MAGIC LANTERN GROUP  INC
SUBSIDIARY GUARANTEE
<DOCUMENT>
<TYPE>EX-10.6
<SEQUENCE>7
<FILENAME>exhibit10_6.htm
<DESCRIPTION>SUBSIDIARY GUARANTEE
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<b>
<p ALIGN="right"><font face="Times New Roman">Exhibit 10.6</font></p>
<p ALIGN="center"><font face="Times New Roman">SUBSIDIARY GUARANTY</font></p>
</b>
<table CELLSPACING="0" BORDER="0" CELLPADDING="7" WIDTH="724">
  <tr>
    <td WIDTH="305" VALIGN="TOP">
    <p align="left"><font face="Times New Roman">New York, New York</font></td>
    <td WIDTH="391" VALIGN="TOP">
    <p ALIGN="right"><font face="Times New Roman">April 28, 2004</font></td>
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<p align="left"><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FOR VALUE RECEIVED, and in
consideration of note purchases from, loans made or to be made or credit
otherwise extended or to be extended by Laurus Master Fund, Ltd. (&quot;Laurus&quot;) to
or for the account of Magic Lantern Group, Inc. (&quot;Debtor&quot;) from time to time and
at any time and for other good and valuable consideration and to induce Laurus,
in its discretion, to purchase such notes, make such loans or extensions of
credit and to make or grant such renewals, extensions, releases of collateral or
relinquishments of legal rights as Laurus may deem advisable, each of the
undersigned (and each of them if more than one, the liability under this
Guaranty being joint and several) (jointly and severally referred to as
&quot;Guarantors &quot; or &quot;the undersigned&quot;) unconditionally guaranties to Laurus, its
successors, endorsees and assigns the prompt payment when due (whether by
acceleration or otherwise) of all present and future obligations and liabilities
of any and all kinds of Debtor to Laurus and of all instruments of any nature
evidencing or relating to any such obligations and liabilities upon which Debtor
or one or more parties and Debtor is or may become liable to Laurus, whether
incurred by Debtor as maker, endorser, drawer, acceptor, guarantors ,
accommodation party or otherwise, and whether due or to become due, secured or
unsecured, absolute or contingent, joint or several, and however or whenever
acquired by Laurus, whether arising under, out of, or in connection with (i)
that certain Securities Purchase Agreement dated as of the date hereof by and
between the Debtor and Laurus (the &quot;Securities Purchase Agreement&quot;) and (ii)
each Related Agreement referred to in the Securities Purchase Agreement,
including, without limitation that certain Master Security Agreement dated as of
the date hereof by and between the Debtor, each of the undersigned and Laurus
(the &quot;Security Agreement&quot;) and (iii) each Ancillary Agreement referred to in the
Security Agreement (the Securities Purchase Agreement and each Related
Agreement, the Security Agreement and each Ancillary Agreement, as each may be
amended, modified, restated or supplemented from time to time, are collectively
referred to herein as the &quot;Documents&quot;), or any documents, instruments or
agreements relating to or executed in connection with the Documents or any
documents, instruments or agreements referred to therein or otherwise, or any
other indebtedness, obligations or liabilities of the Debtor to Laurus, whether
now existing or hereafter arising, direct or indirect, liquidated or
unliquidated, absolute or contingent, due or not due and whether under, pursuant
to or evidenced by a note, agreement, guaranty, instrument or otherwise (all of
which are herein collectively referred to as the &quot;Obligations&quot;), and
irrespective of the genuineness, validity, regularity or enforceability of such
Obligations, or of any instrument evidencing any of the Obligations or of any
collateral therefor or of the existence or extent of such collateral, and
irrespective of the allowability, allowance or disallowance of any or all of the
Obligations in any case commenced by or against Debtor under Title 11, United
States Code, the Bankruptcy and Insolvency Act (Canada), the Companies'
Creditors Arrangement Act (Canada) (or any similar statute), including, without
limitation, obligations or indebtedness of Debtor for post-petition interest,
fees, costs and charges that would have accrued or been added to the Obligations
but for the commencement of such case whether or not such amounts are allowed or
allowable in whole or in part in any such case. Terms not otherwise defined
herein shall have the meaning assigned such terms in the Securities Purchase
Agreement and the Security Agreement, as applicable. In furtherance of the
foregoing, the undersigned hereby agrees as follows:</font></p>
<p align="left"><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1. <u>No Impairment</u>. Laurus may
at any time and from time to time, either before or after the maturity thereof,
without notice to or further consent of the undersigned, extend the time of
payment of, exchange or surrender any collateral for, renew or extend any of the
Obligations or increase or decrease the interest rate thereon, or any other
agreement with Debtor or with any other party to or person liable on any of the
Obligations, or interested therein, for the extension, renewal, payment,
compromise, discharge or release thereof, in whole or in part, or for any
modification of the terms thereof or of any agreement between Laurus and Debtor
or any such other party or person, or make any election of rights Laurus may
deem desirable under the United States Bankruptcy Code, as amended the
Bankruptcy and Insolvency Act (Canada), as amended, the Companies' Creditors
Arrangement Act (Canada), as amended, or any other similar American or Canadian
federal, state or or provincial bankruptcy, reorganization, moratorium or
insolvency law relating to or affecting the enforcement of creditors' rights
generally (any of the foregoing, an &quot;Insolvency Law&quot;) without in any way
impairing or affecting this Guaranty. This instrument shall be effective
regardless of the subsequent incorporation, merger or consolidation of Debtor,
or any change in the composition, nature, personnel or location of Debtor and
shall extend to any successor entity to Debtor, including a debtor in possession
or the like under any Insolvency Law.</font></p>
<p align="left"><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2. <u>Guaranty Absolute</u>.
