-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 Ebf2r2eAKA0FPSPKYqhSqa525wHirhA81hkpT9fyEr5ujx7loc2yFsULUWcgUMXV
 ZrZllAzl/c0AgdQZr3ClVg==

<SEC-DOCUMENT>0000950144-05-007064.txt : 20050630
<SEC-HEADER>0000950144-05-007064.hdr.sgml : 20050630
<ACCEPTANCE-DATETIME>20050630151259
ACCESSION NUMBER:		0000950144-05-007064
CONFORMED SUBMISSION TYPE:	PRE 14A
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20050810
FILED AS OF DATE:		20050630
DATE AS OF CHANGE:		20050630

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			NICHOLAS FINANCIAL INC
		CENTRAL INDEX KEY:			0001000045
		STANDARD INDUSTRIAL CLASSIFICATION:	SHORT-TERM BUSINESS CREDIT INSTITUTIONS [6153]
		IRS NUMBER:				593019317
		STATE OF INCORPORATION:			FL
		FISCAL YEAR END:			0331

	FILING VALUES:
		FORM TYPE:		PRE 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-26680
		FILM NUMBER:		05928248

	BUSINESS ADDRESS:	
		STREET 1:		2454 MCMILLEN BOOTH RD
		STREET 2:		BLDG C 501 B
		CITY:			CLEARWATER
		STATE:			FL
		ZIP:			33759
		BUSINESS PHONE:		8137260763

	MAIL ADDRESS:	
		STREET 1:		2454 MCMULLEN BOOTH RD
		STREET 2:		BLDG C SUITE 501B
		CITY:			CLEARWATER
		STATE:			FL
		ZIP:			33759
</SEC-HEADER>
<DOCUMENT>
<TYPE>PRE 14A
<SEQUENCE>1
<FILENAME>g96113ppre14a.htm
<DESCRIPTION>NICHOLAS FINANCIAL, INC.
<TEXT>
<HTML>
<HEAD>
<TITLE>Nicholas Financial, Inc.</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="center" style="font-size: 18pt"><B>SCHEDULE 14A</B>


<DIV align="center" style="font-size: 10pt"><B>(Rule&nbsp;14a-101)</B></DIV>



<P align="center" style="font-size: 10pt"><B>INFORMATION REQUIRED IN PROXY STATEMENT</B>



<P align="center" style="font-size: 12pt"><B>Proxy Statement Pursuant to Section&nbsp;14(a) of the Securities<BR>
Exchange Act of 1934 (Amendment No. )</B>



<P align="left" style="font-size: 10pt">Filed by the Registrant &#091;X&#093;



<P align="left" style="font-size: 10pt">Filed by a Party other than the Registrant &#091; &#093;



<P align="left" style="font-size: 10pt">Check the appropriate box:



<P align="left" style="font-size: 10pt"><FONT face="Wingdings">&#254;</FONT> Preliminary Proxy Statement



<P align="left" style="font-size: 10pt"><FONT face="Wingdings">&#111;</FONT> Confidential, for Use of the Commission Only (as permitted by Rule&nbsp;14a-6(e)(2))



<P align="left" style="font-size: 10pt"><FONT face="Wingdings">&#111;</FONT> Definitive Proxy Statement



<P align="left" style="font-size: 10pt"><FONT face="Wingdings">&#111;</FONT> Definitive Additional Materials



<P align="left" style="font-size: 10pt"><FONT face="Wingdings">&#111;</FONT> Soliciting Material under Rule&nbsp;14a-12


<P align="center" style="font-size: 14pt"><B>Nicholas Financial, Inc.</B>


<DIV align="center" style="font-size: 10pt"><HR size="1" noshade width="100%" align="center" color="#000000"></DIV>


<DIV align="center" style="font-size: 10pt"><B>(Name of Registrant as Specified In Its Charter)</B></DIV>



<P align="center" style="font-size: 10pt"><HR size="1" noshade width="100%" align="center" color="#000000">


<DIV align="center" style="font-size: 10pt">(Name of Person(s) Filing Proxy Statement, if other than the Registrant)</DIV>



<P align="left" style="font-size: 10pt">Payment of Filing Fee (Check the appropriate box):



<P align="left" style="font-size: 10pt"><FONT face="Wingdings">&#254;</FONT> No fee required.



<P align="left" style="font-size: 10pt"><FONT face="Wingdings">&#111;</FONT> Fee computed on table below per Exchange Act Rules&nbsp;14a-6(i)(1) and 0-11.


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="92%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(1</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title of each class of securities to which transaction applies:</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="7" valign="top" align="left"><HR size="1" noshade width="100%" align="center" color="#000000"></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(2</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Aggregate number of securities to which transaction applies:</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="7" valign="top" align="left"><HR size="1" noshade width="100%" align="center" color="#000000"></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(3</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Per unit price or other underlying value of transaction computed pursuant to Exchange Act
Rule&nbsp;0-11 (set forth the amount on which the filing fee is calculated and state how it was
determined):</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="7" valign="top" align="left"><HR size="1" noshade width="100%" align="center" color="#000000"></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(4</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Proposed maximum aggregate value of transaction:</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="7" valign="top" align="left"><HR size="1" noshade width="100%" align="center" color="#000000"></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(5</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Total fee paid:</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="96%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><FONT face="Wingdings">&#111;</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fee paid previously with preliminary materials.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><FONT face="Wingdings">&#111;</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2)
and identify the filing for which the offsetting fee was paid previously. Identify the
previous filing by registration statement number, or the Form or Schedule and the date of its
filing.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="92%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(1</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amount Previously Paid:</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="7" valign="top" align="left"><HR size="1" noshade width="100%" align="center" color="#000000"></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(2</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form, Schedule or Registration Statement No.:</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="7" valign="top" align="left"><HR size="1" noshade width="100%" align="center" color="#000000"></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(3</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Filing Party:</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="7" valign="top" align="left"><HR size="1" noshade width="100%" align="center" color="#000000"></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(4</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Date Filed:</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">
</DIV>


<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top"><IMG src="g96113pg9611300.gif" alt="(LOGO)">
</TD>
    <TD align="center" valign="top"><B>NICHOLAS FINANCIAL, INC.<BR>
Building C. #501B<BR>
2454 McMullen Booth Road<BR>
Clearwater, FL 33759-1340<BR>
(727)&nbsp;726-0763</B></TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><B>NOTICE OF ANNUAL GENERAL MEETING</B>



<P align="left" style="font-size: 10pt">To the Shareholders of Nicholas Financial, Inc:



<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">NOTICE IS HEREBY GIVEN that the 2005 Annual General Meeting of the Shareholders (the &#147;Meeting&#148;) of
Nicholas Financial, Inc. (hereinafter called the &#147;Company&#148;) will be held at the Company&#146;s Corporate
Headquarters, located at 2454 McMullen Booth Road, Clearwater, Florida, on Wednesday August&nbsp;10,
2005, at the hour of 10:00 AM for the following purposes:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to receive the Report of the Directors;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to receive the financial statements of the Company for its fiscal year ended March&nbsp;31, 2005
and the report of Dixon Hughes PLLC, the Company&#146;s Independent Auditors, thereon;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to elect one director to hold office until the 2008 Annual General Meeting of
Shareholders or until his successor is duly elected and qualified.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to approve a special resolution to alter the Notice of Articles to remove the application
of Pre-existing Company Provisions, as more particularly described in the Proxy Statement and
Information Circular accompanying this Notice;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to approve a special resolution to alter the Articles of the Company to a new form of
Articles and to alter the Notice of Articles to increase the authorized share structure of the
Company to an unlimited number of Common shares without par value and an unlimited number of
Preference shares without par value, as more particularly described in the Proxy Statement and
Information Circular accompanying this Notice;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to approve the appointment of Dixon Hughes PLLC as the Company&#146;s Independent Auditors for the
fiscal year ending March&nbsp;31, 2006; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to transact such other business as may properly come before the Meeting.</TD>
</TR>

</TABLE>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Accompanying this Notice are a Proxy Statement and Information Circular and Form of Proxy.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Shareholders of record as of the close of business on July&nbsp;11, 2005 will be entitled to attend and
vote at the Meeting, or any adjournment or postponement thereof. A shareholder entitled to attend
and vote at the Meeting is entitled to appoint a proxy holder to attend and vote in his stead.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Your vote is important. If you are unable to attend the Meeting (or any adjournment or postponement
thereof) in person, please read the Notes accompanying the Form of Proxy enclosed herewith and then
complete and return the Proxy within the time set out in the Notes.


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">The enclosed Form of Proxy is solicited by the Board of Directors of the Company but, as set out in
the Notes accompanying the Form of Proxy, you may amend it if you so desire by striking out the
names listed therein and inserting in the space provided the name of the person you wish to
represent you at the Meeting.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">DATED at Clearwater, Florida, July&nbsp;13, 2005.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>BY ORDER OF THE BOARD OF DIRECTORS</B>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Peter L. Vosotas


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">President


<P align="center" style="font-size: 10pt">2
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<!-- TOC -->
<A name="toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

<P><CENTER>
<TABLE border="0" width="90%" cellpadding="0" cellspacing="0">
<TR>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="76%"></TD>
</TR>
<TR><TD colspan="9"><A HREF="#000">PROXY STATEMENT AND INFORMATION CIRCULAR<BR> AS AT AND DATED JULY 13, 2005</A></TD></TR>
<TR><TD colspan="9"><A HREF="#001">REVOCABILITY OF PROXY</A></TD></TR>
<TR><TD colspan="9"><A HREF="#002">PERSONS MAKING THE SOLICITATION</A></TD></TR>
<TR><TD colspan="9"><A HREF="#003">VOTING SHARES AND OWNERSHIP<BR> OF MANAGEMENT AND PRINCIPAL HOLDERS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#004">PROPOSAL 1: ELECTION OF DIRECTORS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#005">PROPOSAL 2: APPROVAL OF ALTERATIONS TO COMPANY&#146;S<BR> NOTICE OF ARTICLES</A></TD></TR>
<TR><TD colspan="9"><A HREF="#006">PROPOSAL 3: APPROVAL OF NEW FORM OF ARTICLES</A></TD></TR>
<TR><TD colspan="9"><A HREF="#007">PROPOSAL 4: APPOINTMENT OF INDEPENDENT AUDITORS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#008">BOARD OF DIRECTORS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#009">EXECUTIVE OFFICERS AND COMPENSATION</A></TD></TR>
<TR><TD colspan="9"><A HREF="#010">SECTION 16(A) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE</A></TD></TR>
<TR><TD colspan="9"><A HREF="#011">INDEBTEDNESS OF DIRECTORS AND EXECUTIVE OFFICERS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#012">CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#013">INTEREST OF CERTAIN PERSONS IN MATTERS TO BE ACTED UPON</A></TD></TR>
<TR><TD colspan="9"><A HREF="#014">SHAREHOLDER PROPOSALS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#015">OTHER MATTERS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#016">APPROVAL AND CERTIFICATION</A></TD></TR>
</TABLE>
</CENTER>
<!-- /TOC -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>





<P align="center" style="font-size: 10pt"><B>NICHOLAS FINANCIAL, INC<BR>
Building C #501B<BR>
2454 McMullen Booth Road<BR>
Clearwater, FL 33759<BR>
(727)&nbsp;726-0763</B>


<!-- link1 "PROXY STATEMENT AND INFORMATION CIRCULAR<BR> AS AT AND DATED JULY 13, 2005" -->
<DIV align="left"><A NAME="000"></A></DIV>

<P align="center" style="font-size: 10pt"><B>PROXY STATEMENT AND INFORMATION CIRCULAR<BR>
AS AT AND DATED JULY 13, 2005</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Proxy Statement and Information Circular accompanies the Notice of the 2005 Annual
General Meeting of Shareholders (the &#147;Meeting&#148;) of Nicholas Financial, Inc. (hereinafter called the
&#147;Company&#148;) to be held on Wednesday, August&nbsp;10, 2005, at 10:00&nbsp;a.m. (Clearwater, Florida time), at
the Company&#146; Corporate Headquarters, located at 2454 McMullen Booth Road, Clearwater, Florida, and
is being furnished in connection with the solicitation of proxies on behalf of the Board of
Directors of the Company for use at that Meeting and at any adjournment thereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s Annual Report on Form 10-KSB for the fiscal year ended March&nbsp;31, 2005 (the
&#147;Annual Report&#148;), together with this Proxy Statement and Information Circular and the accompanying
proxy form (&#147;Proxy&#148;), are first being mailed on or about July&nbsp;13, 2005 to shareholders entitled to
vote at the Meeting.

<!-- link1 "REVOCABILITY OF PROXY" -->
<DIV align="left"><A NAME="001"></A></DIV>

<P align="center" style="font-size: 10pt"><B>REVOCABILITY OF PROXY</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the accompanying Proxy is completed, signed and returned, the shares represented thereby
will be voted at the Meeting. The giving of the Proxy does not affect the right to vote in person
should the shareholder be able to attend the Meeting. The shareholder may revoke the Proxy at any
time prior to the voting thereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to revocation in any other manner permitted by law, a proxy may be revoked by an
instrument in writing executed by the shareholder or his attorney authorized in writing, or if the
shareholder is a corporation, by a duly authorized officer or attorney thereof, and deposited
either at the registered office of the Company at any time up to and including the last business
day preceding the day of the Meeting, or any adjournment thereof, or, as to any matter in respect
of which a vote shall not already have been cast pursuant to such proxy, with the Chairman of the
Meeting on the day of the Meeting, or any adjournment thereof, and upon either of such deposits the
proxy is revoked.

<!-- link1 "PERSONS MAKING THE SOLICITATION" -->
<DIV align="left"><A NAME="002"></A></DIV>

<P align="center" style="font-size: 10pt"><B>PERSONS MAKING THE SOLICITATION</B>



<P align="center" style="font-size: 10pt">THE ENCLOSED PROXY IS BEING SOLICITED BY<BR>
THE BOARD OF DIRECTORS OF THE COMPANY



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Solicitations will be made by mail and possibly supplemented by telephone or other personal
contact to be made without special compensation by regular officers and employees of the Company.
The Company may reimburse shareholders&#146; nominees or agents (including brokers holding shares on
behalf of clients) for the cost incurred in obtaining from their principals


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">authorization to execute forms of proxy. No solicitation will be made by specifically engaged
employees or soliciting agents. The cost of solicitation of proxies on behalf of the Board of
Directors will be borne by the Company.

<!-- link1 "VOTING SHARES AND OWNERSHIP<BR> OF MANAGEMENT AND PRINCIPAL HOLDERS" -->
<DIV align="left"><A NAME="003"></A></DIV>

<P align="center" style="font-size: 10pt"><B>VOTING SHARES AND OWNERSHIP<BR>
OF MANAGEMENT AND PRINCIPAL HOLDERS</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of the date of this Proxy Statement and Information Circular, the Company is authorized to
issue 50,000,000 Common shares without par value and 5,000,000 Preference shares without par value.
As of the close of business on July&nbsp;11, 2005, the record date for determining shareholders entitled
to notice of and to vote at the Meeting, there were issued and outstanding 9,870,531 Common shares
and no Preference shares. At a General Meeting of the Company, on a show of hands, every
shareholder present in person and entitled to vote shall have one vote, and on a poll, every
shareholder present in person or represented by proxy and entitled to vote shall have one vote for
each share of which such shareholder is the registered holder. Shares represented by proxy will
only be voted on a poll.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth certain information regarding the beneficial ownership of
Common shares as of July&nbsp;11, 2005 regarding (i)&nbsp;each of the Company&#146;s directors and the sole
nominee for director, (ii)&nbsp;each of the Company&#146;s executive officers, (iii)&nbsp;all directors and
officers as a group, and (iv)&nbsp;each person known by the Company to beneficially own, directly or
indirectly, more than 5% of the outstanding Common shares. Except as otherwise indicated, each of
the persons listed below has sole voting and investment power over the shares beneficially owned.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="80%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><FONT style="font-variant: SMALL-CAPS">Name</FONT></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><FONT style="font-variant: SMALL-CAPS">Number of Shares</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><FONT style="font-variant: SMALL-CAPS">Percentage Owned</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Peter L. Vosotas (1) (2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,614,236</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">16.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stephen Bragin (3) (4)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">115,207</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Alton R. Neal (5) (6)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ralph T. Finkenbrink (7) (8)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">101,754</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Scott Fink (9) (10)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Percy Luney (11) (12)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mahan Family, LLC (13)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">543,552</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">All directors and officers
as a group (6 persons) (14)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,861,197</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18.2</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top">
    <TD width="3%" nowrap align="left">*</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">Less than 1%</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">Mr.&nbsp;Vosotas&#146; business address is 2454 McMullen Booth Road, Building C, Clearwater, Florida
33759.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">Includes 31,434 shares owned directly by Mr.&nbsp;Vosotas, 1,321,668 held in family trusts over
which Mr.&nbsp;Vosotas retains voting and investment power and 36,134 shares held by Mr.&nbsp;Vosotas&#146;
spouse. Includes 225,000 shares issuable upon the exercise of outstanding stock options
exercisable within 60&nbsp;days.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">Mr.&nbsp;Bragin&#146;s business address is 17757 US Highway 19 North, Suite&nbsp;26, Clearwater, Florida
33764.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">2
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">





<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top">
    <TD width="3%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">Includes 32,500 shares issuable upon the exercise of outstanding stock options exercisable
within 60&nbsp;days and does not include 5,000 shares issuable upon the exercise of outstanding
stock options which are not exercisable within 60&nbsp;days.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="3%" nowrap align="left">(5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">Mr.&nbsp;Neal&#146;s business address is 100 North Tampa Street, Suite&nbsp;1800, Tampa, Florida 33602.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="3%" nowrap align="left">(6)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">Includes 5,000 shares issuable upon the exercise of outstanding stock options exercisable
within 60&nbsp;days and does not include 2,500 shares issuable upon the exercise of outstanding
stock options which are not exercisable within 60&nbsp;days.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="3%" nowrap align="left">(7)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">Mr.&nbsp;Finkenbrink&#146;s business address is 2454 McMullen Booth Road, Building C, Clearwater,
Florida 33759.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="3%" nowrap align="left">(8)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">Includes 90,000 shares issuable upon the exercise of outstanding stock options exercisable
within 60&nbsp;days.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="3%" nowrap align="left">(9)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">Mr.&nbsp;Fink&#146;s business address is 3936 U.S. Highway 19, New Port Richey, Florida 34652.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="3%" nowrap align="left">(10)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">Includes 5,000 shares issuable upon the exercise of outstanding stock options exercisable
within 60&nbsp;days and does not include 2,500 shares issuable upon the exercise of outstanding
stock options which are not exercisable within 60&nbsp;days.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="3%" nowrap align="left">(11)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">Mr.&nbsp;Luney&#146;s business address is One North Orange Avenue, Orlando, Florida 32801.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="3%" nowrap align="left">(12)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">Includes 5,000 shares issuable upon the exercise of outstanding stock options exercisable
within 60&nbsp;days and does not include 2,500 shares issuable upon the exercise of outstanding
stock options which are not exercisable within 60&nbsp;days.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="3%" nowrap align="left">(13)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">Mahan Family, LLC, together with Roger Mahan, Gary Mahan, Nancy Ernst, Kenneth Ernst and
Mahan Children, LLC, filed a joint Schedule&nbsp;13D/A on May&nbsp;18, 2005. As reported in such
Schedule&nbsp;13D/A, Roger Mahan, Nancy Ernst and Gary Mahan are siblings. Kenneth Ernst is the
husband of Nancy Ernst. Mahan Family, LLC is a New Jersey limited liability company of which
Roger Mahan, Nancy Ernst and Gary Mahan are equity holders and the sole managers. The
principal business address of Mahan Family, LLC is Stonehouse Road, P.O. Box 367, Millington,
New Jersey. Mahan Children, LLC is a New Jersey limited liability company of which Roger
Mahan, Nancy Ernst and Gary Mahan are the sole equity holders and managers. The principal
business address of Mahan Children, LLC is Stonehouse Road, P.O. Box 367, Millington, New
Jersey. In addition to the 543,552 shares owned by Mahan Family, LLC, (i)&nbsp;Mahan Children, LLC
owns 401,646 shares, (ii)&nbsp;Roger Mahan owns 120,000 shares, (iii)&nbsp;a son of Kenneth and Nancy
Ernst owns 600 shares and (iv)&nbsp;a son of Gary Mahan owns 600 shares. These shares collectively
constitute approximately 10.8% of the Company&#146;s outstanding Common shares.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="3%" nowrap align="left">(14)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">Includes an aggregate of 362,500 shares issuable upon the exercise of outstanding stock
options exercisable within 60&nbsp;days and does not include an aggregate of 12,500 shares under
options which are not exercisable within 60&nbsp;days.</TD>
</TR>

</TABLE>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors has determined that all shareholders of record as of the close of
business on July&nbsp;11, 2005 (the &#147;Record Date&#148;) will be entitled to receive notice of and to vote at
the Meeting. Those shareholders so desiring may be represented by proxy at the Meeting. The Proxy,
and the power of attorney or other authority, if any, under which it is signed or a notarially
certified copy thereof, must be deposited either at the office of the Registrar and Transfer Agent
of the Company, Computershare Trust Company of Canada, 510 Burrard Street, Vancouver, B.C., V6C 3B9
or at the Head Office of the Company at Building C #501B, 2454 McMullen Booth Road, Clearwater, FL
33759-1343 not less than 48 hours, Saturdays and holidays excepted, prior to the time of the
holding of the Meeting or any adjournment thereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Votes cast by proxy or in person at the Meeting will be tabulated by the inspector of
elections appointed for the Meeting, who will also determine whether a quorum is present for the


<P align="center" style="font-size: 10pt">3
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">transaction of business. The Company&#146;s Articles provide that a quorum is present if two or
more shareholders of the Company are present in person (or represented by proxy) holding an
aggregate of at least 33-1/3% of the total issued and outstanding shares of the Company as of the
Record Date for the Meeting. Abstentions will be counted as shares that are present and entitled
to vote for purposes of determining whether a quorum is present. Shares held by nominees for
beneficial owners will also be counted for purpose of determining whether a quorum is present if
the nominee has the discretion to vote on at least one of the matters presented, even though the
nominee may not exercise discretionary voting power with respect to other matters and even though
voting instructions have not been received from the beneficial owner (a &#147;broker non-vote&#148;). Neither
abstentions nor broker non-votes are counted in determining whether a proposal has been approved.
The vote required for each proposal set forth herein, including the election of directors, is set
forth under the discussion herein of such proposal.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shareholders are urged to indicate their votes in the spaces provided on the Proxy. Proxies
solicited by the Board of Directors of the Company will be voted in accordance with the directions
given therein. Where no instructions are indicated, signed Proxies will be voted FOR each proposal
listed in the Notice of the Meeting which are set forth more completely herein. Returning your
completed Proxy will not prevent you from voting in person at the Meeting should you be present and
wish to do so.

<!-- link1 "PROPOSAL 1: ELECTION OF DIRECTORS" -->
<DIV align="left"><A NAME="004"></A></DIV>

<P align="center" style="font-size: 10pt"><B>PROPOSAL 1: ELECTION OF DIRECTORS</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The Board of Directors recommends the nominee set forth below for election as a Director and
urges each shareholder to vote &#147;FOR&#148; the nominee. Proxies in the accompanying form will be voted
at the Meeting, unless authority to do so is withheld, in favor of the election as a Director of
the nominee named below.</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s Board of Directors currently consists of six members divided into three classes,
with the members of each class serving three-year terms expiring at the third Annual General
Meeting of Shareholders after their election. In the event the proposal set forth herein regarding
the adoption of new Articles for the Company (Proposal 4) is approved, the Board has determined
that the size of the Board will be reduced from six (6)&nbsp;to five (5)&nbsp;members upon the effectiveness
of the new Articles. Consequently, only one Director is to be elected at the Meeting, to hold
office for a term of three years expiring at the 2008 Annual General Meeting of Shareholders, and
until his successor shall have been duly elected and qualified. The Company&#146;s Board of Directors,
upon the recommendation of the Nominating/Corporate Governance Committee, has nominated Stephen
Bragin to stand for reelection as a Director. Mr.&nbsp;Bragin was recommended to the
Nominating/Corporate Governance Committee of the Board for election as a Director by the Chief
Executive Officer of the Company. (Percy Luney will not stand for reelection at the Meeting but
will remain as a Director until the Meeting.) Assuming a quorum is present, the election of Mr.
Bragin as a Director requires that a plurality of the total votes present, or represented, and
entitled to vote at the Meeting vote in favor of his election. In the event Mr.&nbsp;Bragin is unable
to serve, the persons designated as proxies will cast votes for such other person in their
discretion as a substitute nominee. The Board of Directors has no reason to believe that the
nominee will be unavailable, or if elected, will decline to serve. Mr.&nbsp;Bragin is a resident of the
United States. Certain information is set forth below for the nominee for Director, as well as for
each Director whose term of office will continue after the Meeting.


