on Regulation S under the Securities Act of 1933 as amended. Each Subscription Receipt will be automatically exercised, without payment of any additional </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>43</font></p>

<br>
<HR noshade align="center" width="100%" size="2">
<pAGE>

<BR>
<BR>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'>
<font size=2>consideration, at the Automatic Exercise Date, as defined below, into, subject to adjustment, a unit (the &#147;Units&#148;) consisting of one share of our common stock (the &#147;Unit Shares&#148;) and one common stock purchase warrant (the &#147;Unit Warrants&#148;). Each Unit Warrant entitles the holder to purchase an additional share of our common stock (the &#147;Warrant Shares&#148;) at a price of $1.25 per share during the 30 month period that commenced on November 9, 2005. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Pursuant to the Agency Agreement, we paid the Agent a commission of $140,000 which is equal to 7% of the gross aggregate offering proceeds and issued to the Agent 280,000 broker warrants (the &#147;Broker Warrants&#148;) which is equal to 7% of the number of Subscription Receipts sold. Each Broker Warrant will be automatically exercised, without payment of any consideration, at the Automatic Exercise Date, as defined below, into, subject to adjustment, one agent&#146;s warrant (the Agent&#146;s Warrant&#148;). Each Agent&#146;s Warrant entitles the holder, subject to adjustment and the terms and condition set forth in the Agent&#146;s Warrant certificate, to purchase from us one Unit at a price of $.50 per Unit during the 30 month period that commenced November 9, 2005. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>For purposes of the Agency Agreement, the Automatic Exercise Date means the earlier of (i) December 31, 2005; (ii) the closing date in respect of the Prospectus and the Registration Statement, as defined below; and (iii) the Qualification Date, as defined below.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>The Qualification Date is defined as the earlier of (i) December 31, 2005; or (ii) the date ten business days following the date by which both (a) a receipt (the &#147;Receipt&#148;) for the final prospectus of ours that qualifies the Units and Agent&#146;s Warrants for issuance in Canada (the &#147;Prospectus&#148;) has been obtained by us from the securities commission or securities regulatory authorities in those Canadian provinces where purchasers of the Subscription Receipts reside and (b) a registration statement under the Securities Act of 1933, as amended, (the &#147;Registration Statement&#148;) has become effective for registering the resale of the Unit Shares, Unit Warrants (including those underlying the Agent&#146;s Warrants, as defined below), and the Warrant Shares issuable upon exercise of the Unit Warrants. In all events we have agreed to use our best efforts to have our common shares
listed for trading on the Toronto Stock Exchange, file and obtain the Receipt for the Prospectus and file and have the Registration Statement declared effective by March 31, 2006.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Pursuant to the Agency Agreement, we also granted the Agent the right to act as co-lead member of an investment banking syndicate for purposes of marketing and selling any brokered equity financing for us in Canada for a period of one year commencing November 9, 2005. We also granted the Agent the right to a minimum participation of 15% on any brokered equity financing for us in the United States for a period of one year commencing November 9, 2005.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><u><font size=2>Termination of Trisan Agreement</font></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>In November 2005 we reached mutual agreement with Trisan Equitable Corporation (&#147;Trisan&#148;) to terminate Trisan&#146;s remaining obligations to us under a January 6, 2005 equity purchase commitment. Under the commitment, Trisan had committed to purchase an aggregate of 3,200,000 shares of our common stock at a price of $.50 per share or $1,600,000 on an aggregate basis. The purchases were to have been made in four installments on September 1, 2005; September 30, 2005; December 31, 2005; and March 31, 2006. We had previously agreed with Trisan to terminate the purchase obligations for the September 1, 2005 and September 30, 2005 installments. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>44</font></p>

<br>
<HR noshade align="center" width="100%" size="2">
<pAGE>

<BR>
<BR>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
<u><font size=2>Appointment of New Directors</font></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>On November 14, 2005 we increased the size of our board of directors from 5 to 7 members and appointed John Ioannou and Aldo DeLuca to fill the vacancies created thereby. Mr.&nbsp;Ioannou is an experienced senior executive with approximately 27 years of experience in which he has operated and advised  businesses in the technology, services, private equity and manufacturing sectors. He is presently employed as Vice President, New Ventures for The Turbon Group. Mr.&nbsp;DeLuca is also an experienced senior executive with approximately 26 years of experience working for businesses ranging from private sector entities to Fortune 200 companies. He is presently employed as the Managing Director of Finance and Operations for The Turbon Group. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="188" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>ITEM 6.</font></B></p> </td>
        <td width="92" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>EXHIBITS</font></B></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Exhibits</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>The following exhibits are filed as a part of this report on Form 10-QSB: </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="583" style='border-collapse:collapse'>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:.1in'><u><b><font size=2>Exhibit No.</font></b></u><u></u></p> </td>
        <td width="480" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:.1in'><u><b><font size=2>Description</font></b></u></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:.1in'><font size=2><A HREF="ex_4-1.htm#ex_4-1">4.1</A></font></p> </td>
        <td width="480" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:.1in'><font size=2><A HREF="ex_4-1.htm#ex_4-1">Subscription Receipt Certificate for November 4, 2005 Private Placement</A></font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:.1in'><font size=2><A HREF="ex_4-2.htm#ex_4-2">4.2</A></font></p> </td>
        <td width="480" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:.1in'><font size=2><A HREF="ex_4-2.htm#ex_4-2">Form of Warrant for November 4, 2005 Private Placement</A></font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:.1in'><font size=2><A HREF="ex_4-3.htm#ex_4-3">4.3</A></font></p> </td>
        <td width="480" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:.1in'><font size=2><A HREF="ex_4-3.htm#ex_4-3">Form of Broker Warrant for November 9, 2005 Private Placement</A></font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:.1in'><font size=2><A HREF="ex_10-1.htm#ex_10-1">10.1</A></font></p> </td>
        <td width="480" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:.1in'><font size=2><A HREF="ex_10-1.htm#ex_10-1">Loan Agreement with Turbon International Inc. and Teckn-O-Laser Global Company dated November 4, 2005</A></font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:.1in'><font size=2><A HREF="ex_10-2.htm#ex_10-2">10.2</A></font></p> </td>
        <td width="480" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:.1in'><font size=2><A HREF="ex_10-2.htm#ex_10-2">$2,800,000 Term Loan Promissory Note dated November 4,2005</A></font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:.1in'><font size=2><A HREF="ex_10-3.htm#ex_10-3">10.3</A></font></p> </td>
        <td width="480" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:.1in'><font size=2><A HREF="ex_10-3.htm#ex_10-3">Form of Credit Line Promissory Note with Turbon International Inc.</A></font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:.1in'><font size=2><A HREF="ex_10-4.htm#ex_10-4">10.4</A></font></p> </td>
        <td width="480" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:.1in'><font size=2><A HREF="ex_10-4.htm#ex_10-4">Loan Guarantee of Teckn-O-Laser Global Company dated November 4, 2005.</A></font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:.1in'><font size=2><A HREF="ex_10-5.htm#ex_10-5">10.5</A></font></p> </td>
        <td width="480" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:.1in'><font size=2><A HREF="ex_10-5.htm#ex_10-5">Promissory Note dated November 4, 2005 issued to Yvon Leveille</A></font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:.1in'><font size=2><A HREF="ex_10-6.htm#ex_10-6">10.6</A></font></p> </td>
        <td width="480" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:.1in'><font size=2><A HREF="ex_10-6.htm#ex_10-6">Promissory Note date November 4, 2005 issued to Alan Lachambre</A></font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:.1in'><font size=2><A HREF="ex_10-7.htm#ex_10-7">10.7</A></font></p> </td>
        <td width="480" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:.1in'><font size=2><A HREF="ex_10-7.htm#ex_10-7">Promissory Note date November 4, 2005 issued to Manchester Consolidated Corp.</A></font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:.1in'><font size=2><A HREF="ex_10-8.htm#ex_10-8">10.8</A></font></p> </td>
        <td width="480" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:.1in'><font size=2><A HREF="ex_10-8.htm#ex_10-8">Agency Agreement dated November 9, 2005 between Registrant and Loewen Ondaatje McCutcheon Limited</A></font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:.1in'><font size=2><A HREF="ex_10-9.htm#ex_10-9">10.9</A></font></p> </td>
        <td width="480" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:.1in'><font size=2><A HREF="ex_10-9.htm#ex_10-9">Agreement of Lease between Sreit (Central No. 3) Ltd and Teckn-O-Laser Company</A></font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:.1in'><font size=2><A HREF="ex_31-1.htm#ex_31-1">31.1</A></font></p> </td>
        <td width="480" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:.1in'><font size=2><A HREF="ex_31-1.htm#ex_31-1">Rule 13(a)-14(a)/15(d)-14(a) Certification of Principal Executive Officer</A></font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:.1in'><font size=2><A HREF="ex_31-2.htm#ex_31-2">31.2</A></font></p> </td>
        <td width="480" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:.1in'><font size=2><A HREF="ex_31-2.htm#ex_31-2">Rule 13(a)-14(a)/15(d)-14(a) Certification of Principal Financial Officer</A></font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:.1in'><font size=2><A HREF="ex_32-1.htm#ex_32-1">32.1</A></font></p> </td>
        <td width="480" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:.1in'><font size=2><A HREF="ex_32-1.htm#ex_32-1">Rule 1350 Certification of Chief Executive Officer</A></font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:.1in'><font size=2><A HREF="ex_32-2.htm#ex_32-2">32.2</A></font></p> </td>
        <td width="480" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:.1in'><font size=2><A HREF="ex_32-2.htm#ex_32-2">Rule 1350 Certification of Chief Financial Officer</A></font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>45</font></p>

<br>
<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>SIGNATURES</font></B></p>

<p style=' margin-bottom:5pt; margin-top:5pt; text-indent:0.56in;text-align:left;'><font size=2>Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this Form 10-QSB to be signed on its behalf by the undersigned, thereunto duly authorized. </font></p>


<table border="0" cellspacing=0 cellpadding=0 width="583" style='border-collapse:collapse'>
    <tr >
        <td width="255" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:27.0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Dated: November 18, 2005</font></p> </td>
        <td width="328" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.4pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Adsero Corporation</font></p> </td> </tr>
    <tr >
        <td width="255" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:27.0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="328" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.4pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="255" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:27.0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="328" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.4pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>By:&nbsp; </font><u><font size=2>/s/ William Smith</font></u><u></u></p> </td> </tr>
    <tr >
        <td width="255" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:27.0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="328" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.4pt;text-indent:18.2pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>William Smith</font></p> </td> </tr>
    <tr >
        <td width="255" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:27.0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="328" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.4pt;text-indent:18.2pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Secretary, Treasurer, Chief Financial Officer</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>46</font></p>

<br>

<HR noshade align="center" width="100%" size="2">

</div>
</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4
<SEQUENCE>2
<FILENAME>ex_4-1.htm
<DESCRIPTION>SUBSCRIPTION RECEIPT CERTIFICATE FOR 11-04-05
<TEXT>
<HTML>
<HEAD>
<TITLE> </TITLE>
</HEAD>
<BODY bgcolor="#ffffff" style='font-family:"Times New Roman"'>

<div style='width:600;'>

<A NAME="ex_4-1"></A>

<p style=' margin-bottom:5pt; margin-top:5pt;text-align:right;'><B><font SIZE=2>EXHIBIT 4.1</font></B></p>

<p style=' margin-bottom:0pt; margin-top:5pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><b><font size=2>THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN OFFERED AND SOLD IN AN &#147;OFFSHORE TRANSACTION&#148; IN RELIANCE UPON REGULATION S AS PROMULGATED BY THE SECURITIES AND EXCHANGE COMMISSION. ACCORDINGLY, THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE &#147;1933 ACT&#148;) AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH REGULATION S, PURSUANT TO REGISTRATION UNDER THE 1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE 1933 ACT, THE AVAILABILITY OF WHICH IS TO BE ESTABLISHED TO THE SATISFACTION OF THE COMPANY. THE SECURITIES REPRESENTED BY THIS CERTIFICATE CANNOT BE THE SUBJECT OF HEDGING TRANSACTIONS UNLESS SUCH TRANSACTIONS ARE CONDUCTED IN COMPLIANCE WITH THE 1933 ACT.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:right;'><font size=2>Certificate No.&nbsp;HT-1</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><B><font SIZE=2>ADSERO CORP.</font></B></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><font size=2>November 4, 2005</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><B><font SIZE=2>SUBSCRIPTION RECEIPT CERTIFICATE</font></B></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>THIS IS TO CERTIFY THAT, for value received, HBT Holdings GmbH (the &#147;</font><b><font size=2>Holder</font></b><font size=2>&#148;), is the registered holder of 2,400,000 subscription receipts (&#147;</font><b><font size=2>Subscription Receipts</font></b><font size=2>&#148;) of Adsero Corp. (the &#147;</font><b><font size=2>Corporation</font></b><font size=2>&#148;), each Subscription Receipt to be automatically exercised, without payment of any additional consideration, at the Automatic Exercise Date (as defined below) into, subject to adjustment, one unit of the Corporation (a &#147;</font><b><font size=2>Unit</font></b><font size=2>&#148;). Each Unit shall be comprised of one share of the common stock of the Corporation (a &#147;</font><b><font size=2>Unit Share</font></b><font size=2>&#148;) and one common share purchase warrant (a &#147;</font><b><font
size=2>Warrant</font></b><font size=2>&#148;). Each Warrant shall entitle the Holder to purchase, subject to adjustment, an additional share of common stock of the Corporation (a &#147;</font><b><font size=2>Warrant Share</font></b><font size=2>&#148;) at a price of U.S.$1.25 during the period ending at 5:00 p.m. (Toronto time) on May 3, 2008.  </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.58in;text-align:justify;'><font size=2> &#147;</font><b><font size=2>Automatic Exercise Date</font></b><font size=2>&#148; means January 31, 2006. &#147;</font><b><font size=2>Public</font></b><font size=2> </font><b><font size=2>Offering</font></b><font size=2>&#148; means the public offering of securities pursuant to the Registration Statement. &#147;</font><b><font size=2>Registration Statement</font></b><font size=2>&#148; means a registration statement under the United States </font><i><font size=2>Securities Act of 1933</font></i><font size=2>, as&nbsp;amended (the &#147;</font><b><font size=2>1933 Act</font></b><font size=2>&#148;) and applicable state securities laws registering the resale of the Unit Shares and the Warrants and the issuance of the Warrant Shares upon exercise of the Warrants. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>{00080488.5 / 0831-002}</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>1</font></p>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'>
<u><font size=2>Automatic Exercise</font></u></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>As at the Automatic Exercise Date, the Corporation shall be deemed to have issued to the Holder that number of Unit Shares and Warrants required pursuant to the terms and conditions of this certificate. Unless otherwise provided in the agreements relating to the Public Offering, the Corporation shall deliver to the Holder at the Holder&#146;s registered address certificates representing the Unit Shares and Warrants within three business days of the Automatic Exercise Date. Upon the automatic exercise of the Subscription Receipts, the Subscription Receipts shall be void and of no value or effect.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.56in;text-align:justify;'><font size=2>No fractional Unit Shares or Warrants shall be issued upon the automatic exercise of any Subscription Receipts. Where the Subscription Receipts would otherwise entitle the Holder to fractional Unit Shares or Warrants, that number of Unit Shares or Warrants shall be rounded up to the next whole number. </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><u><font size=2>Replacement of Certificates</font></u></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>Upon receipt of evidence satisfactory to the Corporation of the loss, theft, destruction or mutilation of this certificate and, if requested by the Corporation, upon delivery of a bond of indemnity satisfactory to the Corporation (or, in the case of mutilation, upon surrender of this certificate), the Corporation will issue to the Holder a replacement certificate containing the same terms and conditions as this certificate. The Holder shall pay the reasonable charges of the Corporation in connection with any such replacement.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><u><font size=2>Legends</font></u></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>The certificates representing the Unit Shares and Warrants issued upon automatic exercise of the Subscription Receipts may be subject to certain resale restrictions as evidenced by legends on the certificates, as set forth below.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>If, upon the automatic exercise of the Subscription Receipts, the resale of the Unit Shares and the Warrants by the holder has not been registered by an effective registration statement under the 1933 Act, then the certificates representing the Unit Shares and Warrants shall bear the following legend:</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:1in;text-align:justify;'><font size=2>THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN OFFERED AND SOLD IN AN &#147;OFFSHORE TRANSACTION&#148; IN RELIANCE UPON REGULATION S AS PROMULGATED BY THE SECURITIES AND EXCHANGE COMMISSION. ACCORDINGLY, THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE  NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE &#147;1933 ACT&#148;) AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH REGULATION S, PURSUANT TO REGISTRATION UNDER THE 1933 ACT, OR </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:1in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>{00080488.5 / 0831-002}</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>2</font></p>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:1in;text-align:justify;'><font SIZE=2>PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE 1933 ACT, THE AVAILABILITY OF WHICH IS TO BE ESTABLISHED TO THE SATISFACTION OF THE COMPANY. THE SECURITIES REPRESENTED BY THIS CERTIFICATE CANNOT BE THE SUBJECT OF HEDGING TRANSACTIONS UNLESS SUCH TRANSACTIONS ARE CONDUCTED IN COMPLIANCE WITH THE 1933 ACT;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:1in;text-align:justify;'><font size=2>provided that if the Unit Shares and Warrants are registered for resale pursuant to an effective registration statement under the 1933 Act subsequent to the issue of the Unit Shares and Warrants and the above resale restriction is therefore no longer applicable, then the Holder may exchange the certificates representing the Unit Shares and Warrants for certificates bearing no such legend.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(b)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>If, upon the automatic exercise of the Subscription Receipts, the resale of the Warrants by the holder and the issuance by the Corporation of the Warrant Shares upon exercise of the Warrants are not registered by an effective registration statement under the 1933 Act, then the certificates representing the Warrants shall bear the following legend:</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:0.98in;text-align:justify;'><font size=2>THIS WARRANT AND THE SECURITIES TO BE ISSUED UPON ITS EXERCISE HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE &#147;1933 ACT&#148;). THIS WARRANT MAY NOT BE EXERCISED IN THE UNITED STATES OR BY OR ON BEHALF OF ANY U.S. PERSON OR PERSON IN THE UNITED STATES UNLESS SUCH EXERCISE IS PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT AND APPLICABLE STATE SECURITIES LAWS OR AN EXEMPTION FROM REGISTRATION IS AVAILABLE, AND THE COMPANY SHALL HAVE RECEIVED AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO IT TO SUCH EFFECT.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><u><font size=2>Adjustments</font></u></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.56in;text-align:justify;'><font size=2>For the purposes of this section, &#147;</font><b><font size=2>Exchange Number</font></b><font size=2>&#148; at any time means that number of Units that a Holder of a Subscription Receipt is entitled to receive for each Subscription Receipt held upon automatic exercise of the Subscription Receipts in accordance with the terms and conditions of this certificate as such number may be adjusted pursuant to the following provisions and such number, as at the date hereof, is one Unit per Subscription Receipt.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.56in;text-align:justify;'><font size=2>For purposes of this section, the terms &#147;</font><b><font size=2>record date</font></b><font size=2>&#148; and &#147;</font><b><font size=2>effective date</font></b><font size=2>&#148; where used herein shall mean the close of business on the relevant date. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>{00080488.5 / 0831-002}</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>3</font></p>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.56in;text-align:justify;'><font size=2>For the purposes of this section, &#147;</font><b><font size=2>Current Market Price</font></b><font size=2>&#148; at any date, means the weighted average price per share at which the shares of common stock of the Corporation (the &#147;</font><b><font size=2>Shares</font></b><font size=2>&#148;) have traded on any over-the-counter market during the 20 consecutive trading days (on each of which at least 500 Shares are traded in board lots) ending the second trading day before such date and the weighted average price shall be determined by dividing the aggregate sale price of all Shares sold in board lots on the exchange or market, as the case may be, during the 20 consecutive trading days by the number of Shares sold, or if not traded on any market or exchange or bulletin board, as determined by the directors of the Corporation reasonably.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>The Exchange Number (or the number and kind of shares or securities to be received upon exercise in the case of paragraphs (e) and (f) below) shall be subject to adjustment from time to time in the events and in the manner provided as follows:</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="505" style='border-collapse:collapse'>
    <tr >
        <td width="48" nowrap valign=top style='padding:12.0pt 0in 0in 0in; '>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" nowrap valign=top style='padding:12.0pt 0in 0in 0in; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)</font></p> </td>
        <td width="409" nowrap valign=top style='padding:12.0pt 0in 0in 0in; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>If prior to the Automatic Exercise Date the Corporation shall</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(i)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>issue to all or substantially all the holders of the Shares, by way of a stock distribution, stock dividend or otherwise, Shares or securities convertible into Shares; or</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(ii)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>subdivide its outstanding Shares into a greater number of shares; or</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  align=left style='margin-left:0in;text-align:left; text-indent:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(iii)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>combine or consolidate its outstanding Shares into a smaller number of shares,</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="556" style='border-collapse:collapse'>
    <tr >
        <td width="96" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="460" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(any of these events being herein called a &#147;</font><b><font size=2>Share Reorganization</font></b><font size=2>&#148;),</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:justify;'><font size=2>the Exchange Number shall be adjusted effective immediately after the record date at which the holders of Shares are determined for the purposes of the Share Reorganization to a number that is the product of (1) the Exchange Number in effect on the record date and (2) a fraction:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(A)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the numerator of which shall be the number of Shares outstanding after giving effect to the Share Reorganization; and</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(B)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the denominator of which shall be the number of Shares outstanding on the record date before giving effect to the Share Reorganization.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:left;'><font size=2>For the purposes of determining the number of Shares outstanding at any particular time for the purpose of the foregoing calculation subsection, there shall be included that number of Shares which would have resulted from the conversion at that time of all outstanding convertible securities.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(b)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>If prior to the Automatic Exercise Date the Corporation shall issue rights, options or warrants to all or substantially all the holders of the Shares pursuant to which those holders are entitled to subscribe for, purchase or </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:1in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>{00080488.5 / 0831-002}</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>4</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:1in;text-align:justify;'><font size=2>otherwise acquire Shares or convertible securities within a period of 45 days from the date of issue thereof at a price, or at a conversion price, of less than 95% of the Current Market Price at the record date for such distribution (any such issuance being herein called a &#147;</font><b><font size=2>Rights</font></b><font size=2> </font><b><font size=2>Offering</font></b><font size=2>&#148; and Shares that may be acquired in exercise of the Rights Offering or upon conversion of the convertible securities offered by the Rights Offering being herein called the &#147;</font><b><font size=2>Offered Shares</font></b><font size=2>&#148;), the Exchange Number shall be adjusted effective immediately after the record date at which holders of Shares are determined for the purposes of the Rights Offering to an Exchange Number that is the product of (1) the Exchange Number in effect on the record
date and (2) a fraction:</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(iv)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the numerator of which shall be the sum of (i) the number of Shares outstanding on the record date plus (ii) the number of Offered Shares offered pursuant to the Rights Offering or the maximum number of Offered Shares into which the convertible securities so offered pursuant to the Rights Offering may be converted, as the case may be; and</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(v)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the denominator of which shall be the sum of:</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(A)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the number of Shares outstanding on the record date for the Rights Offering; and</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(B)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the number arrived at when (A) either the product of (1) the number of Offered Shares so offered and (2) the price at which those Shares are offered, or the product of (3) the conversion price thereof and (4) the maximum number of Offered Shares for or into which the convertible securities so offered pursuant to the Rights Offering may be converted, as the case may be, is divided by (B) the Current Market Price of the Shares on the record date.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:1in;text-align:justify;'><font size=2>Any Offered Shares owned by or held for the account of the Corporation shall be deemed not to be outstanding for the purpose of any computation; if all the rights, options or warrants are not so issued or if all rights, </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>{00080488.5 / 0831-002}</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>5</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:1in;text-align:justify;'>
<font size=2>options or warrants are not exercised prior to the expiration thereof, the Exchange Number shall be readjusted to the Exchange Number in effect immediately prior to the record date and the Exchange Number shall be further adjusted based upon the number of Offered Shares (or convertible securities into Offered Shares) actually delivered upon the exercise of the rights, options or warrants, as the case may be, but subject to any other adjustment required hereunder by reason of any event arising after that record date.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(c)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>If prior to the Automatic Exercise Date the Corporation shall issue or distribute to all or substantially all the holders of the Shares (i) shares of any class other than Shares, or (ii) rights, options or warrants other than rights, options or warrants exercisable within 45 days from the date of issue thereof at a price, or at a conversion price, of at least 95% of the Current Market Price at the record date for such distribution, or (iii) evidences of indebtedness, or (iv) any other assets and that issuance or distribution does not constitute a Share Reorganization or a Rights Offering (any of those events being herein called a &#147;</font><b><font size=2>Special Distribution</font></b><font size=2>&#148;), the Exchange Number shall be adjusted effective immediately after the record date at which the holders of Shares are
determined for purposes of the Special Distribution to an Exchange Number that is the product of (1) the Exchange Number in effect on the record date and (2) a fraction:</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(i)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the numerator of which shall be the product of (i) the sum of the number of Shares outstanding on the record date plus the number of Shares which the Holders of Subscription Receipts would be entitled to receive upon automatic exercise of all their Subscription Receipts if they were exercised on the record date and (ii) the Current Market Price thereof on that date; and</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(ii)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the denominator of which shall be:</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(A)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the product of (A) the sum of the number of Shares outstanding on the record date plus the number of Shares which the Holders of Subscription Receipts would be entitled to receive upon automatic exercise of all their Subscription Receipts if they were exercised on the record date and (B) the Current Market Price thereof on that date;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="187" style='border-collapse:collapse'>
    <tr >
        <td width="144" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="43" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>less</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(B)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the aggregate fair market value, as determined by the directors, whose determination shall, absent manifest error, be conclusive, of the shares, rights, options, warrants, evidences of indebtedness or other assets issued or distributed in the Special Distribution.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>{00080488.5 / 0831-002}</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>6</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:1in;text-align:justify;'>
<font size=2>Any Shares owned by or held for the account of the Corporation shall be deemed not to be outstanding for the purpose of any such computation. To the extent that the distribution of shares, rights, options, warrants, evidences of indebtedness or assets if not so made or to the extent that any rights, options or warrants so distributed are not exercised, the Exchange Number shall be readjusted to the Exchange Number that would then be in effect based upon the shares, rights, options, warrants, evidences of indebtedness or assets actually distributed or based upon the number of Shares or convertible securities actually delivered upon the exercise of the rights, options or warrants, as the case may be, but subject to any other adjustment required hereunder by reason of any event arising after the record date.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(d)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>If prior to the Automatic Exercise Date there is a reorganization of the Corporation not otherwise provided for in paragraph (b) above, or a consolidation or merger or amalgamation of the Corporation with or into another body corporate including a transaction whereby all or substantially all of the Corporation&#146;s undertaking and assets become the property of any other corporation (any such event being herein called a &#147;</font><b><font size=2>Capital Reorganization</font></b><font size=2>&#148;) any holder of a Subscription Receipt shall be entitled to receive and shall accept, upon the exercise of his or her right at any time after the effective date of the Capital Reorganization, in lieu of the number of securities to which the Holder was theretofore entitled upon automatic exercise of the Subscription Receipt, the
aggregate number of securities or property of the Corporation, or the continuing, successor or purchasing person, as the case may be, under the Capital Reorganization that the Holder would have been entitled to receive as a result of the Capital Reorganization if, on the effective date thereof, the Holder had been the holder of the number of securities to which immediately before the transaction the Holder was entitled upon automatic exercise of the Subscription Receipts. No Capital Reorganization shall be carried into effect unless all necessary steps shall have been taken so that the Holders of Subscription Receipts shall thereafter be entitled to receive the number of securities or property of the Corporation or of the continuing, successor or purchasing person, as the case may be, under the Capital Reorganization, subject to adjustment thereafter in accordance with provisions the same, as nearly as may be possible, as those contained in this section and under &#147;Adjustment
Rules&#148; below.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(e)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>If the Corporation shall reclassify or otherwise change the outstanding Shares, the exercise right shall be adjusted effective immediately upon the reclassification becoming effective so that Holders of Subscription Receipts shall be entitled to receive that number of Units as they would have received had the Subscription Receipts been automatically exercised immediately prior to the effective date, subject to adjustment thereafter in accordance with provisions the same, as nearly as may be possible, as those contained in this section and under &#147;Adjustment Rules&#148; below.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>{00080488.5 / 0831-002}</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>7</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><u><font size=2>Adjustment Rules</font></u></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.5in;text-align:justify;'><font size=2>The following rules and procedures shall be applicable to adjustments made pursuant to foregoing section:</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The adjustments and readjustments provided for in this certificate are cumulative and, subject to paragraph (b) below, shall apply (without duplication) to successive issues, subdivisions, combinations, consolidations, distributions and any other events that require adjustment of the Exchange Number or the number or kind of securities purchasable hereunder.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(b)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>No adjustment in the Exchange Number shall be required unless the adjustment would result in a change of at least 1% in the Exchange Number then in effect, provided, however, that any adjustments that, except for the provisions of this subsection would otherwise have been required to be made, shall be carried forward and taken into account in any subsequent adjustment.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(c)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>No adjustment in the Exchange Number shall be made in respect of any event described in paragraph (b)(i) and (c) and (d) above under &#147;Adjustments&#148; if the Holders of the Subscription Receipts are entitled to participate in the event on the same terms, </font><i><font size=2>mutatis mutandis</font></i><font size=2>, as if their Subscription Receipts had been automatically exercised immediately prior to the effective date or record date of the event.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(d)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>No adjustment in the Exchange Number shall be made pursuant to this certificate in respect of the issue of Shares pursuant to:</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(i)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>this certificate; or</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(ii)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the issuance of Shares pursuant to the exercise of options granted pursuant to the Corporation&#146;s stock option plans or pursuant to the exercise of rights under currently outstanding warrants to acquire Shares,</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:1in;text-align:justify;'><font size=2>and any such issue shall be deemed not to be a Share Reorganization, a Rights Offering or a Special Distribution.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(e)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>If a dispute shall at any time arise with respect to adjustments of the Exchange Number, the dispute shall be conclusively determined by the Corporation&#146;s auditors or, if they are unable or unwilling to act, by such firm of independent chartered accountants as may be selected by the directors and any such determination shall, absent manifest error, be binding upon the Corporation and all Holders of Subscription Receipts.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(f)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>If and whenever at any time prior to the Automatic Exercise Date, the Corporation shall take any action affecting or relating to the Shares, other than any action described in this section, which in the opinion of the </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>{00080488.5 / 0831-002}</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>8</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:1in;text-align:justify;'>
<font size=2>directors of the Corporation would prejudicially affect the rights of any holders of Subscription Receipts, the Exchange Number will be adjusted by the directors of the Corporation in such manner, if any, and at such time, as the directors of the Corporation, may in their sole discretion, subject to the approval of any stock exchange on which the Shares are listed and posted for trading, reasonably determine to be equitable in the circumstances to such holders.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(g)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>As a condition precedent to the taking of any action which would require an adjustment in any of the rights under the Subscription Receipts, the Corporation will take any action which, in the opinion of counsel to the Corporation , may be necessary in order that the Corporation, or any successor to the Corporation or successor to the undertaking or assets of the Corporation will be obligated to and may validly and legally issue all the Units which the holders of the Subscription Receipts would be entitled to receive thereafter and to exercise such Subscription Receipts in accordance with the provisions hereof.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.5in;text-align:justify;'><font size=2>In any case where the application of the adjustment rules  results in an increase of the Exchange Number taking effect immediately after the record date for or occurrence of a specific event, if the Subscription Receipts are automatically exercised after that record date or occurrence and prior to completion of the event or of the period for which a calculation is required to be made, the Corporation may postpone the issuance to the Holder of the Subscription Receipts of the Units to which the Holder is entitled by reason of the increase of the Exchange Number but the Units shall be so issued and delivered to that Holder upon completion of that event or period, with the number of those Units calculated on the basis of the Exchange Number on the Automatic Exercise Date adjusted for completion of that event or period, and the Corporation shall forthwith after the Automatic Exercise Date
deliver to the person or persons in whose name or names the additional Units are to be issued an appropriate instrument evidencing the person&#146;s or persons&#146; right to receive the Units.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.56in;text-align:justify;'><font size=2>Promptly upon the occurrence of the earlier of the effective date of or the record date for any event referred to above that requires an adjustment in the Exchange Number, the Corporation shall give notice to the Holders of Subscription Receipts of the particulars of the event and, if determinable, the adjustment.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><u><font size=2>Covenants</font></u></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>The Corporation covenants with the Holder of the Subscription Receipts evidenced by this certificate as follows:</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The Corporation will at all times maintain its existence and will carry on and conduct its business in a prudent manner in accordance with industry standards and good business practice and will keep or cause to be kept proper books of account in accordance with applicable law.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>{00080488.5 / 0831-002}</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>9</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(b)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The Corporation will reserve and keep available a sufficient number of Shares and Warrants for issuance upon the exercise of Subscription Receipts issued by the Corporation and a sufficient number of Warrant Shares for issuance upon exercise of the Warrants.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(c)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The Corporation shall use its commercially reasonable best efforts to file the Registration Statement on or before March 31, 2006 and shall use its commercially reasonable best efforts to cause the Registration Statement to be declared effective within 90 days of the initial filing date thereof, and thereafter shall cause the Registration Statement to remain effective and available for use by the holder until the later of two years from the date of this Subscription Receipt and a date which is 10 days after all of the Warrants have been exercised or have expired.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(d)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>All Shares that shall be issued by the Corporation upon exercise of the rights provided for herein shall be issued as fully paid and non-assessable Shares.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><u><font size=2>Amendments and Modifications</font></u></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>The Corporation may make certain amendments or modifications to this certificate without obtaining the consent of the Holder only to the extent that such amendments or modifications are intended to correct ambiguities or errors in this certificate or are deemed necessary by the Corporation and the Agent under applicable securities and other laws in order to protect the rights of the Holder hereunder and provided that such amendments or modifications do not prejudice in any way the rights of the Holder hereunder. In the event of such amendment or modification, the Corporation shall provide a replacement Subscription Receipt certificate to the Holder along with an explanation of the reasons for the change.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><u><font size=2>General</font></u></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>The laws of the Province of Ontario and the federal laws of Canada applicable therein shall govern the Subscription Receipts.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>The holding of the Subscription Receipts evidenced by this certificate shall not constitute the Holder hereof a shareholder of the Corporation or entitle the Holder to any right or interest in respect thereof except as expressly provided in this certificate. </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>Time shall be of the essence hereof.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>This certificate shall enure to the benefit of and shall be binding upon the Holder and the Corporation and their respective successors and assigns, provided that no such assignment or transfer of these Subscription Receipts shall be effective unless the transferee shall have acknowledged and agreed to be bound by the restrictions on exercise of the Warrants and on transfer of the Unit Shares, Warrants and Warrant Shares in writing in form and substance satisfactory to the Corporation.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>This certificate shall not be valid for any purpose whatever unless and until it has been signed by or on behalf of the Corporation by any one director or officer of the </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>{00080488.5 / 0831-002}</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>10</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><font size=2>Corporation. The signature of such director or officer may be mechanically reproduced by facsimile and a certificate bearing a facsimile signature shall be binding upon the Corporation as if it had been manually signed by the director or officer. </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:1in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><font size=2>[THE REMAINDER OF THIS PAGE HAS BEEN LEFT INTENTIONALLY BLANK]</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>{00080488.5 / 0831-002}</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>11</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:1in;text-align:justify;'>
<font size=2>IN WITNESS WHEREOF the Corporation has caused this certificate to be signed by an authorized officer.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:1in;text-align:justify;'><font size=2>DATED as of the 4<sup>th</sup> day of November, 2005.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:left;'><B><font SIZE=2>ADSERO CORP.</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:left;'><font size=2>Per:&nbsp;<u>/s/ Yvon L&#233;veill&#233;</u></font></p>


<table border="0" cellspacing=0 cellpadding=0 width="539" style='border-collapse:collapse'>
    <tr >
        <td width="320" nowrap valign=top >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=top >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Name: Yvon L&#233;veill&#233;</font></p> </td>
        <td  width="61">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="320" nowrap valign=top >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="45" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Title: </font></p> </td>
        <td  nowrap colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Chief Executive Officer</font></p> </td> </tr>
    <tr>
        <td width="320" ></td>

        <td width="45" ></td>

        <td width="112" ></td>

        <td width="61" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:5pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>{00080488.5 / 0831-002}</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>12</font></p>

<HR noshade align="center" width="100%" size="2">

</div>
</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4
<SEQUENCE>3
<FILENAME>ex_4-2.htm
<DESCRIPTION>FORM OF WARRANT FOR 11-04-05
<TEXT>
<HTML>
<HEAD>
<TITLE> </TITLE>
</HEAD>
<BODY bgcolor="#ffffff" style='font-family:"Times New Roman"'>

<div style='width:600;'>

<A NAME="ex_4-2"></A>

<p style=' margin-bottom:5pt; margin-top:5pt;text-align:right;'><B><font SIZE=2>EXHIBIT 4.2</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><B><font SIZE=2>THE WARRANT REPRESENTED BY THIS WARRANT CERTIFICATE IS VOID AND OF NO EFFECT IF NOT EXERCISED PRIOR TO 5:00 P.M. (TORONTO TIME) ON MAY 3, 2008.</font></B></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><b><font size=2>THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN OFFERED AND SOLD IN AN &#147;OFFSHORE TRANSACTION&#148; IN RELIANCE UPON REGULATION S AS PROMULGATED BY THE SECURITIES AND EXCHANGE COMMISSION. ACCORDINGLY, THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE &#147;1933 ACT&#148;) AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH REGULATION S, PURSUANT TO REGISTRATION UNDER THE 1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE 1933 ACT, THE AVAILABILITY OF WHICH IS TO BE ESTABLISHED TO THE SATISFACTION OF THE COMPANY. THE SECURITIES REPRESENTED BY THIS CERTIFICATE CANNOT BE THE SUBJECT OF HEDGING TRANSACTIONS UNLESS SUCH TRANSACTIONS ARE CONDUCTED IN COMPLIANCE WITH THE 1933 ACT.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><b><font size=2>THIS WARRANT AND THE SECURITIES TO BE ISSUED UPON ITS EXERCISE HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE &#147;1933 ACT&#148;). THIS WARRANT MAY NOT BE EXERCISED IN THE UNITED STATES OR BY OR ON BEHALF OF ANY U.S. PERSON OR PERSON IN THE UNITED STATES UNLESS SUCH EXERCISE IS PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT AND APPLICABLE STATE SECURITIES LAWS OR AN EXEMPTION FROM REGISTRATION IS AVAILABLE, AND THE COMPANY SHALL HAVE RECEIVED AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO IT TO SUCH EFFECT.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:right;'><b><font size=2>Certificate No.</font></b><font size=2>&nbsp;</font><B><font SIZE=2>HT-1</font></B></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><B><font SIZE=2>ADSERO CORP.</font></B></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font size=2>November 4, 2005</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><B><font SIZE=2>COMMON SHARE PURCHASE WARRANT CERTIFICATE</font></B></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>THIS IS TO CERTIFY THAT, for value received, HBT Holdings GmbH (the &#147;Holder&#148;), is the registered holder of 2,400,000 common share purchase warrants (each, a &#147;Warrant&#148;) of Adsero Corp. (the &#147;Corporation&#148;). Each Warrant shall entitle the Holder to purchase, subject to any adjustment as described herein, one share of common stock of the Corporation (a &#147;Warrant Share&#148;) at a price of U.S.$1.25, subject to any adjustment as described herein (the &#147;Exercise </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="312" style='border-collapse:collapse'>
    <tr >
        <td width="284" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>{00080488.5 / 0831-002}</font></p> </td>
        <td width="28" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1</font></p> </td> </tr></table>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><font size=2>Price&#148;) during the period ending at 5:00 p.m. (Toronto time) on May 3, 2008 (the &#147;Time of Expiry&#148;).  </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><u><font size=2>Exercise</font></u></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>The rights evidenced by this certificate may be exercised by the Holder in whole or in part and in accordance with the provisions hereof by delivery of the election to purchase substantially in the form attached as Schedule &#147;A&#148;, properly completed and executed, together with payment of the Exercise Price for the number of Warrant Shares specified in the election to purchase form to the Corporation, at 2101 Nobel Street, Sainte-Julie, Quebec J3E 1Z8 or such other address of which the Holder may be notified in writing by the Corporation (the &#147;Corporation Office&#148;). In the event that the rights evidenced by this certificate are exercised in part, the Corporation shall, contemporaneously with the issuance of the Warrant Shares issuable on the exercise of the Warrants so exercised, issue to the Holder a certificate on identical terms in respect of that number of Warrants
in respect of which the Holder has not exercised the rights evidenced by this certificate.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>The Corporation shall, on the business day following the date it receives a duly executed election to purchase form along with the Warrant certificate and the Exercise Price for the number of Warrant Shares specified in the election to purchase form (the &#147;Exercise Date&#148;), issue that number of Warrant Shares, dated the Exercise Date, specified in the election to purchase form, as fully paid and non-assessable shares of common stock of the Corporation.</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>The Corporation shall deliver to the Holder at the Holder&#146;s registered address specified in the election to purchase form certificates representing the Warrant Shares within three business days of the Exercise Date. </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.56in;text-align:justify;'><font size=2>No fractional Warrant Shares shall be issued upon the exercise of any Warrants. Where the Warrants would otherwise entitle the Holder to fractional Warrant Shares, that number of Warrant Shares shall be rounded up to the next whole number. </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><u><font size=2>Cashless Exercise</font></u></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>In lieu of paying the Exercise Price upon exercise of this Warrant, the Holder may elect to exercise this Warrant on a cashless basis in which case the number of Warrant Shares issued to the Holder upon exercise of the Warrant shall be reduced by the number of Warrant Shares with an aggregate market price as of the date of exercise equal to the aggregate Exercise Price for the total number of Warrant Shares which the Holder has elected to exercise pursuant to this Warrant, as specified in the Exercise Notice.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><u><font size=2>Replacement of Certificates</font></u></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>Upon receipt of evidence satisfactory to the Corporation of the loss, theft, destruction or mutilation of this certificate and, if requested by the Corporation, upon delivery of a bond of indemnity satisfactory to the Corporation (or, in the case of mutilation, upon surrender of this certificate), the Corporation will issue to the Holder a replacement certificate containing the same terms and conditions as this certificate. The Holder shall pay the reasonable charges of the Corporation in connection with any such replacement.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="312" style='border-collapse:collapse'>
    <tr >
        <td width="284" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>{00080488.5 / 0831-002}</font></p> </td>
        <td width="28" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2</font></p> </td> </tr></table>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><u><font size=2>Transfer of Warrants</font></u></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>The Warrants represented by this certificate are transferable, subject to the resale restrictions described herein, at the Corporation Office, upon completion of the assignment form attached hereto as Schedule &#147;B&#148;.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><u><font size=2>Legends</font></u></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>The certificates representing the Warrant Shares issued upon the exercise of the Warrants may be subject to certain resale restrictions as evidenced by legends on the certificates, as set forth below.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(e)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>If, upon the exercise of the Warrants, the issuance of the Warrant Shares has not been registered by an effective registration statement (a &#147;Registration Statement&#148;) under the United States </font><i><font size=2>Securities Act of 1933</font></i><font size=2>, as&nbsp;amended (the &#147;1933 Act&#148;) and applicable state securities laws, then the certificates representing the Warrant Shares shall bear the following legend:</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:1in;text-align:justify;'><font size=2>THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN OFFERED AND SOLD IN AN &#147;OFFSHORE TRANSACTION&#148; IN RELIANCE UPON REGULATION S AS PROMULGATED BY THE SECURITIES AND EXCHANGE COMMISSION. ACCORDINGLY, THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE &#147;1933 ACT&#148;) AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH REGULATION S, PURSUANT TO REGISTRATION UNDER THE 1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE 1933 ACT, THE AVAILABILITY OF WHICH IS TO BE ESTABLISHED TO THE SATISFACTION OF THE COMPANY. THE SECURITIES REPRESENTED BY THIS CERTIFICATE CANNOT BE THE SUBJECT OF HEDGING TRANSACTIONS UNLESS SUCH TRANSACTIONS ARE CONDUCTED IN COMPLIANCE WITH THE 1933 ACT;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:1in;text-align:justify;'><font size=2>provided that if the Warrant Shares are registered for resale pursuant to a Registration Statement subsequent to the issue of the Warrant Shares and the above resale restriction is therefore no longer applicable, then the Holder may exchange the certificates representing the Warrant Shares for certificates bearing no such legend.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><u><font size=2>Adjustments</font></u></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.56in;text-align:justify;'><font size=2>For purposes of this section, the terms &#147;record date&#148; and &#147;effective date&#148; where used herein shall mean the close of business on the relevant date. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="312" style='border-collapse:collapse'>
    <tr >
        <td width="284" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>{00080488.5 / 0831-002}</font></p> </td>
        <td width="28" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3</font></p> </td> </tr></table>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.56in;text-align:justify;'><font size=2>For the purposes of this section, &#147;Current Market Price&#148; at any date, means the weighted average price per share at which the shares of common stock of the Corporation (the &#147;Shares&#148;) have traded on any over-the-counter market during the 20 consecutive trading days (on each of which at least 500 Shares are traded in board lots) ending the second trading day before such date and the weighted average price shall be determined by dividing the aggregate sale price of all Shares sold in board lots on the exchange or market, as the case may be, during the 20 consecutive trading days by the number of Shares sold, or if not traded on any market or exchange or bulletin board, as determined by the directors of the Corporation reasonably.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>The Exercise Price and the number and type of securities issuable upon exercise of the Warrants shall be subject to adjustment from time to time in the events and in the manner provided as follows:</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(f)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>If prior to the Time of Expiry the Corporation shall</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(i)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>issue to all or substantially all the holders of the Shares, by way of a stock distribution, stock dividend or otherwise, Shares or securities convertible into Shares; or</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(ii)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>subdivide its outstanding Shares into a greater number of shares; or</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(iii)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>combine or consolidate its outstanding Shares into a smaller number of shares,</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="545" style='border-collapse:collapse'>
    <tr >
        <td width="96" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="449" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(any of these events being herein called a &#147;Share Reorganization&#148;),</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:justify;'><font size=2>the Exercise Price shall be adjusted effective immediately after the record date at which the holders of Shares are determined for the purposes of the Share Reorganization to a price that is determined by multiplying the Exercise Price in effect on the record date by a fraction:</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(A)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the numerator of which shall be the number of Shares outstanding on the record date before giving effect to the Share Reorganization; and</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(B)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the denominator of which shall be the number of Shares outstanding after giving effect to the Share Reorganization.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:justify;'><font size=2>For the purposes of determining the number of Shares outstanding at any particular time for the purpose of the foregoing calculation subsection, there shall be included that number of Shares which would have resulted from the conversion at that time of all outstanding convertible securities.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(g)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>If prior to the Time of Expiry the Corporation shall issue rights, options or warrants to all or substantially all the holders of the Shares pursuant to which those holders are entitled to subscribe for, purchase or otherwise acquire Shares or convertible securities within a period of 45 days from the date of issue thereof at a price, or at a conversion price, of less than 95% of the Current Market Price at the </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="312" style='border-collapse:collapse'>
    <tr >
        <td width="284" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>{00080488.5 / 0831-002}</font></p> </td>
        <td width="28" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4</font></p> </td> </tr></table>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:1in;text-align:justify;'>
<font size=2>record date for such distribution (any such issuance being herein called a &#147;Rights Offering&#148; and Shares that may be acquired in exercise of the Rights Offering or upon conversion of the convertible securities offered by the Rights Offering being herein called the &#147;Offered Shares&#148;), the Exercise Price shall be adjusted effective immediately after the record date at which holders of Shares are determined for the purposes of the Rights Offering to a price that is determined by multiplying the Exercise Price in effect on the record date by a fraction:</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(i)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the numerator of which shall be the sum of:</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(A)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the number of Shares outstanding on the record date for the Rights Offering; and</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(B)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the number arrived at when (A) either the product of (1) the number of Offered Shares so offered and (2) the price at which those Shares are offered, or the product of (3) the conversion price thereof and (4) the maximum number of Offered Shares for or into which the convertible securities so offered pursuant to the Rights Offering may be converted, as the case may be, is divided by (B) the Current Market Price of the Shares on the record date; and</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(ii)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the denominator of which shall be the sum of (i) the number of Shares outstanding on the record date plus (ii) the number of Offered Shares offered pursuant to the Rights Offering or the maximum number of Offered Shares into which the convertible securities so offered pursuant to the Rights Offering may be converted, as the case may be.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:1in;text-align:justify;'><font size=2>Any Offered Shares owned by or held for the account of the Corporation shall be deemed not to be outstanding for the purpose of any computation; if all the rights, options or warrants are not so issued or if all rights, options or warrants are not exercised prior to the expiration thereof, the Exercise Price shall be readjusted to the Exercise Price in effect immediately prior to the record date and the Exercise Price shall be further adjusted based upon the number of Offered Shares (or convertible securities into Offered Shares) actually delivered upon the exercise of the rights, options or warrants, as the case may be, but subject to any other adjustment required hereunder by reason of any event arising after that record date.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(h)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>If prior to the Time of Expiry the Corporation shall issue or distribute to all or substantially all the holders of the Shares (i) shares of any class other than Shares, or (ii) rights, options or warrants other than rights, options or warrants exercisable within 45 days from the date of issue thereof at a price, or at a conversion price, of at least 95% of the Current Market Price at the record date for such distribution, or (iii) evidences of indebtedness, or (iv) any other assets and that issuance or distribution does not constitute a Share Reorganization or a Rights Offering (any of those events being herein called a &#147;Special Distribution&#148;), the </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="312" style='border-collapse:collapse'>
    <tr >
        <td width="284" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>{00080488.5 / 0831-002}</font></p> </td>
        <td width="28" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>5</font></p> </td> </tr></table>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:1in;text-align:justify;'>
<font size=2>Exercise Price shall be adjusted effective immediately after the record date at which the holders of Shares are determined for purposes of the Special Distribution to a price determined by multiplying the Exercise Price in effect on the record date by a fraction:</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(i)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the numerator of which shall be:</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(A)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the product of (A) the sum of the number of Shares outstanding on the record date plus the number of Shares which the Holders of Warrants would be entitled to receive upon exercise of their Warrants if they were exercised on the record date and (B) the Current Market Price thereof on that date;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="187" style='border-collapse:collapse'>
    <tr >
        <td width="144" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="43" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>less</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(B)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the aggregate fair market value, as determined by the directors, whose determination shall, absent manifest error, be conclusive, of the shares, rights, options, warrants, evidences of indebtedness or other assets issued or distributed in the Special Distribution; and</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(ii)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the denominator of which shall be the product of (i) the sum of the number of Shares outstanding on the record date plus the number of Shares which the Holders of Warrants would be entitled to receive upon exercise of all their Warrants if they were exercised on the record date and (ii) the Current Market Price thereof on that date. </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:1in;text-align:justify;'><font size=2>Any Shares owned by or held for the account of the Corporation shall be deemed not to be outstanding for the purpose of any such computation. To the extent that the distribution of shares, rights, options, warrants, evidences of indebtedness or assets if not so made or to the extent that any rights, options or warrants so distributed are not exercised, the Exercise Price shall be readjusted to the Exercise Price that would then be in effect based upon the shares, rights, options, warrants, evidences of indebtedness or assets actually distributed or based upon the number of Shares or convertible securities actually delivered upon the exercise of the rights, options or warrants, as the case may be, but subject to any other adjustment required hereunder by reason of any event arising after the record date.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(i)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>If prior to the Time of Expiry there is a reorganization of the Corporation not otherwise provided for in paragraph (b) above, or a consolidation or merger or amalgamation of the Corporation with or into another body corporate including a transaction whereby all or substantially all of the Corporation&#146;s undertaking and assets become the property of any other corporation (any such event being herein called a &#147;Capital Reorganization&#148;) any holder of a Warrant shall be entitled to receive and shall accept, upon the exercise of his or her right at any time after the effective date of the Capital Reorganization, in lieu of the number of securities to which the Holder was theretofore entitled upon exercise of the Warrant, the </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="312" style='border-collapse:collapse'>
    <tr >
        <td width="284" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>{00080488.5 / 0831-002}</font></p> </td>
        <td width="28" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>6</font></p> </td> </tr></table>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:1in;text-align:justify;'>
<font size=2>aggregate number of securities or property of the Corporation, or the continuing, successor or purchasing person, as the case may be, under the Capital Reorganization that the Holder would have been entitled to receive as a result of the Capital Reorganization if, on the effective date thereof, the Holder had been the holder of the number of securities to which immediately before the transaction the Holder was entitled upon exercise of the Warrants. No Capital Reorganization shall be carried into effect unless all necessary steps shall have been taken so that the Holders of Warrants shall thereafter be entitled to receive the number of securities or property of the Corporation or of the continuing, successor or purchasing person, as the case may be, under the Capital Reorganization, subject to adjustment thereafter in accordance with provisions the same, as nearly as may be possible, as
those contained in this section and under &#147;Adjustment Rules&#148; below.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(j)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>If the Corporation shall reclassify or otherwise change the outstanding Shares, the exercise right shall be adjusted effective immediately upon the reclassification becoming effective so that Holders of Warrants shall be entitled to receive that number of Warrant Shares as they would have received had the Warrants been exercised immediately prior to the effective date, subject to adjustment thereafter in accordance with provisions the same, as nearly as may be possible, as those contained in this section and under &#147;Adjustment Rules&#148; below.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><u><font size=2>Adjustment Rules</font></u></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.5in;text-align:justify;'><font size=2>The following rules and procedures shall be applicable to adjustments made pursuant to foregoing section:</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(k)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The adjustments and readjustments provided for in this certificate are cumulative and, subject to paragraph (b) below, shall apply (without duplication) to successive issues, subdivisions, combinations, consolidations, distributions and any other events that require adjustment of the Exercise Price or the number or kind of securities purchasable hereunder.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(l)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>No adjustment in the Exercise Price shall be required unless the adjustment would result in a change of at least 1% in the Exercise Price then in effect, provided, however, that any adjustments that, except for the provisions of this subsection would otherwise have been required to be made, shall be carried forward and taken into account in any subsequent adjustment.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(m)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>On any adjustment to the Exercise Price pursuant to paragraphs (b) and (c) under &#147;Adjustments&#148; above, including any readjustment, the number of Warrant Shares issuable on exercise of a Warrant (the &#147;Exchange Number&#148;) will be adjusted, effective at the same time at the same time as the adjustment of the Exercise Price by multiplying the number of Warrant Shares so issuable immediately before the adjustment by a fraction which is the reciprocal of the fraction used in the adjustment of the Exercise Price. </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="312" style='border-collapse:collapse'>
    <tr >
        <td width="284" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>{00080488.5 / 0831-002}</font></p> </td>
        <td width="28" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>7</font></p> </td> </tr></table>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(n)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>No adjustment in the Exercise Price shall be made in respect of any event described in paragraph (b)(i) and (c) and (d) above under &#147;Adjustments&#148; if the Holders of the Warrants are entitled to participate in the event on the same terms, </font><i><font size=2>mutatis mutandis</font></i><font size=2>, as if their Warrants had been exercised immediately prior to the effective date or record date of the event.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(o)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>No adjustment in the Exercise Price shall be made pursuant to this certificate in respect of the issue of Shares pursuant to:</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(i)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>this certificate; or</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(ii)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the issuance of Shares pursuant to the exercise of options granted pursuant to the Corporation&#146;s stock option plans or pursuant to the exercise of rights under currently outstanding warrants to acquire Shares,</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:1in;text-align:justify;'><font size=2>and any such issue shall be deemed not to be a Share Reorganization, a Rights Offering or a Special Distribution.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(p)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>If a dispute shall at any time arise with respect to adjustments of the Exercise Price, the dispute shall be conclusively determined by the Corporation&#146;s auditors or, if they are unable or unwilling to act, by such firm of independent chartered accountants as may be selected by the directors and any such determination shall, absent manifest error, be binding upon the Corporation and all Holders of Warrants.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(q)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>If and whenever at any time prior to the Time of Expiry, the Corporation shall take any action affecting or relating to the Shares, other than any action described in this section, which in the opinion of the directors of the Corporation would prejudicially affect the rights of any holders of Warrants, the Exercise Price will be adjusted by the directors of the Corporation in such manner, if any, and at such time, as the directors of the Corporation, may in their sole discretion, subject to the approval of any stock exchange on which the Shares are listed and posted for trading, reasonably determine to be equitable in the circumstances to such holders.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(r)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>As a condition precedent to the taking of any action which would require an adjustment in any of the rights under the Warrants, the Corporation will take any action which, in the opinion of counsel to the Corporation , may be necessary in order that the Corporation, or any successor to the Corporation or successor to the undertaking or assets of the Corporation will be obligated to and may validly and legally issue all the Warrant Shares which the holders of the Warrants would be entitled to receive thereafter and to exercise such Warrants in accordance with the provisions hereof.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.5in;text-align:justify;'><font size=2>In any case where the application of the adjustment rules  results in an increase in the number of Warrant Shares issuable upon exercise of the Warrants taking effect immediately after the record date for or occurrence of a specific event, if the Warrants are exercised after that record date or occurrence and prior to completion of the event or of the period for which a </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="312" style='border-collapse:collapse'>
    <tr >
        <td width="284" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>{00080488.5 / 0831-002}</font></p> </td>
        <td width="28" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>8</font></p> </td> </tr></table>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'>
<font size=2>calculation is required to be made, the Corporation may postpone the issuance to the Holder of the Warrants of the additional Warrant Shares to which the Holder is entitled by reason of the event but the Warrant Shares shall be so issued and delivered to that Holder upon completion of that event or period, with the number of those Warrant Shares calculated on the basis of the Exchange Number on the Exercise Date adjusted for completion of that event or period, and the Corporation shall forthwith after the Exercise Date deliver to the person or persons in whose name or names the additional Warrant Shares are to be issued an appropriate instrument evidencing the person&#146;s or persons&#146; right to receive the Warrant Shares.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.56in;text-align:justify;'><font size=2>Promptly upon the occurrence of the earlier of the effective date of or the record date for any event referred to above that requires an adjustment in the Exercise Price and/or Exchange Number, the Corporation shall give notice to the Holders of Warrants of the particulars of the event and, if determinable, the adjustment.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><u><font size=2>Covenants</font></u></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>The Corporation covenants with the Holder of the Warrants evidenced by this certificate as follows:</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The Corporation will at all times maintain its existence and will carry on and conduct its business in a prudent manner in accordance with industry standards and good business practice and will keep or cause to be kept proper books of account in accordance with applicable law.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(b)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The Corporation will reserve and keep available a sufficient number of Warrant Shares for issuance upon the exercise of Warrants issued by the Corporation.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(c)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The Corporation agrees to use its commercially reasonable best efforts to file a Registration Statement on or before March 31, 2006 and use its commercially reasonable best efforts to cause the Registration Statement to become effective within 90 days of the initial filing thereof in order to register the resale of the Unit Shares and Warrants underlying the Subscription Receipts and the issuance of the Warrant Shares upon exercise of such Warrants. The Corporation further agrees that it shall cause such registration statement to remain effective and available for use by the holder until the later of two years from the date of this Warrant Certificate and a date which is 10 days after all of the Warrants have been exercised or have expired. Capitalized terms used in this paragraph but not otherwise defined in this certificate
shall have the meanings ascribed to such terms in the Subscription Agreement. All registration obligations and related undertakings assumed by the Corporation in the Subscription Agreement are incorporated herein and deemed to be a part of this Warrant Certificate.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(d)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>All Shares that shall be issued by the Corporation upon exercise of the rights provided for herein shall be issued as fully paid and non-assessable Shares.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="312" style='border-collapse:collapse'>
    <tr >
        <td width="284" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>{00080488.5 / 0831-002}</font></p> </td>
        <td width="28" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>9</font></p> </td> </tr></table>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'>
<u><font size=2>Amendments and Modifications</font></u></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>The Corporation may make certain amendments or modifications to this certificate without obtaining the consent of the Holder only to the extent that such amendments or modifications are intended to correct ambiguities or errors in this certificate or are deemed necessary by the Corporation under applicable securities and other laws in order to protect the rights of the Holder hereunder and provided that such amendments or modifications do not prejudice in any way the rights of the Holder hereunder. In the event of such amendment or modification, the Corporation shall provide a replacement Warrant certificate to the Holder along with an explanation of the reasons for the change.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><u><font size=2>General</font></u></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>The laws of the Province of Ontario and the federal laws of Canada applicable therein shall govern the Warrants.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>The holding of the Warrants evidenced by this certificate shall not constitute the Holder hereof a shareholder of the Corporation or entitle the Holder to any right or interest in respect thereof except as expressly provided in this certificate. </font></p>


<table border="0" cellspacing=0 cellpadding=0 width="297" style='border-collapse:collapse'>
    <tr >
        <td width="48" nowrap valign=top style='padding:12.0pt 0in 0in 0in; '>
            <p ><font size=1>&nbsp;</font></p> </td>
        <td width="249" nowrap valign=top style='padding:12.0pt 0in 0in 0in; '>
            <p  style='margin-top:0in'><font size=2>Time shall be of the essence hereof.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>This certificate shall enure to the benefit of and shall be binding upon the Holder and the Corporation and their respective successors and assigns.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>This certificate shall not be valid for any purpose whatever unless and until it has been signed by or on behalf of the Corporation by any one director or officer of the Corporation. The signature of such director or officer may be mechanically reproduced by facsimile and a certificate bearing a facsimile signature shall be binding upon the Corporation as if it had been manually signed by the director or officer. </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:1in;text-align:justify;'><font size=2>IN WITNESS WHEREOF the Corporation has caused this certificate to be signed by an authorized officer.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:1in;text-align:justify;'><font size=2>DATED as of the 4<sup>th</sup> day of November, 2005.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:left;'><B><font SIZE=2>ADSERO CORP.</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:left;'><font size=2>Per:&nbsp;&nbsp;&nbsp;&nbsp;_________________________</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="539" style='border-collapse:collapse'>
    <tr >
        <td width="320" nowrap valign=top >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=top >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Name: &nbsp;&nbsp;&nbsp;Yvon L&#233;veill&#233;</font></p> </td>
        <td  width="61">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="320" nowrap valign=top >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="45" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Title:</font></p> </td>
        <td  nowrap colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Chief Executive Officer</font></p> </td> </tr>
    <tr>
        <td width="320" ></td>

        <td width="45" ></td>

        <td width="112" ></td>

        <td width="61" ></td> </tr> </table>

<BR>

<table border="0" cellspacing=0 cellpadding=0 width="316" style='border-collapse:collapse'>
    <tr >
        <td width="280" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>{00080488.5 / 0831-002}</font></p> </td>
        <td width="36" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>10</font></p> </td> </tr></table>

<HR noshade align="center" width="100%" size="2">
<PAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font size=2>SCHEDULE &#147;A&#148;</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Election to Purchase</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><font size=2>The undersigned hereby irrevocably elects to exercise the number of Warrants of Adsero Corp. set out below for the number of Warrant Shares (or other property or securities subject thereto) as set forth below:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="527" style='margin-left:.45in;border-collapse:collapse'>
    <tr >
        <td width="412" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Number of Warrants to be Exercised:</font></p> </td>
        <td width="115" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>____________</font></p> </td> </tr>
    <tr >
        <td width="412" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="115" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="412" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.5in;text-indent:-.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Number of Warrant Shares to be Acquired:</font></p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>____________</font></p> </td> </tr>
    <tr >
        <td width="412" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="115" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="412" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exercise Price:</font></p> </td>
        <td width="115" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$___________</font></p> </td> </tr>
    <tr >
        <td width="412" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="115" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="412" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Aggregate Purchase Price </font><i><font size=2>[(b) multiplied by (c)]</font></i></p> </td>
        <td width="115" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$___________</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><font size=2>and hereby tenders a cheque or bank draft for such aggregate purchase price, and directs that the Warrant Shares be registered and certificates therefor to be issued as directed below.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><font size=2>The undersigned represents, warrants and certifies as follows (one (only) of the following must be checked):</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table width="600" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse'>
    <tr style='page-break-inside:avoid; height:54.85pt'>
        <td width="67" rowspan=2 valign=top style='border-right: solid black 1.0pt;padding: 0in 5.4pt 0in 5.4pt;height:54.85pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:12pt'><font size=2>Box A</font></p> </td>
        <td width="42" valign=top style='border:solid black 1.0pt;border-color:black; border-left:none;padding:0in 5.4pt 0in 5.4pt;height:54.85pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="529" rowspan=2 valign=top style=' padding:0in 5.4pt 0in 5.4pt; height:54.85pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:12pt'><font size=2>The undersigned holder (i) at the time of exercise of this Warrant is not in the United States; (ii) is not a &#147;U.S. person&#148; as defined in Regulation S under the United States </font><i><font size=2>Securities Act of 1933</font></i><font size=2>, as amended (the &#147;1933 Act&#148;) and is not exercising this Warrant on behalf of a &#147;U.S. person&#148; or a person in the United States; and (iii) did not execute or deliver this Election to Purchase form in the United States.</font></p> </td> </tr>
    <tr style='page-break-inside:avoid;height:17.5pt'>
        <td width="42" valign=top style='border-bottom:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt; height:17.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid; height:80.95pt'>
        <td width="67" valign=top style='border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:80.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:12pt'><font size=2>Box B</font></p> </td>
        <td width="42" valign=top style='border-top:none;border-left:none; border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt;height:80.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="529" valign=top style='padding:0in 5.4pt 0in 5.4pt;height:80.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:12pt'><font size=2>The undersigned holder has delivered to the Corporation an opinion of counsel (which will not be sufficient unless it is in form and substance satisfactory to the Corporation) to the effect that the exercise is pursuant to an effective registration statement under the 1933 Act and applicable state securities laws or that an exemption from the registration requirements of the 1933 Act and applicable state securities laws is available.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><font size=2>The undersigned holder understands that unless the exercise is pursuant to an effective registration statement under the 1933 Act, the certificate representing the Warrant Shares will bear a legend restricting transfer without registration under the 1933 Act and applicable state securities laws unless an exemption from registration is available.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="316" style='border-collapse:collapse'>
    <tr >
        <td width="280" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>{00080488.5 / 0831-002}</font></p> </td>
        <td width="36" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>11</font></p> </td> </tr></table>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:1in;text-align:justify;'>
<font size=2>DATED this ______ day of _______________, _______.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="556" style='border-collapse:collapse'>
    <tr >
    <td width="240" nowrap valign=top >

            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>witness:</font></p> </td>
        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td width="268" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="240" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Holder&#146;s Name</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="556" style='border-collapse:collapse'>
    <tr >
        <td width="240" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="25" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td   colspan="4">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="240" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td  nowrap colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="240" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td  nowrap colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Authorized Signature</font></p> </td>
        <td  width="112">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="240" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="25" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td   colspan="4">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="240" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td  nowrap colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="240" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td width="143" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Title (if applicable)</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="240" ></td>

        <td width="25" ></td>

        <td width="23" ></td>

        <td width="143" ></td>

        <td width="13" ></td>

        <td width="112" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="498" style='margin-left:0in;border-collapse:collapse'>
    <tr >
        <td width="288" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><u><i><font size=2>Direction as to Registration</font></i></u><i><u></u></i></p> </td>
        <td width="210" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="288" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="210" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="288" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><i><font size=2>Name of Registered Holder:</font></i><i></i></p> </td>
        <td width="210" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="288" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Address of Registered Holder:</font></i><i></i></p> </td>
        <td width="210" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="288" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><i>&nbsp;</i></p> </td>
        <td width="210" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="288" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i>&nbsp;</i></p> </td>
        <td width="210" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="288" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><i>&nbsp;</i></p> </td>
        <td width="210" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="288" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i>&nbsp;</i></p> </td>
        <td width="210" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="288" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><i>&nbsp;</i></p> </td>
        <td width="210" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="288" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i>&nbsp;</i></p> </td>
        <td width="210" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Note</font></b><font size=2>: Certificates will not be registered or delivered to an address in the United States unless Box B above is checked and the applicable requirements are complied with.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="316" style='border-collapse:collapse'>
    <tr >
        <td width="280" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>{00080488.5 / 0831-002}</font></p> </td>
        <td width="36" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>12</font></p> </td> </tr></table>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font size=2>SCHEDULE &#147;B&#148;</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Transfer Form</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><font size=2>FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers to ___________________ an aggregate of ___________ Warrants of Adsero Corp. represented by the attached Warrant certificate and does hereby appoint ___________________ as the attorney of the undersigned to effect such transfer of Warrants.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><font size=2>DATED this ______ day of _______________, _______.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="556" style='border-collapse:collapse'>
    <tr >
        <td width="240" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>witness:</font></p> </td>
        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td width="268" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="240" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Transferor&#146;s Name</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="556" style='border-collapse:collapse'>
    <tr >
        <td width="240" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="25" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td   colspan="4">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="240" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td  nowrap colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="240" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td  nowrap colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Authorized Signature</font></p> </td>
        <td  width="112">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="240" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="25" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td   colspan="4">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="240" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td  nowrap colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="240" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td width="143" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Title (if applicable)</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="240" ></td>

        <td width="25" ></td>

        <td width="23" ></td>

        <td width="143" ></td>

        <td width="13" ></td>

        <td width="112" ></td> </tr> </table>

<table border="0" cellspacing=0 cellpadding=0 width="624" style='border-collapse:collapse'>
    <tr style='page-break-inside:avoid'>
        <td width="624" valign=top >
            <p ><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="624" valign=top >
            <p  style='margin-left:36.7pt;text-indent:-36.7pt'><b><font size=2>Note:</font></b><font size=2>&nbsp;&nbsp;&nbsp;The name of the Transferor on this Form of Transfer must be the same as the name appearing on the face page of the Warrant certificate to which this Schedule is attached.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="583" style='border-collapse:collapse'>
    <tr >
        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Transfers must comply with the terms of any restriction on transfer noted on this</font></p> </td> </tr>
    <tr >
        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="87" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>certificate.</font></p> </td>
        <td  width="448">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="316" style='border-collapse:collapse'>
    <tr >
        <td width="280" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>{00080488.5 / 0831-002}</font></p> </td>
        <td width="36" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>13</font></p> </td> </tr></table>

<HR noshade align="center" width="100%" size="2">

</div>
</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4
<SEQUENCE>4
<FILENAME>ex_4-3.htm
<DESCRIPTION>FORM OF BROKER WARRANT FOR 11-09-05
<TEXT>
<HTML>
<HEAD>
<TITLE> </TITLE>
</HEAD>
<BODY bgcolor="#ffffff" style='font-family:"Times New Roman"'>

