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<P style="FONT-SIZE: 12pt; MARGIN: 0px" align=center><B>UNITED STATES</B></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px" align=center><B>SECURITIES AND EXCHANGE
COMMISSION</B></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px" align=center><B>Washington, DC
&nbsp;20549</B></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px" align=center><B>FORM 8-K</B></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px" align=center><B>CURRENT REPORT</B></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px" align=center>Pursuant to Section 13 or
15 (d) of the Securities Exchange Act of 1934</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px" align=center>Date of Report (Date of
earliest event reported): &nbsp;August 26, 2008 (August 19, 2008)</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px" align=center><B>ABLEAUCTIONS.COM,
INC.</B></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px" align=center>(Exact name of Registrant
as specified in charter)</P>
<P style="MARGIN: 0px"><BR></P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 align=center>
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<P style="FONT-SIZE: 12pt; MARGIN: 0px" align=center>Florida</P></TD>
<TD vAlign=bottom width=244>
<P style="FONT-SIZE: 12pt; MARGIN: 0px" align=center>000-28179</P></TD>
<TD vAlign=bottom width=244>
<P style="FONT-SIZE: 12pt; MARGIN: 0px" align=center>59-3404233</P></TD></TR>
<TR>
<TD vAlign=bottom width=244>
<P style="FONT-SIZE: 9pt; MARGIN: 0px" align=center>(State or other
jurisdiction of incorporation)</P></TD>
<TD vAlign=bottom width=244>
<P style="FONT-SIZE: 9pt; MARGIN: 0px" align=center>(Commission File
Number)</P></TD>
<TD vAlign=bottom width=244>
<P style="FONT-SIZE: 9pt; MARGIN: 0px" align=center>(IRS Employer
Identification Number)</P></TD></TR></TABLE>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px" align=center><B>1963 Lougheed
Highway</B></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px" align=center><B>Coquitlam, British
Columbia Canada</B></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px" align=center>(Address of principal
executive offices)</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px">Registrant&#146;s telephone number, including
area code: &nbsp;604-521-3369</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px" align=justify>Check the appropriate box below if the Form
8-K filing is intended to simultaneously satisfy the filing obligation of the
Registrant under any of the following provisions (see General Instruction A.2
below).</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px">[ &nbsp;] Written communications pursuant to Rule 425
under the Securities Act (17 CFR 230.425)</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px">[ &nbsp;] Soliciting material pursuant to Rule 14a-12
under the Exchange Act (17 CFR240.14a-12)</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px">[ &nbsp;] Pre-commencement communications pursuant to
Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)).</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px">[ &nbsp;] Pre-commencement communications pursuant to
Rule 13e-4(c) under the Exchange Act (17 CFR 240.13(e)-4(c))</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR><BR></P>
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px"><B>Item 1.01. Entry into a Material
Definitive Agreement.</B></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: 48px" align=justify>The
following discussion provides only a brief description of the documents
described below. &nbsp;The discussion is qualified in its entirety by the full
text of the agreements.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: 48px" align=justify>On
August 19, 2008 Abdul Ladha, our Chief Executive Officer, President, Chief
Financial Officer and a director, entered into an Agreement to Convert Debt (the
&#147;Agreement&#148;) with us. &nbsp;Pursuant to the Agreement, Mr. Ladha agreed to
accept units consisting of 1 share of our common stock and a warrant to purchase
1.5 shares of our common stock as partial payment of certain loans made to us.
&nbsp;On July 15, 2008, Mr. Ladha loaned us $124,762.95 in principal amount and
on July 24, 2008 Mr. Ladha loaned us $374,288.85 in principal amount. &nbsp;The
loans bear interest at the prime rate as announced by Royal Bank of Canada plus
1% and are due on demand. &nbsp;Pursuant to the Agreement, Mr. Ladha will accept
units consisting of 4,800,000 shares of common stock and a warrant for the
purchase of 7,200,000 shares of common stock as full payment of $384,000 in
principal amount of the loans. &nbsp;The number of units to be issued was
computed by using the last sale price of our common stock on Tuesday, August 19,
2008, which was $0.08. &nbsp;The warrant exercise price is $0.09 and the warrant
term is 5 years. &nbsp;The average adjusted closing price of the stock for the
last 60 days prior to August 19, 2008 is $0.074.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: 48px" align=justify>The
units shall be issued to Mr. Ladha immediately following approval of our
additional listing application by the American Stock Exchange.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px"><B>Item 3.02. Unregistered Sales of
Equity Securities.</B></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: 48px" align=justify>Please
see the description included in Item 1.01 above. &nbsp;We relied on Section 4(2)
of the Securities Act of 1933 to make this offering inasmuch as Mr. Ladha, an
affiliate, is the only purchaser of the securities.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px"><B>Item 9.01 Financial Statements and
Exhibits.</B></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: 96px">Exhibit 10.1
Agreement to Convert Debt dated August 19, 2008</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: 96px">Exhibit 10.2 Warrant
Agreement</P>
<P style="MARGIN: 0px"><BR></P><A name=node2></A>
<P style="MARGIN: 0px" align=center><BR><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; PAGE-BREAK-BEFORE: always; MARGIN: 0px"
align=center><B>SIGNATURES</B></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: 48px">Pursuant to the
requirements of the Securities Exchange Act of 1934, the Registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly
authorized.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px"><B>ABLEAUCTIONS.COM, INC.</B></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px"><U>/s/ </U><I><U>Abdul
Ladha__________________</U></I></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px">Abdul Ladha, Chief Executive Officer</P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px">Dated: &nbsp;August 26, 2008</P>
<P style="MARGIN: 0px" align=right><BR><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; PAGE-BREAK-BEFORE: always; MARGIN: 0px"
align=right><B>Exhibit 10.1</B></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px" align=center><B>AGREEMENT TO CONVERT
DEBT</B></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px">This Agreement to Convert Debt (the
&#147;Agreement&#148;) is made on this 19th day of August 2008 (the &#147;Effective Date&#148;) by
and between Abdul Ladha (&#147;Ladha&#148;) and Ableauctions.com, Inc. (the
&#147;Company&#148;).</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px" align=center><B>RECITALS</B></P>
<P style="MARGIN: 0px"><BR></P>
<P
style="PADDING-LEFT: 96px; FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: -48px"><B>A.</B>
Ladha is the chief executive officer, president, chief financial officer and a
director of the Company.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="PADDING-LEFT: 90px; FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: -42px"><B>B.</B>
As of the Effective Date, the Company owes Ladha the sum of $501,369.31 in
loans, representing $499,051.80 in principal amount and $2,317.51 in accrued
interest (the &#147;Loans&#148;).</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="PADDING-LEFT: 96px; FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: -48px"><B>C.</B>
At the request of the Company, Ladha has agreed to accept payment of $384,000 in
principal amount of the Loans (the &#147;Partial Payment&#148;) in accordance with the
terms of this Agreement.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px">Now, therefore, the parties agree as
follows:</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px" align=center><B>AGREEMENT</B></P>
<P style="MARGIN: 0px"><BR></P>
<P style="PADDING-LEFT: 96px; FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: -48px"
align=justify><B>1. The Partial Payment.</B>&nbsp;&nbsp;</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="PADDING-LEFT: 48px; FONT-SIZE: 12pt; MARGIN: 0px" align=justify>The
Company will pay the Partial Payment, and Ladha will accept as payment of the
Partial Payment, units consisting of one share of the Company&#146;s common stock,
$0.001 par value, and warrants for the purchase of 1.5 shares of the Company&#146;s
common stock. &nbsp;The warrants will have a term of 5 years and an exercise
price which is $0.01 higher than the per share value of the common stock used to
compute the number of units to be issued.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="PADDING-LEFT: 96px; FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: -48px"
align=justify><B>2. Comp<A name=OLE_LINK1></A>utation of Units to be
Issued.</B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="PADDING-LEFT: 48px; FONT-SIZE: 12pt; MARGIN: 0px" align=justify>The
per share value of the common stock used to compute the number of units to be
issued will be the last sale price of the common stock on the date on which the
Company&#146;s Audit Committee and its Board of Directors approves this
Agreement.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="PADDING-LEFT: 96px; FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: -48px"
align=justify><B>3. Issuance of Units.</B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="PADDING-LEFT: 48px; FONT-SIZE: 12pt; MARGIN: 0px" align=justify>The
units shall be issued to Ladha immediately following approval of the Company&#146;s
additional listing application by the American Stock Exchange.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="PADDING-LEFT: 96px; FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: -48px"