Subject to Section 6(c), each of the undersigned jointly and severally
guarantees that the Obligations will be paid strictly in accordance with the
terms of the Documents and/or any other document, instrument or agreement
creating or evidencing the Obligations, regardless of any law, regulation or
order now or hereafter in effect in any jurisdiction affecting any of such terms
or the rights of Debtor with respect thereto. Guarantors hereby knowingly accept
the full range of risk encompassed within a contract of &quot;continuing guaranty&quot;
which risk includes the possibility that Debtor will contract additional
indebtedness for which Guarantors may be liable hereunder after Debtor's
financial condition or ability to pay its lawful debts when they fall due has
deteriorated, whether or not Debtor has properly authorized incurring such
additional indebtedness. The undersigned acknowledge that (i) no oral
representations, including any representations to extend credit or provide other
financial accommodations to Debtor, have been made by Laurus to induce the
undersigned to enter into this Guaranty and (ii) any extension of credit to the
Debtor shall be governed solely by the provisions of the Documents. The
liability of each of the undersigned under this Guaranty shall be absolute and
unconditional, in accordance with its terms, and shall remain in full force and
effect without regard to, and shall not be released, suspended, discharged,
terminated or otherwise affected by, any circumstance or occurrence whatsoever,
including, without limitation: (a) any waiver, indulgence, renewal, extension,
amendment or modification of or addition, consent or supplement to or deletion
from or any other action or inaction under or in respect of the Documents or any
other instruments or agreements relating to the Obligations or any assignment or
transfer of any thereof, (b) any lack of validity or enforceability of any
Document or other documents, instruments or agreements relating to the
Obligations or any assignment or transfer of any thereof, (c) any furnishing of
any additional security to Laurus or its assignees or any acceptance thereof or
any release of any security by Laurus or its assignees, (d) any limitation on
any party's liability or obligation under the Documents or any other documents,
instruments or agreements relating to the Obligations or any assignment or
transfer of any thereof or any invalidity or unenforceability, in whole or in
part, of any such document, instrument or agreement or any term thereof, (e) any
bankruptcy, insolvency, reorganization, composition, adjustment, dissolution,
liquidation or other like proceeding relating to Debtor, or any action taken
with respect to this Guaranty by any trustee or receiver, or by any court, in
any such proceeding, whether or not the undersigned shall have notice or
knowledge of any of the  </font></p>
<p align="center"><font face="Times New Roman">2</font></p>
<p align="left"><font face="Times New Roman">foregoing, (f) any exchange, release or nonperfection of
any collateral, or any release, or amendment or waiver of or consent to
departure from any guaranty or security, for all or any of the Obligations or
(g) any other circumstance which might otherwise constitute a defense available
to, or a discharge of, the undersigned. Any amounts due from the undersigned to
Laurus shall bear interest until such amounts are paid in full at the highest
rate permitted by applicable law then applicable to the Obligations. Obligations
include post-petition interest whether or not allowed or allowable.</font></p>
<p align="left"><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3. <u>Payment</u>. </font></p>
<font face="Times New Roman">
<dir><dir>(a) Payment shall be made to Laurus
at the office of Laurus from time to time on demand as Obligations hereunder
become due. Each of the Guarantors shall make all payments to Laurus on the
Obligations without setoff, counterclaim, restrictions or conditions of any kind
and free and clear of, and without deduction or withholdings for or on account
of, (i) any present or future duties, taxes, levies, imposts, fees, deductions,
assessments, withholdings or other charges of any nature whatsoever or interest,
penalties or other amounts in respect thereof imposed or levied by or on behalf
of the Canadian Government or of any province or territory thereof or any
authority or agency therein or thereof having power to tax (collectively,
&quot;Taxes&quot;); or (ii) any present or future stamp or documentary taxes or any other
excise or property taxes, charges or similar levies which arise from any payment
made hereunder or from the execution, delivery or registration of, or otherwise
with respect to, this Guaranty or any of the other Documents (collectively,
&quot;Other Taxes&quot;) unless such deduction or withholding is required by law or the
administrative practice of any taxation authority.</font></p>
<p align="left"><font face="Times New Roman">(b) If any of the Guarantors shall
be required by law to deduct or withhold in respect of any Taxes or Other Taxes
from or in respect of any sum payable hereunder to Laurus, then: </font></p>
<p align="left"><font face="Times New Roman">
<dir>(i) the sum payable shall be
increased as necessary so that after making all required deductions and
withholdings (including deductions and withholdings applicable to additional
sums payable under this Section) Laurus receives an amount equal to the sum it
would have received had no such deductions or withholdings been made;</font></p>
<p align="left"><font face="Times New Roman">(ii) each of the Guarantors shall
make such deductions and withholdings;</font></p>
<p align="left"><font face="Times New Roman">(iii) each of the Guarantors shall
pay the full amount deducted or withheld to the relevant taxing authority or
other authority in accordance with applicable law; and</font></p>
<p align="left"><font face="Times New Roman">(iv) to the extent not paid to
Laurus pursuant to clause (i) above, Guarantors shall also pay to Laurus, at the
time interest is paid, all additional amounts which Laurus specifies as
necessary to preserve the after-tax yield Laurus would have received if such
Taxes or Other Taxes had not been imposed. </font>
<p align="center"><font face="Times New Roman">3</font></dir>
<p align="left"><font face="Times New Roman">(c)&nbsp; Within thirty (30) days after the
date of any payment by any of the Guarantors of Taxes or Other Taxes, upon
Laurus' request, such guarantor shall furnish to Laurus the original or a
certified copy of a receipt evidencing payment thereof, or other evidence of
payment reasonably satisfactory to Laurus.</font></p>
<p align="left"><font face="Times New Roman">(d)&nbsp; <a NAME="_Ref501856685">Each of the
Guarantors will indemnify Laurus for the full amount of Taxes and Other Taxes
paid by Laurus. If Laurus receives a refund in respect of any Taxes or Other
Taxes for which Laurus has received payment from any of the Guarantors
hereunder, so long as no Event of Default, or act, condition or event which with
notice or passage of time or both would constitute an Event of Default, shall
exist or have occurred and be continuing, Laurus shall hold for the account of
such Guarantors, as applicable the amount of such refund plus any interest
received (but only to the extent of indemnity payments made, or additional
amounts paid, by any of the Guarantors under this Section with respect to the
