# EDGAR Filing Document

**Accession Number:** 0001712949
**File Stem:** 0001104659-26-072818
**Filing Date:** 2026-6
**Character Count:** 1006915
**Document Hash:** b384442c18f80a5cfdab9a082f79d24a
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-26-072818.hdr.sgml**: 20260611

**ACCESSION NUMBER**: 0001104659-26-072818

**CONFORMED SUBMISSION TYPE**: 1-K

**PUBLIC DOCUMENT COUNT**: 49

**CONFORMED PERIOD OF REPORT**: 20240430

**FILED AS OF DATE**: 20260611

**DATE AS OF CHANGE**: 20260611

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Red Mountain Ventures Limited Partnership
- **CENTRAL INDEX KEY:** 0001712949
- **STANDARD INDUSTRIAL CLASSIFICATION:** HOTELS, ROOMING HOUSE, CAMPS & OTHER LODGING PLACES [7000]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 000000000
- **STATE OF INCORPORATION:** A1

**FILING VALUES:**
- **FORM TYPE:** 1-K
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 24R-00126
- **FILM NUMBER:** 261082445

**BUSINESS ADDRESS:**
- **STREET 1:** 1938-C COLUMBIA AVENUE, BOX 670
- **CITY:** ROSLAND
- **STATE:** A1
- **ZIP:** V0G 1Y0
- **BUSINESS PHONE:** (250) 368-1571

**MAIL ADDRESS:**
- **STREET 1:** 1938-C COLUMBIA AVENUE, BOX 670
- **CITY:** ROSLAND
- **STATE:** A1
- **ZIP:** V0G 1Y0

## Part

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 1-K**

**ANNUAL REPORT**

**For the Annual Period Ended April 30, 2024**

**RED MOUNTAIN VENTURES LIMITED PARTNERSHIP**

*(Exact name of registrant as specified in its charter)*

Commission File Number: 024-10729

---

| | |
|:---|:---|
| **Rossland, British Columbia** | **45-4862460** |
| (State or other jurisdiction of<br> incorporation or organization) | (I.R.S. Employer<br> Identification No.) |
| **1938-C Columbia Avenue, Box 670,**<br> **Rossland, British Columbia, Canada**<br> (Address of principal executive offices) | **V0G 1Y0**<br> (Zip Code) |

---

**(250) 362-7384**

(Registrant's telephone number, including area code)

**RED MOUNTAIN VENTURES LIMITED PARTNERSHIP**

**FOR THE YEAR ENDED APRIL 30, 2024**

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| | | **PAGE** |
| [Item 1.](#xx_001) | [Business](#xx_001) | [1](#xx_001) |
| [Item 2.](#xx_002) | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#xx_002) | [4](#xx_002) |
| [Item 3.](#xx_003) | [Directors and Officers](#xx_003) | [10](#xx_003) |
| [Item 4.](#xx_004) | [Security Ownership of Management and Certain Securityholders](#xx_004) | [12](#xx_004) |
| [Item 5.](#xx_005) | [Interest of Management and Others in Certain Transactions](#xx_005) | [13](#xx_005) |
| [Item 6.](#xx_006) | [Other Information](#xx_006) | [14](#xx_006) |
| [Item 7.](#xx_007) | [Financial Statements](#xx_007) | [18](#xx_007) |
| [Item 8.](#xx_008) | [Exhibits](#xx_008) | [19](#xx_008) |
|  | [Signatures](#xx_009) | [22](#xx_009) |

---

**PART II**

**INFORMATION TO BE INCLUDED IN REPORT**

**Forward-Looking Statements**

The following information may contain certain forward-looking statements. Forward-looking statements are statements that estimate the happening of future events and are not based on historical fact. Forward-looking statements may be identified by the use of forward-looking terminology, such as "may," "could," "expect," "estimate," "anticipate," "plan," "predict," "probable," "possible," "should," "continue," or similar terms, variations of those terms or the negative of those terms. The forward-looking statements specified in the following information have been compiled by our management on the basis of assumptions made by management and considered by management to be reasonable. Our future operating results, however, are impossible to predict and no representation, guaranty, or warranty is to be inferred from those forward-looking statements. *See Item 2 - Recent Trends, Risks and Uncertainties and the Risk Factors included in our Form-1A.*

**ITEM 1. BUSINESS**

Red Mountain Ventures Limited Partnership (the "**Partnership**") was formed on May 14, 2004 under the laws of British Columbia. The Partnership and its subsidiaries are a vertically integrated organization that owns and operates Red Mountain Resort and its various departments including, food and beverage, retail, ski and snowboard equipment rental, ski school, guest services, lift operations, marketing, maintenance and accounting. We also own and operate property management and real estate operations, which include land development and real estate sales.

Located at the tip of the Monashee Mountain range in central British Columbia, Red Mountain Resort is one of the last pristine and underdeveloped big-mountain ski resorts in North America. The mountain is a skier's paradise and beloved by a loyal following of outdoor enthusiasts. Red Mountain Resort has 3,000 vertical feet of skiing on five mountains, and a unique topography allowing 360 degree descents from Red, Granite and Grey peaks.

In addition to ski resort operations, Red Mountain Resort has and continues to develop activities for the other three seasons of the year and has extended the Red Mountain Resort brand to four-season activities. The Crescent, a 102-unit condominium located at the base of Red Mountain Resort opened in December 2024. In addition, RMR co-developed Nowhere Special Hostel, an 84-pillow hostel which opened in December 2018**.** In 2021, RMR developed and opened the Constella cabins and clubhouse, an on-mountain, seasonal (winter only) facility at the Resort offering overnight accommodation in six cabins and limited food & beverage service in the clubhouse.