align=justify><B>4. Relinquishment of Right to Receive Cash.</B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="PADDING-LEFT: 48px; FONT-SIZE: 12pt; MARGIN: 0px" align=justify>By
executing this Agreement, Ladha agrees that he shall not have any further right
to demand payment of the Partial Payment with cash. &nbsp;Upon issuance of the
units in accordance with this Agreement, the portion of the Loans represented by
the Partial Payment will be paid in full.</P>
<P style="MARGIN: 0px" align=justify><BR><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P
style="PADDING-LEFT: 96px; FONT-SIZE: 12pt; PAGE-BREAK-BEFORE: always; MARGIN: 0px; TEXT-INDENT: -48px"
align=justify><B>5. No Modification to Loans.</B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="PADDING-LEFT: 48px; FONT-SIZE: 12pt; MARGIN: 0px" align=justify>Ladha
and the Company agree that the remaining terms and conditions of the Loans are
not modified or changed by the payment made pursuant to this Agreement.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="PADDING-LEFT: 96px; FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: -48px"
align=justify><B>6. Miscellaneous.</B></P>
<P style="MARGIN: 0px"><BR></P>
<P style="PADDING-LEFT: 48px; FONT-SIZE: 12pt; MARGIN: 0px" align=justify><B>(a)
Cooperation. &nbsp;</B>Subsequent to the payment contemplated herein, Ladha and
the Company agree, without further consideration, to cooperate and diligently
perform any further acts, deeds and things, and to execute and deliver any
documents that may be reasonably necessary or otherwise reasonably required to
consummate, evidence, confirm and/or carry out the intent and provisions of this
Agreement, all without undue delay or expense.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="PADDING-LEFT: 48px; FONT-SIZE: 12pt; MARGIN: 0px" align=justify><B>(b)
Entire Agreement/No Collateral Representations.</B>&nbsp;&nbsp;Ladha and the
Company expressly acknowledge and agree that this Agreement:&nbsp;&nbsp;(1) is
the final, complete and exclusive statement of the agreement of each of them
with respect to the subject matter hereof; (2) supersedes any prior or
contemporaneous agreements, communications, discussions, promises,
representations, understandings, conduct, acts, courses of dealing, warranties,
interpretations or terms of any kind, whether oral or written (collectively and
severally, the <I>&#147;prior agreements</I>&#148;), and that any such prior agreements
are of no force or effect except as expressly set forth herein; and (3) may not
be varied, supplemented or contradicted by evidence of prior agreements, or by
evidence of subsequent oral agreements.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="PADDING-LEFT: 48px; FONT-SIZE: 12pt; MARGIN: 0px" align=justify><B>(c)
Amendment; Waiver; Forbearance.</B>&nbsp;&nbsp;Except as expressly provided
otherwise herein, neither this Agreement nor any of the terms, provisions,
obligations or rights contained herein, may be amended, modified, supplemented,
augmented, rescinded, discharged or terminated (other than by performance),
except by a written instrument or instruments signed by all of the parties to
this Agreement.&nbsp;&nbsp;Except to the extent that the party or parties
claimed to have given or consented to a waiver may have otherwise agreed in
writing, no such waiver shall be deemed a waiver or relinquishment of any other
term, provision, agreement, act, obligation or right granted under this
Agreement.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="PADDING-LEFT: 48px; FONT-SIZE: 12pt; MARGIN: 0px" align=justify><B>(d)
Severability.</B>&nbsp;&nbsp;&nbsp;If any term or provision of this Agreement or
the application thereof to any person or circumstance shall, to any extent, be
determined to be invalid, illegal or unenforceable under present or future laws,
then, and in that event:&nbsp;&nbsp;(1) the performance of the offending term or
provision (but only to the extent its application is invalid, illegal or
unenforceable) shall be excused as if it had never been incorporated into this
Agreement, and, in lieu of such excused provision, there shall be added a
provision as similar in terms and amount to such excused provision as may be
possible and be legal, valid and enforceable; and (2) the remaining part of this
Agreement (including the application of the offending term or provision to
persons or circumstances other than those as to which it is held invalid,
illegal or unenforceable) shall not be affected thereby, and shall continue in
full force and effect to the fullest extent provided by law.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="PADDING-LEFT: 48px; FONT-SIZE: 12pt; MARGIN: 0px" align=justify><B>(e)
Parties in Interest.</B>&nbsp;&nbsp;Notwithstanding anything else to the
contrary herein, nothing in this Agreement shall confer any rights or remedies
under or by reason of this Agreement on any persons other than the parties
hereto and their respective successors and assigns, if any.</P>
<P style="MARGIN: 0px" align=justify><BR><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 12pt; PAGE-BREAK-BEFORE: always; MARGIN: 0px"
align=justify><B>(f) Enforcement.</B>&nbsp;&nbsp;This Agreement shall be
construed and enforced in accordance with the laws of British Columbia,
Canada.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="PADDING-LEFT: 48px; FONT-SIZE: 12pt; MARGIN: 0px" align=justify><B>(g)
Counterparts.</B>&nbsp;&nbsp;This Agreement may be executed in counterparts,
each of which shall be deemed an original, and all of which together shall
constitute one and the same instrument, binding on all parties
hereto.&nbsp;&nbsp;Any signature page of this Agreement may be detached from any
counterpart of this Agreement and reattached to any other counterpart of this
Agreement identical in form hereto by having attached to it one or more
additional signature pages.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px" align=justify><B>WHEREFORE</B>, Ladha
and the Company have executed this Agreement in the City of Coquitlam, British
Columbia.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="PADDING-LEFT: 280px; FONT-SIZE: 12pt; MARGIN: 0px"><B>&#147;Ladha&#148;</B></P>
<P
style="PADDING-LEFT: 280px; FONT-SIZE: 12pt; MARGIN: 0px">________________________________</P>
<P style="PADDING-LEFT: 280px; FONT-SIZE: 12pt; MARGIN: 0px">Abdul Ladha</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="PADDING-LEFT: 280px; FONT-SIZE: 12pt; MARGIN: 0px"><B>&#147;Company&#148;</B></P>
<P style="MARGIN: 0px"><BR></P>
<P style="PADDING-LEFT: 280px; FONT-SIZE: 12pt; MARGIN: 0px">Ableauctions.com,
Inc.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="PADDING-LEFT: 280px; FONT-SIZE: 12pt; MARGIN: 0px">By:<U>_/S/
</U><I><U>Abdul Ladha</U></I><U>________________</U></P>
<P
style="PADDING-LEFT: 280px; FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: 32px">Abdul
Ladha, Chief Executive Officer</P>
<P style="MARGIN: 0px" align=right><BR><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P
style="PADDING-LEFT: 280px; FONT-SIZE: 12pt; PAGE-BREAK-BEFORE: always; MARGIN: 0px; TEXT-INDENT: 32px"
align=right><B>Exhibit 10.2</B></P><A name=e2></A>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 12pt; MARGIN-BOTTOM: 11px; LINE-HEIGHT: 12pt"
align=center>WARRANT AGREEMENT</P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px" align=justify>WARRANT AGREEMENT (this
&#147;Agreement&#148;) dated as of August 19, 2008, between Ableauctions.com, Inc., a
Florida corporation (the &#147;Company&#148;), and Abdul Ladha, an individual
(&#147;Ladha&#148;).</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px" align=center><U>W I T N E S S E T
H:</U></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px" align=justify>WHEREAS, the Company
proposes to issue to Ladha warrants (&#147;Warrants&#148;) to purchase up to an aggregate
of 7,200,000 shares (the &#147;Shares&#148;) of common stock of the Company, par value
$0.001 per share (the &#147;Common Stock&#148;); and</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px" align=justify>WHEREAS, the Warrants
issued pursuant to this Agreement are being issued by the Company to Ladha in
conjunction with the execution of that certain Agreement to Convert Debt of even
date herewith between the Company and Ladha;</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px" align=justify>NOW, THEREFORE, in
consideration of the foregoing premises, the agreements herein set forth and
other good and valuable consideration the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 12pt"
align=justify><U>1. Grant.</U></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR></P>
<P style="PADDING-LEFT: 48px; FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 12pt"
align=justify>Subject to approval of the Additional Listing Application to be
submitted to the American Stock Exchange, Ladha is hereby granted the right to
purchase, at any time from August 19, 2008 until 5:00 p.m. Pacific time on
August 18, 2013 (the &#147;Warrant Exercise Term&#148;), up to an aggregate of 7,200,000
Shares at the exercise price (subject to adjustment as provided in <U>Section
7</U> hereof) of $0.09 per Share.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR></P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 12pt"
align=justify><U>2. Warrant Certificates</U>.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR></P>
<P style="PADDING-LEFT: 48px; FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 12pt"
align=justify>The warrant certificates (the &#147;Warrant Certificates&#148;) delivered
and to be delivered pursuant to this Agreement shall be in the form set forth as
<U>Exhibit A</U> attached hereto and made a part hereof, with such appropriate
insertions, omissions, substitutions and other variations as required or
permitted by this Agreement.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px; LINE-HEIGHT: 12pt"
align=justify><BR></P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 12pt"
align=justify><U>3. Exercise of Warrants</U>.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR></P>
<P style="PADDING-LEFT: 48px; FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 12pt"
align=justify>The Warrants are exercisable at a price of $0.09 per Share,
payable in cash or by check to the order of the Company, or any combination of
cash or check, subject to adjustment as provided in <U>Section 7</U> hereof.