<div style='width:600;'>

<A NAME="ex_4-3"></A>

<p style=' margin-bottom:5pt; margin-top:5pt;text-align:right;'><B><font SIZE=2>EXHIBIT 4.3</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THESE SECURITIES MUST NOT TRADE THE SECURITIES IN CANADA BEFORE THE DATE THAT IS 4 MONTHS AND A DAY AFTER THE LATER OF (i) NOVEMBER 9, 2005, AND (ii) THE DATE THE ISSUER BECOMES A REPORTING ISSUER IN ANY PROVINCE OR TERRITORY OF CANADA.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><b><font size=2>THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN OFFERED AND SOLD IN AN &#147;OFFSHORE TRANSACTION&#148; IN RELIANCE UPON REGULATION S AS PROMULGATED BY THE SECURITIES AND EXCHANGE COMMISSION. ACCORDINGLY, THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE &#147;1933 ACT&#148;) AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH REGULATION S, PURSUANT TO REGISTRATION UNDER THE 1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE 1933 ACT, THE AVAILABILITY OF WHICH IS TO BE ESTABLISHED TO THE SATISFACTION OF THE COMPANY. THE SECURITIES REPRESENTED BY THIS CERTIFICATE CANNOT BE THE SUBJECT OF HEDGING TRANSACTIONS UNLESS SUCH TRANSACTIONS ARE CONDUCTED IN COMPLIANCE WITH THE 1933 ACT.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:right;'><font size=2>Certificate No.&nbsp;1</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><B><font SIZE=2>ADSERO CORP.</font></B></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font size=2>November 9, 2005</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><B><font SIZE=2>BROKER WARRANT CERTIFICATE</font></B></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>THIS IS TO CERTIFY THAT, for value received, Loewen Ondaatje McCutcheon Limited, 55 Avenue Rd. Suite 2250, Toronto, Ontario M5R 3L2 (the &#147;</font><b><font size=2>Holder</font></b><font size=2>&#148;), is the registered holder of 280,000 broker warrants (&#147;</font><b><font size=2>Broker Warrants</font></b><font size=2>&#148;) of Adsero Corp. (the &#147;</font><b><font size=2>Corporation</font></b><font size=2>&#148;), each Broker Warrant to be automatically exercised, without payment of any additional consideration, at the Automatic Exercise Date (as defined below) into, subject to adjustment, one agent&#146;s warrant (each, an &#147;</font><b><font size=2>Agent&#146;s Warrant</font></b><font size=2>&#148;) in the form attached hereto as Schedule &#147;A&#148;. Each Agent&#146;s Warrant shall entitle the Holder to purchase, subject to adjustment, one unit of the Corporation (each
a &#147;</font><b><font size=2>Unit</font></b><font size=2>&#148;) at a price of U.S.$0.50 per Unit during the period ending at 5:00 p.m. (Toronto time) on May 9, 2008 (the &#147;</font><b><font size=2>Time of Expiry</font></b><font size=2>&#148;). Each Unit shall be comprised of one share of the common stock of the Corporation (a &#147;</font><b><font size=2>Unit Share</font></b><font size=2>&#148;) and one common share purchase warrant (a &#147;</font><b><font size=2>Warrant</font></b><font size=2>&#148;). Each Warrant shall entitle the Holder to purchase, subject to adjustment, an additional share of common stock of the Corporation (a &#147;</font><b><font size=2>Warrant Share</font></b><font size=2>&#148;) at a price of U.S.$1.25 until the Time of Expiry.   </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="312" style='border-collapse:collapse'>
    <tr >
        <td width="284" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>{00080488.5 / 0831-002}</font></p> </td>
        <td width="28" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1</font></p> </td> </tr></table>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'>
<u><font size=2>Automatic Exercise</font></u></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>The Corporation shall provide notice to the Holder immediately following the Automatic Exercise Date. The notice shall provide information as to the actual date of the Automatic Exercise Date and whether the Qualification Conditions had been satisfied by the Corporation as at the Qualification Date.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>As at the Automatic Exercise Date, the Corporation shall be deemed to have issued to the Holder that number of Agent&#146;s Warrants required pursuant to the terms and conditions of this certificate. The Corporation shall deliver to the Holder at the Holder&#146;s registered address certificates representing the Agent&#146;s Warrants within three business days of the Automatic Exercise Date. Upon the automatic exercise of the Broker Warrants, the Broker Warrants shall be void and of no value or effect.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.56in;text-align:justify;'><font size=2>No fractional Agent&#146;s Warrants shall be issued upon the automatic exercise of any Broker Warrants. Where the Broker Warrants would otherwise entitle the Holder to fractional Agent&#146;s Warrants, that number of Agent&#146;s Warrants shall be rounded up to the next whole number. </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><u><font size=2>Replacement of Certificates</font></u></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>Upon receipt of evidence satisfactory to the Corporation of the loss, theft, destruction or mutilation of this certificate and, if requested by the Corporation, upon delivery of a bond of indemnity satisfactory to the Corporation (or, in the case of mutilation, upon surrender of this certificate), the Corporation will issue to the Holder a replacement certificate containing the same terms and conditions as this certificate. The Holder shall pay the reasonable charges of the Corporation in connection with any such replacement.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><u><font size=2>Legends</font></u></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>The certificates representing the Agent&#146;s Warrants issued upon automatic exercise of the Broker Warrants may be subject to certain resale restrictions as evidenced by legends on the certificates, as set forth below.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(w)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>If, upon the automatic exercise of the Broker Warrants, the issuance of the Agent&#146;s Warrants has not been qualified in Canada by the Prospectus (as defined in the Agency Agreement), then the certificates representing the Agent&#146;s Warrants shall bear the following legend:</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:1in;text-align:justify;'><font size=2>UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THESE SECURITIES MUST NOT TRADE THE SECURITIES IN CANADA BEFORE THE DATE THAT IS 4 MONTHS AND A DAY AFTER THE LATER OF (i) NOVEMBER 9, 2005, AND (ii) THE DATE THE ISSUER BECOMES A REPORTING ISSUER IN ANY PROVINCE OR TERRITORY;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="312" style='border-collapse:collapse'>
    <tr >
        <td width="284" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>{00080488.5 / 0831-002}</font></p> </td>
        <td width="28" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2</font></p> </td> </tr></table>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:1in;text-align:justify;'><font size=2>provided that if the Corporation becomes a reporting issuer in any province or territory of Canada subsequent to the issue of the Agent&#146;s Warrants by virtue of the Corporation having filed and been receipted for a final prospectus, and if the above resale restriction is therefore no longer applicable, then the Holder may exchange the certificates representing the Agent&#146;s Warrants for certificates bearing no such legend.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(x)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Upon the automatic exercise of the Broker Warrants, the certificates representing the Agent&#146;s Warrants shall bear the following legends:</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:1in;text-align:justify;'><font size=2>THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN OFFERED AND SOLD IN AN &#147;OFFSHORE TRANSACTION&#148; IN RELIANCE UPON REGULATION S AS PROMULGATED BY THE SECURITIES AND EXCHANGE COMMISSION. ACCORDINGLY, THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE &#147;1933 ACT&#148;) AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH REGULATION S, PURSUANT TO REGISTRATION UNDER THE 1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE 1933 ACT, THE AVAILABILITY OF WHICH IS TO BE ESTABLISHED TO THE SATISFACTION OF THE COMPANY. THE SECURITIES REPRESENTED BY THIS CERTIFICATE CANNOT BE THE SUBJECT OF HEDGING TRANSACTIONS UNLESS SUCH TRANSACTIONS ARE CONDUCTED IN COMPLIANCE WITH THE 1933 ACT;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:0.98in;text-align:justify;'><font size=2>THIS WARRANT AND THE SECURITIES TO BE ISSUED UPON ITS EXERCISE HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE &#147;1933 ACT&#148;). THIS WARRANT MAY NOT BE EXERCISED IN THE UNITED STATES BY OR ON BEHALF OF ANY U.S. PERSON OR PERSON IN THE UNITED STATES UNLESS SUCH EXERCISE IS PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT AND APPLICABLE STATE SECURITIES LAWS OR AN EXEMPTION FROM REGISTRATION IS AVAILABLE, AND THE COMPANY SHALL HAVE RECEIVED AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO IT TO SUCH EFFECT.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="312" style='border-collapse:collapse'>
    <tr >
        <td width="284" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>{00080488.5 / 0831-002}</font></p> </td>
        <td width="28" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3</font></p> </td> </tr></table>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><u><font size=2>Adjustments</font></u></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.56in;text-align:justify;'><font size=2>For the purposes of this section, &#147;</font><b><font size=2>Exchange Number</font></b><font size=2>&#148; at any time means that number of Agent&#146;s Warrants that a Holder of a Broker Warrant is entitled to receive for each Broker Warrant held upon automatic exercise of the Broker Warrants in accordance with the terms and conditions of this certificate as such number may be adjusted pursuant to the following provisions and such number, as at the date hereof, is one Agent&#146;s Warrant per Broker Warrant.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.56in;text-align:justify;'><font size=2>For purposes of this section, the terms &#147;</font><b><font size=2>record date</font></b><font size=2>&#148; and &#147;</font><b><font size=2>effective date</font></b><font size=2>&#148; where used herein shall mean the close of business on the relevant date. </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.56in;text-align:justify;'><font size=2>For the purposes of this section, &#147;</font><b><font size=2>Current Market Price</font></b><font size=2>&#148; at any date, means the weighted average price per share at which the shares of common stock of the Corporation (the &#147;</font><b><font size=2>Shares</font></b><font size=2>&#148;) have traded on any over-the-counter market during the 20 consecutive trading days (on each of which at least 500 Shares are traded in board lots) ending the second trading day before such date and the weighted average price shall be determined by dividing the aggregate sale price of all Shares sold in board lots on the exchange or market, as the case may be, during the 20 consecutive trading days by the number of Shares sold, or if not traded on any market or exchange or bulletin board, as determined by the directors of the Corporation reasonably.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>The Exchange Number (or the number and kind of shares or securities to be received upon exercise in the case of paragraphs (d) and (e) below) shall be subject to adjustment from time to time in the events and in the manner provided as follows:</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(y)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>If prior to the Automatic Exercise Date the Corporation shall</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(i)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>issue to all or substantially all the holders of the Shares, by way of a stock distribution, stock dividend or otherwise, Shares or securities convertible into Shares; or</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(ii)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>subdivide its outstanding Shares into a greater number of shares; or</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(iii)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>combine or consolidate its outstanding Shares into a smaller number of shares,</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="556" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="460" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(any of these events being herein called a &#147;</font><b><font size=2>Share Reorganization</font></b><font size=2>&#148;),</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:justify;'><font size=2>the Exchange Number shall be adjusted effective immediately after the record date at which the holders of Shares are determined for the purposes of the Share Reorganization to a number that is the product of (1) the Exchange Number in effect on the record date and (2) a fraction:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(A)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the numerator of which shall be the number of Shares outstanding after giving effect to the Share Reorganization; and</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="312" style='border-collapse:collapse'>
    <tr >
        <td width="284" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>{00080488.5 / 0831-002}</font></p> </td>
        <td width="28" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4</font></p> </td> </tr></table>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(B)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the denominator of which shall be the number of Shares outstanding on the record date before giving effect to the Share Reorganization.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:justify;'><font size=2>For the purposes of determining the number of Shares outstanding at any particular time for the purpose of the foregoing calculation subsection, there shall be included that number of Shares which would have resulted from the conversion at that time of all outstanding convertible securities.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(z)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>If prior to the Automatic Exercise Date the Corporation shall issue rights, options or warrants to all or substantially all the holders of the Shares pursuant to which those holders are entitled to subscribe for, purchase or otherwise acquire Shares or convertible securities within a period of 45 days from the date of issue thereof at a price, or at a conversion price, of less than 95% of the Current Market Price at the record date for such distribution (any such issuance being herein called a &#147;</font><b><font size=2>Rights</font></b><font size=2> </font><b><font size=2>Offering</font></b><font size=2>&#148; and Shares that may be acquired in exercise of the Rights Offering or upon conversion of the convertible securities offered by the Rights Offering being herein called the &#147;</font><b><font size=2>Offered
Shares</font></b><font size=2>&#148;), the Exchange Number shall be adjusted effective immediately after the record date at which holders of Shares are determined for the purposes of the Rights Offering to an Exchange Number that is the product of (1) the Exchange Number in effect on the record date and (2) a fraction:</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(i)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the numerator of which shall be the sum of (i) the number of Shares outstanding on the record date plus (ii) the number of Offered Shares offered pursuant to the Rights Offering or the maximum number of Offered Shares into which the convertible securities so offered pursuant to the Rights Offering may be converted, as the case may be; and</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(ii)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the denominator of which shall be the sum of:</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(A)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the number of Shares outstanding on the record date for the Rights Offering; and</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(B)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the number arrived at when (A) either the product of (1) the number of Offered Shares so offered and (2) the price at which those Shares are offered, or the product of (3) the conversion price thereof and (4) the maximum number of Offered Shares for or into which the convertible securities so offered pursuant to the Rights Offering may be converted, as the case may be, is divided by (B) the Current Market Price of the Shares on the record date.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:1in;text-align:justify;'><font size=2>Any Offered Shares owned by or held for the account of the Corporation shall be deemed not to be outstanding for the purpose of any computation; if all the rights, options or warrants are not so issued or if all rights, options or warrants are not exercised prior to the expiration thereof, the Exchange Number shall be readjusted to the Exchange Number in effect immediately prior to the record date and the </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="312" style='border-collapse:collapse'>
    <tr >
        <td width="284" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>{00080488.5 / 0831-002}</font></p> </td>
        <td width="28" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>5</font></p> </td> </tr></table>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:1in;text-align:justify;'>
<font size=2>Exchange Number shall be further adjusted based upon the number of Offered Shares (or convertible securities into Offered Shares) actually delivered upon the exercise of the rights, options or warrants, as the case may be, but subject to any other adjustment required hereunder by reason of any event arising after that record date.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(aa)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>If prior to the Automatic Exercise Date the Corporation shall issue or distribute to all or substantially all the holders of the Shares (i) shares of any class other than Shares, or (ii) rights, options or warrants other than rights, options or warrants exercisable within 45 days from the date of issue thereof at a price, or at a conversion price, of at least 95% of the Current Market Price at the record date for such distribution, or (iii) evidences of indebtedness, or (iv) any other assets and that issuance or distribution does not constitute a Share Reorganization or a Rights Offering (any of those events being herein called a &#147;</font><b><font size=2>Special Distribution</font></b><font size=2>&#148;), the Exchange Number shall be adjusted effective immediately after the record date at which the holders of Shares are
determined for purposes of the Special Distribution to an Exchange Number that is the product of (1) the Exchange Number in effect on the record date and (2) a fraction:</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(i)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the numerator of which shall be the product of (i) the sum of the number of Shares outstanding on the record date and (ii) the Current Market Price thereof on that date; and</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(ii)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the denominator of which shall be:</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(A)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the product of (A) the sum of the number of Shares outstanding on the record date and (B) the Current Market Price thereof on that date;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="187" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="43" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>less</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(B)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the aggregate fair market value, as determined by the directors, whose determination shall, absent manifest error, be conclusive, of the shares, rights, options, warrants, evidences of indebtedness or other assets issued or distributed in the Special Distribution.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:1in;text-align:justify;'><font size=2>Any Shares owned by or held for the
account of the Corporation shall be deemed not to be outstanding for the purpose of any such computation. To the extent that the
distribution of shares, rights, options, warrants, evidences of indebtedness or assets if not so made or to the extent that any
rights, options or warrants so distributed are not exercised, the Exchange Number shall be readjusted to the Exchange Number that
would then be in effect based upon the shares, rights, options, warrants, evidences of indebtedness or assets actually distributed
or based upon the number of Shares or convertible securities actually delivered upon the exercise of the rights, options or
warrants, as the case may be, but subject to any other adjustment required hereunder by reason of any event arising after the record date.
</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="312" style='border-collapse:collapse'>
    <tr >
        <td width="284" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>{00080488.5 / 0831-002}</font></p> </td>
        <td width="28" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>6</font></p> </td> </tr></table>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(bb)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>If prior to the Automatic Exercise Date there is a reorganization of the Corporation not otherwise provided for in paragraph (a) above, or a consolidation or merger or amalgamation of the Corporation with or into another body corporate including a transaction whereby all or substantially all of the Corporation&#146;s undertaking and assets become the property of any other corporation (any such event being herein called a &#147;</font><b><font size=2>Capital Reorganization</font></b><font size=2>&#148;) any holder of a Broker Warrant shall be entitled to receive and shall accept, upon the exercise of his or her right at any time after the effective date of the Capital Reorganization, in lieu of the number of securities to which the Holder was theretofore entitled upon automatic exercise of the Broker Warrant, the aggregate
number of securities or property of the Corporation, or the continuing, successor or purchasing person, as the case may be, under the Capital Reorganization that the Holder would have been entitled to receive as a result of the Capital Reorganization if, on the effective date thereof, the Holder had been the holder of the number of securities to which immediately before the transaction the Holder was entitled upon automatic exercise of the Broker Warrants. No Capital Reorganization shall be carried into effect unless all necessary steps shall have been taken so that the Holders of Broker Warrants shall thereafter be entitled to receive the number of securities or property of the Corporation or of the continuing, successor or purchasing person, as the case may be, under the Capital Reorganization, subject to adjustment thereafter in accordance with provisions the same, as nearly as may be possible, as those contained in this section and under &#147;Adjustment Rules&#148;
below.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(cc)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>If the Corporation shall reclassify or otherwise change the outstanding Shares, the exercise right shall be adjusted effective immediately upon the reclassification becoming effective so that Holders of Broker Warrants shall be entitled to receive that number of Agent&#146;s Warrants as they would have received had the Broker Warrants been automatically exercised immediately prior to the effective date, subject to adjustment thereafter in accordance with provisions the same, as nearly as may be possible, as those contained in this section and under &#147;Adjustment Rules&#148; below.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><u><font size=2>Adjustment Rules</font></u></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.5in;text-align:justify;'><font size=2>The following rules and procedures shall be applicable to adjustments made pursuant to foregoing section:</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(dd)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The adjustments and readjustments provided for in this certificate are cumulative and, subject to paragraph (b) below, shall apply (without duplication) to successive issues, subdivisions, combinations, consolidations, distributions and any other events that require adjustment of the Exchange Number or the number or kind of securities purchasable hereunder.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="312" style='border-collapse:collapse'>
    <tr >
        <td width="284" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>{00080488.5 / 0831-002}</font></p> </td>
        <td width="28" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>7</font></p> </td> </tr></table>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(ee)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>No adjustment in the Exchange Number shall be required unless the adjustment would result in a change of at least 1% in the Exchange Number then in effect, provided, however, that any adjustments that, except for the provisions of this subsection would otherwise have been required to be made, shall be carried forward and taken into account in any subsequent adjustment.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(ff)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>No adjustment in the Exchange Number shall be made in respect of any event described in paragraph (a)(i) and (b) and (c) above under &#147;Adjustments&#148; if the Holders of the Broker Warrants are entitled to participate in the event on the same terms, </font><i><font size=2>mutatis mutandis</font></i><font size=2>, as if their Broker Warrants had been automatically exercised immediately prior to the effective date or record date of the event.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(gg)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>No adjustment in the Exchange Number shall be made pursuant to this certificate in respect of the issue of Shares pursuant to:</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(i)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>this certificate; or</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(ii)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the issuance of Shares pursuant to the exercise of options granted pursuant to the Corporation&#146;s stock option plans or pursuant to the exercise of rights under currently outstanding warrants to acquire Shares,</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:1in;text-align:justify;'><font size=2>and any such issue shall be deemed not to be a Share Reorganization, a Rights Offering or a Special Distribution.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(hh)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>If a dispute shall at any time arise with respect to adjustments of the Exchange Number, the dispute shall be conclusively determined by the Corporation&#146;s auditors or, if they are unable or unwilling to act, by such firm of independent chartered accountants as may be selected by the directors and any such determination shall, absent manifest error, be binding upon the Corporation and all Holders of Broker Warrants.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(ii)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>If and whenever at any time prior to the Automatic Exercise Date, the Corporation shall take any action affecting or relating to the Shares, other than any action described in this section, which in the opinion of the directors of the Corporation would prejudicially affect the rights of any holders of Broker Warrants, the Exchange Number will be adjusted by the directors of the Corporation in such manner, if any, and at such time, as the directors of the Corporation, may in their sole discretion, subject to the approval of any stock exchange on which the Shares are listed and posted for trading, reasonably determine to be equitable in the circumstances to such holders.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(jj)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>As a condition precedent
to the taking of any action which would require an adjustment in any of the rights under the Broker Warrants, the Corporation will
take any action which, in the opinion of counsel to the Corporation , may be necessary in order that the Corporation, or any
successor to the Corporation or successor to the undertaking or assets of the Corporation will be obligated to and may validly and
legally issue all the Agent&#146;s Warrants which the holders of the Broker Warrants would be entitled to receive thereafter and to
exercise such Broker Warrants in accordance with the provisions hereof. </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="312" style='border-collapse:collapse'>
    <tr >
        <td width="284" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>{00080488.5 / 0831-002}</font></p> </td>
        <td width="28" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>8</font></p> </td> </tr></table>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.5in;text-align:justify;'><font size=2>In any case where the application of the adjustment rules results in an increase of the Exchange Number taking effect immediately after the record date for or occurrence of a specific event, if the Broker Warrants are automatically exercised after that record date or occurrence and prior to completion of the event or of the period for which a calculation is required to be made, the Corporation may postpone the issuance to the Holder of the Broker Warrants of the Agent&#146;s Warrants to which the Holder is entitled by reason of the increase of the Exchange Number but the Agent&#146;s Warrants shall be so issued and delivered to that Holder upon completion of that event or period, with the number of those Agent&#146;s Warrants calculated on the basis of the Exchange Number on the Automatic Exercise Date adjusted for completion of that event or period, and the Corporation shall forthwith
after the Automatic Exercise Date deliver to the person or persons in whose name or names the additional Agent&#146;s Warrants are to be issued an appropriate instrument evidencing the person&#146;s or persons&#146; right to receive the Agent&#146;s Warrants.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.56in;text-align:justify;'><font size=2>Promptly upon the occurrence of the earlier of the effective date of or the record date for any event referred to above that requires an adjustment in the Exchange Number, the Corporation shall give notice to the Holders of Broker Warrants of the particulars of the event and, if determinable, the adjustment.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><u><font size=2>Covenants</font></u></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>The Corporation covenants with the Holder of the Broker Warrants evidenced by this certificate as follows:</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(kk)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The Corporation will at all times maintain its existence and will carry on and conduct its business in a prudent manner in accordance with industry standards and good business practice and will keep or cause to be kept proper books of account in accordance with applicable law.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(ll)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The Corporation will reserve and keep available a sufficient number of Shares and Warrants for issuance upon the exercise of the Agent&#146;s Warrants and a sufficient number of Shares for issuance upon exercise of the Warrants underlying the Agent&#146;s Warrants.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(mm)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>In the event that the Qualification Conditions are not satisfied by the Qualification Date, the Corporation agrees to file a registration statement under the 1933 Act and applicable state securities laws and use its commercially reasonable efforts to cause the registration statement to become effective within 90 days of the Automatic Exercise Date in order to register the resale of the Unit Shares and the Warrants underlying the Subscription Receipts and Agent&#146;s Warrants issued pursuant to the Agency Agreement and the issuance of the Warrant Shares upon exercise of such Warrants. The Corporation further agrees that it shall cause such registration statement to remain effective and available for use by the holder until the later of November 9, 2007 and a date which is 10 days after all of the Warrants have been exercised or have expired.</font></p> </td> </tr></table>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(nn)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>All Shares that shall be issued by the Corporation upon exercise of the rights provided for herein shall be issued as fully paid and non-assessable Shares.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="312" style='border-collapse:collapse'>
    <tr >
        <td width="284" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>{00080488.5 / 0831-002}</font></p> </td>
        <td width="28" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>9</font></p> </td> </tr></table>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><u><font size=2>Amendments and Modifications</font></u></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>The Corporation, with the consent of the Agent, may make certain amendments or modifications to this certificate without obtaining the consent of the Holder only to the extent that such amendments or modifications are intended to correct ambiguities or errors in this certificate or are deemed necessary by the Corporation and the Agent under applicable securities and other laws in order to protect the rights of the Holder hereunder and provided that such amendments or modifications do not prejudice in any way the rights of the Holder hereunder. In the event of such amendment or modification, the Corporation shall provide a replacement Broker Warrant certificate to the Holder along with an explanation of the reasons for the change.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><u><font size=2>General</font></u></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>The laws of the Province of Ontario and the federal laws of Canada applicable therein shall govern the Broker Warrants.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>The holding of the Broker Warrants evidenced by this certificate shall not constitute the Holder hereof a shareholder of the Corporation or entitle the Holder to any right or interest in respect thereof except as expressly provided in this certificate. </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>Time shall be of the essence hereof.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>The Broker Warrants are non-transferable without the consent of the Corporation.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>This certificate shall enure to the benefit of and shall be binding upon the Corporation and its successors and assigns.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>This certificate shall not be valid for any purpose whatever unless and until it has been signed by or on behalf of the Corporation by any one director or officer of the Corporation. The signature of such director or officer may be mechanically reproduced by facsimile and a certificate bearing a facsimile signature shall be binding upon the Corporation as if it had been manually signed by the director or officer. </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:1in;text-align:justify;'><font size=2>IN WITNESS WHEREOF the Corporation has caused this certificate to be signed by an authorized officer.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:1in;text-align:justify;'><font size=2>DATED as of the 9<sup>th</sup> day of November, 2005.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:left;'><B><font SIZE=2>ADSERO CORP.</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:left;'><font size=2>Per: ___________________________________</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="381" style='border-collapse:collapse'>
    <tr >
        <td width="320" valign=top >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Name:</font></p> </td> </tr>
    <tr >
        <td width="320" valign=top >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="53" valign=top >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Title:</font></p> </td>
        <td  width="8">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="316" style='border-collapse:collapse'>
    <tr >
        <td width="280" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>{00080488.5 / 0831-002}</font></p> </td>
        <td width="36" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>10</font></p> </td> </tr></table>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font size=2>SCHEDULE &#147;A&#148;</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Form of Agent&#146;s Certificate</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><B><font SIZE=2>THE WARRANT REPRESENTED BY THIS WARRANT CERTIFICATE IS VOID AND OF NO EFFECT IF NOT EXERCISED PRIOR TO 5:00 P.M. (TORONTO TIME) ON MAY 9, 2008.</font></B></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><b><font size=2>[UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THESE SECURITIES MUST NOT TRADE THE SECURITIES IN CANADA BEFORE THE DATE THAT IS 4 MONTHS AND A DAY AFTER THE LATER OF (i) NOVEMBER 9, 2005, AND (ii) THE DATE THE ISSUER BECOMES A REPORTING ISSUER IN ANY PROVINCE OR TERRITORY.]</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><b><font size=2>THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN OFFERED AND SOLD IN AN &#147;OFFSHORE TRANSACTION&#148; IN RELIANCE UPON REGULATION S AS PROMULGATED BY THE SECURITIES AND EXCHANGE COMMISSION. ACCORDINGLY, THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE  NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE &#147;1933 ACT&#148;) AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH REGULATION S, PURSUANT TO REGISTRATION UNDER THE 1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE 1933 ACT, THE AVAILABILITY OF WHICH IS TO BE ESTABLISHED TO THE SATISFACTION OF THE COMPANY. THE SECURITIES REPRESENTED BY THIS CERTIFICATE CANNOT BE THE SUBJECT OF HEDGING TRANSACTIONS UNLESS SUCH TRANSACTIONS ARE CONDUCTED IN COMPLIANCE WITH THE 1933 ACT.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><b><font size=2>THIS WARRANT AND THE SECURITIES TO BE ISSUED UPON ITS EXERCISE HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE &#147;1933 ACT&#148;). THIS WARRANT MAY NOT BE EXERCISED IN THE UNITED STATES OR BY OR ON BEHALF OF ANY U.S. PERSON OR PERSON IN THE UNITED STATES UNLESS SUCH EXERCISE IS PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT AND APPLICABLE STATE SECURITIES LAWS OR AN EXEMPTION FROM REGISTRATION IS AVAILABLE, AND THE COMPANY SHALL HAVE RECEIVED AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO IT TO SUCH EFFECT.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:right;'><b><font size=2>Certificate No.</font></b><font size=2>&nbsp;</font><b><font size=2>&#149;</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><B><font SIZE=2>ADSERO CORP.</font></B></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font size=2>&#149; [Insert Date]</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="316" style='border-collapse:collapse'>
    <tr >
        <td width="280" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>{00080488.5 / 0831-002}</font></p> </td>
        <td width="36" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>11</font></p> </td> </tr></table>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font size=2>AGENT&#146;S WARRANT CERTIFICATE</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>THIS IS TO CERTIFY THAT, for value received, &#149; (the &#147;</font><b><font size=2>Holder</font></b><font size=2>&#148;), is the registered holder of </font><font size=4><b>&#149;</b></font><font size=2> agent&#146;s warrants (each, an &#147;</font><b><font size=2>Agent&#146;s</font></b><font size=2> </font><b><font size=2>Warrant</font></b><font size=2>&#148;) of Adsero Corp. (the &#147;</font><b><font size=2>Corporation</font></b><font size=2>&#148;). Each Agent&#146;s Warrant shall entitle the Holder to purchase, subject to adjustment, one unit of the Corporation (each a &#147;</font><b><font size=2>Unit</font></b><font size=2>&#148;) at a price of U.S.$0.50 per Unit (the &#147;</font><b><font size=2>Exercise Price</font></b><font size=2>&#148;) during the period ending at 5:00 p.m. (Toronto time) on May 9, 2008 (the &#147;</font><b><font size=2>Time of Expiry</font></b><font
size=2>&#148;). Each Unit shall be comprised of one share of the common stock of the Corporation (a &#147;</font><b><font size=2>Unit Share</font></b><font size=2>&#148;) and one common share purchase warrant (a &#147;</font><b><font size=2>Warrant</font></b><font size=2>&#148;). Each Warrant shall entitle the Holder to purchase, subject to adjustment, an additional share of common stock of the Corporation (a &#147;</font><b><font size=2>Warrant Share</font></b><font size=2>&#148;) at a price of U.S.$1.25 until the Time of Expiry and shall be in the form of certificate attached hereto as Schedule &#147;B&#148;.  </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><u><font size=2>Exercise</font></u></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>The rights evidenced by this certificate may be exercised by the Holder in whole or in part and in accordance with the provisions hereof by delivery of the election to purchase substantially in the form attached as Schedule &#147;A&#148;, properly completed and executed, together with payment of the Exercise Price for the number of Units specified in the election to purchase form to the Corporation, at 2101 Nobel Street, Sainte-Julie, Quebec J3E 1Z8 or such other address of which the Holder may be notified in writing by the Corporation (the &#147;</font><b><font size=2>Corporation Office</font></b><font size=2>&#148;). In the event that the rights evidenced by this certificate are exercised in part, the Corporation shall, contemporaneously with the issuance of the Units issuable on the exercise of the Agent&#146;s Warrants so exercised, issue to the Holder certificates on identical
terms in respect of that number of Agent&#146;s Warrants in respect of which the Holder has not exercised the rights evidenced by this certificate.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>The Corporation shall, on the business day following the date it receives a duly executed election to purchase form along with the Agent&#146;s Warrant certificate and the Exercise Price for the number of Units specified in the election to purchase form (the &#147;</font><b><font size=2>Exercise Date</font></b><font size=2>&#148;), issue that number of Unit Shares and Warrants, dated the Exercise Date, specified in the election to purchase form. The Unit Shares shall be issued as fully paid and non-assessable shares of common stock of the Corporation.</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>The Corporation shall deliver to the Holder at the Holder&#146;s registered address specified in the election to purchase form certificates representing the Unit Shares and Warrants within three business days of the Exercise Date. </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.56in;text-align:justify;'><font size=2>No fractional Unit Shares or Warrants shall be issued upon the exercise of any Agent&#146;s Warrants. Where the Agent&#146;s Warrants would otherwise entitle the Holder to fractional Units, that number of Units shall be rounded up to the next whole number. </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><u><font size=2>Replacement of Certificates</font></u></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>Upon receipt of evidence satisfactory to the Corporation of the loss, theft, destruction or mutilation of this certificate and, if requested by the Corporation, upon delivery of a bond of indemnity satisfactory to the Corporation (or, in the case of mutilation, upon surrender of this </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="316" style='border-collapse:collapse'>
    <tr >
        <td width="280" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>{00080488.5 / 0831-002}</font></p> </td>
        <td width="36" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>12</font></p> </td> </tr></table>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><font size=2>certificate), the Corporation will issue to the Holder a replacement certificate containing the same terms and conditions as this certificate. The Holder shall pay the reasonable charges of the Corporation in connection with any such replacement.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><u><font size=2>Transfer of Agent&#146;s Warrants</font></u></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>The Agent&#146;s Warrants represented by this certificate are non-transferable without the consent of the Corporation.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><u><font size=2>Legends</font></u></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>The certificates representing the Unit Shares and Warrants issued upon the exercise of the Agent&#146;s Warrants may be subject to certain resale restrictions as evidenced by legends on the certificates, as set forth below.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(oo)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>If, upon the exercise of the Agent&#146;s Warrants, the issuance of the Units has not been qualified in Canada by a final prospectus of the Corporation, then the certificates representing the Unit Shares and Warrants shall bear the following legend:</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:1in;text-align:justify;'><font size=2>UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THESE SECURITIES MUST NOT TRADE THE SECURITIES IN CANADA BEFORE THE DATE THAT IS 4 MONTHS AND A DAY AFTER THE LATER OF (i) NOVEMBER 9, 2005, AND (ii) THE DATE THE ISSUER BECOMES A REPORTING ISSUER IN ANY PROVINCE OR TERRITORY;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:1in;text-align:justify;'><font size=2>provided that if the Corporation becomes a reporting issuer in any province or territory subsequent to the issue of the Units by virtue of the Corporation having filed and been receipted for a final prospectus, and if the above resale restriction is therefore no longer applicable, then the Holder may exchange the certificates representing the Unit Shares and Warrants for certificates bearing no such legend.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(pp)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>If, upon the exercise of the Agent&#146;s Warrants, the issuance of the Units has not been registered by an effective registration statement (a &#147;</font><b><font size=2>Registration Statement</font></b><font size=2>&#148;) under the United States </font><i><font size=2>Securities Act of 1933</font></i><font size=2>, as&nbsp;amended (the &#147;</font><b><font size=2>1933 Act</font></b><font size=2>&#148;) and applicable state securities laws, then the certificates representing the Unit Shares and Warrants shall bear the following legend:</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:1in;text-align:justify;'><font size=2>THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN OFFERED AND SOLD IN AN &#147;OFFSHORE TRANSACTION&#148; IN RELIANCE UPON REGULATION S AS PROMULGATED BY THE SECURITIES AND EXCHANGE COMMISSION. ACCORDINGLY, THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE &#147;1933 ACT&#148;) AND MAY </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="316" style='border-collapse:collapse'>
    <tr >
        <td width="280" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>{00080488.5 / 0831-002}</font></p> </td>
        <td width="36" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>13</font></p> </td> </tr></table>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:1in;text-align:justify;'>
<font SIZE=2>NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH REGULATION S, PURSUANT TO REGISTRATION UNDER THE 1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE 1933 ACT, THE AVAILABILITY OF WHICH IS TO BE ESTABLISHED TO THE SATISFACTION OF THE COMPANY. THE SECURITIES REPRESENTED BY THIS CERTIFICATE CANNOT BE THE SUBJECT OF HEDGING TRANSACTIONS UNLESS SUCH TRANSACTIONS ARE CONDUCTED IN COMPLIANCE WITH THE 1933 ACT;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:1in;text-align:justify;'><font size=2>provided that if the Unit Shares and Warrants comprising the Units are registered for resale pursuant to a Registration Statement subsequent to the issue of the Units and the above resale restriction is therefore no longer applicable, then the Holder may exchange the certificates representing the Unit Shares and Warrants for certificates bearing no such legend.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(qq)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>If, upon the exercise of the Agent&#146;s Warrants, the resale of the Warrants by the holder and the issuance by the Corporation of the Warrant Shares upon exercise of the Warrants are not registered by an effective registration statement under the 1933 Act, then the certificates representing the Warrants shall bear the following legend:</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:0.98in;text-align:justify;'><font size=2>THIS WARRANT AND THE SECURITIES TO BE ISSUED UPON ITS EXERCISE HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE &#147;1933 ACT&#148;). THIS WARRANT MAY NOT BE EXERCISED IN THE UNITED STATES OR BY OR ON BEHALF OF ANY U.S. PERSON OR PERSON IN THE UNITED STATES UNLESS SUCH EXERCISE IS PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT AND APPLICABLE STATE SECURITIES LAWS OR AN EXEMPTION FROM REGISTRATION IS AVAILABLE, AND THE COMPANY SHALL HAVE RECEIVED AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO IT TO SUCH EFFECT.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><u><font size=2>Adjustments</font></u></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.56in;text-align:justify;'><font size=2>For purposes of this section, the terms &#147;</font><b><font size=2>record date</font></b><font size=2>&#148; and &#147;</font><b><font size=2>effective date</font></b><font size=2>&#148; where used herein shall mean the close of business on the relevant date. </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.56in;text-align:justify;'><font size=2>For the purposes of this section, &#147;</font><b><font size=2>Current Market Price</font></b><font size=2>&#148; at any date, means the weighted average price per share at which the shares of common stock of the Corporation (the &#147;</font><b><font size=2>Shares</font></b><font size=2>&#148;) have traded on any over-the-counter market during the 20 consecutive trading days (on each of which at least 500 Shares are traded in board lots) ending the second trading day </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="316" style='border-collapse:collapse'>
    <tr >
        <td width="280" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>{00080488.5 / 0831-002}</font></p> </td>
        <td width="36" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>14</font></p> </td> </tr></table>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'>
<font size=2>before such date and the weighted average price shall be determined by dividing the aggregate sale price of all Shares sold in board lots on the exchange or market, as the case may be, during the 20 consecutive trading days by the number of Shares sold, or if not traded on any market or exchange or bulletin board, as determined by the directors of the Corporation reasonably.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>The Exercise Price and the number and type of securities issuable upon exercise of the Agent&#146;s Warrants shall be subject to adjustment from time to time in the events and in the manner provided as follows:</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(rr)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>If prior to the Time of Expiry the Corporation shall</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(i)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>issue to all or substantially all the holders of the Shares, by way of a stock distribution, stock dividend or otherwise, Shares or securities convertible into Shares; or</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(ii)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>subdivide its outstanding Shares into a greater number of shares; or</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(iii)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>combine or consolidate its outstanding Shares into a smaller number of shares,</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="556" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="460" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(any of these events being herein called a &#147;</font><b><font size=2>Share Reorganization</font></b><font size=2>&#148;),</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:justify;'><font size=2>the Exercise Price shall be adjusted effective immediately after the record date at which the holders of Shares are determined for the purposes of the Share Reorganization to a price that is determined by multiplying the Exercise Price in effect on the record date by a fraction:</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(A)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the numerator of which shall be the number of Shares outstanding on the record date before giving effect to the Share Reorganization; and</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(B)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the denominator of which shall be the number of Shares outstanding after giving effect to the Share Reorganization.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:justify;'><font size=2>For the purposes of determining the number of Shares outstanding at any particular time for the purpose of the foregoing calculation subsection, there shall be included that number of Shares which would have resulted from the conversion at that time of all outstanding convertible securities.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(ss)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>If prior to the Time of Expiry the Corporation shall issue rights, options or warrants to all or substantially all the holders of the Shares pursuant to which those holders are entitled to subscribe for, purchase or otherwise acquire Shares or convertible securities within a period of 45 days from the date of issue thereof at a price, or at a conversion price, of less than 95% of the Current Market Price at the record date for such distribution (any such issuance being herein called a &#147;</font><b><font size=2>Rights</font></b><font size=2> </font><b><font size=2>Offering</font></b><font size=2>&#148; and Shares that may be acquired in exercise of the Rights Offering or upon conversion of the convertible securities offered by the Rights Offering being </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="316" style='border-collapse:collapse'>
    <tr >
        <td width="280" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>{00080488.5 / 0831-002}</font></p> </td>
        <td width="36" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>15</font></p> </td> </tr></table>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:1in;text-align:justify;'>
<font size=2>herein called the &#147;</font><b><font size=2>Offered Shares</font></b><font size=2>&#148;), the Exercise Price shall be adjusted effective immediately after the record date at which holders of Shares are determined for the purposes of the Rights Offering to a price that is determined by multiplying the Exercise Price in effect on the record date by a fraction:</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(i)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the numerator of which shall be the sum of:</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(A)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the number of Shares outstanding on the record date for the Rights Offering; and</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(B)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the number arrived at when (A) either the product of (1) the number of Offered Shares so offered and (2) the price at which those Shares are offered, or the product of (3) the conversion price thereof and (4) the maximum number of Offered Shares for or into which the convertible securities so offered pursuant to the Rights Offering may be converted, as the case may be, is divided by (B) the Current Market Price of the Shares on the record date; and</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(ii)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the denominator of which shall be the sum of (i) the number of Shares outstanding on the record date plus (ii) the number of Offered Shares offered pursuant to the Rights Offering or the maximum number of Offered Shares into which the convertible securities so offered pursuant to the Rights Offering may be converted, as the case may be.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:1in;text-align:justify;'><font size=2>Any Offered Shares owned by or held for the account of the Corporation shall be deemed not to be outstanding for the purpose of any computation; if all the rights, options or warrants are not so issued or if all rights, options or warrants are not exercised prior to the expiration thereof, the Exercise Price shall be readjusted to the Exercise Price in effect immediately prior to the record date and the Exercise Price shall be further adjusted based upon the number of Offered Shares (or convertible securities into Offered Shares) actually delivered upon the exercise of the rights, options or warrants, as the case may be, but subject to any other adjustment required hereunder by reason of any event arising after that record date.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(tt)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>If prior to the Time of
Expiry the Corporation shall issue or distribute to all or substantially all the holders of the Shares (i) shares of any class other
than Shares, or (ii) rights, options or warrants other than rights, options or warrants exercisable within 45 days from the date of
issue thereof at a price, or at a conversion price, of at least 95% of the Current Market Price at the record date for such
distribution, or (iii) evidences of indebtedness, or (iv) any other assets and that issuance or distribution does not constitute a
Share Reorganization or a Rights Offering (any of those events being herein called a &#147;</font><b><font size=2>Special
Distribution</font></b><font size=2>&#148;), the Exercise Price shall be adjusted effective immediately after the record date at
which the holders of Shares are determined for purposes of the Special Distribution to a price determined by multiplying the
Exercise Price in effect on the record date by a fraction:</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="316" style='border-collapse:collapse'>
    <tr >
        <td width="280" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>{00080488.5 / 0831-002}</font></p> </td>
        <td width="36" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>16</font></p> </td> </tr></table>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(i)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the numerator of which shall be:</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(A)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the product of (A) the sum of the number of Shares outstanding on the record date plus the number of Shares which the Holders of Agent&#146;s Warrants would be entitled to receive upon exercise of their Agent&#146;s Warrants if they were exercised on the record date and (B) the Current Market Price thereof on that date;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="187" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="43" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>less</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(B)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the aggregate fair market value, as determined by the directors, whose determination shall, absent manifest error, be conclusive, of the shares, rights, options, warrants, evidences of indebtedness or other assets issued or distributed in the Special Distribution; and</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(ii)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the denominator of which shall be the product of (i) the sum of the number of Shares outstanding on the record date plus the number of Shares which the Holders of Agent&#146;s Warrants would be entitled to receive upon exercise of all their Agent&#146;s Warrants if they were exercised on the record date and (ii) the Current Market Price thereof on that date. </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:1in;text-align:justify;'><font size=2>Any Shares owned by or held for the account of the Corporation shall be deemed not to be outstanding for the purpose of any such computation. To the extent that the distribution of shares, rights, options, warrants, evidences of indebtedness or assets if not so made or to the extent that any rights, options or warrants so distributed are not exercised, the Exercise Price shall be readjusted to the Exercise Price that would then be in effect based upon the shares, rights, options, warrants, evidences of indebtedness or assets actually distributed or based upon the number of Shares or convertible securities actually delivered upon the exercise of the rights, options or warrants, as the case may be, but subject to any other adjustment required hereunder by reason of any event arising after the record date.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(uu)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>If prior to the Time of Expiry there is a reorganization of the Corporation not otherwise provided for in paragraph (b) above, or a consolidation or merger or amalgamation of the Corporation with or into another body corporate including a transaction whereby all or substantially all of the Corporation&#146;s undertaking and assets become the property of any other corporation (any such event being herein called a &#147;</font><b><font size=2>Capital Reorganization</font></b><font size=2>&#148;) any holder of an Agent&#146;s Warrant shall be entitled to receive and shall accept, upon the exercise of his or her right at any time after the effective date of the Capital Reorganization, in lieu of the number of securities to which the Holder was theretofore entitled upon exercise of the Agent&#146;s Warrant, the aggregate number of
securities or property of the Corporation, or the continuing, successor or purchasing person, as the case may </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="316" style='border-collapse:collapse'>
    <tr >
        <td width="280" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>{00080488.5 / 0831-002}</font></p> </td>
        <td width="36" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>17</font></p> </td> </tr></table>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:1in;text-align:justify;'>
<font size=2>be, under the Capital Reorganization that the Holder would have been entitled to receive as a result of the Capital Reorganization if, on the effective date thereof, the Holder had been the holder of the number of securities to which immediately before the transaction the Holder was entitled upon exercise of the Agent&#146;s Warrants. No Capital Reorganization shall be carried into effect unless all necessary steps shall have been taken so that the Holders of Agent&#146;s Warrants shall thereafter be entitled to receive the number of securities or property of the Corporation or of the continuing, successor or purchasing person, as the case may be, under the Capital Reorganization, subject to adjustment thereafter in accordance with provisions the same, as nearly as may be possible, as those contained in this section and under &#147;Adjustment Rules&#148; below.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(vv)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>If the Corporation shall reclassify or otherwise change the outstanding Shares, the exercise right shall be adjusted effective immediately upon the reclassification becoming effective so that Holders of Agent&#146;s Warrants shall be entitled to receive that number of Units as they would have received had the Agent&#146;s Warrants been exercised immediately prior to the effective date, subject to adjustment thereafter in accordance with provisions the same, as nearly as may be possible, as those contained in this section and under &#147;Adjustment Rules&#148; below.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><u><font size=2>Adjustment Rules</font></u></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.5in;text-align:justify;'><font size=2>The following rules and procedures shall be applicable to adjustments made pursuant to foregoing section:</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(ww)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The adjustments and readjustments provided for in this certificate are cumulative and, subject to paragraph (b) below, shall apply (without duplication) to successive issues, subdivisions, combinations, consolidations, distributions and any other events that require adjustment of the Exercise Price or the number or kind of securities purchasable hereunder.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(xx)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>No adjustment in the Exercise Price shall be required unless the adjustment would result in a change of at least 1% in the Exercise Price then in effect, provided, however, that any adjustments that, except for the provisions of this subsection would otherwise have been required to be made, shall be carried forward and taken into account in any subsequent adjustment.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(yy)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>On any adjustment to the Exercise Price pursuant to paragraphs (b) and (c) under &#147;Adjustments&#148; above, including any readjustment, the number of Units issuable on exercise of an Agent&#146;s Warrant (the &#147;</font><b><font size=2>Exchange Number</font></b><font size=2>&#148;) will be adjusted, effective at the same time at the same time as the adjustment of the Exercise Price by multiplying the number of Units so issuable immediately before the adjustment by a fraction which is the reciprocal of the fraction used in the adjustment of the Exercise Price. </font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(zz)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>No adjustment in the
Exercise Price shall be made in respect of any event described in paragraph (b)(i) and (c) and (d) above under
&#147;Adjustments&#148; if the Holders of the Agent&#146;s Warrants are entitled to participate in the event on the same terms,
</font><i><font size=2>mutatis mutandis</font></i><font size=2>, as if their Agent&#146;s Warrants had been exercised immediately
prior to the effective date or record date of the event.</font></p> </td> </tr></table>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(aaa)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>No adjustment in the Exercise Price shall be made pursuant to this certificate in respect of the issue of Shares pursuant to:</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="316" style='border-collapse:collapse'>
    <tr >
        <td width="280" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>{00080488.5 / 0831-002}</font></p> </td>
        <td width="36" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>18</font></p> </td> </tr></table>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(i)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>this certificate; or</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(ii)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the issuance of Shares pursuant to the exercise of options granted pursuant to the Corporation&#146;s stock option plans or pursuant to the exercise of rights under currently outstanding warrants to acquire Shares,</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:1in;text-align:justify;'><font size=2>and any such issue shall be deemed not to be a Share Reorganization, a Rights Offering or a Special Distribution.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(bbb)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>If a dispute shall at any time arise with respect to adjustments of the Exercise Price, the dispute shall be conclusively determined by the Corporation&#146;s auditors or, if they are unable or unwilling to act, by such firm of independent chartered accountants as may be selected by the directors and any such determination shall, absent manifest error, be binding upon the Corporation and all Holders of Agent&#146;s Warrants.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(ccc)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>If and whenever at any time prior to the Time of Expiry, the Corporation shall take any action affecting or relating to the Shares, other than any action described in this section, which in the opinion of the directors of the Corporation would prejudicially affect the rights of any holders of Agent&#146;s Warrants, the Exercise Price will be adjusted by the directors of the Corporation in such manner, if any, and at such time, as the directors of the Corporation, may in their sole discretion, subject to the approval of any stock exchange on which the Shares are listed and posted for trading, reasonably determine to be equitable in the circumstances to such holders.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(ddd)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>As a condition precedent to the taking of any action which would require an adjustment in any of the rights under the Agent&#146;s Warrants, the Corporation will take any action which, in the opinion of counsel to the Corporation , may be necessary in order that the Corporation, or any successor to the Corporation or successor to the undertaking or assets of the Corporation will be obligated to and may validly and legally issue all the Units which the holders of the Agent&#146;s Warrants would be entitled to receive thereafter and to exercise such Agent&#146;s Warrants in accordance with the provisions hereof.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.5in;text-align:justify;'><font size=2>In any case where the application
of the adjustment rules results in an increase in the number of Units issuable upon exercise of the Agent&#146;s Warrants taking
effect immediately after the record date for or occurrence of a specific event, if the Agent&#146;s Warrants are exercised after
that record date or occurrence and prior to completion of the event or of the period for which a calculation is required to be made,
the Corporation may postpone the issuance to the Holder of the Agent&#146;s Warrants of the additional Units to which the Holder is
entitled by reason of the event but the Units shall be so issued and delivered to that Holder upon completion of that event or
period, with the number of those Units calculated on the basis of the Exchange Number on the Exercise Date adjusted for completion
of that event or period, and the Corporation shall forthwith after the Exercise Date deliver to the person or persons in whose name
or names the additional Units are to be issued an appropriate instrument evidencing the person&#146;s or persons&#146; right to
receive the Units.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="316" style='border-collapse:collapse'>
    <tr >
        <td width="280" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>{00080488.5 / 0831-002}</font></p> </td>
        <td width="36" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>19</font></p> </td> </tr></table>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.56in;text-align:justify;'><font size=2>Promptly upon the occurrence of the earlier of the effective date of or the record date for any event referred to above that requires an adjustment in the Exercise Price and/or Exchange Number, the Corporation shall give notice to the Holders of Agent&#146;s Warrants of the particulars of the event and, if determinable, the adjustment.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><u><font size=2>Covenants</font></u></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>The Corporation covenants with the Holder of the Agent&#146;s Warrants evidenced by this certificate as follows:</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(eee)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The Corporation will at all times maintain its existence and will carry on and conduct its business in a prudent manner in accordance with industry standards and good business practice and will keep or cause to be kept proper books of account in accordance with applicable law.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(fff)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The Corporation will reserve and keep available a sufficient number of Shares for issuance upon the exercise of the Agent&#146;s Warrants and a sufficient number of Shares for issuance upon the exercise of the Warrants underlying the Agent&#146;s Warrants.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(ggg)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>In the event that the Qualification Conditions were not satisfied by the Qualification Date, the Corporation agrees to file a Registration Statement and use its commercially reasonable efforts to cause the Registration Statement to become effective within 90 days of the date of this certificate in order to register the resale of the Unit Shares and the Warrants underlying the Subscription Receipts and Agent&#146;s Warrants issued pursuant to the agency agreement dated November 9, 2005 (the &#147;</font><b><font size=2>Agency</font></b><font size=2> </font><b><font size=2>Agreement</font></b><font size=2>&#148;) between the Corporation and Loewen, Ondaatje, McCutcheon Limited (the &#147;</font><b><font size=2>Agent</font></b><font size=2>&#148;) and the issuance of the Warrant Shares upon exercise of such Warrants. The
Corporation further agrees that it shall cause such registration statement to remain effective and available for use by the holder until the later of November 9, 2007 and a date which is 10 days after all of the Warrants have been exercised or have expired. Capitalized terms used in this paragraph but not otherwise defined in this certificate shall have the meanings ascribed to such terms in the Agency Agreement.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(hhh)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>All Shares that shall be issued by the Corporation upon exercise of the rights provided for herein shall be issued as fully paid and non-assessable Shares.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><u><font size=2>Amendments and Modifications</font></u></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>The Corporation, with the consent of the Agent, may make certain amendments or modifications to this certificate without obtaining the consent of the Holder only to the extent that such amendments or modifications are intended to correct ambiguities or errors in this certificate or are deemed necessary by the Corporation and the Agent under applicable securities and other laws in order to protect the rights of the Holder hereunder and provided that such amendments or modifications do not prejudice in any way the rights of the Holder hereunder. In the event of such amendment or modification, the Corporation shall provide a replacement Agent&#146;s Warrant certificate to the Holder along with an explanation of the reasons for the change.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="316" style='border-collapse:collapse'>
    <tr >
        <td width="280" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>{00080488.5 / 0831-002}</font></p> </td>
        <td width="36" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>20</font></p> </td> </tr></table>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><u><font size=2>General</font></u></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>The laws of the Province of Ontario and the federal laws of Canada applicable therein shall govern the Agent&#146;s Warrants.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>The holding of the Agent&#146;s Warrants evidenced by this certificate shall not constitute the Holder hereof a shareholder of the Corporation or entitle the Holder to any right or interest in respect thereof except as expressly provided in this certificate. </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>Time shall be of the essence hereof.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>This certificate shall enure to the benefit of and shall be binding upon the Corporation and its successors and assigns.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>This certificate shall not be valid for any purpose whatever unless and until it has been signed by or on behalf of the Corporation by any one director or officer of the Corporation. The signature of such director or officer may be mechanically reproduced by facsimile and a certificate bearing a facsimile signature shall be binding upon the Corporation as if it had been manually signed by the director or officer. </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:1in;text-align:justify;'><font size=2>IN WITNESS WHEREOF the Corporation has caused this certificate to be signed by an authorized officer.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:1in;text-align:justify;'><font size=2>DATED as of the ____ day of _____________, 200____.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:left;'><B><font SIZE=2>ADSERO CORP.</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:left;'><font size=2>Per: ___________________________________</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="381" style='border-collapse:collapse'>
    <tr >
        <td width="320" valign=top >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Name:</font></p> </td> </tr>
    <tr >
        <td width="320" valign=top >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="53" valign=top >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Title:</font></p> </td>
        <td  width="8">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="316" style='border-collapse:collapse'>
    <tr >
        <td width="280" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>{00080488.5 / 0831-002}</font></p> </td>
        <td width="36" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>21</font></p> </td> </tr></table>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font size=2>SCHEDULE &#147;A&#148;</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Election to Purchase</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>The undersigned hereby irrevocably elects to exercise the number of Agent&#146;s Warrants of Adsero Corp. set out below for the number of Units (or other property or securities subject thereto) as set forth below:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="527" style='margin-left:.45in;border-collapse:collapse'>
    <tr >
        <td width="412" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Number of Agent&#146;s Warrants to be Exercised:</font></p> </td>
        <td width="115" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>____________</font></p> </td> </tr>
    <tr >
        <td width="412" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="115" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="412" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.5in;text-indent:-.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Number of Units to be Acquired:</font></p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>____________</font></p> </td> </tr>
    <tr >
        <td width="412" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="115" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="412" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exercise Price:</font></p> </td>
        <td width="115" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$___________</font></p> </td> </tr>
    <tr >
        <td width="412" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="115" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="412" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Aggregate Purchase Price </font><i><font size=2>[(b) multiplied by (c)]</font></i></p> </td>
        <td width="115" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$___________</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><font size=2>and hereby tenders a cheque or bank draft for such aggregate purchase price, and directs that the Unit Shares and Warrants comprising the Units be registered and certificates therefor to be issued as directed below.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><font size=2>The undersigned represents, warrants and certifies as follows (one (only) of the following must be checked):</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table width="600" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse'>
    <tr style='page-break-inside:avoid; height:23.35pt'>
        <td width="67" rowspan=2 valign=top style='border-right: solid black 1.0pt;padding: 0in 5.4pt 0in 5.4pt;height:23.35pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:12pt'><font size=2>Box A</font></p> </td>
        <td width="42" valign=top style='border:solid black 1.0pt;border-color:black; border-left:none;padding:0in 5.4pt 0in 5.4pt;height:23.35pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="529" rowspan=2 valign=top style=' padding:0in 5.4pt 0in 5.4pt; height:23.35pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:12pt'><font size=2>The undersigned holder (i) at the time of exercise of this Agent&#146;s Warrant is not in the United States; (ii) is not a &#147;U.S. person&#148; as defined in Regulation S under the United States </font><i><font size=2>Securities Act of 1933</font></i><font size=2>, as amended (the &#147;1933 Act&#148;) and is not exercising this Agent&#146;s Warrant on behalf of a &#147;U.S. person&#148; or a person in the United States; and (iii) did not execute or deliver this Election to Purchase form in the United States.</font></p> </td> </tr>
    <tr style='page-break-inside:avoid;height:40.5pt'>
        <td width="42" valign=top style='border-bottom:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt; height:40.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid; height:26.95pt'>
        <td width="67" valign=top style='border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:23.35pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:12pt'><font size=2>Box B</font></p> </td>
        <td width="42" valign=top style='border-top:none;border-left:none; border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt;height:26.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="529" valign=top style='padding:0in 5.4pt 0in 5.4pt;height:26.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:12pt'><font size=2>The undersigned holder has delivered to the Corporation an opinion of counsel (which will not be sufficient unless it is in form and substance satisfactory to the Corporation) to the effect that the exercise is pursuant to an effective registration statement under the 1933 Act and applicable state securities laws or that an exemption from the registration requirements of the 1933 Act and applicable state securities laws is available.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><font size=2>The undersigned holder understands that unless the exercise is pursuant to an effective registration statement under the 1933 Act, the certificates representing the Units will bear legends restricting transfer without registration under the 1933 Act and applicable state securities laws unless an exemption from registration is available.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="316" style='border-collapse:collapse'>
    <tr >
        <td width="280" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>{00080488.5 / 0831-002}</font></p> </td>
        <td width="36" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>22</font></p> </td> </tr></table>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:1in;text-align:justify;'><font size=2>DATED this ______ day of _______________, _______.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="556" style='border-collapse:collapse'>
    <tr >
        <td width="240" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>witness:</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td width="268" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="240" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Holder&#146;s Name</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="556" style='border-collapse:collapse'>
    <tr >
        <td width="240" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="25" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td   colspan="4">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="240" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="240" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Authorized Signature</font></p> </td>
        <td  width="112">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="240" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="25" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td   colspan="4">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="240" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="240" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td width="143" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Title (if applicable)</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="240" ></td>

        <td width="25" ></td>

        <td width="23" ></td>

        <td width="143" ></td>

        <td width="13" ></td>

        <td width="112" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="498" style='margin-left:0in;border-collapse:collapse'>
    <tr >
        <td width="288" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><u><i><font size=2>Direction as to Registration</font></i></u><i><u></u></i></p> </td>
        <td width="210" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="288" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="210" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="288" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><i><font size=2>Name of Registered Holder:</font></i><i></i></p> </td>
        <td width="210" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="288" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Address of Registered Holder:</font></i><i></i></p> </td>
        <td width="210" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="288" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><i>&nbsp;</i></p> </td>
        <td width="210" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="288" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i>&nbsp;</i></p> </td>
        <td width="210" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="288" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><i>&nbsp;</i></p> </td>
        <td width="210" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="288" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i>&nbsp;</i></p> </td>
        <td width="210" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="288" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><i>&nbsp;</i></p> </td>
        <td width="210" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="288" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i>&nbsp;</i></p> </td>
        <td width="210" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Note</font></b><font size=2>: Certificates will not be registered or delivered to an address in the United States unless Box B above is checked and the applicable requirements are complied with.</font></p>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<BR>

<table border="0" cellspacing=0 cellpadding=0 width="316" style='border-collapse:collapse'>
    <tr >
        <td width="280" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>{00080488.5 / 0831-002}</font></p> </td>
        <td width="36" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>23</font></p> </td> </tr></table>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font size=2>SCHEDULE &#147;B&#148;</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Form of Warrant Certificate</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><B><font SIZE=2>THE WARRANT REPRESENTED BY THIS WARRANT CERTIFICATE IS VOID AND OF NO EFFECT IF NOT EXERCISED PRIOR TO 5:00 P.M. (TORONTO TIME) ON MAY 9, 2008.</font></B></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><b><font size=2>[UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THESE SECURITIES MUST NOT TRADE THE SECURITIES IN CANADA BEFORE THE DATE THAT IS 4 MONTHS AND A DAY AFTER THE LATER OF (i) NOVEMBER 9, 2005, AND (ii) THE DATE THE ISSUER BECOMES A REPORTING ISSUER IN ANY PROVINCE OR TERRITORY.]</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><b><font size=2>[THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN OFFERED AND SOLD IN AN &#147;OFFSHORE TRANSACTION&#148; IN RELIANCE UPON REGULATION S AS PROMULGATED BY THE SECURITIES AND EXCHANGE COMMISSION. ACCORDINGLY, THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE &#147;1933 ACT&#148;) AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH REGULATION S, PURSUANT TO REGISTRATION UNDER THE 1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE 1933 ACT, THE AVAILABILITY OF WHICH IS TO BE ESTABLISHED TO THE SATISFACTION OF THE COMPANY. THE SECURITIES REPRESENTED BY THIS CERTIFICATE CANNOT BE THE SUBJECT OF HEDGING TRANSACTIONS UNLESS SUCH TRANSACTIONS ARE CONDUCTED IN COMPLIANCE WITH THE 1933 ACT.]</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><b><font size=2>[THIS WARRANT AND THE SECURITIES TO BE ISSUED UPON ITS EXERCISE HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE &#147;1933 ACT&#148;). THIS WARRANT MAY NOT BE EXERCISED IN THE UNITED STATES OR BY OR ON BEHALF OF ANY U.S. PERSON OR PERSON IN THE UNITED STATES UNLESS SUCH EXERCISE IS PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT AND APPLICABLE STATE SECURITIES LAWS OR AN EXEMPTION FROM REGISTRATION IS AVAILABLE, AND THE COMPANY SHALL HAVE RECEIVED AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO IT TO SUCH EFFECT.]</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:right;'><b><font size=2>Certificate No.</font></b><font size=2>&nbsp;</font><b><font size=2>&#149;</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><B><font SIZE=2>ADSERO CORP.</font></B></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font size=2>&#149; [Insert Date]</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="316" style='border-collapse:collapse'>
    <tr >
        <td width="280" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>{00080488.5 / 0831-002}</font></p> </td>
        <td width="36" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>24</font></p> </td> </tr></table>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><B><font SIZE=2>COMMON SHARE PURCHASE WARRANT CERTIFICATE</font></B></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>THIS IS TO CERTIFY THAT, for value received, &#149; (the &#147;</font><b><font size=2>Holder</font></b><font size=2>&#148;), is the registered holder of </font><font size=4><b>&#149;</b></font><font size=2> common share purchase warrants (each, a &#147;</font><b><font size=2>Warrant</font></b><font size=2>&#148;) of Adsero Corp. (the &#147;</font><b><font size=2>Corporation</font></b><font size=2>&#148;). Each Warrant shall entitle the Holder to purchase, subject to any adjustment as described herein, one share of common stock of the Corporation (a &#147;</font><b><font size=2>Warrant Share</font></b><font size=2>&#148;) at a price of U.S.$1.25, subject to any adjustment as described herein (the &#147;</font><b><font size=2>Exercise Price</font></b><font size=2>&#148;) during the period ending at 5:00 p.m. (Toronto time) on May 9, 2008 (the &#147;</font><b><font size=2>Time of
Expiry</font></b><font size=2>&#148;).  </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><u><font size=2>Exercise</font></u></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>The rights evidenced by this certificate may be exercised by the Holder in whole or in part and in accordance with the provisions hereof by delivery of the election to purchase substantially in the form attached as Schedule &#147;A&#148;, properly completed and executed, together with payment of the Exercise Price for the number of Warrant Shares specified in the election to purchase form to the Corporation, at 2101 Nobel Street, Sainte-Julie, Quebec J3E 1Z8 or such other address of which the Holder may be notified in writing by the Corporation (the &#147;</font><b><font size=2>Corporation Office</font></b><font size=2>&#148;). In the event that the rights evidenced by this certificate are exercised in part, the Corporation shall, contemporaneously with the issuance of the Warrant Shares issuable on the exercise of the Warrants so exercised, issue to the Holder a certificate on
identical terms in respect of that number of Warrants in respect of which the Holder has not exercised the rights evidenced by this certificate.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>The Corporation shall, on the business day following the date it receives a duly executed election to purchase form along with the Warrant certificate and the Exercise Price for the number of Warrant Shares specified in the election to purchase form (the &#147;</font><b><font size=2>Exercise Date</font></b><font size=2>&#148;), issue that number of Warrant Shares, dated the Exercise Date, specified in the election to purchase form, as fully paid and non-assessable shares of common stock of the Corporation.</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>The Corporation shall deliver to the Holder at the Holder&#146;s registered address specified in the election to purchase form certificates representing the Warrant Shares within three business days of the Exercise Date. </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.56in;text-align:justify;'><font size=2>No fractional Warrant Shares shall be issued upon the exercise of any Warrants. Where the Warrants would otherwise entitle the Holder to fractional Warrant Shares, that number of Warrant Shares shall be rounded up to the next whole number. </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><u><font size=2>Replacement of Certificates</font></u></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>Upon receipt of evidence satisfactory to the Corporation of the loss, theft, destruction or mutilation of this certificate and, if requested by the Corporation, upon delivery of a bond of indemnity satisfactory to the Corporation (or, in the case of mutilation, upon surrender of this certificate), the Corporation will issue to the Holder a replacement certificate containing the same terms and conditions as this certificate. The Holder shall pay the reasonable charges of the Corporation in connection with any such replacement.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="316" style='border-collapse:collapse'>
    <tr >
        <td width="280" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>{00080488.5 / 0831-002}</font></p> </td>
        <td width="36" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>25</font></p> </td> </tr></table>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><u><font size=2>Transfer of Warrants</font></u></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>The Warrants represented by this certificate are transferable, subject to the resale restrictions described herein, at the Corporation Office, upon completion of the assignment form attached hereto as Schedule &#147;B&#148;.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><u><font size=2>Legends</font></u></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>The certificates representing the Warrant Shares issued upon the exercise of the Warrants may be subject to certain resale restrictions as evidenced by legends on the certificates, as set forth below.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(iii)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>If, upon the exercise of the Warrants, the issuance of the Warrant Shares has not been qualified in Canada by a final prospectus of the Corporation, then the certificates representing the Warrant Shares shall bear the following legend:</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:1in;text-align:justify;'><font size=2>UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THESE SECURITIES MUST NOT TRADE THE SECURITIES IN CANADA BEFORE THE DATE THAT IS 4 MONTHS AND A DAY AFTER THE LATER OF (i) NOVEMBER 9, 2005, AND (ii) THE DATE THE ISSUER BECOMES A REPORTING ISSUER IN ANY PROVINCE OR TERRITORY;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:1in;text-align:justify;'><font size=2>provided that if the Corporation becomes a reporting issuer in any province or territory subsequent to the issue of the Warrant Shares by virtue of the Corporation having filed and been receipted for a final prospectus, and if the above resale restriction is therefore no longer applicable, then the Holder may exchange the certificates representing the Warrant Shares for certificates bearing no such legend.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(jjj)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>If, upon the exercise of the Warrants, the issuance of the Warrant Shares has not been registered by an effective registration statement (a &#147;</font><b><font size=2>Registration Statement</font></b><font size=2>&#148;) under the United States </font><i><font size=2>Securities Act of 1933</font></i><font size=2>, as&nbsp;amended (the &#147;</font><b><font size=2>1933 Act</font></b><font size=2>&#148;) and applicable state securities laws, then the certificates representing the Warrant Shares shall bear the following legend:</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:1in;text-align:justify;'><font size=2>THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN OFFERED AND SOLD IN AN &#147;OFFSHORE TRANSACTION&#148; IN RELIANCE UPON REGULATION S AS PROMULGATED BY THE SECURITIES AND EXCHANGE COMMISSION. ACCORDINGLY, THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE &#147;1933 ACT&#148;) AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH REGULATION S, PURSUANT TO REGISTRATION UNDER THE 1933 ACT, OR </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="316" style='border-collapse:collapse'>
    <tr >
        <td width="280" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>{00080488.5 / 0831-002}</font></p> </td>
        <td width="36" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>26</font></p> </td> </tr></table>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:1in;text-align:justify;'>
<font SIZE=2>PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE 1933 ACT, THE AVAILABILITY OF WHICH IS TO BE ESTABLISHED TO THE SATISFACTION OF THE COMPANY. THE SECURITIES REPRESENTED BY THIS CERTIFICATE CANNOT BE THE SUBJECT OF HEDGING TRANSACTIONS UNLESS SUCH TRANSACTIONS ARE CONDUCTED IN COMPLIANCE WITH THE 1933 ACT;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:1in;text-align:justify;'><font size=2>provided that if the Warrant Shares are registered for resale pursuant to a Registration Statement subsequent to the issue of the Warrant Shares and the above resale restriction is therefore no longer applicable, then the Holder may exchange the certificates representing the Warrant Shares for certificates bearing no such legend.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><u><font size=2>Adjustments</font></u></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.56in;text-align:justify;'><font size=2>For purposes of this section, the terms &#147;</font><b><font size=2>record date</font></b><font size=2>&#148; and &#147;</font><b><font size=2>effective date</font></b><font size=2>&#148; where used herein shall mean the close of business on the relevant date. </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.56in;text-align:justify;'><font size=2>For the purposes of this section, &#147;</font><b><font size=2>Current Market Price</font></b><font size=2>&#148; at any date, means the weighted average price per share at which the shares of common stock of the Corporation (the &#147;</font><b><font size=2>Shares</font></b><font size=2>&#148;) have traded on any over-the-counter market during the 20 consecutive trading days (on each of which at least 500 Shares are traded in board lots) ending the second trading day before such date and the weighted average price shall be determined by dividing the aggregate sale price of all Shares sold in board lots on the exchange or market, as the case may be, during the 20 consecutive trading days by the number of Shares sold, or if not traded on any market or exchange or bulletin board, as determined by the directors of the Corporation reasonably.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>The Exercise Price and the number and type of securities issuable upon exercise of the Warrants shall be subject to adjustment from time to time in the events and in the manner provided as follows:</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(kkk)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>If prior to the Time of Expiry the Corporation shall</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(i)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>issue to all or substantially all the holders of the Shares, by way of a stock distribution, stock dividend or otherwise, Shares or securities convertible into Shares; or</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(ii)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>subdivide its outstanding Shares into a greater number of shares; or</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(iii)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>combine or consolidate its outstanding Shares into a smaller number of shares,</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="316" style='border-collapse:collapse'>
    <tr >
        <td width="280" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>{00080488.5 / 0831-002}</font></p> </td>
        <td width="36" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>27</font></p> </td> </tr></table>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
<font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>(any of these events being herein called a &#147;</font><b><font size=2>Share Reorganization</font></b><font size=2>&#148;),</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:justify;'><font size=2>the Exercise Price shall be adjusted effective immediately after the record date at which the holders of Shares are determined for the purposes of the Share Reorganization to a price that is determined by multiplying the Exercise Price in effect on the record date by a fraction:</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(A)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the numerator of which shall be the number of Shares outstanding on the record date before giving effect to the Share Reorganization; and</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(B)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the denominator of which shall be the number of Shares outstanding after giving effect to the Share Reorganization.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:justify;'><font size=2>For the purposes of determining the number of Shares outstanding at any particular time for the purpose of the foregoing calculation subsection, there shall be included that number of Shares which would have resulted from the conversion at that time of all outstanding convertible securities.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(lll)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>If prior to the Time of Expiry the Corporation shall issue rights, options or warrants to all or substantially all the holders of the Shares pursuant to which those holders are entitled to subscribe for, purchase or otherwise acquire Shares or convertible securities within a period of 45 days from the date of issue thereof at a price, or at a conversion price, of less than 95% of the Current Market Price at the record date for such distribution (any such issuance being herein called a &#147;</font><b><font size=2>Rights</font></b><font size=2> </font><b><font size=2>Offering</font></b><font size=2>&#148; and Shares that may be acquired in exercise of the Rights Offering or upon conversion of the convertible securities offered by the Rights Offering being herein called the &#147;</font><b><font size=2>Offered
Shares</font></b><font size=2>&#148;), the Exercise Price shall be adjusted effective immediately after the record date at which holders of Shares are determined for the purposes of the Rights Offering to a price that is determined by multiplying the Exercise Price in effect on the record date by a fraction:</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(i)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the numerator of which shall be the sum of:</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(A)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the number of Shares outstanding on the record date for the Rights Offering; and</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(B)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the number arrived at when (A) either the product of (1) the number of Offered Shares so offered and (2) the price at which those Shares are offered, or the product of (3) the conversion price thereof and (4) the maximum number of Offered Shares for or into which the convertible securities so offered pursuant to the Rights Offering may be converted, as the case may be, is divided by (B) the Current Market Price of the Shares on the record date; and</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="316" style='border-collapse:collapse'>
    <tr >
        <td width="280" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>{00080488.5 / 0831-002}</font></p> </td>
        <td width="36" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>28</font></p> </td> </tr></table>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(ii)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the denominator of which shall be the sum of (i) the number of Shares outstanding on the record date plus (ii) the number of Offered Shares offered pursuant to the Rights Offering or the maximum number of Offered Shares into which the convertible securities so offered pursuant to the Rights Offering may be converted, as the case may be.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:1in;text-align:justify;'><font size=2>Any Offered Shares owned by or held for the account of the Corporation shall be deemed not to be outstanding for the purpose of any computation; if all the rights, options or warrants are not so issued or if all rights, options or warrants are not exercised prior to the expiration thereof, the Exercise Price shall be readjusted to the Exercise Price in effect immediately prior to the record date and the Exercise Price shall be further adjusted based upon the number of Offered Shares (or convertible securities into Offered Shares) actually delivered upon the exercise of the rights, options or warrants, as the case may be, but subject to any other adjustment required hereunder by reason of any event arising after that record date.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(mmm)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>If prior to the Time of Expiry the Corporation shall issue or distribute to all or substantially all the holders of the Shares (i) shares of any class other than Shares, or (ii) rights, options or warrants other than rights, options or warrants exercisable within 45 days from the date of issue thereof at a price, or at a conversion price, of at least 95% of the Current Market Price at the record date for such distribution, or (iii) evidences of indebtedness, or (iv) any other assets and that issuance or distribution does not constitute a Share Reorganization or a Rights Offering (any of those events being herein called a &#147;</font><b><font size=2>Special Distribution</font></b><font size=2>&#148;), the Exercise Price shall be adjusted effective immediately after the record date at which the holders of Shares are determined
for purposes of the Special Distribution to a price determined by multiplying the Exercise Price in effect on the record date by a fraction:</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(i)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the numerator of which shall be:</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(A)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the product of (A) the sum of the number of Shares outstanding on the record date plus the number of Shares which the Holders of Warrants would be entitled to receive upon exercise of their Warrants if they were exercised on the record date and (B) the Current Market Price thereof on that date;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="187" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="43" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>less</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(B)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the aggregate fair market value, as determined by the directors, whose determination shall, absent manifest error, be conclusive, of the shares, rights, options, warrants, evidences of indebtedness or other assets issued or distributed in the Special Distribution; and</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="316" style='border-collapse:collapse'>
    <tr >
        <td width="280" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>{00080488.5 / 0831-002}</font></p> </td>
        <td width="36" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>29</font></p> </td> </tr></table>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(ii)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the denominator of which shall be the product of (i) the sum of the number of Shares outstanding on the record date plus the number of Shares which the Holders of Warrants would be entitled to receive upon exercise of all their Warrants if they were exercised on the record date and (ii) the Current Market Price thereof on that date. </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:1in;text-align:justify;'><font size=2>Any Shares owned by or held for the account of the Corporation shall be deemed not to be outstanding for the purpose of any such computation. To the extent that the distribution of shares, rights, options, warrants, evidences of indebtedness or assets if not so made or to the extent that any rights, options or warrants so distributed are not exercised, the Exercise Price shall be readjusted to the Exercise Price that would then be in effect based upon the shares, rights, options, warrants, evidences of indebtedness or assets actually distributed or based upon the number of Shares or convertible securities actually delivered upon the exercise of the rights, options or warrants, as the case may be, but subject to any other adjustment required hereunder by reason of any event arising after the record date.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(nnn)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>If prior to the Time of Expiry there is a reorganization of the Corporation not otherwise provided for in paragraph (b) above, or a consolidation or merger or amalgamation of the Corporation with or into another body corporate including a transaction whereby all or substantially all of the Corporation&#146;s undertaking and assets become the property of any other corporation (any such event being herein called a &#147;</font><b><font size=2>Capital Reorganization</font></b><font size=2>&#148;) any holder of a Warrant shall be entitled to receive and shall accept, upon the exercise of his or her right at any time after the effective date of the Capital Reorganization, in lieu of the number of securities to which the Holder was theretofore entitled upon exercise of the Warrant, the aggregate number of securities or property of
the Corporation, or the continuing, successor or purchasing person, as the case may be, under the Capital Reorganization that the Holder would have been entitled to receive as a result of the Capital Reorganization if, on the effective date thereof, the Holder had been the holder of the number of securities to which immediately before the transaction the Holder was entitled upon exercise of the Warrants. No Capital Reorganization shall be carried into effect unless all necessary steps shall have been taken so that the Holders of Warrants shall thereafter be entitled to receive the number of securities or property of the Corporation or of the continuing, successor or purchasing person, as the case may be, under the Capital Reorganization, subject to adjustment thereafter in accordance with provisions the same, as nearly as may be possible, as those contained in this section and under &#147;Adjustment Rules&#148; below.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(ooo)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>If the Corporation shall reclassify or otherwise change the outstanding Shares, the exercise right shall be adjusted effective immediately upon the reclassification becoming effective so that Holders of Warrants shall be entitled to receive that number of Warrant Shares as they would have received had the Warrants been exercised immediately prior to the effective date, subject to adjustment thereafter in accordance with provisions the same, as nearly as may be possible, as those contained in this section and under &#147;Adjustment Rules&#148; below.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="316" style='border-collapse:collapse'>
    <tr >
        <td width="280" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>{00080488.5 / 0831-002}</font></p> </td>
        <td width="36" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>30</font></p> </td> </tr></table>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><u><font size=2>Adjustment Rules</font></u></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.5in;text-align:justify;'><font size=2>The following rules and procedures shall be applicable to adjustments made pursuant to foregoing section:</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(ppp)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The adjustments and readjustments provided for in this certificate are cumulative and, subject to paragraph (b) below, shall apply (without duplication) to successive issues, subdivisions, combinations, consolidations, distributions and any other events that require adjustment of the Exercise Price or the number or kind of securities purchasable hereunder.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(qqq)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>No adjustment in the Exercise Price shall be required unless the adjustment would result in a change of at least 1% in the Exercise Price then in effect, provided, however, that any adjustments that, except for the provisions of this subsection would otherwise have been required to be made, shall be carried forward and taken into account in any subsequent adjustment.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(rrr)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>On any adjustment to the Exercise Price pursuant to paragraphs (b) and (c) under &#147;Adjustments&#148; above, including any readjustment, the number of Warrant Shares issuable on exercise of a Warrant (the &#147;</font><b><font size=2>Exchange Number</font></b><font size=2>&#148;) will be adjusted, effective at the same time at the same time as the adjustment of the Exercise Price by multiplying the number of Warrant Shares so issuable immediately before the adjustment by a fraction which is the reciprocal of the fraction used in the adjustment of the Exercise Price. </font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(sss)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>No adjustment in the Exercise Price shall be made in respect of any event described in paragraph (b)(i) and (c) and (d) above under &#147;Adjustments&#148; if the Holders of the Warrants are entitled to participate in the event on the same terms, </font><i><font size=2>mutatis mutandis</font></i><font size=2>, as if their Warrants had been exercised immediately prior to the effective date or record date of the event.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(ttt)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>No adjustment in the Exercise Price shall be made pursuant to this certificate in respect of the issue of Shares pursuant to:</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(i)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>this certificate; or</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(ii)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the issuance of Shares pursuant to the exercise of options granted pursuant to the Corporation&#146;s stock option plans or pursuant to the exercise of rights under currently outstanding warrants to acquire Shares,</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:1in;text-align:justify;'><font size=2>and any such issue shall be deemed not to be a Share Reorganization, a Rights Offering or a Special Distribution.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(uuu)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>If a dispute shall at
any time arise with respect to adjustments of the Exercise Price, the dispute shall be conclusively determined by the
Corporation&#146;s auditors or, if they are unable or unwilling to act, by such firm of independent chartered accountants as may be
selected by the directors and any such determination shall, absent manifest error, be binding upon the Corporation and all Holders
of Warrants.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="316" style='border-collapse:collapse'>
    <tr >
        <td width="280" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>{00080488.5 / 0831-002}</font></p> </td>
        <td width="36" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>31</font></p> </td> </tr></table>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(vvv)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>If and whenever at any time prior to the Time of Expiry, the Corporation shall take any action affecting or relating to the Shares, other than any action described in this section, which in the opinion of the directors of the Corporation would prejudicially affect the rights of any holders of Warrants, the Exercise Price will be adjusted by the directors of the Corporation in such manner, if any, and at such time, as the directors of the Corporation, may in their sole discretion, subject to the approval of any stock exchange on which the Shares are listed and posted for trading, reasonably determine to be equitable in the circumstances to such holders.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(www)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>As a condition precedent to the taking of any action which would require an adjustment in any of the rights under the Warrants, the Corporation will take any action which, in the opinion of counsel to the Corporation , may be necessary in order that the Corporation, or any successor to the Corporation or successor to the undertaking or assets of the Corporation will be obligated to and may validly and legally issue all the Warrant Shares which the holders of the Warrants would be entitled to receive thereafter and to exercise such Warrants in accordance with the provisions hereof.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.5in;text-align:justify;'><font size=2>In any case where the application of the adjustment rules  results in an increase in the number of Warrant Shares issuable upon exercise of the Warrants taking effect immediately after the record date for or occurrence of a specific event, if the Warrants are exercised after that record date or occurrence and prior to completion of the event or of the period for which a calculation is required to be made, the Corporation may postpone the issuance to the Holder of the Warrants of the additional Warrant Shares to which the Holder is entitled by reason of the event but the Warrant Shares shall be so issued and delivered to that Holder upon completion of that event or period, with the number of those Warrant Shares calculated on the basis of the Exchange Number on the Exercise Date adjusted for completion of that event or period, and the Corporation shall forthwith after the Exercise Date
deliver to the person or persons in whose name or names the additional Warrant Shares are to be issued an appropriate instrument evidencing the person&#146;s or persons&#146; right to receive the Warrant Shares.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.56in;text-align:justify;'><font size=2>Promptly upon the occurrence of the earlier of the effective date of or the record date for any event referred to above that requires an adjustment in the Exercise Price and/or Exchange Number, the Corporation shall give notice to the Holders of Warrants of the particulars of the event and, if determinable, the adjustment.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><u><font size=2>Covenants</font></u></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>The Corporation covenants with the Holder of the Warrants evidenced by this certificate as follows:</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(xxx)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The Corporation will at all times maintain its existence and will carry on and conduct its business in a prudent manner in accordance with industry standards and good business practice and will keep or cause to be kept proper books of account in accordance with applicable law.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(yyy)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The Corporation will reserve and keep available a sufficient number of Warrant Shares for issuance upon the exercise of Warrants issued by the Corporation.</font></p> </td> </tr></table>