Taxes or Other Taxes giving rise to such refund). </a>If Taxes or Other Taxes
were not correctly or legally asserted, Laurus shall, upon request of such
Guarantor, and at its expense, provide such documents to such Guarantor in form
and substance satisfactory to Laurus, as such Guarantor may reasonably request,
to enable the undersigned to contest such Taxes or Other Taxes pursuant to
appropriate proceedings then available to the undersigned (so long as providing
such documents shall not, in good faith determination of Laurus, have a
reasonable likelihood of resulting in any liability of Laurus). The obligations
of the undersigned under this Section shall survive the termination or
revocation of this Guaranty and the Documents and the payment of all amounts
payable under this Guaranty and the Documents.</font></p>
  <font face="Times New Roman">
<u>
</dir></dir></u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.&nbsp;
<u>
Intentionally Omitted</u>.</font></p>
<p align="left"><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
5.&nbsp;
<u>
Waivers</u>.</font></p>
<font face="Times New Roman"><dir><dir>(a)&nbsp; This Guaranty is a guaranty of
payment and not of collection. Laurus shall be under no obligation to institute
suit, exercise rights or remedies or take any other action against Debtor or any
other person liable with respect to any of the Obligations or resort to any
collateral security held by it to secure any of the Obligations as a condition
precedent to the undersigned being obligated to perform as agreed herein and
each of the Guarantors hereby waives any and all rights which it may have by
statute or otherwise which would require Laurus to do any of the foregoing. Each
of the Guarantors further consents and agrees that Laurus shall be under no
obligation to marshal any assets in favor of Guarantors, or against or in
payment of any or all of the Obligations. The undersigned hereby waives all
suretyship defenses and any rights to interpose any defense, counterclaim or
offset of any nature and description which the undersigned may have or which may
exist between and among Laurus, Debtor and/or the undersigned with respect to
the undersigned's obligations under this Guaranty, or which Debtor may assert on
the underlying debt, including but not limited to failure of consideration,
breach of warranty, fraud, payment (other than cash payment in full of the
Obligations), statute of frauds, bankruptcy, infancy, statute of limitations,
accord and satisfaction, and usury.
  <p align="center">4</font></p>
<p align="left"><font face="Times New Roman">(b)&nbsp; Each of the undersigned further
waives (i) notice of the acceptance of this Guaranty, of the making of any such
loans or extensions of credit, and of all notices and demands of any kind to
which the undersigned may be entitled, including, without limitation, notice of
adverse change in Debtor's financial condition or of any other fact which might
materially increase the risk of the undersigned and (ii) presentment to or
demand of payment from anyone whomsoever liable upon any of the Obligations,
protest, notices of presentment, non-payment or protest and notice of any sale
of collateral security or any default of any sort.</font></p>
<p align="left"><font face="Times New Roman">(c)&nbsp; Notwithstanding any payment or
payments made by the undersigned hereunder, or any setoff or application of
funds of the undersigned by Laurus, the undersigned shall not be entitled to be
subrogated to any of the rights of Laurus against Debtor or against any
collateral or guarantee or right of offset held by Laurus for the payment of the
Obligations, nor shall the undersigned seek or be entitled to seek any
contribution or reimbursement from Debtor in respect of payments made by the
undersigned hereunder, until all amounts owing to Laurus by Debtor on account of
the Obligations are paid in full and Laurus' obligation to extend credit
pursuant to the Documents have been terminated. If, notwithstanding the
foregoing, any amount shall be paid to the undersigned on account of such
subrogation rights at any time when all of the Obligations shall not have been
paid in full and Laurus' obligation to extend credit pursuant to the Documents
shall not have been terminated, such amount shall be held by the undersigned in
trust for Laurus, segregated from other funds of the undersigned, and shall
forthwith upon, and in any event within two (2) business days of, receipt by the
undersigned, be turned over to Laurus in the exact form received by the
undersigned (duly endorsed by the undersigned to Laurus, if required), to be
applied against the Obligations, whether matured or unmatured, in such order as
Laurus may determine, subject to the provisions of the Documents. Any and all
present and future debts and obligations of Debtor to any of the undersigned are
hereby waived and postponed in favor of, and subordinated to the full payment
and performance of, all present and future debts and Obligations of Debtor to
Laurus, provided, however, that intercompany loans among the Guarantors and the
Debtor in the ordinary course of business and in amounts consistent with past
practice shall be permitted hereunder.</dir></dir></font>
<p align="left"><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
6.&nbsp;
<u>
Security</u>.
All sums at any time to the credit of the undersigned and any property of the
undersigned in Laurus' possession or in the possession of any bank, financial
institution or other entity that directly or indirectly, through one or more
intermediaries, controls or is controlled by, or is under common control with,
Laurus (each such entity, an &quot;Affiliate&quot;) shall be deemed held by Laurus or such
Affiliate, as the case may be, as security for any and all of the undersigned's
obligations to Laurus and to any Affiliate of Laurus, no matter how or when
arising and whether under this or any other instrument, agreement or otherwise. </font></p>
<p align="left"><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
7.&nbsp;
<u>
Representations and Warranties</u>.
Each of the undersigned respectively, hereby jointly and severally represents
and warrants (all of which representations and warranties shall survive until
all Obligations are indefeasibly satisfied in full and the Documents have been
irrevocably terminated), that:</font></p>
<font face="Times New Roman"><dir><dir>(a)&nbsp;
<u>
  Corporate Status</u>. It is a corporation, partnership or limited liability
  company, as the case may be, duly organized, validly existing and in good
  standing under the laws of its jurisdiction of organization indicated on the
  signature page hereof and has </font>
  <p align="center"><font face="Times New Roman">5</font></p>
  <p><font face="Times New Roman">full power, authority and legal right to own
  its property and assets and to transact the business in which it is engaged.</font></p>
<p align="left"><font face="Times New Roman">(b)&nbsp;
<u>
Authority and Execution</u>.
It has full power, authority and legal right to execute and deliver, and to
perform its obligations under, this Guaranty and has taken all necessary
corporate, partnership or limited liability company, as the case may be, action
to authorize the execution, delivery and performance of this Guaranty.</font></p>
<p align="left"><font face="Times New Roman">(c)&nbsp;
<u>
Legal, Valid and Binding Character</u>.
