Securities Law & Instruments

INTHE MATTER OF

THESECURITIES ACT

R.S.O.1990, c. S.5, as amended

AND

INTHE MATTER OF

GORDON SCOTT PATERSON

ORDER

(Section127)

WHEREASon December 17, 2001 the Ontario Securities Commission (the"Commission") issued a Notice of Hearing pursuant to sections127(1) and 127.1 of the Securities Act, R.S.O. 1990 c. S.5,as amended (the "Act") in respect of Gordon Scott Paterson ("Paterson");

ANDWHEREAS Paterson entered into a settlement agreementdated December 17, 2001 (the "Settlement Agreement") in whichhe agreed to a proposed settlement of the proceeding, subjectto the approval of the Commission.

ANDWHEREAS the Commission made an Order on December 19,2001 (the "December Order"), a true copy of which is attachedhereto as Schedule "A";

ANDWHEREAS paragraph 3 of the December Order containsa typographical error and should be amended to read as follows:

Pursuant to clause 2 of subsection 127(1) of the Act, effective45 days from the date of this Order made on December 19, 2001,Paterson is prohibited from trading in securities for a periodof six months, with the exception of any sale by Paterson ofPaterson's current interest in Yorkton.

ANDWHEREAS Staff of the Commission and the respondent,Gordon Scott Paterson, by his counsel, consent to this Order;

ANDWHEREAS by Commission Order made March 9, 2001, pursuantto section 3.5(3) of the Act, any one of David A. Brown, HowardWetston or Paul Moore, acting alone, is authorized to make Orderson consent under section 127 of the Act;

ANDWHEREAS the Commission is of the opinion that it isin the public interest to make this Order;

ITIS HEREBY ORDERED THAT:

1.Paragraph 3 of the December Order, attached hereto as Schedule"A", be amended to read as follows:

Pursuant to clause 2 of subsection 127(1) of the Act, effective45 days from the date of this Order made on December 19, 2001,Paterson is prohibited from trading in securities for a periodof six months, with the exception of any sale by Paterson ofPaterson's current interest in Yorkton.

2.All other terms of the December Order be and hereby remain thesame.

January14, 2002.

"HowardWetston"



Schedule"A"


INTHE MATTER OF

THESECURITIES ACT

R.S.O.1990, c. S.5, as amended

AND

INTHE MATTER OF

GORDONSCOTT PATERSON

ORDER

WHEREASon December 17, 2001, the Ontario Securities Commission (the"Commission") issued a Notice of Hearing pursuant to sections127(1) and 127.1 of the Securities Act, R.S.O. 1990 c. S.5,as amended (the "Act") in respect of Gordon Scott Paterson ("Paterson");

ANDWHEREAS Paterson entered into a settlement agreementdated December 17, 2001 (the "Settlement Agreement") in whichhe agreed to a proposed settlement of the proceeding, subjectto the approval of the Commission.

ANDUPON reviewing the Settlement Agreement and the Statementof Allegations of Staff of the Commission ("Staff"), and uponhearing submissions from counsel for Paterson and from Staff;

ANDWHEREAS the Commission is of the opinion that it isin the public interest to make this Order;

ITIS HEREBY ORDERED THAT:

1.the Settlement Agreement dated December 17, 2001, attached tothis Order, is hereby approved;

2.pursuant to clause 1 of subsection 127(1) of the Act, effectivethe date of this Order, the registration of Paterson is suspendedfor a period of two years from the date of this Order;

3.pursuant to clause 2 of subsection 127(1) of the Act, effective45 days from the date of this Order, Paterson is prohibitedfrom trading in securities for a period of six months from thedate of this Order, with the exception of any sale by Patersonof Paterson's current interest in Yorkton;

4.pursuant to subsection 127(1)(6) of the Act, Paterson is herebyreprimanded; and

5.pursuant to subsection 127.1 of the Act, at the time of approvalof this settlement, Paterson is ordered to pay $100,000 to theCommission in respect of a portion of the Commission's costswith respect to this matter.

December19, 2001.

"HowardWetston"       "Theresa McLeod"       "Derek Brown"