**Our Subsidiaries**

We conducted our operations through the following subsidiaries, as of April 30, 2024. *See Item 6 – OTHER INFORMATION – Project Snow Transaction - for a description of significant changes to the ownership of various subsidiaries following the 2024 Annual Period (Project Snow Transactions).*

---

| | |
|:---|:---|
| ¨ | <u>RMR Acquisition Corp</u>*.* RMR Acquisition Corp. ("**RMR**"), formerly, our wholly owned subsidiary, owns the developable real estate around the base area of Red Mountain Resort. |

---

---

| | |
|:---|:---|
| ¨ | <u>Red Resort Limited Partnership</u>. Red Resort Limited Partnership (**"RRLP**"), is a wholly owned subsidiary of RMR and operates Red Mountain Resort. RRLP owns the assets related to our ski operations (buildings, lifts and associated equipment) and Constella cabins and clubhouse. |

---

---

| | |
|:---|:---|
| ¨ | <u>Leroi Acquisition Corp</u>*.* Leroi Acquisition Corp. ("**Leroi**") is a wholly owned subsidiary and operates a retail store and ski and snowboard equipment rental operations. |

---

---

| |
|:---|
| <u>Red Property Management Ltd</u>*.* Red Property Management Ltd. ("**RPML**"), formerly a wholly owned subsidiary of RMR and provides reservations and property management services for privately owned condominiums at the base of Red Mountain Resort and Nowhere Special Hostel. |
| <u>That Seventies Project Limited Partnership / That Seventies Project Development Ltd.</u>: That Seventies Project Limited Partnership beneficially owns property near the base of Red Mountain Resort, through its wholly-owned subsidiary, That Seventies Project Development Ltd. RMR owns an approximately 50% interest in That Seventies Project Limited Partnership and third party investors own the remaining 50% interest. The development is known as the Caldera development, and That Seventies Project Limited Partnership has developed and sold a number of building lots over the past several years and plans to develop and sell more lots in future. |
| <u>Red Mountain Hostel Holdings (CBT) Ltd.</u>: RMR owns 17.62% of Red Mountain Hostel Holdings (CBT) Ltd., which built and owns the Nowhere Special Hostel in the base area of Red Mountain Resort. |

---

---

| | |
|:---|:---|
| ¨ | <u>1159973 BC Ltd.</u>: 1159973 BC Ltd., is wholly owned by RMR, and operates Nowhere Special Hostel. |

---

---

| | |
|:---|:---|
| ¨ | <u>Hannah Creek Limited Partnership</u>: Hannah Creek Limited Partnership ("**Hannah Creek**") owns certain real property in Rossland, British Columbia, which has a 102-unit condominium located at the base of Red Mountain Resort. As of the date of this report RMR owned a 29.56% interest in this partnership and third-party investors owned the remaining interest. |

---

---

| | |
|:---|:---|
| ¨ | <u>Red Development Co. Ltd.</u>: Red Development Co. Ltd. ("**RDCL**"), a wholly-owned subsidiary of RMR, acts as general partner to Hannah Creek. In addition, it provides research and investigative services to assist with feasibility analyses of potential future projects at RED Mountain. |

---

There have been significant changes to our corporate structure since the end of the 2024 Annual Period. *See Item 6 – OTHER INFORMATION – Project Snow Transaction.*

**Management**

Our General Partner, Red Mountain Ventures G.P. Ltd., was incorporated on September 19, 2003, under the laws of British Columbia to act as general partner to Red Mountain Ventures Limited Partnership. Information about the officers and directors of our General Partner can be found in Item 3.

**Employees**

During ski season (mid-December through early April) we have approximately 35 full-time and 310 part-time employees. During the off season (mid-April through mid-December), we have approximately 40 full-time employees.

**Environmental Laws and Regulation**

We are subject to a variety of Canadian federal, provincial and local environmental laws and regulations including those relating to emissions to the air, discharges to water, storage, treatment and disposal of wastes, land use, remediation of contaminated sites, climate change and protection of natural resources. Certain kinds of future expansions of our facilities would require us to carry out environmental assessments and apply for government approvals which may require prior consultations with First Nations (Canadian aboriginal organizations) to be carried out. Such proposals may not be approved or may be approved with modifications that substantially increase the cost or decrease the desirability of implementing the project. Our facilities are also subject to risks associated with mold and other indoor building contaminants. From time to time, our operations are subject to inspections by environmental regulators or other regulatory agencies. We are also subject to worker health and safety requirements as well as to land use criteria and potential remediation obligations applicable to the presence of regulated substances. Management believes that our operations are in compliance with applicable environmental, health and safety requirements in all material respects. However, efforts to comply do not eliminate the risk that we may be held liable, incur fines or be subject to claims for damages, and that the amount of any liability, fines, damages or remediation costs may be material for, among other things, the presence or release of regulated materials.

**Competition**

We operate in a competitive industry. We compete with mountain resort areas in the United States, Canada and Europe for destination visitors and with several ski areas in the region. New mountain resorts that may be developed in the region around Red Mountain Resort may lead to increased regional competition. We also compete with other worldwide recreation resorts, including warm-weather resorts, for vacation guests outside the traditional ski season.

Our major North American competitors include the major Colorado and Utah ski areas, the Lake Tahoe mountain resorts in California and Nevada, the Quebec and New England mountain resorts and certain ski areas in the Canadian Rockies and British Columbia. Our competitive position is dependent upon many diverse factors such as our proximity to population centers, availability and cost of transportation to the resorts, including direct flight availability by major airlines, pricing, snowmaking capabilities, type and quality of skiing offered, duration of the ski season, prevailing weather conditions, the number, quality and price of related services and lodging facilities, and the reputation of the resort. In addition, there is a move towards consolidation of ski resorts in the US and Canadian ski industries, which may provide competitors with cost efficiencies that enable them to reduce prices and attract visitors away from independent ski resorts such as Red Mountain Resort.

**Intellectual Property**

We have Canadian trademarks on certain of our designs and logos. Our trademarks and trade names are an important component of our business and our continued success depends in part upon our continued ability to use these trademarks to increase brand awareness and further develop the Red Mountain Resort brand in both domestic and international markets.

**Litigation**

As of April 30, 2024, the Company was not a party to any litigation.

**ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

RMVLP was formed on May 14, 2004 under the laws of British Columbia. The following discussion of our financial condition and results of operations should be read in conjunction with the financial statements and the notes thereto included in Item 7 of this Report. Our fiscal year end is April 30th. Our financial statements are prepared in accordance with International Financial Reporting Standards ("**IFRS**") as issued by the International Accounting Standards Board, which may differ from US Generally Accepted Accounting Principles. Unless otherwise stated herein, any dollar figures referenced herein refer to US dollars.

**Overview**

We earn our revenues in five principal categories. In order of their contribution, they are: lift tickets and season passes, food and beverage sales, retail sales and equipment rentals, property management and real estate sales. Our property management revenues are derived from property management services rendered to the owners of condominiums at the base of Red Mountain Resort.