&nbsp;Upon surrender of the Warrant Certificate with the duly executed Form of
Election to Purchase in the form set forth on <U>Exhibit B</U> attached hereto
and made a part hereof, together with payment of the Exercise Price (as
hereinafter defined) for the Shares purchased at the Company&#146;s principal
offices, currently located at 1963 Lougheed Highway, Suite 200, Coquitlam,
British Columbia, the registered holder of a Warrant Certificate (&#147;Holder&#148; or
&#147;Holders&#148;) shall be entitled to receive a certificate or certificates for the
Shares so purchased. &nbsp;The purchase rights represented by each Warrant
Certificate are exercisable at the option of the Holder thereof, in whole or in
part (but not as to fractional shares of the Common Stock underlying the
Warrants). &nbsp;In the case of the purchase of less than all the Shares
purchasable under any Warrant Certificate, the Company shall cancel said Warrant
Certificate upon the surrender thereof and shall execute and deliver a new
Warrant Certificate of like tenor for the balance of the Shares purchasable
thereunder.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR></P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 12pt"><U>4.
Issuance of Certificates</U>.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt"><BR></P>
<P
style="PADDING-LEFT: 96px; FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: -48px; LINE-HEIGHT: 12pt"
align=justify><U>4.1 Issuance</U>.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR></P>
<P style="PADDING-LEFT: 96px; FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 12pt"
align=justify>Upon the exercise of the Warrants, the issuance of certificates
for the Shares shall be made forthwith (and in any event within 5 business days
thereafter) without any charge to the Holder thereof including, without
limitation, any tax (other than income taxes) which may be payable in respect of
the issuance thereof, and such certificates shall (subject to the provisions of
<U>Section 5</U> hereof) be issued in the name of, or in such names as may be
directed by, the Holder thereof; provided however, that the Company shall not be
required to pay any tax which may be payable in respect of any transfer involved
in the issuance and delivery of any such certificates in a name other than that
of the Holder and the Company shall not be required to issue or deliver such
certificates unless or until the person or persons requesting the issuance
thereof shall have paid to the Company the amount of such tax or shall have
established to the satisfaction of the Company that such tax has been paid.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px; LINE-HEIGHT: 12pt"
align=justify><BR></P>
<P
style="PADDING-LEFT: 96px; FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: -48px; LINE-HEIGHT: 12pt"
align=justify><U>4.2 Form of Certificates</U>.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR></P>
<P style="PADDING-LEFT: 96px; FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 12pt"
align=justify>The Warrant Certificates and certificates representing the Shares
shall be executed on behalf of the Company by such officer or officers as are
permitted or required to execute such certificates on behalf of the Company by
the Company&#146;s by-laws and applicable law. &nbsp;Warrant Certificates shall be
dated the date of execution by the Company upon initial issuance, division,
exchange, substitution or transfer. &nbsp;The Warrant Certificates shall bear a
legend substantially similar to the following:</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 12pt; MARGIN-BOTTOM: 11px; LINE-HEIGHT: 12pt"
align=justify>NEITHER THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE
COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933 OR ANY APPLICABLE STATE SECURITIES LAWS. &nbsp;THEY MAY
NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED OR OTHERWISE TRANSFERRED
IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE
SECURITIES UNDER SUCH ACT OR AN EXEMPTION THEREFROM. &nbsp;ANY SUCH TRANSFER MAY
ALSO BE SUBJECT TO APPLICABLE STATE SECURITIES LAWS.</P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 12pt; MARGIN-BOTTOM: 11px; LINE-HEIGHT: 12pt"
align=justify>THIS CERTIFICATE IS ISSUED SUBJECT TO THE PROVISIONS OF A WARRANT
AGREEMENT DATED AS OF AUGUST 19, 2008, AS THE SAME MAY BE AMENDED FROM TIME TO
TIME, AND ANY TRANSFEREE OF THIS CERTIFICATE OR OF THE SHARES ISSUABLE UPON
EXERCISE OF IT SHALL BE BOUND BY THE PROVISIONS OF SAID AGREEMENT, A COPY OF
WHICH IS ON FILE WITH, AND AVAILABLE FROM, THE SECRETARY OF THE COMPANY.</P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 12pt; MARGIN-BOTTOM: 11px; LINE-HEIGHT: 12pt"
align=justify>Upon exercise of the Warrants, in part or in whole, certificates
representing the Shares issued upon such exercise shall bear a legend
substantially similar to the following:</P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 12pt; MARGIN-BOTTOM: 11px; LINE-HEIGHT: 12pt"
align=justify>THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933 OR ANY APPLICABLE STATE SECURITIES
LAWS. &nbsp;THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED OR
OTHERWISE TRANSFERRED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH
RESPECT TO THE SECURITIES UNDER SUCH ACT OR AN EXEMPTION THEREFROM. &nbsp;ANY
SUCH TRANSFER MAY ALSO BE SUBJECT TO APPLICABLE STATE SECURITIES LAWS.</P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 12pt; MARGIN-BOTTOM: 11px; LINE-HEIGHT: 12pt"
align=justify>THIS CERTIFICATE IS ISSUED SUBJECT TO THE PROVISIONS OF A WARRANT
AGREEMENT DATED AS OF AUGUST 19, 2008, AS THE SAME MAY BE AMENDED FROM TIME TO
TIME, AND ANY TRANSFEREE OF THIS CERTIFICATE SHALL BE BOUND BY THE PROVISIONS OF
SAID AGREEMENT, A COPY OF WHICH IS ON FILE WITH, AND AVAILABLE FROM, THE
SECRETARY OF THE COMPANY.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 11px; LINE-HEIGHT: 12pt"
align=justify><BR><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; FONT-SIZE: 12pt; MARGIN-BOTTOM: 11px; PAGE-BREAK-BEFORE: always; TEXT-INDENT: -24px; LINE-HEIGHT: 12pt"
align=justify><U>5. Restriction on Transfer of Warrants</U>.</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; FONT-SIZE: 12pt; MARGIN-BOTTOM: 11px; LINE-HEIGHT: 12pt"
align=justify>The Holder of a Warrant Certificate, by its acceptance thereof,
covenants and agrees that the Warrants are being acquired, and any Shares will
be acquired, as an investment and not with a view to the distribution thereof,
and that the Warrants and Shares may not be sold, transferred, assigned,
hypothecated or otherwise disposed of, in whole or in part, except pursuant to
an effective registration statement under the Securities Act of 1933, as amended
(the &#147;Act&#148;) or an applicable exemption from the registration requirements
thereof. &nbsp;In connection with the transfer or exercise of Warrants, the
transferee and Holder must agree to execute any documents which may be
reasonably required by counsel to the Company to comply with the provisions of
the Act and applicable state securities laws.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR></P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 12pt"
align=justify><U>6. Price</U>.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR></P>
<P
style="PADDING-LEFT: 96px; FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: -48px; LINE-HEIGHT: 12pt"
align=justify><U>6.1 Initial and Adjusted Exercise Price</U>.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR></P>
<P style="PADDING-LEFT: 96px; FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 12pt"
align=justify>The initial exercise price of each Warrant shall be $0.20 per
Share. &nbsp;The adjusted exercise price shall be the price which shall result
from time to time from any and all adjustments of the initial exercise price in
accordance with the provisions of <U>Section 7</U> hereof.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR></P>
<P
style="PADDING-LEFT: 96px; FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: -48px; LINE-HEIGHT: 12pt"
align=justify><U>6.2 Exercise Price</U>.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR></P>
<P style="PADDING-LEFT: 96px; FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 12pt"
align=justify>The term &#147;Exercise Price&#148; herein shall mean the initial exercise
price or the adjusted exercise price, depending upon the context.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR></P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 12pt"
align=justify><U>7. Adjustments of Exercise Price and Number of Shares</U>.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR></P>
<P style="PADDING-LEFT: 48px; FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 12pt"
align=justify>If outstanding shares of the Company&#146;s Common Stock shall be
subdivided into a greater number of shares or a dividend in Common Stock shall
be paid in respect of Common Stock, the Exercise Price in effect immediately
prior to such subdivision or at the record date of such dividend shall
simultaneously with the effectiveness of such subdivision or immediately after
the record date of such dividend be proportionately reduced. &nbsp;If
outstanding shares of Common Stock shall be combined into a smaller number of
shares, the Exercise Price in effect immediately prior to such combination
shall, simultaneously with the effectiveness of such combination, be
proportionately increased. &nbsp;When any adjustment is required to be made in
the Exercise Price, the number of Shares purchasable upon the exercise of this
Warrant shall be changed to the number determined by dividing (i) an amount
equal to the number of shares issuable upon the exercise of this Warrant
immediately prior to such adjustment, multiplied by the Exercise Price in effect
immediately prior to such adjustment, by (ii) the Exercise Price in effect
immediately after such adjustment.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 12pt; PAGE-BREAK-BEFORE: always; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 12pt"
align=justify><U>8. Exchange and Replacement of Warrant Certificates</U>.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR></P>
<P style="PADDING-LEFT: 48px; FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 12pt"
align=justify>8.1<U> Exchange</U>. &nbsp;Each Warrant Certificate is
exchangeable without expense, upon the surrender hereof by the registered Holder
at the principal executive office of the Company, for a new Warrant Certificate
of like tenor and date representing in the aggregate the right to purchase the
same number of Shares in such denominations as shall be designated by the Holder
thereof at the time of such surrender.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR></P>
<P style="PADDING-LEFT: 48px; FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 12pt"
align=justify>8.2<U> Replacement</U>. &nbsp;Upon receipt by the Company of
evidence reasonably satisfactory to it of the loss, theft, destruction or
mutilation of any Warrant Certificate, and, in case of loss, theft or
destruction, of indemnity or security reasonably satisfactory to it, and
reimbursement to the Company of all reasonable expenses incidental thereto, and