<P align="center" style="font-size: 10pt">4
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="center" style="font-size: 10pt"><B>NOMINEE FOR DIRECTOR &#151;TERM TO EXPIRE 2008</B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="0%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="78%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Name</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Age</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Principal Occupation And Other Information</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Stephen Bragin
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">74</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Mr. Bragin has served as a director of the Company
since February&nbsp;10, 1999 and as a director of the
Company&#146;s two subsidiaries, Nicholas Data
Services, Inc. and Nicholas Financial, Inc., since
1987 and 1990, respectively. He has served as
Regional Development Director at the University of
South Florida as well as other related positions
for over five years.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><B>DIRECTORS CONTINUING IN OFFICE &#151;TERM TO EXPIRE 2006</B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="0%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="78%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Name</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Age</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Principal Occupation And Other Information</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Scott Fink
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">45</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Mr. Fink has served as a director of the Company
since August&nbsp;11, 2004. In 2001, Mr.&nbsp;Fink was
awarded the Hyundai of New Port Richey, Florida
dealership, where he is currently President and
Owner. In 1998, Mr.&nbsp;Fink formed S&#038;T Collision
Centers, which currently operates out of locations
in Clearwater and Brandon, Florida. Prior to 1998,
Mr.&nbsp;Fink owned and operated a Toyota and a
Mitsubishi Dealership in Clearwater, Florida. Mr.
Fink also previously worked for Ford Motor Company
in various management positions. Mr.&nbsp;Fink received
his Bachelor of Science degree in Accounting from
Wagner College, Staten Island, NY.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Alton R. Neal
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">58</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Mr. Neal has served as a director of the Company
since May&nbsp;17, 2000. He has been in the private
practice of law since 1975 and has been a partner
with the firm of Johnson, Blakely, Pope, Bokor,
Ruppel &#038; Burns, Tampa, Florida, since 1999. From
1994 until 1999, he was a partner in the firm of
Forlizzo &#038; Neal.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">5
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="center" style="font-size: 10pt"><B>DIRECTORS CONTINUING IN OFFICE &#151;TERM TO EXPIRE 2007</B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="0%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="78%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Name</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Age</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Principal Occupation And Other Information</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Peter L. Vosotas
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">63</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Mr. Vosotas founded the Company in 1985 and
has served as Chairman of the Board, Chief
Executive Officer and President of the
Company and each of its subsidiaries since
inception. Prior to founding the Company,
Mr.&nbsp;Vosotas held a variety of Sales and
Marketing positions with Ford Motor Company,
GTE and AT&#038;T Paradyne Corporation. Mr.
Vosotas attended the United States Naval
Academy and earned a Bachelor of Science
Degree in Electrical Engineering from The
University of New Hampshire.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Ralph T. Finkenbrink
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">44</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Mr. Finkenbrink has served as Senior Vice
President &#150; Finance of the Company since
July&nbsp;1997 and served as Vice President &#150;
Finance of the Company from 1992 to July
1997. He joined the Company in 1988 and
served as Controller of Nicholas Financial
and NDS until 1992. Prior to joining the
Company, he was a staff accountant for MBI,
Inc. from January&nbsp;1984 to March&nbsp;1985 and
Inventory Control Manager for the Dress
Barn, Inc. from March&nbsp;1985 to December&nbsp;1987.
Mr.&nbsp;Finkenbrink received his Bachelor of
Science Degree in Accounting from Mount St.
Mary&#146;s University in Emmitsburg, Maryland.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">6
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<!-- link1 "PROPOSAL 2: APPROVAL OF ALTERATIONS TO COMPANY&#146;S<BR> NOTICE OF ARTICLES" -->
<DIV align="left"><A NAME="005"></A></DIV>

<P align="center" style="font-size: 10pt"><B>PROPOSAL 2: APPROVAL OF ALTERATIONS TO COMPANY&#146;S<BR>
NOTICE OF ARTICLES</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The Board of Directors recommends the approval of the special resolution altering the Notice
of Articles to delete the pre-existing company provisions (&#147;PCPs&#148;), and urges each shareholder to
vote &#147;FOR&#148; such proposal. Executed and unmarked proxies in the accompanying form will be voted at
the Meeting in favor of such proposal.</B>


<P align="left" style="font-size: 10pt"><B>Overview</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On March&nbsp;29, 2004, the new British Columbia (Canada) Business Corporations Act (&#147;BCA&#148;) was
proclaimed, replacing the pre-existing British Columbia Company Act (the &#147;Company Act&#148;).
Accordingly, the Company is now subject to the BCA, and no longer governed by the Company Act. The
BCA is an updated corporate statute, and is designed to provide greater flexibility and efficiency
for British Columbia companies. For example, the new BCA does not impose any British Columbia or
Canadian residency requirements on the members of the Board of Directors of the Company.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In accordance with the requirements of the BCA, the Company has filed a transition application
with the British Columbian Registrar of Companies, the principal element of which involved
replacing the Company&#146;s Memorandum with a new form designated a Notice of Articles. The Company
filed its transition application as of July&nbsp;12, 2004.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a result of the Company having filed its transition application, it may alter its Notice of
Articles and adopt a new form of Articles to take advantage of the greater flexibility and
efficiency inherent in the BCA, and to make its Articles consistent with the terminology and
certain provisions of the BCA.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company proposes to alter its Notice of Articles to remove the application of certain
provisions prescribed in the BCA called the pre-existing company provisions (&#147;PCPs&#148;). Because
there were several provisions under the Company Act which do not exist in the BCA, the legislators
created a system pursuant to which certain provisions of the Company Act (namely, the PCPs)
survived the enactment of the BCA. The PCPs are statutory provisions intended to preserve the
application of certain provisions of the Company Act to companies formed under the Company Act
until the shareholders pass a special resolution making them inapplicable. The legislators of the
new BCA provided that the removal of such fundamental rights would require the approval of a
special majority of the shareholders. Because the Company is a reporting issuer, the only material
PCPs that are applicable to the Company are the requirements that:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A special resolution be approved by not less than three-quarters (3/4) of the
votes cast under the Company Act (as opposed to the two-thirds (2/3) majority applicable
under the BCA); and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company repurchase or redeem its shares ratably among shareholders.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">Removal of the first of these PCPs will allow a special resolution of the Company to be approved by
a two-thirds (2/3) majority vote. While the requirement of a two-thirds (2/3) majority vote to


<P align="center" style="font-size: 10pt">7
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">approve a special resolution could still impede the ability of a third party to acquire the Company
by means of a merger, tender offer, proxy contest or otherwise, the removal of this PCP will
reduce, to some extent, the ability of holders of less than a majority of the Company&#146;s shares to
block any action and, thus, will provide the Company with greater flexibility for future corporate
activities. Removal of the second of these PCPs will provide the Company with greater flexibility
in terms of effecting share repurchases, whether through a share repurchase program or otherwise.
From an individual shareholder&#146;s perspective, however, it means that such shareholder will no
longer have the right to compel the Company to repurchase or redeem his or her shares on a pro rata
basis in the event the Company has determined to effect a share repurchase or redemption. The
Company&#146;s Board of Directors is not currently considering implementing a share repurchase program
or effecting any share repurchases or redemptions, but it could do so in the future. There are no
other PCPs applicable to the Company.


<P align="left" style="font-size: 10pt"><B>Special Resolution</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the Meeting, shareholders will be asked to approve a special resolution altering the Notice
of Articles to remove the application of the PCPs. The text of the special resolution to be
considered and, if thought fit, approved at the Meeting is as follows:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>&#147;BE IT RESOLVED AS A SPECIAL RESOLUTION THAT:</I>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><I>1.</I></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>The Notice of Articles of the Company be altered to remove the
application of the pre-existing company provisions, as provided for in the
British Columbia Business Corporations Act, and the Company&#146;s Notice of
Articles be altered accordingly.</I></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><I>2.</I></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Any one director or officer of the Company be and is hereby authorized
to do all things and execute all instruments necessary or desirable to give
effect to this special resolution, including without limitation filing a
notice of alteration of the Notice of Articles with the British Columbia
Registrar of Companies.</I></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><I>3.</I></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Notwithstanding that this special resolution has been duly passed by
the shareholders of the Company, the directors of the Company be and are hereby
authorized and empowered to revoke this resolution at any time prior to the
effective date hereof, and to determine not to proceed with the alteration to
the Notice of Articles without further approval of the shareholders of the
Company.&#148;</I></TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>Vote Required</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assuming a quorum is present, approval of the foregoing special resolution requires that a

special majority of not less than three-quarters (3/4) of the total votes present, or represented,
and entitled to vote at the Meeting vote in favor of such proposal. As set out in the text of the
special resolution, notwithstanding its approval, the Board of Directors may determine not to
proceed with the alteration to the Notice of Articles at any time prior to its effective date.


<P align="center" style="font-size: 10pt">8
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- link1 "PROPOSAL 3: APPROVAL OF NEW FORM OF ARTICLES" -->
<DIV align="left"><A NAME="006"></A></DIV>

<P align="center" style="font-size: 10pt"><B>PROPOSAL 3: APPROVAL OF NEW FORM OF ARTICLES</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The Board of Directors recommends the approval of the special resolution altering the Articles
of the Company, and urges each shareholder to vote &#147;FOR&#148; such proposal. Executed and unmarked
proxies in the accompanying form will be voted at the Meeting in favor of such proposal.</B>


<P align="left" style="font-size: 10pt"><B>Overview</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to deleting the PCPs, the Company is proposing to replace its existing Articles in
their entirety with a new set of Articles. The new set of Articles (the &#147;New Articles&#148;) will make
the Company&#146;s Articles consistent with the terminology and provisions of the BCA. Most of the
changes in the New Articles are minor in nature, and will not affect shareholders or the day-to-day
administration of the Company. However, there are several key changes:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Directors will be able to approve a change of name of the Company without the
necessity of obtaining shareholder approval.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Directors will be able to increase the authorized capital of the Company, or
create one or more classes or series of shares, without the necessity of obtaining
shareholder approval.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The requirement that the Company purchase or redeem its shares on a pro-rata
basis will be deleted.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company will be able to hold general meetings of the shareholders outside the
Province of British Columbia, without special permission each year from the Registrar of
Companies.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company will not be required to publish advance notice of general meetings of
shareholders in any local newspapers.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additionally, as now permitted by the BCA, the Company proposes an amendment to its Notice of
Articles (the &#147;Notice Amendment&#148;) to increase the Company&#146;s authorized share structure to an
unlimited number of Common shares without par value and an unlimited number of Preference shares
without par value. Of the 50,000,000 Common shares and 5,000,000 Preference shares presently
authorized, 9,870,531 Common shares and no Preference shares were issued and outstanding as of the
Record Date. The increase in the Company&#146;s authorized shares will provide shares for various
purposes, including, without limitation: possible future stock splits or stock dividends; issuances
from time to time in the event opportunities are presented for the acquisition of other companies;
possible future public offerings or private placements; possible adoption of a rights plan; and
possible future employee stock option or benefit plans.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s Board of Directors will have the power to determine, with respect to any class
or series of Preference shares, the number and designation of shares, the powers, preferences and
rights, and the qualifications, limitations or restrictions of the class or series,


<P align="center" style="font-size: 10pt">9
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">including without limitation the dividend rights, dividend rate, conversion rights, voting
rights, redemption rights and terms (including sinking fund provisions), liquidation preferences
and other matters. The issuance of Preferred shares could decrease earnings and assets available
for distribution to holders of Common shares or adversely affect their rights and powers, including
voting rights. The issuance of Preferred shares may have the effect of delaying, deferring or
preventing a change in control. Except as otherwise indicated herein, the Company currently has no
understandings, agreements, plans or commitments relating to the issuance of additional Common
shares or Preference shares.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The New Articles and the Notice Amendment were approved by the Company&#146;s Board of Directors on
June&nbsp;30, 2005. The Board of Directors has determined, after giving due consideration to the
foregoing, that the adoption of the New Articles and the Notice Amendment would be in the best
interests of the Company and its shareholders. If the New Articles and the Notice Amendment are
approved by the Company&#146;s shareholders, the Company will file with the Registrar of Companies for
British Columbia (Canada) a Notice of Alteration, which will set forth the Notice Amendment and the
date of these changes. The New Articles and the Notice Amendment will become effective as of the
date specified in the Notice of Alteration.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event the New Articles and the Notice Amendment are approved by the shareholders and
the increase in the Company&#146;s authorized shares becomes effective, an unlimited number of Common
and/or Preference shares can be issued at such times and for such consideration as the Board of
Directors, in its discretion, determines without further shareholder action, except as may be
required by applicable law. Since the New Articles do not provide for preemptive rights,
shareholders will not have a preferential right to subscribe for their proportionate share of any
new issue of shares unless so provided by the Board of Directors. Issuance of any of the proposed
additional authorized shares, other than as a pro rata distribution to existing shareholders, would
dilute the proportionate voting power of existing shareholders.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company does not view the New Articles or the Notice Amendment as part of an
&#147;anti-takeover&#148; strategy. The Notice Amendment is not being advanced as a result of any known
effort by any party to accumulate shares of the Company&#146;s voting Common shares or to obtain control
of the Company. Nevertheless, the Notice Amendment might have the effect of discouraging an
attempt by another person or entity, through the acquisition of a substantial number of shares of
the Company&#146;s voting Common shares, to acquire control of the Company with a view to imposing a
merger, sale of all or any part of the Company&#146;s assets or a similar transaction, since the
issuance of new shares could be used to dilute the share ownership of such person or entity.
Furthermore, certain corporations have issued preferred shares or warrants or other rights to
acquire preferred shares or Common shares to the holders of their Common shares pursuant to rights
plans having terms designed to protect against the adverse consequences to shareholders of partial
takeovers and front-end loaded two-step takeovers and freezeouts. The purpose of such a rights plan
is to ensure that shareholders receive a fair price for their shares in the event of a takeover, by
requiring any person who seeks to acquire a significant block of the corporation&#146;s stock to obtain
a waiver of the rights plan from its board of directors. The Company&#146;s Board of Directors is not
currently considering adopting a rights plan for the Company, although if it were to do so in the
future, the unlimited additional authorized and unissued Common shares and Preference shares
contemplated by the Notice Amendment would be available for issuance pursuant thereto.


<P align="center" style="font-size: 10pt">10
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A copy of the proposed New Articles of the Company is attached hereto as <U>Appendix&nbsp;A</U>.
A copy of the proposed Notice of Alteration will be available for inspection at the Meeting and at
the Company&#146;s registered office, located at Suite&nbsp;1750 &#151; 1185 West Georgia Street, Vancouver,
British Columbia, during regular business hours up to the day before the Meeting.


<P align="left" style="font-size: 10pt"><B>Special Resolution</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the Meeting, shareholders will be asked to approve a special resolution deleting the
existing Articles of the Company in their entirety and replacing them with the New Articles. The
text of the special resolution to be considered and, if thought fit, approved at the Meeting is as
follows:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>&#147;BE IT RESOLVED AS A SPECIAL RESOLUTION THAT:</I>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><I>1.</I></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>The existing Articles of the Company be deleted in their entirety, and
the form of Articles presented to the shareholders at the annual general and
special meeting of the Company, a copy of which is attached as </I><U><I>Appendix
A</I></U><I> hereto, be adopted as the Articles of the Company.</I></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><I>2.</I></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>The Notice of Articles be altered to increase the authorized share
structure from 50,000,000 Common shares without par value to an unlimited
number of Common shares without par value.</I></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><I>3.</I></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>The Notice of Articles be altered to increase the authorized share
structure from 5,000,000 Preference shares without par value to an unlimited
number of Preference shares without par value.</I></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><I>4.</I></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Any one director or officer of the Company be and is hereby authorized
to do all things and execute all instruments necessary or desirable to give
effect to this special resolution, including without limitation delivering a
Notice of Alteration to the British Columbia Registrar of Companies.</I></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><I>5.</I></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Notwithstanding that this special resolution has been duly passed by
the shareholders of the Company, the directors of the Company be and are hereby
authorized and empowered to revoke this resolution at any time prior to the
effective date hereof, and to determine not to proceed with the alteration of
the Articles of the Company without further approval of the shareholders of the
Company.&#148;</I></TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>Vote Required</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assuming a quorum is present, approval of the foregoing special resolution requires that a
special majority of not less than three-quarters (3/4) of the total votes present, or represented,

and entitled to vote at the Meeting vote in favor of such proposal. As set out in the text of the
special resolution, notwithstanding its approval, the board of directors may determine not to
proceed with the alteration of the Articles at any time prior to its effective date.


<P align="center" style="font-size: 10pt">11
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- link1 "PROPOSAL 4: APPOINTMENT OF INDEPENDENT AUDITORS" -->
<DIV align="left"><A NAME="007"></A></DIV>

<P align="center" style="font-size: 10pt"><B>PROPOSAL 4: APPOINTMENT OF INDEPENDENT AUDITORS</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The Board of Directors and Audit Committee recommend the approval of the appointment of Dixon
Hughes PLLC as Independent Auditors of the Company for the fiscal year ending March&nbsp;31, 2006, and
urge each shareholder to vote &#147;FOR&#148; such proposal. Executed and unmarked proxies in the
accompanying form will be voted at the Meeting in favor of such proposal.</B>


<P align="left" style="font-size: 10pt"><B>Appointment of Independent Auditors</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors and Audit Committee propose the appointment of Dixon Hughes PLLC as
Independent Auditors of the Company for the fiscal year ending March&nbsp;31, 2006. Dixon Hughes PLLC
have been the Company&#146;s independent auditors since March&nbsp;3, 2004. No representative of Dixon Hughes
PLLC will be present at the Company&#146;s Annual General Meeting or available at the Meeting to answer
any questions or make any statements with respect to the Company.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ernst &#038; Young LLP (&#147;E&#038;Y&#148;) served as the Company&#146;s independent auditors from 1994 until 2003.
Effective following completion of its review of the Company&#146;s financial statements as of and for
the quarter ended September&nbsp;30, 2003, E&#038;Y resigned as the Company&#146;s independent public accountants.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E&#038;Y&#146;s reports on the Company&#146;s financial statements for the fiscal years ended March&nbsp;31, 2003
and 2002 did not contain an adverse opinion or a disclaimer of opinion, and none of such reports
was qualified or modified as to uncertainty, audit scope or accounting principles.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the fiscal years ended March&nbsp;31, 2003 and 2002, and the subsequent interim period ended
September&nbsp;30, 2003, there were not any disagreements between the Company and E&#038;Y on any matter of
accounting principles or practices, financial statement disclosures, or auditing scope or
procedure, which disagreements, if not resolved to the satisfaction of E&#038;Y, would have caused it to
make reference to the subject matter of the disagreements in connection with its reports.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company requested that E&#038;Y furnish a letter addressed to the Securities and Exchange
Commission (the &#147;Commission&#148;) stating whether E&#038;Y agreed with the above statements. On October&nbsp;3,
2003, E&#038;Y filed the letter that the Company requested with the Commission stating that E&#038;Y had read
the Company&#146;s statements and agreed with such statements.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective December&nbsp;3, 2003, the Company engaged the accounting form of Crisp Hughes Evans LLP
as its new independent auditors. Effective March&nbsp;1, 2004, Crisp Hughes Evans LLP merged with Dixon
Odom PLLC, with the combined firm now known as Dixon Hughes PLLC. On March&nbsp;3, 2004, the Company
engaged Dixon Hughes PLLC as its independent auditors effective as of the consummation of the
merger of the two firms.


<P align="center" style="font-size: 10pt">12
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the period from December&nbsp;3, 2003 through March&nbsp;3, 2004, there were no disagreements
between the Company and Crisp Hughes Evans LLP on any matter of accounting principles or practices,
financial statement disclosures, or auditing scope or procedure, which disagreements, if not
resolved to the satisfaction of Crisp Hughes Evans LLP, would have caused it to make reference to
the subject matter of the disagreements in connection with its reports.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company did not consult with Dixon Hughes PLLC (or its predecessors) during the two fiscal
years ended March&nbsp;31, 2003 and 2002 or during the subsequent interim periods from March&nbsp;31, 2003
through and including December&nbsp;3, 2003, or with Dixon Odom PLLC during the interim periods from
December&nbsp;3, 2003 through March&nbsp;3, 2004, on either the application of accounting principles to a
specified transaction, either completed or proposed, or the type of audit opinion that might be
rendered on the Company&#146;s consolidated financial statements.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company requested that Crisp Hughes Evans LLP furnish a letter addressed to the Commission
stating whether Crisp Hughes Evans LLP agreed with the above statements. On March&nbsp;4, 2004, Crisp
Hughes Evans LLP filed the letter that the Company requested with the SEC stating that it had read
the Company&#146;s statements and agreed with such statements.


<P align="left" style="font-size: 10pt"><B>Vote Required</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assuming a quorum is present, approval of the appointment of Dixon Hughes PLLC as Independent
Auditors of the Company for the fiscal year ending March&nbsp;31, 2006 requires that a majority of the
total votes present, or represented, and entitled to vote at the Meeting vote in favor of such
proposal.


<P align="left" style="font-size: 10pt"><B>Fees for Audit and Non-Audit Related Matters</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The fees charged by Dixon Hughes PLLC for professional services rendered in connection with
all audit and non-audit related matters for each of the fiscal years ended March&nbsp;31, 2005 and 2004,
respectively were as follows:

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="80%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>Fiscal Year Ended March 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2004</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Audit Fees (1)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>89,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>104,000</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Audit Related Fees (2)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>20,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>10,000</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Tax Fees (3)</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>34,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>14,000</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>All Other Fees</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="right"><B>None</B>&nbsp;&nbsp;&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="right"><B>None</B>&nbsp;&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top">
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">Audit fees consist of fees for the audit of the Company&#146;s annual financial
statements, review of the Company&#146;s financial statements included in the
Company&#146;s quarterly reports on Form 10-QSB and for 2004 include $54,000 related
to registration statements and consents pertaining to a stock offering
completed in June&nbsp;2004.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">Audit related fees consist primarily of fees for the audit of the
Company&#146;s retirement plan and in fiscal 2005, consultation regarding financial
reporting matters and consultation regarding SEC filing requirements.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">Tax fees consist of fees for tax compliance, tax advice and tax
planning services.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">13
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">






<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Audit Committee considered the provision of non-audit services in their consideration
of Dixon Hughes PLLC independence.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt"><B>Policy on Audit Committee Pre-Approval of Audit and Permissible Non-Audit Services of Independent
Auditors</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Audit Committee&#146;s policy is to pre-approve all audit and permissible non-audit services
provided by the Company&#146;s independent auditors in order to assure that the provision of such
services does not impair the auditor&#146;s independence. These services may include audit services,
audit-related services, tax services and other services. Pre-approval is generally provided for up
to one year and any pre-approval is detailed as to the particular service or category of services
and is generally subject to a specific budget. Management is required to periodically report to the
Audit Committee regarding the extent of services provided by the independent auditors in accordance
with this pre-approval, and the fees for the services performed to date. During the fiscal year
ended March&nbsp;31, 2005, all services were pre-approved by the Audit Committee in accordance with this
policy.

<!-- link1 "BOARD OF DIRECTORS" -->
<DIV align="left"><A NAME="008"></A></DIV>

<P align="center" style="font-size: 10pt"><B>BOARD OF DIRECTORS</B>



<P align="left" style="font-size: 10pt"><B>Directors Compensation</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Directors who are not executive officers of the Company each receive an annual retainer of
$5,000, plus $500 per Board of Directors meeting or committee meeting attended. Directors who are
executive officers of the Company receive no additional compensation for service as a member of
either the Board of Directors or any committee of the Board. Directors who are not employees of the
Company also are entitled to option grants under the Company&#146;s Non-Employee Director Stock Option
Plan. Under this Plan, each Non-Employee Director is entitled to receive options to purchase 7,500
Common shares at the time of his or her election to the Board of Directors. Each Non-Employee
Director also is entitled to receive options to purchase 7,500 Common shares on the day following
his or her reelection to the Board at the Annual General Meeting of Shareholders of the Company.
The exercise price of such options will be equal to 110% of the Fair Market Value of the underlying
shares on the date of grant of such options. The above options vest over a three-year period and
are exercisable at the rate of one-third of the total option each year.


<P align="left" style="font-size: 10pt"><B>Committees of the Board of Directors and Meeting Attendance</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company expects all members of the Board to attend the Meeting barring other significant
commitments or special circumstances. All of the Company&#146;s Board members attended the Company&#146;s
2004 Annual General Meeting of Shareholders. During the Company&#146;s fiscal year ended March&nbsp;31,
2005, there were four meetings of the Board, and each incumbent Director attended at least 75% of
such meetings.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors of the Company has the standing committees listed below.


<P align="center" style="font-size: 10pt">14
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Audit Committee</U>. The Board of Directors has established an Audit Committee. From
April&nbsp;1, 2004 until June&nbsp;30, 2005, the Audit Committee was comprised of two members, namely Messrs.
Neal (Chair) and Bragin. The Audit Committee held two meetings during the fiscal year ended March
31, 2005, and each of Messrs.&nbsp;Neal and Bragin attended both meetings. Effective June&nbsp;30, 2005, the
size of the Audit Committee was expanded from two to three members, and Mr.&nbsp;Fink was added to the
Audit Committee. The Board has determined that Messrs.&nbsp;Neal, Bragin and Fink satisfy the
independence requirements of current Securities and Exchange Commission rules and Nasdaq National
Market listing standards. The Board also has determined that Mr.&nbsp;Fink qualifies as an audit
committee financial expert as defined under these rules and listing standards.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Audit Committee assists the Board of Directors with its responsibilities by (A)&nbsp;overseeing
the Company&#146;s accounting and financial reporting processes and the audits of the Company&#146;s
financial statements and (B)&nbsp;monitoring (i)&nbsp;the Company&#146;s compliance with legal, risk management
and regulatory requirements, (ii)&nbsp;the Company&#146;s independent auditors&#146; qualifications and
independence, (iii)&nbsp;the performance of the Company&#146;s audit function and independent auditors, and
(iv)&nbsp;the Company&#146;s systems of internal control with respect to the integrity of financial records,
adherence to its policies and compliance with legal requirements. The Audit Committee: has sole
responsibility to retain and terminate the Company&#146;s independent auditors, subject to shareholder
ratification; has sole authority to pre-approve all audit and non-audit services performed by the
Company&#146;s independent auditors and the fees and terms of each engagement; appoints and oversees the
Company&#146;s internal auditor, and reviews the scope and results of each annual internal audit; and
reviews the Company&#146;s audited financial statements and related public disclosures, earnings, press
releases and other financial information and earnings guidance provided to analysts or rating
agencies. The Audit Committee is governed by a written charter, which sets forth the specific
functions and responsibilities of the Audit Committee. A copy of the current Audit Committee
charter is attached hereto as <U>Appendix&nbsp;B</U>.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Compensation Committee</U>. On June&nbsp;30, 2005, the Board of Directors established a
Compensation Committee, which is comprised of three directors, namely Messrs.&nbsp;Bragin, Fink and
Neal. The Board has determined that Messrs.&nbsp;Bragin, Fink and Neal satisfy the independence
requirements of current Nasdaq National Market listing standards.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The principal responsibilities of the Compensation Committee are to evaluate the performance
and approve the compensation of the Company&#146;s Chief Executive Officer and executive officers;
prepare an annual report on executive compensation for inclusion in future proxy statements of the
Company; and oversee the Company&#146;s compensation and benefit plans for key employees and
non-employee directors.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Compensation Committee reviews and approves corporate goals and objectives relevant to the
Company&#146;s Chief Executive Officer&#146;s compensation, evaluates the Chief Executive Officer&#146;s
performance in light of these goals and objectives and establishes his compensation levels based on
its evaluation. This Committee is also responsible for administration of the Company&#146;s existing
Employee Stock Option Plan and Non-Employee Director Stock Option Plan. The specific functions and
responsibilities of the Compensation Committee are set forth in its written charter.


<P align="center" style="font-size: 10pt">15
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Nominating/Corporate Governance Committee</U>. On June&nbsp;30, 2005, the Board of Directors
established a Nominating/Corporate Governance Committee, which is comprised of two directors,
namely Messrs.&nbsp;Bragin and Neal. The Board has determined that Messrs.&nbsp;Bragin and Neal satisfy the
independence requirements of current Nasdaq National Market listing standards. The
Nominating/Corporate Governance Committee is governed by a written charter, which will be reviewed
on an annual basis. A copy of the current Nominating/Corporate Governance Committee charter is
attached hereto as <U>Appendix&nbsp;C</U>. The Nominating/Corporate Governance Committee charter is
not currently available on the Company&#146;s web site.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The principal functions of the Nominating/Corporate Governance Committee are to: identify,
consider and recommend to the Board qualified director nominees for election at the Company&#146;s
annual meeting; review and make recommendations on matters involving the general operation of the
Board and its committees and recommend to the Board nominees for each committee of the Board; and
develop and recommend to the Board the adoption and appropriate revision of the Company&#146;s corporate
governance practices.


<P align="left" style="font-size: 10pt"><B>Nominations of Directors</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The entire Board by majority vote selects the Director nominees to stand for election at the
Company&#146;s annual general meetings of shareholders and to fill vacancies occurring on the Board,
based on the recommendations of the Nominating/Corporate Governance Committee. In selecting
nominees to recommend to the Board to stand for election as Directors, the Nominating/Corporate
Governance Committee will examine each Director nominee on a case-by-case basis regardless of who
recommended the nominee and take into account all factors it considers appropriate. Directors
shall be selected so that the Board is a diverse body. The Nominating/Corporate Governance
Committee believes, however, that the following minimum qualifications must be met by a Director
nominee to be recommended to stand for election as Director:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each Director must display high personal and professional ethics,
integrity and values.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each Director must have the ability to exercise sound business judgment.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each Director must be highly accomplished in his or her respective field,
with broad experience at the executive or policy-making level in business, government,
education, technology or public interest.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each Director must have relevant expertise and experience, and be able to
offer advice and guidance based on that expertise and experience.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each Director must be able to represent all shareholders of the Company
and be committed to enhancing long-term shareholder value.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each Director must have sufficient time available to devote to activities
of the Board and to enhance his or her knowledge of the Company&#146;s business.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">16
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Nominating/Corporate Governance Committee may use various sources for identifying and
evaluating nominees for Directors, including referrals from the Company&#146;s current Directors,
management and shareholders. The Nominating/Corporate Governance Committee will review the resume
and qualifications of each candidate identified through any of the sources referenced above, and
determine whether the candidate would add value to the Board. With respect to candidates that are
determined by the Nominating/Corporate Governance Committee to be potential nominees, one or more
members of the Committee will contact such candidates to determine the candidate&#146;s general
availability and interest in serving. Once it is determined that a candidate is a good prospect,
the candidate will be invited to meet with the full Committee, which will conduct a personal
interview with the candidate. During the interview, the Committee will evaluate whether the
candidate meets the guidelines and criteria adopted by the Board as well as exploring any special
or unique qualifications, expertise and experience offered by the candidate and how such
qualifications, expertise and/or experience may complement that of existing Board members. If the
candidate is approved by the Committee as a result of the Committee&#146;s determination that the
candidate will be able to add value to the Board and the candidate expresses his or her interest in
serving on the Board, the Committee will then review its conclusions with the Board and recommend
that the candidate be selected by the Board to stand for election by the shareholders or fill a
vacancy or newly created position on the Board.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recommendations for Director nominees to be considered by the Nominating/Corporate Governance
Committee, including recommendations from shareholders of the Company, should be sent in writing,
together with appropriate biographical information concerning each proposed nominee, to the
Nominating/Corporate Governance Committee of the Board of Directors, care of the Secretary of the
Company, at the Company&#146;s headquarters.