Our single largest source of revenue is the sale of lift tickets (including season passes) which represented approximately 45% and 61% of total revenues for the twelve-month periods ended April 30, 2024 and 2023, respectively. Lift ticket revenue is driven by the volume of lift tickets and season passes sold and their pricing. Most season pass products are sold before the start of the ski season.

**Recent Trends, Risks and Uncertainties**

Together with the risk factors included in our Form 1-A, we have identified the following important factors (as well as risks and uncertainties associated with such factors) that could impact our future financial performance or condition:

&nbsp;&nbsp;&nbsp;&nbsp;· The North American economy may be impacted by economic challenges, declining
or slowing growth in economies outside North America, accompanied by devaluation of currencies, rising inflation, trade tariffs and lower
commodity prices, which could have a material adverse effect on us and our performance, financial condition, results of operations and
cash flows.

&nbsp;&nbsp;&nbsp;&nbsp;· We and our subsidiaries have a significant amount of both secured and
 unsecured debt. Our debt obligations aggregate approximately CAD $9.2 million and USD $2 million, bearing interest at rates ranging from
 approximately 5.9% to 9% per annum, with maturity dates ranging from December 31, 2026 to perpetual (with certain obligations
 repayable from project proceeds). Our ability to make scheduled payments on, or to refinance, our debt and other payment
 obligations, and to fund our planned capital expenditures and other ongoing liquidity needs, depends on our future performance,
 which may be affected by financial, business, economic, and other factors beyond our control. There can be no assurance that we will
 maintain a level of cash flows from operating activities sufficient to permit us to pay the principal and interest on all of our
 outstanding debt or to comply with any applicable financial covenants. If our cash flows and capital resources are insufficient to
 fund our debt service or other payment obligations, we may be forced to reduce or delay investments and capital expenditures, or to
 sell assets, seek additional capital, or restructure or refinance our indebtedness. Any refinancing of our debt, if available on
 acceptable terms or at all, could be at higher interest rates and may require us to comply with additional restrictive covenants,
 which could further limit our operational flexibility. We cannot guarantee that we will be able to refinance our existing
 indebtedness on favorable terms, or at all, and our failure to do so could have a material adverse effect on our business, financial
 condition, and results of operations. Also, a default on certain credit facilities and loans secured by real property could result
 in the foreclosure on such real property.

**Results of Operations**

The following discussion of our financial condition and results of operations for the twelve-month period ended April 30, 2024 (the "**2024 Annual Period**"), and the twelve-month period ended April 30, 2023 (the "**2023 Annual Period**") should be read in conjunction with our audited consolidated financial statements and the related notes included in Item 7 of this Report. The cost structure of our operations has a significant fixed component with variable expenses including, but not limited to, retail and food and beverage cost of sales, labor and utilities. As such, profit margins can fluctuate based on the level of revenues.

During the 2024 Annual Period, we experienced an approximately 8% increase in operating revenue, primarily as a result of real estate sales revenue, while our operating expenses increased by approximately 6%, which impacted our profit margins.

*Revenues*

The following summarizes the components of our overall revenue for the 2024 Annual Period compared to the 2023 Annual Period.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Year Ended <br> April 30, 2024 | Year Ended <br>April 30, 2023 | $Change | % <br> Change |
| Lift revenue | $5027343 | $6331335 | (1303992) | -21% |
| Retail and rental | 838556 | 1066372 | (227816) | -21% |
| Property management | 713194 | 834056 | (120862) | -14% |
| Food and beverage | 1138484 | 1344703 | (206219) | -15% |
| Real estate sales | 2197106 |  | 2197106 |  |
| Other revenue | 1280264 | 795511 | 484753 | 61% |
| &nbsp;&nbsp;&nbsp;Total operating revenue | 11194947 | 10371977 | 822970 | 8% |

---

Our overall revenue for the 2024 Annual Period, was $11,194,947, compared to $10,371,977 for the 2023 Annual Period, representing an 8% increase. As a result of decreased visitor traffic, our lift revenue, retail and rental revenue and food and beverage revenue decreased during the 2024 Annual Period. The increase in overall revenue was primarily driven by real estate sales revenue of $2,197,106 for the 2024 Annual Period, which had no comparable revenue in the 2023 Annual Period.

*Cost of Goods Sold*

Cost of goods sold for the 2024 Annual Period was $1,304,367, compared to $914,348 for the 2023 Annual Period. The increase in cost of goods sold during the 2024 Annual Period is primarily a result of development costs related to real estate sold during the 2024 Annual Period.

*Gross Profit*

Gross profit was $9,890,580, for the 2024 Annual Period, compared to $9,457,629, for the 2023 Annual Period. The modest increase in gross profit is primarily the result of real estate sales revenue recognized during the 2024 Annual Period.

*Operating Expenses*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Year Ended<br>April 30, 2024 | Year Ended<br>April 30, 2023 |<br>$ Change |% Change |
| Operating expenses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Wages and benefits | 5589907 | 4609767 | 980140 | 21% |
| &nbsp;&nbsp;&nbsp;Repairs and maintenance | 777721 | 996772 | (219051) | -22% |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 787451 | 778935 | 8516 | 1% |
| &nbsp;&nbsp;&nbsp;Selling and marketing | 458570 | 248756 | 209814 | 84% |
| &nbsp;&nbsp;&nbsp;Equipment rental and leases | 385232 | 339603 | 45629 | 13% |
| &nbsp;&nbsp;&nbsp;Property taxes | 133534 | 109964 | 23570 | 21% |
| &nbsp;&nbsp;&nbsp;General and administration | 2161017 | 2652695 | (491678) | -19% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 10293432 | 9736492 | 556940 | 6% |

---

Our overall operating expenses for the 2024 Annual Period, were $10,293,432, compared to $9,736,492, for the 2023 Annual Period, an increase of 6%. The increase is primarily attributable to higher wages and benefits, driven by expanded staffing requirements, partially offset by decreases in repairs and maintenance and general and administrative expenses.

*Loss from Operations*

Loss from operations for the 2024 Annual Period, was $402,852, compared to a loss of $278,863, for the 2023 Annual Period. The increase is primarily a result of increased wage expenses and selling and marketing costs, partially offset by higher revenues.