This Guaranty constitutes its legal, valid and binding obligation enforceable in
accordance with its terms, except as enforceability may be limited by any
applicable Insolvency Law or other laws of general application affecting the
enforcement of creditor's rights and general principles of equity that restrict
the availability of equitable or legal remedies. </font></p>
<p align="left"><font face="Times New Roman">(d)&nbsp;
<u>
Violations</u>.
The execution, delivery and performance of this Guaranty will not violate any
requirement of law applicable to it or any contract, agreement or instrument to
it is a party or by which it or any of its property is bound or result in the
creation or imposition of any mortgage, lien or other encumbrance other than to
Laurus on any of its property or assets pursuant to the provisions of any of the
foregoing, which, in any of the foregoing cases, could reasonably be expected to
have, either individually or in the aggregate, a Material Adverse Effect.</font></p>
<p align="left"><font face="Times New Roman">(e)&nbsp;
<u>
Consents or Approvals</u>.
No consent of any other person or entity (including, without limitation, any
creditor of the undersigned) and no consent, license, permit, approval or
authorization of, exemption by, notice or report to, or registration, filing or
declaration with, any governmental authority is required in connection with the
execution, delivery, performance, validity or enforceability of this Guaranty by
it, except to the extent that the failure to obtain any of the foregoing could
not reasonably be expected to have, either individually or in the aggregate, a
Material Adverse Effect.</font></p>
<p align="left"><font face="Times New Roman">(f)&nbsp;
<u>
Litigation</u>.
No litigation, arbitration, investigation or administrative proceeding of or
before any court, tribunal, arbitrator or governmental authority, bureau or
agency is currently pending or, to the best of its knowledge, threatened (i)
with respect to this Guaranty or any of the transactions contemplated by this
Guaranty or (ii) against or affecting it, or any of its property or assets,
which, in each of the foregoing cases, if adversely determined, could reasonably
be expected to have a Material Adverse Effect.</font></p>
<p align="left"><font face="Times New Roman">(g)&nbsp;
<u>
Financial Benefit</u>.
It has derived or expects to derive a financial or other advantage from each and
every loan, advance or extension of credit made under the Documents or other
Obligation incurred by the Debtor to Laurus.</font></p>
  </dir></dir><font face="Times New Roman">
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8.&nbsp;
<u>
Acceleration</u>.</font></p>
<font face="Times New Roman"><dir><dir>(a)&nbsp; If any breach of any covenant or
condition or other event of default shall occur and be continuing under any
agreement made by Debtor or any of the undersigned to Laurus, or either Debtor
or any of the undersigned should at any time become insolvent, an &quot;insolvent
person&quot; (as such term is defined in the Bankruptcy and Insolvency Act (Canada)
or make a general assignment, or if a proceeding in or under any Insolvency Law
shall be filed or commenced by, or in respect of, any of the undersigned, or if
a notice of any lien, levy, or assessment is filed of record with respect
  <p align="center">6</p>
  <p>to any
assets of any of the undersigned by the United States of America or any
department, agency, or instrumentality thereof, or Canada or any department,
agency or instrumentality thereof, or if any taxes or debts owing at any time or
times hereafter to any one of them becomes a lien or encumbrance upon any assets
of the undersigned in Laurus' possession, or otherwise, any and all Obligations
shall for purposes hereof, at Laurus' option, be deemed due and payable without
notice notwithstanding that any such Obligation is not then due and payable by
Debtor.</font></p>
  </p>
<p align="left"><font face="Times New Roman">(b)&nbsp; Each of the undersigned will
promptly notify Laurus of any default by such undersigned in its respective
performance or observance of any term or condition of any agreement to which the
undersigned is a party involving a principal sum of more than USD$2,000 if the
effect of such default is to cause, or permit the holder of any obligation under
such agreement to cause, such obligation to become due prior to its stated
maturity and, if such an event occurs, Laurus shall have the right to accelerate
such undersigned's obligations hereunder.</font></p>
  <font face="Times New Roman"></dir></dir>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
9.&nbsp;
<u>
Computation of Interest</u>.
The Guarantors acknowledge that certain of the rates of interest applicable to
the Obligations may be computed on the basis of a year of 360 days or 365 days,
as the case may be and paid for the actual number of days elapsed. For purposes
of the Interest Act (Canada), whenever any interest is calculated using a rate
based on a year of 360 days or 365 days, as the case may be, such rate
determined pursuant to such calculation, when expressed as an annual rate is
equivalent to (i) the applicable rate based on a year of 360 days or 365 days,
as the case may be, (ii) multiplied by the actual number of days in the calendar
year in which the period for such interest is payable (or compounded) ends, and
(iii) divided by 360 or 365, as the case may be.</font></p>
<p align="left"><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
10.&nbsp;
<u>
Currency of Payment</u>.
All payments under this Guaranty shall be made in US Dollars. To the fullest
extent permitted by applicable law, the obligation of the Guarantors in respect
of any amount due under or in respect of this Guaranty, notwithstanding any
payment in any currency other than US Dollars, whether as a result of (i) any
judgment or order or the enforcement thereof, (ii) the realization on any
security, (iii) the liquidation of the Guarantors, (iv) any voluntary payment by
the Guarantors or (v) any other reason, shall be discharged only to the extent
of the amount in US Dollars that Laurus entitled to receive such payment may, in
accordance with normal banking procedures, purchase in the foreign exchange
markets in New York, New York with the sum paid in such other currency (after
any premium and costs of exchange) on the business day immediately following the
day on which Laurus receives such payment and if the amount in US Dollars that
may be so purchased for any reason is less than the amount originally due, the
Guarantors shall indemnify and save harmless Laurus from and against all loss or
damage arising out of or as a result of such deficiency. This indemnity shall
constitute an obligation separate and independent from the other obligations
contained in this Guaranty, shall give rise to a separate and independent cause
of action, shall apply irrespective of any indulgence granted by Laurus from
time to time and shall continue in full force and effect notwithstanding any
judgment or order for a liquidated sum in respect of an amount due under this
Guaranty; the Securities Purchase Agreement or any judgment or order.</font></p>
<p align="left"><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
11.&nbsp;
<u>
Payments from Guarantors</u>.