<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="316" style='border-collapse:collapse'>
    <tr >
        <td width="280" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>{00080488.5 / 0831-002}</font></p> </td>
        <td width="36" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>32</font></p> </td> </tr></table>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(zzz)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>In the event that the Qualification Conditions were not satisfied by the Qualification Date, the Corporation agrees to file a Registration Statement and use its commercially reasonable efforts to cause the Registration Statement to become effective within 90 days of the date of this certificate in order to register the resale of the Unit Shares and Warrants underlying the Subscription Receipts and Agent&#146;s Warrants issued pursuant to the agency agreement dated November 9, 2005 (the &#147;</font><b><font size=2>Agency</font></b><font size=2> </font><b><font size=2>Agreement</font></b><font size=2>&#148;) between the Corporation and Loewen, Ondaatje, McCutcheon Limited (the &#147;</font><b><font size=2>Agent</font></b><font size=2>&#148;) and the issuance of the Warrant Shares upon exercise of such Warrants. The Corporation
further agrees that it shall cause such registration statement to remain effective and available for use by the holder until the later of November 9, 2007 and a date which is 10 days after all of the Warrants have been exercised or have expired. Capitalized terms used in this paragraph but not otherwise defined in this certificate shall have the meanings ascribed to such terms in the Agency Agreement.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p  style='margin-left:0in;text-indent:0in; '><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(aaaa)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>All Shares that shall be issued by the Corporation upon exercise of the rights provided for herein shall be issued as fully paid and non-assessable Shares.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><u><font size=2>Amendments and Modifications</font></u></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>The Corporation, with the consent of the Agent, may make certain amendments or modifications to this certificate without obtaining the consent of the Holder only to the extent that such amendments or modifications are intended to correct ambiguities or errors in this certificate or are deemed necessary by the Corporation and the Agent under applicable securities and other laws in order to protect the rights of the Holder hereunder and provided that such amendments or modifications do not prejudice in any way the rights of the Holder hereunder. In the event of such amendment or modification, the Corporation shall provide a replacement Warrant certificate to the Holder along with an explanation of the reasons for the change.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><u><font size=2>General</font></u></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>The laws of the Province of Ontario and the federal laws of Canada applicable therein shall govern the Warrants.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>The holding of the Warrants evidenced by this certificate shall not constitute the Holder hereof a shareholder of the Corporation or entitle the Holder to any right or interest in respect thereof except as expressly provided in this certificate. </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>Time shall be of the essence hereof.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>This certificate shall enure to the benefit of and shall be binding upon the Holder and the Corporation and their respective successors and assigns.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:0.57in;text-align:justify;'><font size=2>This certificate shall not be valid for any purpose whatever unless and until it has been signed by or on behalf of the Corporation by any one director or officer of the Corporation. The signature of such director or officer may be mechanically reproduced by facsimile and a certificate bearing a facsimile signature shall be binding upon the Corporation as if it had been manually signed by the director or officer. </font></p>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="316" style='border-collapse:collapse'>
    <tr >
        <td width="280" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>{00080488.5 / 0831-002}</font></p> </td>
        <td width="36" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>33</font></p> </td> </tr></table>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:1in;text-align:justify;'><font size=2>IN WITNESS WHEREOF the Corporation has caused this certificate to be signed by an authorized officer.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:1in;text-align:justify;'><font size=2>DATED as of the ____ day of _____________, 200_.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:left;'><B><font SIZE=2>ADSERO CORP.</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:left;'><font size=2>Per: ___________________________________</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="381" style='border-collapse:collapse'>
    <tr >
        <td width="320" valign=top >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Name:</font></p> </td> </tr>
    <tr >
        <td width="320" valign=top >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="53" valign=top >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Title:</font></p> </td>
        <td  width="8">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="316" style='border-collapse:collapse'>
    <tr >
        <td width="280" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>{00080488.5 / 0831-002}</font></p> </td>
        <td width="36" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>34</font></p> </td> </tr></table>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font size=2>SCHEDULE &#147;A&#148;</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Election to Purchase</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>The undersigned hereby irrevocably elects to exercise the number of Warrants of Adsero Corp. set out below for the number of Warrant Shares (or other property or securities subject thereto) as set forth below:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="527" style='margin-left:.45in;border-collapse:collapse'>
    <tr >
        <td width="412" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Number of Warrants to be Exercised:</font></p> </td>
        <td width="115" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>____________</font></p> </td> </tr>
    <tr >
        <td width="412" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="115" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="412" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.5in;text-indent:-.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Number of Warrant Shares to be Acquired:</font></p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>____________</font></p> </td> </tr>
    <tr >
        <td width="412" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="115" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="412" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exercise Price:</font></p> </td>
        <td width="115" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$___________</font></p> </td> </tr>
    <tr >
        <td width="412" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="115" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="412" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Aggregate Purchase Price </font><i><font size=2>[(b) multiplied by (c)]</font></i></p> </td>
        <td width="115" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$___________</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><font size=2>and hereby tenders a cheque or bank draft for such aggregate purchase price, and directs that the Warrant Shares be registered and certificates therefor to be issued as directed below.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><font size=2>The undersigned represents, warrants and certifies as follows (one (only) of the following must be checked):</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table width="600" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse'>
    <tr style='page-break-inside:avoid; height:23.35pt'>
        <td width="67" rowspan=2 valign=top style='border-right: solid black 1.0pt;padding: 0in 5.4pt 0in 5.4pt;height:23.35pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:12pt'><font size=2>Box A</font></p> </td>
        <td width="42" valign=top style='border:solid black 1.0pt;border-color:black; border-left:none;padding:0in 5.4pt 0in 5.4pt;height:23.35pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="529" rowspan=2 valign=top style=' padding:0in 5.4pt 0in 5.4pt; height:23.35pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:12pt'><font size=2>The undersigned holder (i) at the time of exercise of this Warrant is not in the United States; (ii) is not a &#147;U.S. person&#148; as defined in Regulation S under the United States </font><i><font size=2>Securities Act of 1933</font></i><font size=2>, as amended (the &#147;1933 Act&#148;) and is not exercising this Warrant on behalf of a &#147;U.S. person&#148; or a person in the United States; and (iii) did not execute or deliver this Election to Purchase form in the United States.</font></p> </td> </tr>
    <tr style='page-break-inside:avoid;height:40.5pt'>
        <td width="42" valign=top style='border-bottom:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt; height:40.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid; height:26.95pt'>
        <td width="67" valign=top style='border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:26.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:12pt'><font size=2>Box B</font></p> </td>
        <td width="42" valign=top style='border-top:none;border-left:none; border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt;height:26.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="529" valign=top style='padding:0in 5.4pt 0in 5.4pt;height:26.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:12pt'><font size=2>The undersigned holder has delivered to the Corporation an opinion of counsel (which will not be sufficient unless it is in form and substance satisfactory to the Corporation) to the effect that the exercise is pursuant to an effective registration statement under the 1933 Act and applicable state securities laws or that an exemption from the registration requirements of the 1933 Act and applicable state securities laws is available.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><font size=2>The undersigned holder understands that unless the exercise is pursuant to an effective registration statement under the 1933 Act, the certificate representing the Warrant Shares will bear a legend restricting transfer without registration under the 1933 Act and applicable state securities laws unless an exemption from registration is available.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="316" style='border-collapse:collapse'>
    <tr >
        <td width="280" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>{00080488.5 / 0831-002}</font></p> </td>
        <td width="36" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>35</font></p> </td> </tr></table>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; text-indent:1in;text-align:justify;'>
<font size=2>DATED this ______ day of _______________, _______.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="556" style='border-collapse:collapse'>
    <tr >
        <td width="240" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>witness:</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td width="268" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="240" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Holder&#146;s Name</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="556" style='border-collapse:collapse'>
    <tr >
        <td width="240" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="25" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td   colspan="4">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="240" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="240" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Authorized Signature</font></p> </td>
        <td  width="112">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="240" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="25" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td   colspan="4">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="240" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="240" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td width="143" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Title (if applicable)</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="240" ></td>

        <td width="25" ></td>

        <td width="23" ></td>

        <td width="143" ></td>

        <td width="13" ></td>

        <td width="112" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="498" style='margin-left:0in;border-collapse:collapse'>
    <tr >
        <td width="288" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><u><i><font size=2>Direction as to Registration</font></i></u><i><u></u></i></p> </td>
        <td width="210" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="288" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="210" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="288" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><i><font size=2>Name of Registered Holder:</font></i><i></i></p> </td>
        <td width="210" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="288" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Address of Registered Holder:</font></i><i></i></p> </td>
        <td width="210" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="288" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><i>&nbsp;</i></p> </td>
        <td width="210" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="288" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i>&nbsp;</i></p> </td>
        <td width="210" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="288" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><i>&nbsp;</i></p> </td>
        <td width="210" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="288" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i>&nbsp;</i></p> </td>
        <td width="210" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="288" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><i>&nbsp;</i></p> </td>
        <td width="210" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="288" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i>&nbsp;</i></p> </td>
        <td width="210" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Note</font></b><font size=2>: Certificates will not be registered or delivered to an address in the United States unless Box B above is checked and the applicable requirements are complied with.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<BR>

<table border="0" cellspacing=0 cellpadding=0 width="316" style='border-collapse:collapse'>
    <tr >
        <td width="280" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>{00080488.5 / 0831-002}</font></p> </td>
        <td width="36" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>36</font></p> </td> </tr></table>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font size=2>SCHEDULE &#147;B&#148;</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Transfer Form</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><font size=2>FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers to ___________________ an aggregate of ___________ Warrants of Adsero Corp. represented by the attached Warrant certificate and does hereby appoint ___________________ as the attorney of the undersigned to effect such transfer of Warrants.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><font size=2>DATED this ______ day of _______________, _______.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="556" style='border-collapse:collapse'>
    <tr >
        <td width="240" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>witness:</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td width="268" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="240" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Transferor&#146;s Name</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="556" style='border-collapse:collapse'>
    <tr >
        <td width="240" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="25" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td   colspan="4">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="240" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="240" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Authorized Signature</font></p> </td>
        <td  width="112">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="240" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="25" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td   colspan="4">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="240" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="240" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td width="143" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Title (if applicable)</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="240" ></td>

        <td width="25" ></td>

        <td width="23" ></td>

        <td width="143" ></td>

        <td width="13" ></td>

        <td width="112" ></td> </tr> </table>

<table border="0" cellspacing=0 cellpadding=0 width="624" style='border-collapse:collapse'>
    <tr style='page-break-inside:avoid'>
        <td width="624" valign=top >
            <p ><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="624" valign=top >
            <p  style='margin-left:36.7pt;text-indent:-36.7pt'><b><font size=2>Note:</font></b><font size=2>&nbsp;&nbsp;&nbsp;The name of the Transferor on this Form of Transfer must be the same as the name appearing on the face page of the Warrant certificate to which this Schedule is attached.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="583" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Transfers must comply with the terms of any restriction on transfer noted on this</font></p> </td> </tr>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="87" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>certificate.</font></p> </td>
        <td  width="448">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="316" style='border-collapse:collapse'>
    <tr >
        <td width="280" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>{00080488.5 / 0831-002}</font></p> </td>
        <td width="36" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>37</font></p> </td> </tr></table>

<HR noshade align="center" width="100%" size="2">

</div>
</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>5
<FILENAME>ex_10-1.htm
<DESCRIPTION>LOAN AGREEMENT DATED 11-04-05
<TEXT>
<HTML>
<HEAD>
<TITLE> </TITLE>
</HEAD>
<BODY bgcolor="#ffffff" style='font-family:"Times New Roman"'>

<div style='width:600;'>

<A NAME="ex_10-1"></A>

<p style=' margin-bottom:5pt; margin-top:5pt;text-align:right;'><B><font SIZE=2>EXHIBIT 10.1</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>LOAN AGREEMENT</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>This Loan Agreement (the &#147;Agreement&#148;) is made as of November 4, 2005, by and among Adsero Corporation, a Delaware corporation (&#147;Borrower&#148;), Turbon International Inc., a Pennsylvania corporation (&#147;Lender&#148;) and Teckn-O-Laser Global Company, a Nova Scotia Unlimited Liability Company and wholly owned subsidiary of Borrower (&#147;Guarantor&#148;).</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>RECITALS</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Borrower has requested that Lender loan money to Borrower in the form of a term loan in the amount of $2,800,000.00, in order to fund Borrower&#146;s purchase of shares of common stock of the ultimate parent corporation of Lender, Turbon A.G., a German corporation (&#147;Turbon&#148;), pursuant to separate agreement; </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Borrower has also requested that Lender loan money to Borrower in the form of a line of credit in an amount not to exceed $2,800,000.00, in order to fund the purchase by Borrower of products from Lender; and</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Lender is willing to make such loans available as requested by Borrower, upon and subject to the terms and conditions set forth in this Agreement, including, without limitation,&nbsp; as a material inducement to the making of these loans, a guaranty of loans by Guarantor.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>NOW, THEREFORE, in consideration of the premises and of the mutual covenants contained in this Agreement, Borrower, Lender and Guarantor agree as follows:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><U><font SIZE=2>TERMS OF TERM BORROWING</font></U></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.01</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Term Loan</font></u><font size=2>. Subject to the following terms and conditions, Lender agrees to provide a term loan to Borrower (the &#147;Term Loan&#148;) in the amount of $2,800,000.00.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.02</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Note</font></u><font size=2>. Borrower&#146;s indebtedness to Lender for the amount borrowed under the Term Loan and for interest accrued thereon shall be evidenced by Borrower&#146;s term promissory note to Lender, a form of which is attached hereto as Exhibit A (the &#147;Term Note&#148;).</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.03</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Interest</font></u><font size=2>. Borrower agrees to pay interest on the Term Loan from time to time at the annual rate of five percent (5%), as more fully provided in the Term Note. Accrued interest shall be due and payable (i) on the last day of each quarter, (ii) at final maturity of the Term Loan, and (iii) on demand after such maturity. After the occurrence of an Event of Default, as defined in Section 6 below, and until such time that such Event of Default </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>{00080488.5 / 0831-002}</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>1</font></p>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:justify;'><font size=2>is cured, or after maturity or any acceleration of maturity of the Term Note, at Lender&#146;s option, the interest rate applicable to the Term Note may be increased by 4 percent per annum and Borrower agrees to pay any such increased interest </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.04</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Repayment of Principal</font></u><font size=2>. Borrower agrees to repay the Term Loan made hereunder in one final installment, comprising all then unpaid principal and accrued interest, at the final maturity date of the Term Loan, which will be October 31, 2008 (the &#147;Maturity Date&#148;), subject to acceleration upon the occurrence of an Event of Default. All or any part of the Loan may be repaid prior to the Maturity Date without penalty but may not be re-borrowed. Payments shall be applied by Lender first to interest and then to principal. </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:4.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><U><font SIZE=2>TERMS OF LINE OF CREDIT BORROWING</font></U></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.01</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Line of Credit</font></u><font size=2>. Subject to the following terms and conditions, Lender agrees to provide a line of credit to Borrower (the &#147;Line of Credit&#148;) up to the amount of $2,800,000.00, which borrowing shall be evidenced by one or more loan advance requests by Borrower to Lender, under such terms or conditions as Lender may reasonably request of Borrower from time to time and in any event only for the purpose of Borrower&#146;s purchase of products from Lender and its subsidiaries.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.02</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Note</font></u><font size=2>. Borrower&#146;s indebtedness to Lender for the amount borrowed under the Line of Credit Loan and for interest accrued thereon shall be evidenced by Borrower&#146;s promissory note to Lender, a form of which is attached hereto as Exhibit B (the &#147;Line of Credit Note&#148;).</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.03</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Interest</font></u><font size=2>. Borrower agrees to pay interest on the Line of Credit from time to time as provided herein at the annual rate of five percent (5%), as more fully provided in the Term Note. As more fully described in the Line of Credit Note, accrued interest shall be due and payable (i) on the last day of each quarter, (ii) at final maturity of the Line of Credit, and (iii) on demand after such maturity. After the occurrence of an Event of Default, as defined in Section 6 below, and until such time that such Event of Default is cured, or after maturity or any acceleration of maturity of the Line of Credit, at Lender&#146;s option, the interest rate applicable to the Line of Credit Note may be increased by 4 percent per annum and Borrower agrees to pay any such increased interest. </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.04</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Repayment of Principal</font></u><font size=2>. Borrower agrees to repay the Line of Credit made hereunder in one final installment, comprising all then unpaid principal and accrued interest, at the final maturity date of the Term Loan, which will be October 31, 2006 (the &#147;Maturity Date&#148;) subject to acceleration </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>{00080488.5 / 0831-002}</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>2</font></p>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:justify;'><font size=2>upon the occurrence of an Event of Default. All or any part of the Loan may be repaid prior to the Maturity Date without penalty and may be re-borrowed from time to time but not in excess of $2,800,000.00 outstanding at any time. Payments shall be applied by Lender first to interest and then to principal. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><U><font SIZE=2>COLLATERAL; GUARANTY</font></U></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.01</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Collateral</font></u><font size=2>. The repayment of all of Borrower&#146;s indebtedness to Lender under either the Term Loan or the Line of Credit shall be secured by a first priority pledge and security interest (the &#147;Security Interest&#148;) in 400,000 shares of common stock of Turbon (the &#147;Collateral&#148;). Subject to Borrower&#146;s receipt of a written consent from its existing secured lenders to the Security Interest in the Collateral, which Borrower represents and covenants that it can and will obtain and provide to Lender in no more than 15 days from the date hereof (the &#147;Borrower&#146;s Bank Consent), the Security Interests shall be created and perfected by way of a pledge of the Collateral to be held by Commerzbank in Germany, along with the execution of such&nbsp; other collateral documents deemed necessary or advisable by Lender
in its sole discretion each in form satisfactory to Lender, duly executed by Borrower (the &#147;Collateral Documents&#148;). Hereafter, Borrower shall from time to time execute and deliver to Lender such other documents in form and substance satisfactory to Lender, and perform such other acts, as Lender may reasonably request, to perfect and maintain valid Security Interests in the Collateral. </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.02</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Guaranty</font></u><font size=2>. As a material inducement for Lender to enter into this Loan Agreement and to provide the loans set forth herein, this Loan Agreement and the making of the loans are conditioned upon the execution of the enclosed Guaranty attached hereto as Exhibit C (the &#147;Guaranty&#148;).</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="531" style='border-collapse:collapse'>
    <tr >
        <td width="48" nowrap valign=top >
            <p style='margin-left:0in;text-indent:0in;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>4.</font></p> </td>
        <td width="435" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><U><font SIZE=2>REPRESENTATIONS AND WARRANTIES OF BORROWER</font></U></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:justify;'><font size=2>To induce Lender to enter into this Agreement, Borrower represents and warrants  as follows:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4.01</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Incorporation</font></u><font size=2>. Borrower is a corporation duly organized, validly existing, and in good standing under the laws of the State indicated at the beginning of this Agreement, and Borrower is duly qualified or licensed and in good standing to do business as a foreign corporation in all jurisdictions in which the nature of Borrower&#146;s business requires qualification.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4.02</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Borrower&#146;s Authorization</font></u><font size=2>. Subject to timely receipt of the Borrower&#146;s Bank Consent, the execution, delivery and performance by Borrower of this Agreement, the Term Note, the Line of Credit Note and the Collateral </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>{00080488.5 / 0831-002}</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>3</font></p>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:justify;'><font size=2>Documents are within Borrower&#146;s corporate powers, have been authorized by all necessary corporate action and do not and will not contravene Borrower&#146;s Articles of Incorporation or Bylaws, violate any provision of  law or result in a breach of or default under any other agreement to which Borrower is a party.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4.03</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Litigation</font></u><font size=2>. Other than as currently disclosed by Borrower in filings with the Securities and Exchange Commission, there is no pending or threatened action, claim, investigation, lawsuit or proceeding against or affecting Borrower before any court, governmental agency, arbitrator or arbitration panel which if decided adversely to Borrower would have a material adverse affect on the financial condition or operations of Borrower (&#147;Material Litigation&#148;).</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4.04</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Financial Condition</font></u><font size=2>. The balance sheet of Borrower submitted to Lender or published to Borrower&#146;s shareholders and the related statements of income and retained earnings for the fiscal year then ended fairly present the financial condition of Borrower as at such dates and the results of the operations of Borrower for the periods ended on such dates, all in accordance with generally accepted accounting principles (&#147;GAAP&#148;) applied on a consistent basis, and since the date of such statements there has been no material adverse change in such condition or operations.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4.05</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Liens</font></u><font size=2>. Subject to timely receipt of the Borrower&#146;s Bank Consent, Borrower is the legal and beneficial owner of the Collateral, free from any lien, encumbrance, or restriction whatsoever, and has full power and authority to grant the liens and security interests in such property as collateral for its indebtedness.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4.06</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Valid Obligations</font></u><font size=2>. This Agreement constitutes, and each of the Term Note, the Line of Credit Note and the Collateral Documents when delivered hereunder will be, a legal, valid and binding obligation of Borrower, enforceable against Borrower in accordance with their respective terms. </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4.07</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Taxes</font></u><font size=2>. Borrower (i) has filed all tax reports and returns required to be filed, including but not limited to reports and returns concerning income, franchise, employment, sales and use, and property taxes; (ii) has paid all of its tax liabilities which were due on or prior to the date hereof; and (iii) is not aware of any pending investigation by any taxing authority or of any pending assessments or adjustments which would materially increase its tax liability.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4.08</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Disclosure</font></u><font size=2>. No information, exhibit or report furnished by Borrower to Lender in connection with the negotiation of this Agreement contains any </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>{00080488.5 / 0831-002}</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>4</font></p>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:justify;'><font size=2>material misstatement of fact or omitted to state a material fact necessary to make the statement contained therein not misleading.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="540" style='border-collapse:collapse'>
    <tr >
        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>5.</font></p> </td>
        <td width="444" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><U><font SIZE=2>REPRESENTATIONS AND WARRANTIES OF GUARANTOR</font></U></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:justify;'><font size=2>To induce Lender to enter into this Agreement, Guarantor represents and warrants  as follows:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>5.01</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Incorporation</font></u><font size=2>. Guarantor is a corporation duly organized, validly existing, and in good standing under the laws of the Province indicated at the beginning of this Agreement.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>5.02</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Guarantor&#146;s Authorization</font></u><font size=2>. The execution, delivery and performance by Guarantor of the Guaranty is within Guarantor&#146;s corporate powers, have been authorized by all necessary corporate action and do not and will not contravene Guarantor&#146;s Articles of Incorporation or Bylaws, violate any provision of&nbsp; law or result in a breach of or default under any other agreement to which Guarantor is a party.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>5.03</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Valid Obligation</font></u><font size=2>. The Guaranty constitutes a legal, valid and binding obligation of Guarantor, enforceable against Guarantor in accordance with its respective terms. </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>6.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><U><font SIZE=2>AFFIRMATIVE COVENANTS</font></U></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:5.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:justify;'><font size=2>So long as the Term Note, the Line of Credit Note or any other indebtedness of Borrower to Lender remains unpaid or Lender has any commitment to lend hereunder, Borrower will:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>6.01</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Accounting Records</font></u><font size=2>. Maintain adequate books and accounting records in accordance with GAAP, consistently applied, reflecting all financial transaction of Borrower.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>6.02</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Inspections</font></u><font size=2>. At any reasonable time and from time to time, permit any agents or representatives of Lender to examine and make copies of and abstracts from records and books of account of Borrower, to visit and inspect the properties of Borrower and to discuss the affairs, finances and accounts of Borrower with any of its officers or directors. </font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>6.03</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Compliance with Laws</font></u><font size=2>. Comply in all material respects with all applicable laws, rules, regulations and orders of any government authority, non-compliance with which would materially adversely affect its business or credit.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>{00080488.5 / 0831-002}</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>5</font></p>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>6.04</font></p> </td>
        <td  valign=top >
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Corporate
Existence</font></u><font size=2>. Preserve and maintain its corporate existence and rights and franchises in its State of
Incorporation, and all licenses necessary to do business; and qualify and remain qualified and in good standing as a foreign
corporation in each jurisdiction in which such qualification is necessary in view of its operation or ownership of its properties;
and to maintain the ownership of Guarantor as a wholly owned subsidiary.</font></p></td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>6.05</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Notice of Significant Events</font></u><font size=2>. Promptly notify Lender in writing of 1) the occurrence of any Event of Default; 2) any change in its name, address, form of entity, or organizational or capital structure; or 3) the threat of or commencement of any Material Litigation.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>7.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><U><font SIZE=2>DEFAULT</font></U></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:justify;'><font size=2>If any of the following events shall occur, it shall be an event of default (&#147;Event of Default&#148;) unless and until cured by Borrower:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>7.01</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Non-Payment</font></u><font size=2>. After five (5) days written notice by Lender, Borrower fails to pay any principal of the Term Note or the Line of Credit or any other sums payable by Borrower to Lender pursuant to this Agreement when due, or Borrower fails to pay any interest on the Term Note or the Line of Credit after any such interest is due;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>7.02</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Representations</font></u><font size=2>. After the earlier to occur of five (5) days prior written notice by Lender or the date of actual knowledge of Borrower, any representation or warranty made by Borrower herein or in connection herewith proves to have been incorrect in any material respect when made or, in the case of the Borrower&#146;s Bank Consent immediately following the 15 day period to obtain such consent;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>7.03</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Breach of Covenants</font></u><font size=2>. After the earlier to occur of five (5) days prior written notice by Lender or the date of actual knowledge of Borrower, Borrower fails to observe or comply with any of the covenants in Section 6 of this Agreement or in any Collateral Document;</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>7.04</font></p> </td>
        <td  valign=top >
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font
size=2>Insolvency</font></u><font size=2>. Borrower shall generally not pay its debts as such debts become due, or shall admit in
writing its inability to pay its debts generally, or shall make a general assignment for the benefit of creditors; or any proceeding
shall be instituted by or against Borrower seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation, winding up,
reorganization, arrangement, adjustment protection, relief, or composition of it or its debts under any law relating to bankruptcy,
insolvency or reorganization or relief of debtors, or seeking the entry of an order for relief or the appointment of a receiver,
trustee, or other similar official for </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>{00080488.5 / 0831-002}</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>6</font></p>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:justify;'><font size=2>it or for any substantial part of
its property and, if instituted against Borrower, shall remain undismissed for a period of thirty days; or Borrower shall take any
corporate action to authorize any of the actions set forth above in this subsection.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>8.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><U><font SIZE=2>REMEDIES</font></U></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:justify;'><font size=2>Upon the occurrence of any Event of Default, Lender shall have the right by notice to Borrower;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>8.01</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>The Loan</font></u><font size=2>. To terminate its commitment to make the Term Loan or the Line of Credit;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>8.02</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Acceleration</font></u><font size=2>. To declare the outstanding Term Loan and Line of Credit balances and all interest accrued thereon and all other amounts payable under this Agreement to be immediately due and payable, whereupon all such indebtedness of Borrower to Lender shall become and be immediately due and payable without presentment, demand, protest or further notice of any kind, all of which are hereby expressly waived by Borrower; and</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>8.03</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Other Rights</font></u><font size=2>. To exercise any other rights or remedies available to it whether under the Collateral Documents, the Guaranty or at law or in equity.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>9.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><U><font SIZE=2>MISCELLANEOUS</font></U></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>9.01</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Waiver</font></u><font size=2>. No waiver by Lender or any amendment of any provision of this Agreement, nor any consent of Lender to any failure to comply with the terms hereof by Borrower, shall be effective unless made in writing and signed by Lender. No waiver by Lender of any default or of any right to enforce this Agreement shall operate as a waiver of any other default or of the same default on a future occasion, or of the right to enforce this Agreement on any future occasion. No delay in or discontinuance of the enforcement of this Agreement, not the acceptance by Lender of installments of principal or interest after the occurrence of any Event of Default, shall operate as a waiver of any default.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:4.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>9.02</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Rights Cumulative</font></u><font size=2>. The rights and remedies herein provided are cumulative and not exclusive of any rights or remedies afforded by any security agreement, promissory note or other agreement executed in connection herewith, or provided by law. Lender&#146;s remedies may be exercised concurrently or separately, in any order, and the election of one remedy shall not be deemed a waiver of any other remedy.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>{00080488.5 / 0831-002}</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>7</font></p>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>9.03</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Successors and Assigns</font></u><font size=2>. This Agreement shall be binding upon and inure to the benefit of Borrower, Lender, Guarantor and their respective successors and assigns. </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>9.04</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Governing Law</font></u><font size=2>. This Agreement shall be governed by and constructed in accordance with the laws of the State of Delaware without regard to its conflicts of laws principles.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>9.05</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Notices</font></u><font size=2>. All notices, requests and demands given to or made upon either partly must be in writing and shall be deemed to have been given or made when personally delivered or two (2) days after having been deposited in the United States Mail, first class postage prepaid, addressed as follows:</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="144" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>If to Borrower:</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Mr.&nbsp;William Smith, Chief Financial Officer </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:3in;text-align:justify;'><font size=2>Adsero Corporation</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:3in;text-align:justify;'><font size=2>2101 Nobel Street,</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:3in;text-align:justify;'><font size=2>Sainte Julie, Quebec, Canada J3E 1Z8</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="397" style='border-collapse:collapse'>
    <tr >
        <td width="144" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="144" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>If&nbsp; to Lender:</font></p> </td>
        <td width="109" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Aldo De Luca</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:3in;text-align:justify;'><font size=2>Managing Director - Finance and Operations</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:3in;text-align:justify;'><font size=2>Turbon International Inc.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:3in;text-align:justify;'><font size=2>2704 Cindel Drive</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:3in;text-align:justify;'><font size=2>Cinnaminson, NJ 08077</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:3in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>9.06</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Recitals</font></u><font size=2>. The recitals to this Agreement and any definitions set forth therein are made a part hereof and incorporated in this Agreement.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>9.07</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Entire Agreement</font></u><font size=2>. The following documents contain the entire agreement between the parties concerning the subject matter hereof: this Agreement, the Notes and the Collateral Documents (collectively, the &#147;relevant document.Any representation, understanding or promise concerning the subject matter hereof, which is not expressly set forth in any of the relevant documents, shall not be enforceable by any party hereto or its successors or assigns. In event of any conflict or inconsistency between the terms of this Agreement and the terms of any other relevant document, the terms of this Agreement shall govern.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>9.08</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Severability</font></u><font size=2>. The unenforceability of any provision of this Agreement shall not affect the enforceability or validity of any other provision hereof.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>9.09</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><U><font SIZE=2>JURY TRIAL WAIVER</font></U><font size=2>. LENDER AND BORROWER EACH IRREVOCABLY WAIVES&nbsp; ITS RIGHT TO A JURY TRIAL IN ANY ACTION OR PROCEEDING OF ANY ISSUE, CLAIM, COUNTERCLAIM OR OTHER CAUSE OF ACTION, WHETHER IN </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>{00080488.5 / 0831-002}</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>8</font></p>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:justify;'><font SIZE=2>CONTRACT OR TORT, BASED UPON OR ARISING OUT OF THIS AGREEMENT, THE CREDIT EXTENDED HEREUNDER, ANY COLLATERAL PROPERTY SECURING SUCH CREDIT, OR ANY OTHER AGREEMENT OR DEALINGS RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>[The next page is the signature page.]</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>{00080488.5 / 0831-002}</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>9</font></p>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>IN WITNESS WHEREOF, the parties have executed this Agreement the date first stated above for the purposes set forth herein.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="432" style='border-collapse:collapse'>
    <tr >
        <td width="336" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#147;BORROWER&#148;</font></p> </td>
        <td width="96" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#147;LENDER&#148;</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="336" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>ADSERO CORPORATION</font></B></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>TURBON INTERNATIONAL INC.</font></B></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="579" style='border-collapse:collapse'>
    <tr >
        <td width="336" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>By:&nbsp;<u>/s/ Yvon L&#233;veill&#233;</u></font></p> </td>
        <td width="243" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>By:&nbsp;<u>/s/ Al Deluca</u></font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="581" style='border-collapse:collapse'>
    <tr >
        <td width="336" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><FONT SIZE="2">Title:&nbsp;<U>CEO</U> </FONT></p> </td>
        <td width="245" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><FONT SIZE="2">Title:&nbsp;<U>Managing Director</U> </FONT></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&#147;GUARANTOR&#148;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><B><font SIZE=2>TECKN-O-LASER GLOBAL COMPANY</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:6in; text-indent:-6in;text-align:justify;'><font size=2>By:&nbsp;<u>/s/ Yvon L&#233;veill&#233;</u></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Title:&nbsp;<U>CEO</U></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>{00080488.5 / 0831-002}</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>10</font></p>

<HR noshade align="center" width="100%" size="2">

</div>
</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>6
<FILENAME>ex_10-2.htm
<DESCRIPTION>$2,800,000 TERM LOAN PROMISSORY NOTE 11-04-05
<TEXT>
<HTML>
<HEAD>
<TITLE> </TITLE>
</HEAD>
<BODY bgcolor="#ffffff" style='font-family:"Times New Roman"'>

<div style='width:600;'>

<A NAME="ex_10-2"></A>

<p style=' margin-bottom:5pt; margin-top:5pt;text-align:right;'><B><font SIZE=2>EXHIBIT 10.2</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>PROMISSORY NOTE</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="600" style='border-collapse:collapse'>
    <tr >
        <td width="409" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>US $2,800,000.00</font></B></p> </td>
        <td width="187" nowrap valign=top >
            <p style='margin-right:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>Cinnaminson, New Jersey</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>November 4, 2005</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><B><font SIZE=2>FOR  VALUE RECEIVED</font></B><font size=2>, the undersigned, </font><B><font SIZE=2>ADSERO CORPORATION</font></B><font size=2>, a Delaware corporation (hereinafter referred to as &#147;</font><b><font size=2>Borrower</font></b><font size=2>&#148;), hereby promises to pay to </font><B><font SIZE=2>TURBON INTERNATIONAL INC., </font></B><font size=2>a Pennsylvania corporation (hereinafter referred to as &#147;</font><b><font size=2>Lender</font></b><font size=2>&#148;), the principal amount of </font><B><font SIZE=2>US $2,800,000.00</font></B><font size=2> together with interest thereon at the annual rate set forth below on the unpaid principal balance hereof. This promissory note (the &#147;</font><b><font size=2>Note</font></b><font size=2>&#148;), along with the guaranty from Teckn-O-Laser Global Company, a Nova Scotia Unlimited Liability Company and subsidiary of Borrower, which is
an integral part of this transaction, is given pursuant to that certain Loan Agreement by and between Borrower and Lender, dated November 4, 2005 (the &#147;</font><b><font size=2>Loan Agreement</font></b><font size=2>&#148;); each capitalized term used herein but not defined herein shall have the meaning assigned to such term in the Loan Agreement. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="205" style='border-collapse:collapse'>
    <tr >
        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1.</font></p> </td>
        <td width="157" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Payment of Principal</font></u><font size=2>.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Except as otherwise provided herein, the principal amount hereof, together with interest accrued thereon, shall be payable in full at the final maturity date of the Term Loan, which will be October 31, 2008 (the &#147;</font><b><font size=2>Maturity Date</font></b><font size=2>&#148;), subject to acceleration upon the occurrence of an Event of Default. All or any part of the Loan may be repaid prior to the Maturity Date without penalty but may not be re-borrowed. Payments shall be applied by Lender first to interest and then to principal. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Except as the parties have otherwise agreed, all payments hereunder shall be made in lawful money of the United States of America at the business address of Lender at Turbon International Inc., 2704 Cindel Drive, Cinnaminson, New Jersey 08077, or at such other place in the United States as Lender shall designate to Borrower in writing. If any payment hereunder shall be due on a day that is a Saturday, Sunday or national holiday, such payment shall be due instead on the next succeeding day when banks in Philadelphia, Pennsylvania are not required or permitted by law to be closed, provided that interest shall continue to accrue during the period of any such postponement. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="119" style='border-collapse:collapse'>
    <tr >
        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>2.</font></p> </td>
        <td width="71" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Interest</font></u><font size=2>.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Interest shall accrue and be payable quarterly from the date hereof, with the first payment due on January 31, 2005, and each succeeding April 30, July 31, October 31 and January 31, on the unpaid principal balance hereof (on the basis of a 360-day year) at a rate of five percent (5.00%) per annum, or $35,000.00 quarterly; </font><i><font size=2>provided, however,</font></i><font size=2> that, in the Event of Default (as defined below) and thereafter until such time that such Event of Default is cured,  interest shall at the discretion of Lender accrue at the rate of 9% per annum. Any and all payments of interest hereunder shall be made in immediately available funds. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>{00080488.5 / 0831-002}</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>1</font></p>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'>
<font size=2>3.</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font size=2>Events of Default; Acceleration</font></u><font size=2>.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>(a)</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2>If any of the following events shall occur, it shall be an event of default (&#147;</font><b><font size=2>Event of Default</font></b><font size=2>&#148;) unless and until cured by Borrower.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(i)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>After five (5) days written notice from Lender, Borrower fails to pay any interest or principal under this Note after any of such amounts are due;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(ii)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>After the earlier to occur of five (5) days prior written notice by Lender or the date of actual knowledge of Borrower, any representation or warranty made by Borrower in the Loan Agreement proves to have been incorrect in any material respect when made;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(iii)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>After the earlier to occur of five (5) days prior written notice by Lender or the date of actual knowledge of Borrower, Borrower fails to observe or comply with any of the covenants in Section 5 of the Loan Agreement or in any Collateral Document under the Loan Agreement; or</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(iv)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Borrower shall generally not pay its debts as such debts become due, or shall admit in writing its inability to pay its debts generally, or shall make a general assignment for the benefit of creditors; or any proceeding shall be instituted by or against Borrower seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment protection, relief, or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking the entry of an order for relief or the appointment of a receiver, trustee, or other similar official for it or for any substantial part of its property and, if instituted against Borrower, shall remain undismissed for a period of thirty days;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>then Lender may, by additional written notice to Borrower, declare the entire principal amount of this Note to be due and payable immediately, together with all unpaid interest accrued thereon from the date hereof to the date of payment hereunder; </font><i><font size=2>provided, however,</font></i><font size=2> that upon the occurrence and continuance of any of the Events of Default set forth in subsection (iv) above, this Note shall automatically mature and become due and payable, together with interest accrued thereon, without presentment, demand, protest or notice of any kind all of which are hereby expressly waived.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>{00080488.5 / 0831-002}</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>2</font></p>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'>
<font size=2>(b)</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2>Upon an Event of Default, Lender may proceed to protect and enforce its rights either by suit in equity or by action at law, or both, whether for the specific performance of any covenant or agreement contained in this Note or in the aid of the exercise of any power granted in this Note, or Lender may proceed to enforce the payment of the Note or to enforce any other legal or equitable right it may possess. If action is instituted on this Note to enforce payment hereof, Borrower agrees to pay reasonable attorneys&#146; fees and disbursements incurred by Lender in the collection thereof, which fees and disbursements shall be added to the principal amount of the indebtedness evidenced by this Note.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="124" style='border-collapse:collapse'>
    <tr >
        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>4.</font></p> </td>
        <td width="76" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Remedy</font></u><font size=2>.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>No remedy conferred upon Lender is intended to be exclusive of any other remedy and each and every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder now or hereafter existing at law or in equity by statute or otherwise. No course of dealing with Borrower and Lender or any delay in exercising any rights hereunder shall operate as a waiver of any rights of Lender.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="115" style='border-collapse:collapse'>
    <tr >
        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>5.</font></p> </td>
        <td width="67" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Pledge</font></u><font size=2>.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Subject to Borrower&#146;s receipt of written consent from its existing secured lenders to the pledge, this Note is partially secured by a pledge by Borrower of 400,000 shares of common stock of Turbon A.G., a German corporation, in favor of Commerzbank of Germany, as pledgee (&#147;Pledgee&#148;), which pledge is taking place simultaneous hereof, as collateral towards payment of Borrower&#146;s obligations under this Note and such other obligations contained in the Loan Agreement.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="157" style='border-collapse:collapse'>
    <tr >
        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>6.</font></p> </td>
        <td width="109" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Loss or Theft</font></u><font size=2>.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Upon notice to Borrower of the loss, theft, destruction or mutilation of this Note, and in the case of any such mutilation upon surrender and cancellation of the mutilated document, and in the case of any such loss, theft or destruction, upon delivery by Lender of any indemnity agreement satisfactory to Borrower, Borrower will execute and deliver to Lender at such place as Lender may designate to Borrower in writing, an identical Note dated the date hereof in substitution for such lost, stolen, destroyed or mutilated Note; </font><i><font size=2>provided, however,</font></i><font size=2> any such substitution shall not be deemed to constitute a waiver, modification, compromise, or novation of the indebtedness evidenced hereby or any term or condition hereof.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="308" style='border-collapse:collapse'>
    <tr >
        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>7.</font></p> </td>
        <td width="260" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Amendments, Consents and Waivers</font></u><font size=2>.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>(a)</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2>Any term, covenant, agreement or condition of this Note may be amended only by a written instrument executed by Borrower and Lender. Any amendment shall be endorsed upon this Note and Borrower and Lender shall be bound thereby.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>(b)</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2>Any term, covenant, agreement, or condition of this Note may be waived only in writing by Lender.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>{00080488.5 / 0831-002}</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>3</font></p>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'>
<font size=2>(c)</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2>No waiver of any breach of any warranty, representation, covenant or other term or provision of this Note shall be deemed a waiver of any preceding or succeeding breach of the same or any other warranty, representation, covenant, term or provision. No extension of time for performance of any obligations or act shall be deemed to be an extension of the time for performance of any other obligation or any other act.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="120" style='border-collapse:collapse'>
    <tr >
        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>8.</font></p> </td>
        <td width="72" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Notices</font></u><font size=2>.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>All notices, requests, demands, and other communications which are required or permitted to be given hereunder, shall be in writing and, unless set forth to the contrary herein, shall be deemed to have been duly given if delivered or mailed, certified first class mail, postage prepaid, return receipt requested, or by an overnight or two or three day delivery service that provides written evidence of delivery, to the party to whom the same is made at the following addresses or to such other address as any party shall have specified by notice in writing to the other party:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2> (a)</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2>If to Lender, to Aldo De Luca, Managing Director - Finance and Operations, Turbon International Inc., 2704 Cindel Drive, Cinnaminson, NJ 08077;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>(b)</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2>If to Borrower, to Mr.&nbsp;William Smith, Chief Financial Officer, Adsero Corporation, 2101 Nobel Street, Sainte Julie, Quebec, Canada J3E 1Z8.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="173" style='border-collapse:collapse'>
    <tr >
        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>9.</font></p> </td>
        <td width="125" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Applicable Law</font></u><font size=2>.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The rights and obligations of the parties hereunder shall be construed and interpreted in accordance with the laws of the State of Delaware without regard to the principles of conflicts of law thereof.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="131" style='border-collapse:collapse'>
    <tr >
        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>10.</font></p> </td>
        <td width="83" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Headings</font></u><font size=2>.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>All titles and sections in this Note are inserted for convenience only and shall not affect the meaning or interpretation hereof.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="147" style='border-collapse:collapse'>
    <tr >
        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>11.</font></p> </td>
        <td width="99" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Prepayment.</font></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Borrower may at any time and from time to time prepay the principal of the indebtedness evidenced by this Note together with any interest due thereon but unpaid to the date of any such prepayment without premium or penalty.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="245" style='border-collapse:collapse'>
    <tr >
        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>12.</font></p> </td>
        <td width="197" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Waiver of Presentment, etc.</font></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Except as otherwise herein specifically provided to the contrary, Borrower waives the right of presentment, demand for payment, notice of dishonor, notice of protest, and all other notices of demand of any kind in connection with the delivery, acceptance, performance, default, endorsement or guarantee of this instrument.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>{00080488.5 / 0831-002}</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>4</font></p>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'>
</p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><B><font SIZE=2>IN WITNESS WHEREOF</font></B><font size=2>, this Note has been signed by the Borrower as of this 4<sup>th</sup> day of November, 2005.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:3.5in;text-align:justify;'><B><font SIZE=2>ADSERO CORPORATION</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="549" style='border-collapse:collapse'>
    <tr >
        <td width="336" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="213" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>By: <u>/s/ Yvon L&#233;veill&#233;</u></font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:5pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>{00080488.5 / 0831-002}</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>5</font></p>

<HR noshade align="center" width="100%" size="2">

</div>
</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>7
<FILENAME>ex_10-3.htm
<DESCRIPTION>FORM OF CREDIT LINE PROMISSORY NOTE
<TEXT>
<HTML>
<HEAD>
<TITLE> </TITLE>
</HEAD>
<BODY bgcolor="#ffffff" style='font-family:"Times New Roman"'>

<div style='width:600;'>

<A NAME="ex_10-3"></A>

<p style=' margin-bottom:5pt; margin-top:5pt;text-align:right;'><B><font SIZE=2>EXHIBIT 10.3</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>LINE OF CREDIT PROMISSORY NOTE</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="600" style='border-collapse:collapse'>
    <tr >
        <td width="409" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>US $2,800,000.00</font></B></p> </td>
        <td width="187" nowrap valign=top >
            <p style='margin-right:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>Cinnaminson, New Jersey</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>November 4, 2005</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><B><font SIZE=2>FOR  VALUE RECEIVED</font></B><font size=2>, the undersigned, </font><B><font SIZE=2>ADSERO CORPORATION</font></B><font size=2>, a Delaware corporation (hereinafter referred to as &#147;</font><b><font size=2>Borrower</font></b><font size=2>&#148;), hereby promises to pay to </font><B><font SIZE=2>TURBON INTERNATIONAL INC., </font></B><font size=2>a Pennsylvania corporation (hereinafter referred to as &#147;</font><b><font size=2>Lender</font></b><font size=2>&#148;), the principal amount of </font><B><font SIZE=2>US $2,800,000.00, </font></B><font size=2>or so much as may be outstanding</font><b><font size=2>,</font></b><font size=2> together with interest thereon at the annual rate set forth below on the unpaid principal balance of each advance. This promissory note (the &#147;</font><b><font size=2>Note</font></b><font size=2>&#148;), along with the guaranty from Teckn-O-Laser
Global Company, a Nova Scotia Unlimited Liability Company and subsidiary of Borrower, which is an integral part of this transaction, is given pursuant to that portion of the certain Loan Agreement by and between Borrower and Lender, dated November 4, 2005 (the &#147;</font><b><font size=2>Loan Agreement</font></b><font size=2>&#148;) related to the provision of a line of credit by Lender to Borrower; each capitalized term used herein but not defined herein shall have the meaning assigned to such term in the Loan Agreement. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="205" style='border-collapse:collapse'>
    <tr >
        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1.</font></p> </td>
        <td width="157" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Payment of Principal</font></u><font size=2>.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Except as otherwise provided herein, the principal amount hereof, or so much as may be outstanding, together with interest accrued thereon, shall be payable in full in one payment at the final maturity date of the Term Loan, which will be October 31, 2006 (the &#147;</font><b><font size=2>Maturity Date</font></b><font size=2>&#148;), subject to acceleration upon the occurrence of an Event of Default. All or any part of the Loan may be repaid prior to the Maturity Date without penalty and may be re-borrowed by Borrower pursuant to its application to Lender for an advance hereunder. Payments shall be applied by Lender first to interest and then to principal. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Except as the parties have otherwise agreed, all payments hereunder shall be made in lawful money of the United States of America at the business address of Lender at Turbon International Inc., 2704 Cindel Drive, Cinnaminson, New Jersey 08077, or at such other place in the United States as Lender shall designate to Borrower in writing. If any payment hereunder shall be due on a day that is a Saturday, Sunday or national holiday, such payment shall be due instead on the next succeeding day when banks in Philadelphia, Pennsylvania are not required or permitted by law to be closed, provided that interest shall continue to accrue during the period of any such postponement. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="119" style='border-collapse:collapse'>
    <tr >
        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>2.</font></p> </td>
        <td width="71" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Interest</font></u><font size=2>.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Interest shall accrue and be payable monthly from the date hereof, with the first payment due on November 30, 2005, and each succeeding end of the month, on the unpaid principal balance hereof (on the basis of a 360-day year) at a fixed rate of five percent (5%) per annum; </font><i><font size=2>provided, however,</font></i><font size=2> that, in the Event of Default (as defined below) and thereafter until such time that such Event of Default is cured, interest shall at the discretion of Lender accrue at the rate of 9% per annum. Any and all payments of interest hereunder shall be made in immediately available funds. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>{00080488.5 / 0831-002}</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>1</font></p>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'>
<font size=2>3.</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font size=2>Events of Default; Acceleration</font></u><font size=2>.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>(a)</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2>If any of the following events shall occur, it shall be an event of default (&#147;</font><b><font size=2>Event of Default</font></b><font size=2>&#148;) unless and until cured by Borrower.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(i)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>After five (5) days written notice by Lender, Borrower fails to pay any interest or principal under this Note after any of such amounts are due;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(ii)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>After the earlier to occur of five (5) days prior written notice by Lender or the date of actual knowledge of Borrower, any representation or warranty made by Borrower in the Loan Agreement proves to have been incorrect in any material respect when made;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(iii)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>After the earlier to occur of five (5) days prior written notice by Lender or the date of actual knowledge of Borrower, Borrower fails to observe or comply with any of the covenants in Section 5 of the Loan Agreement or in any Collateral Document under the Loan Agreement; or</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(iv)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Borrower shall generally not pay its debts as such debts become due, or shall admit in writing its inability to pay its debts generally, or shall make a general assignment for the benefit of creditors; or any proceeding shall be instituted by or against Borrower seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment protection, relief, or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking the entry of an order for relief or the appointment of a receiver, trustee, or other similar official for it or for any substantial part of its property and, if instituted against Borrower, shall remain undismissed for a period of thirty days;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>then Lender may, by additional written notice to Borrower, declare the entire principal amount of this Note to be due and payable immediately, together with all unpaid interest accrued thereon from the date hereof to the date of payment hereunder; </font><i><font size=2>provided, however,</font></i><font size=2> that upon the occurrence and continuance of any of the Events of Default set forth in subsection (iv) above, this Note shall automatically mature and become due and payable, together with interest accrued thereon, without presentment, demand, protest or notice of any kind all of which are hereby expressly waived.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>(b)</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2>Upon an Event of Default, Lender may proceed to protect and enforce its rights either by suit in equity or by action at law, or both, whether for the specific performance of any covenant or agreement contained in this Note or in the aid of the exercise of any power granted in this Note, or Lender may proceed to enforce the payment of the Note or to enforce any other legal or equitable right it may possess. If action is instituted on this Note to enforce payment hereof, Borrower agrees to pay </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>{00080488.5 / 0831-002}</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>2</font></p>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'>
<font size=2>reasonable attorneys&#146; fees and disbursements incurred by Lender in the collection thereof, which fees and disbursements shall be added to the principal amount of the indebtedness evidenced by this Note.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="124" style='border-collapse:collapse'>
    <tr >
        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>4.</font></p> </td>
        <td width="76" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Remedy</font></u><font size=2>.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>No remedy conferred upon Lender is intended to be exclusive of any other remedy and each and every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder now or hereafter existing at law or in equity by statute or otherwise. No course of dealing with Borrower and Lender or any delay in exercising any rights hereunder shall operate as a waiver of any rights of Lender.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="115" style='border-collapse:collapse'>
    <tr >
        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>5.</font></p> </td>
        <td width="67" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Pledge</font></u><font size=2>.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Subject to Borrower&#146;s receipt of written consent from its existing secured lenders to the pledge, this Note is partially secured by a pledge by Borrower of 400,000 shares of common stock of Turbon A.G., a German corporation, in favor of Commerzbank of Germany, as pledgee (&#147;Pledgee&#148;), which pledge is taking place simultaneous hereof, as collateral towards payment of Borrower&#146;s obligations under this Note and such other obligations contained in the Loan Agreement.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="157" style='border-collapse:collapse'>
    <tr >
        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>6.</font></p> </td>
        <td width="109" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Loss or Theft</font></u><font size=2>.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Upon notice to Borrower of the loss, theft, destruction or mutilation of this Note, and in the case of any such mutilation upon surrender and cancellation of the mutilated document, and in the case of any such loss, theft or destruction, upon delivery by Lender of any indemnity agreement satisfactory to Borrower, Borrower will execute and deliver to Lender at such place as Lender may designate to Borrower in writing, an identical Note dated the date hereof in substitution for such lost, stolen, destroyed or mutilated Note; </font><i><font size=2>provided, however,</font></i><font size=2> any such substitution shall not be deemed to constitute a waiver, modification, compromise, or novation of the indebtedness evidenced hereby or any term or condition hereof.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="308" style='border-collapse:collapse'>
    <tr >
        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>7.</font></p> </td>
        <td width="260" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Amendments, Consents and Waivers</font></u><font size=2>.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>(a)</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2>Any term, covenant, agreement or condition of this Note may be amended only by a written instrument executed by Borrower and Lender. Any amendment shall be endorsed upon this Note and Borrower and Lender shall be bound thereby.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>(b)</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2>Any term, covenant, agreement, or condition of this Note may be waived only in writing by Lender.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>(c)</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2>No waiver of any breach of any warranty, representation, covenant or other term or provision of this Note shall be deemed a waiver of any preceding or succeeding breach of the same or any other warranty, representation, covenant, term or provision. No extension of time for performance of any obligations or act shall be deemed to be an extension of the time for performance of any other obligation or any other act.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>{00080488.5 / 0831-002}</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>3</font></p>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'>
<font size=2>8.</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font size=2>Notices</font></u><font size=2>.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>All notices, requests, demands, and other communications which are required or permitted to be given hereunder, shall be in writing and, unless set forth to the contrary herein, shall be deemed to have been duly given if delivered or mailed, certified first class mail, postage prepaid, return receipt requested, or by an overnight or two or three day delivery service that provides written evidence of delivery, to the party to whom the same is made at the following addresses or to such other address as any party shall have specified by notice in writing to the other party:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2> (a)</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2>If to Lender, to Aldo De Luca, Managing Director - Finance and Operations, Turbon International Inc., 2704 Cindel Drive, Cinnaminson, NJ 08077;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>(b)</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2>If to Borrower, to Mr.&nbsp;William Smith, Chief Financial Officer, Adsero Corporation, 2101 Nobel Street, Sainte Julie, Quebec, Canada J3E 1Z8.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="173" style='border-collapse:collapse'>
    <tr >
        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>9.</font></p> </td>
        <td width="125" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Applicable Law</font></u><font size=2>.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The rights and obligations of the parties hereunder shall be construed and interpreted in accordance with the laws of the State of Delaware without regard to the principles of conflicts of law thereof.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="131" style='border-collapse:collapse'>
    <tr >
        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>10.</font></p> </td>
        <td width="83" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Headings</font></u><font size=2>.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>All titles and sections in this Note are inserted for convenience only and shall not affect the meaning or interpretation hereof.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="147" style='border-collapse:collapse'>
    <tr >
        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>11.</font></p> </td>
        <td width="99" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Prepayment.</font></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Borrower may at any time and from time to time prepay the principal of the indebtedness evidenced by this Note together with any interest due thereon but unpaid to the date of any such prepayment without premium or penalty.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="245" style='border-collapse:collapse'>
    <tr >
        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>12.</font></p> </td>
        <td width="197" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Waiver of Presentment, etc.</font></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Except as otherwise herein specifically provided to the contrary, Borrower waives the right of presentment, demand for payment, notice of dishonor, notice of protest, and all other notices of demand of any kind in connection with the delivery, acceptance, performance, default, endorsement or guarantee of this instrument.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><B><font SIZE=2>IN WITNESS WHEREOF</font></B><font size=2>, this Note has been signed by the Borrower as of this 4<sup>th</sup> day of November, 2005.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:3.5in;text-align:justify;'><B><font SIZE=2>ADSERO CORPORATION</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:3.5in;text-align:justify;'><font size=2>By:&nbsp;_________________________</font></p>

<p style=' margin-bottom:0pt; margin-top:5pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>{00080488.5 / 0831-002}</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>4</font></p>

<HR noshade align="center" width="100%" size="2">

</div>
</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>8
<FILENAME>ex_10-4.htm
<DESCRIPTION>LOAN GUARANTEE DATED 11-04-05
<TEXT>
<HTML>
<HEAD>
<TITLE> </TITLE>
</HEAD>
<BODY bgcolor="#ffffff" style='font-family:"Times New Roman"'>

<div style='width:600;'>

<A NAME="ex_10-4"></A>

<p style=' margin-bottom:5pt; margin-top:5pt;text-align:right;'><B><font SIZE=2>EXHIBIT 10.4</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>LOAN GUARANTY</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:justify;'><font size=2>The undersigned, Teckn-O-Laser Global Company, a Nova Scotia Unlimited Liability Corporation (the &#147;Guarantor&#148;), in order to induce Turbon International Inc., a Pennsylvania corporation (the &#147;Lender&#148;), as lender, to enter into a certain Loan Agreement dated November 4, 2005 (the &#147;Loan Agreement&#148;) with Adsero Corporation, a Delaware corporation (the &#147;Borrower&#148;), as borrower, does hereby agree as follows:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:justify;'><font size=2>1. Guarantor unconditionally and irrevocably guarantees and promises to pay the full indebtedness of Borrower under the Loan Agreement, the Term Promissory Note and the Line of Credit Promissory Note that form a part of the Loan Agreement (together, the &#147;Loan Documents&#148;), including, but not limited to, the payment of principal and interest on such promissory notes.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:justify;'><font size=2>2. Guarantor agrees that this covenant and agreement on its part shall continue in favor of the Lender notwithstanding any extension, modification or alteration of any of the Loan Documents by the parties thereto, or their successors or assigns, and no extension, modification, alteration or assignment of any of the Loan Documents shall in any manner release or discharge Guarantor hereunder.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:justify;'><font size=2>3. This guarantee will continue unchanged by any bankruptcy, reorganization or insolvency of the Borrower or any successor or assign thereof or by a disallowance or abandonment by a trustee of Borrower.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:justify;'><font size=2>4. Lender may, without notice, assign this guarantee of payments in whole or in part, and no assignment or transfer of any of the Loan Documents shall operate to extinguish or diminish the liability of Guarantor hereunder.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:justify;'><font size=2>5. The liability of Guarantor under this guarantee shall be primary, and in any right of action which shall accrue to Lender under any of the Loan Documents, Lender may, at its option, proceed against Guarantor without having first commenced any action, or having obtained any judgment, against Borrower.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:justify;'><font size=2>6. Guarantor agrees to pay Lender&#146;s reasonable attorney&#146;s fees and all costs and other expenses incurred in any collection or attempted collection or in any negotiations relative to the obligations hereby guaranteed or enforcing this guarantee of payments against Guarantor.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:justify;'><font size=2>7. Guarantor hereby waives notice of any demand by the Lender, as well as any notice of default in the payment of interest, principal or other amounts contained or reserved in any of the Loan Documents.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:justify;'><font size=2>8. The terms and provisions of this guarantee shall be binding upon and inure to the benefit of the respective successors and assigns of the parties hereunder.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>{00080488.5 / 0831-002}</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>1</font></p>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:justify;'><font size=2>9. This guaranty shall be governed by the laws of the State of Delaware without regard to its conflicts of laws principles.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><B><font SIZE=2>IN WITNESS WHEREOF</font></B><font size=2>, the undersigned has caused this guarantee to be executed as of the effective date of the Loan Agreement.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><B><font SIZE=2>TECKN-O-LASER GLOBAL COMPANY</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>By:&nbsp;<u>/s/ Yvon L&#233;veill&#233;</u></font></p>

<p style=' margin-bottom:0pt; margin-top:5pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>{00080488.5 / 0831-002}</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>2</font></p>

<HR noshade align="center" width="100%" size="2">

</div>
</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>9
<FILENAME>ex_10-5.htm
<DESCRIPTION>PROMISSORY NOTE DATED 11-04-05
<TEXT>
<HTML>
<HEAD>
<TITLE> </TITLE>
</HEAD>
<BODY bgcolor="#ffffff" style='font-family:"Times New Roman"'>

<div style='width:600;'>

<A NAME="ex_10-5"></A>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><B><font SIZE=2>EXHIBIT 10.5</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><B><font SIZE=2>THIS NOTE HAS BEEN ISSUED PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF FEDERAL AND STATE SECURITIES LAWS AND MAY NOT BE SOLD OR TRANSFERRED WITHOUT COMPLIANCE WITH SUCH REQUIREMENTS OR A WRITTEN OPINION OF COUNSEL ACCEPTABLE TO THE OBLIGOR THAT SUCH TRANSFER WILL NOT RESULT IN ANY VIOLATION OF SUCH LAWS OR AFFECT THE LEGALITY OF ITS ISSUANCE.</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>CONVERTIBLE PROMISSORY NOTE</font></B></p>


<table border="0" cellspacing=0 cellpadding=0 width="600" style='border-collapse:collapse'>
    <tr >
        <td width="457" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$328,113</font></p> </td>
        <td width="139" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>November 4, 2005</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.56in;text-align:justify;'><font size=2>FOR VALUE RECEIVED, the undersigned, Adsero Corp., a Delaware corporation with offices at 2101 Nobel Street, Sainte Julie, Quebec, J3E 1Z8 (the &#147;Obligor&#148;), hereby promises to pay to the order of Yvon L&#233;veill&#233; and or its designate (the &#147;Holder&#148;), with residing at _________________________________, the principal sum of Three hundred and twenty eight thousand, one hundred and thirteen US dollars ($328,113) payable as set forth below. The Obligor also promises to pay to the order of the Holder interest on the principal amount hereof at a rate per annum equal to five percent (5.0%), which interest shall be payable monthly in arrears. Interest shall be calculated on the basis of the year of 365 days and for the number of days actually elapsed. Any amounts of interest and principal not paid when due, including upon an Event of Default (as hereinafter defined),
shall bear interest at the maximum rate of interest allowed by applicable law. The payments of principal and interest hereunder shall be made in currency of the United States of America that at the time of payment shall be legal tender therein for the payment of public and private debts.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>This Note shall be subject to the following additional terms and conditions:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Payments</font></u><font size=2>. Interest and principal due on this Note are payable no later than December 31, 2006 (the &#147;Maturity Date&#148;); </font><u><font size=2>provided however</font></u><font size=2>, that the parties may mutually agree to extend the terms of this Note beyond the Maturity Date. In the event that any payment to be made hereunder shall be or become due on Saturday, Sunday or any other day which is a legal bank holiday under the laws of Canada or the United States such payment shall be or become due on the next succeeding business day and interest shall accrue during such extension of time</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Optional Prepayment</font></u><font size=2>. The Obligor and the Holder understand and agree that the principal amount of this Note plus all accrued interest due thereon may be prepaid, at ayn time, by the Obligor, in its discretion, at any time prior to the Maturity Date. Obligor will provide 10 business days written notice to Holder for prepayment during which time </font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Conversion into Common Stock</font></u><font size=2>. If the note and interest have not been fully paid on or before December 31, 2006 then the Holder may, at its sole option, convert the total unpaid principal and interest hereunder into common shares of the Obligor at the rate of $0.50 for each common share. The Holder shall provide written notice to Obligor of its intention to convert to the fax number 416-467-7173 attention CFO.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>{00080488.5 / 0831-002}</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>1</font></p>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>No Waiver</font></u><font size=2>. No failure or delay by the Holder in exercising any right, power or privilege under the Note shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law. No course of dealing between the Obligor and the Holder shall operate as a waiver of any rights by the Holder.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>5.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Waiver of Presentment and Notice of Dishonor</font></u><font size=2>. The Obligor and other parties that may be liable under this Note hereby waive presentment, notice of dishonor, protest and all other demands and notices in connection with the delivery, acceptance, performance or enforcement of this Note.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>6.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Place of Payment</font></u><font size=2>. All payments of principal of this Note and the interest due hereon shall be made to Holder at the address appearing above or at such other address as the Holder may designate in writing.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>7.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Events of Default</font></u><font size=2>. The entire unpaid principal amount of this Note and the interest due hereon shall forthwith become and be due and payable, without presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived, if any one or more of the following events (herein called &#147;Events of Default&#148;) shall have occurred (for any reason whatsoever and whether such happening shall be voluntary or involuntary or come about or be effected by operation of law or pursuant to or in compliance with any judgement, decree or order of any court or any order, rule or regulation of any administrative or governmental body ):</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>if the Obligor shall:</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(i)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>admit in writing its inability to pay its debts generally as they become due;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(ii)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>file a petition in bankruptcy or petition to take advantage of any insolvency act;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(iii)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>make assignment for the benefit of creditors;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(iv)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>consent to the appointment of a receiver of the whole or any substantial part of its property;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(v)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>on a petition in bankruptcy filed against it, be adjudicated a bankrupt;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(vi)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>file a petition or answer seeking reorganization or arrangement under the Federal bankruptcy laws or any other applicable law or statute of Canada or any province thereof or of the United States of America or any state, district or territory thereof;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>{00080488.5 / 0831-002}</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>2</font></p>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(b)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>if a court of competent jurisdiction shall enter an order, judgment, or decree appointing, without the consent of the Obligor, a receiver of the whole or any substantial part of the Obligor&#146;s property;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(c)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>if, under the provisions of any other law for the relief or aid of debtors, any court of competent jurisdiction shall assume custody or control of the whole or any substantial part of Obligor&#146;s property; or</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(d)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>if the Obligor sells or otherwise transfers all or substantially all of its assets.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>8.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Remedies</font></u><font size=2>. In case any one or more of the Events of Default specified in Section 7 hereof shall have occurred and be continuing, the Holder may proceed to protect and enforce its rights whether by suit and/or equity and/or by action of law, whether for the specific performance of any covenant or agreement contained in this Note or in aid of the exercise of any power granted in this Note, or the Holder may proceed to enforce the payment of all sums due upon the Note or enforce any other legal or equitable right of the Holder.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>9.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Costs and Expenses</font></u><font size=2>. Each of the parties shall bear their own legal expenses in connection with this Note. In the event Obligor defaults on its obligations hereunder, the Holder shall be entitled to recover all of its reasonable attorney&#146;s fees and costs incurred in enforcing its rights hereunder.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="49" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>10.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Amendments</font></u><font size=2>. No amendment, modification or waiver of any provision of this Promissory Note nor consent to any departure by the Obligor there from shall be effective unless the same shall be in writing and signed by Holder and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="49" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>11.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Governing Law</font></u><font size=2>. This Promissory Note shall be deemed to be a contract made under the laws of New York and shall be governed and construed in accordance with the laws of said state without giving effect to principles of conflicts of law.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="49" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>12.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Headings and Construction</font></u><font size=2>. The headings of the paragraphs of this Promissory Note are inserted for convenience of reference only and shall not be deemed to constitute a part hereof. Words used herein of any gender shall be construed to include any other gender where appropriate and words used herein which are either singular or plural shall be construed to include the other where appropriate.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="49" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>13.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Successors and Assigns</font></u><font size=2>. The provisions hereof shall be binding upon and shall insure to the benefit of Obligor and Holder and their respective successors and assigns.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="49" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>14.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Partial Invalidity</font></u><font size=2>. If any provision of this Promissory Note is held to be invalid or unenforceable, such invalidity or unenforceability shall not invalidate this Promissory Note as a whole but this Promissory Note shall be construed as though it did not contain the particular provision or provisions held to be invalid or unenforceable, and the rights and obligations of the parties shall be construed and enforced only to such extent as shall be permitted by law.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>{00080488.5 / 0831-002}</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>3</font></p>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'>
<B><font SIZE=2>IN WITNESS WHEREOF</font></B><font size=2>, the OBLIGOR has signed this Note as of the 4th day of December, 2005.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:2.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:2.5in;text-align:left;'><font SIZE=2>OBLIGOR:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:2.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:2.5in;text-align:left;'><font size=2>Adsero Corp.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:2.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:2.5in;text-align:left;'><font size=2>By: <u>/s/ Yvon L&#233;veill&#233;</u></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:2.5in;text-align:left;'><font size=2>Name: <u> Yvon L&#233;veill&#233;</u></font></p>

<p style=' margin-bottom:0pt; margin-top:5pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>{00080488.5 / 0831-002}</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>4</font></p>

<HR noshade align="center" width="100%" size="2">

</div>
</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>10
<FILENAME>ex_10-6.htm
<DESCRIPTION>PROMISSORY NOTE DATED 11-04-05
<TEXT>
<HTML>
<HEAD>
<TITLE> </TITLE>
</HEAD>
<BODY bgcolor="#ffffff" style='font-family:"Times New Roman"'>

<div style='width:600;'>

<A NAME="ex_10-6"></A>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><B><font SIZE=2>EXHIBIT 10.6</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><B><font SIZE=2>THIS NOTE HAS BEEN ISSUED PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF FEDERAL AND STATE SECURITIES LAWS AND MAY NOT BE SOLD OR TRANSFERRED WITHOUT COMPLIANCE WITH SUCH REQUIREMENTS OR A WRITTEN OPINION OF COUNSEL ACCEPTABLE TO THE OBLIGOR THAT SUCH TRANSFER WILL NOT RESULT IN ANY VIOLATION OF SUCH LAWS OR AFFECT THE LEGALITY OF ITS ISSUANCE.</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>CONVERTIBLE PROMISSORY NOTE</font></B></p>