<P align="left" style="font-size: 10pt"><B>Communications with Board of Directors</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shareholders may communicate with the full Board or individual Directors by submitting such
communications in writing to Nicholas Financial, Inc., Attention: Board of Directors (or the
individual Director(s)), Building C #501B, 2454 McMullen Booth Road, Clearwater, FL 33759. Such
communications will be delivered directly to the appropriate Director(s).


<P align="left" style="font-size: 10pt"><B>Report of the Audit Committee</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Audit Committee oversees the Company&#146;s financial reporting process on behalf of the Board
of Directors. Management has the primary responsibility for the financial statements and the
reporting process including the systems of internal controls. In fulfilling its oversight
responsibilities, the Committee reviewed the audited financial statements in the Annual Report with
management including a discussion of the quality, not just the acceptability, of the accounting
principles, the reasonableness of significant judgments, and the clarity of disclosures in the
financial statements.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Committee reviewed with the Company&#146;s Independent Auditors, who are responsible for
expressing an opinion on the conformity of those audited financial statements with generally
accepted accounting principles, their judgments as to the quality, not just the acceptability, of
the


<P align="center" style="font-size: 10pt">17
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">Company&#146;s accounting principles and such other matters as are required to be discussed with
the Committee under generally accepted auditing standards. In addition, the Committee has discussed
with the Independent Auditors the Auditors&#146; independence from management and the Company, including
the matters in the written disclosures required by the Independence Standards Board Standard No.&nbsp;1
(Independence Discussions with Audit Committees), and considered the compatibility of nonaudit
services with the Auditors&#146; independence.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Committee discussed with the Company&#146;s Independent Auditors the overall scope and plans
for their respective audits. The Committee meets with the internal and independent auditors, with
and without management present, to discuss the results of their examinations, their evaluations of
the Company&#146;s internal controls, and the overall quality of the Company&#146;s financial reporting. The
Committee held two meetings during the fiscal year ended March&nbsp;31, 2005.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In reliance on the reviews and discussions referred to above, the Committee recommended to the
Board of Directors (and the Board has approved) that the audited financial statements be included
in the Annual Report for filing with the Commission. The Committee and the Board have also
recommended, subject to shareholder approval, the selection of the Company&#146;s Independent Auditors
for the fiscal year ending March&nbsp;31, 2006.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The foregoing report of the Audit Committee does not constitute soliciting material and should
not be deemed filed or incorporated by reference into any other Company filing under the Securities
Act of 1933 or the Securities Exchange Act of 1934, except to the extent the Company specifically
incorporates such report by reference therein.


<P align="left" style="font-size: 10pt">Alton Neal, Audit Committee Chair<BR>
Stephen Bragin, Audit Committee Member<BR>
June&nbsp;27, 2005


<P align="center" style="font-size: 10pt">18
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- link1 "EXECUTIVE OFFICERS AND COMPENSATION" -->
<DIV align="left"><A NAME="009"></A></DIV>

<P align="center" style="font-size: 10pt"><B>EXECUTIVE OFFICERS AND COMPENSATION</B>



<P align="center" style="font-size: 10pt"><B>(Form&nbsp;51-102F6, National Instrument 51-102)</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has two (2)&nbsp;executive officers, Peter L. Vosotas, Chairman of the Board, Chief
Executive Officer and President, and Ralph T. Finkenbrink, Senior Vice-President and Chief
Financial Officer. For additional information regarding, Messrs.&nbsp;Vosotas and Finkenbrink, see
&#147;Proposal 1: Election of Directors&#148; above. For the fiscal year ended March&nbsp;31, 2005, total cash
compensation of US $849,832 was paid to the Company&#146;s executive officers. Except pursuant to option
grants as described below, there are no plans in effect pursuant to which cash or non-cash
compensation was paid or distributed to the executive officers during the most recently completed
financial year or is proposed to be paid or distributed in a subsequent year.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth certain information concerning compensation paid to or earned
by each of the Company&#146;s executive officers for the fiscal years ended March&nbsp;31, 2005, 2004 and
2003:


<P align="center" style="font-size: 10pt"><FONT style="font-variant: SMALL-CAPS"><B>Summary Compensation Table</B></FONT>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><FONT style="font-variant: SMALL-CAPS">Long-Term </FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><FONT style="font-variant: SMALL-CAPS">Fiscal </FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><FONT style="font-variant: SMALL-CAPS">Compensation</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><FONT style="font-variant: SMALL-CAPS">Year </FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><FONT style="font-variant: SMALL-CAPS">Shares </FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><FONT style="font-variant: SMALL-CAPS">Ended </FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 0px solid #000000"><FONT style="font-variant: SMALL-CAPS">Annual Compensation</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><FONT style="font-variant: SMALL-CAPS">Underlying</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><FONT style="font-variant: SMALL-CAPS">All Other </FONT></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><FONT style="font-variant: SMALL-CAPS">Name &#038; Principal Position</FONT></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><FONT style="font-variant: SMALL-CAPS">March 31</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><FONT style="font-variant: SMALL-CAPS">Salary</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><FONT style="font-variant: SMALL-CAPS">Bonus</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><FONT style="font-variant: SMALL-CAPS">Other</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><FONT style="font-variant: SMALL-CAPS">Options</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><FONT style="font-variant: SMALL-CAPS">Compensation</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">PETER L.
VOSOTAS<BR>
Chairman of the Board, Chief<BR>
Executive Officer and President</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2005</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">186,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">464,285</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Nil</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">225,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8,439</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">183,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">304,060</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Nil</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">225,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8,439</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2003</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">174,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">270,759</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Nil</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">225,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,453</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">RALPH T.
FINKENBRINK<BR>
Senior Vice President and Chief<BR>
Financial Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2005</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">113,125</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">86,422</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Nil</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">112,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,104</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">105,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">61,083</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Nil</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,104</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2003</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">100,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">44,565</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Nil</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,135</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<P>
 <DIV style="width:10%;border-bottom:1pt solid #000000;font-size:1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Note: All of the above compensation amounts are expressed in U.S. dollars.
</DIV>

<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Note: Option shares in the above table have been adjusted for the three-for-two stock split
effective June&nbsp;17, 2005.


<P align="center" style="font-size: 10pt">19
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt"><B>Long Term Incentive Plan (LTIP)&nbsp;Awards</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company does not have a LTIP, pursuant to which cash or non-cash compensation (other than
stock options) intended to serve as an incentive for performance (whereby performance is measured
by reference to financial performance or the price of the Company&#146;s securities) was paid or
distributed to the Company&#146;s executive officers during the fiscal year ended March&nbsp;31, 2005.


<P align="left" style="font-size: 10pt"><B>Options and Stock Appreciation Rights (SARs)</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company currently maintains an Employee Stock Option Plan (the &#147;Employee Plan&#148;), under
which stock options have been granted and may be granted to purchase up to an aggregate of
1,050,000 Common shares, and a Non-Employee Director Stock Option Plan (the &#147;Director Plan&#148;), under
which stock options had been granted and may be granted to purchase up to an aggregate of 360,000
Common shares. As of March&nbsp;31, 2005, stock options to purchase a total of up to 992,550 Common
shares had been granted under the Employee Plan, leaving options for 57,450 Common shares available
for issuance thereunder, and stock options to purchase a total of up to 260,000 Common shares had
been granted under the Director Plan, leaving options for 100,000 Common shares available for
issuance thereunder. As of March&nbsp;31, 2005, no SARs had been granted to the Company&#146;s executive
officers by the Company.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth information with respect to grants of stock options during the
fiscal year ended March&nbsp;31, 2005 to the executive officers of the Company:


<P align="center" style="font-size: 10pt"><FONT style="font-variant: SMALL-CAPS"><B>Option Grants During Fiscal 2005</B></FONT>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><FONT style="font-variant: SMALL-CAPS">Market Value </FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><FONT style="font-variant: SMALL-CAPS">% of Total </FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><FONT style="font-variant: SMALL-CAPS">of Securities </FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><FONT style="font-variant: SMALL-CAPS">Options </FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><FONT style="font-variant: SMALL-CAPS">Underlying </FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><FONT style="font-variant: SMALL-CAPS">Granted to </FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><FONT style="font-variant: SMALL-CAPS">Options on </FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><FONT style="font-variant: SMALL-CAPS">Name of Executive </FONT></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><FONT style="font-variant: SMALL-CAPS">Option </FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><FONT style="font-variant: SMALL-CAPS">Employees in </FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><FONT style="font-variant: SMALL-CAPS">Exercise Price </FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><FONT style="font-variant: SMALL-CAPS">Date of Grant </FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><FONT style="font-variant: SMALL-CAPS">Expiration </FONT></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><FONT style="font-variant: SMALL-CAPS">Officer</FONT></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><FONT style="font-variant: SMALL-CAPS">Granted</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><FONT style="font-variant: SMALL-CAPS">Fiscal 2005</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><FONT style="font-variant: SMALL-CAPS">($/Share)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><FONT style="font-variant: SMALL-CAPS">($/Share)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><FONT style="font-variant: SMALL-CAPS">Date</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Peter L. Vosotas</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Nil</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ralph T. Finkenbrink</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Nil</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt">20
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth information with respect to aggregate stock option
exercises during the fiscal year ended March&nbsp;31, 2005 by the executive officers of the Company and
the fiscal year end value of unexercised options held by such executive officers.


<P align="center" style="font-size: 10pt"><FONT style="font-variant: SMALL-CAPS"><B>Aggregated Option Exercises in Fiscal 2005</B></FONT><BR>
<FONT style="font-variant: SMALL-CAPS"><B>and Fiscal Year-End Option Values</B></FONT>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="60%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><FONT style="font-variant: SMALL-CAPS">Number of </FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><FONT style="font-variant: SMALL-CAPS">Value of </FONT></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><FONT style="font-variant: SMALL-CAPS">Unexercised </FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><FONT style="font-variant: SMALL-CAPS">Unexercised in-the-</FONT></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><FONT style="font-variant: SMALL-CAPS">Options at Fiscal </FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><FONT style="font-variant: SMALL-CAPS">Money Options at </FONT></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><FONT style="font-variant: SMALL-CAPS">Number Of Shares </FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><FONT style="font-variant: SMALL-CAPS">Year End </FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><FONT style="font-variant: SMALL-CAPS">Fiscal Year End (2) </FONT></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><FONT style="font-variant: SMALL-CAPS">Name of Executive </FONT></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><FONT style="font-variant: SMALL-CAPS">Acquired on </FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><FONT style="font-variant: SMALL-CAPS">Aggregate Value </FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><FONT style="font-variant: SMALL-CAPS">Exercisable/ </FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><FONT style="font-variant: SMALL-CAPS">Exercisable/ </FONT></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><FONT style="font-variant: SMALL-CAPS">Officer</FONT></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><FONT style="font-variant: SMALL-CAPS">Exercise</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><FONT style="font-variant: SMALL-CAPS">Realized (1)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><FONT style="font-variant: SMALL-CAPS">Unexercisable</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><FONT style="font-variant: SMALL-CAPS">Unexercisable</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Peter L. Vosotas</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="right">Nil</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="right">Nil</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">225,000/0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,411,000/$0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ralph T. Finkenbrink</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">281,250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">112,500/0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,195,300/$0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top">
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">The aggregate value realized as shown above is calculated by the difference between the
exercise price and the market price at the time of exercise, and does not necessarily mean the
shares were sold.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">Potential value of the exercisable/unexercisable in the money options calculated by
multiplying the number of shares that may be acquired upon the exercise of options by the
difference between (i)&nbsp;the closing sales price per share on March&nbsp;31, 2005 ($12.00 per share,
as adjusted) and (ii)&nbsp;the exercise price per share.</TD>
</TR>

</TABLE>



<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Note: Option shares in the above table have been adjusted for the three-for-two split effective
June&nbsp;17, 2005.


<P align="left" style="font-size: 10pt"><B>Employment Agreements</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective March&nbsp;16, 2001, the Company entered into an employment agreement with Peter L.
Vosotas, Chairman of the Board, President and Chief Executive Officer. The agreement currently
provides for a minimum base salary of $186,000 and annual performance bonuses as determined by the
Company&#146;s Board of Directors. The initial term of this agreement was for a period of one year,
however, the agreement automatically renews for successive two-year terms unless the Company
provides to Mr.&nbsp;Vosotas, at least sixty days prior to the expiration of any term, written
notification that it intends not to renew this agreement. Mr.&nbsp;Vosotas&#146;s employment agreement
provides that, if he is terminated by the Company without cause, he shall be entitled to severance
equal to the sum of two times his annual base salary in effect at the time of such termination and
his average annual bonus and other compensation for the two full calendar years immediately
preceding such termination. Mr.&nbsp;Vosotas&#146;s agreement further provides that, during the term of the
agreement and for a period of two years thereafter, Mr.&nbsp;Vosotas will not, directly or indirectly,
compete with the Company by engaging in certain proscribed activities.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective November&nbsp;22, 1999, the Company entered into an employment agreement with Ralph T.
Finkenbrink, Senior Vice-President of Finance. The agreement currently provides for a minimum base
salary of $115,000 and annual performance bonuses as determined by the Company&#146;s Board of
Directors. The initial term of this agreement was for a period of one year, however, the agreement
automatically renews for successive two-year terms unless the Company provides to Mr.&nbsp;Finkenbrink,
at least sixty days prior to the expiration of any term, written


<P align="center" style="font-size: 10pt">21
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">notification that it intends not to renew this agreement. Mr.&nbsp;Finkenbrink&#146;s employment
agreement provides that, if he is terminated by the Company without cause, he shall be entitled to
severance equal to the sum of two times his annual base salary in effect at the time of such
termination and his average annual bonus and other compensation for the two full calendar years
immediately preceding such termination. Mr.&nbsp;Finkenbrink&#146;s agreement further provides that, during
the term of the agreement and for a period of two years thereafter, Mr.&nbsp;Finkenbrink will not,
directly or indirectly; compete with the Company by engaging in certain proscribed activities.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event the Company terminated without cause, as of the day of this proxy statement, the
employment of Peter L. Vosotas, the amount of severance would be equal to $1,140,346. In the event
the Company terminated without cause, as of the day of this proxy statement, the employment of
Ralph T. Finkenbrink, the amount of severance would be equal to $377,506.

<!-- link1 "SECTION 16(A) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE" -->
<DIV align="left"><A NAME="010"></A></DIV>

<P align="center" style="font-size: 10pt"><B>SECTION 16(A) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;16(a) of the Securities Exchange Act of 1934 requires the Company&#146;s executive
officers, directors and more than 10% shareholders to file reports of their beneficial ownership of
the Company&#146;s Common shares with the Commission and furnish copies of such reports to the Company.
During the fiscal year ended March&nbsp;31, 2005 the executive officers and directors of the Company
filed with the Commission on a timely basis all required reports relating to transactions involving
equity securities of the Company beneficially owned by them. The Company has relied on the written
representation of its executive officers and directors and copies of the reports they have filed
with the Commission in providing this information.

<!-- link1 "INDEBTEDNESS OF DIRECTORS AND EXECUTIVE OFFICERS" -->
<DIV align="left"><A NAME="011"></A></DIV>

<P align="center" style="font-size: 10pt"><B>INDEBTEDNESS OF DIRECTORS AND EXECUTIVE OFFICERS</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No Director or executive officer of the Company, no proposed nominee for election as a
Director of the Company, and no associate or affiliate of any of them, is or has been indebted to
the Company or its subsidiaries at any time since the beginning of the Company&#146;s last completed
financial year.

<!-- link1 "CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS" -->
<DIV align="left"><A NAME="012"></A></DIV>

<P align="center" style="font-size: 10pt"><B>CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has outstanding promissory notes issued to Peter L. Vosotas, President, Chief
Executive Officer, and Chairman of the Board of the Company. As of March&nbsp;31, 2005 and 2004, the
aggregate principal balance of such notes totaled approximately $1.0&nbsp;million and $682,000,
respectively. These promissory notes are due upon thirty-day demand by Mr.&nbsp;Vosotas and carry an
interest rate equal to the average cost of funds for the Company, plus twenty-five basis points.
These notes have been approved by the Audit Committee of the Board of Directors and are on terms no
less favorable to the Company than could be obtained from an unaffiliated third party.


<P align="center" style="font-size: 10pt">22
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- link1 "INTEREST OF CERTAIN PERSONS IN MATTERS TO BE ACTED UPON" -->
<DIV align="left"><A NAME="013"></A></DIV>

<P align="center" style="font-size: 10pt"><B>INTEREST OF CERTAIN PERSONS IN MATTERS TO BE ACTED UPON</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No director or executive officer of the Company, no nominee for election as a director of the
Company, no person who has been a director or executive officer of the Company since the
commencement of the Company&#146;s last completed fiscal year and no associate or affiliate of any of
the foregoing has any material interest, direct or indirect, by way of beneficial ownership or
securities or otherwise, in any matter to be acted upon at the Meeting.

<!-- link1 "SHAREHOLDER PROPOSALS" -->
<DIV align="left"><A NAME="014"></A></DIV>

<P align="center" style="font-size: 10pt"><B>SHAREHOLDER PROPOSALS</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The deadline for submission of shareholder proposals pursuant to Rule&nbsp;14a-8 under the
Securities Exchange Act of 1934, as amended (&#147;Rule&nbsp;14a-8&#148;), for inclusion in the Company&#146;s proxy
statement for its 2006 Annual General Meeting of Shareholders is March&nbsp;15, 2006. After May&nbsp;29,
2006, notice to the Company of a shareholder proposal submitted other than pursuant to Rule&nbsp;14a-8
is considered untimely, and the persons named in proxies solicited by the Board of Directors of the
Company for the 2006 Annual General Meeting may exercise discretionary voting power with respect to
any such proposal.

<!-- link1 "OTHER MATTERS" -->
<DIV align="left"><A NAME="015"></A></DIV>

<P align="center" style="font-size: 10pt"><B>OTHER MATTERS</B>



<P align="left" style="font-size: 10pt">MANAGEMENT KNOWS OF NO OTHER MATTERS TO COME BEFORE THE MEETING OTHER THAN THOSE REFERRED TO IN THE
NOTICE OF MEETING. HOWEVER, SHOULD ANY OTHER MATTERS PROPERLY COME BEFORE THE MEETING, THE SHARES
REPRESENTED BY THE PROXY SOLICITED HEREBY WILL, ON A POLL, BE VOTED ON SUCH MATTERS IN ACCORDANCE
WITH THE BEST JUDGMENT OF THE PERSONS VOTING THE SHARES REPRESENTED BY THE PROXY.

<!-- link1 "APPROVAL AND CERTIFICATION" -->
<DIV align="left"><A NAME="016"></A></DIV>

<P align="center" style="font-size: 10pt"><B>APPROVAL AND CERTIFICATION</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The contents of this Information Circular have been approved and this mailing has been
authorized by the Directors of the Company.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Where information contained in this Information Circular rests specifically within the
knowledge of a person other than the Company, and that person has provided the information to the
Company, the Company has relied upon information furnished by such person.


<P align="center" style="font-size: 10pt">23
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The foregoing contains no untrue statement of material fact and does not omit to state a
material fact that is required to be stated or that is necessary to make a statement not misleading
in the light of the circumstances in which it was made.


<P align="left" style="font-size: 10pt">Dated this 13th day of July, 2005



<P align="left" style="font-size: 10pt"><B>BY ORDER OF THE BOARD OF DIRECTORS</B>



<P align="left" style="font-size: 10pt">/s/ Peter L. Vosotas<BR>
Chairman of the Board,<BR>
Chief Executive Officer and President



<P align="center" style="font-size: 10pt">24
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">





<P align="right" style="font-size: 10pt"><FONT style="font-variant: SMALL-CAPS"><U><B>Appendix&nbsp;A</B></U></FONT>



<P align="center" style="font-size: 10pt"><FONT style="font-variant: SMALL-CAPS"><B>Nicholas Financial, Inc.</B></FONT>


<DIV align="center" style="font-size: 10pt">(the &#147;Company&#148;)</DIV>



<P align="center" style="font-size: 10pt"><B>ARTICLES</B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="85%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Page</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">1.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT style="font-variant: SMALL-CAPS">Interpretation</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">1.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Definitions</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">1.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>Business Corporations Act </I>and <I>Interpretation Act </I>Definitions Applicable</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT style="font-variant: SMALL-CAPS">Shares and Share Certificates</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Authorized Share Structure</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Share Certificate</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Shareholder Entitled to Certificate or Acknowledgment</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2.4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Delivery by Mail</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2.5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Replacement of Worn Out or Defaced Certificate or Acknowledgement</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2.6</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Replacement of Lost, Stolen or Destroyed Certificate or Acknowledgment</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2.7</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Splitting Share Certificates</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2.8</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certificate Fee</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2.9</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Recognition of Trusts</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">3.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT style="font-variant: SMALL-CAPS">Issue of Shares</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">3.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Directors Authorized</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">3.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Commissions and Discounts</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">3.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Brokerage</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">3.4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Conditions of Issue</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">3.5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Share Purchase Warrants and Rights</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">4.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT style="font-variant: SMALL-CAPS">Share Registers</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">4.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Central Securities Register</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">4.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Closing Register</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">5.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT style="font-variant: SMALL-CAPS">Share Transfers</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">5.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Registering Transfers</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">5.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Instrument of Transfer</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">5.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Transferor Remains Shareholder</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">5.4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Signing of Instrument of Transfer</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">5.5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Enquiry as to Title Not Required</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">5.6</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Transfer Fee</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">6.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT style="font-variant: SMALL-CAPS">Transmission of Shares</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">6.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Legal Personal Representative Recognized on Death</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">6.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Rights of Legal Personal Representative</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">7.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT style="font-variant: SMALL-CAPS">Purchase of Shares</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">7.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Company Authorized to Purchase Shares</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">7.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Purchase When Insolvent</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">7.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Sale and Voting of Purchased Shares</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">8.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT style="font-variant: SMALL-CAPS">Borrowing Powers</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">9.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT style="font-variant: SMALL-CAPS">Alterations</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt">- ii -


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="85%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Page</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">9.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Alteration of Authorized Share Structure</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">9.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consolidations and
&#147;Call-in&#148; Subdivisions</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">9.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Special Rights and Restrictions</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">9.4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Change of Name</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">9.5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Other Alterations</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">10.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT style="font-variant: SMALL-CAPS">Meetings of Shareholders</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">10.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Annual General Meetings</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">10.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Resolution Instead of Annual General Meeting</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">10.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Calling of Meetings of Shareholders</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">10.4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Notice for Meetings of Shareholders</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">10.5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Record Date for Notice</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">10.6</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Record Date for Voting</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">10.7</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Failure to Give Notice and Waiver of Notice</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">10.8</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Notice of Special Business at Meetings of Shareholders</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">11.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT style="font-variant: SMALL-CAPS">Proceedings at Meetings of Shareholders</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">11.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Special Business</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">11.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Special Majority</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">11.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Quorum</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">11.4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">One Shareholder May Constitute Quorum</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">11.5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Other Persons May Attend</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">11.6</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Requirement of Quorum</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">11.7</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Lack of Quorum</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">11.8</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Lack of Quorum at Succeeding Meeting</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">11.9</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chair</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">11.10</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Selection of Alternate Chair</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">11.11</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Adjournments</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">11.12</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Notice of Adjourned Meeting</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">11.13</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Decisions by Show of Hands or Poll</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">11.14</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Declaration of Result</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">11.15</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Motion Need Not be Seconded</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">11.16</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Casting Vote</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">11.17</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Manner of Taking Poll</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">11.18</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Demand for Poll on Adjournment</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">11.19</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chair Must Resolve Dispute</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">11.20</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Casting of Votes</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">11.21</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Demand for Poll</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">11.22</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Demand for Poll Not to Prevent Continuance of Meeting</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">11.23</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Retention of Ballots and Proxies</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">12.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT style="font-variant: SMALL-CAPS">Votes of Shareholders</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">12.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Number of Votes by Shareholder or by Shares</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">12.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Votes of Persons in Representative Capacity</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">12.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Votes by Joint Holders</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">12.4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Legal Personal Representatives as Joint Shareholders</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">12.5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Representative of a Corporate Shareholder</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">12.6</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Proxy Provisions Do Not Apply to All Companies</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">12.7</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Appointment of Proxy Holders</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">12.8</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Alternate Proxy Holders</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">12.9</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">When Proxy Holder Need Not Be Shareholder</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">12.10</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Deposit of Proxy</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">12.11</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Validity of Proxy Vote</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">12.12</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Proxy</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt">- iii -


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="85%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Page</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">12.13</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Revocation of Proxy</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">12.14</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Revocation of Proxy Must Be Signed</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">12.15</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Production of Evidence of Authority to Vote</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">13.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT style="font-variant: SMALL-CAPS">Directors</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">13.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">First Directors; Number of Directors</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">13.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Change in Number of Directors</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">13.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Directors&#146; Acts Valid Despite Vacancy</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">13.4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Qualifications of Directors</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">13.5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Remuneration of Directors</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">13.6</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Reimbursement of Expenses of Directors</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">13.7</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Special Remuneration for Directors</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">13.8</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Gratuity, Pension or Allowance on Retirement of Director</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">14.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT style="font-variant: SMALL-CAPS">Election and Removal of Directors</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">14.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Election at Annual General Meeting</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">14.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent to be a Director</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">14.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Failure to Elect or Appoint Directors</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">14.4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Places of Retiring Directors Not Filled</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">14.5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Directors May Fill Casual Vacancies</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">14.6</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Remaining Directors Power to Act</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">14.7</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Shareholders May Fill Vacancies</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">14.8</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Additional Directors</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">14.9</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Ceasing to be a Director</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">14.10</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Removal of Director by Shareholders</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">14.11</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Removal of Director by Directors</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">15.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT style="font-variant: SMALL-CAPS">Alternate Directors</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">15.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Appointment of Alternate Director</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">15.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Notice of Meetings</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">15.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Alternate for More Than One Director Attending Meetings</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">15.4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent Resolutions</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">15.5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Alternate Director Not an Agent</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">15.6</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Revocation of Appointment of Alternate Director</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">15.7</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Ceasing to be an Alternate Director</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">15.8</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Remuneration and Expenses of Alternate Director</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">16.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT style="font-variant: SMALL-CAPS">Powers and Duties of Directors</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">16.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Powers of Management</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">16.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Appointment of Attorney of Company</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">17.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT style="font-variant: SMALL-CAPS">Disclosure of Interest of Directors</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">17.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Obligation to Account for Profits</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">17.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Restrictions on Voting by Reason of Interest</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">17.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Interested Director Counted in Quorum</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">17.4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Disclosure of Conflict of Interest or Property</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">17.5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director Holding Other Office in the Company</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">17.6</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">No Disqualification</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">17.7</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Professional Services by Director or Officer</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">17.8</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director or Officer in Other Corporations</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">18.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT style="font-variant: SMALL-CAPS">Proceedings of Directors</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">18.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Meetings of Directors</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">18.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Voting at Meetings</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">18.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chair of Meetings</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt">- iv -