upon surrender and cancellation of the Warrants, if mutilated, the Company will
make and deliver a new Warrant Certificate of like tenor, in lieu thereof.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR></P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 12pt"
align=justify><U>9. Elimination of Fractional Interests</U>.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR></P>
<P style="PADDING-LEFT: 48px; FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 12pt"
align=justify>The Company shall not be required to issue certificates
representing fractions of shares of Common Stock and shall not be required to
issue scrip or pay cash in lieu of fractional interests, it being the intent of
the parties that all fractional interests shall be eliminated by rounding any
fraction up to the nearest whole number of shares of Common Stock.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR></P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 12pt"
align=justify><U>10. Reservation and Listing of Securities</U>.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR></P>
<P style="PADDING-LEFT: 48px; FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 12pt"
align=justify>The Company shall at all times reserve and keep available out of
its authorized shares of Common Stock, solely for the purpose of issuance upon
the exercise of the Warrants, such number of shares of Common Stock as shall be
issuable upon the exercise thereof. &nbsp;The Company covenants and agrees that,
upon exercise of the Warrants and payment of the Exercise Price thereof, all
shares of Common Stock issuable upon such exercise shall be duly and validly
issued, fully paid, non-assessable and not subject to the preemptive rights of
any shareholder.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR></P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 12pt"
align=justify><U>11. Notices to Warrant Holders</U>.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR></P>
<P style="PADDING-LEFT: 48px; FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 12pt"
align=justify>Nothing contained in this Agreement shall be construed as
conferring upon the Holder or Holders the right to vote or to consent or to
receive notice as a shareholder in respect of any meetings of shareholders for
the election of directors or any other matter, or as having any rights
whatsoever as a shareholder of the Company.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px; LINE-HEIGHT: 12pt"
align=justify><BR></P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 12pt"
align=justify><U>12. Notices</U>.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR></P>
<P style="PADDING-LEFT: 48px; FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 12pt"
align=justify>All notices, requests, consents and other communications hereunder
shall be in writing and shall be deemed to have been duly made when delivered,
telecopied or mailed by registered or certified mail, return receipt
requested:</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR></P>
<P
style="PADDING-LEFT: 108px; FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: -36px; LINE-HEIGHT: 12pt"
align=justify>(a) If to a registered Holder of the Warrants, to the address of
such Holder as shown on the books of the Company; or</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR></P>
<P
style="PADDING-LEFT: 108px; FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: -36px; LINE-HEIGHT: 12pt"
align=justify>(b) If to the Company, to the address set forth in <U>Section
3</U> of this Agreement or to such other address as the Company may designate by
notice to the Holders.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR></P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 12pt"
align=justify><U>13. Supplements and Amendments</U>.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR></P>
<P style="PADDING-LEFT: 48px; FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 12pt"
align=justify>The Company and Ladha may from time to time supplement or amend
this Agreement in order to cure any ambiguity, to correct or supplement any
provision contained herein which may be defective or inconsistent with any
provisions herein, or to make any other provisions in regard to matters or
questions arising hereunder which the Company and Ladha may deem necessary or
desirable.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR></P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 12pt"
align=justify><U>14. Successors</U>.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR></P>
<P style="PADDING-LEFT: 48px; FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 12pt"
align=justify>All the covenants and provisions of this Agreement by or for the
benefit of the Company and the Holders inure to the benefit of their respective
successors and assigns hereunder.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR></P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 12pt"
align=justify><U>15. Termination</U>.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR></P>
<P
style="PADDING-LEFT: 24px; FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: 24px; LINE-HEIGHT: 12pt"
align=justify>This Agreement shall terminate at 5:00 p.m. Pacific time on August
18, 2013.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR></P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 12pt"
align=justify><U>16. Governing Law</U>.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR></P>
<P style="PADDING-LEFT: 48px; FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 12pt"
align=justify>This Agreement and each Warrant Certificate issued hereunder shall
be deemed to be a contract made under the laws of British Columbia as applied to
agreements among British Columbia residents entered into and to be performed
entirely within British Columbia, without regard to the conflict of law
provisions thereof.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR></P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 12pt"
align=justify><U>17. Benefits of This Agreement</U>.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR></P>
<P style="PADDING-LEFT: 48px; FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 12pt"
align=justify>Nothing in this Agreement shall be construed to give to any person
or corporation, other than the Company and Ladha and any other registered holder
or holders of the Warrant Certificates, Warrants or the Shares, any legal or
equitable right, remedy or claim under this Agreement; and this Agreement shall
be for the sole and exclusive benefit of the Company and Ladha and any other
holder or holders of the Warrant Certificates, Warrants or the Shares.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 12pt; PAGE-BREAK-BEFORE: always; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 12pt"
align=justify><U>18. Preservation of Rights</U>.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR></P>
<P style="PADDING-LEFT: 48px; FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 12pt"
align=justify>The Company will not, by amendment of its articles of
incorporation or through any consolidation, merger, reorganization, transfer of
assets, dissolution, issue or sale of securities or any other voluntary action,
avoid or seek to avoid the observance or performance of any of the terms of this
Agreement or the Warrants or the rights represented hereby or thereby, but will
at all times in good faith assist in the carrying out of all such terms and in
the taking of all such actions as may be necessary or appropriate in order to
protect the rights of the Holders of the Warrants against dilution or other
impairment.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR></P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: -24px; LINE-HEIGHT: 12pt"
align=justify><U>19. Counterparts</U>.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR></P>
<P style="PADDING-LEFT: 48px; FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 12pt"
align=justify>This Agreement may be executed in any number of counterparts and
each of such counterparts shall for all purposes be deemed to be an original,
and such counterparts shall together constitute but one and the same
instrument.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5px; LINE-HEIGHT: 12pt"
align=justify>IN WITNESS WHEREOF, the parties hereto have caused this Warrant
Agreement to be duly executed, as of the day and year first above written.</P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 12pt">COMPANY</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 12pt">ABLEAUCTIONS.COM,
INC.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt"><BR></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt"><BR></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 12pt">By:<U> /S/
</U><I><U>Abdul Ladha</U></I><U>___________________</U></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 12pt">Name: &nbsp;Abdul
Ladha</P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5px; LINE-HEIGHT: 12pt">Title:
&nbsp;Chief Executive Officer and President</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 12pt">LADHA:</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt"><BR></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt"><BR></P>
<P
style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 12pt">____________________________________</P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5px; LINE-HEIGHT: 12pt">Abdul
Ladha</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 5px; LINE-HEIGHT: 12pt"
align=center><BR><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5px; PAGE-BREAK-BEFORE: always; LINE-HEIGHT: 12pt"
align=center><B><U>EXHIBIT A</U></B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 5px; LINE-HEIGHT: 12pt"
align=center><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 12pt; MARGIN-BOTTOM: 11px; LINE-HEIGHT: 12pt"
align=justify><B>NEITHER THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE
COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933 OR ANY APPLICABLE STATE SECURITIES LAWS. &nbsp;THEY MAY
NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED OR OTHERWISE TRANSFERRED
IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE
SECURITIES UNDER SUCH ACT OR AN EXEMPTION THEREFROM. &nbsp;ANY SUCH TRANSFER MAY
ALSO BE SUBJECT TO APPLICABLE STATE SECURITIES LAWS.</B></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><B>THIS
CERTIFICATE IS ISSUED SUBJECT TO THE PROVISIONS OF A WARRANT AGREEMENT DATED AS
OF AUGUST 19, 2008, AS THE SAME MAY BE AMENDED FROM TIME TO TIME, AND ANY
TRANSFEREE OF THIS CERTIFICATE OR OF THE SHARES ISSUABLE UPON EXERCISE OF IT
SHALL BE BOUND BY THE PROVISIONS OF SAID AGREEMENT, A COPY OF WHICH IS ON FILE
WITH, AND AVAILABLE FROM, THE SECRETARY OF THE COMPANY.</B></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 12pt"
align=center>EXERCISABLE ON OR BEFORE</P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 12pt" align=center>5:00
P.M., PACIFIC TIME, AUGUST 18, 2013</P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 12pt">No. AB-2</P>
<P
style="FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: 423px; LINE-HEIGHT: 12pt">7,200,000
Warrants</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt"><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 12pt; MARGIN-BOTTOM: 11px; LINE-HEIGHT: 12pt"