<table border="0" cellspacing=0 cellpadding=0 width="596" style='border-collapse:collapse'>
    <tr >
        <td width="457" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>$136,198</font></p> </td>
        <td width="139" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>November 4, 2005</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.56in;text-align:justify;'><font size=2>FOR VALUE RECEIVED, the undersigned, Adsero Corp., a Delaware corporation with offices at 2101 Nobel Street, Sainte Julie, Quebec, J3E 1Z8 (the &#147;Obligor&#148;), hereby promises to pay to the order of Alain Lachambre and or its designate (the &#147;Holder&#148;), with residing at _________________________________, the principal sum of One hundred and thirty six thousand, one hundred and ninety eight US dollars ($136,198) payable as set forth below. The Obligor also promises to pay to the order of the Holder interest on the principal amount hereof at a rate per annum equal to five percent (5.0%), which interest shall be payable monthly in arrears. Interest shall be calculated on the basis of the year of 365 days and for the number of days actually elapsed. Any amounts of interest and principal not paid when due, including upon an Event of Default (as hereinafter defined), shall bear
interest at the maximum rate of interest allowed by applicable law. The payments of principal and interest hereunder shall be made in currency of the United States of America that at the time of payment shall be legal tender therein for the payment of public and private debts. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>This Note shall be subject to the following additional terms and conditions:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Payments</font></u><font size=2>. Interest and principal due on this Note are payable no later than December 31, 2006 (the &#147;Maturity Date&#148;); </font><u><font size=2>provided however</font></u><font size=2>, that the parties may mutually agree to extend the terms of this Note beyond the Maturity Date. In the event that any payment to be made hereunder shall be or become due on Saturday, Sunday or any other day which is a legal bank holiday under the laws of Canada or the United States such payment shall be or become due on the next succeeding business day and interest shall accrue during such extension of time</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Optional Prepayment</font></u><font size=2>. The Obligor and the Holder understand and agree that the principal amount of this Note plus all accrued interest due thereon may be prepaid, at ayn time, by the Obligor, in its discretion, at any time prior to the Maturity Date. Obligor will provide 10 business days written notice to Holder for prepayment during which time </font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Conversion into Common Stock</font></u><font size=2>. If the note and interest have not been fully paid on or before December 31, 2006 then the Holder may, at its sole option, convert the total unpaid principal and interest hereunder into common shares of the Obligor at the rate of $0.50 for each common share. The Holder shall provide written notice to Obligor of its intention to convert to the fax number 416-467-7173 attention CFO. </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>{00080488.5 / 0831-002}</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>1</font></p>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>No Waiver</font></u><font size=2>. No failure or delay by the Holder in exercising any right, power or privilege under the Note shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law. No course of dealing between the Obligor and the Holder shall operate as a waiver of any rights by the Holder.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>5.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Waiver of Presentment and Notice of Dishonor</font></u><font size=2>. The Obligor and other parties that may be liable under this Note hereby waive presentment, notice of dishonor, protest and all other demands and notices in connection with the delivery, acceptance, performance or enforcement of this Note.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>6.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Place of Payment</font></u><font size=2>. All payments of principal of this Note and the interest due hereon shall be made to Holder at the address appearing above or at such other address as the Holder may designate in writing.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>7.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Events of Default</font></u><font size=2>. The entire unpaid principal amount of this Note and the interest due hereon shall forthwith become and be due and payable, without presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived, if any one or more of the following events (herein called &#147;Events of Default&#148;) shall have occurred (for any reason whatsoever and whether such happening shall be voluntary or involuntary or come about or be effected by operation of law or pursuant to or in compliance with any judgement, decree or order of any court or any order, rule or regulation of any administrative or governmental body ):</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>if the Obligor shall:</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(i)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>admit in writing its inability to pay its debts generally as they become due;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(ii)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>file a petition in bankruptcy or petition to take advantage of any insolvency act;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(iii)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>make assignment for the benefit of creditors;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(iv)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>consent to the appointment of a receiver of the whole or any substantial part of its property;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(v)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>on a petition in bankruptcy filed against it, be adjudicated a bankrupt;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(vi)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>file a petition or answer seeking reorganization or arrangement under the Federal bankruptcy laws or any other applicable law or statute of Canada or any province thereof or of the United States of America or any state, district or territory thereof;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>{00080488.5 / 0831-002}</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>2</font></p>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(b)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>if a court of competent jurisdiction shall enter an order, judgment, or decree appointing, without the consent of the Obligor, a receiver of the whole or any substantial part of the Obligor&#146;s property;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(c)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>if, under the provisions of any other law for the relief or aid of debtors, any court of competent jurisdiction shall assume custody or control of the whole or any substantial part of Obligor&#146;s property; or</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(d)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>if the Obligor sells or otherwise transfers all or substantially all of its assets.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>8.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Remedies</font></u><font size=2>. In case any one or more of the Events of Default specified in Section 7 hereof shall have occurred and be continuing, the Holder may proceed to protect and enforce its rights whether by suit and/or equity and/or by action of law, whether for the specific performance of any covenant or agreement contained in this Note or in aid of the exercise of any power granted in this Note, or the Holder may proceed to enforce the payment of all sums due upon the Note or enforce any other legal or equitable right of the Holder.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>9.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Costs and Expenses</font></u><font size=2>. Each of the parties shall bear their own legal expenses in connection with this Note. In the event Obligor defaults on its obligations hereunder, the Holder shall be entitled to recover all of its reasonable attorney&#146;s fees and costs incurred in enforcing its rights hereunder.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="49" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>10.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Amendments</font></u><font size=2>. No amendment, modification or waiver of any provision of this Promissory Note nor consent to any departure by the Obligor there from shall be effective unless the same shall be in writing and signed by Holder and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="49" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>11.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Governing Law</font></u><font size=2>. This Promissory Note shall be deemed to be a contract made under the laws of New York and shall be governed and construed in accordance with the laws of said state without giving effect to principles of conflicts of law.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="49" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>12.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Headings and Construction</font></u><font size=2>. The headings of the paragraphs of this Promissory Note are inserted for convenience of reference only and shall not be deemed to constitute a part hereof. Words used herein of any gender shall be construed to include any other gender where appropriate and words used herein which are either singular or plural shall be construed to include the other where appropriate.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="49" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>13.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Successors and Assigns</font></u><font size=2>. The provisions hereof shall be binding upon and shall insure to the benefit of Obligor and Holder and their respective successors and assigns.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="49" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>14.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Partial Invalidity</font></u><font size=2>. If any provision of this Promissory Note is held to be invalid or unenforceable, such invalidity or unenforceability shall not invalidate this Promissory Note as a whole but this Promissory Note shall be construed as though it did not contain the particular provision or provisions held to be invalid or unenforceable, and the rights and obligations of the parties shall be construed and enforced only to such extent as shall be permitted by law.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>{00080488.5 / 0831-002}</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>3</font></p>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'>
<B><font SIZE=2>IN WITNESS WHEREOF</font></B><font size=2>, the OBLIGOR has signed this Note as of the 4th day of December, 2005.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:2.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:2.5in;text-align:left;'><font SIZE=2>OBLIGOR:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:2.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:2.5in;text-align:left;'><font size=2>Adsero Corp.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:2.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:2.5in;text-align:left;'><font size=2>By: <u>/s/ Yvon L&#233;veill&#233;</u></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:2.5in;text-align:left;'><font size=2>Name: <u> Yvon L&#233;veill&#233;</u></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>{00080488.5 / 0831-002}</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>4</font></p>

<HR noshade align="center" width="100%" size="2">

</div>
</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>11
<FILENAME>ex_10-7.htm
<DESCRIPTION>PROMISSORY NOTE DATED 11-04-05
<TEXT>
<HTML>
<HEAD>
<TITLE> </TITLE>
</HEAD>
<BODY bgcolor="#ffffff" style='font-family:"Times New Roman"'>

<div style='width:600;'>

<A NAME="ex_10-7"></A>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><B><font SIZE=2>EXHIBIT 10.7</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><B><font SIZE=2>THIS NOTE HAS BEEN ISSUED PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF FEDERAL AND STATE SECURITIES LAWS AND MAY NOT BE SOLD OR TRANSFERRED WITHOUT COMPLIANCE WITH SUCH REQUIREMENTS OR A WRITTEN OPINION OF COUNSEL ACCEPTABLE TO THE OBLIGOR THAT SUCH TRANSFER WILL NOT RESULT IN ANY VIOLATION OF SUCH LAWS OR AFFECT THE LEGALITY OF ITS ISSUANCE.</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>CONVERTIBLE PROMISSORY NOTE</font></B></p>


<table border="0" cellspacing=0 cellpadding=0 width="596" style='border-collapse:collapse'>
    <tr >
        <td width="457" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>$135,689</font></p> </td>
        <td width="139" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>November 4, 2005</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.56in;text-align:justify;'><font size=2>FOR VALUE RECEIVED, the undersigned, Adsero Corp., a Delaware corporation with offices at 2101 Nobel Street, Sainte Julie, Quebec, J3E 1Z8 (the &#147;Obligor&#148;), hereby promises to pay to the order of Manchester Consolidated Corp. and or its designate (the &#147;Holder&#148;), with offices at 1591 Jalna Avenue, Mississauga, Ontario, L5J 1S8, the principal sum of One hundred and thirty thousand, six hundred and eighty nine US dollars ($135,689) payable as set forth below. The Obligor also promises to pay to the order of the Holder interest on the principal amount hereof at a rate per annum equal to five percent (5.0%), which interest shall be payable monthly in arrears. Interest shall be calculated on the basis of the year of 365 days and for the number of days actually elapsed. Any amounts of interest and principal not paid when due, including upon an Event of Default (as hereinafter
defined), shall bear interest at the maximum rate of interest allowed by applicable law. The payments of principal and interest hereunder shall be made in currency of the United States of America that at the time of payment shall be legal tender therein for the payment of public and private debts. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>This Note shall be subject to the following additional terms and conditions:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Payments</font></u><font size=2>. Interest and principal due on this Note are payable no later than December 31, 2006 (the &#147;Maturity Date&#148;); </font><u><font size=2>provided however</font></u><font size=2>, that the parties may mutually agree to extend the terms of this Note beyond the Maturity Date. In the event that any payment to be made hereunder shall be or become due on Saturday, Sunday or any other day which is a legal bank holiday under the laws of Canada or the United States such payment shall be or become due on the next succeeding business day and interest shall accrue during such extension of time</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Optional Prepayment</font></u><font size=2>. The Obligor and the Holder understand and agree that the principal amount of this Note plus all accrued interest due thereon may be prepaid, at ayn time, by the Obligor, in its discretion, at any time prior to the Maturity Date. Obligor will provide 10 business days written notice to Holder for prepayment during which time </font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Conversion into Common Stock</font></u><font size=2>. If the note and interest have not been fully paid on or before December 31, 2006 then the Holder may, at its sole option, convert the total unpaid principal and interest hereunder into common shares of the Obligor at the rate of $0.50 for each common share. The Holder shall provide written notice to Obligor of its intention to convert to the fax number 416-467-7173 attention CFO. </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>{00080488.5 / 0831-002}</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>1</font></p>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>No Waiver</font></u><font size=2>. No failure or delay by the Holder in exercising any right, power or privilege under the Note shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law. No course of dealing between the Obligor and the Holder shall operate as a waiver of any rights by the Holder.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>5.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Waiver of Presentment and Notice of Dishonor</font></u><font size=2>. The Obligor and other parties that may be liable under this Note hereby waive presentment, notice of dishonor, protest and all other demands and notices in connection with the delivery, acceptance, performance or enforcement of this Note.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>6.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Place of Payment</font></u><font size=2>. All payments of principal of this Note and the interest due hereon shall be made to Holder at the address appearing above or at such other address as the Holder may designate in writing.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>7.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Events of Default</font></u><font size=2>. The entire unpaid principal amount of this Note and the interest due hereon shall forthwith become and be due and payable, without presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived, if any one or more of the following events (herein called &#147;Events of Default&#148;) shall have occurred (for any reason whatsoever and whether such happening shall be voluntary or involuntary or come about or be effected by operation of law or pursuant to or in compliance with any judgement, decree or order of any court or any order, rule or regulation of any administrative or governmental body ):</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>if the Obligor shall:</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(i)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>admit in writing its inability to pay its debts generally as they become due;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(ii)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>file a petition in bankruptcy or petition to take advantage of any insolvency act;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(iii)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>make assignment for the benefit of creditors;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(iv)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>consent to the appointment of a receiver of the whole or any substantial part of its property;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(v)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>on a petition in bankruptcy filed against it, be adjudicated a bankrupt;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(vi)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>file a petition or answer seeking reorganization or arrangement under the Federal bankruptcy laws or any other applicable law or statute of Canada or any province thereof or of the United States of America or any state, district or territory thereof;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>{00080488.5 / 0831-002}</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>2</font></p>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(b)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>if a court of competent jurisdiction shall enter an order, judgment, or decree appointing, without the consent of the Obligor, a receiver of the whole or any substantial part of the Obligor&#146;s property;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(c)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>if, under the provisions of any other law for the relief or aid of debtors, any court of competent jurisdiction shall assume custody or control of the whole or any substantial part of Obligor&#146;s property; or</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(d)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>if the Obligor sells or otherwise transfers all or substantially all of its assets.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>8.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Remedies</font></u><font size=2>. In case any one or more of the Events of Default specified in Section 7 hereof shall have occurred and be continuing, the Holder may proceed to protect and enforce its rights whether by suit and/or equity and/or by action of law, whether for the specific performance of any covenant or agreement contained in this Note or in aid of the exercise of any power granted in this Note, or the Holder may proceed to enforce the payment of all sums due upon the Note or enforce any other legal or equitable right of the Holder.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>9.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Costs and Expenses</font></u><font size=2>. Each of the parties shall bear their own legal expenses in connection with this Note. In the event Obligor defaults on its obligations hereunder, the Holder shall be entitled to recover all of its reasonable attorney&#146;s fees and costs incurred in enforcing its rights hereunder.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="49" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>10.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Amendments</font></u><font size=2>. No amendment, modification or waiver of any provision of this Promissory Note nor consent to any departure by the Obligor there from shall be effective unless the same shall be in writing and signed by Holder and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="49" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>11.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Governing Law</font></u><font size=2>. This Promissory Note shall be deemed to be a contract made under the laws of New York and shall be governed and construed in accordance with the laws of said state without giving effect to principles of conflicts of law.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="49" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>12.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Headings and Construction</font></u><font size=2>. The headings of the paragraphs of this Promissory Note are inserted for convenience of reference only and shall not be deemed to constitute a part hereof. Words used herein of any gender shall be construed to include any other gender where appropriate and words used herein which are either singular or plural shall be construed to include the other where appropriate.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="49" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>13.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Successors and Assigns</font></u><font size=2>. The provisions hereof shall be binding upon and shall insure to the benefit of Obligor and Holder and their respective successors and assigns.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="49" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>14.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Partial Invalidity</font></u><font size=2>. If any provision of this Promissory Note is held to be invalid or unenforceable, such invalidity or unenforceability shall not invalidate this Promissory Note as a whole but this Promissory Note shall be construed as though it did not contain the particular provision or provisions held to be invalid or unenforceable, and the rights and obligations of the parties shall be construed and enforced only to such extent as shall be permitted by law.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>{00080488.5 / 0831-002}</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>3</font></p>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'>
<B><font SIZE=2>IN WITNESS WHEREOF</font></B><font size=2>, the OBLIGOR has signed this Note as of the 4th day of December, 2005.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:2.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:2.5in;text-align:left;'><font SIZE=2>OBLIGOR:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:2.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:2.5in;text-align:left;'><font size=2>Adsero Corp.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:2.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:2.5in;text-align:left;'><font size=2>By: <u>/s/ Yvon L&#233;veill&#233;</u></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:2.5in;text-align:left;'><font size=2>Name: <u> Yvon L&#233;veill&#233;</u></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>{00080488.5 / 0831-002}</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>4</font></p>

<HR noshade align="center" width="100%" size="2">

</div>
</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>12
<FILENAME>ex_10-8.htm
<DESCRIPTION>AGENCY AGREEMENT DATED 11-09-05
<TEXT>
<HTML>
<HEAD>
<TITLE> </TITLE>
</HEAD>
<BODY bgcolor="#ffffff" style='font-family:"Times New Roman"'>

<div style='width:600;'>

<A NAME="ex_10-8"></A>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:right;'><B><font SIZE=2>EXHIBIT 10.8</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:right;'><font size=2>November 9, 2005</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Adsero Corp.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>2101 Nobel Street</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Sainte-Julie, Quebec</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;'><font SIZE=2>J3E 1Z8</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="245" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0in'><b><font size=2>Attention:</font></b></p> </td>
        <td width="149" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0in'><b><font size=2>Mr.</font></b><font size=2>&nbsp;</font><b><font size=2>William Smith</font></b></p> </td> </tr></table>

<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><b><font size=2>Chief Financial Officer</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>Dear Sirs:</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Loewen, Ondaatje, McCutcheon Limited (the &#147;</font><b><font size=2>Agent</font></b><font size=2>&#148;) understands that Adsero Corp. (the &#147;</font><b><font size=2>Corporation</font></b><font size=2>&#148;) proposes to issue up to 4,000,000 subscription receipts (the &#147;</font><b><font size=2>Subscription Receipts</font></b><font size=2>&#148;) at a price of U.S.$0.50 per Subscription Receipt. Each Subscription Receipt shall be automatically exercised, without payment of any additional consideration, at the Automatic Exercise Date (as defined below) into, subject to adjustment, one unit of the Corporation (a &#147;</font><b><font size=2>Unit</font></b><font size=2>&#148;). Each Unit shall be comprised of one share of the common stock of the Corporation (a &#147;</font><b><font size=2>Unit Share</font></b><font size=2>&#148;) and one common share purchase warrant (a
&#147;</font><b><font size=2>Warrant</font></b><font size=2>&#148;). Each Warrant shall entitle the holder to purchase an additional share of the common stock of the Corporation (a &#147;</font><b><font size=2>Warrant Share</font></b><font size=2>&#148;) at a price of U.S.$1.25 during the 30-month period following closing of the offering of the Subscription Receipts (the &#147;</font><b><font size=2>Offering</font></b><font size=2>&#148;).  </font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&#147;</font><b><font size=2>Automatic Exercise Date</font></b><font size=2>&#148; means the earlier of: (a) December 31, 2005; (b) the closing date in respect of the Prospectus (as defined below) and the Registration Statement (as defined below); and (c) the Qualification Date. &#147;</font><b><font size=2>Qualification Date</font></b><font size=2>&#148; means the earlier of: (a) December 31, 2005; and (b) the date ten business days following the date by which both (i) a receipt for the Prospectus has been obtained by the Corporation from the Securities Commissions and (ii) the Registration Statement has become effective for registering the resale of the Unit Shares and Warrants (including those underlying the Agent&#146;s Warrants (as defined below)) and the issuance of the Warrant Shares upon exercise of the Warrants. &#147;</font><b><font size=2>Qualification
Conditions</font></b><font size=2>&#148; are defined as: (a) the Corporation having obtained a receipt for the Prospectus and the Registration Statement having become effective for registering the resale of the Unit Shares and Warrants (including those underlying the Agent&#146;s Warrants) and the issuance of the Warrant Shares upon exercise of the Warrants; and (b) the shares of common stock of the Corporation having been listed for trading on the Toronto Stock Exchange (&#147;</font><B><font SIZE=2>TSX</font></B><font size=2>&#148;). &#147;</font><b><font size=2>Prospectus</font></b><font size=2>&#148; means the final prospectus of the Corporation that qualifies the Units and Agent&#146;s Warrants (as defined below) for issuance in Canada. &#147;</font><b><font size=2>Registration Statement</font></b><font size=2>&#148; means a registration statement under the United States </font><i><font size=2>Securities Act of 1933</font></i><font size=2>, as&nbsp;amended (the
&#147;</font><b><font size=2>1933 Act</font></b><font size=2>&#148;) and applicable state securities laws registering the resale of the Unit Shares and the Warrants (including those underlying the Agent&#146;s Warrants) </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p><PAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>and the issuance of the Warrant Shares upon exercise of the Warrants. &#147;</font><b><font size=2>Securities Commissions</font></b><font size=2>&#148; means the securities commissions or securities regulatory authorities in those Canadian provinces where purchasers of the Subscription Receipts reside.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The Corporation hereby appoints the Agent as the exclusive agent of the Corporation to solicit, on a best efforts basis, orders for the Subscription Receipts, and the Agent hereby accepts such appointment upon and subject to the terms and conditions set out below. The Corporation agrees that the Agent is under no obligation to purchase any of the Subscription Receipts.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;'><b><font size=2>Terms and Conditions</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The terms and conditions relating to the purchase and sale of the Subscription Receipts are as follows:</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="195" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 4.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><b><font size=2>Section</font></b><font size=2>&nbsp;</font><b><font size=2>1</font></b></p> </td>
        <td width="99" valign=top style='padding:0in 0in 4.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><b><font size=2>Definitions.</font></b></p> </td> </tr></table>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The date on which the Corporation closes the Offering is herein referred to as the &#147;</font><b><font size=2>Closing Date</font></b><font size=2>&#148;. The time of the closing of the Offering on the Closing Date is herein referred to as the &#147;</font><b><font size=2>Time</font></b><font size=2> </font><b><font size=2>of Closing</font></b><font size=2>&#148;. The Subscription Receipts, the Unit Shares, the  Warrants, the Warrant Shares the Broker Warrants (as defined below) and he Agent&#146;s Warrants (as defined below) are collectively referred to herein as the &#147;</font><b><font size=2>Securities</font></b><font size=2>&#148;. </font><b><font size=2>References herein to Unit Shares, Warrants and Warrant Shares shall be deemed to include Unit Shares, Warrants and Warrant Shares issuable by the Corporation to the Agent in connection with the exercise of the Agent&#146;s
Warrants. </font></b><font size=2>&#147;</font><b><font size=2>Business Day</font></b><font size=2>&#148; means any day except Saturday, Sunday or a statutory holiday in Toronto, Ontario.</font><b><font size=2> Unless otherwise specified</font></b><font size=2>, a</font><b><font size=2>ll references herein to &#147;U.S.$&#148; are to United States dollars</font></b><font size=2>. </font></p>


<table border="0" cellspacing=0 cellpadding=0 width="179" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 4.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><b><font size=2>Section</font></b><font size=2>&nbsp;</font><b><font size=2>2</font></b></p> </td>
        <td width="83" valign=top style='padding:0in 0in 4.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><b><font size=2>Offering.</font></b></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(1)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The Agent may offer for sale and sell the Subscription Receipts to purchasers (the &#147;</font><b><font size=2>Purchasers</font></b><font size=2>&#148;) in the Provinces of British Columbia, Alberta, Manitoba, Ontario and Qu&#233;bec and in such other provinces of Canada and in such other jurisdictions outside of Canada, other than the United States, as the Agent and the Corporation may mutually determine, in compliance with all applicable securities laws and in such a manner so as not to require registration thereof or filing of a prospectus or offering memorandum with respect thereto under such laws.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(2)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>If, in the opinion of the Agent, it is necessary, the Agent will form, manage and participate in a group of sub-agents to offer and sell the Subscription Receipts as provided for hereunder. Each sub-agent shall be appropriately registered under the applicable securities laws. In the event that a selling group is formed, the Agent will:</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(a)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>manage the selling group as and to the extent customary in the securities industry in Canada; and</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(b)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>require each member of the selling group to offer and sell the Subscription Receipts on the terms set forth in this Agreement.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>- 2 -</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p><PAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(3)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The Corporation agrees to pay to the Agent a commission (the </font><b><font size=2>&#147;Agent&#146;s Commission&#148;</font></b><font size=2>) equal to 7.0% of the gross aggregate proceeds of the Offering. In addition, the Corporation shall issue to the Agent on the Closing Date broker warrants (the &#147;</font><b><font size=2>Broker</font></b><font size=2> </font><b><font size=2>Warrants</font></b><font size=2>&#148;) equal in number to 7.0% of the number of Subscription Receipts sold. Each Broker Warrant shall be automatically exercised, without payment of any consideration, at the Automatic Exercise Date (as defined below) into, subject to adjustment, one agent&#146;s warrant (each an &#147;</font><b><font size=2>Agent&#146;s Warrant</font></b><font size=2>&#148;). Each Agent&#146;s Warrant shall entitle the Holder,
subject to adjustment and the terms and conditions set forth in the Agent&#146;s Warrant certificate, to purchase from the Corporation one Unit of the Corporation at a price of U.S.$0.50 per Unit during the 30-month period following the Closing Date. </font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(4)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>Prior to the Closing Date, the Corporation shall allow the Agent to participate fully in the preparation of any necessary documentation and shall allow the Agent to conduct all due diligence which the Agent may reasonably require.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(5)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The Agent covenants, represents and warrants to the Corporation that:  (i)&nbsp;it will comply with all applicable securities legislation of the provinces in which Subscription Receipts are sold (the &#147;</font><b><font size=2>Offering Provinces</font></b><font size=2>&#148;) in connection with acting as agent of the Corporation in connection with the Offering; (ii)&nbsp;it will not offer or sell Subscription Receipts so as to require registration thereof or filing of a prospectus or offering memorandum with respect thereto under the laws of any jurisdiction and will not solicit offers to purchase or sell the Subscription Receipts in any jurisdiction outside of Canada where the solicitation or sale of the Subscription Receipts would result in any ongoing disclosure requirements in such jurisdiction, any registration
requirements in such jurisdiction or where the Corporation may be subject to liability in connection with the sale of the Subscription Receipts which is materially more onerous than its liability under applicable securities laws to which it is subject at the date of this Agreement; (iii)&nbsp;the Agent will obtain from each Purchaser an executed subscription agreement in the appropriate form agreed to by the Corporation and the Agent (collectively, the &#147;</font><b><font size=2>Subscription Agreements</font></b><font size=2>&#148;) together with all requisite forms, undertakings and materials; (iv) the Agent will not make available to prospective purchasers of the Subscription Receipts any documents which would constitute an offering memorandum as defined under the securities legislation of Ontario and will not advertise the proposed sale of such securities in printed public media, radio, television or telecommunications, including electronic display; (v) it will not make any
representations or warranties in respect of the Corporation as agent or otherwise except as permitted in writing by the Corporation; and (vi) it will not solicit subscriptions for Subscription Receipts except in accordance with the terms and conditions of this Agreement.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="297" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 4.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><b><font size=2>Section</font></b><font size=2>&nbsp;</font><b><font size=2>3</font></b></p> </td>
        <td width="201" valign=top style='padding:0in 0in 4.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><b><font size=2>United States Compliance.</font></b></p> </td> </tr></table>

<p style=' margin-bottom:6pt; margin-top:6pt; text-indent:0.56in;text-align:justify;'><font size=2>No offering or sales of Subscription Receipts shall be made in the United States or to, or for the account of, U.S. persons or persons in the United States. It is intended that the offer and sale of Subscription Receipts shall be completed in accordance with Rule 903 of </font></p>

<p style=' margin-bottom:0pt; margin-top:6pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>- 3 -</font></p>

<p style=' margin-bottom:0pt; margin-top:6pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p><PAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:6pt; margin-top:6pt;text-align:justify;'><font size=2>Regulation S, and the parties agree to complete the Offering in compliance with Schedule 3 hereto, which is hereby incorporated in this Agreement.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="361" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:12.0pt 0in 4.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><b><font size=2>Section</font></b><font size=2>&nbsp;</font><b><font size=2>4</font></b></p> </td>
        <td width="265" valign=top style='padding:12.0pt 0in 4.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><b><font size=2>Representations of the Corporation.</font></b></p> </td> </tr></table>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The Corporation represents and warrants to the Agent and the Purchasers, and acknowledges that the Agent and the Purchasers are relying upon such representations and warranties (and confirms, for greater certainty, that the Purchasers, in addition to the Agent, shall have the benefit of such representations and warranties as if they had been made directly to the Purchasers under their respective Subscription Agreements), as follows:</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(a)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>Each of the Corporation and its subsidiaries is validly subsisting under its applicable laws of jurisdiction, is current and up-to-date with all material filings required to be made by it and has all requisite corporate capacity, power and authority and is qualified or authorized to carry on its business as now conducted and to own or lease and operate its property and assets in all jurisdictions where such qualification or authorization is required and to undertake the Offering and to carry out all other obligations and transactions contemplated herein, including entering into, executing and delivering this Agreement, the Subscription Agreements, and the certificates representing the Subscription Receipts, the Warrants, the Broker Warrants and the Agent&#146;s Warrants (collectively, the &#147;</font><b><font
size=2>Documents</font></b><font size=2>&#148;) and carrying out its obligations thereunder;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(b)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The Corporation is in compliance in all material respects with the rules of any applicable United States exchange or bulletin board, to the extent they exist, and no material change relating to the Corporation has occurred within the past 12&nbsp;months that has not been generally disclosed and that in relation thereto the requisite press release or current report on Form 8-K has not been filed under applicable securities laws and no such disclosure has been made on a confidential basis;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(c)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>As at the date hereof, the authorized capital of the Corporation consists of 100,000,000 shares of common stock, U.S.$0.001 par value,  and 20,000,000 shares of preferred stock, U.S.$0.0001 par value, of which 11,330,000  of the shares of preferred stock have been designated as Series A Special Voting Stock. As at the close of business on November 2, 2005, 17,241,975 shares of common stock and 6,500,000 Series A preferred shares were issued and outstanding; </font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(d)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>Except as set forth in Schedule 4(d), neither the Corporation nor any subsidiary is party to nor has granted any agreement, warrant, option or right or privilege capable of becoming an agreement, for the purchase, subscription or issuance of any shares of the Corporation or any subsidiary thereof or securities convertible into or exchangeable for shares of the Corporation or any subsidiary thereof;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>- 4 -</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p><PAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(e)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>Each of the Corporation and its subsidiaries has conducted and is conducting its business in compliance in all material respects with all applicable laws, rules, regulations, tariffs, orders and directives of each jurisdiction in which it carries on its business and possesses all material certificates, authorities, permits or licences issued by the appropriate provincial, state, municipal, federal or other governmental or regulatory agency or body necessary to carry on its business currently as carried on, or contemplated to be carried on, by it, is in compliance in all material respects with such certificates, authorities, permits and licences and with all laws, regulations, tariffs, rules, orders and directives material to its operations, and each of the Corporation and its subsidiaries has not received any notice of
proceedings relating to the revocation or modification of any such certificates, authorities, permits or licences which, singly or in the aggregate, if the subject of an unfavourable decision, order, ruling or finding, would materially and adversely affect the conduct of the Corporation&#146;s or subsidiary&#146;s business, operations, financial condition or income, and neither the Corporation nor any of its subsidiaries has received notice of the revocation or cancellation of, or any intention to revoke or cancel, any such licence, permit, approval, consent, certificate, registration or authorization;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(f)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>Except as set forth in Schedule 4(f) hereto, each of the Corporation and its subsidiaries is the absolute legal and beneficial owner of, and has good and marketable title to, all of its material assets, free of all mortgages, liens, charges, pledges, security interests, encumbrances, claims or demands whatsoever, and no other assets or property rights are necessary for the conduct of the business of the Corporation or its subsidiaries, there are no restrictions on the ability of the Corporation or its subsidiaries to use, transfer or otherwise exploit such assets or property rights, and neither the Corporation nor its subsidiaries knows of any claim or basis for a claim that might or could adversely affect its rights to use, transfer or otherwise exploit such assets or property rights and neither the Corporation nor its
subsidiaries has any responsibility or obligation to pay any commission, royalty, licence, fee or similar payment to any person with respect to the assets or property rights thereof;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(g)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>Any and all agreements pursuant to which each of the Corporation and its subsidiaries holds its material assets or is entitled to the use of material assets are valid and subsisting agreements in full force and effect, enforceable in accordance with their respective terms and neither the Corporation nor its subsidiaries is in material default of any of the provisions of any such agreements nor has any such default been alleged, and neither the Corporation nor its subsidiaries is aware of any disputes with respect thereto and such assets are in good standing under the applicable statutes and regulations of the jurisdictions in which they are situate, and all leases, licences and agreements pursuant to which the Corporation and its subsidiaries derive their interests in such material assets are in good standing and there has been
no material </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>- 5 -</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p><PAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:1in;text-align:justify;'><font size=2>default under any such leases, licenses or agreements and all taxes required to be paid with respect to such assets to the date hereof have been paid;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(h)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>Except as set forth in Schedule 4(h) hereto, the Corporation is in material compliance with all material agreements, contracts, mortgages, debentures, guarantees and all other instruments except as other   relating to the operations and has not received notice of any default , breach or contravention of any such agreement, contract, mortgage, debenture, guarantee or instrument and has not received notice of any intention by a third party to terminate any such agreement, contract, mortgage, debenture, guarantee or instrument; </font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(i)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>Each of the Documents has been duly authorized and, except for the certificates representing the Warrants and the Agent&#146;s Warrants,  executed and delivered by the Corporation, and each of the Documents constitutes, or in the case of the Warrants and the Agent&#146;s Warrants, shall constitute upon execution and delivery, a valid and binding obligation of the Corporation, enforceable against the Corporation in accordance with the terms thereof, except that (i) the enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the rights of creditors generally, (ii) equitable remedies, including, without limitation, specific performance and injunction, may be granted only in the discretion of a court of competent jurisdiction, and (iii) rights of indemnity, contribution and
the waiver of contribution provided for herein may be limited under applicable law;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(j)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The entering into of and the performance of the transactions contemplated herein and in the other Documents:</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(i)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>do not require any consent, approval, authorization or order of any court or governmental agency or body, except that which may be required under applicable securities legislation or stock exchange requirements;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(ii)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>will not contravene any statute or regulation of any governmental authority which is binding on the Corporation; and</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(iii)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>will not result in the breach of, or be in conflict with, or constitute a default under, or create a state of facts which, after notice or lapse of time, or both, would constitute a default under any term or provision of the constating documents, by-laws or resolutions of the Corporation or any material mortgage, note, indenture, contract or agreement (written or oral) instrument, lease or other document to which the Corporation is a party, or any judgment, decree or order or any term or provision thereof, which breach, conflict or default would materially and adversely affect the business, operations, capital or condition (financial or otherwise) of the Corporation that would result in any material </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>- 6 -</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p><PAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:1.5in;text-align:justify;'><font size=2>adverse change in the operations, business or condition of the Corporation;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(k)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>Except as disclosed in Schedule 4(k), there is no action, proceeding or, to the Corporation&#146;s or any subsidiary&#146;s knowledge, investigation pending or, to the Corporation&#146;s or any subsidiary&#146;s knowledge, threatened by or against or affecting the Corporation or any of its subsidiaries at law or in equity or before any international, federal, provincial, state, municipal or other governmental department, commission, board or agency or court, domestic or foreign, which could reasonably be expected to materially adversely affect the Corporation  or any of its subsidiaries or the condition of the Corporation or any of its subsidiaries which questions the validity of the issuance of the Securities or any action taken or to be taken by the Corporation in connection with this Agreement;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(l)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The Corporation has filed with or furnished to the United States Securities and Exchange Commission (&#147;</font><B><font SIZE=2>SEC</font></B><font size=2>&#148;) all reports, forms, schedules, registration statements and other materials and documents that it was required to file or furnish under the 1933 Act, the United States </font><i><font size=2>Securities Exchange Act of 1934, </font></i><font size=2>as amended</font><i><font size=2> </font></i><font size=2>(the &#147;</font><b><font size=2>1934 Act</font></b><font size=2>&#148;) and other United States federal and state securities laws since January 1, 2004 (collectively, the &#147;</font><b><font size=2>Securities Filings</font></b><font size=2>&#148;), and each of the Securities Filings (a) complied in all material respects with the requirements of the statutes
pursuant to which it was filed or furnished and the rules and regulations thereunder, and (b) did not, at the time it was filed or furnished, contain any untrue statement of material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; </font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(m)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The audited annual consolidated financial statements of the Corporation as at and for the year ended December 31, 2004 (including the related notes thereto) that have been previously delivered to the Agent (collectively, the &#147;</font><b><font size=2>Financial Statements</font></b><font size=2>&#148;) have been prepared in accordance with United States generally accepted accounting principles, complied in all material respects with applicable accounting requirements and published rules and regulations of the United States regulatory authorities, and present fairly, in all material respects, the consolidated financial position of the Corporation as at December 31, 2004 and the consolidated results of its operations and the changes in its financial position for the year ended December 31, 2004;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(n)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>All securities issued by the Corporation since January 1, 2002 were issued in compliance with the registration requirements of the 1933 Act and all applicable state securities laws or were issued in compliance with exemptions from registration or the exclusions from registration provided by Regulation S;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>- 7 -</font></p>

<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p><PAGE>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(o)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The Corporation maintains accurate books and records reflecting its assets and liabilities and maintains proper and adequate internal accounting controls which provide assurance that (i) transactions are executed with management&#146;s authorization; (ii) transactions are recorded as necessary to permit preparation of consolidated financial statements of the Corporation and to maintain accountability for the Corporation&#146;s consolidated assets; (iii) access to the Corporation&#146;s consolidated assets is permitted only in accordance with management&#146;s authorization; (iv) the reporting of the Corporation&#146;s assets is compared with existing assets at regular intervals; and (v) accounts, notes and other receivables and inventory are recorded accurately, and proper and adequate procedures are implemented to effect the
collection thereof on a current and timely basis;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(p)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The Corporation maintains disclosure controls and procedures required by the 1934 Act and such controls and procedures are effective to ensure that all material information concerning the Corporation is made known, on a timely basis, to the individuals responsible for the preparation of the Corporation&#146;s filings with the SEC;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(q)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The Corporation is in material compliance with all applicable securities laws and is in full compliance with all provisions of the </font><i><font size=2>Sarbanes-Oxley Act of 2002</font></i><font size=2> and the rules of the SEC thereunder applicable to it on the date hereof;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(r)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>Marcum &amp; Kliegman LLP, which has expressed its opinion on the audited financial statements of the Corporation, has been &#147;independent&#148; with respect to the Corporation at all relevant times within the meaning of the rules and regulations of applicable United States accounting and regulatory bodies;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(s)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>Except for the Agent, there are no persons, firms or corporations acting or purporting to act at the request of the Corporation, who are entitled to any brokerage or finder&#146;s fee in connection with the Offering; </font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(t)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The Corporation has filed all necessary tax returns and notices and has paid all applicable taxes of whatever nature for all tax years to the date hereof to the extent such taxes have become due or have been alleged to be due and the Corporation is not aware of any tax deficiencies or interest or penalties accrued or accruing, or alleged to be accrued or accruing, thereon with respect to itself where, in any of the above cases it might reasonably be expected to result in any material adverse change in the condition, financial or otherwise, or in the earnings, business affairs or business prospects of the Corporation;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(u)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The operations carried on by the Corporation and its subsidiaries are in material compliance with all applicable federal, provincial, state and municipal environmental, health and safety statutes, regulations and permits. To the knowledge of the Corporation and its subsidiaries, none of such operations is subject to any judicial or administrative proceeding alleging the violation of any federal, provincial, state or municipal environmental, health </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>- 8 -</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p><PAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:1in;text-align:justify;'><font size=2>or safety statute or regulation or is subject to any investigation concerning whether any remedial action is needed to respond to a release of any Hazardous Material (as defined below) into the environment. Except in material compliance with applicable environmental laws, none of the premises currently occupied by the Corporation and its subsidiaries have at any time been used by the Corporation or any subsidiary or, to the knowledge of the Corporation and its subsidiaries, by any other occupier, as a waste storage or waste disposal site or to operate a waste management business. None of the Corporation or any of its subsidiaries has any material contingent liability of which it has knowledge in connection with any release of any Hazardous Material on or into the environment from any of the premises currently occupied by the Corporation or any subsidiary or from the operations carried out
thereon except to the extent such release is in compliance with all applicable laws or to the extent such non-compliance, if any, would not have a material adverse effect on the Corporation or any subsidiary. Neither the Corporation  or any subsidiary nor, to the knowledge of the Corporation or any subsidiary, any occupier of the premises currently occupied by the Corporation or any subsidiary, generates, transports, treats, stores or disposes of any waste, subject waste, hazardous waste, deleterious substance, industrial waste (as defined in applicable federal, provincial, state or municipal legislation) on any of the premises currently occupied by the Corporation or any subsidiary in contravention of applicable federal, provincial, state or municipal laws or regulations enacted for the protection of the natural environment or human health except to the extent that any such contravention would not have a material adverse effect on the Corporation or any subsidiary. To the knowledge
of the Corporation and its subsidiaries, no underground storage tanks or surface impoundments containing a petroleum product or Hazardous Material are located on any of the premises currently occupied by the Corporation or any subsidiary in contravention of applicable federal, provincial, state or municipal laws or regulations enacted for the protection of the natural environment or human health, except to the extent that any such contravention would not have a material adverse effect on the Corporation or any subsidiary. For the purposes of this subparagraph, &#147;</font><b><font size=2>Hazardous Material</font></b><font size=2>&#148; means any contaminant, pollutant, subject waste, hazardous waste, deleterious substance, industrial waste, toxic matter or any other substance that when released into the natural environment is likely to cause, at some immediate or future time, material harm or degradation to the natural environment or material risk to human health and, without
restricting the generality of the foregoing, includes any contaminant, pollutant, subject waste, deleterious substance, industrial waste, toxic matter or hazardous waste as defined by applicable federal, provincial, state or municipal laws or regulations enacted for the protection of the natural environment or human health;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(v)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The Corporation has not approved, is not contemplating, has not entered into any agreement in respect of, and has no knowledge of:</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>- 9 -</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p><PAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(i)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>the purchase of any material property or any interest therein or the sale, transfer or other disposition of any material property or any interest therein currently owned, directly or indirectly, by the Corporation whether by asset sale, transfer of shares, or otherwise;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(ii)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>the change of control (by sale or transfer of shares or sale of all or substantially all of the assets of the Corporation or otherwise) of the Corporation; or</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(iii)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>a proposed or planned disposition of shares by any shareholder who owns, directly or indirectly, 5% or more of the issued and outstanding shares of the Corporation;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(w)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>Since the inception of the Corporation, no order ceasing or suspending trading in securities of the Corporation or prohibiting the sale of securities by the Corporation has been issued by an exchange or securities regulatory authority, and no proceedings for this purpose have been instituted, or are pending or, to the Corporation&#146;s knowledge, contemplated or threatened;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(x)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>During the previous 12 months, the Corporation has not, directly or indirectly, declared or paid any dividend or declared or made any other distribution on any of its shares or securities of any class, or, directly or indirectly, redeemed, purchased or otherwise acquired any of its shares or securities or agreed to do any of the foregoing;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(y)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>There is not, in the constating documents of the Corporation or in any agreement, mortgage, note, debenture, indenture or other instrument or document to which the Corporation is a party, any restriction upon or impediment to, the declaration or payment of dividends by the directors of the Corporation or the payment of dividends by the Corporation to the holders of its common shares; </font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(z)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>None of the directors or officers of the Corporation or any associate or affiliate of any of the foregoing had, has or intends to have any material interest, direct or indirect, in the transactions contemplated by this Agreement or in any proposed material transaction with the Corporation which, as the case may be, materially affects, is material to or will or may reasonably be expected to materially affect the Corporation, except as previously disclosed to counsel to the Agent; and</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(aa)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The Corporation has not withheld, and will not withhold from the Agent any material facts or material changes (both as defined in the </font><i><font size=2>Securities Act</font></i><font size=2> (Ontario)) relating to the Corporation.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="323" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 4.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><b><font size=2>Section</font></b><font size=2>&nbsp;</font><b><font size=2>5</font></b></p> </td>
        <td width="227" valign=top style='padding:0in 0in 4.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><b><font size=2>Covenants of the Corporation.</font></b></p> </td> </tr></table>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The Corporation hereby covenants to the Agent and the Purchasers (and confirms, for greater certainty, that the Purchasers, in addition to the Agent, shall have the benefit of such </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>- 10 -</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p><PAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>covenants as if they had been made directly to the Purchasers under their respective Subscription Agreements), that:</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(a)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>the Corporation will fulfil all legal requirements to permit the offering, sale and issuance of the Subscription Receipts, the creation and issuance of the Warrants, the creation and issuance of the Broker Warrants, the creation and issuance of the Agent&#146;s Warrants, and the issuance of the Unit Shares and the Warrant Shares, including, without limitation, compliance with the applicable securities laws to enable the Subscription Receipts to be offered for sale and sold, without the necessity of filing a prospectus or an offering memorandum under the applicable securities laws of the Offering Provinces, to Purchasers through investment dealers or brokers registered under the applicable securities laws of the Offering Provinces who have complied with the relevant provisions of such laws;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(b)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>the Corporation agrees not to issue, or enter into any agreement to issue, any additional shares of common stock or financial instruments convertible or exchangeable into shares of common stock of the Corporation, for a period of 120 days from the Closing Date, without the consent of the Agent, such consent not to be unreasonably withheld, other than for (i) purposes of employee stock purchase plans or to satisfy existing instruments already issued, (ii) in connection with any offering of securities by the Corporation in which the Agent acts as the lead or co-lead agent or underwriter, or (iii) in connection with the proposed acquisition by the Corporation of Turbon AG, provided that the number of shares of common stock issued or issuable in connection with such acquisition does not exceed 10% of the number of shares of common
stock of the Corporation issued and outstanding as at the Closing Date;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(c)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>the Corporation covenants that it shall use its commercially reasonable efforts to satisfy the Qualification Conditions by the Qualification Date;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(d)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>the Corporation shall use its commercially reasonable efforts to file and cause the Registration Statement to be declared effective by no later than the Qualification Date, and thereafter shall cause the Registration Statement to remain effective and available for use by the holder until the later of two years from the closing date in respect of the Prospectus and a date which is 10 days after all of the Warrants have been exercised or have expired;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(e)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>in the event that the Qualification Conditions are not satisfied by the Qualification Date, the Corporation agrees to file a registration statement under the 1933 Act and applicable state securities laws and use its best efforts to cause the registration statement to become effective within 90 days of the Automatic Exercise date in order to register the resale of the Unit Shares and the Warrants (including those underlying the Agent&#146;s Warrants) and the issuance of the Warrant Shares upon exercise of the Warrants. The Corporation further agrees that it shall cause such registration statement to </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>- 11 -</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p><PAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:1in;text-align:justify;'><font size=2>remain effective and available for use by the holder until the later of November 9, 2007 and a date which is 10 days after all of the Warrants have been exercised or have expired;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(f)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>the Corporation shall use its best efforts to launch and complete a take-over bid for Turbon AG as soon as practicable; and</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(g)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>within the time periods required under the applicable securities laws of the Offering Provinces, the Corporation will file such documents as may be required under the applicable securities laws of the Offering Provinces relating to the private placement of the Subscription Agreements.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="267" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 4.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><b><font size=2>Section</font></b><font size=2>&nbsp;</font><b><font size=2>6</font></b></p> </td>
        <td width="171" valign=top style='padding:0in 0in 4.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><b><font size=2>Conditions of Closing.</font></b></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(1)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The obligations of the Agent and the Purchasers to complete the purchase of the Subscription Receipts shall be subject to the fulfilment at or before the Time of Closing of the following conditions:</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(a)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The Agent, in its sole discretion, shall be satisfied with the results of its due diligence review of the Corporation, including, financial, technical and legal due diligence;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(b)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The Corporation shall have obtained all requisite regulatory approvals required to be obtained by the Corporation in respect of the Offering;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(c)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The Corporation and the Agent shall have fully complied with all relevant statutory and regulatory requirements required to be complied with prior to the Time of Closing, including, without limitation, any approvals required pursuant to any United States stock exchange or bulletin board or under any United States securities regulatory requirements;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(d)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The Corporation shall have taken all necessary corporate action to authorize and approve the Documents, the issuance of the Securities and all other matters relating thereto;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(e)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The Corporation shall have closed debt financing/borrowings to raise funds in an amount no less than U.S.$ 3.4 million;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(f)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The Agent and the Purchasers shall have received at the Time of Closing a favourable legal opinion of counsel to the Corporation addressed to the Agent and each of the Purchasers, acceptable to counsel to the Agent in form and substance, acting reasonably, to the effect that:</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(i)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The Corporation is a corporation validly existing under the laws of the State of Delaware and is qualified to carry on business and own its assets under the laws of its jurisdiction of incorporation;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(ii)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The Corporation has all requisite corporate capacity and power to carry on its business as now conducted by it and to own its assets and </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>- 12 -</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p><PAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:1.5in;text-align:justify;'><font size=2>the Corporation has all requisite corporate capacity and power to execute and deliver the Documents and to perform all transactions contemplated by this Agreement;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(iii)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>As at the date hereof, the authorized capital of the Corporation consists of 100,000,000 shares of common stock, U.S.$0.001 par value, and 20,000,000 shares of preferred stock, U.S.$0.0001 par value, of which 11,330,000 of the shares of preferred stock have been designated as Series A Special Voting Stock. As at the close of business on November 2, 2005, 17,241,975 shares of common stock and 6,500,000 Series A preferred shares were issued and outstanding;  </font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(iv)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The execution and delivery of the Documents and the performance of the transactions contemplated thereby (including the issuance and/or sale of the Securities), do not and will not result in a breach of, and do not create a state of facts which, after notice or lapse of time or both, will result in a breach of, and do not and will not conflict with, any of the terms, conditions or provisions of the articles or by-laws of the Corporation;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(v)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>All necessary corporate action has been taken by the Corporation to authorize the execution and delivery of each of the Documents. Each of the Documents has been duly authorized and, other than the certificates representing the Warrants and the Agent&#146;s Warrants, executed and delivered by the Corporation and each of the documents constitutes, or in the case of the Warrants and Agent&#146;s Warrants, shall constitute upon execution and delivery, a legal, valid and binding obligation of the Corporation, enforceable in accordance with its terms (subject to the usual qualifications);</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(vi)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>All necessary corporate action has been taken by the Corporation to authorize the creation and issue of the Subscription Receipts, the Warrants, the Broker Warrants and the Agent&#146;s Warrants and the allotment and issue of the Unit Shares and the Warrant Shares;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(vii)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>Upon the exercise of the Subscription Receipts and the Agent&#146;s Warrants in accordance with their terms, the Unit Shares issuable on such exercise will be validly issued and outstanding as fully paid and non-assessable shares of common stock of the Corporation;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(viii)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>Upon the exercise of the Warrants in accordance with their terms, the Warrant Shares issuable on such exercise will be validly issued and outstanding as fully paid and non-assessable shares of common stock of  the Corporation;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(ix)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The issuance and sale of the Subscription Receipts by the Corporation have been effected in such a manner as to be exempt, either by statute </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>- 13 -</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p><PAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:1.5in;text-align:justify;'><font size=2>or regulation or order, from the prospectus and registration requirements of the Offering Provinces, and no documents are required to be filed, proceedings taken or approvals, permits, consents or authorizations of regulatory authorities obtained under applicable securities legislation of the Offering Provinces in connection therewith except as otherwise set out in such opinion;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(x)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The distribution of the Broker Warrants by the Corporation to the Agent has been effected in such a manner as to be exempt, either by statute or regulation or order, from the prospectus and registration requirements of the applicable jurisdictions, and no documents are required to be filed, proceedings taken or approvals, permits, consents or authorizations of regulatory authorities obtained under applicable securities legislation of the applicable jurisdictions in connection therewith except as otherwise set out in such opinion;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(xi)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The distribution by the Corporation of the Unit Shares and the Warrants on exercise of the Subscription Receipts and the distribution by the Corporation of the Warrant Shares on exercise of the Warrants will be exempt, either by statute or regulation or order, from the prospectus and registration requirements of the Offering Provinces, and no documents will be required to be filed, proceedings taken or approvals, permits, consents or authorizations of regulatory authorities obtained under applicable securities legislation of the Offering Provinces in connection therewith provided that no commission or other remuneration is paid or is given to others in respect of the distribution except for administrative or professional services or for services performed by a  registered dealer;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(xii)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The distribution by the Corporation of the Agent&#146;s Warrants on exercise of the Broker Warrants, the distribution of the Unit Shares and Warrants on exercise of the Agent&#146;s Warrants and the distribution of the Warrant Shares on exercise of the Warrants pursuant to their respective terms, will be exempt, either by statute or regulation or order, from the prospectus and registration requirements of the applicable jurisdictions, and no documents will be required to be filed, proceedings taken or approvals, permits, consents or authorizations of regulatory authorities obtained under applicable securities legislation of the applicable jurisdictions in connection therewith provided that no commission or other remuneration is paid or is given to others in respect of the distribution except for administrative or professional
services or for services performed by a  registered dealer;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(xiii)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The first trade of the Unit Shares, the Warrants and the Warrant Shares will be exempt, either by statute or regulation or order, from the prospectus and registration requirements of the Offering Provinces, and no documents will be required to be filed, proceedings taken or </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>- 14 -</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p><PAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:1.5in;text-align:justify;'><font size=2>approvals, permits, consents or authorizations of regulatory authorities obtained under the applicable securities legislation of the Offering Provinces in connection therewith where such first trade is made through persons registered in a category permitting them to trade such securities under the applicable securities legislation and who have complied with the relevant provisions of the applicable securities legislation of the Offering Provinces or in circumstances in which there is an exemption from the applicable registration requirements, provided that at the time of such first trade:</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(A)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>the Corporation is and has been a &#147;reporting issuer&#148; for at least four months immediately preceding the first trade in any Canadian province unless the Corporation became a reporting issuer after the distribution date of the Subscription Receipts by filing a prospectus in a province of Canada and is a reporting issuer in a province of Canada at the time of the trade;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(B)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>at least four months have elapsed from the distribution date of the Subscription Receipts;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(C)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>certificates representing the Subscription Receipts are endorsed with a legend stating the prescribed restricted period in accordance with section 2.5(2)(3) of National Instrument 45-102;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(D)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>such trade is not a &#147;control distribution&#148; as defined in National Instrument 45-102;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(E)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>no unusual effort is made to prepare the market or to create a demand for the securities that are the subject of the trade;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(F)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>no extraordinary commission or consideration is paid to a person or company in respect of such trade; and</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(G)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>if the selling security holder is an insider or officer of the Corporation, the selling security holder has no reasonable grounds to believe that the Corporation is in default of any applicable securities legislation;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(xiv)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The first trade of the Agent&#146;s Warrants, the Unit Shares and Warrants underlying the Agent&#146;s Warrants and the Warrant Shares underlying such Warrants will be exempt, either by statute or regulation or order, from the prospectus and registration requirements of the applicable jurisdictions, and no documents will be required to be filed, proceedings taken or approvals, permits, consents or authorizations of regulatory authorities obtained under the applicable securities legislation of the applicable jurisdictions in connection therewith where such first trade is made through persons registered in a category </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>- 15 -</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p><PAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:1.5in;text-align:justify;'><font size=2>permitting them to trade such securities under the applicable securities legislation and who have complied with the relevant provisions of the applicable securities legislation of the applicable jurisdictions or in circumstances in which there is an exemption from the applicable registration requirements, provided that at the time of such first trade:</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(A)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>the Corporation is and has been a &#147;reporting issuer&#148; for at least four months immediately preceding the first trade in any Canadian province unless the Corporation became a reporting issuer after the distribution date of the Broker Warrants by filing a prospectus in a province of Canada and is a reporting issuer in a province of Canada at the time of the trade;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(B)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>at least four months have elapsed from the distribution date of the Broker Warrants;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(C)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>certificates representing the Broker Warrants are endorsed with a legend stating the prescribed restricted period in accordance with section 2.5(2)(3) of National Instrument 45-102;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(D)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>such trade is not a &#147;control distribution&#148; as defined in National Instrument 45-102;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(E)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>no unusual effort is made to prepare the market or to create a demand for the securities that are the subject of the trade;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(F)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>no extraordinary commission or consideration is paid to a person or company in respect of such trade; and</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(G)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>if the selling security holder is an insider or officer of the Corporation, the selling security holder has no reasonable grounds to believe that the Corporation is in default of any applicable securities legislation;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(xv)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The form of certificates for the Subscription Receipts and Warrants have been approved by the directors of the Corporation; and</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(xvi)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>None of the issuance and sale of the Subscription Receipts, the issuance of the Unit Shares and Warrants on automatic exercise of the Subscription Receipts, the issuance of the Warrant Shares upon exercise of the Warrants, the issuance of the Broker Warrants, the issuance of the Agent&#146;s Warrants upon exercise of the Broker Warrants and the issuance of the Unit Shares and Warrants upon exercise of the Agent&#146;s Warrants, and the issuance of the Warrants Shares upon exercise of the Warrants underlying the Agent&#146;s Warrants, will be required to be registered under the 1933 Act;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>- 16 -</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p><PAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:1in;text-align:justify;'><font size=2>and in giving the opinions contemplated above, counsel to the Corporation shall be entitled, as to matters of fact, to rely upon the representations and warranties of Purchasers contained in the Subscription Agreements, a certificate of fact of the Corporation signed by officers of the Corporation in positions to have knowledge of such facts and their accuracy and certificates of such public officials and other persons as are necessary or desirable and may rely on local counsel (acceptable to the Agent&#146;s counsel, acting reasonably) with respect to matters governed by laws other than the federal laws of Canada and the laws of the Province of Ontario</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(g)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The Agent and each of the Purchasers shall have received a certificate of the Corporation, dated the Closing Date, signed by the Chief Executive Officer and the Chief Financial Officer of the Corporation or by such other officers or directors acceptable to the Agent, certifying, to the best of the knowledge, information and belief of such officers after due inquiry, on behalf of the Corporation and not in their personal capacities, as to certain matters reasonably requested by the Agent with respect to the Corporation, including certification that:</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(i)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The Corporation has complied with all covenants and satisfied all terms and conditions of this Agreement on its part to be complied with and satisfied up to the Time of Closing; and</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(ii)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>All of the representations and warranties contained in this Agreement are true and correct as of the Closing Date.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(h)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The Corporation has delivered to the Agent a certificate of Corporate Stock Transfer, Inc. as registrar and transfer agent of the shares of common stock of the Corporation, which certifies the number of shares of common stock issued and outstanding as of November 2, 2005.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(2)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The purchase and sale of the Subscription Receipts shall be completed at the offices of Goodmans LLP at 1 p.m. (Toronto time) on the Closing Date.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(3)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>At the Time of Closing, the Corporation shall deliver to the Agent on its behalf and on behalf of the Purchasers:</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(a)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The requisite legal opinions and certificate as contemplated in section 6 hereof; and</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(b)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>Such further documentation as may be contemplated herein or as counsel to the Agent or the applicable regulatory authorities may reasonably require;</font></p> </td> </tr></table>


<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>Certificates representing the Subscription Receipts purchased by the Purchasers will be delivered by the Corporation as directed by the Agent, on behalf of the Purchasers, subject to delivery by the Agent to the Corporation of duly executed Subscription Agreements for acceptance by the Corporation. The Agent&#146;s Commission shall be deducted from the aggregate amount of the proceeds of the Offering.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>- 17 -</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p><PAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="184" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 4.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><b><font size=2>Section</font></b><font size=2>&nbsp;</font><b><font size=2>7</font></b></p> </td>
        <td width="88" valign=top style='padding:0in 0in 4.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><b><font size=2>Expenses.</font></b></p> </td> </tr></table>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.57in;text-align:justify;'><font size=2>The Corporation shall pay all costs and expenses incurred in connection with the Offering, including, without limitation, the fees and expenses of the Agent, all expenses of or incidental to the creation, issuance, sale or distribution of the Subscription Receipts, the fees and expenses of the transfer agent, subscription receipt agent and warrant agent, and all applicable filing fees. The Corporation shall also pay the reasonable fees, disbursements and taxes thereon, including GST, of legal counsel retained by the Agent. All fees and expenses of the Agent shall be payable by the Corporation upon the closing of the Offering and shall be payable by the Corporation whether or not the Offering is completed.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="203" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 4.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><b><font size=2>Section</font></b><font size=2>&nbsp;</font><b><font size=2>8</font></b></p> </td>
        <td width="107" valign=top style='padding:0in 0in 4.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><b><font size=2>Indemnities.</font></b></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(1)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>In connection with the Offering, the Corporation agrees to indemnify and hold harmless the Agent, and its subsidiaries and affiliates and their respective directors, officers, employees, partners, agents, and each other person, if any, controlling the Agent or any of its subsidiaries or affiliates, and each shareholder of the Agent (collectively, the &#147;</font><b><font size=2>Indemnified Parties</font></b><font size=2>&#148; and individually, an &#147;</font><b><font size=2>Indemnified Party</font></b><font size=2>&#148;), from and against any and all losses, expenses, claims (including shareholder actions, derivative or otherwise), actions, damages and liabilities (other than loss of profits or consequential damages), joint or several, including the aggregate amount paid in reasonable settlement of any actions, suits,
proceedings, investigations or claims and the reasonable fees and expenses of their counsel that may be incurred in advising with respect to and/or defending any action, suit, proceedings, investigation or claim that may be made or threatened against any Indemnified Party or in enforcing this indemnity (collectively the &#147;</font><b><font size=2>Claims</font></b><font size=2>&#148;) to which any Indemnified Party may become subject in connection with the performance of professional services in connection with the Offering. The Corporation also agrees that no Indemnified Party shall have any liability (whether direct or indirect, in contract or tort or otherwise) to the Corporation or any person asserting claims on behalf of or in right of the Corporation for or in connection with the Offering except to the extent any losses, expenses, claims, actions, damages or liabilities incurred by the Corporation are determined by a court of competent jurisdiction in a final judgment that has
become non-appealable to have resulted primarily from the negligence, wilful misconduct or fraud of such Indemnified Party. The Corporation will not, without the Agent&#146;s prior written consent, settle, compromise, consent to the entry of any judgment in or otherwise seek to terminate any action, suit, proceeding, investigation or claim in respect of which indemnification may be sought hereunder (whether or not any Indemnified Party is a party thereto) unless such settlement, compromise, consent or termination includes a release of each Indemnified Party from any liabilities arising out of such action, suit, proceeding, investigation or claim.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(2)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>Promptly after receiving notice of an action, suit, proceeding or claim against the Agent or any other Indemnified Party or receipt of notice of the commencement of any investigation which is based, directly or indirectly, upon any matter in respect of which indemnification may be sought from the Corporation, the Agent or any such other Indemnified Party will notify the Corporation in writing of the particulars thereof, provided that the omission so to notify the Corporation shall not relieve the </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>- 18 -</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p><PAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>Corporation of any liability which the Corporation may have to the Agent or any other Indemnified Party except and only to the extent that any such delay in or failure to give notice as herein required prejudices the defence of such actions, suit, proceeding, claim or investigation or results in any material increase in the liability which the Corporation has under this indemnity.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(3)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The Corporation hereby confirms that an Indemnified Party is not required to proceed against or enforce any other right, power, remedy or security or claim payment from or against any other person before making a Claim hereunder.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(4)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>To the extent that any Indemnified Party is not a party to this Agreement the Agent shall obtain and hold the right and benefit of this section in trust for and on behalf of such Indemnified Party.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(5)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The Corporation hereby consents to personal jurisdiction and service and venue in any court in which any claim which is subject to indemnification hereunder is brought against the Agent or any Indemnified Party and to the assignment of the benefit of this section to any Indemnified Party for the purpose of enforcement provided that nothing herein shall limit the Corporation&#146;s right or ability to contest the appropriate jurisdiction or forum for the determination of any such claims.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(6)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The foregoing indemnity and the reimbursement obligation provided for in paragraph 8(11) shall not apply to the extent that a court of competent jurisdiction or a final judgment that has become non-appealable shall determine that such losses, expenses, claims, actions, damages or liabilities to which the Indemnified Party may be subject were primarily caused by the negligence, wilful misconduct or fraud of the Indemnified Party.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(7)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>If the foregoing indemnification is for any reason held to be unavailable to or otherwise insufficient to hold harmless an Indemnified Party in respect of any losses, claims, damages, liabilities or expenses referred to therein, then the Corporation shall contribute to the aggregate amount paid or payable by such Indemnified Party, as incurred, as a result of any losses, claims, damages, liabilities or expenses referred to therein (i) in such proportion as is appropriate to reflect the relative benefits received by the Corporation, on the one hand, and the Agent, on the other hand, from the Offering, or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault
of the Corporation, on the one hand, and the Agent, on the other hand, in connection with the statements or omissions or inaccuracies in the representations and warranties herein which resulted in such losses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations. </font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(8)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The relative benefits received by the Corporation, on the one hand, and the Agent, on the other hand, in connection with the Offering shall be deemed to be in the same respective proportions as the total net proceeds from the Offering (before deducting expenses) received by the Corporation and the Agent&#146;s Commission, bear to the </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>- 19 -</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p><PAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>aggregate public offering price of the Subscription Receipts sold pursuant to the Offering.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(9)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The relative fault of the Corporation, on the one hand, and the Agent, on the other hand, shall be determined by reference to, among other things, whether any such untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact or any such inaccurate or alleged inaccurate representation or warranty relates to information supplied by the Corporation, on the one hand, or the Agent, on the other hand, and the parties&#146; relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(10)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>Notwithstanding the foregoing, the Agent shall not be required to contribute any amount in excess of the Agent&#146;s Commission. No person guilty of fraudulent misrepresentation shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. </font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(11)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The Corporation also agrees to reimburse the Agent for the time spent by its personnel in connection with any Claim at their normal </font><i><font size=2>per diem </font></i><font size=2>rates. An Indemnified Party may retain counsel to separately represent it in the defence of a Claim, which shall be at the Corporation&#146;s expense if (i) the Corporation does not promptly assume the defence of the Claim, (ii) the Corporation agrees to separate representation or (iii) the Indemnified Party is advised by counsel that there is an actual or potential conflict in the Corporation&#146;s and the Indemnified Party&#146;s respective interests or additional defences are available to the Indemnified Party, which makes representation by the same counsel inappropriate.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(12)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The Corporation agrees that in case any legal proceeding shall be brought against the Corporation and/or the Agent by any governmental commission or regulatory authority or any stock exchange or other entity having regulatory authority, either domestic or foreign, shall investigate the Corporation and/or the Agent and any Indemnified Party shall be required to testify in connection therewith or shall be required to respond to procedures designed to discover information regarding, in connection with, or by reason of the performance of professional services rendered to the Corporation by the Agent, the Agent shall have the right, provided that such legal proceeding is not primarily the result of the Agent&#146;s negligence or wilful misconduct and is not otherwise a result of a more general investigation of the Agent, to employ
its own counsel in connection therewith, and the reasonable fees and expenses of such counsel as well as the reasonable costs (including an amount to reimburse the Agent for time spent by the personnel of the Agent in connection therewith) and out-of-pocket expenses incurred by the Agent&#146;s personnel in connection therewith shall be paid by the Corporation as they occur.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(13)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The obligations of the Corporation hereunder are in addition to any liabilities which the Corporation may otherwise have to the Agent or any other Indemnified Party. </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>- 20 -</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p><PAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="255" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 4.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><b><font size=2>Section</font></b><font size=2>&nbsp;</font><b><font size=2>9</font></b></p> </td>
        <td width="159" valign=top style='padding:0in 0in 4.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><b><font size=2>Termination Rights.</font></b></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(1)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The Agent shall be entitled, at its option, to terminate all of its obligations under this Agreement, and the obligations of any person from whom the Agent has solicited an order to purchase Subscription Receipts that has executed a Subscription Agreement, by notice to that effect delivered to the Corporation prior to the Time of Closing if:</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(a)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>the Agent is not satisfied in its sole discretion with its due diligence review and investigations in respect of the Corporation;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(b)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>there should occur any change, event, fact or circumstance (actual, contemplated or threatened) in respect of the business, affairs, operations, assets, liabilities (contingent or otherwise) or financial condition of the Corporation (including any subsidiary) or any development  that could result in such a change, event, fact or circumstance, or the Agent has become aware, as a result of its due diligence review or otherwise, of any adverse material information, fact or change (determined solely by the Agent) with respect to the Corporation which had not been publicly disclosed or disclosed in writing to the Agent prior to the date hereof, any of which, in the opinion of the Agent, as determined by the Agent in its sole discretion, could reasonably be expected to have a material adverse effect on the market price or value or
the marketability of the securities of the Corporation, including the Subscription Receipts; </font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(c)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>if any inquiry, action, suit, investigation or other proceeding, whether formal or informal, is commenced, threatened or publicly announced or any order is made under or pursuant to any statute or by any federal, provincial or other governmental authority, commission, board, bureau, agency or instrumentality (including, without limitation, any securities regulatory authority) in relation to the Corporation or the Corporation&#146;s directors or officers, which, in the sole opinion of the Agent operates to prevent or restrict materially the distribution or trading of the securities of the Corporation, or materially and adversely affects or would be reasonably expected to materially and adversely affect the market price or value of the securities of the Corporation;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(d)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>if any law or regulation is promulgated or changed that, in the sole opinion of the Agent, operates to prevent or restrict materially the distribution or trading of the securities of the Corporation;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(e)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>if there should develop, occur or come into effect or existence any event, action, state, condition or occurrence of national or international consequence, any acts of hostilities or escalation thereof, or other calamities or crises, or any action, governmental law or regulation, inquiry or other occurrence, whether in any financial market or otherwise, of any nature whatsoever, which, in the sole opinion of the Agent materially adversely affects or involves or may materially </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>- 21 -</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p><PAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:1.5in;text-align:justify;'><font size=2>adversely affect or involve the financial markets in Canada, the United States or elsewhere, the business or affairs of the Corporation or any subsidiary, or the market price or value or marketability of the Corporation&#146;s securities; </font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(f)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>the state of the financial markets or of the industry or markets in which the Corporation operates is or becomes such that the Securities cannot, in the sole opinion of the Agent, be successfully or profitably marketed;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(g)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>any order to cease trading the securities of the Corporation is made or threatened by a securities regulatory authority;  or</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(h)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>the Agent determines that any of the representations or warranties made by the Corporation in this Agreement is false or has become false, in either case in any material respect.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(2)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>All terms and conditions of this Agreement shall be construed as conditions, and any breach or failure by the Corporation to comply with any of such terms and conditions shall entitle the Agent to terminate its obligations under this Agreement by notice to that effect given to the Corporation at or prior to the Time of Closing. The Agent may waive, in whole or in part, or extend the time for compliance with, any of such terms and conditions without prejudice to its rights in respect of any other of such terms and conditions or any other or subsequent breach or non-compliance; provided, however, that to be binding on the Agent any such waiver or extension must be in writing and signed by the Agent.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(3)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>If the Agent terminates this Agreement pursuant to this section, there shall be no further liability on the part of the Agent or of the Corporation to the Agent except in respect of any liability that may have arisen or may thereafter arise under sections 7 and 8 hereof.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>(4)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The right of the Agent to terminate its obligations under this Agreement is in addition to such other remedies as its has or may have in respect of any default, act or failure to act of the Corporation in respect of any of the matters contemplated by this Agreement.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="553" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 4.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><b><font size=2>Section</font></b><font size=2>&nbsp;</font><b><font size=2>10</font></b></p> </td>
        <td width="457" valign=top style='padding:0in 0in 4.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><b><font size=2>Right to Act as Lead Member of Investment Banking Syndicate.</font></b></p> </td> </tr></table>

<p style=' margin-bottom:12pt; margin-top:6pt; text-indent:0.57in;text-align:justify;'><font size=2>The Corporation agrees that, upon successful completion of the Offering, the Agent shall be entitled to act, at a minimum, as a co-lead member of an investment banking syndicate that will market and sell for the Corporation any brokered equity financing in Canada for a period of one year from the Closing Date, including in respect of any brokered equity financing that commences but does not close, prior to the completion of the Offering, and a minimum participation of 15% of any brokered equity financing in the United States for a period of one year from the Closing Date. The Agent shall use its best efforts to arrange for purchasers of the equity securities offered pursuant to any such brokered equity financing </font></p>

<p style=' margin-bottom:0pt; margin-top:6pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>- 22 -</font></p>

<p style=' margin-bottom:0pt; margin-top:6pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p><PAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:6pt;text-align:justify;'><font size=2>during such one-year period. All members of any investment banking syndicate will be subject to approval by the Corporation. </font></p>


<table border="0" cellspacing=0 cellpadding=0 width="265" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 4.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><b><font size=2>Section</font></b><font size=2>&nbsp;</font><b><font size=2>11</font></b></p> </td>
        <td width="169" valign=top style='padding:0in 0in 4.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><b><font size=2>Breach of Agreement.</font></b></p> </td> </tr></table>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Any breach of, or failure by the Corporation to comply with, any term or condition of this Agreement shall entitle the Agent, on behalf of the Purchasers, to terminate its obligations to purchase the Subscription Receipts, by notice to that effect given to the Corporation prior to the Time of Closing, and there shall be no further liability on the part of the Corporation or the Agent except in respect of any liability which may have arisen or may thereafter arise under sections 7 and 8 hereof. The Agent may waive, in whole or in part, or extend the time for compliance with, any terms and conditions without prejudice to its rights in respect of any other terms and conditions or any other or subsequent breach or non-compliance provided, however, that any waiver or extension must be in writing and signed by the Agent in order to be binding upon it.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="221" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 4.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><b><font size=2>Section</font></b><font size=2>&nbsp;</font><b><font size=2>12</font></b></p> </td>
        <td width="125" valign=top style='padding:0in 0in 4.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><b><font size=2>Confidentiality.</font></b></p> </td> </tr></table>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The Agent agrees that any confidential information concerning the business and affairs of the Corporation will be treated and held in confidence by the Agent and its directors, officers, employees, advisors and agents and will not be disclosed or used other than in connection with the performance by the Agent of its duties hereunder without the Corporation&#146;s prior written consent except as required by law (including applicable securities laws) or legal process or by any competent administrative authority and, in such event, only after prior consultation with the Corporation. The Agent&#146;s obligations under this section will terminate on the first anniversary of the Closing Date.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="171" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 4.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><b><font size=2>Section</font></b><font size=2>&nbsp;</font><b><font size=2>13</font></b></p> </td>
        <td width="75" valign=top style='padding:0in 0in 4.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><b><font size=2>Notices.</font></b></p> </td> </tr></table>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Any notice under this Agreement shall be given in writing and either delivered, faxed or mailed by prepaid registered post to the party to receive such notice at the address or facsimile numbers indicated below:</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="454" style='margin-left:.9pt;border-collapse:collapse'>
    <tr style='page-break-inside:avoid'>
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:1.0in;text-indent:-36pt;text-align:left;margin-top:9.0pt;margin-bottom:3.0pt'><font size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to the Corporation at:</font></p>  </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:71.1pt;text-indent:0pt;text-align:left;margin-top:9.0pt;margin-bottom:3.0pt'><font size=2>2101 Nobel Street</font><br> <font size=2>Sainte-Julie, Quebec</font><br> <font SIZE=2>J3E 1Z8</font></p> </td> </tr>
    <tr >
        <td width="222" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:71.1pt;text-indent:0pt;text-align:left;margin-top:9.0pt;margin-bottom:3.0pt'><font size=2>Attention:</font></p> </td>
        <td width="232" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:9.0pt;margin-bottom:3.0pt'><font size=2>William Smith</font></p> </td> </tr>
    <tr >
        <td width="222" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:71.1pt;text-indent:0pt;text-align:left;margin-top:9.0pt;margin-bottom:0in'><font size=2>Facsimile:</font></p> </td>
        <td width="232" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:9.0pt;margin-bottom:0in'><font size=2>(450) 922-6166</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-top:12.0pt;margin-right:0in;margin-bottom:5.0pt;margin-left: 1.0in;line-height:10.5pt'><font size=2>with a copy to:</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>- 23 -</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p><PAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="454" style='margin-left:.9pt;border-collapse:collapse'>
    <tr style='page-break-inside:avoid'>
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:71.1pt;text-indent:0pt;text-align:left;margin-top:9.0pt;margin-bottom:3.0pt'><font size=2>Goodmans LLP</font><br> <font size=2>250 Yonge Street, Suite 2400</font><br> <font size=2>Toronto, Ontario</font><br> <font SIZE=2>M5B 2M6</font></p> </td> </tr>
    <tr >
        <td width="222" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:71.1pt;text-indent:0pt;text-align:left;margin-top:9.0pt;margin-bottom:3.0pt'><font size=2>Attention:</font></p> </td>
        <td width="232" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:9.0pt;margin-bottom:3.0pt'><font size=2>Neil Sheehy</font></p> </td> </tr>
    <tr >
        <td width="222" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:71.1pt;text-indent:0pt;text-align:left;margin-top:9.0pt;margin-bottom:0in'><font size=2>Facsimile:</font></p> </td>
        <td width="232" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:9.0pt;margin-bottom:0in'><font size=2>(416) 979-1234</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:72pt;text-indent:-36pt;text-align:left;margin-top:9.0pt;margin-bottom:12pt'><font size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to the Agent or any Indemnified Party at:</font></p>  </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:71.3pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:6.0pt'><font size=2>Loewen, Ondaatje, McCutcheon Limited </font><br> <font size=2>Hazelton Lanes, East Tower</font><br> <font size=2>55 Avenue Road Suite 2250</font><br> <font size=2>Toronto, Ontario M5R 3L2</font></p> </td> </tr>
    <tr >
        <td width="222" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:71.1pt;text-indent:0pt;text-align:left;margin-top:9.0pt;margin-bottom:3.0pt'><font size=2>Attention:</font></p> </td>
        <td width="232" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:9.0pt;margin-bottom:3.0pt'><font size=2>David Donato</font></p> </td> </tr>
    <tr >
        <td width="222" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:71.1pt;text-indent:0pt;text-align:left;margin-top:9.0pt;margin-bottom:0in'><font size=2>Facsimile:</font></p> </td>
        <td width="232" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:9.0pt;margin-bottom:0in'><font size=2>(416) 964-4493</font></p> </td> </tr>
    <tr >
        <td width="222" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:71.1pt;text-indent:0pt;text-align:justify;margin-top:9.0pt;margin-bottom: 0in'><font size=1>&nbsp;</font></p> </td>
        <td width="232" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:justify;margin-top:9.0pt;margin-bottom: 0in'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:71.3pt;text-indent:0in;text-align:left;margin-top:.25in;margin-bottom:3.0pt'><font size=2>with a copy to:</font></p>  </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:71.1pt;text-indent:0pt;text-align:left;margin-top:9.0pt;margin-bottom:3.0pt'><font size=2>Fasken Martineau DuMoulin LLP</font><br> <font size=2>66 Wellington Street West</font><br> <font size=2>Suite 4200, Toronto-Dominion Bank Tower</font><br> <font size=2>Box 20, Toronto-Dominion Centre</font><br> <font size=2>Toronto, Ontario M5K 1N6</font></p> </td> </tr>
    <tr >
        <td width="222" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:71.1pt;text-indent:0pt;text-align:left;margin-top:9.0pt;margin-bottom:3.0pt'><font size=2>Attention:</font></p> </td>
        <td width="232" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:9.0pt;margin-bottom:3.0pt'><font size=2>Robert K. Mason</font></p> </td> </tr>
    <tr >
        <td width="222" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:71.1pt;text-indent:0pt;text-align:left;margin-top:9.0pt;margin-bottom:0in'><font size=2>Facsimile:</font></p> </td>
        <td width="232" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:9.0pt;margin-bottom:0in'><font size=2>(416) 364-7813</font></p> </td> </tr></table>