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="85%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Page</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">18.4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Meetings by Telephone or Other Communications Medium</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">18.5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Calling of Meetings</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">18.6</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Notice of Meetings</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">18.7</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">When Notice Not Required</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">18.8</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Meeting Valid Despite Failure to Give Notice</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">18.9</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Waiver of Notice of Meetings</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">18.10</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Quorum</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">18.11</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Validity of Acts Where Appointment Defective</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">18.12</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent Resolutions in Writing</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">19.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT style="font-variant: SMALL-CAPS">Executive and Other Committees</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">19.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Appointment and Powers of Executive Committee</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">19.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Appointment and Powers of Other Committees</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">19.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Obligations of Committees</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">19.4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Powers of Board</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">19.5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Committee Meetings</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">20.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT style="font-variant: SMALL-CAPS">Officers</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">20.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Directors May Appoint Officers</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">20.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Functions, Duties and Powers of Officers</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">20.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Qualifications</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">20.4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Remuneration and Terms of Appointment</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">21.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT style="font-variant: SMALL-CAPS">Indemnification</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">21.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Definitions</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">21.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Mandatory Indemnification of Directors and Former Directors</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">21.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Indemnification of Other Persons</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">21.4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Non-Compliance with <I>Business Corporations Act</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">21.5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Company May Purchase Insurance</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">22.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT style="font-variant: SMALL-CAPS">Dividends</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">22.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Payment of Dividends Subject to Special Rights</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">22.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Declaration of Dividends</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">22.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">No Notice Required</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">22.4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Record Date</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">22.5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Manner of Paying Dividend</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">22.6</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Settlement of Difficulties</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">22.7</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">When Dividend Payable</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">22.8</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dividends to be Paid in Accordance with Number of Shares</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">22.9</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Receipt by Joint Shareholders</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">22.10</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dividend Bears No Interest</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">22.11</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fractional Dividends</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">22.12</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Payment of Dividends</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">22.13</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Capitalization of Surplus</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">23.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT style="font-variant: SMALL-CAPS">Accounting Records</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">23.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Recording of Financial Affairs</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">23.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Inspection of Accounting Records</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">24.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT style="font-variant: SMALL-CAPS">Notices</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">24.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Method of Giving Notice</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">24.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Deemed Receipt of Mailing</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">24.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certificate of Sending</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">24.4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Notice to Joint Shareholders</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">24.5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Notice to Trustees</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt">- v -


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="85%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Page</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">25.</DIV></TD>

    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT style="font-variant: SMALL-CAPS">Seal</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">25.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Who May Attest Seal</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">25.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Sealing Copies</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">25.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Mechanical Reproduction of Seal</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">26.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT style="font-variant: SMALL-CAPS">Prohibitions</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">26.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Definitions</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">26.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Application</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">26.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent Required for Transfer of Shares or Designated Securities</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">27.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT style="font-variant: SMALL-CAPS">Change of Registered and Records Offices</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">28.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT style="font-variant: SMALL-CAPS">Preference Shares</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt">&nbsp;

<P align="left" style="font-size: 10pt"><FONT style="font-variant: SMALL-CAPS"><B>1.</B></FONT> <FONT style="font-variant: SMALL-CAPS"><B>Interpretation</B></FONT>



<P align="left" style="font-size: 10pt"><B>1.1 Definitions</B>



<P align="left" style="font-size: 10pt">In these Articles, unless the context otherwise requires:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;board of directors&#148;, &#147;directors&#148; and &#147;board&#148; mean the directors or sole
director of the Company for the time being;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<I>Business Corporations Act</I>&#148; means the <I>Business Corporations Act </I>(British
Columbia) from time to time in force and all amendments thereto and includes all
regulations and amendments thereto made pursuant to that Act;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;legal personal representative&#148; means the personal or other legal
representative of the shareholder;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;registered address&#148; of a shareholder means the shareholder&#146;s address as
recorded in the central securities register;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;seal&#148; means the seal of the Company, if any.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>1.2 </B><B><I>Business Corporations Act </I></B><B>and </B><B><I>Interpretation Act </I></B><B>Definitions Applicable</B>



<P align="left" style="font-size: 10pt">The definitions in the <I>Business Corporations Act </I>and the definitions and rules of construction in
the <I>Interpretation Act</I>, with the necessary changes, so far as applicable, and unless the context
requires otherwise, apply to these Articles as if they were an enactment. If there is a conflict
between a definition in the <I>Business Corporations Act </I>and a definition or rule in the
<I>Interpretation Act </I>relating to a term used in these Articles, the definition in the <I>Business
Corporations Act </I>will prevail in relation to the use of the term in these Articles. If there is a
conflict between these Articles and the <I>Business Corporations Act</I>, the <I>Business Corporations Act</I>
will prevail.



<P align="left" style="font-size: 10pt"><FONT style="font-variant: SMALL-CAPS"><B>2.</B></FONT> <FONT style="font-variant: SMALL-CAPS"><B>Shares and Share Certificates</B></FONT>



<P align="left" style="font-size: 10pt"><B>2.1 Authorized Share Structure</B>



<P align="left" style="font-size: 10pt">The authorized share structure of the Company consists of shares of the class or classes and
series, if any, described in the Notice of Articles of the Company.



<P align="left" style="font-size: 10pt"><B>2.2 Form of Share Certificate</B>



<P align="left" style="font-size: 10pt">Each share certificate issued by the Company must comply with, and be signed as required by, the
<I>Business Corporations Act</I>.



<P align="left" style="font-size: 10pt"><B>2.3 Shareholder Entitled to Certificate or Acknowledgment</B>



<P align="left" style="font-size: 10pt">Each shareholder is entitled, without charge, to (a)&nbsp;one share certificate representing the shares
of each class or series of shares registered in the shareholder&#146;s name or (b)&nbsp;a non-transferable
written acknowledgment of the shareholder&#146;s right to obtain such a share certificate, provided that
in respect of a share held jointly by several persons, the Company is not bound to issue more than
one share certificate and delivery of a share certificate for a share to one of several joint
shareholders or to one of the shareholders&#146; duly authorized agents will be sufficient delivery to
all.



<P align="left" style="font-size: 10pt"><B>2.4 Delivery by Mail</B>



<P align="left" style="font-size: 10pt">Any share certificate or non-transferable written acknowledgment of a shareholder&#146;s right to obtain
a share certificate may be sent to the shareholder by mail at the shareholder&#146;s registered address
and neither the


</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt">2



<P align="left" style="font-size: 10pt">Company nor any director, officer or agent of the Company is liable for any loss to
the shareholder because the share certificate or acknowledgement is lost in the mail or stolen.



<P align="left" style="font-size: 10pt"><B>2.5 Replacement of Worn Out or Defaced Certificate or Acknowledgement</B>



<P align="left" style="font-size: 10pt">If the directors are satisfied that a share certificate or a non-transferable written
acknowledgment of the shareholder&#146;s right to obtain a share certificate is worn out or defaced,
they must, on production to them of the share certificate or acknowledgment, as the case may be,
and on such other terms, if any, as they think fit:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>order the share certificate or acknowledgment, as the case may be, to be
cancelled; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>issue a replacement share certificate or acknowledgment, as the case may be.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>2.6 Replacement of Lost, Stolen or Destroyed Certificate or Acknowledgment</B>



<P align="left" style="font-size: 10pt">If a share certificate or a non-transferable written acknowledgment of a shareholder<FONT style="font-family: WP TypographicSymbols">&#063;</FONT>s right
to obtain a share certificate is lost, stolen or destroyed, a replacement share certificate or
acknowledgment, as the case may be, must be issued to the person entitled to that share certificate
or acknowledgment, as the case may be, if the directors receive:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>proof satisfactory to them that the share certificate or acknowledgment is
lost, stolen or destroyed; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any indemnity the directors consider adequate.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>2.7 Splitting Share Certificates</B>



<P align="left" style="font-size: 10pt">If a shareholder surrenders a share certificate to the Company with a written request that the
Company issue in the shareholder&#146;s name two or more share certificates, each representing a
specified number of shares and in the aggregate representing the same number of shares as the share
certificate so surrendered, the Company must cancel the surrendered share certificate and issue
replacement share certificates in accordance with that request.



<P align="left" style="font-size: 10pt"><B>2.8 Certificate Fee</B>



<P align="left" style="font-size: 10pt">There must be paid to the Company, in relation to the issue of any share certificate under Articles
2.5, 2.6 or 2.7, the amount, if any and which must not exceed the amount prescribed under the
<I>Business Corporations Act</I>, determined by the directors.



<P align="left" style="font-size: 10pt"><B>2.9 Recognition of Trusts</B>



<P align="left" style="font-size: 10pt">Except as required by law or statute or these Articles, no person will be recognized by the Company
as holding any share upon any trust, and the Company is not bound by or compelled in any way to
recognize (even when having notice thereof) any equitable, contingent, future or partial interest
in any share or fraction of a share or (except as by law or statute or these Articles provided or
as ordered by a court of competent jurisdiction) any other rights in respect of any share except an
absolute right to the entirety thereof in the shareholder.



<P align="left" style="font-size: 10pt"><FONT style="font-variant: SMALL-CAPS"><B>3.</B></FONT> <FONT style="font-variant: SMALL-CAPS"><B>Issue of Shares</B></FONT>



<P align="left" style="font-size: 10pt"><B>3.1 Directors Authorized</B>



<P align="left" style="font-size: 10pt">Subject to the <I>Business Corporations Act </I>and the rights of the holders of issued shares of the
Company, the


</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt">3



<P align="left" style="font-size: 10pt">Company may issue, allot, sell or otherwise dispose of the unissued shares, and issued
shares held by the Company, at the times, to the persons, including directors, in the manner, on
the terms and conditions and for the issue prices (including any premium at which shares with par
value may be issued) that the directors may determine. The issue price for a share with par value
must be equal to or greater than the par value of the share.



<P align="left" style="font-size: 10pt"><B>3.2 Commissions and Discounts</B>



<P align="left" style="font-size: 10pt">The Company may at any time pay a reasonable commission or allow a reasonable discount to any
person in consideration of that person purchasing or agreeing to purchase shares of the Company
from the Company or any other person or procuring or agreeing to procure purchasers for shares of
the Company.



<P align="left" style="font-size: 10pt"><B>3.3 Brokerage</B>



<P align="left" style="font-size: 10pt">The Company may pay such brokerage fee or other consideration as may be lawful for or in connection
with the sale or placement of its securities.



<P align="left" style="font-size: 10pt"><B>3.4 Conditions of Issue</B>



<P align="left" style="font-size: 10pt">Except as provided for by the <I>Business Corporations Act</I>, no share may be issued until it is fully
paid. A share is fully paid when:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>consideration is provided to the Company for the issue of the share by one or
more of the following:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>past services performed for the Company;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>property;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>money; and</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the value of the consideration received by the Company equals or exceeds the
issue price set for the share under Article&nbsp;3.1.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>3.5 Share Purchase Warrants and Rights</B>



<P align="left" style="font-size: 10pt">Subject to the <I>Business Corporations Act</I>, the Company may issue share purchase warrants, options
and rights upon such terms and conditions as the directors determine, which share purchase
warrants, options and rights may be issued alone or in conjunction with debentures, debenture
stock, bonds, shares or any other securities issued or created by the Company from time to time.



<P align="left" style="font-size: 10pt"><FONT style="font-variant: SMALL-CAPS"><B>4.</B></FONT> <FONT style="font-variant: SMALL-CAPS"><B>Share Registers</B></FONT>



<P align="left" style="font-size: 10pt"><B>4.1 Central Securities Register</B>



<P align="left" style="font-size: 10pt">As required by and subject to the <I>Business Corporations Act</I>, the Company must maintain in British
Columbia a central securities register. The directors may, subject to the <I>Business Corporations
Act</I>, appoint an agent to maintain the central securities register. The directors may also appoint
one or more agents,
including the agent which keeps the central securities register, as transfer agent for its shares
or any class or series of its shares, as the case may be, and the same or another agent as
registrar for its shares or such class or series of its shares, as the case may be. The directors
may terminate such appointment of any agent at any time and may appoint another agent in its place.



</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt">4



<P align="left" style="font-size: 10pt"><B>4.2 Closing Register</B>



<P align="left" style="font-size: 10pt">The Company must not at any time close its central securities register.



<P align="left" style="font-size: 10pt"><FONT style="font-variant: SMALL-CAPS"><B>5.</B></FONT> <FONT style="font-variant: SMALL-CAPS"><B>Share Transfers</B></FONT>



<P align="left" style="font-size: 10pt"><B>5.1 Registering Transfers</B>



<P align="left" style="font-size: 10pt">A transfer of a share of the Company must not be registered unless:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a duly signed instrument of transfer in respect of the share has been received
by the Company;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if a share certificate has been issued by the Company in respect of the share
to be transferred, that share certificate has been surrendered to the Company; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if a non-transferable written acknowledgment of the shareholder&#146;s right to
obtain a share certificate has been issued by the Company in respect of the share to be
transferred, that acknowledgment has been surrendered to the Company.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>5.2 Form of Instrument of Transfer</B>



<P align="left" style="font-size: 10pt">The instrument of transfer in respect of any share of the Company must be either in the form, if
any, on the back of the Company&#146;s share certificates or in any other form that may be approved by
the directors from time to time.



<P align="left" style="font-size: 10pt"><B>5.3 Transferor Remains Shareholder</B>



<P align="left" style="font-size: 10pt">Except to the extent that the <I>Business Corporations Act </I>otherwise provides, the transferor of
shares is deemed to remain the holder of the shares until the name of the transferee is entered in
a securities register of the Company in respect of the transfer.



<P align="left" style="font-size: 10pt"><B>5.4 Signing of Instrument of Transfer</B>



<P align="left" style="font-size: 10pt">If a shareholder, or his or her duly authorized attorney, signs an instrument of transfer in
respect of shares registered in the name of the shareholder, the signed instrument of transfer
constitutes a complete and sufficient authority to the Company and its directors, officers and
agents to register the number of shares specified in the instrument of transfer or specified in any
other manner, or, if no number is specified, all the shares represented by the share certificates
or set out in the written acknowledgments deposited with the instrument of transfer:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in the name of the person named as transferee in that instrument of transfer; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if no person is named as transferee in that instrument of transfer, in the name
of the person on whose behalf the instrument is deposited for the purpose of having the
transfer registered.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>5.5 Enquiry as to Title Not Required</B>



<P align="left" style="font-size: 10pt">Neither the Company nor any director, officer or agent of the Company is bound to inquire into the
title of the person named in the instrument of transfer as transferee or, if no person is named as
transferee in the instrument of transfer, of the person on whose behalf the instrument is deposited
for the purpose of having the transfer registered or is liable for any claim related to registering
the transfer by the shareholder or by any intermediate owner or holder of the shares, of any
interest in the shares, of any share certificate



</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt">5



<P align="left" style="font-size: 10pt">representing such shares or of any written
acknowledgment of a right to obtain a share certificate for such shares.



<P align="left" style="font-size: 10pt"><B>5.6 Transfer Fee</B>



<P align="left" style="font-size: 10pt">There must be paid to the Company, in relation to the registration of any transfer, the amount, if
any, determined by the directors.



<P align="left" style="font-size: 10pt"><FONT style="font-variant: SMALL-CAPS"><B>6.</B></FONT> <FONT style="font-variant: SMALL-CAPS"><B>Transmission of Shares</B></FONT>



<P align="left" style="font-size: 10pt"><B>6.1 Legal Personal Representative Recognized on Death</B>



<P align="left" style="font-size: 10pt">In case of the death of a shareholder, the legal personal representative, or if the shareholder was
a joint holder, the surviving joint holder, will be the only person recognized by the Company as
having any title to the shareholder&#146;s interest in the shares. Before recognizing a person as a
legal personal representative, the directors may require proof of appointment by a court of
competent jurisdiction, a grant of letters probate, letters of administration or such other
evidence or documents as the directors consider appropriate.



<P align="left" style="font-size: 10pt"><B>6.2 Rights of Legal Personal Representative</B>



<P align="left" style="font-size: 10pt">The legal personal representative has the same rights, privileges and obligations that attach to
the shares held by the shareholder, including the right to transfer the shares in accordance with
these Articles, provided the documents required by the <I>Business Corporations Act </I>and the directors
have been deposited with the Company.



<P align="left" style="font-size: 10pt"><FONT style="font-variant: SMALL-CAPS"><B>7.</B></FONT> <FONT style="font-variant: SMALL-CAPS"><B>Purchase of Shares</B></FONT>



<P align="left" style="font-size: 10pt"><B>7.1 Company Authorized to Purchase Shares</B>



<P align="left" style="font-size: 10pt">Subject to Article&nbsp;7.2, the special rights and restrictions attached to the shares of any class or
series and the <I>Business Corporations Act</I>, the Company may, if authorized by the directors, purchase
or otherwise acquire any of its shares at the price and upon the terms specified in such
resolution.



<P align="left" style="font-size: 10pt"><B>7.2 Purchase When Insolvent</B>



<P align="left" style="font-size: 10pt">The Company must not make a payment or provide any other consideration to purchase or otherwise
acquire any of its shares if there are reasonable grounds for believing that:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Company is insolvent; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>making the payment or providing the consideration would render the Company
insolvent.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>7.3 Sale and Voting of Purchased Shares</B>



<P align="left" style="font-size: 10pt">If the Company retains a share redeemed, purchased or otherwise acquired by it, the Company may
sell, gift or otherwise dispose of the share, but, while such share is held by the Company, it:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>is not entitled to vote the share at a meeting of its shareholders;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>must not pay a dividend in respect of the share; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>must not make any other distribution in respect of the share.</TD>
</TR>

</TABLE>
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt">6

<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>


<P align="left" style="font-size: 10pt"><FONT style="font-variant: SMALL-CAPS"><B>8.</B></FONT> <FONT style="font-variant: SMALL-CAPS"><B>Borrowing Powers</B></FONT>



<P align="left" style="font-size: 10pt">The Company, if authorized by the directors, may:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>borrow money in the manner and amount, on the security, from the sources and on
the terms and conditions that they consider appropriate;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>issue bonds, debentures and other debt obligations either outright or as
security for any liability or obligation of the Company or any other person and at such
discounts or premiums and on such other terms as they consider appropriate;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>guarantee the repayment of money by any other person or the performance of any
obligation of any other person; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>mortgage, charge, whether by way of specific or floating charge, grant a
security interest in, or give other security on, the whole or any part of the present
and future assets and undertaking of the Company.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><FONT style="font-variant: SMALL-CAPS"><B>9.</B></FONT> <FONT style="font-variant: SMALL-CAPS"><B>Alterations</B></FONT>



<P align="left" style="font-size: 10pt"><B>9.1 Alteration of Authorized Share Structure</B>



<P align="left" style="font-size: 10pt">Subject to Article&nbsp;9.3 and the <I>Business Corporations Act</I>, the Company may by resolution of the
directors:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>create one or more classes or series of shares or, if none of the shares of a
class or series of shares are allotted or issued, eliminate that class or series of
shares;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>increase, reduce or eliminate the maximum number of shares that the Company is
authorized to issue out of any class or series of shares or establish a maximum number
of shares that the Company is authorized to issue out of any class or series of shares
for which no maximum is established;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if the Company is authorized to issue shares of a class of shares with par
value:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>decrease the par value of those shares; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if none of the shares of that class of shares are allotted or
issued, increase the par value of those shares;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>subdivide all or any of its unissued or fully paid issued shares by way of a
stock dividend;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>change all or any of its unissued, or fully paid issued, shares with par value
into shares without par value or any of its unissued shares without par value into
shares with par value;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(6)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>alter the identifying name of any of its shares; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(7)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>otherwise alter its shares or authorized share structure when required or
permitted to do so by the <I>Business Corporations Act</I>.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>9.2 Consolidations and &#147;Call-in&#148; Subdivisions</B>



<P align="left" style="font-size: 10pt">Subject to Article&nbsp;9.3 and the <I>Business Corporations Act</I>, the Company may by ordinary resolution:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>consolidate all or any of its unissued, or fully paid issued, shares.</TD>
</TR>

</TABLE>
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt">7

<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>subdivide all or any of its unissued or fully paid issued shares, other than by
way of a stock dividend.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>9.3 Special Rights and Restrictions</B>



<P align="left" style="font-size: 10pt">Subject to the <I>Business Corporations Act</I>, the Company may by special resolution:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>create special rights or restrictions for, and attach those special rights or
restrictions to, the shares of any class or series of shares, whether or not any or all
of those shares have been issued; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>vary or delete any special rights or restrictions attached to the shares of any
class or series of shares, whether or not any or all of those shares have been issued.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>9.4 Change of Name</B>



<P align="left" style="font-size: 10pt">The Company may by resolution of the directors authorize an alteration of its Notice of Articles in
order to change its name or adopt or change any translation of that name.



<P align="left" style="font-size: 10pt"><B>9.5 Other Alterations</B>



<P align="left" style="font-size: 10pt">If the <I>Business Corporations Act </I>does not specify the type of resolution and these Articles do not
specify another type of resolution, the Company may by ordinary resolution alter these Articles.



<P align="left" style="font-size: 10pt"><FONT style="font-variant: SMALL-CAPS"><B>10.</B></FONT> <FONT style="font-variant: SMALL-CAPS"><B>Meetings of Shareholders</B></FONT>



<P align="left" style="font-size: 10pt"><B>10.1 Annual General Meetings</B>



<P align="left" style="font-size: 10pt">Unless an annual general meeting is deferred or waived in accordance with the <I>Business Corporations
Act</I>, the Company must hold its first annual general meeting within 18&nbsp;months after the date on
which it was incorporated or otherwise recognized, and after that must hold an annual general
meeting at least once in each calendar year and not more than 15&nbsp;months after the last annual
reference date at such time and place as may be determined by the directors.



<P align="left" style="font-size: 10pt"><B>10.2 Resolution Instead of Annual General Meeting</B>



<P align="left" style="font-size: 10pt">If all the shareholders who are entitled to vote at an annual general meeting consent by a
unanimous resolution under the <I>Business Corporations Act </I>to all of the business that is required to
be transacted at that
annual general meeting, the annual general meeting is deemed to have been held on the date of the
unanimous resolution. The shareholders must, in any unanimous resolution passed under this Article
10.2, select as the Company&#146;s annual reference date a date that would be appropriate for the
holding of the applicable annual general meeting.



<P align="left" style="font-size: 10pt"><B>10.3 Calling of Meetings of Shareholders</B>



<P align="left" style="font-size: 10pt">The directors may, whenever they think fit, call a meeting of shareholders.



<P align="left" style="font-size: 10pt"><B>10.4 Notice for Meetings of Shareholders</B>



<P align="left" style="font-size: 10pt">The Company must send notice of the date, time and location of any meeting of shareholders, in the
manner provided in these Articles, or in such other manner, if any, as may be prescribed by
ordinary resolution (whether previous notice of the resolution has been given or not), to each
shareholder entitled to attend the meeting, to each director and to the auditor of the Company,
unless these Articles otherwise provide, at least the following number of days before the meeting:


</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt">8



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if and for so long as the Company is a public company, 21&nbsp;days;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>otherwise, 10&nbsp;days.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>10.5 Record Date for Notice</B>



<P align="left" style="font-size: 10pt">The directors may set a date as the record date for the purpose of determining shareholders
entitled to notice of any meeting of shareholders. The record date must not precede the date on
which the meeting is to be held by more than two months or, in the case of a general meeting
requisitioned by shareholders under the <I>Business Corporations Act</I>, by more than four months. The
record date must not precede the date on which the meeting is held by fewer than:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if and for so long as the Company is a public company, 21&nbsp;days;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>otherwise, 10&nbsp;days.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">If no record date is set, the record date is 5 p.m. on the day immediately preceding the first date
on which the notice is sent or, if no notice is sent, the beginning of the meeting.



<P align="left" style="font-size: 10pt"><B>10.6 Record Date for Voting</B>



<P align="left" style="font-size: 10pt">The directors may set a date as the record date for the purpose of determining shareholders
entitled to vote at any meeting of shareholders. The record date must not precede the date on which
the meeting is to be held by more than two months or, in the case of a general meeting
requisitioned by shareholders under the <I>Business Corporations Act</I>, by more than four months. If no
record date is set, the record date is 5 p.m. on the day immediately preceding the first date on
which the notice is sent or, if no notice is sent, the beginning of the meeting.



<P align="left" style="font-size: 10pt"><B>10.7 Failure to Give Notice and Waiver of Notice</B>



<P align="left" style="font-size: 10pt">The accidental omission to send notice of any meeting to, or the non-receipt of any notice by, any
of the persons entitled to notice does not invalidate any proceedings at that meeting. Any person
entitled to notice of a meeting of shareholders may, in writing or otherwise, waive or reduce the
period of notice of such meeting.



<P align="left" style="font-size: 10pt"><B>10.8 Notice of Special Business at Meetings of Shareholders</B>



<P align="left" style="font-size: 10pt">If a meeting of shareholders is to consider special business within the meaning of Article&nbsp;11.1,
the notice of meeting must:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>state the general nature of the special business; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if the special business includes considering, approving, ratifying, adopting or
authorizing any document or the signing of or giving of effect to any document, have
attached to it a copy of the document or state that a copy of the document will be
available for inspection by shareholders:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>at the Company&#146;s records office, or at such other reasonably
accessible location in British Columbia as is specified in the notice; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>during statutory business hours on any one or more specified
days before the day set for the holding of the meeting.</TD>
</TR>

</TABLE>
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt">9

<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>


<P align="left" style="font-size: 10pt"><FONT style="font-variant: SMALL-CAPS"><B>11.</B></FONT> <FONT style="font-variant: SMALL-CAPS"><B>Proceedings at Meetings of Shareholders</B></FONT>



<P align="left" style="font-size: 10pt"><B>11.1 Special Business</B>



<P align="left" style="font-size: 10pt">At a meeting of shareholders, the following business is special business:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>at a meeting of shareholders that is not an annual general meeting, all
business is special business except business relating to the conduct of or voting at
the meeting;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>at an annual general meeting, all business is special business except for the
following:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>business relating to the conduct of or voting at the meeting;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>consideration of any financial statements of the Company
presented to the meeting;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>consideration of any reports of the directors or auditor;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the setting or changing of the number of directors;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the election or appointment of directors;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the appointment of an auditor;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(g)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the setting of the remuneration of an auditor;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(h)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>business arising out of a report of the directors not requiring
the passing of a special resolution or an exceptional resolution;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any other business which, under these Articles or the <I>Business
Corporations Act</I>, may be transacted at a meeting of shareholders without prior
notice of the business being given to the shareholders.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>11.2 Special Majority</B>



<P align="left" style="font-size: 10pt">The majority of votes required for the Company to pass a special resolution at a meeting of
shareholders is two-thirds of the votes cast on the resolution.



<P align="left" style="font-size: 10pt"><B>11.3 Quorum</B>



<P align="left" style="font-size: 10pt">Save as herein otherwise provided, a quorum shall not be less than two members or proxyholders
representing two members, or one member and a proxyholder representing another member, holding in
aggregate at least 33 1/3% of the total issued and outstanding shares of the Company on the record
date for the meeting.



<P align="left" style="font-size: 10pt"><B>11.4 One Shareholder May Constitute Quorum</B>



<P align="left" style="font-size: 10pt">If there is only one shareholder entitled to vote at a meeting of shareholders:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the quorum is one person who is, or who represents by proxy, that shareholder,
and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>that shareholder, present in person or by proxy, may constitute the meeting.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>11.5 Other Persons May Attend</B>



<P align="left" style="font-size: 10pt">The directors, the president (if any), the secretary (if any), the assistant secretary (if any),
any lawyer for the


</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt">10



<P align="left" style="font-size: 10pt">Company, the auditor of the Company and any other persons invited by the
directors are entitled to attend any meeting of shareholders, but if any of those persons does
attend a meeting of shareholders, that person is not to be counted in the quorum and is not
entitled to vote at the meeting unless that person is a shareholder or proxy holder entitled to
vote at the meeting.



<P align="left" style="font-size: 10pt"><B>11.6 Requirement of Quorum</B>



<P align="left" style="font-size: 10pt">No business, other than the election of a chair of the meeting and the adjournment of the meeting,
may be transacted at any meeting of shareholders unless a quorum of shareholders entitled to vote
is present at the commencement of the meeting, but such quorum need not be present throughout the
meeting.