align=center>WARRANT CERTIFICATE</P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 12pt"
align=justify>This Warrant Certificate certifies that Abdul Ladha or his
registered assigns is the registered holder of 7,200,000 Warrants to purchase,
at any time from August 19, 2008 until 5:00 p.m. Pacific time on August 18, 2013
(&#147;Expiration Date&#148;) up to 7,200,000 shares (&#147;Shares&#148;) of fully-paid and
nonassessable common stock, par value $0.001 per share (&#147;Common Stock&#148;), of
Ableauctions.com, Inc., a Florida corporation (the &#147;Company&#148;), at the initial
exercise price, subject to adjustment in certain events (the &#147;Exercise Price&#148;),
of $0.09 per Share upon surrender of this Warrant Certificate and payment of the
Exercise Price at an office or agency of the Company, but subject to the
conditions set forth herein and in the warrant agreement dated as of August 19,
2008 (&#147;Warrant Agreement&#148;) between the Company and Abdul Ladha. &nbsp;Payment of
the Exercise Price may be made in cash, by certified or official bank check in
immediately available funds payable to the order of the Company, or any
combination of cash or check.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 12pt"
align=justify>No Warrant may be exercised after 5:00 p.m. Pacific time, on the
Expiration Date, at which time all Warrants evidenced hereby, unless exercised
prior thereto, shall thereafter be void.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 12pt"
align=justify>The Warrants evidenced by this Warrant Certificate are part of a
duly authorized issue of Warrants issued pursuant to the Warrant Agreement,
which Warrant Agreement is hereby incorporated by reference in and made a part
of this instrument and is hereby referred to as a description of the rights,
limitation of rights, obligations, duties and immunities thereunder of the
Company and the Holders (the words &#147;Holders&#148; or &#147;Holder&#148; meaning the registered
holders or registered holder) of the Warrants.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 12pt"
align=justify>The Warrant Agreement provides that upon the occurrence of certain
events, the Exercise Price and/or number of the Company&#146;s securities issuable
thereupon may, subject to certain conditions, be adjusted. &nbsp;In such event,
the Company will, at the request of the Holder, issue a new Warrant Certificate
evidencing the adjustment in the Exercise Price and the number and/or type of
securities issuable upon the exercise of the </P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P
style="FONT-SIZE: 12pt; PAGE-BREAK-BEFORE: always; MARGIN: 0px; LINE-HEIGHT: 12pt"
align=justify>Warrants; provided, however, that the failure of the Company to
issue such new Warrant Certificates shall not in any way change, alter, or
otherwise impair, the rights of the Holder as set forth in the Warrant
Agreement.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 12pt"
align=justify>Upon due presentment for registration of transfer of this Warrant
Certificate at an office or agency of the Company, a new Warrant Certificate or
Warrant Certificates of like tenor and evidencing in the aggregate a like number
of Warrants shall be issued to the transferee(s) in exchange for this Warrant
Certificate, subject to the limitations provided herein and in the Warrant
Agreement, without any charge except for any tax or other governmental charge
imposed in connection therewith.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 12pt"
align=justify>Upon the exercise of less than all of the Warrants evidenced by
this Certificate, the Company shall forthwith issue to the Holder hereof a new
Warrant Certificate representing such number of unexercised Warrants.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 12pt"
align=justify>The Company may deem and treat the registered Holder(s) hereof as
the absolute owner(s) of this Warrant Certificate (notwithstanding any notation
of ownership or other writing hereon made by anyone), for the purpose of any
exercise hereof, and of any distribution to the Holder(s) hereof, and for all
other purposes, and the Company shall not be affected by any notice to the
contrary.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 12pt"
align=justify>All terms used in this Warrant Certificate which are defined in
the Warrant Agreement shall have the meanings assigned to them in the Warrant
Agreement.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 12pt"
align=justify>IN WITNESS WHEREOF, the Company has caused this Warrant
Certificate to be duly executed under its corporate seal.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 12pt">Dated: August 19,
2008</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 12pt">ABLEAUCTIONS.COM,
INC.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt"><BR></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt"><BR></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 12pt">By:<U>/S/
</U><I><U>Abdul Ladha____________________</U></I></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 12pt">Name: &nbsp;Abdul
Ladha</P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 12pt">Title: &nbsp;Chief
Executive Officer and President</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=right><BR><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px; LINE-HEIGHT: 12pt"
align=right><BR></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt"><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 12pt; MARGIN-BOTTOM: 11px; LINE-HEIGHT: 12pt"
align=center><B><U>EXHIBIT B</U></B></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 12pt; MARGIN-BOTTOM: 11px; LINE-HEIGHT: 12pt">FORM
OF ELECTION TO PURCHASE</P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5px; LINE-HEIGHT: 12pt">The
undersigned registered owner of the attached Warrant Certificate hereby
irrevocably elects to exercise the right, represented by such Warrant
Certificate, to purchase <B>_______</B> Shares and herewith tenders in payment
for such Shares cash or a certified or official bank check payable in
immediately available funds to the order of Ableauctions.com, Inc. in the amount
of $_______ all in accordance with Section 3.1 of the Warrant Agreement.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 11px; LINE-HEIGHT: 12pt"><BR></P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0>
<TR style="DISPLAY: none; FONT-SIZE: 0px" height=0>
<TD width=277></TD>
<TD width=360></TD></TR>
<TR>
<TD width=277>
<P>&nbsp;</P></TD>
<TD width=360>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=277>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 12pt">Dated:</P></TD>
<TD vAlign=top width=360>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 12pt">Name of
Registered Owner</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 12pt">Signature of
Registered Owner</P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 12pt">(Signature must
conform in all respects to name of Holder as specified on the face of the
Warrant Certificate.)</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 12pt">Street
Address</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 12pt">City, State,
Zip</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 12pt">IRS
Identification Number/Social Security Number</P></TD></TR></TABLE>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt"><BR></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=center><BR><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P
style="FONT-SIZE: 12pt; PAGE-BREAK-BEFORE: always; MARGIN: 0px; LINE-HEIGHT: 12pt"
align=center><B><U>EXHIBIT C</U></B></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=center><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 12pt; MARGIN-BOTTOM: 11px; LINE-HEIGHT: 12pt">FORM
OF ASSIGNMENT</P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5px; LINE-HEIGHT: 12pt"
align=justify>(To be executed by the registered Holder if such Holder desires to
transfer the Warrant Certificate.)</P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5px; LINE-HEIGHT: 12pt"
align=justify>FOR VALUE RECEIVED, the undersigned registered owner of the
attached Warrant Certificate hereby sells, assigns and transfers unto the
Assignee named below all of the rights, title and interest therein of the
undersigned under the within Warrant, with respect to the number of shares of
Common stock set forth below:</P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0>
<TR style="DISPLAY: none; FONT-SIZE: 0px" height=0>
<TD width=212></TD>
<TD width=212></TD>
<TD width=212></TD></TR>
<TR>
<TD width=212>
<P>&nbsp;</P></TD>
<TD width=212>
<P>&nbsp;</P></TD>
<TD width=212>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top width=212>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 12pt"><U>NAME OF
ASSIGNEE</U></P></TD>
<TD vAlign=top width=212>
<P
style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 12pt"><U>ADDRESS</U></P></TD>
<TD vAlign=top width=212>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 12pt"><U>NUMBER OF
SHARES</U></P></TD></TR>
<TR>
<TD vAlign=top width=212>
<P
style="MARGIN-TOP: 6px; FONT-SIZE: 12pt; MARGIN-BOTTOM: 6px">&nbsp;</P></TD>
<TD vAlign=top width=212>
<P
style="MARGIN-TOP: 6px; FONT-SIZE: 12pt; MARGIN-BOTTOM: 6px">&nbsp;</P></TD>
<TD vAlign=top width=212>
<P
style="MARGIN-TOP: 6px; FONT-SIZE: 12pt; MARGIN-BOTTOM: 6px">&nbsp;</P></TD></TR></TABLE>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt"><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 12pt; MARGIN-BOTTOM: 11px; LINE-HEIGHT: 12pt"
align=justify>and does hereby irrevocably constitute and appoint
__________________________, Attorney, to transfer the within Warrant on the
books of Ableauctions.com, Inc., maintained for the purpose, with full power of
substitution in the premises. &nbsp;The undersigned understand that compliance
with the provisions of the Warrant is necessary to effect any assignment or
transfer. </P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12pt" align=justify><BR></P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0>
<TR style="DISPLAY: none; FONT-SIZE: 0px" height=0>
<TD width=277></TD>
<TD width=354></TD></TR>
<TR>
<TD vAlign=top width=277>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 12pt">Dated:</P></TD>
<TD vAlign=top width=354>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 12pt">Signature of
Registered Owner</P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 12pt">(Signature must
conform in all respects to name of Holder as specified on the face of the
Warrant Certificate.)</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 12pt">Name of
Registered Owner</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 12pt">IRS
Identification Number/Social Security Number</P></TD></TR></TABLE>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN: 0px"><BR></P></BODY>
<!-- EDGAR Validation Code: C4ECC4EC -->
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Ableauctions.com, Inc. August 26, 2008
UNITED STATES
SECURITIES AND EXCHANGE
COMMISSION
Washington, DC
 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or
15 (d) of the Securities Exchange Act of 1934
Date of Report (Date of
earliest event reported):  August 26, 2008 (August 19, 2008)
ABLEAUCTIONS.COM,
INC.