Laurus, with or without notice to the undersigned, shall apply on account of the
Obligations any payment from the undersigned or any other guarantors, or amounts
realized from any security for the Obligations.</font></p>
<p align="center"><font face="Times New Roman">7</font></p>
<p align="left"><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
12.&nbsp;
<u>
Costs</u>.
The undersigned shall pay on demand, all costs, fees and expenses (including
expenses for legal services of every kind) relating or incidental to the
enforcement or protection of the rights of Laurus hereunder or under any of the
Obligations.</font></p>
<p align="left"><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
13.&nbsp;
<u>
No Termination</u>.
This is a continuing irrevocable guaranty and shall remain in full force and
effect and be binding upon the undersigned, and each of the undersigned's
successors and assigns, until all of the Obligations have been paid in full and
Laurus' obligation to extend credit pursuant to the Documents has been
irrevocably terminated. If any of the present or future Obligations are
guarantied by persons, partnerships or corporations in addition to the
undersigned, the death, release or discharge in whole or in part or the
bankruptcy, merger, consolidation, incorporation, liquidation or dissolution of
one or more of them shall not discharge or affect the liabilities of any
undersigned under this Guaranty.</font></p>
<p align="left"><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
14.&nbsp;
<u>
Recapture</u>.
Anything in this Guaranty to the contrary notwithstanding, if Laurus receives
any payment or payments on account of the liabilities guaranteed hereby, which
payment or payments or any part thereof are subsequently invalidated, declared
to be fraudulent or preferential, set aside and/or required to be repaid to a
trustee, receiver, or any other party under any Insolvency Law, common law or
equitable doctrine, then to the extent of any sum not finally retained by Laurus,
the undersigned's obligations to Laurus shall be reinstated and this Guaranty
shall remain in full force and effect (or be reinstated) until payment shall
have been made to Laurus, which payment shall be due on demand.</font></p>
<p align="left"><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
15.&nbsp;
<u>
Books and Records</u>.
The books and records of Laurus showing the account between Laurus and Debtor
shall be admissible in evidence in any action or proceeding, shall be binding
upon the undersigned for the purpose of establishing the items therein set forth
and shall constitute prima facie proof thereof.</font></p>
<p align="left"><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
16.&nbsp;
<u>
No Waiver</u>.
No failure on the part of Laurus to exercise, and no delay in exercising, any
right, remedy or power hereunder shall operate as a waiver thereof, nor shall
any single or partial exercise by Laurus of any right, remedy or power hereunder
preclude any other or future exercise of any other legal right, remedy or power.
Each and every right, remedy and power hereby granted to Laurus or allowed it by
law or other agreement shall be cumulative and not exclusive of any other, and
may be exercised by Laurus at any time and from time to time.</font></p>
<p align="left"><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
17.&nbsp;
<u>
Waiver of Jury Trial</u>.
EACH OF THE UNDERSIGNED DOES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY
WAIVE THE RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED ON OR WITH
RESPECT TO THIS GUARANTY OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY OR
RELATING OR INCIDENTAL HERETO. THE UNDERSIGNED DOES HEREBY CERTIFY THAT NO
REPRESENTATIVE OR AGENT OF LAURUS HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT
LAURUS WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THIS WAIVER OF
RIGHT TO JURY TRIAL PROVISION. </font></p>
<p align="left"><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
18.&nbsp;
<u>
Governing Law; Jurisdiction;
Amendments</u>. THIS INSTRUMENT CANNOT BE
CHANGED OR TERMINATED ORALLY, AND SHALL BE GOVERNED, CONSTRUED AND INTERPRETED
AS TO VALIDITY, ENFORCEMENT AND IN ALL OTHER RESPECTS IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK WITHOUT HAVING EFFECT TO PRINCIPLES OF CONFLICTS
OF LAWS. EACH OF THE UNDERSIGNED EXPRESSLY CONSENTS TO THE JURISDICTION AND
VENUE OF </font></p>
<p align="center"><font face="Times New Roman">8</font></p>
<p align="left"><font face="Times New Roman">THE SUPREME COURT OF THE STATE OF NEW YORK, COUNTY OF NEW YORK, AND OF
THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK AND THE
ONTARIO SUPERIOR COURT OF JUSTICE, IN EACH CASE, WHICHEVER LAURUS IN ITS SOLE
DISCRETION MAY ELECT, FOR ALL PURPOSES IN CONNECTION HEREWITH. ANY JUDICIAL
PROCEEDING BY THE UNDERSIGNED AGAINST LAURUS INVOLVING, DIRECTLY OR INDIRECTLY
ANY MATTER OR CLAIM IN ANY WAY ARISING OUT OF, RELATED TO OR CONNECTED HEREWITH
SHALL BE BROUGHT ONLY IN THE SUPREME COURT OF THE STATE OF NEW YORK, COUNTY OF
NEW YORK OR THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW
YORK OR THE ONTARIO SUPERIOR COURT OF JUSTICE, IN EACH CASE, WHICHEVER LAURUS IN
ITS SOLE DISCRETION MAY ELECT. THE UNDERSIGNED FURTHER CONSENTS THAT ANY
SUMMONS, SUBPOENA OR OTHER PROCESS OR PAPERS (INCLUDING, WITHOUT LIMITATION, ANY
NOTICE OR MOTION OR OTHER APPLICATION TO ANY OF THE AFOREMENTIONED COURTS OR A
JUDGE THEREOF) OR ANY NOTICE IN CONNECTION WITH ANY PROCEEDINGS HEREUNDER, MAY
BE SERVED INSIDE OR OUTSIDE OF THE STATE OF NEW YORK OR THE SOUTHERN DISTRICT OF
NEW YORK OR THE PROVINCE OF ONTARIO, BY REGISTERED OR CERTIFIED MAIL, RETURN
RECEIPT REQUESTED (AS PERMITTED BY APPLICABLE LAW), OR BY PERSONAL SERVICE
PROVIDED A REASONABLE TIME FOR APPEARANCE IS PERMITTED, OR IN SUCH OTHER MANNER
AS MAY BE PERMISSIBLE UNDER THE RULES OF SAID COURTS. EACH OF THE UNDERSIGNED
WAIVES ANY OBJECTION TO JURISDICTION AND VENUE OF ANY ACTION INSTITUTED HEREON
AND SHALL NOT ASSERT ANY DEFENSE BASED ON LACK OF JURISDICTION OR VENUE OR BASED
UPON FORUM <i>NON CONVENIENS</i>.</font></p>
<p align="left"><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
19.&nbsp;
<u>
Severability</u>.