<P align="left" style="font-size: 10pt"><B>11.7 Lack of Quorum</B>



<P align="left" style="font-size: 10pt">If, within one-half hour from the time set for the holding of a meeting of shareholders, a quorum
is not present:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in the case of a general meeting requisitioned by shareholders, the meeting is
dissolved, and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in the case of any other meeting of shareholders, the meeting stands adjourned
to the same day in the next week at the same time and place.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>11.8 Lack of Quorum at Succeeding Meeting</B>



<P align="left" style="font-size: 10pt">If, at the meeting to which the meeting referred to in Article&nbsp;11.7(2) was adjourned, a quorum is
not present within one-half hour from the time set for the holding of the meeting, the person or
persons present and being, or representing by proxy, one or more shareholders entitled to attend
and vote at the meeting constitute a quorum.



<P align="left" style="font-size: 10pt"><B>11.9 Chair</B>



<P align="left" style="font-size: 10pt">The following individual is entitled to preside as chair at a meeting of shareholders:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the chair of the board, if any; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if the chair of the board is absent or unwilling to act as chair of the
meeting, the president, if any.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>11.10 Selection of Alternate Chair</B>



<P align="left" style="font-size: 10pt">If, at any meeting of shareholders, there is no chair of the board or president present within 15
minutes after the time set for holding the meeting, or if the chair of the board and the president
are unwilling to act as chair of the meeting, or if the chair of the board and the president have
advised the secretary, if any, or any director present at the meeting, that they will not be
present at the meeting, the directors present must choose one of their number to be chair of the
meeting or if all of the directors present decline to take the chair or fail to so choose or if no
director is present, the shareholders entitled to vote at the meeting who are present in person or
by proxy may choose any person present at the meeting to chair the meeting.



<P align="left" style="font-size: 10pt"><B>11.11 Adjournments</B>



<P align="left" style="font-size: 10pt">The chair of a meeting of shareholders may, and if so directed by the meeting must, adjourn the
meeting from time to time and from place to place, but no business may be transacted at any
adjourned meeting other than the business left unfinished at the meeting from which the adjournment
took place.



</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt">11



<P align="left" style="font-size: 10pt"><B>11.12 Notice of Adjourned Meeting</B>



<P align="left" style="font-size: 10pt">It is not necessary to give any notice of an adjourned meeting or of the business to be transacted
at an adjourned meeting of shareholders except that, when a meeting is adjourned for 30&nbsp;days or
more, notice of the adjourned meeting must be given as in the case of the original meeting.



<P align="left" style="font-size: 10pt"><B>11.13 Decisions by Show of Hands or Poll</B>



<P align="left" style="font-size: 10pt">Subject to the <I>Business Corporations Act</I>, every motion put to a vote at a meeting of shareholders
will be decided on a show of hands unless a poll, before or on the declaration of the result of the
vote by show of hands, is directed by the chair or demanded by at least one shareholder entitled to
vote who is present in person or by proxy.



<P align="left" style="font-size: 10pt"><B>11.14 Declaration of Result</B>



<P align="left" style="font-size: 10pt">The chair of a meeting of shareholders must declare to the meeting the decision on every question
in accordance with the result of the show of hands or the poll, as the case may be, and that
decision must be entered in the minutes of the meeting. A declaration of the chair that a
resolution is carried by the necessary majority or is defeated is, unless a poll is directed by the
chair or demanded under Article&nbsp;11.13, conclusive evidence without proof of the number or
proportion of the votes recorded in favour of or against the resolution.



<P align="left" style="font-size: 10pt"><B>11.15 Motion Need Not be Seconded</B>



<P align="left" style="font-size: 10pt">No motion proposed at a meeting of shareholders need be seconded unless the chair of the meeting
rules otherwise, and the chair of any meeting of shareholders is entitled to propose or second a
motion.



<P align="left" style="font-size: 10pt"><B>11.16 Casting Vote</B>



<P align="left" style="font-size: 10pt">In case of an equality of votes, the chair of a meeting of shareholders does not, either on a show
of hands or on a poll, have a second or casting vote in addition to the vote or votes to which the
chair may be entitled as a shareholder.



<P align="left" style="font-size: 10pt"><B>11.17 Manner of Taking Poll</B>



<P align="left" style="font-size: 10pt">Subject to Article&nbsp;11.18, if a poll is duly demanded at a meeting of shareholders:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the poll must be taken:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>at the meeting, or within seven days after the date of the
meeting, as the chair of the meeting directs; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in the manner, at the time and at the place that the chair of
the meeting directs;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the result of the poll is deemed to be the decision of the meeting at which the
poll is demanded; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the demand for the poll may be withdrawn by the person who demanded it.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>11.18 Demand for Poll on Adjournment</B>



<P align="left" style="font-size: 10pt">A poll demanded at a meeting of shareholders on a question of adjournment must be taken immediately
at the meeting.


</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt">12



<P align="left" style="font-size: 10pt"><B>11.19 Chair Must Resolve Dispute</B>



<P align="left" style="font-size: 10pt">In the case of any dispute as to the admission or rejection of a vote given on a poll, the chair of
the meeting must determine the dispute, and his or her determination made in good faith is final
and conclusive.



<P align="left" style="font-size: 10pt"><B>11.20 Casting of Votes</B>



<P align="left" style="font-size: 10pt">On a poll, a shareholder entitled to more than one vote need not cast all the votes in the same way.



<P align="left" style="font-size: 10pt"><B>11.21 Demand for Poll</B>



<P align="left" style="font-size: 10pt">No poll may be demanded in respect of the vote by which a chair of a meeting of shareholders is
elected.



<P align="left" style="font-size: 10pt"><B>11.22 Demand for Poll Not to Prevent Continuance of Meeting</B>



<P align="left" style="font-size: 10pt">The demand for a poll at a meeting of shareholders does not, unless the chair of the meeting so
rules, prevent the continuation of a meeting for the transaction of any business other than the
question on which a poll has been demanded.



<P align="left" style="font-size: 10pt"><B>11.23 Retention of Ballots and Proxies</B>



<P align="left" style="font-size: 10pt">The Company must, for at least three months after a meeting of shareholders, keep each ballot cast
on a poll and each proxy voted at the meeting, and, during that period, make them available for
inspection during normal business hours by any shareholder or proxyholder entitled to vote at the
meeting. At the end of such three month period, the Company may destroy such ballots and proxies.



<P align="left" style="font-size: 10pt"><FONT style="font-variant: SMALL-CAPS"><B>12.</B></FONT> <FONT style="font-variant: SMALL-CAPS"><B>Votes of Shareholders</B></FONT>



<P align="left" style="font-size: 10pt"><B>12.1 Number of Votes by Shareholder or by Shares</B>



<P align="left" style="font-size: 10pt">Subject to any special rights or restrictions attached to any shares and to the restrictions
imposed on joint shareholders under Article&nbsp;12.3:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>on a vote by show of hands, every person present who is a shareholder or proxy
holder and entitled to vote on the matter has one vote; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>on a poll, every shareholder entitled to vote on the matter has one vote in
respect of each share entitled to be voted on the matter and held by that shareholder
and may exercise that vote either in person or by proxy.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>12.2 Votes of Persons in Representative Capacity</B>



<P align="left" style="font-size: 10pt">A person who is not a shareholder may vote at a meeting of shareholders, whether on a show of hands
or on a poll, and may appoint a proxy holder to act at the meeting, if, before doing so, the person
satisfies the chair of the meeting, or the directors, that the person is a legal personal
representative or a trustee in bankruptcy for a shareholder who is entitled to vote at the meeting.



<P align="left" style="font-size: 10pt"><B>12.3 Votes by Joint Holders</B>



<P align="left" style="font-size: 10pt">If there are joint shareholders registered in respect of any share:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any one of the joint shareholders may vote at any meeting, either personally or
by proxy, in respect of the share as if that joint shareholder were solely entitled to
it; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if more than one of the joint shareholders is present at any meeting,
personally or by proxy,</TD>
</TR>


</TABLE>
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt">13

<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>and more than one of them votes in respect of that share, then
only the vote of the joint shareholder present whose name stands first on the central
securities register in respect of the share will be counted.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>12.4 Legal Personal Representatives as Joint Shareholders</B>



<P align="left" style="font-size: 10pt">Two or more legal personal representatives of a shareholder in whose sole name any share is
registered are, for the purposes of Article&nbsp;12.3, deemed to be joint shareholders.



<P align="left" style="font-size: 10pt"><B>12.5 Representative of a Corporate Shareholder</B>



<P align="left" style="font-size: 10pt">If a corporation, that is not a subsidiary of the Company, is a shareholder, that corporation may
appoint a person to act as its representative at any meeting of shareholders of the Company, and:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>for that purpose, the instrument appointing a representative must:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>be received at the registered office of the Company or at any
other place specified, in the notice calling the meeting, for the receipt of
proxies, at least the number of business days specified in the notice for the
receipt of proxies, or if no number of days is specified, two business days
before the day set for the holding of the meeting; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>be provided, at the meeting, to the chair of the meeting or to
a person designated by the chair of the meeting;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if a representative is appointed under this Article&nbsp;12.5:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the representative is entitled to exercise in respect of and at
that meeting the same rights on behalf of the corporation that the
representative represents as that corporation could exercise if it were a
shareholder who is an individual, including, without limitation, the right to
appoint a proxy holder; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the representative, if present at the meeting, is to be counted
for the purpose of forming a quorum and is deemed to be a shareholder present
in person at the meeting.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">Evidence of the appointment of any such representative may be sent to the Company by written
instrument, fax or any other method of transmitting legibly recorded messages.



<P align="left" style="font-size: 10pt"><B>12.6 Proxy Provisions Do Not Apply to All Companies</B>



<P align="left" style="font-size: 10pt">If and for so long as the Company is a public company or a pre-existing reporting company which has
the Statutory Reporting Company Provisions as part of its Articles or to which the Statutory
Reporting Company Provisions apply, Articles 12.7 to 12.15 apply only insofar as they are not
inconsistent with any securities legislation in any province or territory of Canada or in the
federal jurisdiction of the United States or in any states of the United States that is applicable
to the Company and insofar as they are not inconsistent with the regulations and rules made and
promulgated under that legislation and all administrative policy statements, blanket orders and
rulings, notices and other administrative directions issued by securities commissions or similar
authorities appointed under that legislation.



<P align="left" style="font-size: 10pt"><B>12.7 Appointment of Proxy Holders</B>



<P align="left" style="font-size: 10pt">Every shareholder of the Company, including a corporation that is a shareholder but not a
subsidiary of the Company, entitled to vote at a meeting of shareholders of the Company may, by
proxy, appoint one or more


</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt">14



<P align="left" style="font-size: 10pt">(but not more than five) proxy holders to attend and act at the meeting
in the manner, to the extent and with the powers conferred by the proxy.



<P align="left" style="font-size: 10pt"><B>12.8 Alternate Proxy Holders</B>



<P align="left" style="font-size: 10pt">A shareholder may appoint one or more alternate proxy holders to act in the place of an absent
proxy holder.



<P align="left" style="font-size: 10pt"><B>12.9 When Proxy Holder Need Not Be Shareholder</B>



<P align="left" style="font-size: 10pt">A person must not be appointed as a proxy holder unless the person is a shareholder, although a
person who is not a shareholder may be appointed as a proxy holder if:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the person appointing the proxy holder is a corporation or a representative of
a corporation appointed under Article&nbsp;12.5;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Company has at the time of the meeting for which the proxy holder is to be
appointed only one shareholder entitled to vote at the meeting; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the shareholders present in person or by proxy at and entitled to vote at the
meeting for which the proxy holder is to be appointed, by a resolution on which the
proxy holder is not
entitled to vote but in respect of which the proxy holder is to be counted in the
quorum, permit the proxy holder to attend and vote at the meeting.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>12.10 Deposit of Proxy</B>



<P align="left" style="font-size: 10pt">A proxy for a meeting of shareholders must:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>be received at the registered office of the Company or at any other place
specified, in the notice calling the meeting, for the receipt of proxies, at least the
number of business days specified in the notice, or if no number of days is specified,
two business days before the day set for the holding of the meeting; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>unless the notice provides otherwise, be provided, at the meeting, to the chair
of the meeting or to a person designated by the chair of the meeting.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">A proxy may be sent to the Company by written instrument, fax or any other method of transmitting
legibly recorded messages.



<P align="left" style="font-size: 10pt"><B>12.11 Validity of Proxy Vote</B>



<P align="left" style="font-size: 10pt">A vote given in accordance with the terms of a proxy is valid notwithstanding the death or
incapacity of the shareholder giving the proxy and despite the revocation of the proxy or the
revocation of the authority under which the proxy is given, unless notice in writing of that death,
incapacity or revocation is received:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>at the registered office of the Company, at any time up to and including the
last business day before the day set for the holding of the meeting at which the proxy
is to be used; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>by the chair of the meeting, before the vote is taken.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>12.12 Form of Proxy</B>



<P align="left" style="font-size: 10pt">A proxy, whether for a specified meeting or otherwise, must be either in the following form or in
any other form approved by the directors or the chair of the meeting:


</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt">15



<P align="center" style="font-size: 10pt">Nicholas Financial, Inc.


<DIV align="center" style="font-size: 10pt">(the &#147;Company&#148;)</DIV>




<P align="left" style="margin-left:3%; font-size: 10pt">The undersigned, being a shareholder of the Company, hereby appoints &#091;name&#093; or,
failing that person, &#091;name&#093;, as proxy holder for the undersigned to attend, act and
vote for and on behalf of the undersigned at the meeting of shareholders of the
Company to be held on &#091;month, day, year&#093; and at any adjournment of that meeting.



<P align="left" style="margin-left:3%; font-size: 10pt">Number of shares in respect of which this proxy is given (if no number is specified,
then this proxy if given in respect of all shares registered in the name of the
shareholder):

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="60%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="39%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Signed &#091;month, day, year&#093;</TD>
</TR>
<TR>    <TD>&nbsp;</TD></TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>&#091;Signature of shareholder&#093;</I></TD>
</TR>
<TR>    <TD>&nbsp;</TD></TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>&#091;Name of shareholder&#146; printed&#093;</I></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 10pt"><B>12.13 Revocation of Proxy</B>



<P align="left" style="font-size: 10pt">Subject to Article&nbsp;12.14, every proxy may be revoked by an instrument in writing that is:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>received at the registered office of the Company at any time up to and
including the last business day before the day set for the holding of the meeting at
which the proxy is to be used; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>provided, at the meeting, to the chair of the meeting.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>12.14 Revocation of Proxy Must Be Signed</B>



<P align="left" style="font-size: 10pt">An instrument referred to in Article&nbsp;12.13 must be signed as follows:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if the shareholder for whom the proxy holder is appointed is an individual, the
instrument must be signed by the shareholder or his or her legal personal
representative or trustee in bankruptcy;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if the shareholder for whom the proxy holder is appointed is a corporation, the
instrument must be signed by the corporation or by a representative appointed for the
corporation under Article&nbsp;12.5.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>12.15 Production of Evidence of Authority to Vote</B>



<P align="left" style="font-size: 10pt">The chair of any meeting of shareholders may, but need not, inquire into the authority of any
person to vote at the meeting and may, but need not, demand from that person production of evidence
as to the existence of the authority to vote.



<P align="left" style="font-size: 10pt"><FONT style="font-variant: SMALL-CAPS"><B>13.</B></FONT> <FONT style="font-variant: SMALL-CAPS"><B>Directors</B></FONT>



<P align="left" style="font-size: 10pt"><B>13.1 First Directors; Number of Directors</B>



<P align="left" style="font-size: 10pt">The first directors are the persons designated as directors of the Company in the Notice of
Articles that applies to the Company when it is recognized under the <I>Business Corporations Act</I>. The
number of


</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt">16



<P align="left" style="font-size: 10pt">directors, excluding additional directors appointed under Article&nbsp;14.8, is set at:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>subject to paragraphs (2)&nbsp;and (3), the number of directors that is equal to the
number of the Company&#146;s first directors;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if the Company is a public company, the greater of five and the most recently
set of:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the number of directors set by resolution of the board of
directors (whether or not previous notice of the resolution was given); and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the number of directors set under Article&nbsp;14.4;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD colspan="3" >provided that the number of directors so determined shall not be less than five (5),
nor more than eleven (11), at any time;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if the Company is not a public company, the most recently set of:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the number of directors set by ordinary resolution (whether or
not previous notice of the resolution was given); and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the number of directors set under Article&nbsp;14.4.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>13.2 Change in Number of Directors</B>



<P align="left" style="font-size: 10pt">If the number of directors is set under Articles 13.1(2)(a) or 13.1(3)(a):



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the shareholders may elect or appoint the directors needed to fill any
vacancies in the board of directors up to that number;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if the shareholders do not elect or appoint the directors needed to fill any
vacancies in the board of directors up to that number contemporaneously with the
setting of that number, then the directors may appoint, or the shareholders may elect
or appoint, directors to fill those vacancies.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>13.3 Directors&#146; Acts Valid Despite Vacancy</B>



<P align="left" style="font-size: 10pt">An act or proceeding of the directors is not invalid merely because fewer than the number of
directors set or otherwise required under these Articles is in office.



<P align="left" style="font-size: 10pt"><B>13.4 Qualifications of Directors</B>



<P align="left" style="font-size: 10pt">A director is not required to hold a share in the capital of the Company as qualification for his
or her office but must be qualified as required by the <I>Business Corporations Act </I>to become, act or
continue to act as a director.



<P align="left" style="font-size: 10pt"><B>13.5 Remuneration of Directors</B>



<P align="left" style="font-size: 10pt">The directors are entitled to the remuneration for acting as directors, if any, as the directors
may from time to time determine. If the directors so decide, the remuneration of the directors, if
any, will be determined by the shareholders. That remuneration may be in addition to any salary or
other remuneration paid to any officer or employee of the Company as such, who is also a director.



<P align="left" style="font-size: 10pt"><B>13.6 Reimbursement of Expenses of Directors</B>



<P align="left" style="font-size: 10pt">The Company must reimburse each director for the reasonable expenses that he or she may incur in
and



</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt">17



<P align="left" style="font-size: 10pt">about the business of the Company.



<P align="left" style="font-size: 10pt"><B>13.7 Special Remuneration for Directors</B>



<P align="left" style="font-size: 10pt">If any director performs any professional or other services for the Company that in the opinion of
the directors are outside the ordinary duties of a director, or if any director is otherwise
specially occupied in or about the Company&#146;s business, he or she may be paid remuneration fixed by
the directors, or, at the option of that director, fixed by ordinary resolution, and such
remuneration may be either in addition to, or in substitution for, any other remuneration that he
or she may be entitled to receive.



<P align="left" style="font-size: 10pt"><B>13.8 Gratuity, Pension or Allowance on Retirement of Director</B>



<P align="left" style="font-size: 10pt">Unless otherwise determined by ordinary resolution, the directors on behalf of the Company may pay
a
gratuity or pension or allowance on retirement to any director who has held any salaried office or
place of profit with the Company or to his or her spouse or dependants and may make contributions
to any fund and pay premiums for the purchase or provision of any such gratuity, pension or
allowance.



<P align="left" style="font-size: 10pt"><FONT style="font-variant: SMALL-CAPS"><B>14.</B></FONT> <FONT style="font-variant: SMALL-CAPS"><B>Election and Removal of Directors</B></FONT>



<P align="left" style="font-size: 10pt"><B>14.1 Election at Annual General Meeting</B>



<P align="left" style="font-size: 10pt">At every annual general meeting and in every unanimous resolution contemplated by Article&nbsp;10.2:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the shareholders entitled to vote at the annual general meeting for the
election of directors must elect, or in the unanimous resolution appoint, a board of
directors consisting of the number of directors whose term of appointment expires
immediately preceding the date of the annual general meeting, up to the number of
directors for the time being set under these Articles; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>unless otherwise determined by resolution of the board of directors, each of
the directors ceases to hold office immediately before the date of the third annual
general meeting after their election or appointment as a director under paragraph (1),
but are eligible for re-election or re-appointment.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>14.2 Consent to be a Director</B>



<P align="left" style="font-size: 10pt">No election, appointment or designation of an individual as a director is valid unless:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>that individual consents to be a director in the manner provided for in the
<I>Business Corporations Act</I>;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>that individual is elected or appointed at a meeting at which the individual is
present and the individual does not refuse, at the meeting, to be a director; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>with respect to first directors, the designation is otherwise valid under the
<I>Business Corporations Act</I>.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>14.3 Failure to Elect or Appoint Directors</B>



<P align="left" style="font-size: 10pt">If:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Company fails to hold an annual general meeting, and all the shareholders
who are entitled to vote at an annual general meeting fail to pass the unanimous
resolution contemplated by Article&nbsp;10.2, on or before the date by which the annual
general meeting is</TD>
</TR>


</TABLE>
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt">18

<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>required to be held under the <I>Business Corporations Act</I>; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the shareholders fail, at the annual general meeting or in the unanimous
resolution contemplated by Article&nbsp;10.2, to elect or appoint any directors;</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:3%; font-size: 10pt">then each director then in office continues to hold office until the earlier of:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the date on which his or her successor is elected or appointed; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the date on which he or she otherwise ceases to hold office under the <I>Business
Corporations Act </I>or these Articles.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>14.4 Places of Retiring Directors Not Filled</B>



<P align="left" style="font-size: 10pt">If, at any meeting of shareholders at which there should be an election of directors, the places of
any of the retiring directors are not filled by that election, those retiring directors who are not
re-elected and who are asked by the newly elected directors to continue in office will, if willing
to do so, continue in office to complete the number of directors for the time being set pursuant to
these Articles until further new directors are elected at a meeting of shareholders convened for
that purpose. If any such election or continuance of directors does not result in the election or
continuance of the number of directors for the time being set pursuant to these Articles, the
number of directors of the Company is deemed to be set at the number of directors actually elected
or continued in office.



<P align="left" style="font-size: 10pt"><B>14.5 Directors May Fill Casual Vacancies</B>



<P align="left" style="font-size: 10pt">Any casual vacancy occurring in the board of directors may be filled by the directors.



<P align="left" style="font-size: 10pt"><B>14.6 Remaining Directors Power to Act</B>



<P align="left" style="font-size: 10pt">The directors may act notwithstanding any vacancy in the board of directors, but if the Company has
fewer directors in office than the number set pursuant to these Articles as the quorum of
directors, the directors may only act for the purpose of appointing directors up to that number or
of summoning a meeting of shareholders for the purpose of filling any vacancies on the board of
directors or, subject to the <I>Business Corporations Act</I>, for any other purpose.



<P align="left" style="font-size: 10pt"><B>14.7 Shareholders May Fill Vacancies</B>



<P align="left" style="font-size: 10pt">If the Company has no directors or fewer directors in office than the number set pursuant to these
Articles as the quorum of directors, the shareholders may elect or appoint directors to fill any
vacancies on the board of directors.



<P align="left" style="font-size: 10pt"><B>14.8 Additional Directors</B>



<P align="left" style="font-size: 10pt">Notwithstanding Articles 13.1 and 13.2, between annual general meetings or unanimous resolutions
contemplated by Article&nbsp;10.2, the directors may appoint one or more additional directors, but the
number of additional directors appointed under this Article&nbsp;14.8 must not at any time exceed:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>one-third of the number of first directors, if, at the time of the
appointments, one or more of the first directors have not yet completed their first
term of office; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in any other case, one-third of the number of the current directors who were
elected or appointed as directors other than under this Article&nbsp;14.8.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">Any director so appointed ceases to hold office immediately before the next election or appointment
of


</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt">19



<P align="left" style="font-size: 10pt">directors under Article&nbsp;14.1(1), but is eligible for re-election or re-appointment.



<P align="left" style="font-size: 10pt"><B>14.9 Ceasing to be a Director</B>



<P align="left" style="font-size: 10pt">A director ceases to be a director when:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the term of office of the director expires;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the director dies;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the director resigns as a director by notice in writing provided to the Company
or a lawyer for the Company; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the director is removed from office pursuant to Articles 14.10 or 14.11.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>14.10 Removal of Director by Shareholders</B>



<P align="left" style="font-size: 10pt">The Company may remove any director before the expiration of his or her term of office by special
resolution. In that event, the shareholders may elect, or appoint by ordinary resolution, a
director to fill the resulting vacancy. If the shareholders do not elect or appoint a director to
fill the resulting vacancy contemporaneously with the removal, then the directors may appoint or
the shareholders may elect, or appoint by ordinary resolution, a director to fill that vacancy.



<P align="left" style="font-size: 10pt"><B>14.11 Removal of Director by Directors</B>



<P align="left" style="font-size: 10pt">The directors may remove any director before the expiration of his or her term of office if the
director is convicted of an indictable offence, or if the director ceases to be qualified to act as
a director of a company and does not promptly resign, and the directors may appoint a director to
fill the resulting vacancy.



<P align="left" style="font-size: 10pt"><FONT style="font-variant: SMALL-CAPS"><B>15.</B></FONT> <FONT style="font-variant: SMALL-CAPS"><B>Alternate Directors</B></FONT>



<P align="left" style="font-size: 10pt"><B>15.1 Appointment of Alternate Director</B>



<P align="left" style="font-size: 10pt">Any director (an &#147;appointor&#148;) may by notice in writing received by the Company appoint any person
(an &#147;appointee&#148;) who is qualified to act as a director to be his or her alternate to act in his or
her place at meetings of the directors or committees of the directors at which the appointor is not
present unless (in the case of an appointee who is not a director) the directors have reasonably
disapproved the appointment of such person as an alternate director and have given notice to that
effect to his or her appointor within a reasonable time after the notice of appointment is received
by the Company.



<P align="left" style="font-size: 10pt"><B>15.2 Notice of Meetings</B>



<P align="left" style="font-size: 10pt">Every alternate director so appointed is entitled to notice of meetings of the directors and of
committees of the directors of which his or her appointor is a member and to attend and vote as a
director at any such meetings at which his or her appointor is not present.



<P align="left" style="font-size: 10pt"><B>15.3 Alternate for More Than One Director Attending Meetings</B>



<P align="left" style="font-size: 10pt">A person may be appointed as an alternate director by more than one director, and an alternate
director:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>will be counted in determining the quorum for a meeting of directors once for
each of his or her appointors and, in the case of an appointee who is also a director,
once more in that capacity;</TD>
</TR>

</TABLE>
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt">20

<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>has a separate vote at a meeting of directors for each of his or her appointors
and, in the case of an appointee who is also a director, an additional vote in that
capacity;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>will be counted in determining the quorum for a meeting of a committee of
directors once for each of his or her appointors who is a member of that committee and,
in the case of an appointee who is also a member of that committee as a director, once
more in that capacity;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>has a separate vote at a meeting of a committee of directors for each of his or
her
appointors who is a member of that committee and, in the case of an appointee who is
also a member of that committee as a director, an additional vote in that capacity.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>15.4 Consent Resolutions</B>



<P align="left" style="font-size: 10pt">Every alternate director, if authorized by the notice appointing him or her, may sign in place of
his or her appointor any resolutions to be consented to in writing.



<P align="left" style="font-size: 10pt"><B>15.5 Alternate Director Not an Agent</B>



<P align="left" style="font-size: 10pt">Every alternate director is deemed not to be the agent of is or her appointor.



<P align="left" style="font-size: 10pt"><B>15.6 Revocation of Appointment of Alternate Director</B>



<P align="left" style="font-size: 10pt">An appointor may at any time, by notice in writing received by the Company, revoke the appointment
of an alternate director appointed by him or her.