(Exact name of Registrant
as specified in charter)
Florida
000-28179
59-3404233
(State or other
jurisdiction of incorporation)
(Commission File
Number)
(IRS Employer
Identification Number)
1963 Lougheed
Highway
Coquitlam, British
Columbia Canada
(Address of principal
executive offices)
Registrant's telephone number, including
area code:  604-521-3369
Check the appropriate box below if the Form
8-K filing is intended to simultaneously satisfy the filing obligation of the
Registrant under any of the following provisions (see General Instruction A.2
below).
[  ] Written communications pursuant to Rule 425
under the Securities Act (17 CFR 230.425)
[  ] Soliciting material pursuant to Rule 14a-12
under the Exchange Act (17 CFR240.14a-12)
[  ] Pre-commencement communications pursuant to
Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)).
[  ] Pre-commencement communications pursuant to
Rule 13e-4(c) under the Exchange Act (17 CFR 240.13(e)-4(c))
Item 1.01. Entry into a Material
Definitive Agreement.
The
following discussion provides only a brief description of the documents
described below.  The discussion is qualified in its entirety by the full
text of the agreements.
On
August 19, 2008 Abdul Ladha, our Chief Executive Officer, President, Chief
Financial Officer and a director, entered into an Agreement to Convert Debt (the
"Agreement") with us.  Pursuant to the Agreement, Mr. Ladha agreed to
accept units consisting of 1 share of our common stock and a warrant to purchase
1.5 shares of our common stock as partial payment of certain loans made to us.
 On July 15, 2008, Mr. Ladha loaned us $124,762.95 in principal amount and
on July 24, 2008 Mr. Ladha loaned us $374,288.85 in principal amount.  The
loans bear interest at the prime rate as announced by Royal Bank of Canada plus
1% and are due on demand.  Pursuant to the Agreement, Mr. Ladha will accept
units consisting of 4,800,000 shares of common stock and a warrant for the
purchase of 7,200,000 shares of common stock as full payment of $384,000 in
principal amount of the loans.  The number of units to be issued was
computed by using the last sale price of our common stock on Tuesday, August 19,
2008, which was $0.08.  The warrant exercise price is $0.09 and the warrant
term is 5 years.  The average adjusted closing price of the stock for the
last 60 days prior to August 19, 2008 is $0.074.
The
units shall be issued to Mr. Ladha immediately following approval of our
additional listing application by the American Stock Exchange.
Item 3.02. Unregistered Sales of
Equity Securities.
Please
see the description included in Item 1.01 above.  We relied on Section 4(2)
of the Securities Act of 1933 to make this offering inasmuch as Mr. Ladha, an
affiliate, is the only purchaser of the securities.
Item 9.01 Financial Statements and
Exhibits.
Exhibit 10.1
Agreement to Convert Debt dated August 19, 2008
Exhibit 10.2 Warrant
Agreement
SIGNATURES
Pursuant to the
requirements of the Securities Exchange Act of 1934, the Registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly
authorized.
ABLEAUCTIONS.COM, INC.
/s/
Abdul
Ladha__________________
Abdul Ladha, Chief Executive Officer
Dated:  August 26, 2008
Exhibit 10.1
AGREEMENT TO CONVERT
DEBT
This Agreement to Convert Debt (the
"Agreement") is made on this 19th day of August 2008 (the "Effective Date") by
and between Abdul Ladha ("Ladha") and Ableauctions.com, Inc. (the
"Company").
RECITALS
A.
Ladha is the chief executive officer, president, chief financial officer and a
director of the Company.
B.
As of the Effective Date, the Company owes Ladha the sum of $501,369.31 in
loans, representing $499,051.80 in principal amount and $2,317.51 in accrued
interest (the "Loans").
C.
At the request of the Company, Ladha has agreed to accept payment of $384,000 in
principal amount of the Loans (the "Partial Payment") in accordance with the
terms of this Agreement.
Now, therefore, the parties agree as
follows:
AGREEMENT
1. The Partial Payment.
The
Company will pay the Partial Payment, and Ladha will accept as payment of the
Partial Payment, units consisting of one share of the Company's common stock,
$0.001 par value, and warrants for the purchase of 1.5 shares of the Company's
common stock.  The warrants will have a term of 5 years and an exercise
price which is $0.01 higher than the per share value of the common stock used to
compute the number of units to be issued.
2. Comp
utation of Units to be
Issued.
The
per share value of the common stock used to compute the number of units to be
issued will be the last sale price of the common stock on the date on which the
Company's Audit Committee and its Board of Directors approves this
Agreement.
3. Issuance of Units.
The
units shall be issued to Ladha immediately following approval of the Company's
additional listing application by the American Stock Exchange.
4. Relinquishment of Right to Receive Cash.
By
executing this Agreement, Ladha agrees that he shall not have any further right
to demand payment of the Partial Payment with cash.  Upon issuance of the
units in accordance with this Agreement, the portion of the Loans represented by
the Partial Payment will be paid in full.
5. No Modification to Loans.
Ladha
and the Company agree that the remaining terms and conditions of the Loans are
not modified or changed by the payment made pursuant to this Agreement.
6. Miscellaneous.
(a)
Cooperation.
Subsequent to the payment contemplated herein, Ladha and
the Company agree, without further consideration, to cooperate and diligently
perform any further acts, deeds and things, and to execute and deliver any
documents that may be reasonably necessary or otherwise reasonably required to
consummate, evidence, confirm and/or carry out the intent and provisions of this
Agreement, all without undue delay or expense.
(b)
Entire Agreement/No Collateral Representations.
Ladha and the
Company expressly acknowledge and agree that this Agreement:  (1) is
the final, complete and exclusive statement of the agreement of each of them
with respect to the subject matter hereof; (2) supersedes any prior or
contemporaneous agreements, communications, discussions, promises,
representations, understandings, conduct, acts, courses of dealing, warranties,
interpretations or terms of any kind, whether oral or written (collectively and
severally, the
"prior agreements
"), and that any such prior agreements
are of no force or effect except as expressly set forth herein; and (3) may not
be varied, supplemented or contradicted by evidence of prior agreements, or by
evidence of subsequent oral agreements.
(c)
Amendment; Waiver; Forbearance.
Except as expressly provided
otherwise herein, neither this Agreement nor any of the terms, provisions,
obligations or rights contained herein, may be amended, modified, supplemented,
augmented, rescinded, discharged or terminated (other than by performance),
except by a written instrument or instruments signed by all of the parties to
this Agreement.  Except to the extent that the party or parties
claimed to have given or consented to a waiver may have otherwise agreed in
writing, no such waiver shall be deemed a waiver or relinquishment of any other
term, provision, agreement, act, obligation or right granted under this
Agreement.
(d)
Severability.
If any term or provision of this Agreement or
the application thereof to any person or circumstance shall, to any extent, be
determined to be invalid, illegal or unenforceable under present or future laws,
then, and in that event:  (1) the performance of the offending term or
provision (but only to the extent its application is invalid, illegal or
unenforceable) shall be excused as if it had never been incorporated into this
Agreement, and, in lieu of such excused provision, there shall be added a
provision as similar in terms and amount to such excused provision as may be
possible and be legal, valid and enforceable; and (2) the remaining part of this
Agreement (including the application of the offending term or provision to
persons or circumstances other than those as to which it is held invalid,
illegal or unenforceable) shall not be affected thereby, and shall continue in
full force and effect to the fullest extent provided by law.
(e)
Parties in Interest.
Notwithstanding anything else to the
contrary herein, nothing in this Agreement shall confer any rights or remedies
under or by reason of this Agreement on any persons other than the parties
hereto and their respective successors and assigns, if any.
(f) Enforcement.
This Agreement shall be
construed and enforced in accordance with the laws of British Columbia,
Canada.
(g)
Counterparts.
This Agreement may be executed in counterparts,
each of which shall be deemed an original, and all of which together shall
constitute one and the same instrument, binding on all parties
hereto.  Any signature page of this Agreement may be detached from any
counterpart of this Agreement and reattached to any other counterpart of this
Agreement identical in form hereto by having attached to it one or more
additional signature pages.
WHEREFORE
, Ladha
and the Company have executed this Agreement in the City of Coquitlam, British
Columbia.
"Ladha"
________________________________
Abdul Ladha
"Company"
Ableauctions.com,
Inc.
By:
_/S/
Abdul Ladha
________________
Abdul
Ladha, Chief Executive Officer
Exhibit 10.2
WARRANT AGREEMENT
WARRANT AGREEMENT (this
"Agreement") dated as of August 19, 2008, between Ableauctions.com, Inc., a
Florida corporation (the "Company"), and Abdul Ladha, an individual
("Ladha").
W I T N E S S E T
H:
WHEREAS, the Company
proposes to issue to Ladha warrants ("Warrants") to purchase up to an aggregate
of 7,200,000 shares (the "Shares") of common stock of the Company, par value
$0.001 per share (the "Common Stock"); and
WHEREAS, the Warrants
issued pursuant to this Agreement are being issued by the Company to Ladha in
conjunction with the execution of that certain Agreement to Convert Debt of even
date herewith between the Company and Ladha;
NOW, THEREFORE, in
consideration of the foregoing premises, the agreements herein set forth and
other good and valuable consideration the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:
1. Grant.
Subject to approval of the Additional Listing Application to be
submitted to the American Stock Exchange, Ladha is hereby granted the right to
purchase, at any time from August 19, 2008 until 5:00 p.m. Pacific time on
August 18, 2013 (the "Warrant Exercise Term"), up to an aggregate of 7,200,000
Shares at the exercise price (subject to adjustment as provided in
Section
7
hereof) of $0.09 per Share.