*Other Income (Expense)*

Interest expense for the 2024 Annual Period, was $806,926 compared to $471,506, for the 2023 Annual Period. The significant increase in interest expense is primarily the result of a CAD$29,101,000 construction loan from Kootenay Savings Credit Union, in connection with the construction of the Crescent of which CAD$14,673,320 was outstanding as of April 30, 2024. *See Item 6 - OTHER INFORMATION – Debt Transactions – for a description of the satisfaction of this loan.*

*Net Income (Loss)*

Net loss for the 2024 Annual Period, was $1,209,778, compared to net loss of $750,369 for the 2023 Annual Period.

Total comprehensive net loss after foreign currency translation adjustment for the 2024 Annual Period, was $503,470, compared to $1,128,856, for the 2023 Annual Period. The decrease in comprehensive net loss during the 2024 Annual Period is primarily the result of a favorable foreign currency translation adjustment of $706,308, partially offset by higher operating and interest expenses.

**Liquidity and Capital Resources**

As of April 30, 2024, we had $940,851 in cash and $153,006 in restricted cash. In addition, as of April 30, 2024, we had a bank overdraft of $1,122,273, which has been classified as a current liability in our consolidated statements of financial position. We had $0 cash as of April 30, 2023. Current assets as of April 30, 2024, were $2,166,923, compared to $970,147 as of April 30, 2023. The increase in current assets is primarily the result of an increase in cash equivalents. The increase in cash is the result of proceeds from long-term borrowings and strong collections from operations.

***Principal Sources of Cash***

Our principal source of cash is sales revenue. Available cash is the highest in the fourth quarter primarily due to the seasonality of our resort business and the sale of season passes for the following ski season. We currently anticipate that cash flow from operations will continue to provide a significant source of our operating needs.

***Significant Uses of Cash***

Our cash uses currently include operating expenditures and capital expenditures for assets to be used in operations. We have historically invested significant cash in capital expenditures for our resort operations and expect to continue to invest in the future. Resort capital expenditures for the 2024 Annual Period, were approximately $14,877,231, compared to $1,363,131, for the 2023 Annual Period. The 10x+ increase in capital expenditures for the 2024 Annual Period was primarily associated with construction and development activities related to the Crescent condominium project and other resort infrastructure improvements.

**Debt and Credit Facilities**

The following describes the outstanding debt as of April 30, 2024:

&nbsp;&nbsp;&nbsp;&nbsp;· *Bank of Montreal — Operating Credit Facility* - The Bank of Montreal
(**"BMO"**) has provided an overdraft credit facility (the "**BMO Credit Facility,**" which is attached as
an Exhibit to this Annual Report) to RRLP, which guaranteed by Leroi, RMR Acquisition Corp., and RPML and secured by certain real
property held by the Partnership. The maximum principal amount of the BMO Credit Facility is CAD$2,152,500. The BMO Credit Facility permits
RRLP to overdraw its operating bank account up to this limit. Interest accrues at the Canadian prime rate plus 1.5% per annum only in
months when the facility is drawn upon. Repayments of principal are made at RRLP's discretion. As of April 30, 2024, the outstanding
principal balance of the BMO Credit Facility was CAD$1,561,813. The BMO Credit Facility was amended following the 2024 Annual Period.
See Item 6 – OTHER INFORMATION – Debt Transactions.

&nbsp;&nbsp;&nbsp;&nbsp;· *Bank of Montreal — Term Loans* - RRLP has three fixed-rate term
loans with BMO, each guaranteed by Leroi, RMR Acquisition Corp., and RPML and secured by certain real property held by the Partnership.
The first loan is for CAD$4,200,000, and as amended in April 2024, accrues interest at 7.23% and matures in March 2025 ()"**BMO Term Loan A** "). The second loan is for CAD$1,600,000 ()"**BMO Term Loan B** "), and as amended in April 2024,
accrues interest at 7.23% and matures in March 2025. The third loan is for CAD$2,100,000 ()"**BMO Term Loan C**," and
sometimes together with BMO Term Loan A and BMO Loan Term C, the "**BMO Term Loans** "), as amended, accrues interest at
the Canadian prime rate plus 3.00% per annum, and is due on demand. As of April 30, 2024, the aggregate outstanding principal balance
of the BMO Term Loans was CAD$3,194,969. The BMO Term Loans were amended following the 2024 Annual Period. *See Item 6 – OTHER INFORMATION – Debt Transactions*.

&nbsp;&nbsp;&nbsp;&nbsp;· *Kootenay Savings Credit Union — Construction Loan* - Hannah
 Creek entered into a CreditMaster® Construction Loan Agreement with Kootenay Savings Credit Union ()"**KSCU** "),
 originally dated December 22, 2022 (the "**KSCU Construction Loan**," which is attached as an Exhibit to
 this Annual Report), to finance the construction of The Crescent of up to CAD$29,101,000. As of April 30, 2024, the outstanding
 principal balance under the KSCU Construction Loan was CAD$14,673,320. The loan was repaid in December 2024. *See Item 6 – OTHER INFORMATION – Debt Transactions.* 

&nbsp;&nbsp;&nbsp;&nbsp;· *CBT Commercial Finance Corp. — Construction Loan* - That Seventies
Project Development Ltd., a subsidiary of the Partnership, entered into a Construction Loan Agreement with CBT Commercial Finance Corp.
(" **CBT** "), a subsidiary of Columbia Basin Trust, originally dated June 14, 2023 (the "**CBT Construction Loan**,"
which is attached as an Exhibit to this Annual Report). The loan provides a construction facility of up to CAD$2,425,000 to finance
the development of a 16-lot subdivision at Red Mountain Resort in Rossland, British Columbia. The loan originally bore interest at the
CIBC Prime Rate plus 3% per annum and required repayment of net proceeds from each lot sale, with the full balance due July 31, 2024.
Security includes a first charge collateral mortgage over the development lands, a general security agreement over all of the borrower's
present and after-acquired personal property, and an indemnity from RMR Acquisition Corp. As of April 30, 2024, the outstanding principal
balance was approximately CAD$1,130,898. The CBT Construction Loan was subsequently amended four times after April 30, 2024, extending
the maturity on each occasion. *See Item 6 – OTHER INFORMATION – Debt Transactions* 

&nbsp;&nbsp;&nbsp;&nbsp;· *Community Futures Development Corporation of Greater Trail — Loan* - RMR Acquisition Corp. is a party to a loan with the Community Futures Development Corporation of Greater Trail (the "**CFDC Loan**,"
which is attached as an Exhibit to this Annual Report). As of April 30, 2024, the outstanding balance was CAD$15,471, bearing
interest at the Canadian prime rate plus 4% per annum. The maturity date of this loan was extended in June 2025.