To the extent permitted by applicable law, any provision of this Guaranty which
is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.</font></p>
<p align="left"><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
20.&nbsp;
<u>
Amendments, Waivers</u>.
No amendment or waiver of any provision of this Guaranty nor consent to any
departure by the undersigned therefrom shall in any event be effective unless
the same shall be in writing executed by each of the undersigned directly
affected by such amendment and/or waiver and Laurus.</font></p>
<p align="left"><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
21.&nbsp;
<u>
Notice</u>.
All notices, requests and demands to or upon the undersigned, shall be in
writing and shall be deemed to have been duly given or made (a) when delivered,
if by hand, (b) five (5) days after being sent, postage prepaid, if by
registered or certified mail, (c) when confirmed electronically, if by
facsimile, or (d) when delivered, if by a recognized overnight delivery service
in each event, to the numbers and/or address set forth beneath the signature of
the undersigned.</font></p>
<p align="left"><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
22.&nbsp;
<u>
Successors</u>.
Laurus may, from time to time, without notice to the undersigned, sell, assign,
transfer or otherwise dispose of all or any part of the Obligations and/or
rights under this Guaranty. Without limiting the generality of the foregoing,
Laurus may assign, or grant participations to, one or more banks, financial
institutions or other entities all or any part of any of the Obligations. In
each such event, Laurus, its Affiliates and each and every immediate and
successive purchaser, assignee, transferee or holder of all or any part of the
Obligations shall </font></p>
<p align="center"><font face="Times New Roman">9</font></p>
<p align="left"><font face="Times New Roman">have the right to enforce this Guaranty, by legal action or
otherwise, for its own benefit as fully as if such purchaser, assignee,
transferee or holder were herein by name specifically given such right. Laurus
shall have an unimpaired right to enforce this Guaranty for its benefit with
respect to that portion of the Obligations which Laurus has not disposed of,
sold, assigned, or otherwise transferred.</font></p>
<p align="left"><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
23.&nbsp;
<u>
Release</u>.
Nothing except cash payment in full of the Obligations shall release any of the
undersigned from liability under this Guaranty.</font></p>
<p align="center"><b><font face="Times New Roman">[Remainder of this page is blank.<br>
Signature page immediately follows] </font></b></p>
<p align="center"><font face="Times New Roman">10</font></p>
<p align="left"><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; IN WITNESS WHEREOF, this Guaranty
has been executed by the undersigned this 28th day of April, 2004.</font></p>
<table BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="644" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="48%" VALIGN="TOP">
    <p align="left" style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
    <td WIDTH="52%" VALIGN="TOP" COLSPAN="4"><b>
    <p align="left" style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman">TUTORBUDDY INC.</font></b></td>
  </tr>
  <tr>
    <td WIDTH="48%" VALIGN="TOP">
    <p align="left" style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
    <td WIDTH="52%" VALIGN="TOP" COLSPAN="4">
    <p align="left" style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="48%" VALIGN="TOP">
    <p align="left" style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
    <td WIDTH="11%" VALIGN="TOP">
    <p align="left" style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman">By:</font></td>
    <td WIDTH="41%" VALIGN="TOP" COLSPAN="3">
    <div style="border-bottom-style: solid; border-bottom-width: 1">
    <p align="left" style="margin-top: 0; margin-bottom: 0">&nbsp;</div>
    </td>
  </tr>
  <tr>
    <td WIDTH="48%" VALIGN="TOP">
    <p align="left" style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
    <td WIDTH="11%" VALIGN="TOP">
    <p align="left" style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman">Name:</font></td>
    <td WIDTH="41%" VALIGN="TOP" COLSPAN="3">
    <div style="border-bottom-style: solid; border-bottom-width: 1">
    <p align="left" style="margin-top: 0; margin-bottom: 0">&nbsp;</div>
    </td>
  </tr>
  <tr>
    <td WIDTH="48%" VALIGN="TOP">
    <p align="left" style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
    <td WIDTH="11%" VALIGN="TOP">
    <p align="left" style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman">Title:</font></td>
    <td WIDTH="41%" VALIGN="TOP" COLSPAN="3">
    <div style="border-bottom-style: solid; border-bottom-width: 1">
    <p align="left" style="margin-top: 0; margin-bottom: 0">&nbsp;</div>
    </td>
  </tr>
  <tr>
    <td WIDTH="48%" VALIGN="TOP">
    <p align="left" style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
    <td WIDTH="52%" VALIGN="TOP" COLSPAN="4">
    <p align="left" style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="48%" VALIGN="TOP">
    <p align="left" style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
    <td WIDTH="16%" VALIGN="TOP" COLSPAN="2">
    <p align="left" style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman">Address:</font></td>
    <td WIDTH="35%" VALIGN="TOP" COLSPAN="2">
    <p align="left" style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="48%" VALIGN="TOP">
    <p align="left" style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
    <td WIDTH="16%" VALIGN="TOP" COLSPAN="2">