<p style=' margin-bottom:12pt; margin-top:12pt;text-align:justify;'><font size=2>or such other address or facsimile number as such party may hereafter designate by notice in writing to the other party. If a notice is delivered, it shall be effective from the date of delivery; if such notice is faxed (with receipt confirmed), it shall be effective on the Business Day following the date such notice is faxed; if such notice is sent by mail, it shall be effective four Business Days following the date of mailing, excluding all days when normal mail service is interrupted.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="177" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 4.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><b><font size=2>Section</font></b><font size=2>&nbsp;</font><b><font size=2>14</font></b></p> </td>
        <td width="81" valign=top style='padding:0in 0in 4.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><b><font size=2>Survival.</font></b></p> </td> </tr></table>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>All representations, warranties, and agreements of the Corporation contained herein or contained in any document submitted pursuant to this Agreement or in connection with the purchase of the Subscription Receipts shall survive the purchase of such securities for a period of [three years] from the Time of Closing by the Purchasers and shall continue in full </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>- 24 -</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p><PAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>force and effect unaffected by any subsequent disposition or conversion of any of such securities.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="243" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 4.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><b><font size=2>Section</font></b><font size=2>&nbsp;</font><b><font size=2>15</font></b></p> </td>
        <td width="147" valign=top style='padding:0in 0in 4.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><b><font size=2>Entire Agreement.</font></b></p> </td> </tr></table>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The provisions herein contained constitute the entire agreement between the parties hereto and supersede all previous communications, representations, understandings and agreements between the parties with respect to the subject matter hereof whether verbal or written other than the engagement letter dated June 1, 2005 between the Corporation and the Agent (the &#147;</font><b><font size=2>Engagement Letter</font></b><font size=2>&#148;).  </font></p>


<table border="0" cellspacing=0 cellpadding=0 width="212" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 4.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><b><font size=2>Section</font></b><font size=2>&nbsp;</font><b><font size=2>16</font></b></p> </td>
        <td width="116" valign=top style='padding:0in 0in 4.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><b><font size=2>Counterparts.</font></b></p> </td> </tr></table>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>This Agreement may be executed in any number of counterparts and may be executed by facsimile, all of which when taken together shall be deemed to be one and the same document and not withstanding the actual date of execution of each counterpart, this Agreement shall be deemed to be dated as of the date first above written.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="219" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 4.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><b><font size=2>Section</font></b><font size=2>&nbsp;</font><b><font size=2>17</font></b></p> </td>
        <td width="123" valign=top style='padding:0in 0in 4.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><b><font size=2>Press Releases.</font></b></p> </td> </tr></table>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Subject to the Corporation&#146;s timely and continuous disclosure obligations, and as may be required by law, any press release of the Corporation relating to the Offering must be provided to and approved by the Agent, acting reasonably and promptly, prior to its release.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="173" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 4.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><b><font size=2>Section</font></b><font size=2>&nbsp;</font><b><font size=2>18</font></b></p> </td>
        <td width="77" valign=top style='padding:0in 0in 4.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><b><font size=2>General.</font></b></p> </td> </tr></table>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>This Agreement shall be governed by and interpreted in accordance with the laws of Ontario and the laws of Canada applicable therein and time shall be of the essence hereof.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="201" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 4.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><b><font size=2>Section</font></b><font size=2>&nbsp;</font><b><font size=2>19</font></b></p> </td>
        <td width="105" valign=top style='padding:0in 0in 4.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><b><font size=2>Severability.</font></b></p> </td> </tr></table>

<p style=' margin-bottom:6pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>If any provision of this Agreement, or the application of such provision to any person or circumstance, shall be held invalid or unenforceable, the remainder of this Agreement, or the application of such provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>- 25 -</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p><PAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:6pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'>
<font size=2>If the above is in accordance with your understanding, please sign and return to the Agent a copy of this letter, whereupon this letter and your acceptance shall constitute a binding agreement between the Corporation and the Agent.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:2.5in;text-align:left;'><B><font SIZE=2>LOEWEN, ONDAATJE, MCCUTCHEON LIMITED</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:2.5in;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="467" style='border-collapse:collapse'>
    <tr >
        <td width="240" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="32" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0in'><font size=2>By:</font></p> </td>
        <td width="139" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0in'><u><font size=2>/s/ Garrett Herman</font></u></p> </td>
        <td  width="56">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0in'><font size=2>Authorized Signing Officer</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:2.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:2.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The above offer is hereby accepted and agreed to as of the date first above written.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:2.5in;text-align:left;'><B><font SIZE=2>ADSERO CORP.</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:2.5in;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="464" style='border-collapse:collapse'>
    <tr >
        <td width="240" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="29" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0in'><font size=2>By:</font></p> </td>
        <td width="131" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0in'><u><font size=2>/s/ Yvon L&#233;veill&#233;</font></u></p> </td>
        <td  width="64">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0in'><font size=2>Authorized Signing Officer</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>- 26 -</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p><PAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>SCHEDULE 3</font></B></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>UNITED STATES COMPLIANCE</font></B></p>

<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:0.25in;text-align:justify;'><i><font size=2>This is Schedule 3 to the Agency Agreement (the &#147;</font><b><font size=2>Agency Agreement</font></b><font size=2>&#148;) between Adsero Corp. (the &#147;Corporation&#148;) and Loewen, Ondaatje, McCutcheon Limited (the &#147;Agent&#148;) dated November 9, 2005. All capitalized terms that are used in this Schedule and not otherwise defined shall have the meaning ascribed thereto in the Agency Agreement.</font></i></p>

<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:0.25in;text-align:justify;'><font size=2>For the purpose of this Schedule 3, the following terms shall have the meanings indicated:</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="576" style='margin-left:5.4pt;border-collapse:collapse'>
    <tr >
        <td width="160" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6pt'><b><font size=2>affiliate</font></b></p> </td>
        <td width="416" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.6pt;text-indent:0pt;text-align: left;margin-top:0pt;margin-bottom:6pt'><font size=2>means an &#147;affiliate&#148; as that term is defined in Rule 405 under the U.S. Securities Act;</font></p> </td> </tr>
    <tr >
        <td width="160" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6pt'><b><font size=2>Agent&#146;s Securities</font></b></p> </td>
        <td width="416" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.6pt;text-indent:0pt;text-align: left;margin-top:0pt;margin-bottom:6pt'><font size=2>means Brokers Warrants, the Agent&#146;s Warrants, the Common Shares and Warrants issuable upon exercise of the Agent&#146;s Warrants and the Common Shares issuable upon exercise of the Warrants issued upon exercise of the Agent&#146;s Warrants;</font></p> </td> </tr>
    <tr >
        <td width="160" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6pt'><b><font size=2>Directed Selling Efforts</font></b></p> </td>
        <td width="416" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.6pt;text-indent:0pt;text-align: left;margin-top:0pt;margin-bottom:6pt'><font size=2>means &#147;directed selling efforts&#148; as that term is defined in Regulation S. Without limiting the foregoing, but for greater clarity in this Schedule 3, it means, subject to the exclusions from the definition of &#147;directed selling efforts&#148; contained in Regulation S, any activity undertaken for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United States for the Securities, and includes the placement of any advertisement in a publication with a general circulation in the United States that refers to the offering of any of the Securities;</font></p> </td> </tr>
    <tr >
        <td width="160" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6pt'><b><font size=2>Distribution Compliance Period</font></b></p> </td>
        <td width="416" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.6pt;text-indent:0pt;text-align: left;margin-top:0pt;margin-bottom:6pt'><font size=2>means a one year period that begins on the Closing Date, except that all offers and sales by the Agent, a dealer, or other person that participates in the distribution of the Offered Securities pursuant to a contractual arrangement, of an unsold allotment or subscription of Offered Securities (including any Subscription Receipts purchased by the Agent pursuant to the Agency Agreement or any Offered Securities issued upon conversion or exercise thereof) shall be deemed to be made during the Distribution Compliance Period;</font></p> </td> </tr>
    <tr >
        <td width="160" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6pt'><b><font size=2>Domestic Issuer</font></b></p> </td>
        <td width="416" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.6pt;text-indent:0pt;text-align: left;margin-top:0pt;margin-bottom:6pt'><font size=2>means a &#147;domestic issuer&#148; as that term is defined in Regulation S;</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p><PAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="576" style='margin-left:5.4pt;border-collapse:collapse'>
    <tr >
        <td width="160" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6pt'><b><font size=2>General Solicitation or General Advertising</font></b></p> </td>
        <td width="416" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.6pt;text-indent:0pt;text-align: left;margin-top:0pt;margin-bottom:6pt'><font size=2>means &#147;general solicitation or general advertising&#148;, as used under Rule 502(c) under the U.S. Securities Act, including without limitation any advertisements, articles, notices or other communications published in any newspaper, magazine or similar media or broadcast over radio or television, or any seminar or meeting whose attendees had been invited by general solicitation or general advertising;</font></p> </td> </tr>
    <tr >
        <td width="160" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6pt'><b><font size=2>Offering Material</font></b></p> </td>
        <td width="416" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.6pt;text-indent:0pt;text-align: left;margin-top:0pt;margin-bottom:6pt'><font size=2>means the disclosure and subscription documents (including any term sheet, copies of news releases issued by the Corporation and the Public Record and any amendments or supplements thereto) prepared and provided by the Corporation to the Agent;</font></p> </td> </tr>
    <tr >
        <td width="160" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6pt'><b><font size=2>Offered Securities</font></b></p> </td>
        <td width="416" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.6pt;text-indent:0pt;text-align: left;margin-top:0pt;margin-bottom:6pt'><font size=2>means the Subscription Receipts, the Units, the Unit Shares and the Warrants issuable upon exercise of the Subscription Receipts, and the Warrant Shares issuable upon exercise of said Warrants;</font></p> </td> </tr>
    <tr >
        <td width="160" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6pt'><b><font size=2>Registration Statement</font></b></p> </td>
        <td width="416" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.6pt;text-indent:0pt;text-align: left;margin-top:0pt;margin-bottom:6pt'><font size=2>means a registration statement under the 1933 Act and applicable state securities laws filed pursuant to Rule 415 under the 1933 Act registering the resale of the Unit Shares and the Warrants (including those that are issued pursuant to exercise of the Agent&#146;s Warrants) and the Warrant Shares (including those issuable upon exercise of the Warrants issued upon exercise of the Agent&#146;s Warrants;</font></p> </td> </tr>
    <tr >
        <td width="160" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6pt'><b><font size=2>Regulation S</font></b></p> </td>
        <td width="416" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.6pt;text-indent:0pt;text-align: left;margin-top:0pt;margin-bottom:6pt'><font size=2>means Regulation S under the 1933 Act;</font></p> </td> </tr>
    <tr >
        <td width="160" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6pt'><B><font SIZE=2>SEC</font></B></p> </td>
        <td width="416" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.6pt;text-indent:0pt;text-align: left;margin-top:0pt;margin-bottom:6pt'><font size=2>means the United States Securities and Exchange Commission;</font></p> </td> </tr>
    <tr >
        <td width="160" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6pt'><b><font size=2>Securities</font></b></p> </td>
        <td width="416" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.6pt;text-indent:0pt;text-align: left;margin-top:0pt;margin-bottom:6pt'><font size=2>means the Offered Securities and the Agent&#146;s Securities, collectively;</font></p> </td> </tr>
    <tr >
        <td width="160" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6pt'><b><font size=2>United States</font></b></p> </td>
        <td width="416" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.6pt;text-indent:0pt;text-align: left;margin-top:0pt;margin-bottom:6pt'><font size=2>means the United States of America, its territories and possessions, any state of the United States, and the District of Columbia;</font></p> </td> </tr>
    <tr >
        <td width="160" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6pt'><b><font size=2>1933 Act</font></b></p> </td>
        <td width="416" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.6pt;text-indent:0pt;text-align: left;margin-top:0pt;margin-bottom:6pt'><font size=2>means the United States Securities Act of 1933, as amended;</font></p> </td> </tr>
    <tr >
        <td width="160" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:6pt'><b><font size=2>1934 Act</font></b></p> </td>
        <td width="416" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.6pt;text-indent:0pt;text-align: left;margin-top:0pt;margin-bottom:6pt'><font size=2>means the United States Securities Exchange Act of 1934, as amended.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:18pt; margin-left:0.25in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'>
</p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>-2-</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p><PAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:18pt; margin-left:0.25in;text-align:justify;'><u><font size=2>A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Representations, Warranties and Covenants of the Agent</font></u></p>

<p style=' margin-bottom:6pt; margin-top:0pt; margin-left:0.25in;text-align:justify;'><font size=2>The Agent and the Corporation acknowledge that the Securities have not been registered under the U.S. Securities Act or the securities laws of any state and may not be offered or sold except in compliance with Rule&nbsp;903 of Regulation S or pursuant to an effective registration statement under the 1933 Act and applicable state securities laws, or in compliance with an exemption from the registration requirements of the U.S. Securities Act and any applicable state securities laws. Accordingly, the Agent represents, warrants and covenants to the Corporation that:</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>1.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>Neither the Agent, its affiliates nor any persons acting on its or their behalf, has engaged or will engage in: (i) any offer to sell or any solicitation of an offer to buy, any Offered Securities (including any Subscription Receipts purchased by it pursuant to the Agency Agreement or any Securities issued upon conversion or exercise thereof) to any person in the United States or to a U.S. Person, or a person that is purchasing for the account or benefit of a person in the United States or a U.S. Person; (ii) any sale of Offered Securities (including any Subscription Receipts purchased by it pursuant to the Agency Agreement or any Securities issued upon conversion or exercise thereof) to any purchaser unless, at the time the buy order was or will have been originated, the purchaser was outside the United States and not a U.S.
Person, and was not purchasing the  Offered Securities for the account or benefit of a U.S. Person or person in the United States, or the Agent, its affiliates or persons acting on its behalf reasonably believed that such purchaser was outside the United States and not a U.S. Person, and was not purchasing the Offered Securities for the account or benefit of a U.S. Person or person in the United States; (iii) any Directed Selling Efforts either during the distribution of the Securities or during the Distribution Compliance Period or (iv) any hedging transaction with respect to any of the Securities during the Distribution Compliance Period except in compliance with the 1933 Act.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>2.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The Agent is not in the United States or a U.S. Person, and is not acquiring the Agent&#146;s Securities for the account or benefit of a person in the United States or a U.S. Person.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>3.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>It will not offer or sell any Securities prior to the expiration of the Distribution Compliance Period, except in accordance with the provisions of Rule&nbsp;903 or Rule 904 of Regulation&nbsp;S (if available), or pursuant to an effective registration statement under the 1933 Act or an available exemption from the registration requirements of the 1933 Act.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>4.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>It shall send to each underwriter, dealer or other person receiving a selling concession, fee or other remuneration to which it sells Securities during the Distribution Compliance Period pursuant to Regulation S a confirmation or other notice setting forth the restrictions on offers and sales of such securities </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>-3-</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p><PAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:1in;text-align:justify;'><font size=2>in the United States or to or for the account or benefit of U.S. Persons in compliance with Rule&nbsp;903(b)(2) of Regulation&nbsp;S.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>5.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>It will not offer or sell the Securities in the United States or to U.S. Persons or persons purchasing for the account or benefit of persons in the United States or U.S. Persons, except that it may sell Agent&#146;s Securities pursuant to an effective registration statement under the 1933 Act, in compliance with Rule 903 or Rule 904 of Regulation S, if available, or in compliance with an exemption from registration under the 1933 Act.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>6.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>It has not entered and will not enter into any contractual arrangement with respect to the distribution of the Offered Securities without the consent of the Corporation, which will not be unreasonably withheld. </font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>7.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>None of it, any of its affiliates or any person acting on its or their behalf has used or will use any Offering Material or other document or had made or issued or will make or issue any advertisement in connection with the offer or sale of Securities that does not comply with Section&nbsp;B.7 of this Schedule&nbsp;3.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>8.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>None of it, any of its affiliates or any person acting on any of their behalf has taken or will take, directly or indirectly, any action in violation of Regulation&nbsp;M under the U.S. Exchange Act in connection with the offer and sale of the Securities.</font></p> </td> </tr></table>


<p style=' margin-bottom:6pt; margin-top:12pt; margin-left:0.25in;text-align:justify;'><u><font size=2>B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Representations, Warranties and Covenants of the Corporation</font></u></p>

<p style=' margin-bottom:6pt; margin-top:0pt; margin-left:0.25in;text-align:justify;'><font size=2>The Corporation represents, warrants, covenants and agrees that:</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>1.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The Corporation is a Domestic Issuer.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>2.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>Neither the Corporation, its affiliates nor any persons acting on its or their behalf (other than the Agent, its affiliates or any person acting on their behalf, in respect of which no representation is made), has engaged or will engage in: (i) any offer to sell or any solicitation of an offer to buy, any Securities to any person in the United States or to a U.S. Person, or a person that is purchasing for the account or benefit of a U.S. Person; (ii) any sale of Securities to any purchaser unless, at the time the buy order was or will have been originated, the purchaser was outside the United States, and was not a U.S. Person, and was not purchasing for the account or benefit of a U.S. Person or person in the United States, or the Corporation, its affiliates or persons acting on its behalf reasonably believed that such
purchaser was outside the United States and was not a U.S. Person, and was not purchasing for the account or benefit of a U.S. Person or a person in the United States; or (iii) any Directed Selling Efforts with respect to any of the Securities, including the Warrant Shares issuable upon exercise of the Warrants.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>3.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>It will not offer or sell the Securities in the United States or to or for the account or benefit of a U.S. Person  or person in the United States.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>-4-</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p><PAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>4.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>Neither it nor any of its affiliates, nor any person acting on its or their behalf (other than the Agent, its affiliates or any person acting on their behalf, in respect of which no representation is made), during the period in which the Subscription Receipts are offered for sale, has taken or will take any action in that would cause or the exclusion from registration afforded by Rule 903 of Regulation S to be unavailable for offers and sales of the Securities outside the United States in accordance with the Agency Agreement.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>5.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>None of the Corporation, any of its affiliates or any person acting on its or their behalf (other than the Underwriters, their respective affiliates or any person acting on their behalf, in respect of which no representation is made) has offered or will offer to sell, or has solicited or will solicit offers to buy, the Special Warrants in the United States by means of any form of General Solicitation or General Advertising or in any manner involving a public offering within the meaning of Section 4(2) of the U.S. Securities Act.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>6.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The Corporation has not, since the date that is twelve months prior to the commencement of the offering of Special Warrants, sold, offered for sale or solicited any offer to buy any of its securities in the United States or to or for the account or benefit of a U.S. Person, and will not after the date hereof sell, offer for sale or solicit any offer to buy any of its securities in the United States or to or for the account or benefit of a U.S. Person, in a manner that would be integrated with the offer and sale of the Special Warrants and would cause the exclusion from registration set forth in  Rule 506 of Regulation D to become unavailable with respect to the offer and sale of the Securities.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>7.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>All Offering Material and documents used in connection with offers and sales of the Securities prior to the expiration of the Distribution Compliance Period include, or will include, statements to the effect that the Securities have not been registered under the 1933 Act and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. Persons or persons in the United States unless registered under the 1933 Act or an exemption from the registration requirements of the 1933 Act is available. Such statements have appeared, or will appear, (i)&nbsp;on the cover or inside cover page of any material or document; (ii)&nbsp;in the plan of distribution section of any prospectus or offering memorandum; and (iii)&nbsp;in any advertisement made or issued by the Corporation, any of its affiliates or any
person acting on its or their behalf (other than the Underwriters, their respective affiliates, or any person acting on any of their behalf, in respect of which no representation is made).</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>8.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>None of the Corporation, any of its affiliates or any person acting on any of their behalf (other than the Agent, its affiliates, or any person acting on any of their behalf, in respect of which no representation is made) has taken or will take, directly or indirectly, any action in violation of Regulation&nbsp;M under the 1934 Act in connection with the offer and sale of the Securities.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>-5-</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p><PAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>9.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The Corporation is not, and as a result of the sale of the Securities contemplated hereby will not be, an investment company as defined in the United States Investment Company Act of 1940, as amended.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>10.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The Corporation shall not, and shall cause its registrar and transfer agent not to, register any transfer of the Securities or any other securities issued by it outside the United States in reliance on the exclusion from registration set forth in Regulation S except for transfers made (i) pursuant to an effective registration statement under the 1933 Act; (ii) in compliance with Rule 903 or 904 of Regulation S or (iii) in compliance with an exemption from registration under the 1933 Act.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>11.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>The Corporation shall use its commercially reasonable efforts to file and cause the Registration Statement to be declared effective by no later than the Qualification Date, and thereafter shall cause the Registration Statement to remain effective and available for use by the holder until the later of two years from the closing date in respect of the Prospectus and a date which is 10 days after all of the Warrants have been exercised or have expired.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>12.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0in'><font size=2>In the event that the Qualification Conditions are not satisfied by the Qualification Date, the Corporation agrees to file a registration statement under the 1933 Act and applicable state securities laws and use its best efforts to cause the registration statement to become effective within 90 days of the Automatic Exercise date in order to register the resale of the Unit Shares and the Warrants (including those underlying the Agent&#146;s Warrants) and the issuance of the Warrant Shares upon exercise of the Warrants. The Corporation further agrees that it shall cause such registration statement to remain effective and available for use by the holder until the later of November 9, 2007 and a date which is 10 days after all of the Warrants have been exercised or have expired.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>-6-</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p><PAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>SCHEDULE 4(d)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>CONVERTIBLE SECURITIES </font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><u><font size=2>Outstanding Options, Warrants, Convertible / Exchangeable Securities</font></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><u><font size=2>Options</font></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>22,500 at $13.40 (Issued May 26, 2002)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>7,500 at $5.00 (Issued January 10, 2002)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>300,000 at $.25 (Issued April 14, 2004)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>244,500 at $1.57 (Issued January 31, 2005)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>100,000 at $1.50 (Issued February 2005)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>110,000 at $1.06 (Issued March 2005)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Total:  784,500*</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>The Corporation has an obligation to issue an additional 55,500 options to certain employees of Teckn-O-Laser</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><u><font size=2>Warrants</font></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>28,125 at $16.80 (Issued November 2000)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>5,180 at $10.00 (Issued June 2002)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>24,375 at $6.40 (Issued November 2001)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>4,617,750 at $1.50 (Issued June 2004 &#150; July 2005)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>2,057,058 at $1.50 (Issued September 30, 2005)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Total:  6,732,488</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><u><font size=2>Subscription Receipts</font></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>On July 21, 2005, 1,707,000 subscription receipts were issued to a number of investors at a price of $0.75 per subscription receipt.  Each subscription receipt will be automatically exchanged at the &#147;Automatic Exercise Date&#148; (as defined in the Agency Agreement, dated July 21, 2005, between Loewen, Ondaatje, McCutcheon Limited (&#147;LOM&#148;) and the Corporation (the &#147;Agency Agreement&#148;)) for one unit of the Corporation (a &#147;Unit&#148;), each Unit consisting of one share of common stock and one 30-month common share purchase warrant with an exercise price of $1.25.  If the Qualification Conditions have not been satisfied as of the Qualification Date (each as defined in the Agency Agreement), then each subscription receipt shall be automatically exercised at the Automatic Exercise Date into 1.5 Units.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>On November 4, 2005, HBT Holdings GmbH purchased 2,400,000 subscription receipts at a price of $0.50 per subscription receipt.  Each subscription receipt will be automatically exchanged on January 31, 2006 for one unit consisting of one share of common stock and one 30-month common stock purchase warrant with an exercise price of $1.25.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p><PAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'>
<u><font size=2>Westminster Note</font></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>On September 30, 2005, Westminster Capital converted a $1,000,000 convertible note, together with accrued interest of $28,529 into 2,057,058 units, each consisting of one share of common stock and one common stock purchase warrant exercisable at $1.50.  The shares of common stock underlying the Westminster units have not yet been delivered to Westminster Capital.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><u><font size=2>Broker Warrants</font></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>119,490 issued to LOM on July 21, 2005.  Each broker warrant will be automatically exchanged at the Automatic Exercise Date into one 30-month agent&#146;s warrant (or 1.5 agent&#146;s warrants if the Qualification Conditions have not been satisfied as of the Qualification Date).  Each agent&#146;s warrant entitles the holder thereof to purchase one Unit at a price of $0.75.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><u><font size=2>Barrington CDN$2,000,000 Convertible Loan</font></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Principal is convertible into shares of the Corporation&#146;s common stock at $1.00 per share</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><u><font size=2>Trisan Equity Purchase Commitment</font></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Trisan has the right to purchase $605,000 in units at $.50 per unit at stated times ($370,000 of units on December 31, 2005 and $235,000 on March 31, 2006).  Each unit consists of one share of the Corporation&#146;s common stock and one warrant to purchase an additional share of common stock at $1.50 per share.</font><font size=2> </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><u><font size=2>Convertible Notes</font></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>On November 4, 2005 the Corporation issued $600,000 principal amount of notes to Yvon Leveille ($328,113), Alain Lachambre ($136,198) and Manchester Consolidated Corporation ($135,689).   These notes are convertible into shares of the Corporation&#146;s common stock, at a conversion price of $0.50 per share, at the option of the holder, if the Corporation fails to pay interest and principal at maturity.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><u><font size=2>Manchester Acquisition Fee</font></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>The Corporation is required to pay to Manchester Capital acquisition fees on account of the June 23, 2005 and November 4, 2005 acquisitions of up to $672,000, up to $112,000 of which is payable in cash and the balance is payable in shares of the Corporation&#146;s common stock priced at $0.50 per share.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><u><font size=2>Exchangeable Shares</font></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>In connection with the Teckn-O-Laser transaction 6,500,000 Series I Exchangeable Shares of 3091503 Nova Scotia Company are presently issued and outstanding.  These shares are convertible, on a one for one basis into shares of Adsero common stock.  Additional Series I </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p><PAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Exchange Shares may be issued in the future.  Series II Exchangeable Shares of 3091507 Nova Scotia Company may also be issued in the future.  The Series II Exchangeable Shares are also convertible, on a one for one basis, into shares of Adsero common stock.  With respect to the Series I and Series II Exchangeable Shares reference should be made to Adsero&#146;s Form 8-K dated January 31, 2005 as filed with the SEC on February 4, 2005 and to Adsero&#146;s Form 10-K for the year ended December 31, 2004 as filed with the SEC on April 18, 2005.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>On November 4, 2005, pursuant to an agreement entered into with Teckn-O-Laser, the Corporation&#146;s obligations to 9144-6773 Quebec Inc. and 9144-6906 Quebec Inc. were restructured such that (i) the EBITDA-conditional payments of up to CDN$4,182,000 were cancelled and (ii) 1,932,000 preferred shares of 3091503 Nova Scotia Company and the payment obligations related to such preferred shares were cancelled.  Payments now receivable by 9144-6773 Quebec Inc. and 9144-6906&nbsp;Quebec Inc. from the Corporation include: (a) $600,000, (b) 3,272,397 shares of the Corporation&#146;s common stock, and (c) additional aggregate cash payments of $2,290,678 payable in six equal quarterly installments of $381,780 commencing March 31, 2007.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>-3-</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p><PAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>SCHEDULE 4(f)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>ENCUMBRANCES AND SECURITY INTERESTS </font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>The disclosure contained in (i) the Corporation&#146;s Form 8K dated January 31, 2005, as filed with the SEC on February 4, 2005, and (ii) Note 8 to the Corporation&#146;s unaudited financial statements for the quarter ended March 31, 2005, as included in the Corporation&#146;s Form 10QSB, as filed on May 27, 2005 (the &#147;</font><b><font size=2>Q1/05 Form 10QSB</font></b><font size=2>&#148;), is hereby incorporated by reference. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Subject to the approval of the Corporation&#146;s existing bank lienholders, Turbon International Inc. will have a lien on 400,000 shares of Turbon AG owned by the Corporation.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p><PAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>SCHEDULE 4(h)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>COMPLIANCE WITH AGREEMENTS, ETC.</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>The disclosure contained in Note 8 to the Corporation&#146;s unaudited financial statements for the quarter ended March 31, 2005, as included in the Q1/05 Form 10QSB, is hereby incorporated by reference.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>On June 30, 2005, the Corporation was served with a Statement of Claim by Dancap Private Equity Inc. (&#147;</font><b><font size=2>Dancap</font></b><font size=2>&#148;), a copy of which was provided to counsel to the Agent on July 18, 2005.  The Statement of Claim alleges that the Corporation is in breach of certain obligations under a letter agreement between the Corporation and Dancap, dated June 25, 2004, with respect to a possible investment in the Corporation by Dancap.  The Corporation filed a Notice of Intent to Defend on July 19, 2005 and subsequently filed a Statement of Defense and Counterclaim to contest Dancap&#146;s Statement of Claim.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p><PAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>SCHEDULE 4(k)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>PROCEEDINGS</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>The disclosure contained in (i) Note 12 to the Corporation&#146;s unaudited financial statements for the quarter ended June 30, 2005, as included in the Corporation&#146;s Form 10QSB, as filed on August 24,2005 (the &#147;</font><b><font size=2>Q2/05 Form 10QSB</font></b><font size=2>&#148;), (ii) Part II Item 1 of the Q2/05 Form 10QSB, and (iii) Schedule 4(h) to this Agreement is hereby incorporated by reference.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font SIZE=1>GOODMANS\CONNONJ\5237320.4</font></p>

<BR>
<BR>
<HR noshade align="center" width="100%" size="2">
</div>
</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>13
<FILENAME>ex_10-9.htm
<DESCRIPTION>AGREEMENT OF LEASE
<TEXT>
<HTML>
<HEAD>
<TITLE> </TITLE>
</HEAD>
<BODY bgcolor="#ffffff" style='font-family:"Times New Roman"'>

<div style='width:600;'>

<A NAME="ex_10-9"></A>
<BR>
<BR>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><B><font SIZE=2>EXHIBIT 10.9</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>(SINGLE TENANT FORM QUEBEC - ENGLISH)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>AGREEMENT OF LEASE</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>BASIC TERMS</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="600" style='margin-left:0pt;border-collapse:collapse'>
    <tr >
        <TD WIDTH="15" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1.</font></b></p> </td>
        <TD WIDTH="200" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>LANDLORD:</font></B></p> </td>
        <TD WIDTH="385" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>SREIT (CENTRAL NO. 3) LTD.</font></B><font size=2>, represented by Summit Real Estate Limited Partnership, acting as agent and not in its personal capacity, through its sole general partner, Summit Real Estate Limited having a place of business at 5490 Thimens, Suite 110, St-Laurent, Province of Quebec, H4R 2K9</font></p> </td> </tr>
    <tr >
        <TD WIDTH="15" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD WIDTH="200" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD WIDTH="385" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <TD WIDTH="15" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2.</font></b></p> </td>
        <TD WIDTH="200" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>TENANT:</font></B></p> </td>
        <TD WIDTH="385" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>TECKN-O-LASER COMPANY </font></B><font size=2>a legal person, duly incorporated under the laws of Nova Scotia, having a place of business at 2101, Nobel Street, Sainte-Julie, Province of Quebec, J3E 1Z8;</font></p> </td> </tr>
    <tr >
        <TD WIDTH="15" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD WIDTH="200" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD WIDTH="385" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <TD WIDTH="15" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>3.</font></b></p> </td>
        <TD WIDTH="200" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>LEASED PREMISES:</font></B></p> </td>
        <TD WIDTH="385" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Building located at </font><b><font size=2>2101 Nobel Street</font></b><font size=2>, Sainte-Julie, Province of Quebec, J3E 1Z8</font></p> </td> </tr>
    <tr >
        <TD WIDTH="15" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD WIDTH="200" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD WIDTH="385" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <TD WIDTH="15" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD WIDTH="200" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD WIDTH="385" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Leasable Area: deemed at </font><b><font size=2>fifty-six thousand nine hundred and eighty-five (56,985) square feet</font></b><font size=2> as shown cross-hatched on Schedule A attached.</font></p> </td> </tr>
    <tr >
        <TD WIDTH="15" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD WIDTH="200" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD WIDTH="385" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <TD WIDTH="15" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>4.</font></b></p> </td>
        <TD WIDTH="200" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>CONDITION OF LEASED PREMISES:</font></B></p> </td>
        <TD WIDTH="385" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Tenant shall accept the Leased Premises &#147;as is, where is&#148; in their state and condition existing at the Commencement Date, save and except that the Landlord will, at its expense, complete the Landlord&#146;s Work in accordance with Schedule &#147;C&#148;. </font></p> </td> </tr>
    <tr >
        <TD WIDTH="15" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD WIDTH="200" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD WIDTH="385" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <TD WIDTH="15" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>5.</font></b></p> </td>
        <TD WIDTH="200" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>TERM:</font></B></p> </td>
        <TD WIDTH="385" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Approximately ten (10) years</font></b><font size=2>, beginning on the date of acquisition of the Building by the Landlord or one of its nominee companies (the &#147;</font><b><font size=2>Commencement Date</font></b><font size=2>&#148;) and ending on the last day of the calendar month during which the tenth (10<sup>th</sup>) anniversary of the Commencement Date will occur, unless sooner terminated in the manner set forth in the Lease.</font></p> </td> </tr>
    <tr >
        <TD WIDTH="15" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD WIDTH="200" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD WIDTH="385" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <TD WIDTH="15" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>6.</font></b></p> </td>
        <TD WIDTH="200" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>BASE RENT:</font></B></p> </td>
        <TD WIDTH="385" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Base Rent shall be paid monthly in advance by the Tenant  on the Commencement Date and thereafter on the first day of each month and calculated as follows:  </font></p> </td> </tr>
    <tr >
        <TD WIDTH="15" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD WIDTH="200" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD WIDTH="385" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <TD WIDTH="15" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD WIDTH="200" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD WIDTH="385" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Three Hundred and Forty-Five Thousand Seven Hundred and Seventy-Five Dollars ($345,775.00)</font></b><font size=2> per annum from the Commencement Date to the last day of the calendar month during which the fifth (5<sup>th</sup>) anniversary of the Commencement Date will occur; and</font></p> </td> </tr>
</table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="144" style='margin-left:365.4pt;border-collapse:collapse'>
    <tr style=' height:35.5pt'>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:35.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=1>Landlord</font></u><u></u></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:35.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=1>Tenant</font></u><u></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>i</font></p>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="600" style='margin-left:0pt;border-collapse:collapse'>
    <tr >
        <TD WIDTH="15" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD WIDTH="200" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD WIDTH="385" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>THREE HUNDRED</font></B><font size=2> </font><B><font SIZE=2>AND EIGHTY THOUSAND THREE HUNDRED AND FIFTY-TWO DOLLARS ($380,352.00)</font></B><font size=2> per annum for the last five (5) years of the Term of the Lease.</font></p> </td> </tr>
    <tr >
        <TD WIDTH="15" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD WIDTH="200" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD WIDTH="385" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <TD WIDTH="15" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>7.</font></b></p> </td>
        <TD WIDTH="200" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>PROPORTIONATE SHARE:</font></B></p> </td>
        <TD WIDTH="385" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>One hundred per cent (100%.)</font></p> </td> </tr>
    <tr >
        <TD WIDTH="15" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD WIDTH="200" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD WIDTH="385" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <TD WIDTH="15" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>8.</font></b></p> </td>
        <TD WIDTH="200" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>ADDITIONAL RENT:</font></B></p> </td>
        <TD WIDTH="385" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>for the calendar year 2005, Additional Rent is estimated at $2.02 per square foot of the Leasable Area of the Leased Premises;</font></p> </td> </tr>
    <tr >
        <TD WIDTH="15" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD WIDTH="200" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD WIDTH="385" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <TD WIDTH="15" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>9.</font></b></p> </td>
        <TD WIDTH="200" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>RENT PAYMENTS:</font></B></p> </td>
        <TD WIDTH="385" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Tenant agrees to make payments of all Rent payable pursuant this Lease by way of pre-authorized debit from the Tenant&#146;s bank account and to execute and deliver, concurrently with this Lease, such documentation, including that attached hereto as Schedule &#147;D&#148;, as may be required by the Landlord and its bank in order to effect payment of such Rent by automatic debit.</font></p> </td> </tr>
    <tr >
        <TD WIDTH="15" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD WIDTH="200" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD WIDTH="385" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <TD WIDTH="15" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>10.</font></b></p> </td>
        <TD WIDTH="200" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>PRE-PAID RENT AND</font></B><font size=2> </font><B><font SIZE=2>DEPOSIT</font></B><font size=2>:</font></p> </td>
        <TD WIDTH="385" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><strike><font size=2>a) Pre-Paid Rent: $____________ </font></strike></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><strike><font size=2>which equals payment of Rent  (**or Base Rent**) for the months of _________</font></strike></p> </td> </tr>
    <tr >
        <TD WIDTH="15" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD WIDTH="200" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD WIDTH="385" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <TD WIDTH="15" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD WIDTH="200" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD WIDTH="385" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><strike><font size=2>b) Deposit:</font></strike></p> </td> </tr>
    <tr >
        <TD WIDTH="15" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD WIDTH="200" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD WIDTH="385" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <TD WIDTH="15" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>11.</font></b></p> </td>
        <TD WIDTH="200" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>USE:</font></B></p> </td>
        <TD WIDTH="385" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Manufacturing and recycling of toner cartridges for laser printers as well as office, warehouse and distribution activities.</font></p> </td> </tr>
    <tr >
        <TD WIDTH="15" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD WIDTH="200" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD WIDTH="385" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <TD WIDTH="15" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>12.</font></b></p> </td>
        <TD WIDTH="200" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>INSURANCE AMOUNTS:</font></B></p> </td>
        <TD WIDTH="385" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>a) General liability:&nbsp;&nbsp;&nbsp;&nbsp;$5,000,000.00</font></p> </td> </tr>
    <tr >
        <TD WIDTH="15" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD WIDTH="200" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD WIDTH="385" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>b) Tenants&#146; legal liability:&nbsp;&nbsp;&nbsp;&nbsp;$1,000,000.00</font></p> </td> </tr>
    <tr >
        <TD WIDTH="15" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD WIDTH="200" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD WIDTH="385" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>c) Environmental Liability Insurance:&nbsp;&nbsp;&nbsp;&nbsp;N/A</font></p> </td> </tr>
    <tr >
        <TD WIDTH="15" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD WIDTH="200" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD WIDTH="385" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <TD WIDTH="15" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>13.</font></b></p> </td>
        <TD WIDTH="200" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>INDEMNIFIER:</font></B></p> </td>
        <TD WIDTH="385" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>ADSERO CORP., </font></B><font size=2>a legal person duly incorporated under the laws of Delaware, having a place of business at 2101 Nobel Street, Sainte-Julie, Province of Quebec</font></p> </td> </tr>
    <tr >
        <TD WIDTH="15" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD WIDTH="200" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD WIDTH="385" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <TD WIDTH="15" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>14.</font></b></p> </td>
        <TD WIDTH="200" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>SIGN FEE:</font></B><font size=2> </font></p> </td>
        <TD WIDTH="385" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>N/A</font></p> </td> </tr>
    <tr >
        <TD WIDTH="15" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD WIDTH="200" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD WIDTH="385" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <TD WIDTH="15" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>15.</font></b></p> </td>
        <TD WIDTH="200" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>OTHER SECURITY:</font></B></p> </td>
        <TD WIDTH="385" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>A letter of credit in the amount of twenty-five thousand dollars $25,000.00 as governed by the agreement attached hereto as Schedule &#147;I&#148;.</font></b></p> </td> </tr>
    <tr >
        <TD WIDTH="15" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD WIDTH="200" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD WIDTH="385" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <TD WIDTH="15" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>16.</font></b></p> </td>
        <TD WIDTH="200" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>BROKER:</font></B></p> </td>
        <TD WIDTH="385" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>N/A</font></p> </td> </tr>
    <tr >
        <TD WIDTH="15" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD WIDTH="200" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD WIDTH="385" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <TD WIDTH="15" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>17.</font></b></p> </td>
        <TD WIDTH="200" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>PARKING:</font></B></p> </td>
        <TD WIDTH="385" VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Tenant shall have the exclusive right to use all the parking facilities of the Leased Premises;</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="144" style='margin-left:365.4pt;border-collapse:collapse'>
    <tr style=' height:35.5pt'>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:35.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=1>Landlord</font></u><u></u></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:35.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=1>Tenant</font></u><u></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>ii</font></p>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>18.</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>SPECIAL PROVISIONS: </font></B></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>For the purposes of this Special Provisions paragraph, the term &#147;Tenant&#148; shall be deemed to include &#147;permitted transferees&#148; as such term is defined under article 7 of this Lease.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="269" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>a)</font></b></p> </td>
        <td width="221" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>First Option to extend the Term</font></b></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>Provided the Tenant itself physically occupies, uses and carries on business in the Leased Premises and provided the Tenant is not in default in the performance of its obligations and covenants under the Lease when it exercises the option granted by this paragraph and further provided the Lease remains in full force and effect, Tenant shall have the right to extend the term of the Lease by an additional period of five (5) years (the &#147;</font><b><font size=2>First</font></b><font size=2> </font><b><font size=2>Extension Term</font></b><font size=2>&#148;) commencing on the day immediately following the expiration of the Term, under the same terms and conditions as were applicable during such term, save and except that:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0in;margin-bottom:6.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1)</font></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the Leased Premises shall be accepted &#147;as is, where is&#148; in their state and condition existing immediately prior to the commencement date of the First Extension Term. All improvements in and to the Leased Premises shall be the responsibility of the Tenant and shall be performed at the Tenant&#146;s sole cost and expense, the whole subject to the terms and conditions of the Lease; and</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0in;margin-bottom:6.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2)</font></b></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the Base Rent during the First Extension Term shall be the &#147;Market Rent&#148; for the Leased Premises determined as of a date which is sixty (60) days prior to the commencement of the First Extension Term. </font><b><font size=2>Failure by the parties to agree on the Base Rent by such date, the Base Rent for the First Extension Term shall be determined by arbitration in accordance with the provisions of the </font></b><i><b><font size=2>Code of Civil Procedure of Quebec</font></b></i><b><font size=2>. The decision rendered pursuant to the arbitration shall be final and binding upon the parties and shall not be subject to appeal. The cost of arbitration shall be shared equally between the parties provided, however, that each party shall bear its own witness and counsel fees.</font></b></p> </td> </tr></table>


<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>For the purposes hereof, &#147;</font><b><font size=2>Market Rent</font></b><font size=2>&#148; means the yearly fair market net rental rate for the Leased Premises, at the date required for determination of same, having regard to annual net rents then normally being asked for and received for land, buildings and improvements of similar value, extent and quality in the general area of the Leased Premises under net leases (but not subleases) having a similar term as the term for which the Market Rent is being determined. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>In order to validly exercise this option to extend, Tenant must advise the Landlord thereof in writing not earlier that nine (9) months and not later than six (6) months prior to the expiration of the Term. In the event Tenant fails to exercise this option in the aforesaid manner and within the aforesaid delay, this option shall be irrevocably deemed to be null and void and of no further effect and the Lease shall expire at the end of the Term.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="144" style='margin-left:365.4pt;border-collapse:collapse'>
    <tr style=' height:35.5pt'>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:35.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=1>Landlord</font></u><u></u></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:35.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=1>Tenant</font></u><u></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>iii</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>b)</font></b><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size=2>Second Option to extend the Term </font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>Provided the Tenant itself physically occupies, uses and carries on business in the Leased Premises and provided the Tenant is not in default in the performance of its obligations and covenants under the Lease when it exercises the option granted by this paragraph and further provided the Lease remains in full force and effect, Tenant shall have the right to extend the term of the Lease by an additional period of five (5) years (the &#147;</font><b><font size=2>Second</font></b><font size=2> </font><b><font size=2>Extension Term</font></b><font size=2>&#148;) commencing on the day immediately following the expiration of the First Extension Term, under the same terms and conditions as were applicable during such term, save and except that:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0in;margin-bottom:6.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1)</font></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the Leased Premises shall be accepted &#147;as is, where is&#148; in their state and condition existing immediately prior to the commencement date of the Second Extension Term. All improvements in and to the Leased Premises shall be the responsibility of the Tenant and shall be performed at the Tenant&#146;s sole cost and expense, the whole subject to the terms and conditions of the Lease;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0in;margin-bottom:6.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2)</font></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the Base Rent during the Second Extension Term shall be the &#147;Market Rent&#148; for the Leased Premises determined as of a date which is sixty (60) days prior to the commencement of the Second Extension Term. </font><b><font size=2>Failure by the parties to agree on the Base Rent by such date, the Base Rent for the Second Extension Term shall be determined by arbitration in accordance with the provisions of the </font></b><i><b><font size=2>Code of Civil Procedure of Quebec</font></b></i><b><font size=2>. The decision rendered pursuant to the arbitration shall be final and binding upon the parties and shall not be subject to appeal. The cost of arbitration shall be shared equally between the parties provided, however, that each party shall bear its own witness and counsel fees.</font></b></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0in;margin-bottom:6.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3)</font></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>There shall be no further option to extend the Term of the Lease.</font></p> </td> </tr></table>

<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>For the purposes hereof, &#147;</font><b><font size=2>Market Rent</font></b><font size=2>&#148; means the yearly fair market net rental rate for the Leased Premises, at the date required for determination of same, having regard to annual net rents then normally being asked for and received for land, buildings and improvements of similar value, extent and quality in the general area of the Leased Premises under net leases (but not subleases) having a similar term as the term for which the Market Rent is being determined. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>In order to validly exercise this option to extend, Tenant must advise the Landlord thereof in writing not later than six (6) months prior to the expiration of the Term. In the event Tenant fails to exercise this option in the aforesaid manner and within the aforesaid delay, this option shall be irrevocably deemed to be null and void and of no further effect and the Lease shall expire at the end of the Term.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="132" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>c)</font></b></p> </td>
        <td width="84" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Condition</font></b></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>This Lease shall be entirely conditional upon the acquisition of the Building by the Landlord from Teckn-O-Laser Global Company failing which, this Lease shall become null and void and of no further effect, the parties hereby waiving any claim they may have against each other resulting there from.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="144" style='margin-left:365.4pt;border-collapse:collapse'>
    <tr style=' height:35.5pt'>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:35.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=1>Landlord</font></u><u></u></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:35.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=1>Tenant</font></u><u></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>iv</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:center;'>
<B><font SIZE=2>LIST OF SCHEDULES</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>SCHEDULE &#147;A&#148;</font></b><font size=2> &#150; PLAN OF LEASED PREMISES</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>SCHEDULE &#147;B&#148;</font></b><font size=2> &#150; DESCRIPTION OF LANDS</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>SCHEDULE &#147;C&#148;</font></b><font size=2> &#150; LANDLORD&#146;S WORK</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>SCHEDULE &#147;D&#148;</font></b><font size=2> &#150; PRE-AUTHORIZED DEBIT (PAD) ENROLLMENT FORM</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>SCHEDULE &#147;E&#148;</font></b><font size=2> &#150; RULES AND REGULATIONS </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>SCHEDULE &#147;F&#148;</font></b><font size=2> &#150; TENANT&#146;S LIST OF HAZARDOUS SUBSTANCES  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>SCHEDULE &#147;G&#148;</font></b><font size=2> &#150;  TENANT&#146;S LEASEHOLD IMPROVEMENTS</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>SCHEDULE &#147;H&#148;</font></b><font size=2> &#150;  INDEMNITY AGREEMENT</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>SCHEDULE &#147;I&#148;</font></b><font size=2>  &#150;  AGREEMENT REGARDING LETTER OF CREDIT AND OTHER SECURITY</font></p>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="144" style='margin-left:365.4pt;border-collapse:collapse'>
    <tr style=' height:35.5pt'>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:35.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=1>Landlord</font></u><u></u></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:35.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=1>Tenant</font></u><u></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>v</font></p>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>THIS LEASE</font></B><font size=2> is dated the _______ day of _______________ 2005, and is made between</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.63in;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>SREIT (CENTRAL NO. 3) LTD.</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>represented by Summit Real Estate Limited Partnership,</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>acting as agent and not in its personal capacity</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>through its sole general partner, Summit Real Estate Limited</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(the</font><b><font size=2> &#147;Landlord&#148;</font></b><font size=2>)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.63in;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>-and-</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.63in;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>TECKN-O-LASER COMPANY</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(the &#147;</font><b><font size=2>Tenant</font></b><font size=2>&#148;)</font></p>

<p style=' margin-bottom:0pt; margin-top:18pt;text-align:center;'><B><font SIZE=2>ARTICLE 1</font></B></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>DEFINITIONS</font></B></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1.1</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&#147;Additional Rent&#148;</font></b><font size=2>: means the aggregate of (i) the Tenant&#146;s Proportionate Share of Realty Taxes, Operating Costs, Capital Tax and Business Taxes (if applicable), (ii) Utilities Charges (if applicable), (iii) the Management Fee, and (iv) any other money payable by the Tenant under this Lease other than Base Rent.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1.2</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&#147;Alterations&#148;</font></b><font size=2>: means any repairs, alterations, replacements, decorations, or improvements to the Leased Premises. For greater certainty, the Tenant&#146;s trade fixtures shall not be considered as Alterations.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1.3</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&#147;Base Rent&#148;</font></b><font size=2>: means the amount described in Paragraph #6 of the Basic Terms.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1.4</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&#147;Basic Terms&#148;</font></b><font size=2>: means the terms stipulated on pages i to iii of the present Lease. </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1.5</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&#147;Building&#148;</font></b><font size=2>: means the building municipally described in Paragraph #3 of the Basic Terms and as more specifically shown in Schedule &#147;A&#148; hereto, including all the structures and all improvements located therein or affined thereto from time to time.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1.6</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&#147;Business Taxes&#148;</font></b><font size=2>: means taxes imposed upon the Tenant or upon the business, activities, use, occupancy, improvements, equipment, facilities in any part of the Leased Premises of the Tenant or its subtenants or licensees, and any substitute taxes and other charges whether imposed against the Landlord or the Tenant.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1.7</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#147;</font><b><font size=2>Capital Tax</font></b><font size=2>&#148; : means the tax on capital or the Federal tax on large corporations or any other similar tax, calculated on the basis of a fully functional and entirely rented Leased Premises.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1.8</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&#147;Commencement Date&#148;</font></b><font size=2>: means the date referred to in Paragraph #5 of the Basic Terms.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="568" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1.9</font></b></p> </td>
        <td width="520" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&#147;Deposit&#148;</font></b><font size=2>: means the sum of money set out in Paragraph #10(b) of the Basic Terms;</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="295" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1.10</font></b></p> </td>
        <td width="247" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&#147;Event of Default&#148;</font></b><font size=2>: means whenever:</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>a)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>any Rent is not paid when due and the non-payment continues for five (5) business days after written notice from the Landlord to the Tenant;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 1 -</font></p>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>b)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>any of the Tenant&#146;s obligations under this Lease is breached (other than a breach specified in paragraph c), and :</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.75in; text-indent:-0.25in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>(i)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the breach is not remedied within ten (10) days after written notice from the Landlord to the Tenant specifying particulars of the breach, or</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.75in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>(ii) </font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>if ten (10) days is not a reasonable time to remedy the breach, the Tenant has not commenced diligently to remedy the breach within ten (10) days after the written notice or is not proceeding diligently to remedy the breach within a reasonable time; or</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>c)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>any of the following events occurs:</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.75in; text-indent:-0.25in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>(i)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the Tenant or a Person carrying on business in any part of the Leased Premises, or an Indemnifier becomes bankrupt or insolvent or avails itself of the benefit of any statute respecting insolvency or bankruptcy or makes any proposal, assignment or arrangement with its creditors;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.75in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>(ii)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>a receiver or manager is appointed for all or any part of the property of the Tenant or of another Person carrying on business in the Leased Premises, or of an Indemnifier or any of the Tenant&#146;s assets are taken or seized under a writ of execution, assignment, charge or other security instrument, </font><b><font size=2>unless such proceedings are </font></b><i><b><font size=2>bona fide</font></b></i><b><font size=2> contested within the required delays for such contestation;</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>(iii)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>steps are taken for the dissolution, winding up or other termination of the Tenant&#146;s or the Indemnifier&#146;s existence or for the liquidation of their respective assets except in connection with a valid corporate reorganization;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>(iv)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the Tenant or the Indemnifier makes or attempts to make a bulk sale of assets regardless of where they are situated except for bulk sale made to a Transferee when the transfer has been consented to by the Landlord;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>(v)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the Tenant abandons or attempts to abandon the Leased Premises; or</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>(vi)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the Tenant effects or attempts a Transfer that is not permitted under this Lease.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1.11</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&#147;Force Majeure&#148;</font></b><font size=2>: means a strike, labour trouble, inability to get materials or services, power failure, restrictive governmental laws or regulations, riots, insurrection, sabotage, rebellion, war, act of God or any other similar reason, that is not the fault of the party asserting it. Force Majeure does not include inability to obtain funds.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1.12</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&#147;GST&#148; and &#147;QST&#148;</font></b><font size=2>: means the goods and services tax (&#147;</font><B><font SIZE=2>GST</font></B><font size=2>&#148;) </font><b><font size=2>and Quebec sales tax (&#147;QST&#148;)</font></b><font size=2>, and any other similar tax which may be implemented during the Term, imposed by any fiscal authority and that the Landlord must collect or may be called upon to collect from the Tenant relating to the Lease, or any other amount due to the Landlord or for the benefit of the Landlord under the Lease or relating to any goods, services or supplies which the Landlord may furnish to the Tenant under the terms of the Lease or otherwise.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1.13</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&#147;HVAC System&#148;</font></b><font size=2>: means the heating, ventilating and air-conditioning facilities, if any, serving the Leased Premises.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 2 -</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1.14</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#147;</font><b><font size=2>Hazardous Substance</font></b><font size=2>&#148; means any substance or material whose Release, transport, use, storage, or handling is regulated or prohibited by any Governmental Authority under any Environmental Laws, including, without limiting the generality of the foregoing, any contaminant, pollutant, deleterious substance, inflammable liquid, chemical, explosive material or material which may impair life or health, any petroleum or other hydrocarbon and any derivative or by-product thereof, any dangerous substance or goods, asbestos, any gaseous, solid or liquid waste, any special waste, toxic or hazardous substance or chemical, any hazardous waste, material or substance, either in fact or as defined in or pursuant to any Environmental Laws;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1.15</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&#147;Indemnifier&#148;</font></b><font size=2>: means the Person, if any, who has executed or agreed to execute an indemnity agreement in favour of the Landlord.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1.16</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&#147;Landlord&#146;s Work&#148;</font></b><font size=2>: means the work described in Schedule &#147;C&#148; of the Lease.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1.17</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&#147;Lands&#148;</font></b><font size=2>: means the lands described in Schedule &#147;B&#148;, as they may be expanded, reduced or altered from time to time.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1.18</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&#147;Leasable Area&#148;</font></b><font size=2>: means the area of the Building expressed in square feet measured from (a) the exterior face of exterior walls, doors, and windows; (b) the exterior face of interior walls, doors, and windows, separating the Building from Common Elements, if any; (c) the center line of interior partition walls separating the Building from adjoining leasable premises, all as determined by the Landlord&#146;s consultant. Leasable Area of the Building includes interior space even if it is occupied by projections, structures or columns (which may even be Common Elements). </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1.19</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&#147;Leased Premises&#148;</font></b><font size=2>: means the Building and the Lands.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1.20</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&#147;Lease Year&#148;</font></b><font size=2>: means a period of twelve (12) consecutive calendar months commencing on the first day of January and ending on the last day of December. The first Lease Year will commence on the Commencement Date and last Lease Year will expire on the last day of the Term or any extension thereof. </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1.21</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&#147;Management Fee&#148;</font></b><font size=2>: means an amount equal to </font><b><font size=2>three</font></b><font size=2> percent (</font><b><font size=2>3%</font></b><font size=2>) of the aggregate of (i) Base Rent and (ii) the Tenant&#146;s Proportionate Share of Operating Costs and Realty Taxes payable by the Tenant for each Lease Year.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1.22</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&#147;Mortgagee&#148;</font></b><font size=2>: means a creditor that holds all or part of the Building or the Lands as security, but a creditor, chargee or security holder of a tenant is not a Mortgagee.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1.23</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&#147;Operating Costs&#148;</font></b><font size=2>: means any and all costs, charges, impositions, expenses and outlays incurred by or on behalf of the Landlord or allocated by the Landlord, acting reasonably, in connection with the ownership, operation, maintenance, repair, replacement, insuring, management or administration of (i) the Lands and Building or, at the Landlord&#146;s option, (ii) the Park and, by way of example only, and without limiting the generality of the foregoing, shall include</font><b><font size=2> without duplication and profit</font></b><font size=2> all costs, charges and expenses incurred or allocated by the Landlord, acting reasonably, with respect to the following: </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><b><font size=2>a)</font></b><font size=2> security personnel and systems;</font><b><font size=2> b)</font></b><font size=2> electricity, fuel, (other than where these utilities are separately metered and consumed by tenants),  water (including sewer rental) and other utilities and taxes; </font><b><font size=2>c) </font></b><font size=2>all premiums and deductibles relating to liability, property, boiler or pressure vessel and machinery, loss of rental, environmental and such other forms of insurance as the Landlord may from time to time </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 3 -</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>maintain with respect to either (i) the Lands and Building or (ii) the Park;</font><b><font size=2> d)</font></b><font size=2> cleaning, supervising, maintaining, operating and repairing either (i) the Lands and Building or (ii) any land or building within the Park and making replacements therein;</font><b><font size=2> e)</font></b><font size=2> roof repairs and maintenance of a non-structural nature; </font><b><font size=2>f)</font></b><font size=2> supplies necessary for the operation of the Building;</font><b><font size=2> g)</font></b><font size=2>&nbsp;&nbsp;</font><font size=2>an amount determined by the Landlord, acting reasonably, to be included in a reserve fund established towards the replacement of any part of the Building or building systems or any part of any building or building systems located within the Park;</font><b><font size=2> h)</font></b><font size=2> cleaning
exterior curtain walls; maintaining and painting the exterior surface of garage doors and back exit doors as well as repairing and maintaining the staircases and access ladders giving access to back exit doors and roof;</font><b><font size=2> i)</font></b><font size=2> cleaning and maintaining the grounds (including snow removal and landscaping);</font><b><font size=2> j)</font></b><font size=2> any service contracts with independent contractors for maintenance, repairs, replacement and security operations. Without limiting the generality of the foregoing, such contracts shall include those taken out for HVAC systems and life safety systems;</font><b><font size=2> k)</font></b><font size=2> reasonable audit, accounting, legal and other professional and consulting fees and disbursements incurred;</font><b><font size=2> l)</font></b><font size=2> water and business taxes (except as charged to tenants), licenses and fees; and</font><b><font size=2> m)</font></b><font size=2> salaries,
wages and benefits, uniforms, cost of vehicles&#146; leases and operation and communication devices for all personnel (whether on or off-site and whether employed by the Landlord or a management company) engaged in the operation, management, maintenance and repair and accounting services provided in respect of the Lands and Building or, at the Landlord&#146;s option, the Park.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>For greater clarity, the reserve fund established in sub-paragraph g) above shall be used by the Landlord to pay for any expense which, whenever made is characterised as being of a capital nature and may not, in accordance with generally accepted accounting principles, be charged fully in the Lease Year during which it was incurred. To avoid any doubt, should the reserve fund be insufficient to cover the cost of any given expense, the difference between the actual amount of the expense and the amount paid from the reserve fund will not be charged in whole to the Tenant but will be reimbursed to the Landlord from the Tenant&#146;s subsequent contributions to the reserve fund.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>There will be deducted from Operating Costs: (i) net proceeds of insurances received by the Landlord from its insurers, to the extent that the proceeds relate to costs previously included in Operating Costs; (ii) income taxes (Business Taxes and Capital Taxes are not considered as income taxes); (iii) interest on and capital retirement of debt; (iv) ground rentals; (v) expenses relating to the correction of initial construction defects or deficiencies or initial equipment modification or adjustments; (vi) any costs resulting from any breach of the Landlord&#146;s covenants under this Lease; (vii) the costs of acquisition of the Leased Premises; (viii) any legal fees in connection with negotiation of this Lease; (ix) imputed rent in respect of facilities used by Landlord to administer the Leased Premises; (x) any commissions payable by Landlord in respect to the Leased Premises; (xi) any
cost or expenses chargeable to capital except as expressly permitted by this Lease; and (xii) advertising or brokerage costs of Landlord and (xiii) costs of remedying any non-compliance with laws in connection with the original construction of the Building.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1.24</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&#147;Park&#148;: </font></b><font size=2>means a group of buildings that may be located solely on the Lands or on the Lands and additional parcels of land as determined from time to time by the Landlord acting reasonably, within which the Building is located. </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1.25</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&#147;Person&#148;</font></b><font size=2>: means any person, firm, partnership, corporation or other legal entity, including any combination of them.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1.26</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&#147;Pre-Paid Rent&#148;</font></b><font size=2> means the sum of money set out in Paragraph #10(a) of the Basic Terms, if any.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 4 -</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1.27</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Intentionally deleted.</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="259" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1.28</font></b></p> </td>
        <td width="211" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#147;</font><b><font size=2>Proportionate Share</font></b><font size=2>&#148;: means:</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>a)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>with respect to a cost related to the Leased Premises, one hundred percent (100%); and</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>b)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>with respect to a cost related to the Park a fraction which has as its numerator the Leasable Area of the Leased Premises and as its denominator the Leasable Area of the Park or such portion or portions of the Leasable Area of the Park to which the Landlord, acting reasonably shall allocate such cost of which the Tenant is to pay its Proportionate Share.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1.29</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&#147;Public Corporation&#148;</font></b><font size=2>: means a corporation whose shares are traded and listed on a recognized stock exchange in Canada or the United States.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1.30</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&#147;Realty Taxes&#148;</font></b><font size=2>: means the total of: (a) all real property taxes or charges (including local improvements and commercial concentration taxes) from time to time imposed in respect of all or any part of the Building or Lands by any taxing authority, and any other amounts that may be imposed instead of or in addition to them, whether against the Landlord or the Tenant and whether or not similar to the foregoing, and whether in existence at the Commencement Date or not, and whether or not within the contemplation of the parties and (b) all consulting, appraisal, legal and other costs reasonably incurred in attempting to minimize or reduce those amounts. Realty Taxes do not include corporate, income, profits or excess profits taxes assessed upon the income of the Landlord except those that may be imposed instead of or (so long as
they are based on real property) in addition to the taxes and charges described above.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1.31</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&#147;Released Person&#148;</font></b><font size=2>: means the Landlord and any Mortgagee, and each of their respective trustees, directors, officers, employees (while in the ordinary course of their employment) and agents. In connection with any release or other exculpatory language or an indemnity in favor of the Released Person, the Landlord is the agent or trustee of and for the benefit of the Mortgagee and all of the directors, officers, employees and agents mentioned above.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1.32</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&#147;Rent&#148;</font></b><font size=2>: means the aggregate of Base Rent and Additional Rent. </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1.33</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&#147;Secured Claim&#148;</font></b><font size=2>: means a hypothec or other lien or claim, a fixed or floating charge, mortgage, security interest, debenture or other encumbrance, or a notice with respect to any of them. </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1.34</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&#147;Stipulated Rate&#148;</font></b><font size=2>: means one percent (1%) per month which equals an annual interest rate of twelve percent (12%), compounded monthly and not in advance.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="589" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1.35</font></b></p> </td>
        <td width="541" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&#147;Supervision Fee&#148;</font></b><font size=2>: means ten percent (10%) of the amounts to which the fee is applied.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1.36</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&#147;Term&#148;</font></b><font size=2>: means the period of time as described in Paragraph #5 of the Basic Terms.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 5 -</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1.37</font></b></p> </td>
        <td  valign=top >
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>
&#147;Transfer&#148;</font></b><font size=2>: means (a) an assignment, sale, conveyance, sublease, licensing or other disposition, a
hypothec or a mortgage, charge or debenture (floating or otherwise) or other encumbrance of this Lease or any interest in it or of
all or any part of the Leased Premises (whether by operation of law or otherwise), or of any interest in a partnership that is a
Tenant under this Lease; (b) a parting with or sharing of possession of all or part of the Leased Premises; or (c) a transfer or
issue by sale, subscription, assignment, bequest, inheritance, operation of law or other disposition, of all or part of the shares
of the Tenant or an &#147;Affiliate&#148; of the Tenant (as currently defined under the </font><i><font size=2>Canada Business
Corporations</font></i><font size=2> </font><i><font size=2>Act</font></i><font size=2>) which results in a change in the effective
voting control of the Tenant; &#147;Transferor&#148; and &#147;Transferee&#148; have corresponding meanings.</font></p> </td>
</tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1.38</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>&#147;Utilities&#148;</font></b><font size=2>: means the cost of water, fuel, power and any other utilities used in the Building allocated to the Leased Premises by the Landlord and the Landlord&#146;s costs of determining the Utilities Charge including professional, engineering and consulting fees.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:18pt;text-align:center;'><B><font SIZE=2>ARTICLE 2</font></B></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>GRANT OF LEASE</font></B></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2.1</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>The Leased Premises</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The Landlord leases to the Tenant, and the Tenant leases from the Landlord, the Leased Premises, to have and to hold for the Term, unless sooner terminated by the Landlord pursuant to the Lease.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.38in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2.2</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Quiet Enjoyment</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>If the Tenant performs its obligations under this Lease, it may hold and use the Leased Premises without interference by the Landlord or any other person claiming through the Landlord subject to this Lease.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2.3</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Basic Terms</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The Basic Terms shall form an integral part of this Lease as though they were set forth herein in full.</font></p>