<P align="left" style="font-size: 10pt"><B>15.7 Ceasing to be an Alternate Director</B>



<P align="left" style="font-size: 10pt">The appointment of an alternate director ceases when:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>his or her appointor ceases to be a director and is not promptly re-elected or
re-appointed;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the alternate director dies;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the alternate director resigns as an alternate director by notice in writing
provided to the Company or a lawyer for the Company;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the alternate director ceases to be qualified to act as a director; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>his or her appointor revokes the appointment of the alternate director.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>15.8 Remuneration and Expenses of Alternate Director</B>



<P align="left" style="font-size: 10pt">The Company may reimburse an alternate director for the reasonable expenses that would be properly
reimbursed if he or she were a director, and the alternate director is entitled to receive from the
Company such proportion, if any, of the remuneration otherwise payable to the appointor as the
appointor may from time to time direct.



<P align="left" style="font-size: 10pt"><FONT style="font-variant: SMALL-CAPS"><B>16.</B></FONT> <FONT style="font-variant: SMALL-CAPS"><B>Powers and Duties of Directors</B></FONT>



<P align="left" style="font-size: 10pt"><B>16.1 Powers of Management</B>



<P align="left" style="font-size: 10pt">The directors must, subject to the <I>Business Corporations Act </I>and these Articles, manage or
supervise the management of the business and affairs of the Company and have the authority to
exercise all such powers of the Company as are not, by the <I>Business Corporations Act </I>or by these
Articles, required to be exercised by the shareholders of the Company.


</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt">21



<P align="left" style="font-size: 10pt"><B>16.2 Appointment of Attorney of Company</B>



<P align="left" style="font-size: 10pt">The directors may from time to time, by power of attorney or other instrument, under seal if so
required by law, appoint any person to be the attorney of the Company for such purposes, and with such powers,
authorities and discretions (not exceeding those vested in or exercisable by the directors under
these Articles and excepting the power to fill vacancies in the board of directors, to remove a
director, to change the membership of, or fill vacancies in, any committee of the directors, to
appoint or remove officers appointed by the directors and to declare dividends) and for such
period, and with such remuneration and subject to such conditions as the directors may think fit.
Any such power of attorney may contain such provisions for the protection or convenience of persons
dealing with such attorney as the directors think fit. Any such attorney may be authorized by the
directors to sub-delegate all or any of the powers, authorities and discretions for the time being
vested in him or her.



<P align="left" style="font-size: 10pt"><FONT style="font-variant: SMALL-CAPS"><B>17.</B></FONT> <FONT style="font-variant: SMALL-CAPS"><B>Disclosure of Interest of Directors</B></FONT>



<P align="left" style="font-size: 10pt"><B>17.1 Obligation to Account for Profits</B>



<P align="left" style="font-size: 10pt">A director or senior officer who holds a disclosable interest (as that term is used in the <I>Business
Corporations Act</I>) in a contract or transaction into which the Company has entered or proposes to
enter is liable to account to the Company for any profit that accrues to the director or senior
officer under or as a result of the contract or transaction only if and to the extent provided in
the <I>Business Corporations Act</I>.



<P align="left" style="font-size: 10pt"><B>17.2 Restrictions on Voting by Reason of Interest</B>



<P align="left" style="font-size: 10pt">A director who holds a disclosable interest in a contract or transaction into which the Company has
entered or proposes to enter is not entitled to vote on any directors<FONT style="font-family: WP TypographicSymbols">&#063;</FONT> resolution to approve
that contract or transaction, unless all the directors have a disclosable interest in that contract
or transaction, in which case any or all of those directors may vote on such resolution.



<P align="left" style="font-size: 10pt"><B>17.3 Interested Director Counted in Quorum</B>



<P align="left" style="font-size: 10pt">A director who holds a disclosable interest in a contract or transaction into which the Company has
entered or proposes to enter and who is present at the meeting of directors at which the contract
or transaction is considered for approval may be counted in the quorum at the meeting whether or
not the director votes on any or all of the resolutions considered at the meeting.



<P align="left" style="font-size: 10pt"><B>17.4 Disclosure of Conflict of Interest or Property</B>



<P align="left" style="font-size: 10pt">A director or senior officer who holds any office or possesses any property, right or interest that
could result, directly or indirectly, in the creation of a duty or interest that materially
conflicts with that individual&#146;s duty or interest as a director or senior officer, must disclose
the nature and extent of the conflict as required by the <I>Business Corporations Act</I>.



<P align="left" style="font-size: 10pt"><B>17.5 Director Holding Other Office in the Company</B>



<P align="left" style="font-size: 10pt">A director may hold any office or place of profit with the Company, other than the office of
auditor of the Company, in addition to his or her office of director for the period and on the
terms (as to remuneration or otherwise) that the directors may determine.



<P align="left" style="font-size: 10pt"><B>17.6 No Disqualification</B>



<P align="left" style="font-size: 10pt">No director or intended director is disqualified by his or her office from contracting with the
Company
either with regard to the holding of any office or place of profit the director holds with the
Company or as vendor, purchaser or otherwise, and no contract or transaction entered into by or on
behalf of the Company



</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt">22



<P align="left" style="font-size: 10pt">in which a director is in any way interested is liable to be voided for that
reason.



<P align="left" style="font-size: 10pt"><B>17.7 Professional Services by Director or Officer</B>



<P align="left" style="font-size: 10pt">Subject to the <I>Business Corporations Act</I>, a director or officer, or any person in which a director
or officer has an interest, may act in a professional capacity for the Company, except as auditor
of the Company, and the director or officer or such person is entitled to remuneration for
professional services as if that director or officer were not a director or officer.



<P align="left" style="font-size: 10pt"><B>17.8 Director or Officer in Other Corporations</B>



<P align="left" style="font-size: 10pt">A director or officer may be or become a director, officer or employee of, or otherwise interested
in, any person in which the Company may be interested as a shareholder or otherwise, and, subject
to the <I>Business Corporations Act</I>, the director or officer is not accountable to the Company for any
remuneration or other benefits received by him or her as director, officer or employee of, or from
his or her interest in, such other person.



<P align="left" style="font-size: 10pt"><FONT style="font-variant: SMALL-CAPS"><B>18.</B></FONT> <FONT style="font-variant: SMALL-CAPS"><B>Proceedings of Directors</B></FONT>



<P align="left" style="font-size: 10pt"><B>18.1 Meetings of Directors</B>



<P align="left" style="font-size: 10pt">The directors may meet together for the conduct of business, adjourn and otherwise regulate their
meetings as they think fit, and meetings of the directors held at regular intervals may be held at
the place, at the time and on the notice, if any, as the directors may from time to time determine.



<P align="left" style="font-size: 10pt"><B>18.2 Voting at Meetings</B>



<P align="left" style="font-size: 10pt">Questions arising at any meeting of directors are to be decided by a majority of votes and, in the
case of an equality of votes, the chair of the meeting does not have a second or casting vote.



<P align="left" style="font-size: 10pt"><B>18.3 Chair of Meetings</B>



<P align="left" style="font-size: 10pt">The following individual is entitled to preside as chair at a meeting of directors:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the chair of the board, if any;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in the absence of the chair of the board, the president, if any, if the
president is a director; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any other director chosen by the directors if:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>neither the chair of the board nor the president, if a
director, is present at the meeting within 15 minutes after the time set for
holding the meeting;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>neither the chair of the board nor the president, if a
director, is willing to chair the meeting; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the chair of the board and the president, if a director, have
advised the secretary, if any, or any other director, that they will not be
present at the meeting.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>18.4 Meetings by Telephone or Other Communications Medium</B>



<P align="left" style="font-size: 10pt">A director may participate in a meeting of the directors or of any committee of the directors in
person or by telephone if all directors participating in the meeting, whether in person or by
telephone or other


</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt">23



<P align="left" style="font-size: 10pt">communications medium, are able to communicate with each other. A director may
participate in a meeting of the directors or of any committee of the directors by a communications
medium other than telephone if all directors participating in the meeting, whether in person or by
telephone or other communications medium, are able to communicate with each other and if all
directors who wish to participate in the meeting agree to such participation. A director who
participates in a meeting in a manner contemplated by this Article&nbsp;18.4 is deemed for all purposes
of the <I>Business Corporations Act </I>and these Articles to be present at the meeting and to have agreed
to participate in that manner.



<P align="left" style="font-size: 10pt"><B>18.5 Calling of Meetings</B>



<P align="left" style="font-size: 10pt">A director may, and the secretary or an assistant secretary of the Company, if any, on the request
of a director must, call a meeting of the directors at any time.



<P align="left" style="font-size: 10pt"><B>18.6 Notice of Meetings</B>



<P align="left" style="font-size: 10pt">Other than for meetings held at regular intervals as determined by the directors pursuant to
Article&nbsp;18.1, reasonable notice of each meeting of the directors, specifying the place, day and
time of that meeting must be given to each of the directors and the alternate directors by any
method set out in Article&nbsp;24.1 or orally or by telephone.



<P align="left" style="font-size: 10pt"><B>18.7 When Notice Not Required</B>



<P align="left" style="font-size: 10pt">It is not necessary to give notice of a meeting of the directors to a director or an alternate
director if:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the meeting is to be held immediately following a meeting of shareholders at
which that director was elected or appointed, or is the meeting of the directors at
which that director is appointed; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the director or alternate director, as the case may be, has waived notice of
the meeting.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>18.8 Meeting Valid Despite Failure to Give Notice</B>



<P align="left" style="font-size: 10pt">The accidental omission to give notice of any meeting of directors to, or the non-receipt of any
notice by, any director or alternate director, does not invalidate any proceedings at that meeting.



<P align="left" style="font-size: 10pt"><B>18.9 Waiver of Notice of Meetings</B>



<P align="left" style="font-size: 10pt">Any director or alternate director may send to the Company a document signed by him or her waiving
notice of any past, present or future meeting or meetings of the directors and may at any time
withdraw that waiver with respect to meetings held after that withdrawal. After sending a waiver
with respect to all future meetings and until that waiver is withdrawn, no notice of any meeting of
the directors need be given to that director and, unless the director otherwise requires by notice
in writing to the Company, to his or her alternate director, and all meetings of the directors so
held are deemed not to be improperly called or constituted by reason of notice not having been
given to such director or alternate director.



<P align="left" style="font-size: 10pt"><B>18.10 Quorum</B>



<P align="left" style="font-size: 10pt">The quorum necessary for the transaction of the business of the directors may be set by the
directors and, if
not so set, is deemed to be set at two directors or, if the number of directors is set at one, is
deemed to be set at one director, and that director may constitute a meeting.



<P align="left" style="font-size: 10pt"><B>18.11 Validity of Acts Where Appointment Defective</B>



<P align="left" style="font-size: 10pt">Subject to the <I>Business Corporations Act</I>, an act of a director or officer is not invalid merely
because of an



</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt">24



<P align="left" style="font-size: 10pt">irregularity in the election or appointment or a defect in the qualification of that
director or officer.



<P align="left" style="font-size: 10pt"><B>18.12 Consent Resolutions in Writing</B>



<P align="left" style="font-size: 10pt">A resolution of the directors or of any committee of the directors may be passed without a meeting:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in all cases, if each of the directors entitled to vote on the resolution
consents to it in writing; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in the case of a resolution to approve a contract or transaction in respect of
which a director has disclosed that he or she has or may have a disclosable interest,
if each of the other directors who are entitled to vote on the resolution consents to
it in writing.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">A consent in writing under this Article may be by signed document, fax, email or any other method
of transmitting legibly recorded messages. A consent in writing may be in two or more counterparts
which together are deemed to constitute one consent in writing. A resolution of the directors or
of any committee of the directors passed in accordance with this Article&nbsp;18.12 is effective on the
date stated in the consent in writing or on the latest date stated on any counterpart and is deemed
to be a proceeding at a meeting of directors or of the committee of the directors and to be as
valid and effective as if it had been passed at a meeting of the directors or of the committee of
the directors that satisfies all the requirements of the <I>Business Corporations Act </I>and all the
requirements of these Articles relating to meetings of the directors or of a committee of the
directors.



<P align="left" style="font-size: 10pt"><FONT style="font-variant: SMALL-CAPS"><B>19.</B></FONT> <FONT style="font-variant: SMALL-CAPS"><B>Executive and Other Committees</B></FONT>



<P align="left" style="font-size: 10pt"><B>19.1 Appointment and Powers of Executive Committee</B>



<P align="left" style="font-size: 10pt">The directors may, by resolution, appoint an executive committee consisting of the director or
directors that they consider appropriate, and this committee has, during the intervals between
meetings of the board of directors, all of the directors&#146; powers, except:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the power to fill vacancies in the board of directors;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the power to remove a director;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the power to change the membership of, or fill vacancies in, any committee of
the directors; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>such other powers, if any, as may be set out in the resolution or any
subsequent directors&#146; resolution.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>19.2 Appointment and Powers of Other Committees</B>



<P align="left" style="font-size: 10pt">The directors may, by resolution:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>appoint one or more committees (other than the executive committee) consisting
of the director or directors that they consider appropriate;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>delegate to a committee appointed under paragraph (1)&nbsp;any of the directors&#146;
powers, except:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the power to fill vacancies in the board of directors;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the power to remove a director;</TD>
</TR>

</TABLE>
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt">25

<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the power to change the membership of, or fill vacancies in,
any committee of the directors; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the power to appoint or remove officers appointed by the
directors; and</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>make any delegation referred to in paragraph (2)&nbsp;subject to the conditions set
out in the resolution or any subsequent directors&#146; resolution.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>19.3 Obligations of Committees</B>



<P align="left" style="font-size: 10pt">Any committee appointed under Articles 19.1 or 19.2, in the exercise of the powers delegated to it,
must:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>conform to any rules that may from time to time be imposed on it by the
directors; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>report every act or thing done in exercise of those powers at such times as the
directors may require.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>19.4 Powers of Board</B>



<P align="left" style="font-size: 10pt">The directors may, at any time, with respect to a committee appointed under Articles 19.1 or 19.2:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>revoke or alter the authority given to the committee, or override a decision
made by the committee, except as to acts done before such revocation, alteration or
overriding;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>terminate the appointment of, or change the membership of, the committee; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>fill vacancies in the committee.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>19.5 Committee Meetings</B>



<P align="left" style="font-size: 10pt">Subject to Article&nbsp;19.3(1) and unless the directors otherwise provide in the resolution appointing
the committee or in any subsequent resolution, with respect to a committee appointed under Articles
19.1 or 19.2:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the committee may meet and adjourn as it thinks proper;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the committee may elect a chair of its meetings but, if no chair of a meeting
is elected, or if at a meeting the chair of the meeting is not present within 15
minutes after the time set for holding the meeting, the directors present who are
members of the committee may choose one of their number to chair the meeting;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a majority of the members of the committee constitutes a quorum of the
committee; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>questions arising at any meeting of the committee are determined by a majority
of votes of the members present, and in case of an equality of votes, the chair of the
meeting does not have a second or casting vote.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><FONT style="font-variant: SMALL-CAPS"><B>20.</B></FONT> <FONT style="font-variant: SMALL-CAPS"><B>Officers</B></FONT>



<P align="left" style="font-size: 10pt"><B>20.1 Directors May Appoint Officers</B>



<P align="left" style="font-size: 10pt">The directors may, from time to time, appoint such officers, if any, as the directors determine and
the directors may, at any time, terminate any such appointment.


</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt">26



<P align="left" style="font-size: 10pt"><B>20.2 Functions, Duties and Powers of Officers</B>



<P align="left" style="font-size: 10pt">The directors may, for each officer:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>determine the functions and duties of the officer;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>entrust to and confer on the officer any of the powers exercisable by the
directors on such terms and conditions and with such restrictions as the directors
think fit; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>revoke, withdraw, alter or vary all or any of the functions, duties and powers
of the officer.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>20.3 Qualifications</B>



<P align="left" style="font-size: 10pt">No officer may be appointed unless that officer is qualified in accordance with the <I>Business
Corporations Act</I>. One person may hold more than one position as an officer of the Company. Any
person appointed as the chair of the board or as a managing director must be a director. Any other
officer need not be a director.



<P align="left" style="font-size: 10pt"><B>20.4 Remuneration and Terms of Appointment</B>



<P align="left" style="font-size: 10pt">All appointments of officers are to be made on the terms and conditions and at the remuneration
(whether by way of salary, fee, commission, participation in profits or otherwise) that the
directors thinks fit and are subject to termination at the pleasure of the directors, and an
officer may in addition to such remuneration be entitled to receive, after he or she ceases to hold
such office or leaves the employment of the Company, a pension or gratuity.



<P align="left" style="font-size: 10pt"><FONT style="font-variant: SMALL-CAPS"><B>21.</B></FONT> <FONT style="font-variant: SMALL-CAPS"><B>Indemnification</B></FONT>



<P align="left" style="font-size: 10pt"><B>21.1 Definitions</B>



<P align="left" style="font-size: 10pt">In this Article&nbsp;21:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;eligible penalty&#148; means a judgment, penalty or fine awarded or imposed in, or
an amount paid in settlement of, an eligible proceeding;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;eligible proceeding&#148; means a legal proceeding or investigative action, whether
current, threatened, pending or completed, in which a director, former director or
alternate director of the Company (an &#147;eligible party&#148;) or any of the heirs and legal
personal representatives of the eligible party, by reason of the eligible party being
or having been a director or alternate director of the Company:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>is or may be joined as a party; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>is or may be liable for or in respect of a judgment, penalty or
fine in, or expenses related to, the proceeding;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;expenses&#148; has the meaning set out in the <I>Business Corporations Act</I>.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>21.2 Mandatory Indemnification of Directors and Former Directors</B>



<P align="left" style="font-size: 10pt">Subject to the <I>Business Corporations Act</I>, the Company must indemnify a director, former director or
alternate director of the Company and his or her heirs and legal personal representatives against
all eligible penalties to which such person is or may be liable, and the Company must, after the
final disposition of an eligible proceeding, pay the expenses actually and reasonably incurred by
such person in respect of that proceeding. Each director and alternate director is deemed to have
contracted with the Company on the



</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt">27



<P align="left" style="font-size: 10pt">terms of the indemnity contained in this Article&nbsp;21.2.



<P align="left" style="font-size: 10pt"><B>21.3 Indemnification of Other Persons</B>



<P align="left" style="font-size: 10pt">Subject to any restrictions in the <I>Business Corporations Act</I>, the Company may indemnify any person.



<P align="left" style="font-size: 10pt"><B>21.4 Non-Compliance with </B><B><I>Business Corporations Act</I></B>



<P align="left" style="font-size: 10pt">The failure of a director, alternate director or officer of the Company to comply with the <I>Business
Corporations Act </I>or these Articles does not invalidate any indemnity to which he or she is entitled
under this Part.



<P align="left" style="font-size: 10pt"><B>21.5 Company May Purchase Insurance</B>



<P align="left" style="font-size: 10pt">The Company may purchase and maintain insurance for the benefit of any person (or his or her heirs
or legal personal representatives) who:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>is or was a director, alternate director, officer, employee or agent of the
Company;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>is or was a director, alternate director, officer, employee or agent of a
corporation at a time when the corporation is or was an affiliate of the Company;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>at the request of the Company, is or was a director, alternate director,
officer, employee or agent of a corporation or of a partnership, trust, joint venture
or other unincorporated entity;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>at the request of the Company, holds or held a position equivalent to that of a
director, alternate director or officer of a partnership, trust, joint venture or other
unincorporated entity;</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">against any liability incurred by him or her as such director, alternate director, officer,
employee or agent or person who holds or held such equivalent position.



<P align="left" style="font-size: 10pt"><FONT style="font-variant: SMALL-CAPS"><B>22.</B></FONT> <FONT style="font-variant: SMALL-CAPS"><B>Dividends</B></FONT>



<P align="left" style="font-size: 10pt"><B>22.1 Payment of Dividends Subject to Special Rights</B>



<P align="left" style="font-size: 10pt">The provisions of this Article&nbsp;22 are subject to the rights, if any, of shareholders holding shares
with special rights as to dividends.



<P align="left" style="font-size: 10pt"><B>22.2 Declaration of Dividends</B>



<P align="left" style="font-size: 10pt">Subject to the <I>Business Corporations Act</I>, the directors may from time to time declare and authorize
payment of such dividends as they may deem advisable. The Board of Directors shall have the right
and authority to declare dividends on any class of shares, to the exclusion of and without
declaring dividends on any other class of shares, in their sole discretion as they see fit.



<P align="left" style="font-size: 10pt"><B>22.3 No Notice Required</B>



<P align="left" style="font-size: 10pt">The directors need not give notice to any shareholder of any declaration under Article&nbsp;22.2.



<P align="left" style="font-size: 10pt"><B>22.4 Record Date</B>



<P align="left" style="font-size: 10pt">The directors may set a date as the record date for the purpose of determining shareholders
entitled to receive payment of a dividend. The record date must not precede the date on which the
dividend is to be paid by more than two months. If no record date is set, the record date is 5 p.m.
on the date on which the


</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt">28



<P align="left" style="font-size: 10pt">directors pass the resolution declaring the dividend.



<P align="left" style="font-size: 10pt"><B>22.5 Manner of Paying Dividend</B>



<P align="left" style="font-size: 10pt">A resolution declaring a dividend may direct payment of the dividend wholly or partly by the
distribution of specific assets or of fully paid shares or of bonds, debentures or other securities
of the Company, or in any one or more of those ways.



<P align="left" style="font-size: 10pt"><B>22.6 Settlement of Difficulties</B>



<P align="left" style="font-size: 10pt">If any difficulty arises in regard to a distribution under Article&nbsp;22.5, the directors may settle
the difficulty as they deem advisable, and, in particular, may:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>set the value for distribution of specific assets;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>determine that cash payments in substitution for all or any part of the
specific assets to which any shareholders are entitled may be made to any shareholders
on the basis of the value so fixed in order to adjust the rights of all parties; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>vest any such specific assets in trustees for the persons entitled to the
dividend.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>22.7 When Dividend Payable</B>



<P align="left" style="font-size: 10pt">Any dividend may be made payable on such date as is fixed by the directors.



<P align="left" style="font-size: 10pt"><B>22.8 Dividends to be Paid in Accordance with Number of Shares</B>



<P align="left" style="font-size: 10pt">All dividends on shares of any class or series of shares must be declared and paid according to the
number of such shares held.



<P align="left" style="font-size: 10pt"><B>22.9 Receipt by Joint Shareholders</B>



<P align="left" style="font-size: 10pt">If several persons are joint shareholders of any share, any one of them may give an effective
receipt for any dividend, bonus or other money payable in respect of the share.



<P align="left" style="font-size: 10pt"><B>22.10 Dividend Bears No Interest</B>



<P align="left" style="font-size: 10pt">No dividend bears interest against the Company.



<P align="left" style="font-size: 10pt"><B>22.11 Fractional Dividends</B>



<P align="left" style="font-size: 10pt">If a dividend to which a shareholder is entitled includes a fraction of the smallest monetary unit
of the currency of the dividend, that fraction may be disregarded in making payment of the dividend
and that payment represents full payment of the dividend.



<P align="left" style="font-size: 10pt"><B>22.12 Payment of Dividends</B>



<P align="left" style="font-size: 10pt">Any dividend or other distribution payable in cash in respect of shares may be paid by cheque, made
payable to the order of the person to whom it is sent, and mailed to the address of the
shareholder, or in the case of joint shareholders, to the address of the joint shareholder who is
first named on the central securities register, or to the person and to the address the shareholder
or joint shareholders may direct in writing. The mailing of such cheque will, to the extent of the
sum represented by the cheque (plus the amount of the tax required by law to be deducted),
discharge all liability for the dividend unless such cheque is not paid on presentation or the
amount of tax so deducted is not paid to the appropriate taxing authority.


</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt">29



<P align="left" style="font-size: 10pt"><B>22.13 Capitalization of Surplus</B>



<P align="left" style="font-size: 10pt">Notwithstanding anything contained in these Articles, the directors may from time to time
capitalize any surplus of the Company and may from time to time issue, as fully paid, shares or any
bonds, debentures or other securities of the Company as a dividend representing the surplus or any
part of the surplus.



<P align="left" style="font-size: 10pt"><FONT style="font-variant: SMALL-CAPS"><B>23.</B></FONT> <FONT style="font-variant: SMALL-CAPS"><B>Accounting Records</B></FONT>



<P align="left" style="font-size: 10pt"><B>23.1 Recording of Financial Affairs</B>



<P align="left" style="font-size: 10pt">The directors must cause adequate accounting records to be kept to record properly the financial
affairs and condition of the Company and to comply with the <I>Business Corporations Act</I>.



<P align="left" style="font-size: 10pt"><B>23.2 Inspection of Accounting Records</B>



<P align="left" style="font-size: 10pt">Unless the directors determine otherwise, or unless otherwise determined by ordinary resolution, no
shareholder of the Company is entitled to inspect or obtain a copy of any accounting records of the
Company.



<P align="left" style="font-size: 10pt"><FONT style="font-variant: SMALL-CAPS"><B>24.</B></FONT> <FONT style="font-variant: SMALL-CAPS"><B>Notices</B></FONT>



<P align="left" style="font-size: 10pt"><B>24.1 Method of Giving Notice</B>



<P align="left" style="font-size: 10pt">Unless the <I>Business Corporations Act </I>or these Articles provides otherwise, a notice, statement,
report or other record required or permitted by the <I>Business Corporations Act </I>or these Articles to
be sent by or to a person may be sent by any one of the following methods:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>mail addressed to the person at the applicable address for that person as
follows:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>for a record mailed to a shareholder, the shareholder&#146;s
registered address;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>for a record mailed to a director or officer, the prescribed
address for mailing shown for the director or officer in the records kept by
the Company or the mailing address provided by the recipient for the sending of
that record or records of that class;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in any other case, the mailing address of the intended
recipient;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>delivery at the applicable address for that person as follows, addressed to the
person:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>for a record delivered to a shareholder, the shareholder&#146;s
registered address;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>for a record delivered to a director or officer, the prescribed
address for delivery shown for the director or officer in the records kept by
the Company or the delivery address provided by the recipient for the sending
of that record or records of that class;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in any other case, the delivery address of the intended
recipient;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>sending the record by fax to the fax number provided by the intended recipient
for the sending of that record or records of that class;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>sending the record by email to the email address provided by the intended
recipient for the sending of that record or records of that class;</TD>
</TR>


</TABLE>
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt">30

<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>physical delivery to the intended recipient.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>24.2 Deemed Receipt of Mailing</B>



<P align="left" style="font-size: 10pt">A record that is mailed to a person by ordinary mail to the applicable address for that person
referred to in Article&nbsp;24.1 is deemed to be received by the person to whom it was mailed on the
day, Saturdays, Sundays and holidays excepted, following the date of mailing.



<P align="left" style="font-size: 10pt"><B>24.3 Certificate of Sending</B>



<P align="left" style="font-size: 10pt">A certificate signed by the secretary, if any, or other officer of the Company or of any other
corporation acting in that behalf for the Company stating that a notice, statement, report or other
record was addressed as required by Article&nbsp;24.1, prepaid and mailed or otherwise sent as permitted
by Article&nbsp;24.1 is conclusive evidence of that fact.



<P align="left" style="font-size: 10pt"><B>24.4 Notice to Joint Shareholders</B>



<P align="left" style="font-size: 10pt">A notice, statement, report or other record may be provided by the Company to the joint
shareholders of a share by providing the notice to the joint shareholder first named in the central
securities register in respect of the share.



<P align="left" style="font-size: 10pt"><B>24.5 Notice to Trustees</B>



<P align="left" style="font-size: 10pt">A notice, statement, report or other record may be provided by the Company to the persons entitled
to a share in consequence of the death, bankruptcy or incapacity of a shareholder by:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>mailing the record, addressed to them:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>by name, by the title of the legal personal representative of
the deceased or incapacitated shareholder, by the title of trustee of the
bankrupt shareholder or by any similar description; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>at the address, if any, supplied to the Company for that
purpose by the persons claiming to be so entitled; or</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if an address referred to in paragraph (1)(b) has not been supplied to the
Company, by giving the notice in a manner in which it might have been given if the
death, bankruptcy or
incapacity had not occurred.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><FONT style="font-variant: SMALL-CAPS"><B>25.</B></FONT> <FONT style="font-variant: SMALL-CAPS"><B>Seal</B></FONT>



<P align="left" style="font-size: 10pt"><B>25.1 Who May Attest Seal</B>



<P align="left" style="font-size: 10pt">Except as provided in Articles 25.2 and 25.3, the Company&#146;s seal, if any, must not be impressed on
any record except when that impression is attested by the signatures of:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any two directors;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any officer, together with any director;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if the Company only has one director, that director; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any one or more directors or officers or persons as may be determined by the
directors.</TD>
</TR>

</TABLE>
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt">31

<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>


<P align="left" style="font-size: 10pt"><B>25.2 Sealing Copies</B>



<P align="left" style="font-size: 10pt">For the purpose of certifying under seal a certificate of incumbency of the directors or officers
of the Company or a true copy of any resolution or other document, despite Article&nbsp;25.1, the
impression of the seal may be attested by the signature of any director or officer.