    <p align="left" style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
    <td WIDTH="35%" VALIGN="TOP" COLSPAN="2">
    <p align="left" style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="48%" VALIGN="TOP">
    <p align="left" style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
    <td WIDTH="16%" VALIGN="TOP" COLSPAN="2">
    <p align="left" style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman">Telephone:</font></td>
    <td WIDTH="35%" VALIGN="TOP" COLSPAN="2">
    <p align="left" style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="48%" VALIGN="TOP">
    <p align="left" style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
    <td WIDTH="16%" VALIGN="TOP" COLSPAN="2">
    <p align="left" style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman">Facsimile:</font></td>
    <td WIDTH="35%" VALIGN="TOP" COLSPAN="2">
    <p align="left" style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="48%" VALIGN="TOP">
    <p align="left" style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
    <td WIDTH="27%" VALIGN="TOP" COLSPAN="3">
    <p align="left" style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman">Jurisdiction of Incorporation:</font></td>
    <td WIDTH="24%" VALIGN="TOP">
    <p align="left" style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="48%" VALIGN="TOP">
    <p align="left">&nbsp;</td>
    <td WIDTH="52%" VALIGN="TOP" COLSPAN="4">
    <p align="left">&nbsp;</td>
  </tr>
</table>
<table BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="644" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="48%" VALIGN="TOP">
    <p align="left">&nbsp;</td>
    <td WIDTH="52%" VALIGN="TOP" COLSPAN="4"><b>
    <p align="left"><font face="Times New Roman">SONOPTIC TECHNOLOGIES INC.</font></b></td>
  </tr>
  <tr>
    <td WIDTH="48%" VALIGN="TOP">
    <p align="left">&nbsp;</td>
    <td WIDTH="52%" VALIGN="TOP" COLSPAN="4">
    <p align="left">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="48%" VALIGN="TOP">
    <p align="left">&nbsp;</td>
    <td WIDTH="11%" VALIGN="TOP">
    <p align="left"><font face="Times New Roman">By:</font></td>
    <td WIDTH="41%" VALIGN="TOP" COLSPAN="3" style="border-bottom-style: solid; border-bottom-width: 1">
    <p align="left">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="48%" VALIGN="TOP">
    <p align="left">&nbsp;</td>
    <td WIDTH="11%" VALIGN="TOP">
    <p align="left"><font face="Times New Roman">Name:</font></td>
    <td WIDTH="41%" VALIGN="TOP" COLSPAN="3" style="border-bottom-style: solid; border-bottom-width: 1">
    <p align="left">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="48%" VALIGN="TOP">
    <p align="left">&nbsp;</td>
    <td WIDTH="11%" VALIGN="TOP">
    <p align="left"><font face="Times New Roman">Title:</font></td>
    <td WIDTH="41%" VALIGN="TOP" COLSPAN="3" style="border-bottom-style: solid; border-bottom-width: 1">
    <p align="left">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="48%" VALIGN="TOP">
    <p align="left">&nbsp;</td>
    <td WIDTH="52%" VALIGN="TOP" COLSPAN="4">
    <p align="left">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="48%" VALIGN="TOP">
    <p align="left">&nbsp;</td>
    <td WIDTH="16%" VALIGN="TOP" COLSPAN="2">
    <p align="left"><font face="Times New Roman">Address:</font></td>
    <td WIDTH="35%" VALIGN="TOP" COLSPAN="2">
    <p align="left">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="48%" VALIGN="TOP">
    <p align="left">&nbsp;</td>
    <td WIDTH="16%" VALIGN="TOP" COLSPAN="2">
    <p align="left">&nbsp;</td>
    <td WIDTH="35%" VALIGN="TOP" COLSPAN="2">
    <p align="left">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="48%" VALIGN="TOP">
    <p align="left">&nbsp;</td>
    <td WIDTH="16%" VALIGN="TOP" COLSPAN="2">
    <p align="left"><font face="Times New Roman">Telephone:</font></td>
    <td WIDTH="35%" VALIGN="TOP" COLSPAN="2">
    <p align="left">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="48%" VALIGN="TOP">
    <p align="left">&nbsp;</td>
    <td WIDTH="16%" VALIGN="TOP" COLSPAN="2">
    <p align="left"><font face="Times New Roman">Facsimile:</font></td>
    <td WIDTH="35%" VALIGN="TOP" COLSPAN="2">
    <p align="left">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="48%" VALIGN="TOP">
    <p align="left">&nbsp;</td>
    <td WIDTH="27%" VALIGN="TOP" COLSPAN="3">
    <p align="left"><font face="Times New Roman">Jurisdiction of Incorporation:</font></td>
    <td WIDTH="24%" VALIGN="TOP">
    <p align="left">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="48%" VALIGN="TOP">
    <p align="left">&nbsp;</td>
    <td WIDTH="52%" VALIGN="TOP" COLSPAN="4">
    <p align="left">&nbsp;</td>
  </tr>
</table>
<table BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="644" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="48%" VALIGN="TOP">
    <p align="left">&nbsp;</td>
    <td WIDTH="52%" VALIGN="TOP" COLSPAN="4"><b>
    <p align="left"><font face="Times New Roman">MAGICVISION MEDIA INC.</font></b></td>
  </tr>
  <tr>
    <td WIDTH="48%" VALIGN="TOP">
    <p align="left">&nbsp;</td>
    <td WIDTH="52%" VALIGN="TOP" COLSPAN="4">
    <p align="left">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="48%" VALIGN="TOP">
    <p align="left">&nbsp;</td>
    <td WIDTH="11%" VALIGN="TOP">
    <p align="left"><font face="Times New Roman">By:</font></td>
    <td WIDTH="41%" VALIGN="TOP" COLSPAN="3" style="border-bottom-style: solid; border-bottom-width: 1">
    <p align="left">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="48%" VALIGN="TOP">
    <p align="left">&nbsp;</td>
    <td WIDTH="11%" VALIGN="TOP">
    <p align="left"><font face="Times New Roman">Name:</font></td>