<p style=' margin-bottom:0pt; margin-top:18pt;text-align:center;'><B><font SIZE=2>ARTICLE 3</font></B></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>CONDITION OF THE LEASED PREMISES</font></B></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>3.1</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Condition of the Leased Premises</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The Tenant shall accept the Leased Premises in the condition described in Paragraph #4 of the Basic Terms.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.38in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>All Alterations in and to the Leased Premises (other than the Landlord&#146;s Work set forth in Schedule &#147;C&#148; hereto) shall be the responsibility of the Tenant and shall be performed at the Tenant&#146;s sole cost and expense, the whole subject to the terms and conditions hereinafter set forth.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>3.2</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Construction Delays</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The Tenant acknowledges that if there is a delay which results in any part of the Leased Premises or the Landlord&#146;s Work not being completed on schedule, the Landlord will not be responsible for any expenses or losses incurred as a result of the delay, unless caused or contributed to by the acts, omissions or negligence of the Landlord or those for whom Landlord is responsible for by contract or by law.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 6 -</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:18pt;text-align:center;'>
<B><font SIZE=2>ARTICLE 4</font></B></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><b><font size=2>TENANT&#146;S COVENANTS</font></b></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>4.1</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Base Rent</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The Tenant will pay to the Landlord, without demand, abatement or set-off, the Base Rent, calculated in accordance with Paragraph #6 of the Basic Terms, payable in advance in equal monthly installments, beginning on the Commencement Date and thereafter on the first day of every month of the Term.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.38in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>4.2</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Additional Rent</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="357" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>a)</font></b></p> </td>
        <td width="309" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Realty Taxes, Capital Tax and Business Taxes</font></b></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="173" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>(i)</font></b></p> </td>
        <td width="101" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Realty Taxes</font></b></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The Tenant will pay its Proportionate Share of Realty Taxes as Additional Rent, in the manner set forth in this Lease. The Tenant shall not appeal Realty Taxes. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The Tenant shall deliver to the Landlord forthwith upon the Tenant&#146;s receiving the same copies of all assessment notices, tax bills, receipts and other documents received by Tenant relating to Realty Taxes on the Leased Premises.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The Landlord may contest any Realty Taxes and appeal any assessments related thereto and may withdraw any such contest or appeal or may agree with the relevant authorities on any settlement in respect thereof. The Tenant will co-operate with the Landlord in respect of any such contest and appeal and shall provide to the Landlord such information and execute such documents as the Landlord requests to give full effect to the foregoing. All costs of any such contest and appeal by the Landlord shall be included in Realty Taxes.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="167" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>(ii)</font></b></p> </td>
        <td width="95" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Capital Tax</font></b></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:left;'><b><font size=2>The Tenant will pay its Proportionate Share of Capital Tax as Additional Rent, in the manner set forth in this Lease.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><b><font size=2>Notwithstanding the foregoing, the Landlord covenants that, so long as the Landlord is an affiliate (as currently defined under the </font></b><i><b><font size=2>Canada Business Corporations</font></b></i><b><font size=2> </font></b><i><b><font size=2>Act</font></b></i><b><font size=2>) and nominee of Summit Real Estate Investment Trust and provided that the legal provisions governing Capital Tax remain unchanged, the Tenant shall not have to pay Capital Tax.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="211" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>(iii)</font></b></p> </td>
        <td width="115" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Business Taxes</font></b></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The Tenant will also promptly pay all Business Taxes for the Leased Premises to the taxing authorities and, in such case, the Tenant will, on the Landlord&#146;s request, promptly deliver to the Landlord receipts for payment of all its Business Taxes and any assessments or other information related to Business Taxes.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 7 -</font></p>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>b)</font></b><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size=2>Operating Costs and Utilities</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The Tenant will pay to the Landlord its Proportionate Share of Operating Costs, without duplication and except for the Management Fee without profit, as Additional Rent, in the manner set forth in this Lease.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The Tenant will also pay directly to the suppliers, before delinquency, any Utilities separately metered to the Leased Premises which are billed directly to the Tenant by the supplier. The Landlord has no liability or responsibility for providing a means of access to any Utility supplier but shall be free to exercise its own discretion in that regard in the best interests of the Leased Premises. The Tenant will keep current on all of its obligations to any independent Utility supplier with which it contracts directly for its own supply of any Utilities.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="177" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>c)</font></b></p> </td>
        <td width="129" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Management Fee</font></b></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The Tenant will pay the Management Fee as Additional Rent, in the manner set forth in this Lease.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="245" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>d)</font></b></p> </td>
        <td width="197" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Payment of Additional Rent</font></b></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The Landlord shall estimate the amount of the Additional Rent payable by the Tenant at the commencement of each Lease Year, or fraction of a Lease Year within the Term. The Tenant shall pay to the Landlord the Additional Rent in equal monthly installments in advance throughout the period for which the estimate is made. The Landlord may periodically revise its estimates and notify the Tenant of the revised estimates, and the Tenant&#146;s monthly payments will be adjusted accordingly.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>Within 120 days after the end of a Lease Year and upon a reasonable period of time after the expiry of the Lease, the Landlord will provide to the Tenant a statement of the actual amounts payable by the Tenant, showing in reasonable detail the determination of the costs and the calculation of the Tenant&#146;s payment (the &#147;</font><b><font size=2>Statement</font></b><font size=2>&#148;). Any amounts owing by the Tenant to the Landlord will be paid within thirty (30) days after the date of delivery of the Statement by the Landlord. Provided the Tenant is not in default under this Lease, any amounts owing by the Landlord to the Tenant will be credited to the Tenant&#146;s account, without interest.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The Landlord shall, within ten (10) days of the Tenant&#146;s request, provide reasonable access to the Tenant or the Tenant&#146;s accountants or auditors to its books and records with respect to Operating Costs and Realty Taxes for examination by them, at the Tenant&#146;s cost, at the Landlord&#146;s office or offices where such records and books are kept. Notwithstanding the Tenant&#146;s right to question, it shall continue to pay the Rent as and when due.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The Tenant shall not be entitled to dispute the accuracy of any statement provided by the Landlord in accordance with the foregoing or claim any reimbursement or adjustment in respect of Additional Rent owing for a Lease Year after the expiry of six (6) months from the date of receipt by the Tenant of the Landlord&#146;s Statement for such Lease Year.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>4.3</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Intentionally deleted</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>4.4</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Payment of Rent and Overdue Rent</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 8 -</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>Subject to its right to withdraw its approval for pre-authorized debits, the Tenant agrees to make payments of all Rent payable pursuant this Lease in the manner described in Paragraph  #9 of the Basic Terms. Rent is payable in Canadian funds without any deduction, abatement or set-off. Rent payable to the Landlord will be paid to the address set out in Paragraph #1 of the Basic Terms or at any other place which the Landlord designates in writing. Rent for any fractional month at the beginning or end of the Term will be pro-rated on a daily basis using a period of 365 days. If the Tenant defaults in paying Rent, the unpaid Rent bears interest at the Stipulated Rate from the due date to the actual date of payment. Interest as aforesaid shall be deemed to be Rent hereunder. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>4.5</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Pre-Paid Rent and Deposit</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="203" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>a)</font></b></p> </td>
        <td width="155" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Intentionally deleted.</font></b></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>b)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Intentionally deleted.</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>4.6</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Use</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The Tenant will operate its business in the Leased Premises only for the use set out in Paragraph #11 of the Basic Terms and for no other purpose. The Tenant shall satisfy itself that such use is permissible pursuant to all applicable zoning and other municipal laws and regulations. The Tenant shall also be solely responsible for obtaining its own occupancy permit.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>4.7</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Conduct of Business</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>In the conduct of the Tenant&#146;s business, the Tenant will not allow or cause business to be solicited in any part of the Building or the Lands, nor display any merchandise outside the Leased Premises at any time, without prior written consent of the Landlord which shall not be unreasonably withheld or delayed.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>4.8</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Observance of Law</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The Tenant will promptly comply, at its expense, with all governmental requirements from time to time in effect relating to its ability to enter into and comply with this Lease or which pertain to the Leased Premises, the Tenant&#146;s use of the Leased Premises, the conduct of business in the Leased Premises, or the doing of work in the Leased Premises. Without limiting the generality of the foregoing, the Tenant shall also comply, at its expense, with any federal, provincial or municipal laws, by-laws or regulations applicable to workers&#146; health and safety in the Leased Premises. The Tenant is not required, however, to remedy work done by the Landlord in contravention of any law. The Tenant will comply with any reasonable energy conservation measures required by the Landlord.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.38in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>4.9</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Tenant&#146;s Insurance </font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>Throughout the Term of this Lease, the Tenant shall take out and keep in force:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>a)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>comprehensive general liability insurance with respect to the business carried on in or from the Leased Premises and the use and occupancy thereof for bodily injury and death and damage to property of others in at least the amount described in Paragraph #12(a) of the Basic Terms for each occurrence or such greater amount as the Landlord may from time to time reasonably require;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 9 -</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>b)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>all risks (broad form) insurance, including flood and sewer back-up, collapse and flood in respect to furniture, equipment, inventory and stock-in-trade, fixtures and leasehold improvements located within the Building, and such other property located in or forming part of the Building, including all mechanical or electrical systems (or portions thereof) installed by, or on behalf of the Tenant in the Building, the whole for the full replacement cost (without depreciation) in each such instance;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>c)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Intentionally deleted.</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>d)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>business interruption insurance covering loss of earnings from all perils covered in policies obtained under paragraphs b) and c) above for an indemnity period of at least twelve (12) months;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>e)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>tenants&#146; legal liability insurance of at least the amount described in Paragraph #12(b) of the Basic Terms for each occurrence or such greater amount as the Landlord may from time to time reasonably require;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>f)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>environmental liability insurance, as the Landlord may from time to time reasonably require, of at least the amount described in Paragraph #12(c) of the Basic Terms; if any</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>For greater certainty, the Landlord hereby covenants that so long as the Tenant is Teckn-O-Laser Company or a Permitted Transferee as provided for in Sections 7.1 c) (i) and (ii) of this Lease and that the nature of the activities carried on by the Tenant in the Leased Premises remains unchanged, the Landlord will not require the Tenant to carry any environmental liability insurance.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>g)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>any other form of insurance, in such amounts and against such risks, as the Landlord, acting reasonably, or the Mortgagee may from time to time require.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>Each policy of insurance will name, as insured, the Tenant and as additional insured the Released Persons, each as their respective interests may appear. The policies specified under subparagraphs b), c) and d) will contain the Mortgagee&#146;s standard mortgage clause and may have reasonable deductibles. The policies (other than the Tenant&#146;s liability policy) will contain a waiver of any subrogation rights which the Tenant&#146;s insurers may have against the Released Persons and those for whom any of them is in law responsible, whether or not any loss or damage is caused or contributed to by the act, omission  or negligence of any of them. All policies will (i) be non-contributing and apply only as primary and not excess to any other insurance available to any of the Released Persons; (ii) not be invalidated (in relation to the interests of any of the Released Persons) by reason of
any breach of warranties, representations, declarations or conditions in the policies; and (iii) contain an undertaking by the insurers to notify the Landlord and each Mortgagee in writing not less than thirty (30) days before any material change, cancellation or termination.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>Prior to taking possession of the Leased Premises and on every renewal date of the insurance policy, the Tenant will deliver certificates of insurance executed by the Tenant&#146;s insurers. No review or approval of any insurance policy or certificate by the Landlord will in any way alter the Landlord rights under this Lease. In the event of loss or damage, the Tenant will provide the Landlord or the Mortgagee with copies of the Tenant&#146;s insurance policies</font><b><font size=2>.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The Tenant will not allow anything to occur that results in (i) an increase in premiums for any insurance carried by the Landlord or (ii) the cancellation or threatened cancellation or a reduction of coverage under any of the Landlord&#146;s insurance policies in respect of any part of the Building.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 10 -</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><FONT SIZE="2"><B>4.10</B> </FONT></p>  </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Release</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>Except to the extent of its fault, negligence or willful misconduct, none of the Released Persons, is liable for any death or injury from any occurrence in, or relating to any part of the Leased Premises or for any damage to or loss of (or loss of use of) property of the Tenant or of others wherever located and however caused, including any failure in the supply of any services or Utilities, or the exercise by the Landlord of any of its rights under this Lease.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>4.11</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Indemnity</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>Unless arising from the fault, negligence or willful misconduct of a Released Person, the Tenant will indemnify the Released Persons from all losses or claims in connection with loss of life, personal injury, damage to property or anything else arising from a default of any of the Tenant&#146;s obligations under this Lease, or from any occurrence in or relating to the Leased Premises, or from the occupancy or use by the Tenant of all or any part of the Leased Premises, or occasioned wholly or in part by an act or omission of the Tenant or those for whom the Tenant is legally responsible or by anyone permitted to be on the Leased Premises by the Tenant.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>4.12</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Maintenance of the Leased Premises</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The Tenant will keep the Leased Premises and all the improvements, fixtures and equipment in the Leased Premises in a good condition and state of repair, subject to reasonable wear and tear. The Landlord shall have the right at all reasonable times and upon prior reasonable notice, to examine the condition of the Leased Premises and notify the Tenant of deficiencies and the Tenant shall make good any deficiencies for which it is responsible within fifteen (15) days from the date of such notice or longer delay required if work is commenced within such fifteen (15)  day period.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>For greater certainty and without limiting the generality of the foregoing, the Tenant shall, throughout the Term of the Lease or any extensions thereof, maintain and repair the plumbing system, including plumbing insulation for cold water piping, lighting system, fire alarm system and electrical distribution systems serving the Building.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.38in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The Tenant shall use the HVAC System in and for the exclusive use of the Leased Premises. The Tenant shall operate, at its expense, all portions of the HVAC System to the satisfaction of the Landlord. The Tenant will maintain the temperature in the Leased Premises at a reasonable standard of comfort for normal occupancy at all times. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.38in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The Landlord will be responsible for the maintenance, repair and replacement of HVAC units, the cost of which shall be included in the Operating Costs.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>4.13</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Alterations</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The Tenant will not make any Alterations to the Leased Premises without the Landlord&#146;s prior written approval, which will not be unreasonably withheld if: (i) the Alterations meet or exceed the then current standard for the Building; (ii) adequate plans and specifications are produced; and (iii) the Tenant obtains all requisite governmental approvals. If the Landlord agrees to effect Alterations at the Tenant&#146;s request, the Tenant will pay to the Landlord, on demand, all costs incurred by the Landlord in connection with the performance of such work and supervision of any Alterations, including reasonable architectural and engineering consultant&#146;s fees, plus the Supervision Fee calculated on the cost of the Alterations on account of the Landlord&#146;s overhead </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 11 -</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>and administration costs. The Tenant shall ensure that the changes required by the Landlord to such plans and specifications are incorporated therein and the Tenant shall then resubmit them to the Landlord for approval. The Tenant shall pay, as Additional Rent, within thirty (30) days following the receipt of an invoice from the Landlord, all of the costs incurred by the Landlord for the analysis and approval of the plans and specifications as well as the Supervision Fee calculated on the cost of the Alterations.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>All Alterations will be performed: (i) by competent workers; (ii) in a good and skillful manner; and (iii) in accordance with the approved plans and specifications and the Landlord&#146;s reasonable requirements.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The Landlord may require that any maintenance of or Alterations to the Building be performed by the Landlord at the Tenant&#146;s cost if they affect the structure of the Building. The Tenant will pay to the Landlord, on demand, the Landlord&#146;s costs of the maintenance or Alterations, including architectural and engineering consultants&#146; fees, plus the Supervision  Fee.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>If any part of the Building requires repairs, replacement or alteration because of anything done or omitted to be done by the Tenant or its officers, directors, agents, employees, contractors, invitees or licensees then the Tenant will pay to the Landlord, on demand, the Landlord&#146;s cost of repairs, replacements or alterations, plus a Supervision  Fee calculated on said costs.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The Tenant shall not be entitled to install upon the roof of the Building any equipment except as consented to in writing by the Landlord, which consent may not be unreasonably withheld, but if given shall be subject to whatever reasonable conditions the Landlord, in its sole discretion, deems necessary in the circumstances.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>4.14</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Indemnity</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.3in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The Tenant covenants to indemnify the Landlord against and from all losses, costs, claims and demands in respect of any injury or damage caused by or resulting from any work under Article 4.13 of this Lease. Unless caused by the fault, negligence or want of care or skill by or of Landlord or any of its agents, employees, invitees, contractors or other persons for whom Landlord is responsible or who are responsible to Landlord by contract or by law.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>4.15</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Removal of Alterations and Restoration of Leased Premises</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>All Alterations, which exclude the Tenant&#146;s trade fixtures, are the property of the Landlord. The Tenant will not, unless authorized by the Landlord, remove any Alterations from the Leased Premises at any time prior to the expiry or earlier termination of this Lease. At that time, the Tenant will, at its own expense:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(i)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>remove its trade fixtures from the Leased Premises, failing which they will, at the Landlord&#146;s option, either be removed by the Landlord at the Tenant&#146;s cost or become the property of the Landlord; and </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(ii)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>at the Landlord&#146;s option to be exercised by reasonable prior written notice to such effect, remove all Alterations effected by the Tenant or on its behalf during the Term of the Lease and return the Leased Premises in the condition they were in at the Commencement Date of the Term, reasonable wear and tear excepted, failing which such removal shall be effected by the Landlord at the Tenant&#146;s cost. </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 12 -</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The Tenant will repair any damage caused to any part of the Leased Premises by such removal and will leave the Building in a clean, broom swept condition and free of all rubbish. At the expiry or termination of this Lease, the Tenant will also deliver all keys and security cards for the Building to the Landlord.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>4.16</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Signs and Advertising</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>a)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The Tenant may at its expense, erect and maintain identification signage of a type and in a location specified in writing by the Landlord, subject to the Landlord&#146;s prior written approval which approval shall not be unreasonably withheld or delayed of such signage and compliance with all governmental authorities and the Landlord&#146;s sign policy for the Building. Any such sign shall remain the property of the Tenant and shall be maintained by the Tenant at its sole cost and expense and the Tenant shall pay for the electricity consumed by such sign. At the expiration or earlier termination of this Lease, the Tenant will remove any such sign from the Leased Premises at its expense and will promptly repair all damage caused by its installation or removal.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>b)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>If the Landlord, acting reasonably, objects to any sign, picture, advertisement, notice, lettering or decoration which may be affixed or displayed  in any part of the interior of the Leased Premises and which is visible from the exterior thereof, the Tenant shall forthwith remove or replace same at the Tenant&#146;s expense.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>c)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Notwithstanding any of the foregoing or any other provision of this Lease to the contrary, the Landlord hereby approves all of Tenant&#146;s signage on the Leased Premises existing as of the date hereof.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:18pt;text-align:center;'><B><font SIZE=2>ARTICLE 5</font></B></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><b><font size=2>LANDLORD&#146;S COVENANTS</font></b></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>5.1</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Realty Taxes</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The Landlord will pay Realty Taxes. However, the Landlord may defer payment of Realty Taxes, or defer compliance with laws in connection with the levying of Realty Taxes, to the extent legally permitted, if it diligently prosecutes a contest or appeal of the Realty Taxes.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>5.2</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Landlord&#146;s Insurance</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The Landlord will maintain: (a) all risks (broad form) insurance on the Leased Premises (excluding any property of the Tenant or any other persons on the Leased Premises); (b) public liability and property damage insurance with respect to the Landlord&#146;s operations on the Leased Premises; and (c) whatever other forms of insurance the Landlord or the Mortgagee reasonably consider advisable. The Landlord&#146;s insurance will be in those reasonable amounts and with those reasonable deductibles that a prudent owner of a similar building would maintain, having regard to size, age and location. Notwithstanding the Landlord&#146;s covenant contained in this Article 5.2 and notwithstanding any contribution by the Tenant to the cost of the Landlord&#146;s insurance premiums as part of Operating Costs or otherwise, the Tenant agrees that (i) the Tenant is not relieved of any liability arising
from or contributed to by its acts, fault, negligence or omissions; (ii) no insurable interest is conferred on the Tenant under any policies of insurance carried by the Landlord and (iii) the Tenant has no right to receive any proceeds of any such insurance policies carried by the Landlord. Landlord&#146;s insurance policies shall contain a waiver by Landlord&#146;s insurer of all rights of subrogation as against the Tenant and Tenant&#146;s directors, officers, </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 13 -</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>employees, servants, agents and those for whom Tenant is responsible in law, whether or not any loss or damages caused or contributed to by the act, omission or negligence of any of them.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>5.2A</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Release</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>Landlord hereby releases and waives any and all claims against Tenant and those for whom Tenant is in law responsible with respect to any loss, injury or destruction to the extent of the aggregate of the proceeds payable to the Landlord under any policy of insurance carried by the Landlord plus any deductibles there under or to the extent that such proceeds would have been available to Landlord had it satisfied its obligations to insure as set forth in this Lease (deductibles to be considered as non-existent in such case), whether or not such loss, injury or destruction arises from the negligence of Tenant or those for whom Tenant is in law responsible.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>5.2B</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Indemnity</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>Except to the extent, if any, that Landlord is released by another provision of this Lease from liability therefore, Landlord will indemnify and hold harmless Tenant from and against all claims, liabilities, damages, costs, suits or actions arising from:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>any accident, injury (including death) or damage whatsoever, howsoever caused, to any person or persons (including, without limiting the generality of the foregoing, Landlord, its employees, agents and invitees or licensee of Landlord and all other persons claiming  through or under any of them) or to the property of any such person or persons occurring during the Term, caused by want of maintenance, repair or replacement or other condition of the Leased Premises for which Landlord is responsible;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(b) </font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>any event or circumstance Tenant is released from under a provision of this Lease or by law;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(c)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>any breach, violation or non performance of any covenant, condition or agreement contained in the present Lease or on the part of Landlord to be fulfilled, kept, observed or performed;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(d) </font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the conduct or management of or from any work or thing whatsoever done or not done in or about the Leased Premises or arising from any act of negligence, omission, imprudence, neglect or want of care or skill by or of Landlord or any of its agents, employees, invitees, contractors or other persons for whom Landlord is responsible or who are responsible to Landlord by contract or by law; and</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(e)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>failure of Landlord to fully, faithfully and punctually comply with any legitimate requirement of any public or quasi public authority having jurisdiction over the Leased Premises.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>5.3</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Maintenance and Repairs</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>Subject to Article 6, the Landlord will maintain and repair the Leased Premises as would a prudent owner of a similar industrial building, having regard to size, age and location, subject to the following exceptions: (a) normal wear and tear, and (b) damage or injury caused by or to the extent contributed to by anything done or omitted to be done by or the negligence of the Tenant or those for whom it is legally responsible and the costs thereof shall be included in Operating Costs.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 14 -</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>In the case of sub-paragraph (b) above, but subject to Article 6, the Landlord shall repair and the cost thereof shall be charged to the Tenant plus the Supervision Fee and shall be payable by the Tenant to the Landlord upon demand.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.38in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The Landlord shall maintain and repair the HVAC System serving the Leased Premises and the cost thereof shall be included in Operating Costs. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The Landlord shall maintain and repair all pedestrian and garage doors in the loading dock area  and such costs shall be included in Operating Costs. Notwithstanding the foregoing,  Landlord shall not be responsible for damages caused by the willful misconduct or negligence of the Tenant or those for whom it is responsible at law and the Tenant will remain responsible to maintain and repair opening and closing mechanisms (such as, by way of example, locks and automatic door openers and dock levelers).</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The Landlord will use its best efforts as would a prudent owner of a similar industrial building to minimize all Operating Costs.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="171" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>5.3A</font></b></p> </td>
        <td width="123" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Landlord&#146;s care</font></b></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="509" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="461" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Notwithstanding any contrary provision of this Lease, Landlord will effect:</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>structural repairs or replacements including those resulting from inherent structural defects or weaknesses;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(b)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the correction of any construction or design fault or defect due to improper materials or workmanship;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(c)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>repairs and replacements of the roof; and</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(d)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>replacements of the heating, ventilating and air-conditioning equipment servicing the Leased Premises.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>Tenant will permit Landlord to perform its obligations for matters contemplated in this Section 5.3A. without being entitled to any indemnity, reduction and Rent or any damages or compensation therefore. All such work will be completed by Landlord with reasonable dispatch, as a prudent landlord would do and without unreasonably interfering with Tenant&#146;s use and enjoyment of the Leased Premises.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>5.4</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Control of the Leased Premises by the Landlord</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>a)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The Landlord </font><b><font size=2>has at all time exclusive control of the Leased Premises and their management and operation. Without limiting the generality of the foregoing, the Landlord will have, among its other rights, the right to: (i) temporarily obstruct parts of the Leased Premises for necessary maintenance, repair or construction; (ii) employ managers for the operation, maintenance and control of the Leased Premises; (iii) and perform any act as, in the use of good business judgment, the Landlord determines to be advisable for the more efficient and proper operation of the Leased Premises and in such way as to minimize disruption of the Tenant&#146;s enjoyment of the Leased Premises.</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 15 -</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>b)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Despite anything to the contrary in this Lease but provided that Landlord acts with prudence and diligence so as to minimize description of Tenant&#146;s enjoyment of the Leased Premises, the Landlord shall be not liable for and the Tenant will not be entitled to any compensation or Rent reduction as a result of the Landlord&#146;s exercise of its rights under subparagraph a).</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>5.5</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Landlord&#146;s Right of Entry</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>It is not a re-entry or a breach of quiet enjoyment if the Landlord enters the Leased Premises at reasonable times after reasonable written notice (but if the Landlord determines there is an emergency, no notice is required): (i) to examine the Leased Premises, including an examination to ensure that there are no Hazardous Substances present and there are appropriate safeguards in place to avoid the existence of any Hazardous Substances; (ii) to make permitted or required repairs, alterations, improvements or additions to the Leased Premises or the Building; or (iii) to show them to prospective purchasers, tenants or Mortgagees, in each case (to the extent reasonably possible in the circumstances) without unreasonably interfering with the Tenant&#146;s business operations in the Leased Premises. The Landlord may take material onto the Leased Premises for these purposes. Rent will not
abate or be reduced while the repairs, alterations, improvements or additions are being made provided Tenant&#146;s business operations are not unduly affected. During the 6 months prior to the expiry of the Term, the Landlord may place upon the Building &#147;For Rent&#148; notices of reasonable size and in reasonable locations.</font></p>

<p style=' margin-bottom:0pt; margin-top:18pt;text-align:center;'><B><font SIZE=2>ARTICLE 6</font></B></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>DAMAGE AND DESTRUCTION AND EXPROPRIATION</font></B></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>6.1</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Damage and Destruction</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The Landlord and the Tenant agree that, if during the Term, the Building or the Leased Premises are damaged or destroyed by fire, lightning or any other peril in connection with which the Landlord is insured or should have been insured pursuant to the terms of this Lease in relation to the Leased Premises (hereinafter called &#147;</font><b><font size=2>Damage</font></b><font size=2>&#148;) and such Damage, in the opinion of the Landlord acting reasonably, renders the Leased Premises or the Building:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>a)</font></b></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>so substantially and severely damaged that they cannot with reasonable diligence be repaired or rebuilt within 150 days after the happening of Damage, then this Lease shall at the Landlord&#146;s or the Tenant&#146;s option (such option shall be exercised within sixty (60) days of the date of Damage) cease and become ended and terminated as of the date of Damage and in the event of such termination as above mentioned, the Landlord may immedi&#173;ately on such termination re-enter and repossess the Leased Premises discharged from this Lease. In the event either the Landlord or the Tenant exercises the said option to terminate this Lease as hereinbefore set out in this Article, then notice of exercise of such option to be valid and effective, shall be accompanied by a certificate from an architect or engineer chosen by the Landlord,
stating that the Leased Premises or the Building, cannot with reasonable diligence be repaired or rebuilt within 150 days of Damage;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>b)</font></b></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>in the event that neither the Landlord nor the Tenant shall elect to terminate this Lease by reason of Damage, as set out in sub-paragraph a), or if the Building or the Leased Premises shall be reparable as aforesaid within 150 days from the happen&#173;ing of Damage, the Rent and all other sums payable by the Tenant to the Landlord under this Lease, shall abate by the same proportion as the area of the part of the Building rendered unfit for occupancy bears to the whole of the Building but only to the extent of the monies actually received by the Landlord from any company carrying rental income insurance on the Building and the Landlord covenants and </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 16 -</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:6pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>agrees with the Tenant, if Damage is covered by the Landlord&#146;s insurance or should have been pursuant to the terms of this Lease, to forthwith proceed and carry on with all diligence, the completion of such repairs and replacements as shall be necessary to repair the Building and Leased Premises to substantially the same condition in which they were prior to the Damage;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>c)</font></b></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Rent payable by the Tenant hereunder shall not be abated if the Damage is caused by any act or omission of the Tenant, its agents, contractors, employees or any other person entering upon the Leased Premises under the invitation of the Tenant;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>d)</font></b></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>In the event of termination of the Lease in the aforementioned manner, all insurance benefits, other than those sums relating to the property of the Tenant, shall be and shall remain the absolute property of the Landlord;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>e)</font></b></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Notwithstanding anything herein contained if any such damage or destruction results from the fault or negligence of the Tenant or a person or persons for whom the Tenant is in law responsible, without prejudice to any other rights or remedies of the Landlord, the Tenant shall be liable for all costs and damages and the damages may be repaired by the Landlord at the cost and expense of the Tenant.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="157" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>6.2</font></b></p> </td>
        <td width="109" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Expropriation</font></b></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<P STYLE=' MARGIN-BOTTOM:0PT; MARGIN-TOP:0PT; MARGIN-LEFT:0.5IN;TEXT-ALIGN:JUSTIFY;'><FONT SIZE=2>IF THE LEASED PREMISES, THE BUILDING OR THE LANDS ARE EXPROPRIATED BY A GOVERNMENTAL AUTHORITY IN A MATERIAL OR SUBSTANTIAL MANNER, THE LANDLORD OR TENANT SHALL HAVE THE RIGHT TO TERMINATE THIS LEASE UPON AT LEAST THIRTY (30) DAYS NOTICE TO THE OTHER, ALL RENT WILL ABATE AS OF THE EFFECTIVE DATE OF THE NOTICE, AND THE TENANT WILL HAVE NO CLAIM AGAINST THE LANDLORD AS A RESULT OF THE EARLY TERMINATION OF THIS LEASE.</FONT></P>

<p style=' margin-bottom:0pt; margin-top:18pt;text-align:center;'><B><font SIZE=2>ARTICLE 7</font></B></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>TRANSFERS BY TENANT AND SALE AND FINANCING BY THE LANDLORD</font></B></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>7.1</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Consent to Transfer</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>a)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The Tenant will not enter into a Transfer without the Landlord&#146;s prior written consent. Notwithstanding any statute or common law, such consent may be withheld if there is an Event of Default; but otherwise consent will not be unreasonably withheld. The Landlord will be deemed to be reasonable in withholding its consent to any Transfer if, among other reasons:</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>(i)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>in the Landlord&#146;s reasonable opinion: (1) the financial background, business history and capability of the Transferee is unsatisfactory; (2) the Transferee may not be able to pay the Rent in full when due and payable; or (3) the nature or character of the proposed business of the Transferee is such that it might harm the Landlord&#146;s business or reputation, or is unethical, immoral or illegal;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>(ii)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the Transferee pays or gives to the Transferor money or other value that is reasonably attributable to the Landlord&#146;s Work that are owned by the Landlord or that the Landlord has paid for in whole or in part; </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>(iii)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the Transfer is a mortgage, charge or debenture in respect of this Lease or the Leased Premises; or</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>(iv)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the Landlord does not receive sufficient information from the Tenant or the Transferee to enable it reasonably to make a determination concerning the matters set out above.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 17 -</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>This section does not apply to a Transfer that occurs on the death of the Transferor, or a Transfer described in paragraph (c) of the definition of &#147;Transfer&#148;, where the Tenant occupies all of the Leased Premises and is either (A) a Public Corporation, or (B) a subsidiary body corporate (as currently defined under the </font><i><font size=2>Canada Business Corporations Act</font></i><font size=2>) of a Public Corporation and the shares of the Public Corporation (and not of the Tenant) are transferred or issued. The Tenant will nevertheless notify the Landlord if any exempt Transfer takes place.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><b><font size=2>In addition, this section shall not apply to the sublease of part of the Building by Tenant to Thersol Inc. as well as to a non-profit organization known as Soci&#233;t&#233; de scl&#233;rose syst&#233;mique (Scl&#233;rodermie) du Qu&#233;bec Inc. which have been previously disclosed to Landlord and for which Landlord hereby grants its consent for all intents and purposes hereof.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>b)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>If the Tenant intends to effect a Transfer, then the Tenant will give prior written notice to the Landlord of such intent, specifying the proposed Transferee and providing additional information including, without limitation, a copy of any </font><i><font size=2>bona fide</font></i><font size=2> written offer with respect to the proposed Transfer which the Tenant is prepared to accept, subject to compliance with the provisions of this Lease and which must disclose any and all monetary payments or other consideration made or to be made by the proposed Transferees as consideration for such Transfer, and any other information concerning the financial or business status of the Transferee that the Landlord requires. The Landlord will, within ten (10) days after having received notice and all necessary information, notify the Tenant in writing either that it consents
or does not consent to the Transfer. </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>c)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Notwithstanding anything to the contrary contained in section 7.1a) and provided no Event of Default exists, the Tenant shall have the right to effect a Transfer without the Landlord&#146;s prior written consent to:</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>(i)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>a holding or subsidiary body corporate or affiliate of the Tenant as such terms are defined in the </font><i><font size=2>Canada Business Corporations Act</font></i><font size=2> as amended from time to time or any successor or replacement legislation (a &#147;Related Company&#148;); or</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>(ii)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>a corporate successor which results from the merger, amalgamation or other corporate reorganization of Tenant; or</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>(iii)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>to a </font><i><font size=2>bona fide</font></i><font size=2> purchaser, as a going concern, of substantially all the assets and operations of Tenant.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:justify;'><font size=2>(each such persons being called a &#147;</font><b><font size=2>Permitted Transferee</font></b><font size=2>&#148; and each such transfer being called a &#147;</font><b><font size=2>Permitted Transfer</font></b><font size=2>&#148;) </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>In the case of any Permitted Transfer, the Permitted Transfer will not become affective unless (a) the Landlord receives prior written notice of the transfer; (b) in the case of a Permitted Transfer pursuant to subparagraph a), the Permitted Transferee remains a Related Company of the Tenant; and (c) all the provisions of Sections 7.2 and 7.3 shall apply to each such Permitted Transfer.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>7.2</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Transfer Conditions</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The following conditions apply to Transfers and to consents given by the Landlord: (a) the Landlord&#146;s consent is not a waiver of the requirements for consent for subsequent Transfers; (b) the Transferor will remain liable for the Tenant&#146;s obligations and indemnify the Landlord against </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 18 -</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>the Transferee&#146;s failure to perform the Tenant&#146;s obligations after the Transfer; (c) the Transferee will execute an agreement directly with the Landlord agreeing to be bound by this Lease as a Tenant; (d) the Landlord may apply amounts collected from the Transferee to any unpaid rent; and (e) once the Landlord&#146;s consent is given, the Transfer must take place within sixty (60) days or the consent will expire and the Transfer may not take place unless the Tenant again complies with Article 7 and (f) the Tenant will reimburse any out of pocket expenses incurred by the Landlord during its review of the Tenant&#146;s request for a Transfer, including legal costs on a solicitor-and-own-client basis and, in addition, will pay to the Landlord a fee of $500.00 (plus G.S.T.) for the preparation of the legal documentation evidencing the Landlord&#146;s consent to the Transfer. For
greater certainty, the total amount payable by the Tenant to the Landlord under this Section 7.2 shall not exceed $750.00 (plus G.S.T.). The Landlord hereby acknowledges that no fee whatsoever shall be charged to the Tenant in reference with the subleases in favor of Thersol Inc.</font><b><font size=2> </font></b><font size=2>and Soci&#233;t&#233; de scl&#233;rose syst&#233;mique (Scl&#233;rodermie) du Qu&#233;bec Inc. referred to in paragraph 7.1 a) above.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>7.3</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Additional Terms Respecting Transfers</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>a)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Acceptance by the Landlord of Rent or other payments by a Transferee is not, (i) a waiver of the requirement for the Landlord to consent to the Transfer, (ii) the acceptance of the Transferee as Tenant, or (iii) a release of the Tenant from its obligations under this Lease.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>b)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>No part of the Leased Premises or this Lease will be listed or advertised by the Tenant or any other Person for the purpose of a Transfer, without the Landlord&#146;s prior written consent, which may not be unreasonably withheld or delayed.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>c)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Any documents evidencing the Landlord&#146;s consent to the Transfer and the matters set out in Section 7.2 will be prepared by the Landlord.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>d)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The Released Persons will not be liable for any claims, actions, damages, liabilities or expenses of the Tenant or any Transferee arising out of the Landlord delaying or withholding its consent to any Transfer and the Tenant&#146;s only recourse will be to bring an application for a declaration that the Landlord must grant its consent to the Transfer. </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>e)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>In the event of any Transfer by the Tenant by virtue of which the Tenant receives a rent in the form of cash, goods or services from the Transferee which is greater than the Rent payable hereunder to the Landlord, the Tenant will pay such excess to the Landlord in addition to all Rent payable under this Lease, and such excess rent shall be deemed to be further Additional Rent payable hereunder.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>7.4</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Sale by the Landlord</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>If the Landlord transfers or disposes of any part of the Leased Premises or all or part of the Landlord&#146;s interest therein or under this Lease, then to the extent that the transferee or disposee agrees with the Landlord to assume the Landlord&#146;s obligations under this Lease, the Landlord will be released from them, except for the existing defaults as of the date of the transfer or disposition.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>7.5</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Subordination and Attornment</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>This Lease is subordinate to every existing and future mortgage, charge, trust deed, financing, refinancing or collateral financing against the Leased Premises or the Building and any renewals or extensions of or advances under them (collectively &#147;</font><b><font size=2>Encumbrances</font></b><font size=2>&#148;). The Tenant will, on </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 19 -</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>request, attorn to and recognize as landlord the holder of any such Encumbrances or any transferee or disposee of the Building or of an ownership or equity interest in the Building. The Tenant will, within ten (10) days after the request, sign and deliver any reasonably requested postponement, subordination or attornment document.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><b><font size=2>The Landlord will make best efforts to obtain non disturbance agreements for all Encumbrances (currently in place and subsequent charges). The non disturbance agreement will be on the lenders standard form and will be subject to review and comments by the Tenant acting reasonably. The Tenant may, if necessary,  make reasonable efforts to have the lender amend the standard form based on the Tenant&#146;s reasonable request for such amendments. The Tenant shall not unduly delay the signing of the subordination agreement. The Landlord hereby declares that as at the Commencement Date of the Lease, there shall be no Encumbrances in place.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>7.6</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Status Statement</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>Within fifteen (15) days after the request, the Tenant will sign and deliver to the Landlord or to any Person with or proposing to take an interest in all or part of the Leased Premises, a status statement or certificate stating that this Lease is in full force and effect, any modification to this Lease, the commencement and expiry dates of this Lease, the date to which Rent has been paid, the amount of any Pre-Paid Rent or Deposit, listing any alleged existing defaults by the Landlord or set-offs by the Tenant and the particulars thereof and any other information reasonably required by the Person requesting the certificate.</font></p>

<p style=' margin-bottom:0pt; margin-top:18pt;text-align:center;'><B><font SIZE=2>ARTICLE 8</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:center;'><B><font SIZE=2>DEFAULT</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:center;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>8.1</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Right to Terminate</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>a)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>If an Event of Default occurs, (i) the full amount of the current month&#146;s and the next three (3) months&#146; installments of Rent and GST and QST will immediately be due and payable, and (ii) the Landlord may without any other form of legal process whatsoever, at the Landlord&#146;s option, to be exercised by written notice to the Tenant, forthwith terminate this Lease </font><i><font size=2>ipso facto</font></i><font size=2> and all of the Tenant&#146;s rights under it will terminate without prejudice to the Landlord&#146;s right to recover any arrears of Rent and damages for any previous breach by the Tenant of this Lease. Despite any termination for an Event of Default, the Landlord may sue the Tenant for damages, including loss of future Rent as a result of this Lease being prematurely terminated and the cost of recovering the Leased Premises. If any
legal proceedings are instituted because of an Event of Default, the Tenant will pay the Landlord&#146;s expenses, including reasonable legal fees on a solicitor and client basis.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>Upon termination, the Tenant will
promptly (and in any case within ten (10) days after written notice requiring it to do so) remove all of its property from the
Leased Premises, or the Landlord may at any time remove all or part of the property from the Leased Premises and store it in a
public warehouse or elsewhere at the cost of the Tenant. Despite anything to the contrary, the Landlord will not be responsible for
loss or damage to any of the Tenant&#146;s property regardless of how the loss or damage is caused unless caused by its fault or by
negligence or those for whom it is responsible. If the Tenant fails to remove its property as required, or if it fails to pay the
Landlord&#146;s costs of removal and storage within ten (10) days after written notice specifying those costs, the Tenant will be
considered to have abandoned its property and the Landlord will be entitled to remove it at the Tenant&#146;s cost or retain or sell
or dispose of it for the Landlord&#146;s own benefit.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 20 -</font></p>

<HR noshade align="center" width="100%" size="2">

<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>8.2</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Landlord May Cure the Tenant&#146;s Default</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>If the Tenant defaults in the payment of money that is required under this Lease to be paid to a third party, the Landlord may, after ten (10) days&#146; notice to the Tenant, pay all or part of the amount payable. If the Tenant otherwise defaults under this Lease the Landlord may give the Tenant at least ten (10) days&#146; prior notice (except that no notice will be required in an emergency) and if the Tenant does not, within such a period, commence diligently and then proceed diligently to cure the default, the Landlord may perform or cause to be performed all or part of what the Tenant failed to perform. Then Tenant will pay to the Landlord on demand, the Landlord&#146;s reasonable expenses incurred under this Section 8.2, plus the Supervision Fee.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>8.3</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Application of  Money</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The Landlord may apply amounts received from or due to the Tenant against amounts due and payable under this Lease, even if otherwise requested by the Tenant, unless the Tenant can satisfactorily demonstrate to the Landlord, acting reasonably, that an account is in fact not due and payable. Payment by the Tenant or receipt by the Landlord of less than the required monthly payment of Rent is on account of the earliest stipulated Rent. An endorsement or statement on a cheque or letter accompanying a cheque or payment as Rent is not an acknowledgment of full payment, and the Landlord may accept and cash the cheque or payment without prejudice to its right to recover the balance of the Rent or pursue its other remedies.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>8.4</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Remedies Generally</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The remedies under this Lease are cumulative and may be exercised independently or in combination with others. No remedy is exclusive or dependant on any other remedy. The specifying or use of a remedy under this Lease does not limit rights to use other remedies available at law generally. The Tenant agrees that any breach by the Landlord under this Lease can be adequately compensated in damages.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 21 -</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:18pt;text-align:center;'>
<B><font SIZE=2>ARTICLE 9</font></B></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>ENVIRONMENTAL MATTERS</font></B></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>9.1</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Definitions</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="419" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="371" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>For the purpose of the Lease and, in particular, this Section:</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>a)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#147;</font><b><font size=2>Environmental Laws</font></b><font size=2>&#148; means all federal, provincial and municipal laws, regulations, by-laws, standards, requirements, ordinances, codes, policies, guidelines, Orders, Notices, Permits and directives pertaining to the protection, conservation, utilization, impairment or degradation of the Environment in effect from time to time;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>b)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#147;</font><b><font size=2>Environment</font></b><font size=2>&#148; includes air, land, groundwater and surface water;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>c)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#147;</font><b><font size=2>Governmental Authority</font></b><font size=2>&#148; means any federal, provincial or municipal parliament, legislature, or any regulatory body, agency, ministry, department, commission or board, or any court or any other law, regulation or rule-making entity, having jurisdiction, or any Person purporting to act under the authority of any of the foregoing or any other authority charged with the administration or enforcement of Environmental Laws;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>d)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#147;</font><b><font size=2>Notice</font></b><font size=2>&#148; means any citation, directive, Order, inspection, proceeding, judgment or other communication, written or oral, received by the Tenant;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:-1in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>e)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#147;</font><b><font size=2>Order</font></b><font size=2>&#148; means any order, decision, decree, judgment, ruling, claim or the like from or by any Governmental Authority under any Environmental Laws;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>f)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#147;</font><b><font size=2>Permit</font></b><font size=2>&#148; means any permit, certificate, authorization, licence, right or exemption or the like issued or granted by any Governmental Authority pursuant to or under any Environmental Laws;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>g)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>&#147;</font><b><font size=2>Release</font></b><font size=2>&#148; includes any release, discharge, emission, disposal or dumping into or within the Environment.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>9.2</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Covenants</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="311" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>a)</font></b></p> </td>
        <td width="263" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Compliance with Environmental Laws</font></b></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:-1in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The Tenant shall comply and cause its employees, agents, contractors and those for whom it is responsible to comply with all Environmental Laws (including, without limiting the generality of the foregoing, obtaining any required Permits) relating to the Leased Premises or the use thereof by the Tenant or those acting under its authority or control.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="133" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>b)</font></b></p> </td>
        <td width="85" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Inspection</font></b></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:-1in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The Tenant shall permit the Landlord, its officers, employees, consultants, authorized representatives and agents to (i) inspect the Leased Premises and the Tenant&#146;s operations; (ii) conduct tests and environmental assessments; (iii) remove samples from the Leased Premises; (iv) examine and photocopy any documents or records relating to the Leased Premises; and (v) interview the Tenant and its employees, agents, contractors and those for whom it is responsible; all at such reasonable times and intervals as the Landlord may desire.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 22 -</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="253" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>c)</font></b></p> </td>
        <td width="205" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Use of Hazardous Substances</font></b></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:-1in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The Tenant shall not use the Leased Premises, or permit them to be used, to utilize, manufacture, store, produce or process any Hazardous Substance with the exception of those listed in Schedule&nbsp;&#148;F&#148; and except as permitted in writing by the Landlord to be brought into the Building or onto the Lands and in compliance with all Environmental Laws.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="211" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>d)</font></b></p> </td>
        <td width="163" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Notice to the Landlord</font></b></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The Tenant shall promptly notify in writing both the Landlord and the proper Governmental Authority, of any Release occurring upon the Leased Premises.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="289" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>e)</font></b></p> </td>
        <td width="241" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Removal of  Hazardous Substances</font></b></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:-1in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The Tenant shall, promptly on demand remove all non-permitted Hazardous Substances used or Released by the Tenant or brought onto the Leased Premises, by the Tenant or those acting under its authority or control. For greater certainty, the foregoing obligation of the Tenant shall include, without limitation, the responsibility to remove any Hazardous Substances which have, as a result of the operations of the Tenant or any other Person acting under its authority or control, become affixed to, permeated or accumulated on or within any structures forming part of the Building or the Lands.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="253" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>f)</font></b></p> </td>
        <td width="205" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>List of Hazardous Substances</font></b></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>Attached as Schedule &#147;F&#148; is a list of all material Hazardous Substances that the Tenant will use at the Leased Premises. This list will be updated and submitted to the Landlord annually on the anniversary date of the Commencement Date.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="152" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>g)</font></b></p> </td>
        <td width="104" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Audit Report</font></b></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>Upon the request of the Landlord during the Term or any extension thereof or</font><b><font size=2> </font></b><font size=2>four (4) months preceding the calendar month in which the Term or any extension thereof expires, as the case may be, the Tenant shall provide to the Landlord an independent audit report, in form and substance and from qualified experts approved by the Landlord, acting reasonably, regarding Hazardous Substances on, under or about the Leased Premises. Should such report reveal that no Hazardous Substances were found on, under or about the Leased Premises that were Released by the Tenant or its employees, agents, invitees or contractors, the costs of the report shall then be borne by the Landlord and, if the report reveals the presence of any Hazardous Substances on, under or about the Leased Premises that were Released by the Tenant or its employees, agents, invitees
or contractors, the cost of the report shall then be borne by the Tenant.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="173" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>h)</font></b></p> </td>
        <td width="125" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Remedial Action</font></b></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>Upon the demand by any Governmental Authority or the Landlord requiring that removal, cleanup, remedial or corrective action be undertaken either because of the introduction, deposit, Release, emission, leak, spill or discharge of Hazardous Substances at the Leased Premises during the Term or which is otherwise caused by the Tenant&#146;s operations, occupation or use of the Leased Premises, the Tenant shall promptly at its own expense take all action necessary to carry out a full and complete removal, cleanup, remedial or corrective action. No action by the Landlord and no attempt by the Landlord to mitigate its damages under any law shall constitute a waiver or release of the Tenant&#146;s obligations hereunder and the Tenant shall indemnify and save </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 23 -</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>harmless the Landlord from all costs and expenses incurred by the Landlord pursuant to this Lease and in respect of the Hazardous Substances </font><b><font size=2>found on the Leased Premises and caused by Tenant&#146;s operations, occupation or use of the Lease Premises save and except those listed in Schedule &#147;F&#148; and those permitted to be brought into the Leased Premises by Landlord</font></b><font size=2> and from all other damages suffered by the Landlord by reason of the Tenant&#146;s actions or default hereunder. The Tenant&#146;s obligations and liabilities hereunder shall survive the expiration or sooner termination of this Lease.</font></p>

<p style=' margin-bottom:0pt; margin-top:18pt;text-align:center;'><B><font SIZE=2>ARTICLE 10</font></B></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>GENERAL PROVISIONS</font></B></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>10.1</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Net Lease</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>a)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>This Lease is an absolutely Net Lease to the Landlord. Except as otherwise provided in this Lease, the Landlord is not responsible for any costs relating to the Leased Premises or the Leased Premises&#146; use, occupancy or contents, or the business carried on in it, and the Tenant will pay all charges, impositions, costs and expenses relating to the Leased Premises except as otherwise provided in this Lease.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>b)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The Tenant will pay GST and QST on Rent and any other GST and QST imposed by the applicable legislation on the Tenant in respect of this Lease, in the manner and at the times directed by the applicable legislation. The Landlord will have all of the same remedies and right of recovery for it as it has for non-payment of Rent.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>10.2</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Landlord and Representatives to Act Reasonably and in Good Faith</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>In making a determination, calculation, estimate or allocation or in granting any consent or approval under this Lease, the Landlord will act reasonably and in good faith, subject to the specific provisions of this Lease. Each accountant, architect, engineer, surveyor or other professional Person employed or retained by the Landlord will act in accordance with the applicable principles and standards of the Person&#146;s profession.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>10.3</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Entire Agreement and General Interpretation</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>This Lease includes any Schedules and riders attached to it. There are no covenants, promises, agreements, representations, warranties, conditions or understandings, either oral or written, between the parties concerning this Lease, the Leased Premises, the Building, the Lands or any other related matter, except those that are set out in this Lease. No amendment or addition to this Lease is binding upon the Landlord or the Tenant unless it is in writing and signed by the Tenant and the Landlord. Each obligation under this Lease is a covenant. The captions, section numbers, article numbers and Table of Contents do not define, limit, construe or describe the scope or intent of the sections or articles. The use of the neuter singular pronoun to refer to the Tenant is a proper reference even though the Tenant is an individual, a partnership, a Corporation or a group of two or more
individuals, partnerships or corporations. The grammatical changes needed to make the provisions of this Lease apply in the plural sense when there is more than one tenant and to corporations, associations, partnerships or individuals, males or females, are implied. Wherever the word &#147;including&#148; is used it is intended to mean &#147;including but not limited to&#148;, and &#147;includes&#148; has a corresponding meaning. This Lease will be governed by the laws of Canada and the Province of Quebec. Time is of the essence of this Lease. The Landlord and the Tenant agree </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 24 -</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>that this Lease creates a relationship of landlord and tenant only and specifically does not create nor constitute a partnership between them.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>10.4</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Severability</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>If a part of this Lease or the application of it is unenforceable or illegal to any extent, that part: (i) is independent of and severable from the remainder of this Lease, and its unenforceability or illegality does not affect the remainder of this Lease; and (ii) continues to be enforceable to the fullest extent permitted by law. No part of this Lease will be enforced against a Person, if, or to the extent that by doing so, the Person is made to breach the law, rule, regulation or enactment.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>10.5</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Overholding</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The Lease shall automatically and without notice terminate on the last day of the Term or any extension thereof and the occupancy of the Leased Premises by the Tenant after that date shall not have the effect of extending or renewing the Lease for any period of time, whether by way of tacit renewal or otherwise. The Tenant shall in such case be deemed to be occupying the Leased Premises against the will of the Landlord, who shall have the right to avail itself of any and all recourses provided by law to evict the Tenant and claim for damages. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>Notwithstanding the foregoing, if the Tenant remains in possession of the Leased Premises after the Term, the Tenant will occupy the Leased Premises as a month to month tenant. The monthly Rent, payable in advance on the first day of each month, will be equal to the total of: (a) twice the Base Rent payable for the last month of the Term and (b) the Additional Rent payable for the last month of the Term. All of the other provisions of this Lease will apply as far as they can to a monthly tenancy, with any necessary modifications being assumed.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>10.6</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Successors</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>This Lease applies to the successors and assigns of the Landlord and the heirs, executors, administrators and permitted successors and permitted assigns of the Tenant. If there is more than one Tenant, or more than one Person comprising the Tenant, each is bound jointly and severally by this Lease.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>10.7</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Waiver</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The waiver by the Landlord or the Tenant of a default under this Lease is not a waiver of any subsequent default. The Landlord&#146;s acceptance of Rent after a default is not a waiver of any preceding default under this Lease even if the Landlord knows of the preceding default at the time of acceptance of the Rent. No obligation or term of this Lease will be considered to have been waived by the Landlord or the Tenant unless the waiver is in writing.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>10.8</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Notices</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>Any notice, demand, consent or request (a &#147;</font><b><font size=2>Notice</font></b><font size=2>&#148;) under this Lease will be in writing and will be delivered in person or sent by registered mail postage prepaid and addressed: (a) if to the Landlord, at the address specified in paragraph 1 of the Basic Terms or to such other Person at any other address that the Landlord designates by Notice; and (b) if to the Tenant, at the Leased Premises.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 25 -</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>A Notice will be considered to have been given or made on the day that it is delivered, or, if mailed, provided postal service is not, or is not expected to be interrupted, three (3) business days after the date of mailing. If there is more than one Tenant, it will suffice if the Landlord delivers or mails a Notice to only one of them. Service by electronic means (such as e-mail or facsimile) is not deemed to be valid service of Notice.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>10.9</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Registration</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>This Lease or any assignment or sublease or other document evidencing an interest of the Tenant in this Lease or the Leased Premises shall not be published at length but only by notice in accordance with Article 2999.1 of the </font><i><font size=2>Civil Code of</font></i><font size=2> </font><i><font size=2>Quebec</font></i><font size=2> and then only after the form and terms of such notice have been approved by Landlord, which approval shall not be unreasonably withheld or delayed and the whole at the cost of Tenant, including the cost of publication and providing a copy to Landlord. Should notice of this Lease be published, Tenant shall, at the expiration or termination thereof, cause same to be radiated at its expense, failing which Landlord will have the right to cause such radiation and charge Tenant with the cost of same. The Tenant agrees that within thirty (30) days after the
expiry of this Lease, the Tenant shall provide the Landlord with written proof that the notice of lease has been radiated.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>10.10</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Secured Claims</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The Tenant will ensure that no Secured Claim is registered or filed against: (a) any part of the Building or the Lands; (b) the Landlord&#146;s or any Mortgagee&#146;s interest in any part of the Building or the Lands; or (c) the Tenant&#146;s interest in the Leased Premises or any of the leasehold improvements in the Leased Premises; by any Person claiming by, through, under or against the Tenant or its contractors or subcontractors. If a Secured Claim is registered or filed and the Tenant fails to promptly discharge it after receipt of notice from the Landlord, the Landlord may discharge the Secured Claim or notice of it by paying the amount claimed to be due into court (together with whatever additional amounts are required to be paid into court to obtain its removal) or directly to the holder of the Secured Claim and the Tenant will pay to the Landlord on demand all costs (including
legal fees) incurred by the Landlord in connection with the Secured Claim, plus the Supervision  Fee.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><b><font size=2>Notwithstanding the foregoing paragraph of this Section 10.10 or any contrary provision of this Lease, it is specifically agreed and understood that Tenant may grant a movable hypothec, security or other Secured Claims on its assets located in the Leased Premises for the purposes of financing Tenant&#146;s operations in or from the Leased Premises which, for clarification and greater certainty, shall not require Landlord&#146;s consent.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>10.11</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Rules and Regulations</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The Tenant will comply with all reasonable rules and regulations passed and revised by the Landlord from time to time (&#147;</font><b><font size=2>Rules and Regulations</font></b><font size=2>&#148;). However, the Tenant will not be responsible for complying with any Rules and Regulations beyond those contained in Schedule &#147;E&#148;, unless notice of them is first given to the Tenant. No Rules and Regulations will be enforced against the Tenant in a discriminatory manner or impose any charge or payment on the Tenant which is not expressly provided for in this Lease.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 26 -</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>10.12</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Indemnifier</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The Tenant shall deliver to the Landlord, on or before the execution of this Lease by the Tenant, the Landlord&#146;s standard form of indemnity agreement substantially in the form annexed hereto as Schedule &#147;H&#148; duly executed by the Indemnifier, if any.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>10.13</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Force Majeure</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>Despite anything to the contrary, if the Landlord or the Tenant is, in good faith, prevented from doing anything required by this Lease because of Force Majeure, the doing of the thing is excused for the period of the Force Majeure and the party prevented will do what was prevented within the required period after the Force Majeure, but this does not excuse either party from payment of amounts they are required to pay at the times specified in this Lease.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>10.14</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Acceptance of Lease</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The Tenant accepts this Lease of the Leased Premises to be held by it as Tenant, subject to the terms set out in this Lease.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>10.15</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Broker</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The Tenant represents and warrants to the Landlord that it was not represented by any broker, agent or other intermediary during the negotiation of this Lease and that the Tenant shall indemnify and hold the Landlord harmless from and against any claim made by any broker, agent or other intermediary claiming to act on the Tenant&#146;s behalf.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The Landlord represents and warrants to the Tenant that it was not represented by any broker, agent or other intermediary during the negotiation of this Lease and that the Landlord shall indemnify and hold the Tenant harmless from and against any claim made by any broker, agent or other intermediary claiming to act on the Landlord&#146;s behalf.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>10.16</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Limited Recourse</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The recourse of the Tenant against the Landlord shall be limited to the Landlord&#146;s interest in the Lands and Building. The Tenant shall have no recourse to any other assets of  the Landlord.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>Notwithstanding anything else contained herein, the Tenant acknowledges, covenants and agrees:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p  style='margin-left:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>a)</font></b></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>that the Landlord named in this Lease is a nominee on behalf of Summit Real Estate Investment Trust (the &#147;</font><b><font size=2>Trust</font></b><font size=2>&#148;); and</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p  style='margin-left:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>b)</font></b></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>if and to the extent there are any obligations created by this Lease which may apply to the Trust (it being the understanding and agreement of the parties that the provisions of this paragraph are not intended to, or be deemed to create or result in any such obligations in respect of the Trust) then, in such case, any obligations created by this Lease and any liabilities arising in any manner whatsoever out of or in connection with this Lease in respect of the Trust, shall not be personally binding upon, nor shall resort be had to, nor shall recourse or satisfaction be sought from, the private property of any of:</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>i)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>the unit holders of the Trust;</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 27 -</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>ii)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>the annuitants under a plan of which a unit holder of the Trust acts as trustee or carrier; and,</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>iii)</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>the officers, trustees, employees or agents of the Trust.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>10.17</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Parking</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The Tenant shall have the right to the exclusive use of all the parking facilities located on the Lands in the manner described in Paragraph #17 of the Basic Terms.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The Landlord and any Person authorized by the Landlord shall have the right without unduly interfering with the Tenant&#146;s business to relocate or alter parking areas, driveways and access ramps from time to time as the Landlord may desire including the increase or change of the size and location thereof provided always that access to and from the Leased Premises are at all times available and further provided that Landlord may not in any circumstances reduce the size and location of any such parking areas, drive-ways and access ramps.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The Tenant specifically covenants and agrees that the Landlord shall not be responsible for any damage whatsoever which may be caused to any vehicles or contents thereof belonging to the Tenant, its employees, invitees and guests while any such vehicle is in or about the parking facilities unless caused by the fault or negligence of Landlord and those for whom Landlord it is responsible. It is expressly agreed that the Tenant&#146;s vehicle(s) is/are upon the parking facilities at the Tenant&#146;s sole risk and that the Landlord shall not be responsible for any theft, loss or damage to any such vehicles, accessories or equipment, or to any goods, merchandise, effects, or contents contained therein, nor for damage or destruction by fire in whole or in part howsoever caused unless caused by the fault or negligence of Landlord and those for whom Landlord it is responsible.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>10.18</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Confidentiality</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The Tenant shall not disclose to any Person, the financial or any other terms of this Lease, except to its professional advisers, consultants and auditors, if any, and except as required by law</font><b><font size=2>.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="217" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>10.19</font></b></p> </td>
        <td width="169" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Language Requirement</font></b></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The parties have requested that this agreement be prepared in English. Les parties ont demand&#233; que la pr&#233;sente convention soit r&#233;dig&#233;e en anglais.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 28 -</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><B><font SIZE=2>THE PARTIES HAVE SIGNED BELOW</font></B><font size=2> to indicate their agreement.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.21in;text-align:justify;'><B><font SIZE=2>SREIT (CENTRAL NO. 3) LTD.</font></B><font size=2>, represented by Summit Real Estate Limited Partnership, acting as agent and not in its personal capacity, through its sole general partner, Summit Real Estate Limited </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.21in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.21in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="540" style='border-collapse:collapse'>
    <tr >
        <td width="308" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="28" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Per:</font></p> </td>
        <td  nowrap colspan="4" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><FONT SIZE="2"><U>/s/ Carol Massoud</U> </FONT></p> </td> </tr>
    <tr >
        <td width="308" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Name:</font></p> </td>
        <td width="109" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Carol Massoud</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="308" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Title :</font></p> </td>
        <td  nowrap colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Regional Director</font></p> </td>
        <td  width="31">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="308" ></td>

        <td width="28" ></td>

        <td width="48" ></td>

        <td width="109" ></td>

        <td width="16" ></td>

        <td width="31" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.21in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.21in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="608" style='border-collapse:collapse'>
    <tr >
        <td width="308" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="28" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Per:</font></p> </td>
        <td  nowrap colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><FONT SIZE="2"><U>/s/ Kathy Harder</U> </FONT></p> </td>
        <td  width="68">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="308" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Name:</font></p> </td>
        <td width="101" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Kathy Harder</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="308" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Title:</font></p> </td>
        <td  nowrap colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Senior Vice-President Investments</font></p> </td> </tr>
    <tr>
        <td width="308" ></td>

        <td width="28" ></td>

        <td width="48" ></td>

        <td width="101" ></td>

        <td width="55" ></td>

        <td width="68" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.21in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.21in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.21in;text-align:justify;'><B><font SIZE=2>TECKN-O-LASER COMPANY</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.21in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.21in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="488" style='border-collapse:collapse'>
    <tr >
        <td width="308" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="28" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Per:</font></p> </td>
        <td  nowrap colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>/s/ Yvon L&#233;veill&#233;</font></u></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="308" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Name:</font></p> </td>
        <td  nowrap colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Yvon L&#233;veill&#233;</font></p> </td> </tr>
    <tr >
        <td width="308" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Title:</font></p> </td>
        <td  nowrap colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>President</font></p> </td>
        <td  width="29">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="308" ></td>

        <td width="28" ></td>

        <td width="48" ></td>

        <td width="73" ></td>

        <td width="1" ></td>

        <td width="29" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 29 -</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>SCHEDULE &#147;A&#148;</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>PLAN OF LEASED PREMISES</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><img src="img1.jpg"><br> </p>

<table border="0" cellspacing=0 cellpadding=0 width="144" style='margin-left:365.4pt;border-collapse:collapse'>
    <tr style=' height:35.5pt'>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:35.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=1>Landlord</font></u><u></u></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:35.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=1>Tenant</font></u><u></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>&nbsp;</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>SCHEDULE &#147;B&#148;</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>DESCRIPTION OF LANDS</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Lot number TWENTY-TWO of the official subdivision of the original lot number TWO HUNDRED NINETY-FIVE (295-22);</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:-0.5in;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(b)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Lot number SEVEN of the official subdivision of the original lot number TWO HUNDRED NINETY-SIX (296-7);</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:-0.5in;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(c)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Lot number ONE HUNDRED EIGHTY-EIGHT of the official subdivision of the original lot number TWO HUNDRED NINETY-FIVE (295-188);</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(d)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Lot number TWO HUNDRED SIXTY-TWO of the official subdivision of the original lot number TWO HUNDRED NINETY-FOUR (294-262);</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:justify;'><font size=2>All of the Official Cadastre of the Parish of Sainte-Julie, Registration Division of Verch&#232;res.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="144" style='margin-left:365.4pt;border-collapse:collapse'>
    <tr style=' height:35.5pt'>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:35.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=1>Landlord</font></u><u></u></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:35.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=1>Tenant</font></u><u></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>&nbsp;</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>SCHEDULE &#147;C&#148;</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>LANDLORD&#146;S WORK</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>The Landlord agrees to perform the required repair work to windows and exterior stucco as described in Consultants CLM report dated December&nbsp;14<sup>th</sup>,&nbsp;2004 to a maximum of One Hundred and Ten Thousand ($110,000.00) Dollars. Any additional costs associated with this work will be the responsibility of the Tenant. The Tenant will also agree to allow the Landlord access to the Leased Premises for the purpose of installing a sprinkler system at Landlord&#146;s sole cost and expense if the Landlord so chooses to at any time during the Term of the Lease. The Tenant will agree not to hinder in any way the undertaking of this installation, with the Landlord acting reasonably.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="144" style='margin-left:365.4pt;border-collapse:collapse'>
    <tr style=' height:35.5pt'>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:35.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=1>Landlord</font></u><u></u></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:35.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=1>Tenant</font></u><u></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>&nbsp;</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>SCHEDULE &#147;D&#148;</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>


<table width="600" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse; '>
    <tr style=' height:26.65pt'>
        <td width="628" valign=top style='border:solid black 3.0pt;border-color:gray; height:26.65pt'>
            <p style='margin-left:0pt;text-indent:75.75pt;text-align:left;margin-top:18pt;margin-bottom:0pt'><B><font SIZE=2>PRE-AUTHORIZED DEBIT (PAD) ENROLLMENT FORM</font></B></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Tenant Information:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="627" style='margin-left:7.65pt;border-collapse:collapse;  '>
    <tr style='height:20.25pt'>
        <td  colspan="3" valign=top style='border:solid black 1.0pt;border-color:gray; padding:0in 5.4pt 0in 5.4pt;height:20.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Tenant Name:  TECKN-O-LASER COMPANY</font></b></p> </td> </tr>
    <tr style='height:20.25pt'>
        <td  colspan="3" valign=top style='border:solid black 1.0pt;border-color:gray; border-top:none; padding:0in 5.4pt 0in 5.4pt;height:20.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Contact Person:</font></b></p> </td> </tr>
    <tr style='height:20.25pt'>
        <td  colspan="3" valign=top style='border:solid black 1.0pt;border-color:gray; border-top:none; padding:0in 5.4pt 0in 5.4pt;height:20.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Address:  2101 Nobel Street</font></b></p> </td> </tr>
    <tr style='height:20.25pt'>
        <td width="209" valign=top style='border:solid black 1.0pt;border-color:gray; border-top:none; padding:0in 5.4pt 0in 5.4pt;height:20.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>City:  Sainte-Julie</font></b></p> </td>
        <td width="209" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt;height:20.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Postal Code:  J3E 1Z8</font></b></p> </td>
        <td width="209" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt;height:20.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Telephone: 450 922-9115</font></b></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Bank Account Information:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="627" style='margin-left:7.65pt;border-collapse:collapse;  '>
    <tr style='height:20.25pt'>
        <td  colspan="3" valign=top style='border:solid black 1.0pt;border-color:gray; padding:0in 5.4pt 0in 5.4pt;height:20.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Financial Institution:</font></b></p> </td> </tr>
    <tr style='height:20.25pt'>
        <td  colspan="3" valign=top style='border:solid black 1.0pt;border-color:gray; border-top:none; padding:0in 5.4pt 0in 5.4pt;height:20.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Contact Person:</font></b></p> </td> </tr>
    <tr style='height:20.25pt'>
        <td  colspan="3" valign=top style='border:solid black 1.0pt;border-color:gray; border-top:none; padding:0in 5.4pt 0in 5.4pt;height:20.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Address:</font></b></p> </td> </tr>
    <tr style='height:20.25pt'>
        <td width="209" valign=top style='border:solid black 1.0pt;border-color:gray; border-top:none; padding:0in 5.4pt 0in 5.4pt;height:20.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>City:</font></b></p> </td>
        <td width="209" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt;height:20.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Postal Code:</font></b></p> </td>
        <td width="209" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt;height:20.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Telephone:</font></b></p> </td> </tr>
    <tr style='height:20.25pt'>
        <td width="209" valign=top style='border:solid black 1.0pt;border-color:gray; border-top:none; padding:0in 5.4pt 0in 5.4pt;height:20.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Bank # (3 characters):</font></b></p> </td>
        <td width="209" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt;height:20.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Transit # (5 characters):</font></b></p> </td>
        <td width="209" valign=top style='border-top:none;border-left: none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt;height:20.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Account #:</font></b></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><i><b><font size=2>NOTE: please enclose a blank cheque marked &#147;VOID&#148; with this form and mail to:</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><i><b><font size=2>Summit Real Estate Limited Partnership</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><i><b><font size=2>5490 Thimens, Suite 110</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><i><b><font size=2>St-Laurent, Quebec, H4R 2K9</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>_______________________________________________________________________</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>TERMS AND CONDITIONS FOR PAD SERVICE</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>The Landlord, </font><B><font SIZE=2>SREIT (CENTRAL NO. 3) LTD.</font></B><font size=2>, shall be known as SREIT or the &#147;</font><b><font size=2>Payee</font></b><font size=2>&#148;. The bank account holder(s), shall be known as &#147;</font><b><font size=2>Payor</font></b><font size=2>&#148;. The &#147;</font><b><font size=2>Processing Institution</font></b><font size=2>&#148; shall be known as the financial institution listed by the Payor.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>I/We acknowledge that this authorization is provided for the benefit of the Payee and the Processing Institution and is provided in consideration of the Processing Institution agreeing to process debits against my account in accordance with the rules of the Canadian Payments Association.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="144" style='margin-left:365.4pt;border-collapse:collapse'>
    <tr style=' height:35.5pt'>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:35.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=1>Landlord</font></u><u></u></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:35.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=1>Tenant</font></u><u></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>&nbsp;</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><FONT SIZE="2"><B>1.</B> </FONT></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Valid Signing Authority</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:justify;'><font size=2>I/We warrant and guarantee that all persons whose signatures are required to sign on this account have signed this agreement below.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2.</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Authority to Debit Account</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:justify;'><font size=2>I/We hereby authorize SREIT to draw on the Payor&#146;s account number with the Processing Institution for monthly charges specified in paragraph 5 as per the rental invoice.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>3.</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Cancellation of Authorization</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:justify;'><font size=2>The Payor may cancel this authorization at any time upon notice. I/We acknowledge that in order to revoke this authorization, I/We must provide notice of revocation to SREIT care of Summit Real Estate Limited Partnership.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>4.</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Acceptance of Delivery of Authorization</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:justify;'><font size=2>I/We acknowledge that provision and delivery of this authorization to SREIT constitutes delivery by the Payor to the Processing Institution. Any delivery of this authorization to you constitutes delivery by the Payor.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>5.</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Processing Date</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:justify;'><font size=2>The transaction will occur on the first business day of the month.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:justify;'><font size=2>Effective: __/__/__/ for the amount of $_______________.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>6.</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Account Information</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:justify;'><font size=2>The account that SREIT is authorized to draw upon is indicated on the front of this form. A specimen cheque for this account has been marked &#147;VOID&#148; and attached to this authorization. I/We undertake to inform Summit Real Estate Limited Partnership., in writing, of any change in the account information provided in this authorization prior to the next due date of the PAD.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>7.</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Validation by Processing Institution</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:justify;'><b><font size=2>Intentionally deleted.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>8.</font></b></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Contract for Goods or Services</font></b></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:justify;'><font size=2>Revocation of this authorization does not terminate any contract for goods and services that exists between that Payor and SREIT. The Payor&#146;s Authorization applies only to the method of payment and does not otherwise have any bearing on the contract for goods or services exchanged.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="144" style='margin-left:365.4pt;border-collapse:collapse'>
    <tr style=' height:35.5pt'>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:35.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=1>Landlord</font></u><u></u></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:35.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=1>Tenant</font></u><u></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>&nbsp;</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'>
<b><font size=2>9.</font></b><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size=2>Payor&#146;s Right of Dispute</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.25in;text-align:justify;'><font size=2>A Payor under the following conditions may dispute a PAD:</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(i)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the PAD was not drawn in accordance with Payor&#146;s Authorization; or</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(ii)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the authorization was revoked; or</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(iii)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>pre-notification was not received.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.27in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:justify;'><font size=2>The Payor, in order to be reimbursed, acknowledges that a declaration to the effect that either (i), (ii) or (iii) took place, must be completed and presented to the branch of the Processing Institution holding the Payor&#146;s account up to and including 10 business days after the date on which the PAD in dispute was posted to the Payor&#146;s account.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>I/We read and agree with Terms and Conditions for Pre-Authorized Debit.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="389" style='border-collapse:collapse'>
    <tr >
        <td width="240" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Authorized Signature:</font></p> </td>
        <td width="149" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Authorized Signature:</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="452" style='border-collapse:collapse'>
    <tr >
        <td width="240" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>___________________________</font></p> </td>
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>__________________________</font></p> </td> </tr>
    <tr >
        <td width="240" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>(Please print name)</font></p> </td>
        <td width="104" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>(Please print name)</font></p> </td>
        <td  width="108">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="445" style='border-collapse:collapse'>
    <tr >
        <td width="240" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Date:______________________</font></p> </td>
        <td width="205" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Date:_____________________</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="144" style='margin-left:365.4pt;border-collapse:collapse'>
    <tr style=' height:35.5pt'>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:35.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=1>Landlord</font></u><u></u></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:35.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=1>Tenant</font></u><u></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>&nbsp;</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>SCHEDULE &#147;E&#148;</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>RULES AND REGULATIONS</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="36" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The Tenant shall not use the sidewalks, driveways and parking areas surrounding the Building for any other purpose than for ingress and egress to the Leased Premises and for parking facilities. The Tenant shall not place or allow to be placed outside of the Building any waste paper, garbage or refuse or any other thing whatsoever that shall tend to make them appear unclean, untidy or filthy, and no vehicle shall be repaired outside the Building.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="36" valign=top style='padding:6.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.</font></p> </td>
        <td  valign=top style='padding:6.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The water closets and other water apparatus shall not be used for any other purpose other than those for which they were constructed, and no sweepings, rubbish, rags, ashes or other substances shall be thrown therein, and any damage resulting to them from misuse shall be borne by the Tenant by whom or by whose employee the damage was caused.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="36" valign=top style='padding:6.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.</font></p> </td>
        <td  valign=top style='padding:6.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Subject to the provisions of Section 4.16 of this Lease, if any sign, advertisement or notice is inscribed, painted or affixed by the Tenant on or to any part of the said Building without the prior written consent of the Landlord whatsoever, then the Landlord shall be at liberty to enter on said Building and pull down and take away any such sign, advertisement or notice, and the expense thereof shall be payable by the Tenant.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="36" valign=top style='padding:6.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4.</font></p> </td>
        <td  valign=top style='padding:6.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>No safes, machinery, equipment, heavy merchandise or anything liable to injure or destroy any part of the Building shall be taken into it without the consent of the Landlord in writing which shall not be unreasonably withheld, and the cost of repairing any and all damage done to the Building by installing or removing such safe or the like, or during the time it is installed or on the Leased Premises shall be paid for on demand by the Tenant who so causes it. The Tenant shall not load any floor beyond its reasonable weight carrying capacity as set forth in the municipal or other codes applicable to the Building.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="36" valign=top style='padding:6.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>5.</font></p> </td>
        <td  valign=top style='padding:6.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The Tenant shall not install or erect any receiving or transmitting antennas, dish or similar devices on the roof or any exterior walls of the Building or on the Lands without obtaining the prior written consent of the Landlord which shall not be unreasonably withheld or delayed.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="36" valign=top style='padding:6.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>6.</font></p> </td>
        <td  valign=top style='padding:6.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>No animals shall be kept in or about the Leased Premises.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="36" valign=top style='padding:6.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>7.</font></p> </td>
        <td  valign=top style='padding:6.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The Tenant shall maintain the Leased Premises free of insects, rodents, vermin and other pests.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="36" valign=top style='padding:6.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>8.</font></p> </td>
        <td  valign=top style='padding:6.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Intentionally deleted</font></b><font size=2>.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="36" valign=top style='padding:6.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>9.</font></p> </td>
        <td  valign=top style='padding:6.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>No one shall use the Leased Premises for sleeping apartments or residential purposes.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="36" valign=top style='padding:6.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>10.</font></p> </td>
        <td  valign=top style='padding:6.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The Tenant must observe strict care not to allow the windows or doors of the Leased Premises to remain open so as to admit rain or snow, or so as to interfere with the heating of the Building. If the Tenant neglects this rule, it will be responsible for any damage caused to the property of the Landlord. The Tenant, when closing offices for business, day or evening, shall close all windows and lock all doors.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="36" valign=top style='padding:6.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>11.</font></p> </td>
        <td  valign=top style='padding:6.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The Tenant shall give to the Landlord prompt written notice of any accident or any defect in the water pipes, gas pipes, heating apparatus, or electric light, or other wires in any part of said Building.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="36" valign=top style='padding:6.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>12.</font></p> </td>
        <td  valign=top style='padding:6.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Nothing shall be placed on the outside of windows or projections of the Leased Premises. No air-conditioning equipment shall be placed at the windows of the Leased Premises without the consent in writing of the Landlord which shall not be unreasonably withheld.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>1</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="144" style='margin-left:365.4pt;border-collapse:collapse'>
    <tr style=' height:35.5pt'>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:35.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=1>Landlord</font></u><u></u></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:35.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=1>Tenant</font></u><u></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>&nbsp;</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="36" valign=top style='padding:6.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>13.</font></p> </td>
        <td  valign=top style='padding:6.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>All glass, locks and trimmings in or upon the doors or windows of the Leased Premises shall be kept whole and whenever any part thereof shall become broken, the same shall be immediately replaced or repaired under the direction and to the satisfaction of the Landlord, and such replacements and repairs shall be paid for by the Tenant.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="36" valign=top style='padding:6.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>14.</font></p> </td>
        <td  valign=top style='padding:6.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>No heavy equipment of any kind shall be moved within the Building without skids being placed under the same, and without the consent of the Landlord in writing which shall not be unreasonably withheld.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="36" valign=top style='padding:6.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>15.</font></p> </td>
        <td  valign=top style='padding:6.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>No person may enter upon the roof of the Building without prior authorization of the Landlord  and any person entering upon the roof does so at their own risk.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="36" valign=top style='padding:6.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>16.</font></p> </td>
        <td  valign=top style='padding:6.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The Tenant shall not install cooking apparatus except in a portion of the Building designated as kitchen areas.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="36" valign=top style='padding:6.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>17.</font></p> </td>
        <td  valign=top style='padding:6.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The Landlord shall have the right to make such other and further reasonable rules and regulations and to alter, amend or cancel all rules and regulations as in its judgment may from time to time be needed for the safety, care and cleanliness of the Building and for the preservation of good order therein and the same shall be kept and observed by the Tenant, and its employees.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="36" valign=top style='padding:6.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>18.</font></p> </td>
        <td  valign=top style='padding:6.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>There shall be no smoking permitted in the Building at any time except in the area specifically designated and reserved as a smoking area  in the Building. </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>2</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="144" style='margin-left:365.4pt;border-collapse:collapse'>
    <tr style=' height:35.5pt'>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:35.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=1>Landlord</font></u><u></u></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:35.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=1>Tenant</font></u><u></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>&nbsp;</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:6pt;text-align:center;'><b><font size=2>SCHEDULE &#147;F&#148;</font></b></p>

<p style=' margin-bottom:0pt; margin-top:6pt;text-align:center;'><b><font size=2>TENANT&#146;S LIST OF HAZARDOUS SUBSTANCES</font></b></p>

<p style=' margin-bottom:0pt; margin-top:6pt;text-align:center;'><b><font size=2>(If applicable)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:6pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.25in;text-align:left;'><font size=2>A fuel tank having a 500 gallons capacity and currently containing colored diesel fuel</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.25in;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="216" style='border-collapse:collapse'>
    <tr >
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="120" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Serial number&nbsp;:</font></p> </td>
        <td width="72" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>ED9332</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.25in;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="216" style='border-collapse:collapse'>
    <tr >
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="120" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Make&nbsp;:</font></p> </td>
        <td width="72" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>unknown</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.25in;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="541" style='border-collapse:collapse'>
    <tr >
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="120" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Location&nbsp;:</font></p> </td>
        <td width="397" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>in the trailer attached to the building next to the power generator</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:6pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="144" style='margin-left:365.4pt;border-collapse:collapse'>
    <tr style=' height:35.5pt'>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:35.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=1>Landlord</font></u><u></u></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:35.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=1>Tenant</font></u><u></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>&nbsp;</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:0pt; margin-top:6pt;text-align:center;'><b><font size=2>SCHEDULE &#147;G&#148;</font></b></p>

<p style=' margin-bottom:0pt; margin-top:6pt;text-align:center;'><b><font size=2>TENANT&#146;S LEASEHOLD IMPROVEMENTS</font></b></p>

<p style=' margin-bottom:0pt; margin-top:6pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:6pt;text-align:center;'><B><font SIZE=2>NOT APPLICABLE</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="144" style='margin-left:365.4pt;border-collapse:collapse'>
    <tr style=' height:35.5pt'>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:35.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=1>Landlord</font></u><u></u></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:35.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=1>Tenant</font></u><u></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>&nbsp;</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'>
<b><font size=2>SCHEDULE &#147;H&#148;</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>INDEMNITY AGREEMENT</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><B><font SIZE=2>THIS AGREEMENT</font></B><font size=2> is dated _________________, 2005.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font SIZE=2>B E T W E E N:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>SREIT (CENTRAL NO. 3) LTD. </font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>represented by Summit Real Estate Limited Partnership,</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>acting as agent and not in its personal capacity</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>through its sole general partner, Summit Real Estate Limited</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(the &#147;</font><b><font size=2>Landlord</font></b><font size=2>&#148;)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- and &#150;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>ADSERO CORP.</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(the &#147;</font><b><font size=2>Indemnifier</font></b><font size=2>&#148;)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>In order to induce the Landlord to sign the lease between the Landlord and </font><B><font SIZE=2>TECKN-O-LASER COMPANY</font></B><font size=2> as Tenant, dated _________________, 2005 (the &#147;</font><b><font size=2>Lease</font></b><font size=2>&#148;), the Indemnifier agrees with the Landlord that:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Throughout the Term of the Lease and any extension or renewal, the Indemnifier will: (i) guarantee the prompt payment of all Rent and any other amounts payable by the Tenant under the Lease, whether to the Landlord or anyone else; (ii) guarantee the prompt performance of each and every obligation of the Tenant under the Lease; and (iii) indemnify and protect the Landlord from any losses or costs incurred by the Landlord if the Tenant fails to pay the Rent or other amounts or to perform any of its obligations under the Lease.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:-1in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Even if there is an Early Termination, the Indemnifier will remain obligated under this Agreement throughout the Term and any renewals or extensions as though the Early Termination had not occurred. An &#147;Early Termination&#148; means a disaffirmance, disclaimer, repudiation, rejection or termination of the Lease (as a result of court proceedings or otherwise), or a surrender of the Lease which the Landlord did not accept in writing, which occurs prior to the originally specified expiry date of the Term or renewal or extension. If there is an Early Termination, the Indemnifier will, at the Landlord&#146;s option, become the Landlord&#146;s tenant on the terms of the Lease.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>This indemnity is absolute and unconditional. The Indemnifier&#146;s obligations under this Agreement will not be affected by (a) any modifications to the Tenant&#146;s obligations under the Lease which the Landlord allows to the Tenant; (b) the fact that the Landlord does not enforce any of the terms of the Lease; (c) any assignment of the Lease by the Tenant or by any trustee, receiver or liquidator; (d) any consent which the Landlord gives to any Transfer (as defined in the Lease); (e) any amendment to the Lease or any waiver by the Tenant of its rights under the Lease; or (f) the expiry of the Term.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="144" style='margin-left:365.4pt;border-collapse:collapse'>
    <tr style=' height:35.5pt'>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:35.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=1>Landlord</font></u><u></u></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:35.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=1>Tenant</font></u><u></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>&nbsp;</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The Landlord is not required to notify the Indemnifier that the Landlord has accepted this Agreement or that the Tenant has failed to perform any of its obligations under the Lease. Nevertheless, if the Landlord wishes to send any notice to the Indemnifier, it must deliver it or mail it by prepaid registered mail addressed to the Indemnifier at the address set out under Paragraph #13 of the Basic Terms and at the Leased Premises. Any notice will be considered to have been given on the day it was delivered, or if mailed, three (3) business days after the date it was mailed. The Indemnifier may notify the Landlord in writing of a substitute address for the above address. If two or more parties are named as Indemnifier, the Landlord may give any notice to be given to the Indemnifier to only one of the parties, and in doing so both of them will be considered to
have been notified.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>5.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>If there is a default under the Lease or under this Agreement, the Landlord will not be required to: (a) proceed against or pursue anything against the Tenant first; (b) proceed against any security of the Tenant held by the Landlord; or (c) pursue any other remedy whatsoever. The Landlord has the right to enforce this Agreement even if it accepts additional security from the Tenant and even if it or anyone else releases or discharges the Tenant or if the Tenant is released or discharged by operation of any law.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>6.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The Indemnifier&#146;s obligations under this Agreement will not be affected by the release or discharge of the Tenant (&#147;</font><b><font size=2>Release</font></b><font size=2>&#148;) in any receivership, bankruptcy, winding-up or other creditors&#146; proceedings. The Indemnifier&#146;s obligations will continue to apply to the periods before and after the Release as if the Release had not occurred. The Indemnifier&#146;s obligations will not be affected by any repossession of the Leased Premises by the Landlord, except that if the Landlord re-lets the Leased Premises then the payments received by the Landlord (after deducting all reasonable costs and expenses of repossessing and reletting the Leased Premises) will be credited by the Landlord against the Indemnifier&#146;s obligations under this Agreement and this Agreement will cease to apply as and from
the date on which the Leased Premises are re-let. </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>7.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Even though the Landlord may have already taken action against the Indemnifier under this Agreement because of a default under the Lease, and whether or not that action has succeeded or been completed, the Landlord may take further action against the Indemnifier under this Agreement if there is any further default under the Lease.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>8.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>This Agreement can only be modified in writing, signed by both the Indemnifier and the Landlord.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>9.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>If two or more parties are named as Indemnifier, each party is solidarily responsible for the obligations of the Indemnifier.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>10.</font></p> </td>
        <td  valign=top style='padding:0in 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>All of the terms of this Agreement apply to the Indemnifier and its successors and assigns, and may be enforced by the Landlord, its successors and assigns, and any holder of any charge over all or any part of the lands on which the Leased Premises are located.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>11.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The expressions &#147;Landlord&#148;, &#147;Tenant&#148;, &#147;Rent&#148;, &#147;Term&#148;, and &#147;Leased Premises&#148; and other capitalized words used in this Agreement have the same meaning, respectively, as they are given in the Lease.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="144" style='margin-left:365.4pt;border-collapse:collapse'>
    <tr style=' height:35.5pt'>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:35.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=1>Landlord</font></u><u></u></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:35.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=1>Tenant</font></u><u></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>&nbsp;</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>12.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>This Agreement will be governed by the laws of the Province of Quebec. </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>13.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The parties have requested that this Agreement be prepared in English. Les parties ont demand&#233; que la pr&#233;sente convention soit r&#233;dig&#233;e en anglais.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>THE LANDLORD AND INDEMNIFIER HAVE SIGNED BELOW, to confirm the terms of this Agreement.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:justify;'><B><font SIZE=2>SREIT (CENTRAL NO. 3) LTD.</font></B><font size=2>, represented by Summit Real Estate Limited Partnership, acting as agent and not in its personal capacity, through its sole general partner, Summit Real Estate Limited, </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="596" style='border-collapse:collapse'>
    <tr >
        <td width="336" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Per:</font></p> </td>
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>__________________________</font></p> </td> </tr>
    <tr >
        <td width="336" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Name:</font></p> </td>
        <td width="109" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Carol Massoud</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="336" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Title :</font></p> </td>
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Regional Director</font></p> </td>
        <td  width="87">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="336" ></td>