<P align="left" style="font-size: 10pt"><B>25.3 Mechanical Reproduction of Seal</B>



<P align="left" style="font-size: 10pt">The directors may authorize the seal to be impressed by third parties on share certificates or
bonds, debentures or other securities of the Company as they may determine appropriate from time to
time. To enable the seal to be impressed on any share certificates or bonds, debentures or other
securities of the Company, whether in definitive or interim form, on which facsimiles of any of the
signatures of the directors or officers of the Company are, in accordance with the <I>Business
Corporations Act </I>or these Articles, printed or otherwise mechanically reproduced, there may be
delivered to the person employed to engrave, lithograph or print such definitive or interim share
certificates or bonds, debentures or other securities one or more unmounted dies reproducing the
seal and the chair of the board or any senior officer together with the secretary, treasurer,
secretary-treasurer, an assistant secretary, an assistant treasurer or an assistant
secretary-treasurer may in writing authorize such person to cause the seal to be impressed on such
definitive or interim share certificates or bonds, debentures or other securities by the use of
such dies. Share certificates or bonds, debentures or other securities to which the seal has been
so impressed are for all purposes deemed to be under and to bear the seal impressed on them.



<P align="left" style="font-size: 10pt"><FONT style="font-variant: SMALL-CAPS"><B>26.</B></FONT> <FONT style="font-variant: SMALL-CAPS"><B>Prohibitions</B></FONT>



<P align="left" style="font-size: 10pt"><B>26.1 Definitions</B>



<P align="left" style="font-size: 10pt">In this Article&nbsp;26:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;designated security&#148; means:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a voting security of the Company;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a security of the Company that is not a debt security and that
carries a residual right to participate in the earnings of the Company or, on
the liquidation or winding up of the Company, in its assets; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a security of the Company convertible, directly or indirectly,
into a security
described in paragraph (a)&nbsp;or (b);</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;security&#148; has the meaning assigned in the <I>Securities Act </I>(British Columbia);</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;voting security&#148; means a security of the Company that:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>is not a debt security, and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>carries a voting right either under all circumstances or under
some circumstances that have occurred and are continuing.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>26.2 Application</B>



<P align="left" style="font-size: 10pt">Article&nbsp;26.3 does not apply to the Company if and for so long as it is a public company or a
pre-existing reporting company which has the Statutory Reporting Company Provisions as part of its
Articles or to which the Statutory Reporting Company Provisions apply.


</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt">32



<P align="left" style="font-size: 10pt"><B>26.3 Consent Required for Transfer of Shares or Designated Securities</B>



<P align="left" style="font-size: 10pt">No share or designated security may be sold, transferred or otherwise disposed of without the
consent of the directors and the directors are not required to give any reason for refusing to
consent to any such sale, transfer or other disposition.



<P align="left" style="font-size: 10pt"><FONT style="font-variant: SMALL-CAPS"><B>27.</B></FONT> <FONT style="font-variant: SMALL-CAPS"><B>Change of Registered and Records Offices</B></FONT>



<P align="left" style="font-size: 10pt">The Company may appoint or change its registered and records offices, or either of them, and the
agent responsible therefor, at any time by resolution of the directors. After the appointment of
the first registered or records office agent, such agent may terminate its appointment by written
notice to any director or officer of the Company sent to the last known address of such director or
officer. The Company will then designate a new registered or records office or offices within ten
(10)&nbsp;days of receipt or deemed receipt of such notice, failing which the agent shall be entitled on
behalf of the Company (but not obliged) to execute and file a Notice to Change Offices with the
Registrar of Companies, changing the registered and records office or offices to the last known
address of the President of the Company.



<P align="left" style="font-size: 10pt"><FONT style="font-variant: SMALL-CAPS"><B>28.</B></FONT> <FONT style="font-variant: SMALL-CAPS"><B>Preference Shares</B></FONT>



<P align="left" style="font-size: 10pt">28.1 The Preference Shares without par value may be issued from time to time in one (1)&nbsp;or more
series and shall as a class have attached thereto the following preferences, rights, conditions,
restrictions, limitations and prohibitions;



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each series of Preference Shares shall consist of such number of Preference
Shares as may, before the issue thereof, be determined by the Directors of the Company.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Directors may, by resolution (&#147;Directors&#146; Resolution&#148;) duly passed before
the issuance of Preference Shares of any series alter the Notice of Articles to fix the
number of Preference Shares in, and determine the designation of the Preference Shares
of, each series and alter the Notice of Articles or Articles to create, define and
attach special rights or restrictions to Preference Shares of each series, subject to
the special rights or restrictions attached to all Preference Shares and subject to the
provisions of the <I>Business Corporations Act</I>.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Preference Shares of any series may have attached thereto such special
rights or
restrictions as may be determined by Directors&#146; Resolution with respect to each
series including (as examples only), without in any way limiting the generality of
the foregoing, special rights or restrictions concerning (i)&nbsp;the rate or amount of
dividends, whether cumulative or non-cumulative, the currency or currencies of
payment, the date or dates and place or places of payment and the date or dates from
which such dividends are to accrue, (ii)&nbsp;the right to receive notice of or to attend
or to vote at any meeting of members of the Company, (iii)&nbsp;the right to convert or
exchange Preference Shares into Common Shares or other shares, bonds, debentures,
securities, or otherwise, (iv)&nbsp;the right of the Company to redeem or to purchase
Preference Shares, (v)&nbsp;obligations with respect to sinking funds or funds for
purchase or redemption of Preference shares, rights of retraction or share purchase
plans, (vi)&nbsp;restrictions upon the payment of dividends on, or retirement of, any
other shares of the Company or of any subsidiary of the Company, (vii)&nbsp;restrictions
upon the redemption or purchase of any other shares of the Company or of any
subsidiary of the Company, (viii)&nbsp;the exercise by the Company of any election open
to it to make any payments of corporation, income or other taxes, (ix)&nbsp;the
subdivision, consolidation or reclassification of any shares of the Company, (x)
restrictions upon borrowing by the Company or by any subsidiary of the Company or
the issue by the Company of any Preference Shares in addition to the Preference
Shares of any series at any time outstanding, (ix)&nbsp;restrictions upon the reduction
of capital by the Company or by any</TD>
</TR>


</TABLE>
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt">33

<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>subsidiary of the Company, (xii)&nbsp;restrictions
upon the retirement of notes, bonds or debentures or other indebtedness of the
Company or of any subsidiary of the Company, (xiii)&nbsp;limitations or restrictions upon
or regulations concerning the conduct of the business of the Company or the
investment of its funds, (xiv)&nbsp;the holding of meetings of the holders of the
Preference Shares of any series, (xv)&nbsp;restrictions upon the creation or issuance of
any other shares or securities of the Company, and (xvi)&nbsp;the right of holders of the
Preference Shares to convert or exchange the shares of any class of the Company into
or for any other securities of the Company or into or for shares or securities of
any other company.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The holders of the Preference Shares shall not as such be entitled to vote at
any meetings of shareholders of the Company but shall be entitled to notice of meetings
of shareholders called for the purpose of authorizing the dissolution of the Company or
the sale of its undertaking or a substantial part thereof or the creation of any class
or classes of shares ranking in priority to the Preference Shares.</TD>
</TR>

</TABLE>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(5</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(a)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">In the event of any distribution of assets or property of the Company among
its shareholders, as such, other than by way of dividend or by way of redemption or
purchase from cancellation of Preference Shares of the Company whenever created, but
including, without limitation, any distribution of assets or property of the Company
resulting from any repayment of capital to shareholders upon a decrease in issued
capital of the Company (except as aforesaid) or upon the winding up or other
liquidation or dissolution of the Company or rateably among its shareholders as a
condition precedent to the liquidation or dissolution, no assets or property of the
Company shall be distributed to the holders of the Company ranking junior to the
Preference Shares until there has been paid to the holders of the Preference Shares an
amount equal to the redemption price of such Preference Shares plus a sum equal to all
unpaid dividends accrued thereon to the date of distribution (which for such purpose
shall be calculated as if the dividends on the Preference Shares were accruing for the
period from the expiration of the last quarterly dividend period for which dividends
have been paid in full up to such date of distribution): for all purposes of these
provisions the redemption price of the Preference Shares shall mean the amount paid up
thereon plus the premium, if any, payable on redemption of Preference Shares, and
shares of the Company ranking junior to the Preference Shares shall mean all shares of
any class of shares
(including Common Shares of the Company) ranking junior to the Preference
Shares as to dividends and distribution of assets and property of the
Company;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(b)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">If upon any distribution of the assets and property of the
Company among its shareholders, as such, the assets and property of the Company
are insufficient to permit payment in full to the holders of Preference Shares
of the sum distributable to them as aforesaid then the entire assets and
property of the Company shall be distributed rateably among the holders of the
Preference Shares then outstanding according to their respective rights; and</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(c)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">After payment in full to the holders of Preference Shares of
the sums distributable to them as aforesaid they shall not have the right to
receive anything further in the distribution of assets and property of the
Company and the remaining assets and property of the Company shall be
distributed to the holders of shares of the Company ranking junior to the
Preference Shares according to their respective rights.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(6)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No dividends shall at any time be declared or paid on or set apart for any
shares of the Company ranking junior to the Preference Shares (including, without
limitation, the</TD>
</TR>


</TABLE>
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt">34

<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Common Shares) nor shall the Company redeem or purchase for
cancellation any Preference Shares less than the total number of Preference Shares then
outstanding or any shares of the Company ranking junior to the Preference Shares unless
all accrued dividends on the Preference Shares then outstanding have been declared and
paid or provided for, to and including the last dividend payable on the Preference
Shares immediately prior to the date of declaration or payment or setting apart for
payment of dividends or redemption or purchase for cancellation, as the case may be.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(7)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Subject to the provisions hereof and, in particular, the provisions of clause
(6)&nbsp;hereof, the Company may at any time or from time to time, purchase Preference Shares for cancellation:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>on the open market;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>with the consent of the holders of the Preference Shares; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>pursuant to tenders received by the Company upon request for
tenders addressed to all of the holders of the Preference Shares, the whole or
any part of the Preference Shares at the lowest price which, in the opinion of
the Directors, such shares are obtainable. If any such purchase for
cancellation is made by tender the Company shall afford to every holder of
Preference Shares the opportunity of tendering such shares for purchase for
cancellation as aforesaid; the Company shall accept only the lowest tenders; if
two or more shareholders submit tenders at the same price which the Company is
prepared to accept, but which in number are in excess of the number of shares
which the Company is prepared to purchase for cancellation, then the shares to
be purchased shall be selected by the Company on a pro rata basis (disregarding
fractions) according to the number of shares offered in such tender.</TD>
</TR>

</TABLE>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">(8</TD>
    <TD nowrap valign="top">)</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(a)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Any amendment to the Articles of the Company to delete or vary any
preference, right, condition, restriction, limitation or prohibition attaching to the
Preference Shares or to create any special shares ranking in priority to or on a parity
with the Preference Shares, in addition to the authorization by a Special Resolution,
shall be authorized by at least three-quarters (3/4) of the votes cast at a meeting of
the holders of Preference Shares duly called for that purpose.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(b)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The formalities to be observed in respect of the giving of
notice of any meeting of the holders of Preference Shares (including any
meeting of the holders of any series of Preference Shares) and the conduct of
any such meeting shall be those from time to time prescribed in the Articles of
the Company in respect of meetings of shareholders, and upon every poll taken
at any such meeting (or adjourned meeting) each holder of Preference Shares (or
any series of Preference Shares, as the case may be) shall be entitled to one
(1)&nbsp;vote in respect of each Preference share held by him; provided that:</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="11%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No such meeting shall be held upon less than
twenty-one (21)&nbsp;days&#146; written notice thereof.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If at any such meeting the holders of less than
fifty percent (50%) of the outstanding Preference Shares, as the case
may be, are present or represented by proxy within half an hour after
the time fixed for such meeting, then the meeting shall be adjourned to
such date (being not more than twenty-one (21)&nbsp;days later) and to such
time and place as may be fixed and announced by the Chairman of the
meeting and at least ten (10)&nbsp;days&#146; written notice shall be given to
such adjourned meeting (which</TD>
</TR>


</TABLE>
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt">35

<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>notice may but need not specify the
purpose for which the meeting was originally called); at such adjourned
meeting the holders of the Preference Shares (or series of Preference
Shares, as the case may be) present or represented by proxy may
transact the business for which the meeting was originally called.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(9)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Common Shares shall be subject to the foregoing preferences, rights,
conditions, restrictions, limitations and prohibitions attaching to the Preference
Shares and shall be subject to such further and additional preferences, rights,
conditions, restrictions, limitations and prohibitions, as may be determined by the
Directors of the Company for each series of Preference Shares prior to the issue
thereof.</TD>
</TR>

</TABLE>



<P align="center" style="font-size: 10pt">
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="right" style="font-size: 10pt"><U><B>APPENDIX B</B></U>



<P align="center" style="font-size: 10pt"><B>NICHOLAS FINANCIAL, INC.</B>



<P align="center" style="font-size: 10pt"><B>CHARTER OF THE<BR>
AUDIT COMMITTEE</B>



<P align="left" style="font-size: 10pt"><B>1. </B><U><B>Purpose</B></U>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The purpose of the Company&#146;s Audit Committee (&#147;Committee&#148;) of Nicholas Financial, Inc.
(&#147;Company&#148;) is:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 <U><B>Assist the Board</B></U>. To assist the Board of Directors (&#147;Board&#148;) with its
responsibilities by:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Overseeing the accounting and financial reporting processes of the Company and the audits
of the financial statements of the Company; and


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Monitoring:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;the Company&#146;s compliance with legal, risk management and regulatory requirements;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;the independent auditors&#146; qualifications and independence;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;the performance of the Company&#146;s internal audit function and its independent auditors;
and


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;the Company&#146;s systems of internal control with respect to the integrity of financial
records, adherence to Company policies and compliance with legal and regulatory requirements.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 <U><B>Prepare Reports</B></U>. To prepare any reports that Securities and Exchange Commission
(&#147;SEC&#148;) rules require be included in the Company&#146;s annual proxy statement; and


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 <U><B>Other Duties</B></U>. To perform any other duties described in this Charter.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s management is ultimately responsible for preparing the Company&#146;s financial
statements and its independent auditors are ultimately responsible for auditing those statements.
In adopting this Charter, the Board acknowledges that the Committee members are not Company
employees and are not providing any expert or special assurance as to the Company&#146;s financial
statements or any professional certification as to the independent auditors&#146; work or auditing
standards. Each Committee member is entitled to rely on the integrity of those persons and
organizations within and outside the Company that provide information to the Committee, and the
accuracy and completeness of the financial and other information so provided absent actual
knowledge to the contrary.


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt"><B>2. </B><U><B>Composition</B></U>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <U><B>Membership</B></U><B>. </B>The Committee shall be comprised of not fewer than three members of
the Board, as shall be determined from time to time by the Board. The Board will appoint Committee
members annually (or as necessary to fill vacancies) upon the recommendation of the
Nominating/Corporate Governance Committee of the Board. Each member shall serve until his or her
successor is duly elected and qualified or until his or her death, resignation or removal. The
Board may remove any member of the Committee, with or without cause, by a majority vote of the
Board.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <U><B>Committee Chair</B></U><B>. </B>The Board shall designate the Committee Chair. In the absence
of a Chair, the Committee members may designate the Chair by majority vote of the full Committee
membership.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 <U><B>Other Companies&#146; Audit Committees</B></U><B>. </B>No Committee member shall simultaneously serve
on the audit committees of more than two other public companies, unless the Board determines that
this simultaneous service would not impair his/her ability to effectively serve on the Committee,
and the Board discloses this determination in the Company&#146;s annual proxy statement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 <U><B>Independence</B></U><B>. </B>Each member shall qualify as &#147;independent&#148; under the criteria set
forth in any applicable law, regulation and/or listing standard, including those of The Nasdaq
Stock Market Inc. (&#147;NASDAQ&#148;) and the SEC. Accordingly, the following persons will <U>not</U> be
considered &#147;independent&#148;:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;a director who is, or at any time during the past three years was, employed by the Company
or by any of its parent or subsidiaries;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;a director who accepted or who has a Family Member (as defined by NASDAQ Rule
4200(14)) who accepted any payments from the Company or any parent or subsidiary of the Company in
excess of $60,000 during the current fiscal year or any of the past three fiscal years, other than
the following: (i)&nbsp;compensation for Board or Board committee service, (ii)&nbsp;payments arising solely
from investments in the Company&#146;s securities; (iii)&nbsp;compensation paid to a Family Member who is a
non-executive employee of the Company or a parent or subsidiary of the Company; (iv)&nbsp;benefits under
a tax-qualified retirement plan, or non-discretionary compensation; or (v)&nbsp;loans permitted under
Section 13(k) of the Securities Exchange Act of 1934.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;a director who is a Family Member of an individual who is, or at any time during the
past three years was, employed by the Company or by any parent or subsidiary of the Company as an
executive officer;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;a director who is, or has a Family Member who is, a partner in, or a controlling
shareholder or an executive officer of, any organization to which the Company made, or from which
the Company received, payments for property or services in the current or any of the past three
fiscal years that exceed 5% of the recipient&#146;s consolidated gross


<P align="center" style="font-size: 10pt">2
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">revenues for that year, or $200,000, whichever is more, other than the following: (i)&nbsp;payments
arising solely from investments in the Company&#146;s securities; or (ii)&nbsp;payments under
non-discretionary charitable contribution matching programs;



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;a director of the Company who is, or has a Family Member who is, employed as
an executive officer of another entity where at any time during the past three years any of<U>
</U>the executive officers of the Company serve on the compensation committee of such other entity;
or


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;a director who is, or has a Family Member who is, a current partner of the
Company&#146;s independent auditors, or was a partner or employee of the Company&#146;s independent auditors
who worked on the Company&#146;s audit at any time during any of the past three years.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, to serve as a member of the Committee, no person shall thereafter accept,
directly or indirectly (other than in his or her capacity as a member of the Committee, the Board
or any other Board committee), any consulting, advisory or other compensatory fee from the Company
or its subsidiaries, except for fees associated with the receipt of fixed amounts of compensation
under a retirement plan for prior service with the Company.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 <U><B>Audit Committee Financial Expert</B></U><B>. </B>The Board shall appoint at least one member to
the Committee who, in the Board&#146;s business judgment, has accounting or related financial management
expertise. This member will be an &#147;Audit Committee Financial Expert&#148; as that term may be defined
from time to time by the SEC and demonstrates &#147;financial sophistication&#148; as defined in NASDAQ Rule
4350(d)(2)(A).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 <U><B>Financial Literacy</B></U><B>. </B>All Committee members shall be financially literate, being
able to read and understand fundamental financial statements, or must become financially literate
within a reasonable period of time after his/her appointment to the Committee.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 <U><B>No Involvement with Past Financial Statements</B></U><B>. </B>No Committee member shall have
participated in the preparation of the Company&#146;s financial statements, or those of any current
subsidiary, at any time during the previous three years.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8 <U><B>Subcommittees</B></U><B>. </B>The Committee may, by resolution passed by a majority of its
members, designate one or more subcommittees, each subcommittee to consist of one or more Committee
members. Any such subcommittee to the extent provided in the Committee&#146;s resolutions and to the
extent not limited by applicable law or listing standard, shall have and may exercise all the
powers and authority of the Committee subject to the terms of its appointment. The Committee will
name each subcommittee. Each subcommittee shall keep regular minutes of its meetings and report
them to the Committee when required.


<P align="left" style="font-size: 10pt"><B>3. <U>Meetings</U></B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Committee shall meet at least quarterly, or more frequently as circumstances dictate. The
Committee secretary shall maintain minutes of meetings and activities of the Committee in


<P align="center" style="font-size: 10pt">3
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">accordance with Michigan law and the Company&#146;s Bylaws, as may be amended and/or restated.
Each regularly scheduled session shall conclude with an executive session of the Committee absent
members of management and on those terms as the Committee may elect.



<P align="left" style="font-size: 10pt"><B>4. </B><U><B>Responsibilities and Authority</B></U>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Audit Committee shall have the following responsibilities and authority:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <U><B>Engage Independent Auditors</B></U><B>. </B>Annually, the Committee shall be directly
responsible for the appointment, compensation, retention (subject to shareholder ratification, if
that ratification is required) and supervision of the work of any registered public accounting firm
engaged (including resolution of disagreements between management and the independent auditors
regarding financial reporting) for the purpose of preparing or issuing an audit report or
performing other audit, review or attest services for the Company. The independent auditors shall
audit the consolidated financial statements of the Company and the consolidated financial
statements of selected subsidiaries for the fiscal year for which it is appointed and report
directly to the Committee.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <U><B>Limits on Engagement</B></U><B>. </B>Except as otherwise stated in this Charter, the firm
serving as the Company&#146;s independent auditors may not be retained to provide non-audit related
services to the Company or any of its subsidiaries. This also applies to non-audit related services
received by the Company&#146;s subsidiaries from other accounting firms serving as their independent
auditors. If non-audit related services for a project can reasonably be provided only by the
independent auditors due to expertise that is exclusive to that firm or for any other reason that
the Committee deems necessary, and provided that the engagement for such non-audit related services
is in compliance with all applicable legal and regulatory requirements promulgated by the SEC and
NASDAQ, the Committee must specifically approve such arrangements before the independent auditors
may be engaged to provide such service. Notwithstanding the foregoing, the independent auditors for
the Company are prohibited from providing the following non-audit services to the Company or any of
its subsidiaries:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Bookkeeping or other services related to the accounting records or financial statements of
the Company or any of its subsidiaries;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Financial information systems design and implementation;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Appraisal or valuation services, fairness opinions, or contribution-in-kind reports;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Actuarial services;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Internal audit outsourcing services;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;Management functions or human resources;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;Broker or dealer, investment advisor or investment banking services;


<P align="center" style="font-size: 10pt">4
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;Legal services and expert services unrelated to the audit; and


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;Any other services that the Public Accounting Oversight Board determines, by regulation,
is impermissible.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Committee must, with sole authority, pre-approve all terms and fees for audit services,
audit-related services, tax services and other services to be performed for the Company by the
independent auditors, subject to <I>de minimus </I>exceptions for non-audit services described in Section
10A(i)(1)(B) of the Securities Exchange Act of 1934, that is not considered part of the annual
audit and, to the extent required by applicable law, any non-audit service.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <U><B>Review Performance of Non-Audit Services</B></U><B>. </B>In connection with the Committee&#146;s
approval of non-audit services, the Committee shall consider whether the independent auditors&#146;
performance of any non-audit services is compatible with the external auditors&#146; independence.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <U><B>Establish Hiring Policies</B></U><B>. </B>The Committee shall establish clear hiring policies
for employees or former employees of the Company&#146;s independent auditors.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 <U><B>Review Independent Auditor&#146;s Work</B></U><B>. </B>At least annually, and more often if required,
the Committee shall meet with and obtain and review a formal written statement of the independent
auditors to review the conduct and results of each audit and review of the Company&#146;s financial
statements, to discuss the matters in Statement of Accounting Standards (&#147;SAS&#148;) No.&nbsp;61,
&#147;Communications with Audit Committees,&#148; as amended by SAS 89 and 90, and any other communications
required to be discussed with the Committee pursuant to applicable laws and regulations, including:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;the independent auditors&#146; internal quality control procedures;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;any material issues raised by the most recent internal quality control review or peer
review of the independent auditors&#146; firm, or by any publicly disclosed inquiry or investigation by
governmental or professional authorities, within the preceding five years, respecting one or more
independent audits carried out by the independent auditors&#146; firm, and the steps taken to deal with
those issues; and


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;all relationships between the independent auditors and the Company, including each
non-audit service provided to the Company and the matters set forth in Independence Standards Board
Standard No.&nbsp;1, in order to assess the independent auditors&#146; independence.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 <U><B>Review Auditing Decisions</B></U><B>. </B>Discuss with management and the independent
auditors, and receive a report of the independent auditors, regarding the following:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;conclusions and recommendations on the adequacy of the internal controls of the
Company, together with the responses of management, including the status of previous audit
recommendations;


<P align="center" style="font-size: 10pt">5
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;reasoning in accepting or questioning sensitive accounting estimates by management;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;reasoning in not recognizing material audit adjustments proposed by the independent
auditors;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;judgments about the quality and appropriateness (not just the acceptability) of the
Company&#146;s critical accounting principles used, including the degree of aggressiveness or
conservatism in the application of such principles in its financial reporting;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;views as to the adequacy and clarity of disclosures in the Company&#146;s financial statements
in relation to generally accepted accounting principles;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;views of how the use of generally acceptable alternatives to critical accounting and tax
principles, disclosure practices and valuation policies, preferred by the independent auditors,
would have affected the financial statements;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;conclusions regarding any serious disagreements, difficulties or disputes with management
encountered during the course of the audit;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;any significant risks to which the Company is, or might be, exposed and the steps
management has taken to minimize such risks;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;any significant changes to the audit plan;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;other matters related to the conduct of the audit required to be communicated to the
Committee under generally accepted auditing standards;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;material written communications to the management of the Company such as any management
letter or schedules of unrecognized audit adjustments; and


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;non-audit services provided by the Company&#146;s independent accountants to the Company&#146;s
affiliated investment advisor, if any, or any advisor affiliate that provides ongoing services to
the Company, which services were not pre-approved by the Committee (and consideration by the
Committee of whether the performance of such services is compatible with maintaining the
independent accountant&#146;s independence).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7 <U><B>Evaluate Auditors</B></U><B>. </B>After reviewing the foregoing report, the Committee shall
evaluate the independent auditors&#146; qualifications, performance and independence, which shall
include the review and evaluation of the lead partner of the independent auditors. In making its
evaluation, the Committee shall take into account the opinions of management and internal auditors.
The Committee shall present its conclusions with respect to the independent auditors to the Board.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8 <U><B>Ensure Required Rotation</B></U><B>. </B>The Committee shall ensure the regular rotation of the
lead audit partner and concurring partner every five (5)&nbsp;years and consider whether it would be
appropriate to implement a regular rotation of the independent auditors&#146; firm.