*Juice Trust / Jeff Busby — Loans* - Between January 2020 and April 2024, Jeff Busby and the Juice Trust dtd. 1/24/96 Trust 3 (the **"Juice Trust"**), for which Mr. Busby serves as trustee, made loans to RMR Acquisition Corp. and affiliated entities to fund capital projects at the Resort and general working capital (collectively, the "**Juice Trust Loans**," which is attached as an Exhibit to this Annual Report). All loans accrue interest at 6% per annum. As of April 30, 2024, the aggregate principal and accrued interest outstanding across all Juice Trust Loans was CAD$11,232,259. *See Item 6 – OTHER INFORMATION – Debt Transactions.*

**ITEM 3. DIRECTORS AND OFFICERS**

Our general partner is Red Mountain Ventures G.P. Ltd. ("**RMVGP**"), which was formed under the laws of British Columbia on September 19, 2003. The following table sets forth information about the General Partner's executive officers and directors as of the end of the 2024 Annual Period:

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **Position** | **Term of Office** | **Age** |
| Howard I. Katkov | Chief Executive Officer<br> Director | October 2003 – May 2025<br> October 2003 – Present | 75 |
| Donald J. Thompson | President and Secretary<br> Director | October 2003 – May 2025<br> May 2008 – Present | 69 |
| Dyne Parker | Chief Financial Officer | August 2023 – Present | 40 |
| Joshua J. Fox | Director | January 2016 – July 2024 | 54 |
| Jeff Busby | Director | June 2004– Present | 63 |

---

*See Item 6 – OTHER INFORMATION – Officer and Director Changes - for resignations and appointments of officers and directors following the 2024 Annual Period.*

***Howard I. Katkov***, has served as a Director and Chief Executive Officer of the General Partner since October 2003. Between October 2003 and May 2015, he served as President of the General Partner. Mr. Katkov, a businessman and previously an attorney and real estate developer, has developed, constructed and sold approximately 2,500 single and multi-family residential units valued at over $400 million. He is an entrepreneur who has founded and sold several companies, including Sassaby-Jane Cosmetics which was acquired by The Estée Lauder Companies for approximately $65 million. Mr. Katkov oversees the operations of the Red Mountain Resort and real estate development activities. Mr. Katkov retired as Chief Executive Officer in May 2025. *See Item 6 – OTHER INFORMATION –Officer and Director Changes.*

***Donald J. Thompson****,* has served as a Director and Corporate Secretary of the General Partner since May 2008, and as President of the General Partner since May 2015. He previously served as Vice President, Resort Planning and Development of the General Partner, from September 2005 through May 2015. Mr. Thompson has been instrumental in managing over $50 million of development projects at the base of RED Mountain. Before joining Red Mountain Resort, Mr. Thompson led development planning teams with The Aspen Skiing Company at Snowmass, Colorado, Vail Resorts at Keystone Resort, Colorado, and Intrawest at Copper Mountain Resort, Colorado. He has over 25 years of resort planning development and operations experience. Mr. Thompson retired as President and Secretary in May 2025. *See Item 6 – OTHER INFORMATION –Officer and Director Changes.*

***Dyne Parker,*** has served as Chief Financial Officer since August 2023. Mr. Parker is a graduate of Thompson Rivers University with a Diploma in Management, Degree in Marketing and Post Bachelor's Degree in Finance. He has 12 years of experience in the finance and management. Between January 2016 and August 2023 Mr. Parker held the position of Finance and Operations Manager at Trail Skills Centre in British Columbia. Mr. Parker's responsibilities include all aspects of financial management, analysis and reporting, budgeting, taxation, human resources, insurance and risk management.

***Joshua J. Fox****,* served as a Director of the General Partner between January 2016 and July 2024. He has served as Managing Director, Head of Real Estate, Lodging and Leisure for Stout Risious Ross in New York, New York, since May 2015. Prior to his present position, Mr. Fox was co-founder of Underwood, Fox & McClintock (2012-2015) and prior to that, was the Director, Investment Banking – Real Estate, Lodging, Leisure and Homebuilding Group for Houlihan Lokey (2004-2012). Mr. Fox received his BBA from the University of Michigan School of Business and a Juris Doctorate from Columbia University School of Law. Mr. Fox retired as a director in July 2024. *See Item 6 – OTHER INFORMATION –Officer and Director Changes.*

***Jeff Busby****,* has served as a Director of the General Partner since June 2004. He has served as Executive Director and as a member of the Executive Committee at Brandes Investment Partners, L.P. since 2008, where he contributes to strategic decisions and guides the firm toward its vision and objectives. He also contributes to the investment process at Brandes as a member of the Investment Oversight Committee. Mr. Busby received his BS in chemical engineering from Northwestern University and his MBA in finance from the University of California, Berkeley. He is a member of the CFA Society of San Diego and has 25 years of investment experience.

The table below reflects the annual compensation of each of the three highest paid persons who were executive officers or directors of the General Partner, during the fiscal year ended April 30, 2024:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name** | **Capacities in which<br> compensation received** | **Cash <br> Compensation** | **Cash <br> Compensation** | **Other<br> Compensation** | **Other<br> Compensation** | **Total<br> Compensation** | **Total<br> Compensation** |
| Howard I. Katkov (1) | CEO | US$ | 400000 | US$ | 18000 | US$ | 418000 |
| Donald J. Thompson (2) | President & Corporate Secretary | CAD$ | 160000 | CAD$ |  | CAD$ | 160000 |
| Dyne Parker (3) | Chief Financial Officer | CAD$ | 110000 | CAD$ | 10000 | CAD$ | 120000 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Mr. Katkov was a party to an employment agreement under which he is entitled to receive a salary of $400,000, and an $18,000 allowance for office, internet and bonus. Mr. Katkov retired as CEO in May 2025 and received a retirement allowance of US$1,600,000. *See Item 6 – OTHER INFORMATION –Related Party Transactions.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Mr. Thompson was a party to an employment agreement under which, as amended, he was entitled to receive a salary of CAD$160,000 per annum. Mr. Thompson retired as President and Secretary in May 2025 and received a retirement allowance of CAD$477,500. *See Item 6 – OTHER INFORMATION –Related Party Transactions.* 

(3) Other compensation for Mr. Parker constitutes a CAD$10,000 bonus.