        <td width="48" ></td>

        <td width="109" ></td>

        <td width="16" ></td>

        <td width="87" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="620" style='border-collapse:collapse'>
    <tr >
        <td width="336" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Per:</font></p> </td>
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>__________________________</font></p> </td>
        <td  width="24">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="336" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Name:</font></p> </td>
        <td width="101" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Kathy Harder</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="336" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Title:</font></p> </td>
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Senior Vice-President &#150; Investments</font></p> </td> </tr>
    <tr>
        <td width="336" ></td>

        <td width="48" ></td>

        <td width="101" ></td>

        <td width="111" ></td>

        <td width="24" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:justify;'><B><font SIZE=2>ADSERO CORP.</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="600" style='border-collapse:collapse'>
    <tr >
        <td width="336" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Per:</font></p> </td>
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>__________________________</font></p> </td> </tr>
    <tr >
        <td width="336" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Name:</font></p> </td>
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Yvon L&#233;veill&#233;</font></p> </td>
        <td  width="17">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="336" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Title:</font></p> </td>
        <td width="75" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>President</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="336" ></td>

        <td width="48" ></td>

        <td width="75" ></td>

        <td width="29" ></td>

        <td width="17" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="144" style='margin-left:365.4pt;border-collapse:collapse'>
    <tr style=' height:35.5pt'>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:35.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=1>Landlord</font></u><u></u></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:35.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=1>Tenant</font></u><u></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>&nbsp;</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><u><b><font size=2>SCHEDULE &#147;I&#148;</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="581" style='border-collapse:collapse'>
    <tr >
        <td width="61" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="520" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><U><B><font SIZE=2>AGREEMENT REGARDING LETTER OF CREDIT AND OTHER SECURITY</font></B></U></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Reference is made to the Lease dated ______________________(the &#147;</font><b><font size=2>Lease</font></b><font size=2>&#148;) between </font><B><font SIZE=2>TECKN-O-LASER</font></B><font size=2>  </font><B><font SIZE=2>COMPANY</font></B><font size=2> (the &#147;</font><b><font size=2>Tenant</font></b><font size=2>&#148;) and </font><b><font size=2>SREIT (Central No. 3) Ltd.</font></b><font size=2> (the &#147;</font><b><font size=2>Landlord&#148;</font></b><font size=2>) for the Tenant&#146;s premises located at 2101 Nobel Street, Sainte-Julie, Quebec (the &#147;</font><b><font size=2>Building</font></b><font size=2>&#148;). The parties have entered in the following covenants and agreements:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The Tenant shall continue to provide to the Landlord, on an uninterrupted and continuing basis for the balance of the Term of the Lease and any renewals or extensions thereof, plus thirty (30) days, with an irrevocable letter of credit or irrevocable letters of credit issued by a Class A Canadian chartered bank, expiring at the end of the balance of time mentioned above and in the form and of the substance set forth in Appendix 1 hereto and initialed by the parties to this agreement for the purpose of identification, all of the terms and conditions of which are incorporated in this agreement by reference as if recited out at length herein. The letter of credit or letters of credit will serve:</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>to guarantee, up to the amount of  </font><b><font size=2>twenty-five thousand dollars ($25,000.00)</font></b><font size=2>, the due and prompt payment and performance of each and every obligation, liability, condition and agreement to which the Tenant is or may be bound by the terms of the Lease or this agreement (including all extensions or renewals thereof), or as a result thereof, as the Lease or this agreement may be amended from time to time, (including, without limitation, the prompt payment of Rent which may become due pursuant thereto); and</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:-1in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(b)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>to indemnify the Landlord, up to the same amount, for any and all damages, costs and losses (including, without limitation, loss of Rent) which may be suffered by the Landlord as a consequence of the termination, resiliation, disavowal, repudiation or disclaimer of the Lease or this agreement, or both, by whomsoever.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>In the event that the Tenant does not replace any letter of credit furnished to the Landlord as contemplated in this agreement at the latest thirty (30) days prior to its expiration date, the Landlord shall be entitled to draw on such letter of credit as well as all other letters of credit held by the Landlord, for the full amounts thereof, whether or not the Tenant is otherwise in default in the performance of its obligations under or in virtue of the Lease, and to retain all amounts received by the Landlord from the issuing banks as a result of such draws (&#147;</font><b><font size=2>Proceeds</font></b><font size=2>&#148;) for the same purposes, with the necessary adaptations, as the letters of credit drawn upon, until such time as the letters of credit have been replaced with new letters of credit affording the Landlord the full security to which it is
entitled under this agreement. Upon such replacement, and provided that the Tenant is not otherwise in default in the performance of such obligations, any portion of the Proceeds still held by the Landlord shall be returned to the Tenant.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The furnishing of such letter of credit or letters of credit or the holding of any Proceeds as contemplated in this agreement shall not relieve the Tenant from the payment of Rent or any other charges for which the Tenant is liable under or in virtue of the Lease and shall not in any way relieve the Tenant from the faithful and punctual performance of all covenants and conditions contained in or entered into in virtue of the Lease or this agreement. If the Tenant is in default as aforesaid, it shall be entirely in the Landlord&#146;s discretion as to whether the Landlord shall draw under such letter of </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="144" style='margin-left:365.4pt;border-collapse:collapse'>
    <tr style=' height:35.5pt'>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:35.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=1>Landlord</font></u><u></u></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:35.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=1>Tenant</font></u><u></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>&nbsp;</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>credit or letters of credit or compensate and set-off all or any part of the Proceeds held by the Landlord as contemplated by paragraph 5 of this agreement, or whether the Landlord shall exercise whatever other rights, remedies and recourses the Landlord may have. In the event that the Landlord draws under any such letter of credit or appropriates all or any part of the Proceeds, the Tenant shall remit to the Landlord a replacement letter of credit or supplementary letter of credit sufficient to restore to the Landlord the full security to be afforded to the Landlord as contemplated in this agreement within five (5) business days of the Landlord&#146;s written demand therefore, the whole without prejudice to such other rights, remedies and recourses as may avail to the Landlord in the circumstances.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The letter of credit or letters of credit and any Proceeds held by the Landlord will be returned to the Tenant when thirty (30) days have elapsed following the expiration of the Lease (including the time of any renewals or extensions thereof), provided that the premises contemplated in the Lease have been vacated and returned to the Landlord on a due and timely basis in the condition in which they are required by the Lease to be maintained and provided that the Tenant will then have complied in all respects with all terms, covenants and conditions to which it has bound itself under the Lease or under this agreement.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>5.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>To further secure the Landlord to the full extent of the full security to which it is entitled under this agreement, the Tenant hereby grants to the Landlord a security interest in and hypothecates in favor of the Landlord whatever claims the Tenant now has or will ever have against the Landlord for or to the Proceeds under or in virtue of paragraph 4 of this agreement or otherwise (collectively &#147;</font><b><font size=2>Claims</font></b><font size=2>&#148;). If the Tenant is in default in the performance of any of the covenants and conditions contained in or entered into in virtue of the Lease or this agreement, or if any of the Tenant&#146;s obligations under this agreement have become enforceable, the Landlord will have the right, as hypothecary creditor, to compensate and set-off the Claims against any and all amounts then owing by the Tenant to the
Landlord, the whole without the necessity of demand or notice (other than as may be required by law, to the Tenant or to any other party). In such event, the Claims will be deemed to have been paid, cancelled and discharged to the extent of the amounts so compensated and set-off, and the Tenant will cease to have any interest whatsoever in the Claims to such extent.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>6.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Any Proceeds held by the Landlord as contemplated in this agreement shall not be governed by the provisions of Articles 2280 and following of the Civil Code of Qu&#233;bec and shall not be construed as being the property of the Tenant but as belonging to the Landlord.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>7.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The Landlord shall have the right to transfer the benefit of any letter or letters of credit and any Proceeds contemplated in this agreement to any purchaser of the Building in which the Leased Premises are situated, in which event the Landlord shall be and hereby is entirely released and relieved of all the Landlord&#146;s covenants and obligations in respect of such letter or letters of credit and such Proceeds and as well as those contained in this agreement, provided that such purchaser stipulates in favour of the Tenant to assume and carry out such covenants and obligations.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>8.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Without limiting the generality of any other provision of this agreement or of any letter of credit issued pursuant hereto, the security contemplated in this agreement will not be affected or impaired by the Tenant&#146;s bankruptcy, insolvency or winding-up, nor by any termination, resiliation, disavowal, repudiation or disclaimer of the Lease or this agreement, or both, by whomsoever, or any other action taken by any trustee, liquidator, referee or other officer appointed by any court or other body of competent jurisdiction under any bankruptcy, insolvency or winding-up legislation in force from time to time, nor by the Landlord&#146;s failure to delay or proceed to litigation or to seek a remedy for any default of the Tenant, any guarantor or any other person, nor by any liberation or discharge </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="144" style='margin-left:365.4pt;border-collapse:collapse'>
    <tr style=' height:35.5pt'>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:35.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=1>Landlord</font></u><u></u></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:35.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=1>Tenant</font></u><u></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>&nbsp;</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>from bankruptcy or otherwise of any such trustee, liquidator, referee or other officer, nor by any release or other forgiveness in favor of whomsoever, nor by any extinction of any of the obligations, liabilities, agreements or conditions secured by any such letter of credit or deposit, nor by any other act, omission or event whatsoever which might lessen, affect or discharge a surety or person obliged to indemnify another.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>9.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Any security to be provided to the Landlord as contemplated in this agreement shall be in addition to and not in replacement of any other security heretofore furnished to the Landlord and any further and additional security furnished to the Landlord from time to time.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>10.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The parties have requested that this agreement be prepared in English. Les parties ont demand&#233; que la pr&#233;sente convention soit r&#233;dig&#233;e en anglais.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Montreal, this __________ day of ______________, 2005</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><B><font SIZE=2>SREIT (CENTRAL NO. 3) LTD.</font></B><font size=2>, represented by</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Summit Real Estate Limited Partnership,</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>acting as agent and not in its personal capacity</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>through its sole general partner, Summit Real Estate Limited</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&#147;Landlord&#148;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="247" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>per:</font></p> </td>
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>_________________________</font></p> </td> </tr>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="107" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Carol Massoud</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Regional Director</font></p> </td>
        <td  width="76">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="48" ></td>

        <td width="107" ></td>

        <td width="16" ></td>

        <td width="76" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="267" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>per:</font></p> </td>
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>________________________</font></p> </td>
        <td  width="27">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Kathy Harder</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Senior Vice-President Investments</font></p> </td> </tr>
    <tr>
        <td width="48" ></td>

        <td width="99" ></td>

        <td width="93" ></td>

        <td width="27" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Accepted and agreed on the ________ day of ______________, 2005</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><B><font SIZE=2>TECKN-O-LASER COMPANY</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&#147;Tenant&#148;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="240" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>per:</font></p> </td>
        <td width="192" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>________________________</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="144" style='margin-left:365.4pt;border-collapse:collapse'>
    <tr style=' height:35.5pt'>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:35.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=1>Landlord</font></u><u></u></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:35.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=1>Tenant</font></u><u></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>&nbsp;</font></p>

<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>



<table border="0" cellspacing=0 cellpadding=0 width="377" style='border-collapse:collapse'>
    <tr >
        <td width="268" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="109" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><U><B><font SIZE=2>APPENDIX  1</font></B></U></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>_________________, 20___</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Dear Sirs:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Pursuant to the request of our customer </font><b><font size=2>_______________</font></b><font size=2> (the &#147;</font><b><font size=2>Customer</font></b><font size=2>&#148;), we, the undersigned, (&#147;</font><b><font size=2>this Branch</font></b><font size=2>&#148;) hereby establish an irrevocable Letter of Credit in your favour in the total amount of </font><b><font size=2>___________</font></b><font size=2>.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>We authorize you to draw on this Branch under this Letter of Credit in the form of a written demand for payment, which demand we shall honour without enquiring whether you have the right as between you and the Customer to make such demand and without acknowledging any claim or instructions of the Customer.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Provided, however, that you are to deliver to us at the above address at such time as a written demand for payment is made by you upon us, the original copy of this Letter of Credit and a certificate confirming that the Customer is in default under the provisions of the lease between you and the Customer and that the monies drawn by you are due and payable to you in accordance with such lease.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Partial and multiple drawings are permitted.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>This Letter of Credit is issued subject to Uniform Customs and Practice for Documentary Credits, 1993 Revision, I.C.C. Publication No. 500.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>A written demand for payment and certificate as described above must be presented at this Branch before the end of banking business on the &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;day of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , at which time this Letter of Credit will expire.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="144" style='margin-left:365.4pt;border-collapse:collapse'>
    <tr style=' height:35.5pt'>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:35.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=1>Landlord</font></u><u></u></p> </td>
        <td width="72" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:35.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=1>Tenant</font></u><u></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>&nbsp;</font></p>