<P align="center" style="font-size: 10pt">6
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9 <U><B>Meet With Auditors</B></U><B>. </B>The Committee shall also meet periodically with the
independent auditors in separate executive sessions to discuss any other matters or communications
required under applicable laws, or which they or the Committee deem advisable or appropriate to
discuss.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.10 <U><B>Financial Statements</B></U>. The Committee shall review and discuss the annual audited
financial statements and quarterly financial statements with management and the independent
auditors, including the Company&#146;s disclosures under the section entitled &#147;Management&#146;s Discussion
and Analysis of Financial Condition and Results of Operations&#148; in the Company&#146;s periodic reports
filed with the SEC.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.11 <U><B>Review Effect of Changes on Financials</B></U><B>. </B>The Committee, as a whole or through its
Chair, shall review the impact on the financial statements of significant events, transactions or
changes in accounting principles or estimates that potentially affect the quality of the financial
reporting with management, the internal auditor and the independent auditors prior to filing of the
Company&#146;s Annual Reports on Form 10-K or Quarterly Reports on Form 10-Q, or as soon as practicable
if the communications cannot be made prior to its filing.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.12 <U><B>Review Management Disclosures</B></U><B>. </B>The Committee shall review disclosures made to
the Committee by the Company&#146;s chief executive officer (&#147;CEO&#148;) and chief financial officer during
their certification process for Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q
regarding any significant deficiencies in the design or operation of internal controls or material
weaknesses therein and any fraud involving management or other employees who have a significant
role in the Company&#146;s internal controls.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.13 <U><B>Meet With Internal Auditor and Management Regarding Audit</B></U><B>. </B>In connection with
its review of the Company&#146;s financial statements, the Committee shall review and discuss not only
with the independent auditors but also with management and the internal auditor the matters
relating to the conduct of the audit required to be discussed by SAS Nos. 61, 89 and 90
(Communications with Audit Committees), as they may be modified or supplemented.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.14 <U><B>Review Audit Process</B></U><B>. </B>The Committee shall review with the independent auditors
any audit problems or difficulties and management&#146;s responses to them. The Committee shall review
any significant findings and recommendations of the internal auditing function together with
management&#146;s responses to them. Any such review shall include discussion of the responsibilities,
budget and staffing of the internal audit function.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.15 <U><B>Pass on Financial Statements</B></U><B>. </B>Based on its review and discussions with
management, the internal auditor and the independent auditors, the Committee shall recommend to the
Board whether the Company&#146;s financial statements should be included in the Company&#146;s Annual Report
on Form 10-K (or the annual report to shareholders if distributed prior to the filing of the Form
10-K).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.16 <U><B>Review Press Releases on Financial Topics</B></U><B>. </B>Although the Committee shall not be
required to pre-approve or discuss in advance each earnings release or each instance in which the
Company may provide earnings guidance, the Committee shall review and discuss press


<P align="center" style="font-size: 10pt">7
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">releases related to the Company&#146;s earnings, as well as financial information and earnings
guidance provided to financial analysts and rating agencies.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.17 <U><B>Meet With Interested Parties</B></U><B>. </B>The Committee shall meet separately, on a periodic
basis, with management, with internal auditors, with independent auditors and with the general
counsel of the Company.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.18 <U><B>Review Internal Audits</B></U><B>. </B>The Committee shall review the scope and plan of the
work to be done by the Company&#146;s internal audit function, and the results of such work. The review
should also include discussion of the responsibilities, budget and staffing of the internal audit
function.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.19 <U><B>Review Internal Controls</B></U><B>. </B>The Committee shall periodically review with the
director of internal auditing the adequacy of the Company&#146;s internal controls, including the
Company&#146;s computerized information system controls and security. The Committee shall discuss with
the independent auditors any significant matters regarding internal controls over financial
reporting that have come to their attention during the conduct of the audit.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.20 <U><B>Review Expenses</B></U><B>. </B>The Committee shall consider and review directors&#146;, officers&#146;
and management&#146;s Company-funded expenses.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.21 <U><B>Review Risk Management</B></U><B>. </B>The Committee shall discuss generally the Company&#146;s
policies with respect to risk assessment and risk management.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.22 <U><B>Review Adherence to Corporate Policies</B></U><B>. </B>Periodically, the Committee shall meet
with the appropriate members of management to review adherence to corporate policies and review
processes relating to training, monitoring and reporting of policy compliance. The Committee shall
also periodically review the Company&#146;s policies and procedures regarding compliance with the
Company&#146;s Employee Code of Business Conduct and the Company&#146;s Employee Conflicts-of-Interest
Policy.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.23 <U><B>Establish Complaint Procedures</B></U><B>. </B>The Committee shall establish procedures for:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;the receipt, retention and treatment of complaints received by the Company regarding
accounting, internal accounting controls or auditing matters; and


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;the confidential, anonymous submission by the Company&#146;s employees of concerns regarding
accounting or auditing matters.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.24 <U><B>Sponsor Educational Programs</B></U><B>. </B>The Committee may cause on-going educational
programs related to appropriate financial and accounting practices to be made available to
Committee members.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.25 <U><B>Report to Board</B></U><B>. </B>The Committee shall communicate to the Board any issues with
respect to the quality or integrity of the Company&#146;s financial statements, the Company&#146;s


<P align="center" style="font-size: 10pt">8
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">compliance with legal or regulatory requirements, the performance and independence of the
Company&#146;s independent auditors or the performance of the internal audit function.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.26 <U><B>Prepare SEC Mandated Report</B></U><B>. </B>The Committee shall prepare the audit committee
report required by SEC rules to be included in the Company&#146;s annual proxy statement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.27 <U><B>Report to Board Regarding Committee Activities</B></U><B>. </B>The Committee shall report
regularly to the Board concerning its activities.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.28 <U><B>Perform a Self-Evaluation</B></U><B>. </B>The Committee shall conduct an annual performance
evaluation of the Committee and an annual assessment of the adequacy of this Charter.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.29 <U><B>Keep Minutes of Meetings</B></U><B>. </B>The Committee shall ensure the minutes of each meeting
be kept and filed with the minutes of the Company.


<P align="left" style="font-size: 10pt"><B>5. </B><U><B>Authority to Retain and Terminate Advisors </B></U>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <U><B>Legal Counsel</B></U><B>. </B>In the course of its duties, the Committee shall have the
authority, at the Company&#146;s expense, to retain, replace and terminate independent legal counsel and
other advisors, as it deems necessary to carry out its duties.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <U><B>Independent Auditors</B></U><B>. </B>The Committee shall have the sole authority to appoint,
compensate, retain (subject to shareholder ratification, if that ratification is required) and
supervise the work of any registered public accounting firm engaged (including resolution of
disagreements between management and the independent auditors regarding financial reporting) for
the purpose of preparing or issuing an audit report or performing other audit, review or attest
services for the Company. The independent auditor shall report directly to the Committee.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <U><B>Payment of Professionals</B></U><B>. </B>The Committee shall determine the appropriate funding
to be provided by the Company for payment of:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;compensation to any registered public accounting firm engaged for the purpose of preparing
or issuing an audit report or performing other audit, review or attest services for the Company;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;compensation to any counsel or advisors employed by the Committee; and


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;ordinary administrative expenses of the Committee that are necessary or appropriate in
carrying out its duties.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 <U><B>Internal Auditors</B></U><B>. </B>The Chair of the Committee shall be consulted prior to the
appointment or removal of the director (any person in charge) of internal auditing.


<P align="left" style="font-size: 10pt"><B>6. </B><U><B>Amendment</B></U>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board may amend or repeal this Charter and any of its provisions.


<P align="center" style="font-size: 10pt">9
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt"><B>7. </B><U><B>Interpretations</B></U>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All references in this Charter to a statute or regulation shall include any then-current
amendments of the statute or regulation, any successor statute or regulation and, in the case of a
statute, any rules and regulations promulgated in connection with that statute. The references to
the CEO assume that he or she will also be the Company&#146;s Chairman of the Board. If different
people hold these offices, all references to the CEO will be construed to mean the CEO and the
Chairman individually. &#147;President&#148; shall be substituted for each reference in this to &#147;CEO&#148; if the
office of CEO is vacant. References to Sections mean sections in this Charter.


<P align="center" style="font-size: 10pt">10
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="right" style="font-size: 10pt"><U><B>APPENDIX C</B></U>



<P align="center" style="font-size: 10pt"><B>NICHOLAS FINANCIAL, INC.</B>



<P align="center" style="font-size: 10pt"><B>CHARTER OF THE<BR>
NOMINATING/CORPORATE GOVERNANCE COMMITTEE</B>



<P align="left" style="font-size: 10pt"><B>1. </B><U><B>Purpose</B></U>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The purpose of the Nominating/Corporate Governance Committee (the &#147;Committee&#148;) of Nicholas
Financial, Inc. (the &#147;Company&#148;) is:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 To develop and recommend to the Board of Directors (the &#147;Board&#148;) the corporate governance
principles applicable to the Company;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 To identify and select individuals qualified to become Board members in a manner that is
consistent with criteria approved by the Board;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 To recommend that the Board select the Director nominees for the next annual meeting of
shareholders; and


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 To oversee the evaluation of the Board and management.


<P align="left" style="font-size: 10pt"><B>2. </B><U><B>Composition</B></U>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Committee shall be comprised of not fewer than two members of the Board, as shall be
determined from time to time by the Board. The members of the Committee shall be appointed by the
Board annually (or as necessary to fill vacancies) upon the recommendation of the
Nominating/Corporate Governance Committee of the Board. Each member shall serve until his or her
successor is duly elected and qualified or until such member&#146;s earlier death, resignation or
removal. The Board may remove any member of the Committee, with or without cause, by a majority
vote of the Board.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Chair of the Committee shall be designated by the Board. In the absence of such Chair,
the members of the Committee may designate the Chair by majority vote of the full Committee
membership.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each member shall qualify as &#147;independent&#148; as defined by any applicable law, regulation and/or
listing standard.


<P align="left" style="font-size: 10pt"><B>3. </B><U><B>Delegation</B></U>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Committee may, by resolution passed by a majority of the Committee, designate one or more
subcommittees, each subcommittee to consist of one or more members of the Committee. Any such
subcommittee to the extent provided in the resolutions of the Committee and to the extent not
limited by applicable law or listing standard, shall have and may exercise all the powers and
authority of the Committee. Each subcommittee shall have such name as may be determined from time to time by resolution adopted by the Committee. Each subcommittee shall
keep regular minutes of its meetings and report the same to the Committee or when required.


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt"><B>4. </B><U><B>Meetings</B></U>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Committee shall meet at least annually, or more frequently as circumstances dictate. The
secretary of the Committee shall maintain minutes or other records of meetings and activities of
the Committee in accordance with the British Columbia (Canada) Business Corporations Act and the
Company&#146;s Articles, as may be amended and/or restated. Each regularly scheduled session shall
conclude with an executive session of the Committee absent members of management and on such terms
and conditions as the Committee may elect.


<P align="left" style="font-size: 10pt"><B>5. </B><U><B>Responsibilities And Authority</B></U>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Committee shall have the following responsibilities and authority:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <U><B>Corporate Governance Principles</B></U>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Committee shall refer to the Corporate Governance Policies in making the
recommendations and determinations required of it under this Charter.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Committee shall review the Corporate Governance Policies and each Board committee
charter annually, and make recommendations to the Board regarding any amendments thereto.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The Committee shall review, on an on-going basis, all related-party transactions required
to be disclosed pursuant to Securities and Exchange Commission (&#147;SEC&#148;) Regulation&nbsp;S-K, Item&nbsp;404 for
potential conflicts of interest and approve all such transactions.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <U><B>Board and Committee Membership</B></U>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;At least annually, the Committee shall assess the size and composition of the Board in
light of the operating requirements of the Company and the current makeup of the Board.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Committee shall develop membership qualifications for the Board and all Board
committees. Any assessment of a prospective Board or committee candidate should include, at a
minimum, issues of diversity, age, background and training, business or administrative experience
and skills, dedication and commitment, business judgment, analytical skills, problem-solving
abilities and familiarity with regulatory environment. In addition, the Committee may consider
such other attributes as it deems appropriate, all in the context of the perceived needs of the
Board or applicable Committee at the point in time.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The Committee shall assist the Board with defining specific criteria for Director
independence and committee membership in a manner that is consistent with the Corporate Governance
Policies and making any necessary independence determination for committee membership. Notwithstanding the foregoing, it shall be the responsibility of the
full Board to make any required independent determination as to members of this Committee.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The Committee shall make recommendations to the Board regarding membership on committees,
taking into account (i)&nbsp;a prospective candidate&#146;s independence, (ii)


<P align="center" style="font-size: 10pt">2
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">the qualifications set forth in Section&nbsp;2 above, (iii)&nbsp;the needs of each committee, (iv)&nbsp;the desires of individual Directors,
(v)&nbsp;the suggestions of the Chief Executive Officer (&#147;CEO&#148;)<SUP style="font-size: 85%; vertical-align: text-top">1</SUP> and the Chairman, if the
Chairman is not the CEO, and (vi)&nbsp;other applicable requirements the rules and regulations of The
Nasdaq Stock Exchange Market, Inc. (&#147;NASDAQ&#148;) and the SEC.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;The Committee shall monitor compliance with the Board and Board committee membership
criteria, including on-going compliance with respect to Director independence requirements.
Notwithstanding the foregoing, it shall be the responsibility of the full Board to monitor
compliance with membership criteria and independence with respect to members of this Committee.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;The Committee shall coordinate and assist management and the Board in recruiting new
members to the Board. Annually, the Committee shall make recommendations for the nomination of
director candidates based on the criteria set forth herein and the evolving needs of the Company.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;The Committee shall investigate and consider suggestions for candidates for membership on
the Board, including shareholder nominations for the Board. The Committee will give due
consideration to all written shareholder nominations that are (i)&nbsp;submitted in writing to the
Committee, in care of the Corporate Secretary of the Company, (ii)&nbsp;received at least 120&nbsp;days
before the publication of the Company&#146;s annual proxy statement from a shareholder or group of
shareholders owning 5% or more of the voting stock for at least one year, and (iii)&nbsp;accompanied by
a description of the proposed nominee&#146;s qualifications and other relevant biographical information,
together with the written consent of the proposed nominee to be named in the proxy statement and to
serve on the Board. The Committee may request additional information regarding any prospective
candidate as it deems necessary.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;In consultation with the CEO, the Chairman and the full Board, the Committee shall search
for, recruit, screen, interview and recommend prospective Directors, as required, to provide an
appropriate balance of knowledge, experience and culpability on the Board. The Committee shall be
guided by this Charter, the Corporate Governance Policies, and other applicable laws and
regulations in recruiting and selecting Director candidates. So long as shareholders nominating
Director candidates shall have complied with the procedural requirements set forth herein, the
Committee shall apply the same criteria and employ substantially similar procedures for evaluating
shareholder nominees for the Board as it would for evaluating any other Board nominee.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;The Committee shall undertake the responsibilities delegated to the Committee as set forth
in the Corporate Governance Policies.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;The Committee shall have sole authority, at the Company&#146;s expense, to retain and terminate
any search firm to be used to identify Director candidates, including sole authority to approve the
search firm&#146;s fees and other retention terms.



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top">
    <TD width="3%" nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">1</SUP></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">&#147;President&#148; shall be substituted for each reference in this Charter to &#147;CEO&#148; if the office of CEO is
vacant for any reason.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">3
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">






<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <U><B>Evaluation</B></U>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Committee shall report to the Board regarding its activities.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Committee shall conduct an annual performance evaluation of the Committee and
facilitate and oversee the Board of Directors&#146; annual self-evaluation.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;At least annually, the Committee shall facilitate and oversee the evaluation of
management, and evaluate the quality, sufficiency and currency of information furnished by
management to the Directors in connection with Board and committee meetings and other activities of
the Directors.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The Committee shall ensure the minutes of the meeting be kept and filed with the minutes
of the Company.


<P align="left" style="font-size: 10pt"><B>6. </B><U><B>Authority To Retain And Terminate Advisors</B></U>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the course of its duties, the Committee shall have the authority, at the Company&#146;s expense,
to retain, replace and terminate independent legal counsel and other advisors, as it deems
necessary to carry out its duties.


<P align="left" style="font-size: 10pt"><B>7. </B><U><B>Amendment</B></U>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Charter and any provision contained herein may be amended or repealed by the Board.



<P align="center" style="font-size: 10pt">4
</DIV>


<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="center" style="font-size: 12pt"><B>Proxy</B>



<P align="center" style="font-size: 10pt"><B>ANNUAL GENERAL MEETING OF SHAREHOLDERS OF<BR>
Nicholas Financial, Inc.</B>



<P align="center" style="font-size: 10pt"><B>THIS PROXY IS SOLICITED BY THE BOARD OF DIRECTORS<BR>
OF NICHOLAS FINANCIAL, INC. (the &#147;Company&#148;)</B>


<P align="left" style="font-size: 10pt"><B>TO BE HELD AT the Company&#146;s Corporate Headquarters, 2454 McMullen Booth Road, Building C, #501B,
Clearwater, Florida</B>



<P align="left" style="font-size: 10pt"><B>ON Wednesday,
August&nbsp;10, 2005, AT 10:00 AM</B>


<P align="left" style="font-size: 10pt">The undersigned shareholder (&#147;Registered Shareholder&#148;) of the Company hereby appoints Peter L.
Vosotas, Chairman of the Board, Chief Executive Officer and President of the Company, or failing
this person, Ralph T. Finkenbrink, Senior Vice President and Chief Financial Officer of the
Company, or in the place of the foregoing, &#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;as proxyholder for and on
behalf of the Registered Shareholder with the power of substitution to attend, act and vote for and
on behalf of the Registered Shareholder in respect of all matters that may properly come before the
Meeting of the Shareholders of the Company and at every adjournment thereof, to the same extent and
with the same powers as if the undersigned Registered Shareholder were present at the said Meeting,
or any adjournment thereof.


<P align="left" style="font-size: 10pt">The Registered Shareholder hereby directs the proxyholder to vote the securities of the Company
registered in the name of the Registered Shareholder as specified herein.


<P align="left" style="font-size: 10pt"><B>Resolutions </B>(For full detail of each item, please see the enclosed Notice of Meeting and Proxy
Statement and Information Circular)


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="57%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom"><B>For</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom"><B>Withhold Vote</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">1.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">To elect Stephen Bragin as a
Director (to serve until the
2008 Annual General Meeting
of Shareholders):
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom"><B>For</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom"><B>Against</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom"><B>Abstain</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">2.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">To approve a special
resolution to alter the
Notice of Articles to remove
the application of
Pre-existing Company
Provisions:
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom"><B>For</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom"><B>Against</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom"><B>Abstain</B></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">3.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">To approve a special
resolution to alter the
Articles of the Company to a
new form of Articles and to
alter the Notice of Articles
to increase the authorized
share structure of the
Company to an unlimited
number of Common shares
without par value and an
unlimited number of
Preference shares without par
value:
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><BR>
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><BR><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><BR><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom"><B>For</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom"><B>Against</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom"><B>Abstain</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">To approve the appointment of
Dixon Hughes PLLC as
Independent Auditors of the
Company for the fiscal year
ending March&nbsp;31, 2006:
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">5.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">To transaction such other
business as may properly come
before the Meeting.</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="left" style="font-size: 10pt"><B>The undersigned Registered Shareholder hereby revokes any proxy previously given to attend and vote
at said Meeting.</B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">SIGN HERE:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="14%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="84%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Please Print Name:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="48%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="87%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Date:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">,&nbsp;2005</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="43%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top" nowrap><DIV style="margin-left:0px; text-indent:-0px">Number of Common Shares Represented by Proxy:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000" nowrap>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<P align="left" style="font-size: 10pt">THIS PROXY FORM IS <U>NOT VALID UNLESS </U>IT IS <U>SIGNED</U>.


<P align="left" style="font-size: 10pt">SEE IMPORTANT INFORMATION AND INSTRUCTIONS ON REVERSE



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="center" style="font-size: 12pt"><B>INSTRUCTIONS FOR COMPLETION OF PROXY</B>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This Proxy is solicited by the Board of Directors of the Company.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This form of proxy (&#147;Instrument of Proxy&#148;) <U><B>must be signed </B>by you, the Registered
Shareholder</U>, or by your attorney duly authorized by you in writing, or, in the case of a
corporation, by a duly authorized officer or representative of the corporation; and <B>if
executed by an attorney, officer, or other duly appointed representative</B>, the original or a
notarial copy of the instrument so empowering such person, or such other documentation in
support as shall be acceptable to the Chairman of the Meeting, must accompany the Instrument
of Proxy.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B>If this Instrument of Proxy is not dated </B></U>in the space provided, authority is hereby
given by you, the Registered Shareholder, for the proxyholder to date this proxy seven (7)
calendar days after the date on which it was mailed to you, the Registered Shareholder, by
Computershare Trust Company of Canada.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>A Registered Shareholder who wishes to </B><U><B>attend</B></U><B> the Meeting and vote on the resolutions
in person</B>, may simply register with the scrutineers before the Meeting begins.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>A Registered Shareholder who is </B><U><B>not able to attend </B></U><B>the Meeting in person but wishes
to vote on the resolutions, </B>may do the following:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B><I>(a)</I></B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>appoint one of the management proxyholders </I></B>named on the Instrument of Proxy, by leaving
the wording appointing a nominee as is (i.e. do not strike out the management proxyholders
shown and do not complete the blank space provided for the appointment of an alternate
proxyholder). Where no choice is specified by a Registered Shareholder with respect to a
resolution set out in the Instrument of Proxy, a management appointee acting as a
proxyholder will vote in favour of each matter identified on this Instrument of Proxy and
for the nominees of management for directors and auditor as identified in this Instrument of
Proxy;</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:2%; font-size: 10pt"><B>OR</B>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B><I>(b)</I></B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>appoint another proxyholder, who need not be a Registered Shareholder of the Company, to
vote according to the Registered Shareholder&#146;s instructions, by striking out the management
proxyholder names shown and inserting the name of the person you wish to represent you at
the Meeting in the space provided for an alternate proxyholder. If no choice is specified,
the proxyholder has discretionary authority to vote as the proxyholder sees fit.</I></B></TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>The securities represented by this Instrument of Proxy will be voted or withheld from voting
in accordance with the instructions of the Registered Shareholder on any poll </I></B>of a resolution
that may be called for and, if the Registered Shareholder specifies a choice with respect to
any matter to be acted upon, the securities will be voted accordingly. Further, the
securities will be voted by the appointed proxyholder with respect to any amendments or
variations of any of the resolutions set out on the Instrument of Proxy or matters which may
<B>properly</B> come before the Meeting as the proxyholder in its sole discretion sees fit.</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:2%; font-size: 10pt">If a Registered Shareholder has submitted an Instrument of Proxy, <B><I>the Registered Shareholder may
still attend the Meeting and may vote in person</I></B>. To do so, the Registered Shareholder must record
his/her attendance with the scrutineers before the commencement of the Meeting and revoke, in
writing, the prior votes.

<P>





<DIV style="width: 100%; border: 3px double #000000; padding: 11px;">


<P align="left" style="font-size: 10pt">To be represented at the Meeting, this proxy form must be received at the office of Computershare
Trust Company of Canada by mail or by fax no later than forty eight (48)&nbsp;hours (excluding
Saturdays, Sundays and holidays) prior to the time of the Meeting, or adjournment thereof or may be
accepted by the Chairman of the Meeting prior to the commencement of the Meeting. The mailing
address is:



<P align="center" style="font-size: 10pt"><B><I>Computershare Trust Company of Canada<BR>
Proxy Dept. 100 University Avenue 9th Floor<BR>
Toronto Ontario M5J 2Y1<BR>
Fax: Within North American: 1-866-249-7775&nbsp;&nbsp;&nbsp;Outside North America: (416)&nbsp;263-9524</I></B>


</DIV>

<P align="left" style="font-size: 10pt">


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>


</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>2
<FILENAME>g96113pg9611300.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 g96113pg9611300.gif
M1TE&.#EA<0!C`/<```````@("!`0$!@8&"$A(2DI*3$Q,3DY.4)"0DI*2E)2
M4EI:6F-C8VMK:W-S<WM[>X2$A(R,C)24E)R<G*6EI:VMK;6UM;V]O<;&QL[.
MSM;6UM[>WN?GY^_O[_?W]_______________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M_____________________RP`````<0!C```(_@`_"!Q(L*#!@P@3*ES(L*'#
MAQ`C2IQ(L:+%BQ@S:MS(L:/'CR!#BAQ)LJ3)DRA3JES)LJ7+ES!CRIQ)LZ;-
MFSASVIS`LZ?/GT"#3O@@0:A1HQ(J?+!0]*A3GQ$P`IA*M:K5JU@!?,C*M2N`
M`1\0>!UK%6,`LF@%;$5+ML"'!&S)FHWK52U=KV[AWN4Z=R]6NWZQY@V,M2]A
MJH`/4QVLF*IAQ8D;,VZL]>)9RI$53V[\^'#FPYL5=R;\F7#HPZ,#EPY\FG!J
MOZO]NCT`X("!#J(M4P80>R_8#0,[Z`W\>F]ONA4T'$2M&_/:QA`Z+*=[5@``
M#,6O&J#0];A7"A4R_E`%FZ#@`[8+"`Q8T.!#ANP`'C"]H/R#AP8$K%>-7*``
M6K'OV7>66P8H-9`$7$D@%E46?-">6AE=9M4&MGFPD%6)$2"0!1%@H$`!!U0P
MP8)4<1`!!QY`()`#Y240`$$#7*7A0!Y4-M`&\64TE04`(#"!!Q<XU`"&SS7D
M000:6"@07-)9H"%<`\5XE70#-?!B00ZHB!$#[]7'D'05_+75`QQ(!"8`'3@`
MP&`"367`!U).M55Y'W10)DA4,H3!!2HND)5=V$5T`0`)&+#`H6N^!4!45!E0
M%0);F:2D0F%.)<%S5]GE@$2.`K#I!P%00%Z/F`(@08$""?"`3+3M6.>?_FME
MP!0`#+RY4`1N#L3!B\-9)0$$`W@P`0%NQ33H5`=\P`&L/6*@WU1Y(N1!D@4-
MU2M5#6B`&P2.)BL3`S@"``%7JUTJ49#73C7!J@H0\$"0,S70:G>E4A4H1!>T
MMN8!YM84)[U9#141`$]F-<"G-7&G9EWU3K6`1`+H"Y9-W`$P),-\/>1GHNDR
MZ($"%AC8$H):\<;`6+'=NY`&BREZ57MP3K4K!9M.>I(%%&C(&UF].515:Q`V
MVBFT*BT;P`#A8MQ5M`?UJJ^G!$R`6UD#V4C2N&P=]W!"U^H+KT`0</G!!@7D
MN>8"-H.$@`)9;]4?5Q@$*!`&&/QX%=`7&H0!_J0B`3`TRL\A4+%5&!3[`=MR
MWNVR512L;#7)>$X@@`#S`CX6`0#<656]K37T0.,"86[U10AC?9=W4_'-``$G
MB_[SXE3)36EEE8Y>T;@&8@!;PUG=6_GKZ=[)$`0-3+"YCHZU>3KO7`W0X.#`
M7X7P0AQ<P,%P&2$NIP+,`WQ7>U1MS'%A$+F.$<E3O:A:]UY%&P$%:G7\=4/'
M6P1`!?XE/M6><:&>L4$DHAI#SE._BER%`SQ:%:BL(KY,L6]I"=%>51+@`;@(
M8'H$N5CR+"*AJ4"`1V[1'54"H")R/?!_!YF`!F%ED&4)L"(=E!-<#!!#-`DD
M?_LY8588$H$&7H4!_M,I($5JV(!C9>4LKD.,#J\R,8;\[2I>JMH+A\B6+$WE
M9`XDS@"]PC>"B.59\+$4<#Y0@-+X#RM;2XCQN&B0VKC0=A*IX<L.LL*IG/$J
MH$M($K,BNP\8[P+8:TY6"-!'&!&),%T,8E>N-!#_A&6#,.S*0FJ40^8<!'H0
M'(AU>I4=@26D@W<DGT'JV!6$36V*$Y%C_3#0`.$I;TV\62)6O`5`M@0@0$D3
M8BJ]<H$'Q*E!-Z0*@D+IJX/P*"[8$8\H(TF7!U0`BU-Y9LD"`\R!`#&`:-FC
M+N.XEPJX+@"Z(V95JND!!L1O-W",B"KC$BYQEJA.'Z#-T_82QK&(T)U$G1O<
M/.]2S[3(\BK`T2?L<L/!W>!3*\J<RC[ITD^>_;,L(E3H0"W)S,8<%%+1VTU#
M+8=("2TT+AM5&F4^RI:0>F^D$W6-("'ST*Z0%"TF-2$Z7RJ7BZ!SFI0!"S8I
M2A$+^/2G0`VJ4(<:I`H,]:A(_6F09)74I@959#J)JE2G2M6J6O6J6,VJ5K?*
6U:YZ]:M@#:M8QTK6LIKUK"0)"```.S\_
`
end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