2. Warrant Certificates
.
The warrant certificates (the "Warrant Certificates") delivered
and to be delivered pursuant to this Agreement shall be in the form set forth as
Exhibit A
attached hereto and made a part hereof, with such appropriate
insertions, omissions, substitutions and other variations as required or
permitted by this Agreement.
3. Exercise of Warrants
.
The Warrants are exercisable at a price of $0.09 per Share,
payable in cash or by check to the order of the Company, or any combination of
cash or check, subject to adjustment as provided in
Section 7
hereof.
 Upon surrender of the Warrant Certificate with the duly executed Form of
Election to Purchase in the form set forth on
Exhibit B
attached hereto
and made a part hereof, together with payment of the Exercise Price (as
hereinafter defined) for the Shares purchased at the Company's principal
offices, currently located at 1963 Lougheed Highway, Suite 200, Coquitlam,
British Columbia, the registered holder of a Warrant Certificate ("Holder" or
"Holders") shall be entitled to receive a certificate or certificates for the
Shares so purchased.  The purchase rights represented by each Warrant
Certificate are exercisable at the option of the Holder thereof, in whole or in
part (but not as to fractional shares of the Common Stock underlying the
Warrants).  In the case of the purchase of less than all the Shares
purchasable under any Warrant Certificate, the Company shall cancel said Warrant
Certificate upon the surrender thereof and shall execute and deliver a new
Warrant Certificate of like tenor for the balance of the Shares purchasable
thereunder.
4.
Issuance of Certificates
.
4.1 Issuance
.
Upon the exercise of the Warrants, the issuance of certificates
for the Shares shall be made forthwith (and in any event within 5 business days
thereafter) without any charge to the Holder thereof including, without
limitation, any tax (other than income taxes) which may be payable in respect of
the issuance thereof, and such certificates shall (subject to the provisions of
Section 5
hereof) be issued in the name of, or in such names as may be
directed by, the Holder thereof; provided however, that the Company shall not be
required to pay any tax which may be payable in respect of any transfer involved
in the issuance and delivery of any such certificates in a name other than that
of the Holder and the Company shall not be required to issue or deliver such
certificates unless or until the person or persons requesting the issuance
thereof shall have paid to the Company the amount of such tax or shall have
established to the satisfaction of the Company that such tax has been paid.
4.2 Form of Certificates
.
The Warrant Certificates and certificates representing the Shares
shall be executed on behalf of the Company by such officer or officers as are
permitted or required to execute such certificates on behalf of the Company by
the Company's by-laws and applicable law.  Warrant Certificates shall be
dated the date of execution by the Company upon initial issuance, division,
exchange, substitution or transfer.  The Warrant Certificates shall bear a
legend substantially similar to the following:
NEITHER THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE
COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933 OR ANY APPLICABLE STATE SECURITIES LAWS.  THEY MAY
NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED OR OTHERWISE TRANSFERRED
IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE
SECURITIES UNDER SUCH ACT OR AN EXEMPTION THEREFROM.  ANY SUCH TRANSFER MAY
ALSO BE SUBJECT TO APPLICABLE STATE SECURITIES LAWS.
THIS CERTIFICATE IS ISSUED SUBJECT TO THE PROVISIONS OF A WARRANT
AGREEMENT DATED AS OF AUGUST 19, 2008, AS THE SAME MAY BE AMENDED FROM TIME TO
TIME, AND ANY TRANSFEREE OF THIS CERTIFICATE OR OF THE SHARES ISSUABLE UPON
EXERCISE OF IT SHALL BE BOUND BY THE PROVISIONS OF SAID AGREEMENT, A COPY OF
WHICH IS ON FILE WITH, AND AVAILABLE FROM, THE SECRETARY OF THE COMPANY.
Upon exercise of the Warrants, in part or in whole, certificates
representing the Shares issued upon such exercise shall bear a legend
substantially similar to the following:
THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933 OR ANY APPLICABLE STATE SECURITIES
LAWS.  THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED OR
OTHERWISE TRANSFERRED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH
RESPECT TO THE SECURITIES UNDER SUCH ACT OR AN EXEMPTION THEREFROM.  ANY
SUCH TRANSFER MAY ALSO BE SUBJECT TO APPLICABLE STATE SECURITIES LAWS.
THIS CERTIFICATE IS ISSUED SUBJECT TO THE PROVISIONS OF A WARRANT
AGREEMENT DATED AS OF AUGUST 19, 2008, AS THE SAME MAY BE AMENDED FROM TIME TO
TIME, AND ANY TRANSFEREE OF THIS CERTIFICATE SHALL BE BOUND BY THE PROVISIONS OF
SAID AGREEMENT, A COPY OF WHICH IS ON FILE WITH, AND AVAILABLE FROM, THE
SECRETARY OF THE COMPANY.
5. Restriction on Transfer of Warrants
.
The Holder of a Warrant Certificate, by its acceptance thereof,
covenants and agrees that the Warrants are being acquired, and any Shares will
be acquired, as an investment and not with a view to the distribution thereof,
and that the Warrants and Shares may not be sold, transferred, assigned,
hypothecated or otherwise disposed of, in whole or in part, except pursuant to
an effective registration statement under the Securities Act of 1933, as amended
(the "Act") or an applicable exemption from the registration requirements
thereof.  In connection with the transfer or exercise of Warrants, the
transferee and Holder must agree to execute any documents which may be
reasonably required by counsel to the Company to comply with the provisions of
the Act and applicable state securities laws.
6. Price
.
6.1 Initial and Adjusted Exercise Price
.
The initial exercise price of each Warrant shall be $0.20 per
Share.  The adjusted exercise price shall be the price which shall result
from time to time from any and all adjustments of the initial exercise price in
accordance with the provisions of
Section 7
hereof.
6.2 Exercise Price
.
The term "Exercise Price" herein shall mean the initial exercise
price or the adjusted exercise price, depending upon the context.
7. Adjustments of Exercise Price and Number of Shares
.
If outstanding shares of the Company's Common Stock shall be
subdivided into a greater number of shares or a dividend in Common Stock shall
be paid in respect of Common Stock, the Exercise Price in effect immediately
prior to such subdivision or at the record date of such dividend shall
simultaneously with the effectiveness of such subdivision or immediately after
the record date of such dividend be proportionately reduced.  If
outstanding shares of Common Stock shall be combined into a smaller number of
shares, the Exercise Price in effect immediately prior to such combination
shall, simultaneously with the effectiveness of such combination, be
proportionately increased.  When any adjustment is required to be made in
the Exercise Price, the number of Shares purchasable upon the exercise of this
Warrant shall be changed to the number determined by dividing (i) an amount
equal to the number of shares issuable upon the exercise of this Warrant
immediately prior to such adjustment, multiplied by the Exercise Price in effect
immediately prior to such adjustment, by (ii) the Exercise Price in effect
immediately after such adjustment.
8. Exchange and Replacement of Warrant Certificates
.
8.1
Exchange
.  Each Warrant Certificate is
exchangeable without expense, upon the surrender hereof by the registered Holder
at the principal executive office of the Company, for a new Warrant Certificate
of like tenor and date representing in the aggregate the right to purchase the
same number of Shares in such denominations as shall be designated by the Holder
thereof at the time of such surrender.
8.2
Replacement
.  Upon receipt by the Company of
evidence reasonably satisfactory to it of the loss, theft, destruction or
mutilation of any Warrant Certificate, and, in case of loss, theft or
destruction, of indemnity or security reasonably satisfactory to it, and
reimbursement to the Company of all reasonable expenses incidental thereto, and
upon surrender and cancellation of the Warrants, if mutilated, the Company will
make and deliver a new Warrant Certificate of like tenor, in lieu thereof.
9. Elimination of Fractional Interests
.
The Company shall not be required to issue certificates
representing fractions of shares of Common Stock and shall not be required to
issue scrip or pay cash in lieu of fractional interests, it being the intent of
the parties that all fractional interests shall be eliminated by rounding any
fraction up to the nearest whole number of shares of Common Stock.
10. Reservation and Listing of Securities
.
The Company shall at all times reserve and keep available out of
its authorized shares of Common Stock, solely for the purpose of issuance upon
the exercise of the Warrants, such number of shares of Common Stock as shall be
issuable upon the exercise thereof.  The Company covenants and agrees that,
upon exercise of the Warrants and payment of the Exercise Price thereof, all
shares of Common Stock issuable upon such exercise shall be duly and validly
issued, fully paid, non-assessable and not subject to the preemptive rights of
any shareholder.
11. Notices to Warrant Holders
.
Nothing contained in this Agreement shall be construed as
conferring upon the Holder or Holders the right to vote or to consent or to
receive notice as a shareholder in respect of any meetings of shareholders for
the election of directors or any other matter, or as having any rights
whatsoever as a shareholder of the Company.