<HR noshade align="center" width="100%" size="2">

</div>
</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>14
<FILENAME>img1.jpg
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 img1.jpg
M_]C_X``02D9)1@`!`0$`8`!@``#_VP!#``H'!P@'!@H("`@+"@H+#A@0#@T-
M#AT5%A$8(Q\E)"(?(B$F*S<O)BDT*2$B,$$Q-#D[/CX^)2Y$24,\2#<]/CO_
MVP!#`0H+"PX-#AP0$!P[*"(H.SL[.SL[.SL[.SL[.SL[.SL[.SL[.SL[.SL[
M.SL[.SL[.SL[.SL[.SL[.SL[.SL[.SO_P``1"`+H`B@#`2(``A$!`Q$!_\0`
M'P```04!`0$!`0$```````````$"`P0%!@<("0H+_\0`M1```@$#`P($`P4%
M!`0```%]`0(#``01!1(A,4$&$U%A!R)Q%#*!D:$((T*QP152T?`D,V)R@@D*
M%A<8&1HE)B<H*2HT-38W.#DZ0T1%1D=(24I35%565UA96F-D969G:&EJ<W1U
M=G=X>7J#A(6&AXB)BI*3E)66EYB9FJ*CI*6FIZBIJK*SM+6VM[BYNL+#Q,7&
MQ\C)RM+3U-76U]C9VN'BX^3EYN?HZ>KQ\O/T]?;W^/GZ_\0`'P$``P$!`0$!
M`0$!`0````````$"`P0%!@<("0H+_\0`M1$``@$"!`0#!`<%!`0``0)W``$"
M`Q$$!2$Q!A)!40=A<1,B,H$(%$*1H;'!"2,S4O`58G+1"A8D-.$E\1<8&1HF
M)R@I*C4V-S@Y.D-$149'2$E*4U155E=865IC9&5F9VAI:G-T=79W>'EZ@H.$
MA8:'B(F*DI.4E9:7F)F:HJ.DI::GJ*FJLK.TM;:WN+FZPL/$Q<;'R,G*TM/4
MU=;7V-G:XN/DY>;GZ.GJ\O/T]?;W^/GZ_]H`#`,!``(1`Q$`/P#V6BBB@`HH
MHH`****`"BBB@`HHHH`****`"C%%%`!1110`F!2T44`)@>E(40XRBG'M3J*`
M&&&(]8D/U44AMX"<F&,GW45)10!$;:`@`P1D#H-@H^RV^,>1%@?[`J6B@"$V
M=J>MM$?^`"D-E:'K:P_]^Q4]%`%9M-L'&&L;9A[Q+_A3/['TO_H&VG_?A?\`
M"KE%`%(Z+I1ZZ99G/K;I_A3?[#T?.?[*LL^OV=/\*OT4`9[:!HK?>TBP/UMD
M_P`*:?#FA$8.BZ?_`.`J?X5I44`9O_"-Z&`0-'LAGT@7_"C_`(1W1L8_LRVQ
MZ>6*TJ*`,S_A&]$_Z!=K_P!^Q1_PC>B_]`NV_P"_8K3HH`S?^$<T7_H&6W_?
M`H_X1S1?^@7;?]^Q6E10!G#P]HXZ:=;C`QPE+_8.E8Q]@A_[YK0HH`SQH6E@
MY%E&/SI?[#TP#`LH_P!:OT4`4!H>F`8%JH^C,/ZT?V)I^<^0<_\`71O\:OT4
M`4/[$T[_`)X-_P!_7_QH_L/3A_RP;_OZ_P#C5^B@"A_8>G?\\&_[^O\`XTG]
MAZ=C'D-C_KJ_^-:%%`&?_8>G?\\&_P"_K_XTO]AZ?_SQ?_O\_P#C5^B@#._L
M'3O^>,G_`'_D_P#BJ/[!T_.1',/^WF3_`.*K1HH`S?[!L/\`IY_\"I/_`(JD
M_L"RSD/>#Z7DO_Q5:=%`&4?#UKG(N]14^U_+_P#%4?\`"/6W>\U(_P#;_+_\
M56K10!F#0;4#_CXOS];V4_\`LU*-!M`<B:]S_P!?DO\`\56E10!F_P!@VN<^
M???^!DO_`,52'0;4G_CYO_PO9?\`XJM.B@#,70;5?^7B^.?6]E/_`+-2_P!A
M6G_/:]_\#)?_`(JM*B@#._L.UQCSKW_P,D_^*I/[!M"<^=>_^!DO_P`56E10
M!F_V#:#_`):WG_@9+_\`%4G]@69',MY_X&2__%5IT4`9O]@V6,;KH^YNY?\`
MXJFG1++=L%S>*W7:+V4'_P!"K4K.UFVE>S>>SB)O$`$;+PV,C(_+-`$9\/6Y
M.1>ZF#[7\O\`\515VQ\S[''YV[?SG=G/7WHH`L4444`%%%%`!112%@.I`_&@
M!:*9YL?_`#T7\Z<K*PRK`_0T`+144UQ%;A3*Q4,<#@G^55;'58;NXF@WJ)$<
MA%YRRX'/ZT`7Z**9YL?_`#T3_OH4`/HIGFQ_\]%_[Z%'FQ_\]%_[Z%`#Z*9Y
ML?\`ST7\Q2B2,D`.I)Z<]:`'4444`%%%%`!1110`4444`%%%%`!1110`4444
M`%%%%`!1110`4444`%%%%`!1110`4444`%%%%`!1110`4444`%%%%`!1110`
M4444`%%%%`!1110`4444`%%%%`!1110`4444`%9^JR>7Y'_$Q6R&\Y+8^?@\
M#/IUQ6A6-XCG>WBMGCDA23S#L$L>[<<=%XZT`7-)N);FRWS2)*X=@712%89X
MQGVQ13-");2HR5VDNY([@[SG/OZ^]%`&A2,NY2N2,C&1U%+10!G2:/OQC4K]
M/]V;_P"M49T,GKJE^WLTH(_E6K10!D-H(/\`R\9]W4D_SI5T1E&!/$<=,P9_
MF:UJ*`,T:;(HQ_HDG^];@?R-)'I+>>)FF\@C^"U&P'Z^M:=%`&;>V=TEJWV&
M69YCPH>;`'O6?I5I(':0K<F9I#'/,LJ\,.OOBNBIJHJ9VJ%R<G`ZF@"A/I;7
M$6TWMRN#T9LJ?J.XIHTZ51C[-IYQT/E&M.B@#-%A+_S[:?\`]^S1]@F'2VT_
M_OV:TJ*`,W[#-_S[:?C_`*YFH+?198-3%YMM",YV^6<IQ_`>U;-%`!1110`4
M444`%%%%`!1110`4444`%%%%`!1110`4444`%%%%`!1110`4444`%%%%`!11
M10`4444`%%%%`!1110`4444`%%%%`!1110`4444`%%%%`!1110`4444`%%%%
M`!1110`51U2[:TB1ELFNLL>`.F!D=NIZ"KU5-1AL7@$U^BF.`[PS9^4],\?6
M@!]A*L]HLBV[6X).8V&"#GG]:*DMQ$($\DYC(RIR3Q^-%`$E%%%`!1110`44
M44`%%%%`!1110`4444`%%%%`!1110`4444`%%%%`!1110`4444`1S+*RJ(75
M#N!)*YR.XJ2BB@`IJNK%@K`E3@X/0U1OM1\MEBMRKN9%1\<D9[`=S_(<U;MK
M:&TB\J!-JY)/<DGJ2>YH`EHHHH`***K:B[QZ=</&SJXC)!C7+`^PH`LT5S^A
MZG<W=^\<UTDJE6(VCAL'''ICH<]>M=!0`4444`%%%%`!1110`4444`%%%%`"
M`@]#2T44`%%%%`!1110`4444`%%%%`!1110`4444`%%%%`!1110`4444`%%%
M%`!5359K6#39Y;U"]NJYD4+DD?2K=9/B,J-+(*R[BP"M%&7*^O3H,9&:`+]E
M-!/:(]M_J0-J_AQ_2BJVA@KI$*DMQN`W*5.-QQU]OSHH`T****`"BBB@`HHH
MH`****`"BBB@`HHHH`****`"BBB@`HHHH`****`"BD9U7EF`[\FEZT`%%%%`
M!6=J%^%$MM#*8Y54;I-N0N3P!ZL>PJ+5=>L["X6Q,X6YD7.!R4'K[GT'>H]$
M6'484OU>22*-F2%)0005)5G8'G<2#]!0!<L;`12&ZE7$S#`7.1&._P")[FKU
M%%`!1110`5%=6ZW5K+;NS*LBE2RG!&?0U+574Y/*TRYDV(^V,G:YPK<=":`*
M6F6:QW<C0-)'';LT+1L!B0X4[QZ?2M>N:\,J8[F5O+(CFXB;S6(4*!P5/0\_
M6NEH`****`"BBB@`HHHH`****`"BBB@`HHHH`****`"BBB@`HHHH`****`"B
MBB@`HHHH`****`"BBB@`HHHH`****`"J6JVL]Y:>1#Y6&8;Q)GI[$=ZNUF>(
M%D?2)D24Q!QM+J2&7/0C'Z^U`%G3K9K2R2!\;E))P<]2314>C,S:9$6E,K98
M%B<Y.X]/;T]J*`+U%%%`!1110`4444`%%%%`!1110`4444`%%%%`!1110`44
M5#//%&5B>=(I)<K'N(R3CMGJ:`*FK:NFF6[NL9FD4#"`XR3V]ORJU970O;1+
MA49`XZ,/\Y'O659Z*_GSB^W.WR[+A'/[Q>X;//)R2O3GBML`*``,`<`4`8OB
M6WGGB@\@6NX%US/,T9P5QA2.N>];,8Q&H]`*R?$AM&L5AO+.YN49MP^S\%"O
M.<@Y_*M9/N+CTH`=69K&J268CM+-%EO[G(A1C\J`=7;T4?KTJ75M4CTNU$FP
MRSR-L@@4X:5ST`_J>PK)TK39;B>6:XE\V25@;N=3Q(1TAC](U[^OYT`+I^@V
MUW`PN1]IMY'\R1Y1\UU+_?/HH_A`J?[-JFB9-F6U*R')MY&_?1_[K'[WT//O
M6V````,`=!22*[1,L;['((5L9VGUQWH`K:?J=IJ<1>VER5.'C8;7C/HRGD&K
M=<3?:3J%M>275S=2B9BJP74?+L^.?0(O'0G;ZUJ67B&XAMUFU&$RVAZ7]NA*
M?\#7J/\`>&5/M0!T5%1PSQ7,*S02)+&XRKH<@CV-24`%,EBCGB:*5`Z.,,IZ
M$4^B@"LNGVJ7:W:0A9E0H&!ZCCKZ]!5FBB@`HJ&2[@AE2)Y5$CG"H.2?PJ:@
M`HHHH`****`"BBB@`HHHH`****`"BBB@`HHHH`****`"BBB@`HHHH`****`"
MBBB@`HHHH`****`"BBB@`/3BLGQ&D:Z6;F1R@MSN.&V@@\$=/2M:L_7`6TB=
M%D5"RX^;H1GD?B*`)-*:-M.C\HDH"1\P`(P2".**K>'&E;2(_,5`H9@FW^Z&
M('U^O?K10!JT444`%%%%`!1110`4444`%%%%`!1110`4444`%%%%`",VU"V"
M<#.!WKE[Q;K5[E(9XQY32(WV60@.%(ZC'3`)R<^U=34?D1?:/M'EKYVW9OQS
MMSG&?3-`"PQ)!"D4>=B#"Y.>*?110!@^*KNPM+>W:]61B9/W:H^W)_K]*UKN
M]M]/L7N[E]D4:Y)[_0>I[4E];&YM]JNJ,I#!F4,!BN9ANKKQ'K,6(XGLK5BT
M+HQVLPX\P@]<<A1ZY-`$T%C<:W>R3ZC#M:1=IC<9%K$>?+'J[<%CVZ5T%A80
M:99I9VJLL,>0BDYVC.<?2N/AN$LTN&L=2NGN5FFV`QL^5!^;S%ST!.`PP:T[
M.[=4L?MMW-'));ILO!(IAD;&2`#U)]QVH`Z:BJ(O)K4[;Z(;.T\0)7\1U7^5
M33WL$%L+@N'1N$"<ER>@'J30`7ES';0C>OF-(=B1#K(3VJM$FI6L0<B*92/F
MMT`7RQZ(>_XU)9VLAE-Y=\W#C`7.5B7^Z/?U/>KM`&"FGQ,\ESH-S]AN=V9;
M9U_=,>^Z/^$^ZX_&K%OKJK<+9ZI#]@NF^X';,<O^X_0_0X-7KFQANB'8%)5^
M[*APR_C5.Y#>4UMJULEW:MUE"9'_``)>WU'Z4`:E%<Q]JN-(8+I$S:O;Y'^B
M;MTD8/\`=DZ8]F_.KMA>_P!NJV;HV^W_`%EJF5E3V8GG\OSH`U99UCC=E5I2
MF,I'RWY5%-!<W$N/M!A@QRL8PY/NW;\*E@MH;5-D$:QJ3DX[GU/K4M`$-O:0
M6BD0QA<_>;J6^IZFIJ**`"BBB@`HHHH`****`"BBB@`HHHH`****`"BBB@`H
MHHH`****`"BBB@`HHHH`****`"BBB@`HHHH`****`"JM]I\-^(Q,7'EDD%&Q
MD$8(/L15JB@"&TM8[*`019V!F(![9.<#VYHJ:B@`HHHH`****`"BBB@`HHHH
M`****`"BBB@`HHHH`****`,?7-6N-,NM.2%86CN)Q'+YA.0I(&1CTSWK8KG/
M$;QQ:QI)E:,J\X5489);*_TS^5='0`445GZUJ@TFQ,J1^=<2,(X(<X,CGH/8
M=R>P!H`R_$EY<7URGA[3'Q/,`UU(/^647H?0M_+-:6@V5QI^E1PWOD_:%+;V
MA&%(R=N/0;<#':N2TZQO5U6`6FHD7-RYENY2A#R'G<<'^`84+CM77WDC7=P-
M-A8C@-<.I^ZO]WZM_+-`'-W&B73S27MS]CO+B:9UA1V`6YC()`4@`JP`]2#B
MK=PA32-/.I::I%I$LC8E"&)N1@*.N!^%1:OK+VNIZ?;SZ-<Q?9KQ?LYC*E)@
MRLGRG/4!LX]J7Q1;W-Q=6EVD"B-XQ&$E;#LQ;.T+W.,T`=8I#*"#D$<>]5DT
MZTCN?M"0A7Y(QT!/4@=,^]6J0D*"20`.I-`"T5GOJHE?R]/@:[?NX.V-?JW^
M&:3^SI[I]^H7)=>T$65C_'NW^>*`'R:M`9C!:H]W*O!6$9"_5N@J-;*\O1G4
M)_+4_P#+O;L0N/=NI_2K\44<$8CAC6-%Z*HP!3Z`,X:4EFI;2]MHW>,#]V_U
M']15:ZMK/4IXA>1O9:B@_=31MM;/?:W\0]C^5;51S017$9CFC5U/8B@#'&IW
MVCDIK2>;;!L)?0KQC_IHO\/U&1]*V8I8YHEEB=71QE64Y!%4C'=V((B!O+;_
M`)Y,?WB#V)^\/8\U02PV.UYX>N5@;/[ZSD!\ICWRO5&]Q^5`&_1698ZW%<3_
M`&.\A>QO?^>$Q'S^Z-T8?2I?[9T_[:UH;E!(IP<G`SG!&>F?:@"]1110`444
M4`%%%%`!1110`44R8D02$*&(4X!.`>/7M7.Z#Y@U#S/L\HCE3"GSRZQX!)&#
MU&3@'Z4`=+1110`4444`%%%%`!1110`4444`%%%%`!1110`4444`%%1374,#
M*LDBAV^ZF?F;Z"L^XO[J9"EH@AE4@NLA&Y5/<]E_'GVH`OW5U!96[W%S*L42
M#+,W:H(;NXNIHF@M]MHR[FEERK'/0!>OYXI+?2X8[F6ZD+2S2XSO;<J@<X4?
M7FKU`!1110`4444`%%%%`!1110`4444`%%%%`!1110`4444`%%%%`!1110!@
M>(181ZAI<UTL_F^>%B,3A><C[P/4<BM^N;\4Y34-)F:0B-;@9!!`7D<Y`_GQ
M71E@%W$C`&<T`07][%IUE+>3AS%$,ML&3CZ5RRW%]K4,GB*"Q6YB!,-G;2<,
M(2</)C^\?3^Z/>I]567Q)J<>DH[):[?-F(X(CZ`_5B"`.P!/<5M06=Y:0!?[
M2#(@ZR0*`!_P'`H`K6EK#HEDSQP`75RP"1*<@,1PB^BC&?SK1LK06D&UF\R5
MSOED/5V/4_T'M6;:)J5U+_:.ZW=2-L"R(5PG][@GEOY8JW-J3V4;2WUL885&
M6F5PRK]>A_2@#CW$4VIS3G49HH8[J0"ZD9T/F8($;$,0H!P02HS@5OKI_P#;
M.E6%Y<ZF^8HE?S54*I<?QX/3O4Z7<6KK.FFVD$L4GRSS3KA6]BOWFX]<54U#
MPU*VG0V]K.[M&=HC)"1*GH%'0#VR:`+LGB&WDN%M+$I-.Y`5I&V1\CUZGIV'
M-3C2S<8;49VNCP?+QMB!_P!WO^.:KVN@YDAFU*5;J6``187:%QTR>K$'H:V*
M`$5510J@*HX``P!2T44`%%%%`!1110`56N+&*=Q*"T4Z\"6/AOH?4>QJS10!
MD7J1S6YMM;MDE@SE;A`=H/J>Z'WZ>]9=QHUSITINX(EU2%XB@=E#319YW8X$
MOZ-[FNK/(P:I-8O;MYFGN(><M"1^[;\/X3[B@#-\+SW$]NY^U6[VL0V)&AS(
MA[[^FT_[)%;GFQ^8(_,7>5W!<\D>M<^4TO7+J0V\WV+4TRAF@(.['4$_=D'J
M#T]JS;NT;2[F&2\CBL64[4O(P3;LQP`6'6,\#`^[0!VM%<[;^(I+&1+35HW6
M0Y(<+GY<G'(X;\/6MZ">&YB$L$J2H<@,C9''6@"2BBB@`HHHH`9*Z10O)(<(
MBEF.,\#K63IESI[WS"U6$1.`+=HXMH.!E@&Q@_2M6XW?9I=NXML.-F,YQVSW
MKG-)CDM[ZR$YG5I@Q5'CROW22<_PMGKT]N*`.GHHHH`****`"BBB@`HHHH`*
M***`"BBB@`HK+N-?MEN7L[)'O[Q#AH8,'RS_`+;'A?QY]JS]6_M1-.FO]1F$
M=O$-SVEI+Y?R]]TI&3QV4"@#4N];LK2;[,':XNO^?>W7?)^('3ZG%86JZUJT
M<UK$TUKI[W%S%&+16$DY1FP6)Z+^`/UJ;3=.NOM!DTV18+$3J54)Y8>/;AP1
MC+'/1B?>JFHK#J<\-II]LBV%O?1+<7._#SNK?<1NIP>IS["@#2N[6<7YETZY
MGC>*/RF,@!20DYP"?F+<]>0*N6TUIY4CSD0&+YI8I,`J?[S?WL^O2K#&#3K;
MS9L`)A451T]%4>M86JW)BU"QO+Z)V9)25CB3>L2[3\IQU<\'^5`&_:SW%RYD
M,(BM\?('^^WN1V'MU^E6J0'(!]:6@`HHHH`****`"BBB@`HHHH`0`@G)R">.
M.E+110`4444`%%%%`!1110`4444`%(?NGG''7TI:Q?%EQ-;Z&[0-(K%@"R`<
M#OG/&*`(4%_?V\L&T744./*N9,(TD@_B4#@@>_6JXUV:73YYKZ%XA8OY,B!=
MOVJ?C"I_LDX_/VK?67R=,6;`.R$-P/:N<LW@EU));N53;:<2(T`R9;D\NP'4
M[<[1[YH`VM#TZ2QLVDNB'O;EO-N7']X_PC_94<#Z4S5+F%Y1:S3+%;KAKAB<
M;O1![GJ?;ZTV]OM0:WW00BV#G9'YG,CL>F%Z#\:L6&D068$D@\^Z;YI)Y.69
ML<D>GX4`-%S>W8"V5N+>+'$TZXX_V4Z_GBI8M,A63S9W>ZEQC=*<@?1>@_*K
ME%`%:>PMYQRIC<'(>,[6!]<BH?M-Q8%5O2)(20HN%&,9Z;AV^HX^E7Z;)&DL
M;1R*&1QAE/0B@!U%4--:2*2XL9&+"W8>43U,9'&?H<C\*O$@`DG`'4F@!:*S
MX9[V^0W%N8X83_JMZ$EQZGG@'M[4]-0\MUAOD%O*W"MG*/\`0_T-`%VBBB@`
MHHIHDC+E`ZEAU4'D4`.HHHH`*Q?$5Y+`]C!&H=)IP)5YR5_#WQ6U7/>*5LFG
MTTW=TT+?:!Y02/<6;CK[4`;365LT1B,"!.>%&,9[\51OH=0MK*5+:./4%*_)
M%/\`>!]S_$/KS6K10!P%O)<16"EUC=I)&\RPFX''+$#J@&.HXZ<5U.E:U870
MCMD5;69EW+`V`&'JA'##W%3ZCHUEJ0+3Q`2[2HE488#TSW'M5.:SMH[-+'4;
M&(VL?$<L*[5C]#@<H?<<4`;=%8BMJFE*'1FU:Q/(((\^,?R<?K]:TK'4+34H
M/.M)A(HX8=&4^A!Y!^M`%FBBB@`I,`\XZ4M%`!1110`4444`%%%%`!152_U2
MRTR,O=SK&,%@#U(]AWZUFR^(9%U$Q);H;:,KYDGF#E6QA_0`<YSZ4`;4LT<"
M;Y9%1<XRQQS6+-XFBDO(;2RB=FE;!EDC(15_O>X]Z@U"X7771--M9;GR\J9F
M8QPX/N>6Y`/RCMUJS;^&T>.,:G,;D(`%@3Y(E'ICJW_`B:`*.FZK>2W-Q+#"
M^H3R*J@(^V*(C.06^[C//&36C_9%WJ&#J]Z63_GUM28X_P`3]YOS`]JUHXTB
MC6.)%1%&`JC`'X4Z@"*"V@MEVP0I$#UV*!GZ^M2,JNI5U#*>H(R#02%!9B`!
MU)[51U?4UTS36N47S96(C@C'_+21CA5_/^M`%'6;R2[N?[%LI6B.T->3IUAC
M/11_MMT'H,GTI]W:P:;IUMMMU6"">(B,$XC4'K[GG\:DT72_L4&)2))W?S;B
M7_GK*>I^@Z#Z5#>EM0EBG*-):V]RGEJIQO<-RY]5'8=^M`%VVMI+B<7MX"&Q
M^ZA/2(>I']X_ITK+OX+E]6D\^.Z6R<%<P?-@X!#8YYSD=.,5T=<UJ>I7EO?S
MQBXD6-?]7M095MN<GU08/.*`.D7A0.>G>EID3;XD8D'<H.0,9I]`!1110`44
M44`%%%%`!1110`4444`%%-<2';Y94<\[AGBG4`%%%%`!1110`4455EU"%'\J
M(-<3?\\XN2/J>@_&@"U6/XDMQ?6`LA*$>0[@OE%RV/0?XU?A%U*'^U"-%885
M$))'U;U^E3QQK%&J)PJC`R<_K0!RVNWNH_9;/3+39#<74JPHBD,Z`#)9NP``
M!Q6]IFD6>DVT<%M$`47!D;EF]23[GFL31(+/6O$FHZ^(%/DN+2WD_O;/O-^)
M./H*V-8O'MK7RX4DDFFRJK&,L%_B;\!^N!0`6W^G7SWA&88"8X/<_P`3_P!!
M^/K6A573IK6:QB-F?W04``@AE]B#R#]:M4`%%%%`!1110!31'769'VG8\"C=
MVR&/'ZU'>,;VY&G1Y\L`-<L.R]D^I_E6-;I(_CRXF#R"-!L*$_*24'(]>GZU
MKV_VFQDGC>VDG625I%E0CD$\`C/4=/H!0!H@!0```!P`.U))''-&8Y45T;@J
MPR#5;[;,0<6%P<?[H_K3?MMUG_D%W'_?<?\`\50`W[-<V()LV,T(_P"6$C<C
M_=;^AJQ;7<5T&V;E=.'C<89#[BH?MEUG_D%S_P#?R/\`^*IL$%Q+J7VZ:,0!
M83$L8;);)!RV..,<?4T`7ZYLD+X_4+&H#6QRVW!)'\ZZ)Y$C7=(ZHOJQP*Q(
M(%U/Q`-6MI91#`AB#$#9(<\X!&<?[6:`-VBBB@`K#\27:VIL`T,$@>X"GS4W
M;1ZC'/7%;E<]XKAEF;3FBM6N/+N`6Q'N"CU/I0!T-%%%`!1110!2:P:%S+8R
M>23R8B,QM^';ZBJ-Q:6UY=K(QDTS4L866,XW_P!''L:VZCFABN(S',BNI[$4
M`90U>XTUO*UN((G1;V($Q-_O#JA^O'O6PCK(@=&#*PR"#D&J)BNK-"J@WEMW
MC<YD4>@)X8>QY^M9T-@UOON?#ERJ+G]Y839\K/?`ZQG]/:@#H**S;'6X+J?[
M)<1O97H&3;SX!/NIZ,/I6E0`4444`%%%4[_5;'3%!N[A49ONQCYG<^RCDT`7
M*@N[ZUL(3+=W$<*#NYQGZ>M9HN-:U+_CVMUTRW/_`"UN1NF(]0@X'_`C^%3V
M>A6=K,+F3?=W7_/Q<'>_X=E_`"@#-OUG\2&)+?3BMO$^X7%V-BMQV3[Q'Y5:
ML_"]E!M:YS=NO17`$:_1!Q^>:VJ*`$````&`.@%+110`4444`8OB.\MUMUT^
M;SC]I5B_D,H8(O).#U%<S"TQ(:U+!;!_EWG'[UA\Q`/]U,+]6)K=\1K<PM+>
M7*6TNF10%F4J?,#CE1G/.6QTK+TS3K>^N8[&=+I;JV`^TE@/+<L=TG'N>,_2
M@#=BN;R?1[2!]BW5YD93C8G4M]0/U(JU?0Q6^GPPHCB-)(U4)U&"*;IX^TWM
MQ>%0L:'R(!C^%?O$?4_H!4FJL%MXLNZ9GC&4')^;I]*`+U9]QH\,\DTRRRQ3
MR])%;E.,<>WM6A10`R)#'$D98L54#<>I]Z?110`4444`%%%%`!1110`4444`
M%%%(P)4A3@]B1G%``.1R,>U+110`4444`%%%%`!UID4,<";(HUC4=E&!3Z*`
M"L;Q+?M;V*V4$@2YO28T.?N(!EW_`.`KG\2*V:XN6]CU#77G>&X=;EOLUK)%
M'N40HW[TY_VF&#_LB@#IM&LHM.TF"WCC$2JN2H[9['Z=/PI+#-W<2Z@P^5OW
M<'/\`/7\3S],4NI.[I%8P\/<G:3_`'(Q]X_EP/<U<1%C1410JJ,`#H!0!D6M
MUO\`%=Y"L6%$"YD7H2#W]_F_(5LU@6,-L/&%]*ET'N#"`\2Q%0!D8.[."?\`
M&M^@`HHHH`****`,/^S4B\2B[;4?WDS%Q;=,C9CUYZ9K<K&N#9_\)9:[XI3=
M"!A')\NQ1SD>H-;-`!1110`4444`9^LZ)8Z]9BTOT9X@P<!6QS5Z.-8HEC08
M5`%4>@%.HH`****`"BBB@`HHHH`****`"BL;6-5N+'4[&WBVK',V)6>,L".P
M!R,'\ZV:`"JUS8Q7#B52T,X^[-'PWT/J/8U9HH`Q[Z..:#[-K=JDT&<K<Q@X
M0]B>Z'W''N*B5M4TA`\;/K&G]L$&XC'L>D@_(_6MJ61(HFDE8*BC+$]`*P[2
M\C6_EEM(I"KC"VD0ZD\[V[)]/SH`UK'4;/4X?.LYUE4'#`<,I]"#R#[&H+W6
M[&QE\AI&FN3]VW@7S)#^`Z?C@53ET%M2NUO;TBTE`VXLW*.R_P!UW'+#VXK3
MLM/L].B\JSMHX%/78N"Q]2>I/UH`SPFN:GS(ZZ3;'^!,23D>[?=7\,_6K=CH
M]CIS%X(`9F^]/(2\C?5CS5ZB@`HHHH`****`"BBB@`HHHH`P_$@6YFTK36^[
M<WBNX]4C!<_J%J_<2_9=*FN5&&",X.,')Z?TK-OAY_C"V3/%K82O]"[!1_(U
M?U=2]O!;K_RUN(P1ZJ&W,/R4T`6+&V^QV,-N2"T:`,1W;N?SS46JMLM4;SC%
MB9,L!G/S=/QJ[5/5"RV#,LBQX93N89'WA0!<HHHH`****`"BBB@`HHHH`***
M*`"BBB@`HHHH`****`"BBB@`HHHH`****`,GQ'=S0:9]FM6`N[UQ;P^H+=6_
M!<G\*-.LX8+SRH%VV^GP+;Q#L#U;\<8_.JL3QWWB.\U*7/V?28S!$3TWD;I&
M_`87\ZL[YETF*,+Y=S?OT)Y3=R?R7^E`%C3_`/2;B>_(X<^7$?\`84]?Q.:O
MTR*)(8DBC4*B*%4#L!3Z`,6":(^+[F'[-;I(+<%9@/WCC(R,^G2MJN?M8B/&
MEU(+;"-!CS2A&6^7//3_`/5704`%%%-=UC1G<X51DGT%`%:ZN)C<):6VT2NI
M=G89$:],X[D]OH:CM1-%J4T#W,DR^2CC?C@DL#C'T%)I*M+%)?R*5DNSO`/5
M4Z*/RY_&I$_Y#<W_`%[1_P#H3T`95TD4?C2R9%WR/$V\_P#//CKU[\#\*Z&N
M?O\`CQGIV,_-"V<-CGGMWKH*`"HKF1X;:66.,RNB%EC'5B!TJ6HKJ,36LL9W
MX="/D.&Z=O>@#F4\87"Q223V40\H(Q578-*#C(0$<E3P1ZBNCM[^UNI)(X90
MSQ'#J000?QK@H-+<VY,<=_&LNU8WFLB&MBO&Y=IX)QSZGFNAOS8MXHMI)UO5
MGBV(KB/]TV>1D]N3B@#I****`"BH8+NWN7D2"=)&B.'"MDJ?>IJ`"BBB@`K)
MM+::>W-S'=R)<&63EF+(P#L`"OI@#I6M63IVHV5M;-!-<QQNDTH*LV#]\G^M
M`%J*_P!LGDWB?9Y<X4D_))_NG^AJY5&34M+EC,<ES!(K<%2<YJK%<+;N18W:
M3P@C-O(V&7<<#:Q^G`-`&?XK*1ZKI+^4SR>:<;%R<`BNHZ\US=S)#KNJVTEM
M<[%L?GG!&TQYZ`GWQ6H=3:YRNG0&Y_Z:M\L8_'O^%`%\D`9)P!5"?5DY6RB:
M\<'#&/[B<9^9O\,T#3'N#OU&<W'I$ORQ#\._XU>1%C4(BA5'0`8`H`P[2UE\
M00K=:G*K6Q;,5I$2JC_?/4GVXQ6W%#%!&(XHUC0=`HP*KSV`:4W%LYM[@]64
M</\`[P[_`,Z;'?F.18+U!!*W"MG*/]#Z^QH`M331V\1EE<(B]2:A:^C!XCE;
MW$9J'63_`,2UAW:2,#_OL5?H`JF_4?\`+O<'Z1TPZDH/_'G=GZ15=HH`H'5<
M'']GWQ]Q#_\`7I/[6./^0;?_`/?D?XUH44`9G]LMC/\`9.H_]^1_C1_;+9_Y
M!.H]?^>(_P`:TZ*`,[^UVS_R"]0_[]#_`!JS97L=]`98T=-KE&60892#@@U8
MK-T7_5WG_7[-_P"A4`:5%%%`'/!Q)XRO@77Y+.!1SZR$D5J7_P#Q]:?Q_P`O
M!_\`1;UBP01?\)IJY\I,^1:G..^YJV+X_P#$QTX>LK_^@&@"_534\_V?+CR\
M_+_K/N_>%6ZJ:IDZ>X"*^67Y6.!]X4`6Z***`"BBB@`HHHH`****`"BBB@`H
MHHH`****`"BBB@`HHHH`****`"J>KZ@FE:5<WS\^2A(']YN@'XG`JY6'K/\`
MI^M:;I0PR!S=W`_V$^Z#]7(_(T`5)=.U*ST+3]/MKJ$3W$G^EF523(6RSD8]
M\_@:UK5?M.IRW+#BV7R$`Z!N"Q'Z#/L:CO9%COY+UR"EC`=J^LC?UQ@?\"JY
MI]NUM8QQ2-NDQND;&,L>2?S)H`LT444`%%%%`!6'XFU!K6"&V2,OYYR^/[BX
M+#\1Q6Y6;8JE_)=7DGSQR,T$:D<!%)#?FV?R%`&3HNLSZIJEY827PC>WQL5$
M&7'4MDCIR`*WK>R\FX>X>>25W0)\V,``D]OK6-J20V\VL3-$I<PI(AP<A@I`
M((Y'2MC2KA[O2[:>0J7>,%BIR":`*%U=O%XNLX`JD26[C[V"O.2<=_NBMJLB
MY&I_\)+:F-X38^6V]/EWY]>>?RK7H`*BN9X[6VEN)21'$A=L#/`&34M171Q:
M3'=&N$;F3[HX[^U`'.MK5H/$:W_GR_8UM%BD<(QCC=R&7<>@X(^F:@O$ND\9
MA5L9&M[B6-FE\IF4@*!UZ<8[XQ6':+=S6EVL)MI[;REDNK8B-%G?<N"NW:1'
MC/)'8=:W[R]CC\76UO%J$\0ED3SD$GR*0HVH%QC#9'/K0!U=%%%`'->$D9;K
M5@(PL0NBL9!SD`FNEKF_"S(=1UG8P.;G)`8D=^?3\JZ2@`HHHH`*3:IYVC\J
MCN+J"TC\RXE6->Q8]?IZU0BU&ZU(L-/C2*)6VM/-R?P0<_GB@#0ED@MXS+,R
M1HO5F(`%<SJIN-6U-8].A.V6U<>9-E%;:PQ@=3RU;D.E0+()KAFNYQTDFYQ]
M!T'X"H;Z5;?7+.XE#B,6\J%E0MR2A`X'L:`,_3O",$0D:\^9V<N!&<*I/.0/
M8Y'.1Q6H)[FP7;=KYT`Z3Q+RH_VE_J*<=9L0<%Y?_`>3_P")H_MBR_O3?^`\
MG_Q-`%R.1)HQ)&ZNC#(93D&G5E6P+ZJLME$\5L4;S]R%%=OX<`]^N36K0`4R
M6*.:-HY45T88*L,@T^B@"@-)0-&IN)F@B<.D+-D`CISUQ[5?HHH`****`"BB
MB@`I&7<I4,5R.HZBEI&4.I5NA&#0!B^%]0N=0M;C[5+YCPSF/[H!`'KCK4^@
M_P#'O=?]?DW_`*$:I>$H);=;]&A"1-<L8W4@JP]CU/U-7M"&+6X][N8C_OHT
M`:=%%%`'-PY/C+6,?\\+3_T)JUKT_P#$RT\?]-'_`/0#61$<>,]7X_Y=[3_T
M)JUKX?\`$RTXY_Y:N/\`QP_X4`7ZI:LN_3G7RC+\R?*#C^(5=JEJX4Z9)N61
M@"IVQ]3\PH`NT444`%%%%`!1110`4444`%%%%`!1110`4444`%%%%`!1110`
M51U358M+CB>1#)YC[=JL`0,9)Y(Z?U%7JY+Q.UQJ&JQ:;$(S&`H99$##+'`(
M[@CKP>@H`Z&UU6RN_+$<P5Y4#I')\KE3T.T\UFZ$!=:CJFMNV4FE\B`D\"*/
M(R/JVXUS]W>QPW=S?06Y5K*VVQR-,P$P'R+^[[,#CGWID6G3RVL&E?;)3;/@
M(L;E0K9'!'4=23G^5`CH[:1KQ[6)HV!N9&NY`PY5`?D!_P#'1^%;U9FD6ZQM
M<R(28P_DQ;F)(1..I_VMWX8K3H&%%%%`!1110`53_L\QRR26MS)`)#N9``RY
M[D`]#5RB@#%U?3\:7J$\US)*[6Q3.-N`,D?=QW-/\+.K^'+/!Y6/#94K@Y/8
MU<U2UDOM,N+6)D5ID*9<$@`_2DTJTEL=+M[6>42R1)M9P,`T`8>I1Q'QUILR
MHWG*C*2[8&W'.S)_,`5U%8%]%?R>++&5$46\:L#\PRX(&3CJ"#_.M^@`IKHL
MB,CJ&5AAE(R"*=10!BWGA/2;S35L6BDC2,%8I$D/F1@]55CD[>VWIBM98(@J
M*45M@`!(R>.E244`%'6BB@#FO"T$]O?ZE')!)#&'`C5@<8R>A/45TM5KK4+:
MT(223,AZ1(-SG\!55O[3U#`7_B709Y)PTS#V[+^IH`MW5];60'GRA6;[J`99
MOHHY-4KJZU::WDDL[3R55<CS2/,?V"]!^/Y5<M=/M;,EHH_WC?>E<[G;ZL>:
MLT`<1#I6LZG+(S#=!("AEGRCE2`0RGJ""2,``<>]=+I&B6^D><T<DDDL^TRN
MY^\0,9Q6E10`4444`%%%%`!1110`4444`%%%%`!1110`4444`%8NJ:;J^H:I
M$BWT4>D%<7$`4B23KP&'0'COZUM44`-CC2&-8HU"(@"JH&`!Z5GZ%_QZS_\`
M7U+_`.A&M*LW0\?9)L?\_,O_`*$:`-*BBB@#FU!_X3/4Q@$-:VQY]G:MB^Q]
MJL#CG[00/^_;UD#'_"9ZAD_\N=O_`.C&K6U`XNM.YZW)_P#1;T`7:HZT0NDS
M%GD0?+\T?WA\PK-U:#4/[0<VTMRD4@7!21<%L$84$@\=<=ZOZD6BT1R]PT;*
MJ`RXYSD=AZT`:-%%%`!1110`4444`%%%%`!1110`4444`%%%%`!1110`4444
M`%8B:5JD6H37#:@MS&P+1Q2K@*W.`<=N>U;=%`'#&RNS):6<^G11SN[3300/
MRZ1#CGIR[+CIP*M:8B6T$FH.D\;P1[Q',VYD<C8H;WZ_F*M6UU&NO:UK=V^V
MTLD6T1L9VA?FD/'NWZ4ZRG@U(PS0-YHO;LS,WHB#Y<C\%'XT`;=C;"SL8;<9
M_=H`<G))[U8HHH`***0YP<8SVS0!1TS5H]3,ZI!+$8&VMO`P3[$5?KF?">X:
MEK"NZLPGY*'Y>_09S6MK)+VB6RN4-S*L1*GG!.3^@-`$ZZC9O<K;)<*TK9VJ
M.^.3STJS69>Q1Q7VEA$"JDC*H'`&5-:=`!1110!GWS"+4M/D8X!D:,GW*G`_
M,5H56O[3[;:-$&V."&C?'W6!R#^=-LKT7&895$5U'_K(B?U'J#ZT`6Z**1L[
M3MQG'&:``D`9)Q3(+B&YC\R"19$R5RIR,@X(KDV?4]2BN[&]9K@RL$:.V;!0
M*WWE8<+GW]*U=/T%K>&2)W%M!(^\PV[$%CW+-U)/?&!0!?N-3MX7,2;IYP/]
M5"-S?CV'XU%Y&HWI/VF86<6?]5`<N1[MV_#\ZN6]M%:Q^7#$D:=@H_G4M`%>
MUL;:R4BWB"D_>;JS?4GDU8HHH`****`"BBB@`HJM?ZA;:;`)[MRD6=I8*2!]
M<5/'(DL2R1G<CJ&4^H-`#J**P?%LC1Z?;;+IX&>Z10BY_?=?D)'(SZ^U`&]1
M7&QS37NKVFG/J;3:=()=Z,S1W"LH4A7Z'CKGWK8\.->[)X[J[ANHXWVPO'*'
M.W)P#COC'6@#:HHHH`****`"BBB@#/G\V[U)K,3/%#'"'?RSAG+$@#/8#:>G
MK3+FT;3[:2ZM)YLPKO:.60NK@=1ST./2I(O^0_<G'_+M%_Z$]2ZH<:3>$\?N
M'_\`030!81@Z*XZ,`:=4=O\`\>T7^X/Y5)0`5GZ+S8L<YS-(?_'C6A6?H>/[
M,7'_`#T?_P!"-`&A1110!S>-WC+4N?NVMM_Z,8UKW_\`Q]Z>/^G@G_R&U9"C
M'C'4^<9M;8_^/M6O?C_3-//_`$W(_P#'&H`Q]9U66+4VB+0".U/F1L0<[]GR
MJW89^8Y],5J:C*S:$TK2)"S*A+#YE!)'3UJO?Z"]U<W=W%=[9YHMD0D0,D?R
MX(([@]:GODDM]`\MI8U>-$5G9?ER"`>*`-*BBFJZ/G8RMM.#@YP:`'4444`%
M%%%`!13/.CR1O&0VT\]_2B@!]%%%`!1110`4444`%%%%`!1110`5%=7"VEI-
M<N0%B1G)/H!FI:Q/%Q9]`DLT;#WTL=LO_`V`/Z9H`K:?#-:^#X(LC[5?G+%A
M_'*<G(]@?TK1L8T_M*<1KMALXUMXQCO@,W_LH_`U(SQ/JL=LO`M(O,/HN<JO
MZ!N/I2Z.QEL//*E?/D>3:>P+&@"]1110`5DZIKJV%]#IT5O++=W*YB.P^6#G
M`W-VK6HH`IV&GI:!I6"-<RG=+(J!<GT'M3)E$^MVRD_\>\3R\>I^49_`G\JO
MU0L@)-2O[@'/S)"/3"C/\V/Y4`&I`>?8-GI<@?FIJ_5#5/OV'&?]+7^35?H`
M***9+-%!&9)I%C1>K.<`4`/JM>6<%R%DE)C>+E9E;:R?CZ>QXJM_:4]VVW3;
M5I%[W$V4C'T[M^`Q[TY=*$S"34)VNW'(0C;$#[)_CF@"O;ZI>23M;PPK>H!A
M;E#M7(_O9X_[YS5@Z?/=\W]R67_GA#E$_$]35\`*````.@':EH`9##%;QB.&
M-8T'15&!3Z**`"BBB@`HHHH`****`"BBD)`!)Z"@#"\9OL\.RMP`KJ=Y;&T@
MC!]_I6O9,6L;=B=Q,2DGUX%8BZG#XLWVEA&'LHVVW,\JD$$<@(IZD^O:M^&&
M.WA2&)=L:#:JYZ"@!]0W26LT8ANUB=)&VA)<$,?0`]ZFK#\61!]-AE\B21H;
MA'61'*F#J#)QR0`3P/6@!MBEI>W=UJL\4!N[.26**5",B+`QG'7IWJGX*NDN
MS>2+#'`6?<4BC55.3U..IXZCBJFB@C5K&.2R>%H()8;>2)25F4`?-)E0<>F>
M^:UO#-Q/<-<>?:6\#1@(WE1;,-D_+U/3K^)H`WZ***`"BBB@`HHHH`HQ-_Q/
MKE?2VB/_`(\]/U7_`)!%[_U[R?\`H)J"<O9ZN;MHG>":%8V=`6,94L1D#G!W
M'GVIM]>B]M9+2R1YI)U,9;851`>"22.P[=:`-"W_`./:+_<'\J<)(RYC#J7'
M5<\C\*(TV1JF<[0!FN9U#CQ[IY6+?F(AF,?W3\W.Z@#J*H:+_P`@J(^I8_\`
MCQJ_69I%Q#'8""25$EB=ED1C@J=Q/?ZT`:=%1BX@;I-&?HPIX93T8'Z&@#G&
M?'C&_!Z?9+?MW\PUKWY(NM/][D_^BWK+9#_PF-Z0"=UE!^DAK5OQFZT\^EP?
M_1;T`7*IZMQILO\`JA]W_6_=^\.M7*I:P"=+F`2-_N_+(<*?F'6@"[6(MF]O
M?K!&MNA:5IEV.ZN5W9))Z'DG@UMURCZC<1ZLZO<2EHY=D;^2/W:E^=X&3@@@
M*>,XS0!U=%%%`!1110!BVVJ7]PD4SVD(A:4(2&SNR3\R^PXZ]:*RK"WA26!I
MI&:(SA=QCQN8,<9`?(P?5:*`.OHHHH`****`"BBB@`HI"H)!(Z<BEH`***IW
M>J6]E>6UK*)-]R2$*KD9'J>U`%RL'7-USKFDVJ$%H3+=D-]W*+M7/XO^E;U<
MQ=^9<^)M2:%PKQ6D5I&?[K2,6)_+!_"@"6SFO!H=]J-W:QQS70W@1R%L\;0.
M@Z5O01""".('.Q0N?H*I7Z)&EA9HN%:=%7V"`M_):T:`"BBB@`HHHH`*RK6?
M^S5E@N()LF9Y!)'&75PS$YXZ'GI6K4%Q>VUI@32@,WW4'+-]`.:`*%[=BZ-L
MD-O=;UN$8$P,H`[DDCTK1N;F"T@:>XE6.-!EF8]!53S=1O/]2@LHC_'*-TA^
MB]!^/Y5+;Z;;V\AF(::<]993N;\/3\*`(A=WMZN;.#R(R.)K@=?HG7\\4Z'2
MH5E$]R[W<ZG(>8Y"_P"ZO0?E5ZB@`HHHH`****`"BBB@`HHHH`****`"LW6]
M871;:*=H3*))0F`>1GO6E7/>+;6*YBL]UU#;2+-^[:1B-QQ]T<=Z`.@!#*".
MA&:6D4$*`>H%+0`U$2,$(JJ"<X`QS3J**`"J&L:3%K-HD$LC1F.59490"`PZ
M9!X(]C5^B@#"3PY);ZM:W%K?21V<.\FU/(5F7&5/8=]O(],58T?16TF6XD^V
M//\`:,,X9`,N."W'<C%:M%`!1110`4444`%%%%`!1110`A(`R2!]:Y\VT.M^
M(HM1MWE"Z<6B\TXVL_0A01[D$_E6IJVD66MV#6-_$98&()`8J<CIR*L6UM#9
MVL5M;H$BB4(BCL!TH`EJ.2W@E;=)#&YZ99034E%`%<V%F1@VD&/^N8J-])TZ
M3&^RA./]@5<HH`Y273=/'BVY@^RQ!!8Q-C'&?--:T^GVMI>6#P0B,FX.<$_\
M\WJE,/\`BL[G/?3HC_Y%-:M^2+K3\=[@_P#HMZ`+M4M70R:9*JP>>3M_=YQG
MYA_^NKM4=80R:5,@C:3.WY5."?F'>@"]67)H$!WM!<7$$DDOF-(C\GG)4^H_
MEGBM2B@`HHHH`****`,.+1+I-8%Z]PCH'+!49DP#ZCG)_$45N44`%%%%`!11
M10`4444`%%%%`!7-^((A/KVF)([K&&W##;03G^==)6#K=K#)KFDSR7B0M'(0
ML;J3YG'0$<`T`;U<KX>?[=KFI7&,H+V1@2/[H$:_R?\`.NH=MJ,Q[`FN8\`Z
M:]MH*7LDLA>]9Y3&3\H#,2,#Z?SH`W)P'U>T4\A(Y'^A^4`_D35VLV%U?Q'<
M_,/W=O&F,]R6;^1%:5`!115.?4[>*0PQ[KB<?\LH1N(^O8?C0!<JK<ZC;VKB
M-F,DQZ11C<Y_`?UJ$V]_>C_2)OLL1_Y90'+D>A?_``_.K5M:6]HFV")4]2.I
M^I[T`5634;TX9Q90^B$-*?QZ#]:L6UC;6F6BC^=OO2,=S-]2>:L44`%%%07%
M[!;$*[$N?NQH-S'\!0!/15)7U"Y`*QI:(?[_`,[_`)#@4@TJ)P/M$T]PWJ\A
M'Z#`%`%ZBJ-GYL-Y<6C2M+&BH\9?[RALC&>_W?UJ]0`4444`%%%%`!1110`4
M444`%8/B@67^@&[LEN,W`",TFP1GUS^%;U<SXS$8CL'9=S"X'&3T[_TH`Z:B
MD'(%+0`4444`%%%%`!1110`4444`%%%%`&;;O?72RNERB%960(T60`#]<U-Y
MM_#CS;>.=>[0M@_D?\:;II^:]`'2Z;^0J]0!7MKV"ZRL;$.OWHW&UE^H-6*@
MNK.*Z`+@K(OW)$X93[&H;6ZD2X^PW9'GA=R..!,H[CT([B@"[1110`4454.H
M1F5TCBFF\L[6:-,@'TSZT`6Z*J_;?^G6Y_[]T?;O^G6Y_P"_=`&3./\`BLYS
MTSIJ?^C36G?8^TZ?_P!?!_\`1;UB3W:?\)=-(T4X']G(-IC.?]::T[B^AN+[
M3XT$JMYY/SQLH_U;]R*`-6J>K+OTV53&\F=ORH<$_,*N52UC']ES9\S'R_ZO
M[WWATH`NT444`%%%%`!1110`4444`%%%%`!1110`4444`%%%%`!7->(5!\1:
M,7`VB0[>>2?I70SF5;>1H$5Y0I**QP">P)K$OW-]=164UANNXD$Q>(JXC&>A
MW8/)[#GB@"_K]V;#0+ZY&=T<#E?KCBG:)$(-"T^$#`2VC7_QT5RWB;5+B[TR
MZT^[M);>>*UEFW!3Y;C&Q3N[?>/!KI8[]C'';Z?;-<E%"F4G9$O']X]?P!H`
MN2V=M.Q:6"-F/5BO/YUFN=/+M!8VKW$HX/D,553[OT'\ZL#3)+D[M2N3/_TQ
MC^2(?AU;\3^%0W7ARSNC(#-<Q)(0=D4FP+C'W<#CIVH`K7&EW<=E-<27LBB-
M2_V9)6*,!R06/S'CTQ6U:PPPVZK!$L2$9VJ,5S^K^'3#IUU/8W4WG;"S+,^4
M<`'(Z?+D=Q5S3+:TBC_M!+BY)CC(>*1ON<<@J!UH`V:*AM;NWOK=;BUE66)Q
ME64\&IJ`"D)"J68@`#))[4CNL:%W8*JC)).`!6>B/JS":962R',<1&#+_M-[
M>@_.@!WGW&HD"T/DVQZW!'S/_N#^I_"K-M9P6@/E)\S?>=CEF^I/)J5G2,*&
M94!.U<G&3Z"HKF]M;)-]S.D0QGYCR?PH`GHK*'B""1PMO:W<^XJ`5BV@Y&1]
M[';FD&LW3,0NB7IQ)Y?)0<^O+=/>@"U$?^)S<C_IA%_-ZMEE'5A^=8;W$MY(
MDDOARYWME07DC&`/7#=/3ZTBM(%4_P#",XS&7(>1#C'\/?D^E`&YO3^\OYT&
M2,#)=0/4FL4_:-K%?#=N2(P^#(HRQ_A^[U_2E9+I0^SPY9L5"X_?*-Q/7'R=
MJ`-4WEJIP;F$'WD%1MJFG*<-?VP^LR_XU0,=_N81Z'8*H<*"9AR.[?=Z#TZT
MICU<LJII^G(N\C+,3A?[V`/TH`NG5=.'_+]`?I(#3?[8T_&?M*D>P)_I5)$\
M0;E/DZ5&ISGAR5]/KG]/>I47Q#M&]M.4["2$5_O=AUZ>_P"E`%H:K9'I/_XZ
M?\*/[3M/X6=L?W8F/]*K&'7BAQ>V:OL&,0,1N[_Q=/UI6MM:WMMU*W"[EVYM
MN2/XL_-U]*`)CJL(Z07;?[MLY_I5>\O%N80(HKV.1&#H?LKXR/7CD4[[)K+.
M"VJPJN]B0EK_``_P@9)YZ9-9M_)X@M9H8(KMYV:)V>1+4;0W\(]AZ]Z`-.SU
M2>:U1KK3;F&;HR!-PS['TJQ]L<]+*X/X*/ZUA0)K]U=*B:C<)`<@RM"@R-H(
M<`KZDC;[5I-I-^V[_B?7@R!M_=Q<>O\`#SG]*`+GVN3_`)\;C_QW_&D^URX_
MX\;C_P`=_P#BJKMI5PV<ZO>`%P1C:,*.HZ=_6E&DOD%M2O3B3=_K<97^[]/U
MH`F^U71^[I\GXNH_K36N;\'Y=-R/>=142Z.1LW:E?-MSG]\1NSZ_2D_L12FT
MZCJ!_=[,FX.<_P![ZT`2BZU$]=,`_P"W@?X4X3:@PYLHU^LV?Z5`VA6S!@;B
M\^90H_TAOEQW'N?6AO#]@Q8G[1\S`X^T/QCL.>GK0!8#ZD1_J+93[RL?Z4%M
M2`_U=I[_`+QO\*K?\(YIG.8I6R^_!N).OIUZ>U*GAW2DVXMB=K%ANE8\GZG_
M`/50!.7U#_IT7_@;'^E-SJ)_Y;V:_P#`&/\`6F+H&EHJJ+.,A4*`'G@]>O?W
MI3H.DE2IL(,&/RR-O\/I0!)91_94E,UQ$[RR&0E1M`R!QC)]*L+/"_W)4;Z,
M#5-M"TIV8M80_,FPX7`V^E1W6AZ?Y,KQ:?')(4`5%(7..@![4`:E4]4MVFLR
M\7^O@/FQ$#G<.WX]/QKF[.XN[<!?-?3[B6;9'#*2T``_V3\W/KD`GH:W]/U7
M[4_V>YA:VN<$JK=)5'\29ZCVZB@"Y;3I=6T4\9!25`P(]#4M9WAX%?#]BAZI
M"JG\.*T:`"L_12#9R*/X)Y%/UW&M"LW1,^7>@]KV;'_?5`&E1110!@SC;XPD
M;/WM-7])?_KUI7Q_TFP_Z^#_`.BWK+NQGQD!GKI;_P#HP5IWY"SV))_Y>,?^
M.,*`+M4]6(&FREI'C'R_,G4?,*N54U1BFF3L)?)(7._&=O/I0!;HI%.5!SG(
MI:`"BHH3.=XF5!ACM*'JO;/H:EH`****`"BBB@`HHHH`****`"BBB@`HHHH`
MANYOL]G--N5?+C9LL>!@=ZS/"]R;[23>2!/-FD8R,ISN/3^5:5[YGV&?RHS+
M)Y;;44C+'''7C\ZQ/#K3:7I(M[V)_MKNS_9U8.PS[C@?RH`A\8`M'(@S^]@6
M/`[[ID']:ZC&!CTKBO$]U(;_`$X74Q@=YHO]&120!YJ'+-CGI],UU5GJ=GJ#
M.MM+O9`"P*D8!Z=10!;HI"0.I`_&F&>$=94_[Z%`$.I_\@J[_P"N#_\`H)J.
M2WC%I),D9\Z2#82G4C'''3BC4;JW.FW2B>(DPN,!QZ&L/3[N0^(]3A=IVA\D
M=\+$`HYP3U//(%`&AX3@:VT*.,CY=[%&Y^<'G/-;597AORO["M_)F,J8ZDD@
M'T&>U7;^Y-I922KRX&$'JQX`_.@"M,/[2O3;=;6W(,WI(_4)]!U/X#UK1J"R
MM1:6J0YW,.7;^\QZG\33KF=+6UFN9/N0HSM]`,F@#G;Q[B[U"73VCCDOF#B.
M1U+0P)C(Q_MGCK_+BJ]TMOITR)8++>WID*/-(WFO'N4<8.-RG'X9-6["QU`:
M#+<V<P34;N02N\J]>>00?0$@$=@*U=/TFVL1Y@AC$[<LRK@`^P["@"U;&5K:
M-IXUCF*C>JG(!]!4M%%`!1110`4444`%%%%`!1110`4444`%%%%`!1110`44
M44`%%%%`!1110`4444`%%%%`!1110!4O-+L[]T>XA#NA!#=^.@/J/:LJ\T>Z
M%C-<27,4U[$YEMI3$1Y//W1C)QV_.N@I&SL.,YQVH`S?#ER+O0K>=5*!]Q"M
MU7YCQ6G63X:+'1_GW;OM$V=P&?\`6-UQQ^5:U`!6?I2A)+Z,=KIF_,`_UK0J
MC9$_VCJ(["5,?]^UH`O4444`8%Z0/%\1]=-D_P#0Q6AJG_+F?2Y3^M9U_G_A
M,K8C_H'3?^A+6CJO$=J?2ZC_`)T`7ZJZD2NFW#!U0B,D,XR!]:M54U7=_95W
MM5&;R6PKXVGCOGM0!9B.8D.0<J.13JC@S]GCR`#L'3ITJ2@`HHHH`****`"B
MBB@`HHHH`****`"BBB@`HHJO=7UO9!#<.5#G`PI/\J`(]1N9(84BM_\`CXN&
M\N/C.T]V_`9-26EG%9Q;(\LS'+R-RSGU)J&1))M8M9`A,$<+MO\`1R5`'Y%J
MO4`<QXS4L=,RN4-TJOQV++4WAJ"5+FZE>VBM$("K%%NPP&<-ST)S3/%Y^?2E
MYYO8^?\`@2UI:7HPTN>X=;N>=9B"%F.2G7@'TYH`;8VEO<-=O-"KM]J<9;GC
MM5Q;"S3[MK$/^`"JVF-B[U&,?PW&<?50:T:`(?LEM_S[1?\`?`KGEL;R/Q!K
M%P-/>19XD2-C(`L@X!'MCD_A73T4`9/AJPGTW1TM;A55U=N%Z8JQJY`L@2I.
M)HR,>NX8J]5'61_Q*IF'5,-^1!H`O5G>(0Q\.ZAM_P"?=\CU&.1^5:-4=:0R
M:%J"#JUK(/\`QTT`36&PZ=;>6AC3REVH?X1@8%6*HZ+C^Q;+`P!`@QLVXX].
MU7J`"BBB@`HHHH`****`"BBB@`HHHH`****`"BBB@`HHHH`****`"BBB@`HH
MHH`****`"BBB@`HHHH`*#THI"RJ0"P!/`R>M`&/X9PME=1J,;+R48V;<9.>G
M;K6S6%X8(5=67"JL>H..,XQL0]^>];44T4\8DAE21#T9&!%`#ZHV7_(2U+_K
MHG_HM:O5GVI`UJ_7U6)OT(_I0!H4444`<]J!`\8VA/\`T#Y__0EK1U@XM[8C
M_G[A_P#0Q67JS,GB^S9(FD)L)Q@$#NOK5K6KP[(8S:W'RW4)W!,J?G'`/K0!
MM56U)=VF72^6),PN-A.-W!XI/[0A$7F.DZ#.,&%L_D!5?4KVU>QN[=BS.UNY
M\O!4L-I.`<>E`%ZW&+:(;=OR#CTXJ2J=E?6<EE$T=Q'L"JO+C@XZ?6K8(8`J
M00>A%`"T444`%%%%`!1110`4444`%%%%`!1110`5SGC4*VF6T9.";I"#C.,=
M\>E='6%XML;G4-)2&U2-Y/-4XD8+Q]30#-J(8A09S\HY_"GUS[7=]%XEM-.2
MY`ADM_,=7P6!'8#'(X]?SKH*`.3\;2W"W&E1QVHD4WD1W[\'[ZY`'KTKK*Y;
MQW"CV%I(X!$=Q&<9(_Y:)Z>V:ZA5"J%7H!@4`9NG_P#(9U;K_K(O_18K3K-M
M!L\0:@G_`#TCBD_0K_2M*@`HHHH`*I:Q_P`@BZX)_=GI5VJFJKNTJZ`_YY&@
M"W4-XGF64\?]Z)A^E/B?S(4<_P`2@_I3B,@@]Z`,[PZRMX?LBNW'E`?*"`/S
MYK2K'\*/YGAJR.[=B/&?,W_K_3M6Q0`4444`%%%%`!1110`4444`%%%%`!11
M10`4444`%%%%`!1110`4444`%%%%`!1110`4444`%%%%`!7-^,_(2UMI;C[1
MM#LH\C;P2IZY[?2NDI&56&&4-]10!SWAAMZZF'9<M*K'$F_&8U'X=.E)X+MO
MLVF2I'?6M["925E@SG.`"#GZ58T[!UC68Y%+IB/*G:V00W'';CH>:B\&26LN
MDR-:6;VD?G,/+:0OTXX)`]*`.@K-A('B6[7N;2%C_P!]2#^E:59ZJ5\1R-V>
MT4?D[?\`Q5`&A1110!SVJ'_BKK(=S87&/S6M#6O^/2#VNX,?]_%K.U4L/&.F
M@#.ZRN1_Z!5B\U"'4-(@N(0Z_P"FP(R.N&1A*H((]:`-JBBB@!CQ12#$D:./
M1E!IP`50J@`#@`=J6B@`HHHH`****`"BBB@`HHHH`****`"BBB@`KG?&BK_9
M<$CJ[K'.I**^W=^/MUKHJP?%UL+G380;Z*T"SJ=TIPK'L,T"959'_P"$VT^0
MNQ3[*=B`X"C:>OKR.OO745SHM6_X2NSD>6(LMN2FTX)0#&W'?DDY]![5T5`S
MEOB"VS0`>WF#].?Z5U`Y4?2N2^(L4TN@_)<F.,;B55022$8]?3&175Q-OA1O
M50?TH`H)G_A)ISV^Q1?^AO6E6>%QXB9NS6@'Y.?\:T*`"BBB@`JO?@'3KD'O
M"_\`(U8J*Y3S+65/[R,/TH`CTTEM+M&/4P(?_'15FJFE'.DVGM"H_(8JW0!C
M^%?^0#"NYCL)7+,&Z'';^1Z5L5C>%SC39DQ]R[F3.T#.'([=>E;-`!1110`4
M444`%%%%`!1110`4444`%%%%`!1110`4444`%%!('4TFY?[PZXZ]Z`%HK$_X
M213=F!;4M\TBJP<?-M'&/J>*N6&JK=K,TL)MA%CF1A\PP"6'MSC/M0!?HJ)K
MJW0,6GC&W!.6'&>GYTU[ZTC)#W,2D,$.7'!/04`3T55_M*PR!]M@R6*C]X.H
MZBFKJ^FNT:I?V[&0D(!(/F(H`N45$+J!IV@$JF11EE!Z?6LG5_$D>GF-;:$W
M;-)M;8?E7'WAGLW.<&@#;HJC-K.GVUF+N:YC6/.TX;=AO3CO27FLVEI:"X5Q
M.9%)B2-AF3'4#WH`OT5SVG^*X'L7EU+9;3*>(U.69<9!V]1QZ^E9,_BR\*^0
MMQ&;A)75O(7(?)^0`$9Z'D^U`&Y9)CQ-JT;`@2Q1-G:%SPPX(Z]>IYIGA&":
MWTR6*:)(RL[`;'W`X.*H6]M/JOB&5EFN881;()I!`8O.<'H2>HQGI7310-!$
M(H?+1%&%54P!0!/5*3`URW]3;R9_!D_QJQMGY^=/;Y:IR><-9M@73)@EQQ[I
M0!HT5&5E/_+0#_@-174YL[22YFEQ'$I=R$SP.M`&1JX_XJ[2".]K=#]$JG>W
MRR:W)9FW$9\RU8ONSOQ*O)'KSUIDVIPZKXCTB>UE;;Y-PN63&,HIJO<EAXLD
MRRKYGV=M@().)$^;KQ^5`';T444`%%%%`",P12S'``R34$%]:73;(+B.1L9V
MAN<>N*6]5'L9UD.$,;!CG'&*YWP_=?:]2AWNK>3`5B(^4LO'4#J/QH`ZFBBB
M@`HHHH`****`"BBB@`HHK$U#7VM9)X8U@61`P3S92I8JH).,8QR._-`&W6#X
MMEL8M.C-]9/=(9!@*VW:?7)K:@?S8(Y,@[E!R.AR*PO&D-Q-H\:VT#RLLZL2
M@!*8[X/6@3(POG^,+66.%@D%N$+.A[J3@'H>"/UKI:YJ2_O(?%.F6IN&6">W
MYAP.2!G+#L?I72T`CG?'$7F^'91W"R8^OE/6UI[^;IMK(/XX4/Y@5F>*H#<:
M="F"1YQS@^L;C^M6]`?S/#NFR?WK2(_^."@8YR5UV'T>W<?DR_XU>JE-D:U:
M>AAE'ZI5V@`HHHH`****`*&B$G2+<GT/\S5^L_0^-)B3NA93^#&M"@##\-95
MM3C*@;;^4C"$=6)Z]^M;E8FA@)JNM(,#%V#W[HI[\=^WXUMT`%%%%`!1110`
M4444`%%%%`!1110`4444`%8VNR7'VO3K=)Y(H+B8QS>6I!8$''S?P_UK9K$\
M0`"\T=SMS]N0#).>A]./SH`L-H-J^[?-=MN4(<SMT':E;0+%V9G\]BY!;,[\
MXZ=ZTJ*`,S_A'M-W%O+FR7WG_2'^]Z]:!X>TP%3Y#Y5BPS*_!/4]:TZ*`,U?
M#VDKMQ9)\JE1DG@'J.M..A:21@Z?`1MVXV?P^GTK0HH`H_V)I>2?L$&3C/R#
MG'2G?V/IO>Q@/.>8QU]:N44`86L>%++5(HDB$=H8V)S'"IW9&*S=-\)VPU&6
M.2;SH;4Q@@Q*`[9+_P#LP_*NN/0_TKF?"9_XFNNCR6C_`-*SEV)9NO4'I0!%
MJ.@SZ=)-<6A:6VF<--\I>:)1UV<\Y'&>H]Z=:Z1_:MUYZ1RV]F!M:5OEDNEV
MX(*]A_M=37544`86J^%K.[ME%FD=K/&!Y>`?+;'9E!&?KUK'MM+O)$.FBQ,<
MZOF1Y$Q;HN/E*8/S$=O7G-=K10!S6LZ78:;X?>/AKB0JBS2-\\KD;.3W^4D8
MZ8JW!X5TF*X2Z6-VD5E<,9#C(Z'%9_C[C2[9R%"K<IN8KN.,]-O?I^&*Z:!U
MDMXW1E964$,O0\=J`)****`*.M:@=+TJ>[14>1%^1';:&;L*IQ7GVRYT6[*;
M&G23*^GRY_I3O%<=M-X=NDN[F.V@*C=(ZD[>>V#G/TJK:*D4?AQ$F$Z@NJR*
M"`_[IN>>>U`'153U<E='NV6-92(6(1ER&..X/:KE(RJZE'4,K#!!&010!YYI
MQF?Q/I\MQ!%;NR7'[N``)_JEP1CVK0OO[/;Q$&03B]'V=6X'EE=\?XYZ5=U>
M"&#Q9H:PQ)&IBNLA%`'W%]*S;YK*;Q2@-C<1W,36[?:?,8(XWH,;>G?]*`.Y
MHHHH`****`(KJ2**UEDG<1Q*A+L>@'<U1L=*L;"Y$T4SF21=H5G&#W.!V_"K
ME["]Q93PQ[-\D95?,7*Y([CN*Y[1-*>VU@E0C"V)$VZ4L5=E!RHP,9%`'444
M44`%%%%`!1110`E+110`5R&NVJR:E<$R$%%WA)FP'R`/EZ9QC@$]2:Z^L;5M
M'AU"Y\YK_P`@Q@;TPN/Q/!_,XH!FG:,6LX6)+$QJ<E=I/'IV^E4?$:7+Z/(M
MI>):2[EQ*[[<<^N>M:4:[(U7.<`#([U@^-HXI?#<RRY*AT;"C).&'0=Z`*]W
M(L'B/17GFS-)'Y8*MN$AQR>GKWI?!MY=7(NTN+J6Y5"-LDBXSDGIR:2..(7.
MD2M:74K2(A5P%:.,X[@\CUXJYH'V.*ZNK.VBG1K7$;^:V[Z8/XY]*!6#Q3IE
MKJ5E"MVC.@F4%1(R@@^H!'?%2^%'W^%-,P<A;=5'X#']*MZHH>S`(S^\3_T(
M5G>"CGPG9#^YYB?E(P_I0,O78/\`:^GGH/WG/K\HX_SZ5?K.U$[=3TH^L[K_
M`.0G/]*T:`"BBB@`HHHH`S]%!_LX29SYLCR8_NY8\5H50T7C2H5SRI8'_OHU
M?H`Q]$.^^U:3#JS79!!?*\*H!`['`Y^M;%8NB_+K&MKMQ_I2G/E@9_=J?O?Q
M=?PK:H`****`"BBB@`HHHH`****`"BBB@`HHHH`*QO$)_>Z6N6&Z^CY5P,=>
MH[ULUA>*]JVEG-(A:.&[1W'EAN!^OY4`;N<\BBN)M-6U<ZA*-#L#-IDLZ/O9
M,&,,BEA@D$8],<9KMJ`"BBB@`HHHH`****`"J-MHUC9ZC/?P0E+BX_UC;SAO
MPZ5>HH`****`"BBB@"*XMH+J/R[B%)4SG:Z@C-.BBC@B6**-8XT&%11@`>@%
M/HH`****`,?Q5-'!H$[200SC@>7-T//U!R.O!S4<,4/F:`(AY<2JTD:KG&?+
M(QSST8G\*3QFJOX;G0Q>825QE`P&"#DY[<4D60OAPF,1D$@KMV[?W+<8[<T`
M;U%%%`'-ZT=WB_2%[I:W3ISU.$&/UK/N+^\_MZ339GE:".:!EW`<9D0#IV_&
MM'6E_P"*PT0C^*"[7_QU:@U+2+B/6O[5,B^1));J4WG.1(G\.,=CS0!U5%%%
M`!1110!5U.5X-,N98V=72)BI1-[`X[#O6%H%S=S:HP,R-&%;S_GW%W&`"#@5
MT<Y`MY"QP`AR<D8X]N:Y/PG<PWFJS36V6A";<R2%F'T!&0#[YS0!V%%%%`!1
M110`4444`%%%%`!7(^(-T&M/()57SD1"@R"R\CZ$Y(`Y[FNNKG-:0S7\BS23
M6T0"A9$@WJW!)SGC`Q^9H`W;2,16<$8#*$C50&ZC`[UF>*C:1Z,\]W%.XC8;
M?(8JX)..#6G9NLME!(N=KQJ1GK@CO67XM#GP_-LE\L9`8],@G&,]J`,B]G#:
MKX:>"ZN!#(!M0MRXR/O>M6O#&IWU[J^H07,HEBAX1AG&<^I'\J9*\%M=>&X)
M+=)\@A96;.TX&/KSS^%7-$%C:ZI=V%J\[2P(/-,B``\]CWZT"+VMW%O;:=YE
MS*D48EC)+'`P'4G]*S?`SA_#S!6#*EY<JI!R"/-8@_K6EK4$4]@!+$D@6:(C
M<H./G7/Z9K-\&1K!9:E;HH58M3N%"@8`&[/'YT#-+4QBZTU_[EU_-&']:T*I
M:H`8[9CU6YBQ_P!]`?UJ[0`4444`%%%9&I7X;5;?1Q,\#74;,9$'S8&>`>QX
M/-`$^C-FWN$_YYW4J_DQK0K,T.V2S@N;9-VV.Y?!9LDYYY/XUIT`8VEJ$U[5
M^.6D1B=IY^11UZ'I6S6+9,%\7:G%P"8(7ZG)SN'3IV^M;5`!1110`4444`%%
M%%`!1110`4444`%%%%`!6!XS4'0MY7=LGB/W22/WBC@C[O7K6_6-XM4-X>G)
MQ\K(V6S@88'M0!6B==)\4K8VEOLBO5,LQ>4G<_\`>`.<GL?I715SNJ:;>3>)
M--U2VMQ,D*XDW28VY]`?K714`%%%%`!2``9QWI:*`"BBB@`HHIKJ&1E)(!&,
M@X(H`=16#X4OI[RUN5GG>9H9=@+$'`QTR*WJ`"BBB@`HHHH`****`([BWBNK
M>2WG0/%(I5U/<5D7EG/:W=E*+QY;=;E`(I0&*DY&0W7OWS6W5+5!F*W_`.OJ
M+_T(4`7:***`.=UW(\4^'S[W*_G'_P#6J_J?.AANF/+;Z88&JVL@?\)#H1./
M];,,_P#;,TZ>^AN]#N40E98DP4?[W&.<>E`&U10:*`"BBB@"MJ"3R6$Z6XC,
MI0A1+G:?8XK"TX&/4++S+:5""8D+2HPQL)/*\GIT/UKI)"5B8A=Q"DX]:QK"
M_P!-GNX%AL?+N6Z[8\!"4))S[?=SZF@#;HHHH`****`"BBB@`HHHH`*YS6IG
M-]/'#]J)CB&YH#D)D'[P[#WKHZP=7T:]O;[SXWB>/@;68J0`#D=#G)P>:`->
MQ4+86ZC;@1*!M;<.@Z'O]:CU'3H=3@$%P7\O.2JG&[C&#[<U-:I)':0I,$$B
MQJ'"#"YQSCVJ6@#$FTFVAO=/19)PR@I&VX?*%&?UQ^E7K;2X;74;B^1G,EP`
M&#'(&/2C489F,%S;KODMY-Q3^\I!#`>^#Q4UM>072YB?YAPR-PRGT([4`1:M
M)Y6FR2?W2I_\>%9OAG"WFO1@8QJ3'\T0U<\0SK;Z)<NR._RX`1223VZ=/K5'
MPU,)]2UJ0))'ON$<I*I5E)C7@B@#3U7BWA)Z"YB)_P"^Q5VJ&N'9I,TA_P"6
M>U_R(J_0`4444`%<_>VET_C&RNHU!@C0A]S#/0\@9SZ=N]=!7/W]M9/XRTZ9
MS<_:DB8IM3=&%Y')_A[T`:=EQ?Z@`,#S5_\`0%J[5&S)_M'40<?ZQ,?]^UJ]
M0!B0?N_&=V"<>;:1$#?C."W;OUZUMUCON3Q?'ACMDLR2!MP<,.N>>_;\:V*`
M"BBB@`HHHH`****`"FLZH`78+DX&3C)]*=4<\$5S$8IHPZ$@X/M0!)1110`4
M444`%97B8X\.7QSC$+'._9V]:U:H:XADT*^1=V6@<#:`3T]#Q0!;MSFVB/J@
M_E4E5=-D\S2K60G[T*D]NU/:]M%&6NH0/7S!0!/138Y(YHQ)$ZNC=&4Y!IU`
M!1110`4444`%(VTH=^-N.<],4M8^K:3?:GJ%OB^5--`Q<VVSF;VSZ'C\O>@"
MOX6M9K8WK$1FWEF+1O'PI]<#T]^]=!2*JHH50%4#``'`%+0`4444`%%%%`!2
M$X!)[4M(3@9ZT`0VM[;7JLUM.DH4X;:>A]#Z5!JY*VD<@_Y9SQM_X\*RO",C
M.VJ(W!2[/RDC<N1GG%:/B)MFA7+CJH4_^/"@#2HHHH`P];!_M[0&["XD!_[]
MM6#MD75M2;RHRGER`2`G>/E7@C/3\*Z#6Q_Q-M$;TNG_`/1;54NM#M8+2[U=
M2YN)H&+%L$#('`].E`'2T444`%%%%`#7SL;:,M@X'O7.Z9:Z@NIQ?;HI`L1+
M))@8)*G(..P)(YZUTE%`!1110`4444`%%%%`!1110`4444`%%%%`!4$]G;7)
M!FA5F'1NC#\1S4]-D(6-B<\#M0!CZQ9SP:)??9[MV3R'/ES#>.AX!ZC\S46A
MM/\`\)#K"W*1I(RV[XC8E3\A'&?I5/0Y+N7PIJ(NC<2`&7RVGDW,R[>!GVYJ
MWIKAO%][ZR6%N_ZL*`-#7_\`D!7?_7.M"JVHH)--N4)QF)OY4^T<R6<#GJT:
MD_E0!-1110`5S6J[AXUTHF5PFTX50O7G.>^"/PKI:KRV%I-<)<2V\;S1D%9"
MOS#'O0!!;D+KE['W:**3_P!"'_LM7ZST4CQ',V.'LT&?H[_XUH4`8]V,>*K)
MMA.ZW<9$8;;R#R>H^HK8K#U=E3Q+HC':-S3+DDC^'/&/Z\5N4`%%%%`!1110
M`4444`%%07AD%E.8B`XC;:2#P<>W-8?@R\GGTQH+N:6:>(C+.2P((XPQZT`=
M'1110`4444`%5]0B\[3YXB`=Z$8*;Q_WSWJQ4<XS;R#C[IZY_IS0!SGAS7K"
M]T>RTT.WVDVF"I0@?*HR*T--N;"/3-,%PT$<US`GEJP`+':.GYUSVA6NFV?]
MDW<8'G;9DG="S=1C^8J6^15;PNDA,923"AE],`<>N*`.CT<@6TT0&!%<2)@=
MOFS_`%K0K,T88;41GG[:Y_,"M.@`HHHH`****`"BBB@`HHHH`****`"BBB@`
MHHHH`Y_RE\,W=S>OYSV-RYDFDWY%OQU8'G'N/QJ6_P!1L]7\+W5WI]PMQ"5.
M'7IE3R/TK9=$D1DD571A@JPR"*I:C;P0:%>0PQ)%&()"%C4*!\I["@"ZC!T5
MQT8`TZJ^GL7TVU8]3"A_058H`Q=>=([_`$:21E5%NV)9C@#]V]27<\5QX;N&
MBD23$)!VL#@XZ'%5/%P7R-/:0L(_M1#;2`<&*3H3QVK+T-(H]`UB*W4^4N,;
MI`S'Y!UQ0!VM%%5KZ_@TZ'SKC>$Z952<<4`6:*K6E]%>&145U:(@.KC!&1D?
MI5F@`HHHH`****`"BBB@`HHH[T`%%%%`!1110`4453U2[-G9.Z21QR$$(TA^
M4'&>:`+E1W!46\A<,5"G(7.<>V*S]!O[R_M9'O8TCD1]NU3GL#S^)K4)`&3P
M!0!R/A:<-X4O2L+NJR2*(TY8C:!3]$GED\3P//`8))M'3*;@P^60X((ZY!S5
MWPY?SZCIUY).$!69U4*FWC'Z_6JE@"GB;1PW5M'(./8I_C0".BO?^/&X_P"N
M3?R-)8?\@^V_ZY)_(5).F^"1/[R$?I5?2)/-TBU;.?W8'Y<4`7****`"BBB@
M"D_&NQ'/+VS\?1E_QJ[5*4@:W;9/+6\H'_?25=H`P]<^36M$DP<B=U^_LZI^
MOT[UN5B>)W\BWL[H!BT-TK84`Y&ULCGZ5:T;5QJ\$DGD-`\;;6C?J,C(SZ4`
M:-%%%`!1110`444AS@XZ]J`.;T?6KB^.H6]U<#S$#^4I4*2`6&X8ZC@56TC4
MFTK0GG2R9G:Z59%9L9RHRV:=H"M;'4;C4+:1#"#N\R,XZMG![Y![=L4RR6RU
MKP_,T<:Z9!%<*\Q+;@=H'KT&,#\*!'2:9??VE81W7E^5OR"A;.,''7\*MU0T
M:,1:<J+-#,H9MKPC"XR<#KUJ_0,****`"FR?ZMOH>^*=4-Q=VUM@3SI$6Z;F
MQF@#!TN>X.@6:PRM"TU[+&7!$A`WOW(P>G6K<1L+VU@DU1X)9[:9]CR$*5*N
M0#C\!5/0;".]LI?/EG+0WDI4+-@`YSGY>/XJDDLKRWU"%E\J*-YS&-[M*74J
M3D@]#Q0!?TN1)+O4#%(LD9F!#*<CE1FM*LS1=2BOEN81(KRVDS12%4*Y]#BM
M.@`HHHH`****`"BBB@`HHHH`****`"BBB@`HHHH`*BN8O/M9H?\`GHC+^8Q4
MM%`&;I][%#I\$$^^.6*,(ZLAR"!CTJ?^T[3_`)Z-_P!^V_PJW10!S?B2ZM;E
M--3S&V?;T#_(PX*.#V]Z84L--\/7<%J)"TB'.$8@GH.<5<\3DB+3"/\`H)0_
MS-6KWYM!N<9_U;_S-`&C5>]@@N81%<.40L"-LA0DCW%2Q-OA1LYW*#^E9?B8
M(VD@.JL#*B@$')R<8!['GK0!/HQBDL%FC;F4!F7?OVGTS6A7/^')!]INU=HF
MEVP[O*!!7A@`5[8P?\XKH*`"BBB@`HHHH`****`"BBB@`HHHH`*0``8%+10`
M5FZW83ZC:+#`\(.22LHRK<$#\B0?PK2K$\4L%L806==TA&8WPWW3T]??VR:`
M+^EV[6UH$DA@C?\`B,'W7./O=*MLJNI5@"",$'O61X=,ABNC+$(F:4-M1PR#
M**?E]!_7)[UL4`<]X=B?3XKZPG*+(LK.B[N2I'8$=/>H;?C7O#LA'^LTV51]
M<1FMO4M/MM0MBMPI!56V2H<21$C&5/8US.IH;9?#AL;B5B(W6.:>0*Q4JI^9
MB"!P/2@#LJS/#ISH-J?]D_S-+H=[->6LBW3HUQ!*R.4((/H>/44NA#9I,<?_
M`#S9U_)C0!HT444`%%%%`&=?';J^F-_>>1#_`-\$_P#LM:-9^I#%YILO]RX(
M_-&']:T*`,7Q0A?3H<`DBX3`"[CG!`X^IIGABUO+=+EKQ)0TC*5,G7&*D\6?
M+H+N2`$FB.3G'WU';GOVK70[D4CN,\4`.HHHH`****`"D8;D*@E21C([4M(<
MX.!D^E`&%9-#+]LM!JL]ZL,7ERQ%`74\@D''.?2H;.*PCT._73EEF608<2`=
M=N/RP*B\.`/KNHSAE(F'*\Y!!/7GFK&D"SO;74+?['!8E6_>F(_Q$'YNG:@0
M_P`&[_[!3E##O;RMH(.,GJ,<5O5GZ)#%;V'E178NE#G]X``/I6A0,****`"N
M?\4LD2VL\D+2(K,"45F()'^R#^M=!10!S'AVPBN'U07'F[DO2``3$,&-#]U3
MCN:W(M+M(94E5'+(<J7E9L'&,\GWKE98;R+4]7:RG-L([F)Y"`ZG#$#(7.T\
M`\GK6U:7CP>(Y-.'VN=)(@[2RL"J,/3IC(]!B@"GX5<#5=7C=T$AG+*@&#MR
M<&NGI-J[MVT9]<4M`!1110`4444`%%%%`!1110`4444`%%%%`!1110`4444`
M%%%%`&)XIP+2P8_PZC;_`/H>/ZU=NO\`D#7/'_+.3^M4/%O&GV1]-1MO_1@K
M0G&[1[D'O')_6@":R;?8V[>L2G]!4S*K##`$>A%5M+.=)LSZP)_Z"*M4`,6&
M))7E2-5DDQO8#!;'3/K3Z**`"BBB@`HHHH`****`"BBB@`HHHH`****`"F20
MQRE3(@8H<J?0T^B@"O:6%K8F7[+$(A,X=PO3.`.!VX`X%6***`&N,HP]0:Y+
M5K5;JW\.6K/M225H2Q4''[IL<'W45U_7BN4N=S:=X?D?AH]44'/_`&T6@#;T
M;2O[(M7@^T&<O(7W%`O7M@<4[2N(;@#H+J4?^/&KU4=,^4W<?]VY<_GS_6@"
M]1110`4444`4=4P$M3W%U'C\\5>JCJO^JMB3@"ZB_P#0JO4`9'BH9\.71Y^4
MHW#;<8=3U[=.M:<#;[>-\YW(#U![>HZU2\0*7\/W^.JP,WY#/]*LV!+6%N6S
MDQKG./3VX_*@"Q1110`4444`%(P)4@'!(Z^E+10!AZ/X<_LJ\FG\])1,FTXB
MV$<Y['CJ>G4FG:5X>&F6M[`+D2?:R26,0!!P1D\G/_UJVJ*`*&C:6-(L!:+)
MY@#%MVW&<_B:OT44`%%%%`!1110!PFJG5SXDU*#2X?-69(3.%YQ@G'WNG'IQ
M6G=6EW#XXMK\6MQ-`8?+:1$4A,^ISG`/-6O*\SQA-&L[QYLPS".0Y/S#&01Q
M^%&ILMO'<JLNI++#%O20%BA...1P<8YH`WJ*J1ZG9R7"6PG43N"5B;Y6('7@
MU;H`****`"BBB@`HHHH`****`"BBB@`HHHH`****`"BBB@"@D]W>3SBW>*&*
M%_+!9"S,1UXR,"I!#J'>]A_\!S_\53;$;;O4%`P!.#^:*:NT`<UXHBO5T^U,
MEU$X^WVW2'&/WB_[57IK:\&F7&V^7:$DRHA'/7WJ+Q>/^)(C?W;RV/\`Y%6K
M\I/]F76>RR?UH`?IA!TJS(&`8$P/^`BK54M&.=$L">]M'_Z"*NT`%%%%`!11
M10`4444`%%%%`!1110`4444`%%%%`!1110`4444`-=2\;*&*$C&Y>HKC8[46
MV@V,HN)I0VKHV)&SM/G%3CTSUQ[UVE<OJ&V+PDKIM417Z/Q[7(-`'45G:>V+
M_5%.`%G4_G&IK1K.L1MU?4UX^9XW_P#'`/\`V6@"73]3MM31WMM^U#@EE(S]
M/6KE<UX,8F&_4L#BY;@+@CD\'_/:NEH`****`,_7#LTMY#_RS=&_)A6A6;XA
M3?H5T/\`9!_(@UH@@@$=#S0!4U@9T2_`&3]FD_\`032Z6,:9;C;M^0<;0OZ#
MBI+Y/,L+A/[T3#]#5+PTV[P[8MMVYB!QLV]?:@#4HHHH`****`"BBB@`HHHH
M`****`"BBB@`HHHH`YZ_A-QXLAA\YH]]JWW7R>".W:HKZU*_:+:W>:::&/>[
M3+^Z48S_`,"/'05/JL<K>*]*$4S1;XY@2`IQ@`_6M!]-DDC9'U&Z(88.-H_I
M0!F:PT6G:!_:80SSAXY3([X8G([]AVQTK=MIOM%K#/C'F(KX';(S69K^F377
MAUK"R0.Z[`JNV,A2._T%:%@K)I]NCQ&)EC52A.=N!C&>]`%BBBB@`HHHH`**
M**`(KBY@M(C+<2K%&#@LQP!3HI8YHUEB=71QE64Y!%9WB0.=!NE1'=BHX3&>
MH/>I="8OH5DS$$F%>1CT]J`+]%%%`!1110`4444`%%%%`%*S(^WZ@O?S5/\`
MY#7_``J[5"V8#6K].^R)OSW#^E7Z`,3QAQX<E;^[/`?_`",E7F^:QO%Z_P"L
M'Z51\8_\BS/_`-=8/_1J5?*XM+SW+G]*`(-!O;2XTNUA@G1I(8(U=,_,IVCJ
M*TZS+"RM[G1[$S0J7^SQX<<,/E'<<U*(+ZU),,XNH^T<QPP^C#K^-`%ZJM[J
M-MIZ!KAR"QPJ*"S,?0`<U72ZN]2#K;K]D1&*/(^&<,#R`O3\35JVLH;7)12T
MC?>D<Y9OJ:`)U.Y0V",C.#U%+110`4444`%%%%`!1110`4444`%%%%`!1110
M`4444`(2`,DX`[UQVH75K)X0UF*">.5[6X9W56R1^\#"NQ(!&",BN3O+2'_A
M%_$L<4"1E6G5<(%X"AA^&2:`.MK.B(CU^];&!]EA8X[G=)_0"K=F_FV4$G]^
M-3^8JN5VZ[NZ&2U(S_NL/_BJ`,GPC)ODU/!#+]HRI#[L@YKI*Q]#TRXT^ZOV
MG6/;/*&1D8DL,GJ.QY[5L4"04444#*>K`-H]X#_SP<_H:ELF+V%NQZM$I/Y"
MENX_-LYX\9WQLN/J*CTQM^EVK?\`3)?Y4`6'&48>H-8_A#`\,6:`8\M`G0CI
MQW_IQ6U6)X2;_B3-'D9CN9DQO+$8D8=^GT'%`&W1110`4444`%%%%`!1110`
M4444`%%%%`!1110!A:Y-#9ZQI5[<,4BC=U9RH(&Y>,GJ.GTK7M+N"^MDN;:0
M21/G:P[X.#^HK%\56L-T=/6X21H_M//EH2QPK'`(Z=.G>K7ADP?V)&EMN\E'
M<)OSNQN)YSWYH`UJ***`"BBB@`HHHH`****`,2^U*TU7S=(LMEY*^4F`/RP#
M^\WKSV'6M*PLH]/LTM8F=D08&XYQ[?2EM]/L[2:::VM8HI)SNE=%`+GWJQ0`
M4444`%%%%`!1110`4444`9T''B&]Z<VT'_H4E:-4%^7Q`_'^LM1^.UC_`/%5
M?H`Q/&/_`"+-P3T$D)_\BI6A@?9;L#N7_E5'Q<`?#-UGUC/_`)$6KT7SPW0Q
M_&P_2@!NC'=HMD?^F"?R%7:I:-_R!K0>D0%7:`,'P[JSWUY?V[VRIY4I/F1C
M"MR1SSUX_2MZL'P]97=A?ZF+BW*1SS>9&_!!Y/H>O3M6]0`4444`%%%%`!11
M10`4444`%%%%`!1110`4444`%%%%`!6).OFZ9KL."<^9QZY2MNL"TODGU#5[
M5;:Y7<-WF/$54G;@C/\`G-`&AH3^9X?TY_[UK$?_`!P4Z3/]N0>GV:3_`-"2
MJWA5]_A;33Z6ZK^0Q_2I[MMFKZ><??\`,3_QW/\`2@"_1110`4444`%4=%_Y
M`]KSG]V*O50T3C284[IE/R)%`%^L;PX2L=]#N)\N\E'WP0,L3C';KTK9K(T4
M%;W5AM('VPX.!C[B]QS^=`&O1110`4444`%%%%`!1110`4444`%%%%`!1110
M!B>)5.W3Y%;RV2\3#XR5SD<=N_>H+)I=/\3RV*`M%<@S2/*XRS^JJ.,<8[=*
MF\6,4TN%P0"MU`>6(_Y:+GZ\=C3+_3;T>*;34K:W$L:)L<M+C:">2!C\:`-^
MBBB@`HHHH`****`"BBB@`HHHH`****`"BBB@`HHHH`****`*3_\`(<B_Z]G_
M`/0DJ[5*4A=;MR?XX)%'YJ?Z5=H`QO%P)\+7V.RJ?R8&M&##"X4`C]X1T]A5
M#Q8<>%=2;^[`6_+FM&#_`%DPS_$/Y4`5M$S_`&/;9ZA<?D35^J&AG.D0D^K?
M^A&K]`!1110`4444`%%%%`!1110`4444`%%%%`!1110`4444`%%%%`%*34UC
MU!+,PR;G8`-CY2,$Y_3%95]J4FEZW/OC\R"Z"1A5'S!\']#T^M/O(($\6VDK
M:?,\D@XND=MJD`\,.G>J/B*;R]2+"=[8AT7S(\[CD#`X[9H$:/@L_P#%)V*G
MJ@=#^#L/Z5;U`'^U=*.<`3/G_OVU4O!AQH&S^Y<SCZ?O&/\`6M#4\*UG)W6Y
M0#\<C^M`R]15>XO;>UEBBFDVO,=J#'4U8H`****`"L_13_HLZ@8"W4RC\)#6
MA5#2QL-Y'_=NG/\`WUAOZT`7ZQ](^76-63;R9PV=F.JKW[]*V*Q-/('B[5T^
M7)CA;OGH?P[?6@#;HHHH`****`"BBB@`HHHH`****`"BBB@`HHHH`Q_%(SH,
MQSC:R-]X+T8'OUZ=*UP<J#ZBLSQ-G_A'+[`8_N6X4`D\>]:4?^J3_=%`#J**
M*`"BBB@`HHHH`****`"BH#?6HO19&XC^TE-XBW?-M]<5/0`4444`%%%07ETE
ME:2W,@)6)2Q`ZG%`$]%5M/O8]1L8KN)'1)1D!Q@_E5F@`HHHH`S;]BNLZ4!_
M$\H/_?!/]*TJSM2&V^TV7^[.5_[Z4BM&@#*\4C=X5U0?].DA_P#'35RT(:25
MA_%M/7_9JKXD&?#.IC_ITD_]!-2Z8VZ/I_RSC_\`010`FBD'282.F6_]"-7Z
MHZ*,:5"/=O\`T(U>H`**KRWUO#,L)?=*QXC0;F^I`Z"K%`!1110`4444`%%%
M%`!1110`4444`%%%%`!1110`4444`8=]=7:^)+2VCNI8X7(9D\G*L`#D;O?C
M\J2,7<OBBX22SM6M?*7+,^Z0'G!`QC!Q@BI+]+__`(2&R=+D);=X_-*[L9SQ
MW[595`/$4K!OO6B97_@3<T`4_"RB.WU"$#`BU&=0/0;LC^=7]3P([<G.!<QG
M]:H>'CC4==BQ]V_+?]](IJWK[^5H\THZQE&'_?0H`R_%%O=2ZEI<D5NT\4<O
M[P!"=G(^;(%=+6%XFC5I-/8ZJ]@1<#:`C,)3_=..G'X5NT`%%%%`!5*Q'^F:
MA_UW'_HM*NU1M&QJU_'S_P`LY,?48_\`9:`+U8T6(O&-PN['GVB/C?C.TD?=
M[]>M;-8\K%?%\(RV&LR,!@!]_P!#R?PH`V****`"BBB@`HHHH`****`"BBB@
M`HHHH`****`(;NUAO;26UN$#Q2J58'T-4$TB\545M:NR%8DX"#*]AT_6M6B@
M#G]0T[4[>VB>UU"]N9%8[UWJNX'OT[?K4%KIVM2Z@8[JZO$M/*=1()0&W9^5
MC[X[8XKIZ*`.?OK;3;"18[S4KQ7N%"QYE<X(ZD8[G/)-6O#<C2:8X9]_EW,J
M*?,+_+O..3R>,4_5K&YNGC>U2U+JK#?/NW)G'W<>XJ+PX'6&]21R[)=L"Q<-
MD[5)Y'N:`-BBBB@`HHI&.U2Q[#-`'-2OY'CZ$,T,4<ML1@D;G;G!]OZUTU<E
M>^(]/N+RWGCLYFDMVRX>->4/'J3D$@BKVH>*[>ULRT$+S71R/(4;BF'V;FQV
MS^=`&_17$OJ)M?LUY'<7;WEQP]RR'R6.?NE._IA>G7-;4/BFS^PO<7220LF?
ME"EA)@X.PCKSVZCO0!MD@=2!VYJKJL4DVDW<<7WVA<``9SP>*Y6>YN]?:240
M>?'&?^/=22JKGAD*D$L<').,=AWJ_I&MWD9\FY@EG@1<M,OS-#_LDC._'0D<
MC'3O0!;\'N3X=MXV5U>+<K;E89.3TW<FMNN'3Q9<V=NS6T%O,L\VY(PSDH6&
MYEZ9R#G\ZV]/\5Z?/80S7EQ'!,X)9`&P,$CTH`W:***`*&JCBT/I=1_SJ_5'
M5CLMX9#_`,LYXV_7']:O4`9_B`9\.ZD/^G63_P!!-)HQW6R/G[T,1_\`'!4&
MOZA;C2KZU0M-,;:3*1#<5&T\D]!^-0:+!<7=C;^?<>5']GB)B@)&X;1C+=>G
MIB@"YI,ZQZ3A?WLD1<F-""WWC@8JS/!<7.T"X:WB*C<J`;\^F[M^'YU7T&&.
M#3C''&B!97!VC&?F/7U-:5`$-M:6]G'Y=O$L8/)QR2?4GJ?QJ:BB@`I!G'/6
MEHH`****`"BBB@`HHHH`****`"BBB@`HHHH`****`(YK>&X39/$DB^C#-95E
M9Q6/B.6.W#+$UFIV%BP!WMTR:V:Q;BTN'\5V\RW\L:+`3Y2JN'YY#>H[^U`$
M>B'9XG\0PY_Y:PR?G&/\*O:[&9-%N5']T'\B#5#3OD\<ZRN`-]M;/]?OC^E:
M]^-VG7(./]4W7Z4`87C!G\C3Y$F\I3<I\P4E@>V".GI^-=+6"(X?$,-KB!V@
M@8%I9"R!B!_"._/>MZ@`HHHH`*SX,_\`"07N>AMX<?\`?4E:%4<;=>)[26W\
MF_\`LJ`+U8UX"/%6GD9P\$@.%!Z8/.>G7J*V:P]7&/$FB/M4@&8$E2<95<8Q
MT^M`&Y1110`4444`%%%%`!1110`4444`%%%%`!1110`4444`%%%%`!6;+HD3
MW4L\5U=6_FY+I#+M4M@#=CUP!6E10!EG08F#!KZ^;*!`3<'C_:^M0WN@CR<V
M;S&0R1Y#3M]P$;@.>"1GFMJB@#CY=`UIXT,;;9?,#2%[@X(R>@''3''J#6]'
MH-BJH9(S(ZDL2SL021SP3T]!6E10!E1^&-$C*%=,M\HI4$H,\]?QI&\-V"S1
MM;1BVC5/+DCB&!*O8'_.:UJ*`(IK>*>!H77Y&4K\IP0#Z$=*JS:-9RV8MDC$
M>TJ4<#YE8#`;/KCO5^B@"MI]A!IMHMM;KA5Y)/5CW)]2:G2-(EVQHJ#.<*,#
M-.HH`H7NE+=W5O<I<2026^[;MP5.[@DKT)]ZR-1\/P:?X?U$PM)+(]ML!9%8
M@#)P!@=22:Z:N,U^+&L72^9*QFC(*&-S&%V'N/<4`=A"_F01R?WE!_,4^L;3
M-5A71]/0!Y[A[6-O*B&YA\HZ]A^-61;7MXQ-Y+Y$.>(8&Y8?[3?T'YT`5/$6
MH0#3IK>(F:=60E(QG;\XZGH/QJT;2]O?^/V?R8C_`,L+=B,_[S]3^&*34;."
M#1)X;>)8T`!PH]"#6BIRH/J*`,_4+2&V\/WL%M"D2?9Y,*@P/NFH_#O.D6+8
M^]90'/\`P`5<U+_D%W?_`%P?_P!!-4/#6/[$T[!_Y<(/_0!0!/HQS!<C^[=2
MK_X]6C6=HWW+W_K]E_G6C0`4444`%%%%`!1110`4444`%%%%`!1110`4444`
M%%%%`!1110`53F1?[7MI,'=Y4@S_`-\U<JA<DC6K'T,<P_'Y?_KT`48E\OQ[
M<GG$VFQG\5D8?UK5OP3I]R!U,3_R-9LPV>-[5O\`GII\H_[Y=#_[-6PZ[XV3
M^\"*`([,AK*`@Y!C7'Y5-5#0Y#+HEF[=3$*OT`%%%%`!5)A_Q/(C_P!.S_\`
MH2U=JA=/Y>LV/_319$_0'^E`%^L77L)?Z1,2%VW6S)<K]X>H^G3O6U61X@8H
MNG,"PQ>IR'"_PMW/%`&O1110`4444`%%%%`!1110`4444`%%%%`!1110`444
M4`%%%%`!1110`4444`%%%%`!1110`4444`%%4YM4@CF-O$&N+@=8H1DK_O'H
MOXU$+:^O1F\F^SQG_EA;GG_@3_X8H`EN-3@AE\B,/<3_`//*$;B/KV'XU5O8
M+Z[L)VNIA;1^6Q\F)R#T_B?_``K1M[:"TA$5O$L:#LHJK-J=K+87<MK<)(;?
M<C[,,48#D$>WI0!!X7CBC\-V`A15'D*"5[D#&<]ZUJP_#^G1OHUI<-)-NEA#
M865@N#DC"YXZUJ"SC$4D:O)^\4J27)(^F:`$OL2Z?<(A#,T3!0".3@X_6IH<
MB",'J%`/UQ6`?"]G86%PWGW$F%#G<P/W0<X],UJ65A%%I<-LLDQ11N#%R&.>
M>2/K0!-?KNTZY7UA<?H:S?"QW>'],;UL(?Y5:NM+@>V?+W'"DC]^_I]:I>$3
MN\.Z8W_3C&*`+.ADE;_/_/\`3?SK4K,T7&+\>E[+_,5IT`%%%%`!1110`444
M4`%%%%`!113)(UEC*/G:>N"1_*@!]%%%`!1110`4444`%%%%`!6+JVFVMYK6
MFO.C,P+E2)&&U@,@C!Z]:?XFOIK#2&FMIO*GW#;P#GU&#VI[W`F?29F!5I'/
M#KAN4)/';I0!2UE;G_A*-)^SSQQR/#<(A>/<!PA.>1Z5L+%>\;KN,^N(?_LJ
MR]9)7Q-X>8=Y9U/XQ$_TK=H`S]"79HUO'D'RP4X]B16A5+2\_9Y?:XE_]#-7
M:`,W5]+FU/R5CNS;K'N)VYRV1CL1Q51O#DKS022:G,1"JKM`(W8`&>O7C]36
M[10`5FZ@/^)OI3=A)(/SC-:54=2P'LG[K<J!^((H`EN+"WNGWS!R<8P)&4?H
M:QM<T>UM+(ZC;0DS6SI*?-D=UV`_-E<\_*2:Z*FN%9&#@%"/F!Z8H`CM9Q<V
ML<P.=PZ[2OZ'FIJXNY@$)\X378TP,#'<Q2.Q('1,<X7/1_\`]=:6E:U/;1S+
MJ[+%'&R[)&?.`V,`GOU^]0!T5%(K*ZAE(*D9!!X-+0`4444`%%%%`!1110`4
M44TNJ]6`YQR>]`#J*C^T09`\Z/))`^8<D=?RIHO+8JK"XB(<%E.\8('4_2@"
M:BJS:C9("6NX5`3><N.%]:SM6\016906MS:.0?WP>0952..X[T`;5%<K)XGN
M&1/*N['>`J2*&',I/('S?=`SS[BMH:]I3$!;V-LN4&,GD=?_`-=`&A16:-?T
MUB@$['?G!\IL<>O'_P"NC^W]/(R'E/[O?CR6SCTZ=?:@#2HK+;Q!9@,5CNG(
M4-A;=B3GL..M*==A&[;97[[2!E;5CG/I].]`&G167_;@)PFF:@WSA<FW(X[M
MSVIRZM,[*!I-[@L02548`Z'D]Z`-*BL5?$+R3>1#I5U+*%8NJ,A",.BEMV`3
M4,[ZO>!OM&GSF/9D012K&&;^ZS9R1],?2@#2GU:%+AK6V5KNZ7[T46/D_P!X
M]%_&F_8[R\.;ZX\N(_\`+O;D@'_>?J?PQ59;C4X`ZVV@(HPH4FX5=WKGZ=J?
M]MUPLW_$FB5=PVDW8^[WSQUH`T8+>&UB$4$21(.RC%2UEBXUQF'_`!+[5!O.
M<W!/R]NW6@?V]+"`RV,+[LEE=FXSTQB@"GJM_=7=U<:?:AH/LR[IVEBW1RQD
M>HY'&[WR*PI-.BFMGTZR!\N><13W`P1,Y.?D;KP-V?0#'4UTW]BF7,NIWK3`
M%F94_=I@]CSD@#L33].A2YG^W+&$MU&VU0#`V]WQZGM[?6@#2CC2*-8XU"H@
M"JHZ`#H*=110!5U/_D%7?_7!_P#T$U+;?\>L7^XO\JKZQ*8M*GVKN9U\L`=2
M6.W^M6T3RXU3.=H`H`QM4U'4+2]=1;@6(5-TS8`^8X/.>W'7]>E,\(`#P_IP
M'(%J!GZ$T[5O#S:A>_:Q=[0/+_<NFY#M;)/7J?7M3?")/]@V(_A$38'_``-J
M`+FD`+/J(&<?:V//N!6E6;IF5U#5%SG]^IQZ91:TJ`,J.74X[J&WDN+:XDR&
MF18]FV,Y^;.>3GBM6N3M=8NFUV!7,1,H"&8K@.F3^(;.,`UUE`!1110`4444
M`%%%%`!1110`4444`%%%%`!1110`4444`8/C!HTTA&<L&$RA0K`9)XZG\Z-8
MOK>RMM+N;B9$,4@D(9L9'EL/YD"K/B2:.WT6666WBN`I7"3+E<Y`!_6H;Y([
MBUTJ9H$^^.`N=H,3<#VSB@1E7VL/=76C7D]L8$@NU+,&SG=$^1C&>.*Z73M4
MM-5B>2TD+B-MC@J5*G\:X25YK^WB9F:=O-@`5Y&;J67DX!_*NK\.6QMUN"(S
M$KE2%^;!(&,C=SSWH&7=+.([E#U6ZD_5L_UJ]6?II_TO4D_NW7\XT/\`6M"@
M`HHHH`*J:G!+-:9MP#-$PDC!Z$CM^/(JW10!%:W,=W;I/&?E<=#U![@^XJ4@
M$8/(JE+:303-<614,YS)"WW7/J/0^].CU"(N(IU:WE/1).,_0]#0!$^F.FZ.
MTN#;P2</$%R`/]G^[_*J\WAC3G1%A5H`CB0*ARI8="5.0:V**`,&^BU73-/\
M^/46N/)<'881E\L!@G/09[8Z5<>RU1W<C5P@9=H5;8?*?7KUJU?VQO+-X`P4
ML1R?8@_TJQ0!B2-*&D5O$*J6('RQK\N.H'/?O32OF,3_`,))*,N&PBH,>W3I
M5W1,'3`,`[9I5_*1A5_`]!^5`&"4B5@6U^_?#EP%52/IPG3VI%2S5ESJFJ.4
M)(R'[]?X:Z"B@#`2UL"BA)=5<*A0?/)T/7K_`#I6T^S<,CV^INK($(9VP5'0
M=:WJ*`.:N;?1(9$2YL+PR7,@1%9G)D8<C^+MU]JG_LFP4ADT*5COWY:3^+UY
M;K2:)=/?ZYJ3S8D\A@D+$`;%YR!_6M^@#$2PMUQM\.*,9QDQGKU[U(+"+:`/
M#]L`!@`E.!^5/&J2CQ%_9;+%L,7F*W(;_`U>NTGDM)4MI%CF9"(W89"GL:`*
M(L0#QH]D!]1_\33Q!-S_`,2RS'OO_P#L:J"P\0F.-?[6B3;]XF+<6Y/?W&*D
M^PZZ9F<ZK"$(("+#TSTYSVH`G\B]ZK:V*GWR?Z4X1ZF/NBQ'_`&JE_9_B%74
M_P!KQN#@-F$*%Y&2/PS5BPLM5AN_,O-2$\*J5$80#=_M$_TH`G"ZJ3S):*/9
M&/\`6G>5?GK=Q#Z0_P#UZMU!>M<)8SO:(KW"QL8E<X#-C@&@"&1+N&(R2ZC$
MBJ,LS0@`#\Z$BNY45UU%2C#(9(A@C\ZY>)M4U1BMU$+K,N_RE((A[%2WW=I&
M>#D\CO6[8Z&T5E%:W$Y%O&/EMXF(7KGENK?H*`&2S3>>8;?4;F[F[I`D85?]
MYB,#^=*-'U"[C9=0U:?8W_+*#:H`]VQD_I6O%%'!&(XHUC0=%48`I]`&/>6)
MT_1KI[6ZG0P0.Z*I"C(4D=!6K"Q:"-FY)4$_E5?5(WGTJZBB7>[1,`H_BXZ5
M+9S17%I')"P92HZ=O:@":BD)"C)(`]ZKR:A:1?>N$)SC"G<?R%`%FF2RQP1F
M25U1%ZLQP!54W=U.=MK:,!G_`%D_RC\!U/Z4L>GJTHGNY#<2K]W<,*GT7^M`
M$.R35F!E1HK$<B-N&F]SZ+[=^]:(``P!@"EHH`***@O+M+.W,K`L<X1%ZNQZ
M`4`5KK-UJMM;*1L@_?R_7H@_/)_"M"JEA;/!$TDYW7$[;Y3[]@/8#BK=`"'D
M'Z5@^$B/[$LQW"./_(C5O]JPO"G_`"!;3TVR<_\`;1J`+>G?\A;5?^NT?_HM
M:TJS=.&-6U;WFC_]%K6E0!D)H1@9&@NW#>:))"X#>9SG\#[BM>BB@`HHHH`*
M***`"BBB@`HHHH`****`"BBB@`HHHH`****`,SQ%:O=Z+.D2;Y%`95SZ'G]*
M8)-VD6+NG.Z-2N0>3\N...M:U8>M:8JJES9W$EG(]S#YGEC*R#>."IX'7J.:
M`,>YM9K:W$LNEQV!6[MANB;AE$H].^#72:5I":3YP2YFG$K9!F()4>F?2J?C
M(E?#%Q(/^6;QO^3K6Y0!1L5*:AJ(/\4JN/Q11_[+5ZJ</_(8N_\`KC%_-ZN4
M`%%%%`!1110`4R6*.:,QRHKH>JL,BGT4`4OL<ULQ:RFPN/\`4RY9/P/4?RI1
MJ*Q,$O(VMF/`+<H?HW3\\5<I&574JRAE/!!&0:`%!!&1R#16-JD*:?"KVMO.
M[2/M$<4K@#WPN<"IK*UCO+*&X,MT@E0-L\]N,]J`':'_`,@]QZ7$WX_O&/\`
M6M&HX((K>)8H4"(O0"I*`"BBB@`HHHH`YOP\;'^WM6%M/<23;QYHE50N?5<#
M/MS725@:3>F;Q-JMLS6Y\K:5\N+#;3_>8=>>W6M^@#G+E&B\=6DS>:4>W90V
M/ESSQQ^')]171U6O;&*^AV2,\;#E)8VVNA]0:IZ*-=66Z76#;-&K`6[P_>8<
MY+#\OUH`U:***`"BJ#ZHLCF*QB:[D!P64XC4^[]/RR::--ENCOU*X\T=H(\K
M&/KW;\?RH`<^J+([16,37<B\$H<(I]VZ?EFF?V;-=L'U&X+K_P`^\1*Q_CW;
M\>/:M".-(D$<:*B*,!5&`*=0`V.-(D"1HJ(.BJ,`4ZBB@`KG[!O$=G:0F]:W
MO)G+%H6(CD')P%8<'CU_.N@KDKWQ%:3ZC9SF"=9+!YY7A^4,$`*$D$C^]G'7
M%`%J>VN;36K5M,F@M8YSOO+=Y`7<DYR`<_[72MF33K621I#%M9N6*,5S]<5S
M&M7<=SJ]K+''`8I(X7CG,6Z3YGX'L,5V-`%3^R[(@AK<.#U#DL/U-3Q00P*%
MBB2,#@!5`J2B@`HHHH`**0D`$DX`[FJ3:CYQ,=A']H?.#)G$:_5N_P!!F@"Q
M<W45I%YDS8&<``9+'T`[FH+>WEGN!>W:[7`Q#%U\H=S_`+QIUO8[)OM-Q)Y]
MQT#D8"#T4=OYU;H`****`"L#PE\FB6:'KF8?E*U;]8/A8YTN`8^[-<K_`.16
MH`MZ<<ZQJP])8_\`T6M:=9NG@#6-5]3)$3_W['^%:5`!1110`4444`%%%%`!
M1110`4444`%%%%`!1110`4444`%%%%`!534RJ6$CL0`A5LGM@@U;K(\3W26N
M@W1D20J\97<B[MI(X)H`9XQ`/A'4@?\`G@<<9YK5MI1/:Q3*20Z!AD$=O>H+
MC9J&CS!HF59X&!21<,,CH17+P>(M6LM,M+3[&KW5H%AN_E+$=E(4<X88(/O[
M4`=--%=QW[7%M%%(KQ!&#R%.03CL?4TX/J3#_4VJ?]M&;^@IFEZO#J<978UO
M<H/WMM(1OC/N!5^@"H!J7=K7\F_QJ-[B]@N;6.80,D\A0E`P*_*S9Y^F/QJ_
M6?JYVQVKYY6[B_5@O]:`-"BBB@`HHHH`**HSZHL=T]M#;3W$D8!?RP,+GH"2
M>N.:07E^V=FF-C_;F"T`2:C:2W<*+#+Y;*X;.YEX_P"`D&IK:(P6T<3'<44`
MGUJI)?7T,+S3:>J)&I9F-P#@`9/:I(YK^9%=((%5@""9"<C\J`+E%5`=2QRE
MKG_?;_"C_B8D=+4'ZL:`+=%4]FID_P"OM5'_`%R8_P#LU(8M4/\`R^6P^EN?
M_BJ`+M%4Q;WQ^]?@?[L('\\U%<Z9<7=NT$NISA&^]Y:JI(],@4`9FAJ[>)]7
ME\EA$S`+(8P.1U&03GUKI*H1Z8\42Q1WLT:*,!8U50/TI?[.8<G4;SC_`*:#
M_"@"]0>!D\"L2213)Y5E<7E]+NVMMF`2/O\`,P''X9J2/0C,&.IW4MR&_P"6
M(D98U_#.3^-`%B35$=FBL8FO)0<'8<(I_P!I^@_#)]J;_9LUV,ZG/YJYS]GB
MRL8]CW;\>/:IUTVV1`B>:JCH%F8`?K2_8(,8S-_W^;_&@"=(TB0)&BHBC`51
M@`4ZJATNS8Y:-F/^U(Q_K3?[(T[_`)](S]1F@"[3&EB7[TB#ZL*K?V1IP.?L
M<6?]VGC3K('(M(<C_8%`$GVJW_Y^(O\`OL4GVNV_Y^(O^^Q1]CM<Y^S0_P#?
ML4"RM`<BUA'_`&S%`$JL&4,I!!Z$=Z\^GC_M+4#OO6*^=+Y-Q-D+.PSB,!E*
MC!_,#I79Z0!%8&+A1%*ZXZ8^8\4Z2QTN>*XA>"W9+@YF7`^<^I]_>@#%DFC=
MM&EN+.SNVNUC03KN7+@;N@7[O!(SCFNGK+D\.Z;(L"B)T6W1$B"2$!0IROX^
M_O6I0!!=7D-FJ-,6_>/L0*I8LV"<8'L#4/\`:D/\,-RQ]!`W^%,U3_7Z:W87
M@S^*./ZUH4`4TOY),B.PN>/[X5/YFD+:G-D*D%J.Q<F1OR&!^M7:*`*7]FI*
M0UW+)=''W7.$_P"^1Q^>:N*H50J@`#H`.E+10`4444`%%%9>K:J;4-:V3P-J
M!4.D,IQN&?\`(H`O&Y@-PUMYZ"94WE-PW!?7'I6'X40_V;;S&5W6:2XDCR!]
MTR$@\#N.?QK#O&>>28[[I9Y3YL\*LK_88RH#=.=QR0`3@$DUO:)J23Q1`6ZV
MMM:Q,J$$[-HP,9]1CF@"_8D'6=4QV:('_O@5HU0TB(_9Y+MP1)=R&4YZ@=%'
MY`5?H`****`"BBB@`HHHH`****`"BBB@`HHHH`****`"BBB@`HHHH`*J:HGF
M:5=(.\3=/I5NH[@XMI3_`+!_E0!0U&S.J:,H\^2)O+\P%>C';T8=QSG'M7-/
M!=VUW:>7--$T,7%\R!512!A#G[XZ\'OTQBNOLB)=-MR"</"O/U454LK:VU/0
M((;C=<1.O)?@G!ZT`<]LDAMXFA@;3A+())+RSC,Z.`<_[R_0UO1^)M$"(K:K
M#N)"Y<[23]#TK3@MXK6%88(UCC0855&`*26V@F(,L*.5.1N4'!H`I?\`"1Z+
M_P!!2U_[^"J.J^(=&DL24U.V+1ND@^?NK`_TK;%M;CI!&/\`@`JIJ\$8TFYV
M1(#Y9QA10!$?%&AC_F)P?@U)_P`)3H?_`$$HOU_PK3$47:-/^^13@BCHH'X4
M`97_``E6AXS_`&C&?HK?X4+XIT1A\M^I^B-_A6K@>@_*EP/2@#G;?7])BU>\
M?[4<3)&PQ$_8$>E7O^$DTKM<.?I`_P#A4R_\AY_^O5?_`$)JO4`8.IZ_IT^E
M7<,+RO))`ZHHMY.25(`^[1'KT2Z*HB2<70M\*AMI,!]O`SM]:WJ,^]`'$/K.
MMO;2R":X2X$F(D%HQ7;SR?E^GZUKZ7KY6Q0W\5\UPW+C[*V%/H,#I6_N'J/S
MHW+_`'A^=`&4?$5J#@6M^WTM7_PH/B*`#BQU$_2U:M3>G]]?SI=Z_P!X?G0!
MD'Q)"/\`F&ZF?I:M1_PD0(RND:H?^W;']:TI+I$`V#S26VD(1Q]>:KS6GVN1
M_M5UN@)^6%#M!'^T>IH`SCXJ$HE6TT;4KB6,?=$0`SZ%LXJLU[>7A#:AI.IN
M@_Y=XD58_P`?FRW\O:NCC-O!&(XS'&B\!5(`%!N;<=9XQ_P,4`9)UW[);LQT
M._AAB7)/EH%4#_@55QXSM#TL[D\@=4X)Z#KWK6OOL-[9R6UQ<H(Y!@[90#^=
M9KZ1X>:)XGGC*R2B4YG&<C)'?IDG\Z`)+7Q(][%YMKI-W,F2NY2F,_\`?5-?
MQ,8W='TRX5HU+."Z?*!USS5BP31M+TY;"UN88X%W8'G#/)R><^]1FT\/,NUG
MMFR"#F7)8$`'//.0!^5`%5O&,*VZW!L)A"S%5<R(`2.N.:L6GB">_C,EII,\
MT8.-ZRQXS['/-*+/PTJJNVRPF0H+C`SP<<U;MKG2;5&CMI[:-68L55QC)ZF@
M"+^TM4[:%+^-Q'_C1_:.J]M"D_&YCJU_:=C_`,_47_?5']IV(_Y>H_SH`J'4
M=7[:"Q_[>DIWV_5O^@(?_`I*L_VG9?\`/POZT?VG9'I.#]`?\*`.;N(M6U.V
MGACTYHP+B7)%PAY(*]_8FJ]UX?U"=T:+1TA"(B*!-'P%.3V[UT&G7UM$+G?*
M1NN9&&5/3/TJV=5LA_RW_P#'3_A0!4%[K2J%70XP!Q_Q^+T_*@WVN=M%B_&\
M'^%6CJMBJEC.``,DE3P/RIPU.S8`B<$'D$*?\*`,C4+S6S#$\FC0@I/&5Q>#
MJ6`'\/O5G[;X@)_Y`MN/K>__`&-2ZA?6TMNBI)N(FB.`IZ!P3VJU_:-IC/F\
M?[I_PH`HF\\09XTBU_\``S_[&D^U^(O^@1:?^!A_^)J__:-H?^6W_CI_PI/[
M1M!_RU_\=/\`A0!2%UXASSI=GCVNC_\`$T@N?$1ZZ;8C_MZ;_P")J]_:5I_S
MT/\`WPW^%)_:5K_??_OVW^%`%+S_`!)GBPTX?]O+_P#Q-*)O$9/-GIP'_7=S
M_P"RU<_M*VQG]Y_W[;_"@ZG;CM,?I$W^%`%$R>)?/4"VTX1[3DF1^N1CM]:C
MET2_U"?SM0OXTPNU5M(MAQUP7)+8SZ8K1_M2'M%<GZ0-_A2&\N90/L]E)S_%
M,0@'X=:`.>TOPW-*@.IQBS^S%E4VTFWS%/7/'0]<GFM,)#?36UK#'Y=A'G!`
MP)L8X`_N^I[U=^P27)#7\WF@'(B0;8_Q'4_C5T``8`P!0`M%%%`!1110`444
M4`%%%%`!1110`4444`%%%%`!1110`4444`%%%%`!5>_:5+"=H83/($.(PP!;
MCH":L44`9^A333Z/;-/;^0PC"A2V3@#'/O3M+#/IBQO/YC@LK2)QSN--T$2#
M2(A+G>&<'/\`OFIK#_5S#]WQ/)_J_P#>[^_K0`OV)<_\?%Q_W]-)]A7_`)^+
MG_OZ:M44`5OL*_\`/Q<?]_337T^.5&1YIV5A@@RGD5;HH`K+8HJ[?.GP!C_6
MFFG3H3_'-_W]:K=1/=01B0O*J^4,R9/W1[T`0_V;;'KYI_[:M_C1_9=H1@HY
M^LC?XU/)/%%$TLDBJBC<6)Z"H%U.S=T19LN^=JA3DXZ\8H`8-%T\2>9Y!W[=
MN[S&SCTZTXZ39$8,3?\`?QO\:EM+VWOHC+;/O0,5)P1R.O6IZ`*7]CV'_/$G
MZR-_C2C2K$?\L!^+'_&KE%`%3^S++_GW7\S2C3;(?\NR?E5JB@"I-9VT4+-'
M81RL.B!0"?Q-5O[(^U'-XL21_P#/&`8!_P!YNI_#%:E%`%9=.L47:MI"![(*
M4:?9`8%I#_WP*L44`5_L%G_SZP_]\"E%E:#I:P_]\"IZ*`(OLML/^7>+_O@4
MOV>`=(8_^^14E%`$?V>#_GC'_P!\BCR(?^>,?_?(J2B@"/R(?^>,?_?(I?)B
M'2)/^^13Z*`&^6@Z(OY4;%_NC\JI:GJ#V3VT4:(TEU(8T,C$*#@GG`)YQBEG
MOY88I&^Q2EHUSG(V$^QSG]*`+N!Z"EKG8/%0E.7A6.-0=\C9Y/S8P,9/W?3N
M*U],N)[JR6:X6%78GB)]P`SZ^OK0!;HHHH`0@,"",@\$5G:4/L3/I1)Q`-T&
M3R8CT_(\?E6E6;J;,M[9FV`:[#'"9P#'CYLGL.GXT`:5%96H7FLQ6P^Q:6DL
MS%AS,-J\<,>F>>U0C4M?VL/[!!88P3<J`W3/T[T`;=%5K"2[EMB][`L,I=L(
MISA<\<^N*LT`%%%%`!1110`4444`%%%%`!1110`44ASQC\:6@`HHHH`****`
M"BBB@`HHHH`****`"BBB@`HHHH`****`"BBB@"EI9_<3)C'ESR+^O_UZ6Q&V
M:\3RU3$^?E;.[(!R?0\U8B@C@W^6NW>Y=O<GJ:5(HXWD=$56D(+D#EB!CG\`
M!0`^BBB@`HHHH`*RKGP_;W#WL@E>.6\VYD4#*`;>!D=RO?-:M%`%.XTRUN$D
MW0Q^9(.9"N3GL?TJF/#J%_,>^N'D,90R,06SSSGJ!\QX]AZ5L44`06EO]EMD
MA\S?M[[0OY`<`5/110`4444`%%%%`!1110`A8*,L0/J:"RJ,LP`]2:K:C;&[
ML9851&9UP-_09XS^59*:'=Q"5F\FY=Y&$8F8E8D))!`]<DY'TH`WO,3>4WKN
M'.W/-+N''(YZ<US@\/7BVT\$4T:$JGERLQ9]P8'=G@C(4<9ZU:CT:Y2\@0W)
M^R6^3'AOFSM*\\=<DG-`&N\L<94/(J%N`&8#-(D\,GW)4;G'#`\UFZCI4MY%
M';@B6,/N=IGR2/[O`Z&JC>'[N:U"--##(/NF/(V_,.XP2<`\T`;ANK=2P,\0
M*C+`N.*<9HA#YWF+Y>,[P>*R;[0C(8#9F*/[.H"*PZX/<U<M;.>TTB&TBD0R
MQQA6<@@,>YX]3DT`3"]M6*@7$1W#</F'(]:E5U?.U@V.N#6+'X>D2T:/[7^]
M9RWF;,\%67'_`(\:O:1IW]F69@,GF$N6)YXST`SS@#B@"U)!#,RM+"DA0Y4L
MH)4^WI3GC25"DB*ZGJK#(-.HH`B^S0$Y,$?W=GW!]WT^E/1$C0(BA5'15&`*
M=10`4444`07=W#96YGF;"@@`=V8]`/<FH;"T>,O=7.#=3\MZ(O9![#]3FK$U
MM#</$\T8<PMO3=SM;U^M2T`%%%%`!1110`4444`%%%%`!1110`4444`%%%%`
M!1110`4444`%%%%`!1110`4444`%%%%`!1110`4444`%%%%`!1110`4444`%
M%%%`!1110`4444`%%%%`!1110`4444`%%%%`!1110`4444`%%%%`!1110`44
M44`%%%%`!1110`4444`%%%%`!1110`4444`%%%%`!1110`4444`%%%%`!111
80`4444`%%%%`!1110`4444`%%%%`'__9
`
end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31
<SEQUENCE>15
<FILENAME>ex_31-1.htm
<DESCRIPTION>RULE 13A-14(A)/15D-14(A) CERTIFICATION
<TEXT>
<HTML>
<HEAD>
<TITLE> </TITLE>
</HEAD>
<BODY bgcolor="#ffffff" style='font-family:"Times New Roman"'>

<div style='width:600;'>

<A NAME="ex_31-1"></A>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><B><font SIZE=2>EXHIBIT 31.1</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>CERTIFICATIONS</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="527" style='border-collapse:collapse'>
    <tr >
        <td width="48" nowrap valign=top style='padding:0in 0in 12.0pt 0in; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="191" nowrap valign=top style='padding:0in 0in 12.0pt 0in; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>I, Yvon L&#233;veill&#233;, certify that:</font></p> </td>
        <td  width="288">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="48" nowrap valign=top style='padding:0in 0in 12.0pt 0in; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.</font></p> </td>
        <td  nowrap colspan="2" valign=top style='padding:0in 0in 12.0pt 0in; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>I have reviewed this quarterly report on Form 10-QSB of Adsero Corporation.</font></p> </td> </tr></table>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;'><font size=2>2.</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2>Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;'><font size=2>3.</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2>Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;'><font size=2>4.</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2>The registrant&#146;s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.58in;text-align:left;'><font size=2> (a)</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2>Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.58in;text-align:left;'><font size=2> (b)</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2>Evaluated the effectiveness of the registrant&#146;s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.58in;text-align:left;'><font size=2> (c)</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2>Disclosed in this report any change in the registrant&#146;s internal control over financial reporting that occurred during the period covered by this quarterly report that has materially affected, or is reasonably likely to materially affect, the registrant&#146;s internal control over financial reporting; and </font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;'><font size=2>5.</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2>The registrant&#146;s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant&#146;s auditors and the audit committee of registrant&#146;s board of directors (or persons performing the equivalent functions):</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.58in;text-align:left;'><font size=2> (a)</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2>All significant deficiencies and material weakness in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant&#146;s ability to record, process, summarize and report financial information; and</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.58in;text-align:left;'><font size=2> (b)</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2>Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant&#146;s internal control over financial reporting.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="517" style='border-collapse:collapse'>
    <tr >
        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="240" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Date: November 18, 2005</font></p> </td>
        <td  nowrap colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>/s/ Yvon L&#233;veill&#233;</font></u></p> </td>
        <td  width="108">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  nowrap colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Yvon L&#233;veill&#233;</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  nowrap colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Title:</font></p> </td>
        <td  nowrap colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Principal Executive Officer</font></p> </td> </tr>
    <tr>
        <td width="48" ></td>

        <td width="240" ></td>

        <td width="48" ></td>

        <td width="56" ></td>

        <td width="17" ></td>

        <td width="108" ></td> </tr> </table>

<HR noshade align="center" width="100%" size="2">

</div>
</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31
<SEQUENCE>16
<FILENAME>ex_31-2.htm
<DESCRIPTION>RULE 13A-14(A)/15D-14(A) CERTIFICATION
<TEXT>
<HTML>
<HEAD>
<TITLE> </TITLE>
</HEAD>
<BODY bgcolor="#ffffff" style='font-family:"Times New Roman"'>

<div style='width:600;'>

<A NAME="ex_31-2"></A>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><B><font SIZE=2>EXHIBIT 31.2</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>CERTIFICATIONS</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="527" style='border-collapse:collapse'>
    <tr >
        <td width="48" nowrap valign=top style='padding:0in 0in 12.0pt 0in; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="193" nowrap valign=top style='padding:0in 0in 12.0pt 0in; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>I, William Smith, certify that:</font></p> </td>
        <td  width="285">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="48" nowrap valign=top style='padding:0in 0in 12.0pt 0in; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.</font></p> </td>
        <td  nowrap colspan="2" valign=top style='padding:0in 0in 12.0pt 0in; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>I have reviewed this quarterly report on Form 10-QSB of Adsero Corporation.</font></p> </td> </tr></table>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;'><font size=2>2.</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2>Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;'><font size=2>3.</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2>Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;'><font size=2>4.</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2>The registrant&#146;s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.58in;text-align:left;'><font size=2> (a)</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2>Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.58in;text-align:left;'><font size=2> (b)</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2>Evaluated the effectiveness of the registrant&#146;s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.58in;text-align:left;'><font size=2> (c)</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2>Disclosed in this report any change in the registrant&#146;s internal control over financial reporting that occurred during the period covered by this quarterly report that has materially affected, or is reasonably likely to materially affect, the registrant&#146;s internal control over financial reporting; and </font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;'><font size=2>5.</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2>The registrant&#146;s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant&#146;s auditors and the audit committee of registrant&#146;s board of directors (or persons performing the equivalent functions):</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.58in;text-align:left;'><font size=2> (a)</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2>All significant deficiencies and material weakness in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant&#146;s ability to record, process, summarize and report financial information; and</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.58in;text-align:left;'><font size=2> (b)</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2>Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant&#146;s internal control over financial reporting.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="505" style='border-collapse:collapse'>
    <tr >
        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="240" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Date: November 18, 2005</font></p> </td>
        <td  nowrap colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>/s/ William Smith</font></u></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  nowrap colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>William Smith</font></p> </td>
        <td   colspan="3">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  nowrap colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Title:</font></p> </td>
        <td  nowrap colspan="4" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Principal Accounting and</font></p> </td> </tr>
    <tr >
        <td  nowrap colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Financial Officer</font></p> </td>
        <td  width="48">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="48" ></td>

        <td width="240" ></td>

        <td width="48" ></td>

        <td width="59" ></td>

        <td width="16" ></td>

        <td width="47" ></td>

        <td width="48" ></td> </tr> </table>

<HR noshade align="center" width="100%" size="2">

</div>
</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>17
<FILENAME>ex_32-1.htm
<DESCRIPTION>SECTION 1350 CERTIFICATIONS
<TEXT>
<HTML>
<HEAD>
<TITLE> </TITLE>
</HEAD>
<BODY bgcolor="#ffffff" style='font-family:"Times New Roman"'>

<div style='width:600;'>

<A NAME="ex_32-1"></A>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><B><font SIZE=2>EXHIBIT 32.1</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>CERTIFICATION PURSUANT TO</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>18 U.S.C. SECTION 1350,</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>AS ADOPTED PURSUANT TO</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.56in;text-align:left;'><font size=2>In connection with the Quarterly
Report of Adsero Corporation (the &#147;Company&#148;) on Form 10-QSB for the quarter ended September 30, 2005 as filed with the
Securities and Exchange Commission on the date hereof (the &#147;Report&#148;), I, Yvon L&#233;veill&#233;, Chief Executive Officer of the
Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002,
that;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(1)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:-0.5in;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(2)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.56in;text-align:left;'><font size=2>A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><u><font size=2>/s/ Yvon L&#233;veill&#233;</font></u></p>


<table border="0" cellspacing=0 cellpadding=0 width="209" style='border-collapse:collapse'>
    <tr >
        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Name:</font></p> </td>
        <td width="104" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Yvon L&#233;veill&#233;</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Title:</font></p> </td>
        <td  nowrap colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Chief Executive Officer</font></p> </td> </tr>
    <tr >
        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Date:</font></p> </td>
        <td  nowrap colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>November 18, 2005</font></p> </td>
        <td  width="25">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="48" ></td>

        <td width="104" ></td>

        <td width="32" ></td>

        <td width="25" ></td> </tr> </table>

<HR noshade align="center" width="100%" size="2">

</div>
</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>18
<FILENAME>ex_32-2.htm
<DESCRIPTION>SECTION 1350 CERTIFICATIONS
<TEXT>
<HTML>
<HEAD>
<TITLE> </TITLE>
</HEAD>
<BODY bgcolor="#ffffff" style='font-family:"Times New Roman"'>

<div style='width:600;'>

<A NAME="ex_32-2"></A>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><B><font SIZE=2>EXHIBIT 32.2</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>CERTIFICATE PURSUANT TO</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>18 U.S.C. SECTION 1350,</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>AS ADOPTED PURSUANT TO</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.56in;text-align:left;'><font size=2>In connection with the Quarterly Report of Adsero Corporation (the &#147;Company&#148;) on Form 10-QSB for the quarter ended September 30, 2005 as filed with the Securities and Exchange Commission on the date hereof (the &#147;Report&#148;), I, William Smith, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(1)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(2)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The information contained in the Report fairly presents, in all material respect, the financial condition and result of operations of the Company.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><u><font size=2>/s/ William Smith</font></u></p>


<table border="0" cellspacing=0 cellpadding=0 width="205" style='border-collapse:collapse'>
    <tr >
        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Name:</font></p> </td>
        <td width="107" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>William Smith</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Title:</font></p> </td>
        <td  nowrap colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Chief Financial Officer</font></p> </td> </tr>
    <tr >
        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Date:</font></p> </td>
        <td  nowrap colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>November 18, 2005</font></p> </td>
        <td  width="21">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="48" ></td>

        <td width="107" ></td>

        <td width="29" ></td>

        <td width="21" ></td> </tr> </table>

<HR noshade align="center" width="100%" size="2">

</div>
</BODY>
</HTML>

</TEXT>
</DOCUMENT>
</SUBMISSION>