The directors do not receive any compensation for their service as a director.

**ITEM 4. SECURITY OWNERSHIP OF MANAGEMENT AND CERTAIN SECURITY HOLDERS**

Set forth below is information as of April 30, 2024, regarding the beneficial ownership of Class A Units, Class B Units, Class C Units and Class C2 Units, which are the only classes of outstanding units as of such date held by (i) each person whom we know owned, beneficially, more than 10% of any class of the outstanding units, and (ii) all of the current officers and directors as a group. We believe that, except as noted below, each named beneficial owner has sole voting and investment power with respect to the units listed. Unless otherwise indicated herein, beneficial ownership is determined in accordance with the rules of the Securities and Exchange Commission, and includes voting or investment power with respect to units beneficially owned.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Title of class** | **Name and address of beneficial<br> owner** | **Amount and<br> nature of<br> Beneficial<br> ownership** |  | **Amount and<br> nature of<br> beneficial<br> ownership**<br> **acquirable** | **Percent of Class** |
| Class A Units | Howard I. Katkov <br> PO Box 670 <br> Rossland, BC. V0G 1Y0 | 532000 | (1) | 0 | 27.66% |
|  | Donald J. Thompson <br> PO Box 670 <br> Rossland, BC. V0G 1Y0 | 266000 | (2) | 0 | 13.83% |
|  | Patricia Marshall Thompson <br> PO Box 66 <br> Rossland, BC. V0G 1Y0 | 266000 | (2) | 0 | 13.83% |
|  | Jim Greene <br> 2001 Silver King Road <br> Nelson, BC V1L 1C8 | 266000 | (3) | 0 | 13.83% |
|  | Christine Andison <br> PO Box 670 <br> Rossland, BC. V0G 1Y0 | 258000 |  | 0 | 13.41% |
|  | Kevin Magnall <br> PO Box 670 <br> Rossland, BC. V0G 1Y0 | 257000 |  | 0 | 13.36% |
|  | All directors and officers as a group (2 persons) | 798000 |  | 0 | 41.49% |
| Class B Units | Jeff Busby <br> 11988 El Camino Real,<br> Suite 600 <br> San Diego, CA. 92191-9048 | 1383787 | (4) | 0 | 81.72% |
|  | All directors and officers as a group (2 persons) | 1385537 | (4) | 0 | 81.83% |
| Class C Units | Jeff Busby | 2413696 | (5) | 0 | 90.25% |
|  | All directors and officers as a group (1 person) | 2413696 | (5) | 0 | 90.25% |
| Class C2 Units | Jeff Busby | 2413696 | (5) | 0 | 90.25% |
|  | All directors and officers as a group (1 person) | 2413696 | (5) | 0 | 90.25% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Units owned by Red Mountain Ventures, Inc., which is wholly owned by Howard Katkov.

(2) Units owned by Blacklock Holdings Inc. Donald Thompson, a director and officer of the General Partner, owns directly or indirectly 50% of the voting shares of Blacklock Holdings Inc. Patricia Marshall Thompson, the spouse of Donald Thompson, owns the remaining 50% of the voting shares of Blacklock Holdings Inc. Mr. Thompson and Mrs. Thompson are each deemed to share voting and investment power over all 266,000 Class A Units held by Blacklock Holdings Inc., and accordingly each is reported as a beneficial owner of all such Units; those Units are counted only once in the directors-and-officers group total.

(3) Units owned by 390594 Alberta Limited, which is owned and controlled by Jim Greene.

(4) Units owned by Value Powder Corporation. Jeff
 Busby, a director of the General Partner, is the trustee of the Juice Trust dtd 1/24/96 Trust 3, which owns directly or indirectly 63.1%
 of the voting shares of Value Powder Corporation. The sole beneficiary of the Juice Trust is the Busby Children's Trust, all of the beneficiaries
 of which are the children of Jeff Busby, and the trustee of which is Jeff Busby. The directors-and-officers group includes the 1,383,787
 Units beneficially owned by Mr. Busby (as described above) and an additional 1,750 Class B Units held by Red Mountain Ventures, Inc.,
 of which Mr. Katkov is the sole shareholder.

(5) Units held by Jeff Busby, in his capacity as trustee
 of the Juice Trust dtd 1/24/96 Trust 3. The remaining 260,663 Class C Units and 260,663 Class C2 Units are held by Brent Woods, Trustee
 of the Woods/Mitchell Family Trust dated January 25, 1999, who is not a director, officer or affiliate of the General Partner and whose
 holdings are below the 10% individual-disclosure threshold.

*See Item 6 – OTHER INFORMATION –Project Snow Transactions and Related Party for changes to equity ownership resulting from the Project Snow Transactions and the conversion of the Juice Trust Loans.*

**ITEM 5. INTEREST OF MANAGEMENT AND OTHERS IN CERTAIN TRANSACTIONS**

Between January 2020 and April 2024, Mr. Busby, a director and significant equity holder, and the Juice Trust and the Busby Family Trust dtd 6/18/80 (together, the "**Busby Trusts**"), for which Mr. Busby serves as trustee or beneficiary, made a series of loans to RMR and affiliated entities to fund capital projects at the Resort and working capital. Specifically:

&nbsp;&nbsp;&nbsp;&nbsp;· Between January and October 2020, the Juice Trust loaned RMR Acquisition
Corp. CAD$1,500,000 pursuant to a Grid Promissory Note, accruing interest at 6% per annum and having a maturity date of August 31,
2022. &nbsp;&nbsp;&nbsp;&nbsp;· Between October 2020 and March 2021, the Juice Trust loaned RMR
Acquisition Corp. CAD$2,011,754 pursuant to a Grid Promissory, accruing interest at 6% per annum and having a maturity date of August 31,
2022. &nbsp;&nbsp;&nbsp;&nbsp;· Between January 2022 and November 2022 the Juice Trust loaned RDCL,
CAD$111,570.51 pursuant to a Grid Promissory Note, accruing interest at 6% per annum and having a maturity date of November 23, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;· In July 2022, the Busby Trusts loaned Hannah Creek CAD$1,200,000 pursuant
to a Promissory Note, accruing interest at 6% per annum (the "**Crescent Note** ").