    <td WIDTH="41%" VALIGN="TOP" COLSPAN="3" style="border-bottom-style: solid; border-bottom-width: 1">
    <p align="left">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="48%" VALIGN="TOP">
    <p align="left">&nbsp;</td>
    <td WIDTH="11%" VALIGN="TOP">
    <p align="left"><font face="Times New Roman">Title:</font></td>
    <td WIDTH="41%" VALIGN="TOP" COLSPAN="3" style="border-bottom-style: solid; border-bottom-width: 1">
    <p align="left">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="48%" VALIGN="TOP">
    <p align="left">&nbsp;</td>
    <td WIDTH="52%" VALIGN="TOP" COLSPAN="4">
    <p align="left">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="48%" VALIGN="TOP">
    <p align="left">&nbsp;</td>
    <td WIDTH="16%" VALIGN="TOP" COLSPAN="2">
    <p align="left"><font face="Times New Roman">Address:</font></td>
    <td WIDTH="35%" VALIGN="TOP" COLSPAN="2">
    <p align="left">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="48%" VALIGN="TOP">
    <p align="left">&nbsp;</td>
    <td WIDTH="16%" VALIGN="TOP" COLSPAN="2">
    <p align="left">&nbsp;</td>
    <td WIDTH="35%" VALIGN="TOP" COLSPAN="2">
    <p align="left">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="48%" VALIGN="TOP">
    <p align="left">&nbsp;</td>
    <td WIDTH="16%" VALIGN="TOP" COLSPAN="2">
    <p align="left"><font face="Times New Roman">Telephone:</font></td>
    <td WIDTH="35%" VALIGN="TOP" COLSPAN="2">
    <p align="left">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="48%" VALIGN="TOP">
    <p align="left">&nbsp;</td>
    <td WIDTH="16%" VALIGN="TOP" COLSPAN="2">
    <p align="left"><font face="Times New Roman">Facsimile:</font></td>
    <td WIDTH="35%" VALIGN="TOP" COLSPAN="2">
    <p align="left">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="48%" VALIGN="TOP">
    <p align="left">&nbsp;</td>
    <td WIDTH="27%" VALIGN="TOP" COLSPAN="3">
    <p align="left"><font face="Times New Roman">Jurisdiction of Incorporation:</font></td>
    <td WIDTH="24%" VALIGN="TOP">
    <p align="left">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="48%" VALIGN="TOP">
    <p align="left">&nbsp;</td>
    <td WIDTH="52%" VALIGN="TOP" COLSPAN="4">
    <p align="left">&nbsp;</td>
  </tr>
</table>
<p align="center"><font face="Times New Roman">11</font></p>
<table BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="644" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="48%" VALIGN="TOP">
    <p align="left">&nbsp;</td>
    <td WIDTH="52%" VALIGN="TOP" COLSPAN="4"><b>
    <p align="left"><font face="Times New Roman">MAGIC LANTERN COMMUNICATIONS
    LTD.</font></b></td>
  </tr>
  <tr>
    <td WIDTH="48%" VALIGN="TOP">
    <p align="left">&nbsp;</td>
    <td WIDTH="52%" VALIGN="TOP" COLSPAN="4">
    <p align="left">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="48%" VALIGN="TOP">
    <p align="left">&nbsp;</td>
    <td WIDTH="11%" VALIGN="TOP">
    <p align="left"><font face="Times New Roman">By:</font></td>
    <td WIDTH="41%" VALIGN="TOP" COLSPAN="3" style="border-bottom-style: solid; border-bottom-width: 1">
    <p align="left">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="48%" VALIGN="TOP">
    <p align="left">&nbsp;</td>
    <td WIDTH="11%" VALIGN="TOP">
    <p align="left"><font face="Times New Roman">Name:</font></td>
    <td WIDTH="41%" VALIGN="TOP" COLSPAN="3" style="border-bottom-style: solid; border-bottom-width: 1">
    <p align="left">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="48%" VALIGN="TOP">
    <p align="left">&nbsp;</td>
    <td WIDTH="11%" VALIGN="TOP">
    <p align="left"><font face="Times New Roman">Title:</font></td>
    <td WIDTH="41%" VALIGN="TOP" COLSPAN="3" style="border-bottom-style: solid; border-bottom-width: 1">
    <p align="left">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="48%" VALIGN="TOP">
    <p align="left">&nbsp;</td>
    <td WIDTH="52%" VALIGN="TOP" COLSPAN="4">
    <p align="left">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="48%" VALIGN="TOP">
    <p align="left">&nbsp;</td>
    <td WIDTH="16%" VALIGN="TOP" COLSPAN="2">
    <p align="left"><font face="Times New Roman">Address:</font></td>
    <td WIDTH="35%" VALIGN="TOP" COLSPAN="2">
    <p align="left">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="48%" VALIGN="TOP">
    <p align="left">&nbsp;</td>
    <td WIDTH="16%" VALIGN="TOP" COLSPAN="2">
    <p align="left">&nbsp;</td>
    <td WIDTH="35%" VALIGN="TOP" COLSPAN="2">
    <p align="left">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="48%" VALIGN="TOP">
    <p align="left">&nbsp;</td>
    <td WIDTH="16%" VALIGN="TOP" COLSPAN="2">
    <p align="left"><font face="Times New Roman">Telephone:</font></td>
    <td WIDTH="35%" VALIGN="TOP" COLSPAN="2">
    <p align="left">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="48%" VALIGN="TOP">
    <p align="left">&nbsp;</td>
    <td WIDTH="16%" VALIGN="TOP" COLSPAN="2">
    <p align="left"><font face="Times New Roman">Facsimile:</font></td>
    <td WIDTH="35%" VALIGN="TOP" COLSPAN="2">
    <p align="left">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="48%" VALIGN="TOP">
    <p align="left">&nbsp;</td>
    <td WIDTH="27%" VALIGN="TOP" COLSPAN="3">
    <p align="left"><font face="Times New Roman">Jurisdiction of Incorporation:</font></td>
    <td WIDTH="24%" VALIGN="TOP">
    <p align="left">&nbsp;</td>
  </tr>
  <tr>
    <td WIDTH="48%" VALIGN="TOP">
    <p align="left">&nbsp;</td>
    <td WIDTH="52%" VALIGN="TOP" COLSPAN="4">
    <p align="left">&nbsp;</td>
  </tr>
</table>
<p align="left">&nbsp;</p>
<p align="center"><font face="Times New Roman">12</font></p>
<p align="left">&nbsp;</p>

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</TEXT>
</DOCUMENT>