12. Notices
.
All notices, requests, consents and other communications hereunder
shall be in writing and shall be deemed to have been duly made when delivered,
telecopied or mailed by registered or certified mail, return receipt
requested:
(a) If to a registered Holder of the Warrants, to the address of
such Holder as shown on the books of the Company; or
(b) If to the Company, to the address set forth in
Section
3
of this Agreement or to such other address as the Company may designate by
notice to the Holders.
13. Supplements and Amendments
.
The Company and Ladha may from time to time supplement or amend
this Agreement in order to cure any ambiguity, to correct or supplement any
provision contained herein which may be defective or inconsistent with any
provisions herein, or to make any other provisions in regard to matters or
questions arising hereunder which the Company and Ladha may deem necessary or
desirable.
14. Successors
.
All the covenants and provisions of this Agreement by or for the
benefit of the Company and the Holders inure to the benefit of their respective
successors and assigns hereunder.
15. Termination
.
This Agreement shall terminate at 5:00 p.m. Pacific time on August
18, 2013.
16. Governing Law
.
This Agreement and each Warrant Certificate issued hereunder shall
be deemed to be a contract made under the laws of British Columbia as applied to
agreements among British Columbia residents entered into and to be performed
entirely within British Columbia, without regard to the conflict of law
provisions thereof.
17. Benefits of This Agreement
.
Nothing in this Agreement shall be construed to give to any person
or corporation, other than the Company and Ladha and any other registered holder
or holders of the Warrant Certificates, Warrants or the Shares, any legal or
equitable right, remedy or claim under this Agreement; and this Agreement shall
be for the sole and exclusive benefit of the Company and Ladha and any other
holder or holders of the Warrant Certificates, Warrants or the Shares.
18. Preservation of Rights
.
The Company will not, by amendment of its articles of
incorporation or through any consolidation, merger, reorganization, transfer of
assets, dissolution, issue or sale of securities or any other voluntary action,
avoid or seek to avoid the observance or performance of any of the terms of this
Agreement or the Warrants or the rights represented hereby or thereby, but will
at all times in good faith assist in the carrying out of all such terms and in
the taking of all such actions as may be necessary or appropriate in order to
protect the rights of the Holders of the Warrants against dilution or other
impairment.
19. Counterparts
.
This Agreement may be executed in any number of counterparts and
each of such counterparts shall for all purposes be deemed to be an original,
and such counterparts shall together constitute but one and the same
instrument.
IN WITNESS WHEREOF, the parties hereto have caused this Warrant
Agreement to be duly executed, as of the day and year first above written.
COMPANY
ABLEAUCTIONS.COM,
INC.
By:
/S/
Abdul Ladha
___________________
Name:  Abdul
Ladha
Title:
 Chief Executive Officer and President
LADHA:
____________________________________
Abdul
Ladha
EXHIBIT A
NEITHER THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE
COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933 OR ANY APPLICABLE STATE SECURITIES LAWS.  THEY MAY
NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED OR OTHERWISE TRANSFERRED
IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE
SECURITIES UNDER SUCH ACT OR AN EXEMPTION THEREFROM.  ANY SUCH TRANSFER MAY
ALSO BE SUBJECT TO APPLICABLE STATE SECURITIES LAWS.
THIS
CERTIFICATE IS ISSUED SUBJECT TO THE PROVISIONS OF A WARRANT AGREEMENT DATED AS
OF AUGUST 19, 2008, AS THE SAME MAY BE AMENDED FROM TIME TO TIME, AND ANY
TRANSFEREE OF THIS CERTIFICATE OR OF THE SHARES ISSUABLE UPON EXERCISE OF IT
SHALL BE BOUND BY THE PROVISIONS OF SAID AGREEMENT, A COPY OF WHICH IS ON FILE
WITH, AND AVAILABLE FROM, THE SECRETARY OF THE COMPANY.
EXERCISABLE ON OR BEFORE
5:00
P.M., PACIFIC TIME, AUGUST 18, 2013
No. AB-2
7,200,000
Warrants
WARRANT CERTIFICATE
This Warrant Certificate certifies that Abdul Ladha or his
registered assigns is the registered holder of 7,200,000 Warrants to purchase,
at any time from August 19, 2008 until 5:00 p.m. Pacific time on August 18, 2013
("Expiration Date") up to 7,200,000 shares ("Shares") of fully-paid and
nonassessable common stock, par value $0.001 per share ("Common Stock"), of
Ableauctions.com, Inc., a Florida corporation (the "Company"), at the initial
exercise price, subject to adjustment in certain events (the "Exercise Price"),
of $0.09 per Share upon surrender of this Warrant Certificate and payment of the
Exercise Price at an office or agency of the Company, but subject to the
conditions set forth herein and in the warrant agreement dated as of August 19,
2008 ("Warrant Agreement") between the Company and Abdul Ladha.  Payment of
the Exercise Price may be made in cash, by certified or official bank check in
immediately available funds payable to the order of the Company, or any
combination of cash or check.
No Warrant may be exercised after 5:00 p.m. Pacific time, on the
Expiration Date, at which time all Warrants evidenced hereby, unless exercised
prior thereto, shall thereafter be void.
The Warrants evidenced by this Warrant Certificate are part of a
duly authorized issue of Warrants issued pursuant to the Warrant Agreement,
which Warrant Agreement is hereby incorporated by reference in and made a part
of this instrument and is hereby referred to as a description of the rights,
limitation of rights, obligations, duties and immunities thereunder of the
Company and the Holders (the words "Holders" or "Holder" meaning the registered
holders or registered holder) of the Warrants.
The Warrant Agreement provides that upon the occurrence of certain
events, the Exercise Price and/or number of the Company's securities issuable
thereupon may, subject to certain conditions, be adjusted.  In such event,
the Company will, at the request of the Holder, issue a new Warrant Certificate
evidencing the adjustment in the Exercise Price and the number and/or type of
securities issuable upon the exercise of the
Warrants; provided, however, that the failure of the Company to
issue such new Warrant Certificates shall not in any way change, alter, or
otherwise impair, the rights of the Holder as set forth in the Warrant
Agreement.
Upon due presentment for registration of transfer of this Warrant
Certificate at an office or agency of the Company, a new Warrant Certificate or
Warrant Certificates of like tenor and evidencing in the aggregate a like number
of Warrants shall be issued to the transferee(s) in exchange for this Warrant
Certificate, subject to the limitations provided herein and in the Warrant
Agreement, without any charge except for any tax or other governmental charge
imposed in connection therewith.
Upon the exercise of less than all of the Warrants evidenced by
this Certificate, the Company shall forthwith issue to the Holder hereof a new
Warrant Certificate representing such number of unexercised Warrants.
The Company may deem and treat the registered Holder(s) hereof as
the absolute owner(s) of this Warrant Certificate (notwithstanding any notation
of ownership or other writing hereon made by anyone), for the purpose of any
exercise hereof, and of any distribution to the Holder(s) hereof, and for all
other purposes, and the Company shall not be affected by any notice to the
contrary.
All terms used in this Warrant Certificate which are defined in
the Warrant Agreement shall have the meanings assigned to them in the Warrant
Agreement.
IN WITNESS WHEREOF, the Company has caused this Warrant
Certificate to be duly executed under its corporate seal.
Dated: August 19,
2008
ABLEAUCTIONS.COM,
INC.
By:
/S/
Abdul Ladha____________________
Name:  Abdul
Ladha
Title:  Chief
Executive Officer and President
EXHIBIT B
FORM
OF ELECTION TO PURCHASE
The
undersigned registered owner of the attached Warrant Certificate hereby
irrevocably elects to exercise the right, represented by such Warrant
Certificate, to purchase
_______
Shares and herewith tenders in payment
for such Shares cash or a certified or official bank check payable in
immediately available funds to the order of Ableauctions.com, Inc. in the amount
of $_______ all in accordance with Section 3.1 of the Warrant Agreement.
Dated:
Name of
Registered Owner
Signature of
Registered Owner
(Signature must
conform in all respects to name of Holder as specified on the face of the
Warrant Certificate.)
Street
Address
City, State,
Zip
IRS
Identification Number/Social Security Number
EXHIBIT C
FORM
OF ASSIGNMENT
(To be executed by the registered Holder if such Holder desires to
transfer the Warrant Certificate.)
FOR VALUE RECEIVED, the undersigned registered owner of the
attached Warrant Certificate hereby sells, assigns and transfers unto the
Assignee named below all of the rights, title and interest therein of the
undersigned under the within Warrant, with respect to the number of shares of
Common stock set forth below:
NAME OF
ASSIGNEE
ADDRESS
NUMBER OF
SHARES
and does hereby irrevocably constitute and appoint
__________________________, Attorney, to transfer the within Warrant on the
books of Ableauctions.com, Inc., maintained for the purpose, with full power of
substitution in the premises.  The undersigned understand that compliance
with the provisions of the Warrant is necessary to effect any assignment or
transfer.
Dated:
Signature of
Registered Owner
(Signature must
conform in all respects to name of Holder as specified on the face of the
Warrant Certificate.)
Name of
Registered Owner
IRS
Identification Number/Social Security Number