&nbsp;&nbsp;&nbsp;&nbsp;· In November 2022, Jeff Busby and another individual loaned RMR Acquisition
Corp. CAD$277,607.83 pursuant to a Grid Promissory Note, accruing interest at 6% per annum and having a maturity date of November 23,
2025. 13

In February 2024, the Juice Trust loaned Hannah Creek CAD$3,500,000 to fund construction costs of the Crescent, pursuant to a Grid Promissory Note. The note accrued interest at 10% per annum, and was required to be paid before the first distribution to the limited partners of the sales proceeds resulting from the Crescent.

In August 2022, the Busby Trusts, the sole limited partners of Hannah Creek, transferred the Crescent Note together with their 4,000 Class A Units in Hannah Creek to The Crescent Project Holdings ULC ("**Crescent Holdings**"), a British Columbia unlimited liability company wholly owned by the Busby Trusts. In August 2022, Crescent Holdings converted CAD$1,207,000 due under the Crescent Note into 2,414 Class A Units of Hannah Creek, simultaneously with the issuance of 210 Class A Units to RMR in exchange for CAD$105,000 and the issuance of 13,148 Class A Units to a third party investor in exchange for (a) the conversion of CAD$1,574,000 due under a loan and CAD$5,000,000 in cash (the "**Hannah Financing Transactions**"). Prior to the Hannah Financing Transactions, RMR held 66.67% of the outstanding Partnership Units of Hannah Creek in the form of Class B Units and the Busby Trusts held 33.33% of the outstanding Partnership Units of Hannah Creek in the form of Class A Units. Following the Hannah Financing Transactions, RMR held 29.56% of the outstanding Units of Hannah Creek (including, 210 Class A Units and 8,000 Class B Units), Crescent Holdings held 23.10% of the outstanding Partnership Units of Hannah Creek in the form of Class A Units and the third party investor held 47.34% of the outstanding Partnership Units of Hannah Creek in the form of Class A Units. Under the Hannah Creek Limited Partnership Agreement, after all capital has been returned to the Class A Partners, the Class B Members receive 19.99% of all distributions.

In September 2023, Mr. Magnall retired and received a retirement allowance of CAD$198,000.

*See also Item, 6 (Related Party Transactions).*

**ITEM 6. OTHER INFORMATION**

**<u>Debt Transactions</u>**

The following material debt transactions occurred after the 2024 Annual Period:

&nbsp;&nbsp;&nbsp;&nbsp;· In March 2025, the BMO Credit Facility was amended to (a) reduce
the maximum credit limit from CAD$2,152,500 to CAD$1,500,000, (b) implement a seasonal structure, pursuant to which the credit limit
is CAD$1,000,000 from December through May and CAD$1,500,000 from June through November annually, and reduce the interest
rate to prime plus 1.5% per annum.

&nbsp;&nbsp;&nbsp;&nbsp;· In March 2025, BMO Term Loan A and BMO Term Loan B were amended and
restated to extend their maturity dates to March 2026 and reduce their interest rates to 6.95%. In April 2025, BMO Term Loan
A and BMO Term Loan B were amended and restated to decrease their interest rates to 5.94% per annum. In April 2026, BMO Term Loan
A and BMO Term Loan B were amended and restated to extend their maturity dates to March 2027, and decrease their interest rates to
5.34% per annum.

&nbsp;&nbsp;&nbsp;&nbsp;· In March 2025, BMO Term Loan 3 was amended to change the interest rate
to prime plus 1.75% per annum.

&nbsp;&nbsp;&nbsp;&nbsp;· The CBT Construction Loan was amended four times after the 2024 Annual Period,
including, (a) on July 25, 2024, to extend the maturity date to October 31, 2024, (b) on February 1, 2025, to
extend the maturity date to June 30, 2025, (c) on June 20, 2025 to increase the interest rate to prime plus 2% and extend
the maturity date to December 31, 2025, and (d) on March 5, 2026, to extend the maturity date to December 31, 2026.

&nbsp;&nbsp;&nbsp;&nbsp;· Hannah Creek repaid the KSCU CreditMaster Construction Loan in December 2024.

&nbsp;&nbsp;&nbsp;&nbsp;· In May 2025, RMR Acquisition Corp. issued a grid promissory note to
the Juice Trust, in the principal amount of CAD$2,777,500, bearing interest at 9% per annum (the "**May 2025 Note** ").
The proceeds were used to fund retirement allowance obligations owing to Donald J. Thompson and Howard I. Katkov / Red Mountain Ventures
Inc. Repayment is tied to the First Other Use Date, defined as the date on which all principal and accrued interest has been repaid to
the Juice Trust from distributions received by RMR or its subsidiary RDCL in respect of The Crescent 2 Limited Partnership and the project
known as 'The Daly,' prior to any other use of such proceeds.

&nbsp;&nbsp;&nbsp;&nbsp;· On July 18, 2024, all outstanding debt owed to Jeff Busby and the Juice
Trust (CAD$10,799,220) was satisfied through (a) the payment of CAD$100,000, and (b) the conversion of CAD$10,799,220 into 1,079,922
Class E-2 Units of the Partnership.

**<u>Changes to the General Partner Structure</u>**

*Amendment and Restatement of the Partnership Agreement.* Effective July 18, 2024, the Limited Partnership Agreement of the Partnership was amended and restated to, among other things: (i) create a new class of Class E-2 Units of the Partnership; (ii) revise the distribution waterfall; and (iii) remove the voting rights previously attached to the Class A Units of the Partnership.

*Amendment and Restatement of the Certificate of Limited Partnership*.** Effective July 18, 2024, the Company filed an Amended and Restated Certificate of Limited Partnership, which is attached as an Exhibit to this Annual Report, to reflect the creation of the Class E-2 Units.

*Restructuring of General Partner Governance.* In connection with the First Closing, RMVGP amended its articles to create three new classes of voting shares — Class E-2, Class E-3, and Class E-4 — which together constitute the sole voting shares of RMVGP. The existing Class A and Class B shares of RMVGP were redesignated as non-voting.

*New Shareholders' Agreement*. In connection with the First Closing, a new Shareholders' Agreement among the Class E-2, E-3, and E-4 shareholders (which is attached as an Exhibit to this Annual Report) was adopted governing, among other things, board composition and director nomination rights. Under the new Shareholders' Agreement, the holder of the Class E-3 shares (ERE Development Inc., through which David Evans and Christopher Evans operate) has the right to nominate two directors; the holder of the Class E-2 shares (the Juice Trust, for which Jeff Busby serves as trustee) has the right to nominate two directors; and the holder of the Class E-4 shares (Red Mountain Ventures Inc., controlled by Howard I. Katkov) has the right to nominate one director. The resulting five-member board is comprised of David Evans and Christopher Evans (as ERE's nominees), Jeff Busby (as one of the Juice Trust's nominees), and Howard I. Katkov (as HowardCo's nominee), each appointed effective July 18, 2024 upon the resignation of Joshua J. Fox as a director.

**<u>Sale of Interest in RMR Acquisition Corp. – Project Snow Transactions</u>**

On July 18, 2024, RMVGP completed the first closing (the "**First Closing**") of a series of capital restructuring and equity investment transactions (collectively, the "**Project Snow Transactions**") which resulted in the sale of a 26.95% interest in RMR Acquisition Corp. To facilitate the First Closing, RMR Feeder G.P. Ltd. (the "**Feeder GP**") was organized on June 7, 2024, and RMR Feeder Limited Partnership (the "**Feeder LP**") was formed on July 10, 2024. At the First Closing, Feeder LP issued an aggregate of 420,000 limited partnership units to 18 third-party investors at a price of CAD$10.00 per unit, for aggregate proceeds of CAD $4,200,000. Feeder LP, in turn, subscribed for 4,200,000 Class E-1 Preferred Shares of RMR at $1.00 per share (CAD $4,200,000 in aggregate), and committed to invest an additional CAD $11,300,000 in RMR in the future upon capital call. On November 30 and December 4, 2024 (collectively, the "**Second Closing**"), Feeder LP issued an additional 200,000 units at CAD $10.00 per unit for aggregate proceeds of CAD $2,000,000. RMR concurrently issued to Feeder LP an additional 2,000,000 Class E-1 Preferred Shares of RMR at CAD $1.00 per share. In aggregate across the First and Second Closings, Feeder LP raised $6,200,000 from investors and RMR issued 6,200,000 Class E-1 Preferred Shares to Feeder LP.

**<u>Officer and Director Changes</u>**

In May 2025, Mr. Katkov retired as Chief Executive Officer.

In May 2025, Mr. Thompson retired as President and Secretary.

In September 2023, Kevin Magnall resigned as a director.

In July 2025, Mark Schroetel was appointed President of the Company. In connection therewith, RMR entered into a Management Consulting Services Agreement, with Mr. Schroetel and his Delaware LLC, Resort Management Consulting LLC (through which Mr. Schroetel operates), which is attached as an Exhibit to this Annual Report. Under the agreement, Mr. Schroetel serves as President of RMR and its affiliates and receives a base fee of CAD$250,000 per year, with the potential for a discretionary bonus of up to 20% and a long-term incentive of up to 35% of the base fee.

In July 2024, Joshua J. Fox resigned as a director of the General Partner.

In July 2024, David Evans and Chris Evans were each appointed as a director of the General Partner, and as directors of RMR Acquisition Corp. and RPML.

*New Officer and Director Biographies*

**David Evans**, was appointed to serve as a Director of the General Partner in July 2024. Mr. Evans has over 20 years of experience in real estate development, investment, and management. Most recently, he served as Senior Vice President, Development at Peterson Real Estate, where he was responsible for overseeing development, construction, and sales and marketing operations. Prior to Peterson, Mr. Evans served as Senior Vice President of Development at Onni Group of Companies, where he focused on the company's U.S. expansion and led major residential and mixed-use developments across key markets including Chicago, Los Angeles, and Seattle. Earlier in his career, Mr. Evans spent 11 years with Cressey Development Group as a Development Manager. Throughout his career, he has been involved in the development of large-scale residential and mixed-use projects across North America.

**Chris Evans**, has served as a Director of the General Partner since July 2024. Mr. Evans has over 20 years of experience in real estate investment, development, and management. He currently focuses on his investment company, Qwid Capital, where he employs a family office approach to investing across real estate, operating businesses, and capital markets. Mr. Evans has significant experience structuring and investing in real estate projects, primarily in Western Canada, and also advises a large Vancouver-based family office on deal selection and due diligence. Previously, Mr. Evans served as Executive Vice President of Onni Group from 2003 to 2020. He contributed to the delivery of nearly 10,000 residential units and over 7 million square feet of commercial space, along with a significant hospitality portfolio. Mr. Evans also served on the Board of Directors and Executive Committee of the Urban Development Institute of British Columbia until 2019

**Mark Schroetel**, has served as President of the General Partner since July 2025. Mr. Schroetel has over 30 years of experience in the resort and mountain recreation industry, with a focus on operations, development, and strategic growth. He began his career as a ski instructor before transitioning into sales and marketing roles at Whitetail Resort in Pennsylvania, where he developed a strong foundation in resort operations and guest experience. In 1999, Mr. Schroetel was appointed General Manager of Bear Creek Mountain Resort, where he led a comprehensive rebranding and redevelopment of the property, transforming it from a day ski area into a successful four-season destination serving the mid-Atlantic region. In 2014, he relocated to Utah to become General Manager of Powder Mountain and later served as Chief Executive Officer from 2021 to 2022, where he played a key role in the resort's strategic evolution. Most recently, Mr. Schroetel served as Chief Operating Officer of Entabeni Systems, where he helped lead the acquisition and expansion of the Indy Pass program and supported the continued growth of both Indy Pass and Entabeni Systems.

**<u>Related Party Disclosures</u>**

In July 2024, in connection with the First Closing of Project Snow, David Evans and Chris Evans were each appointed as a director of the General Partner, and as directors of RMR Acquisition Corp. and RPML. David Evans and Chris Evans each own 49.5% of ERE Development Inc., which holds a 48.82% interest in RPM.

David Evans, appointed as a director in July 2024, personally contributed CAD $80,000 to RMR Feeder Limited Partnership November 30, 2024 in exchange for 8,000 Feeder LP units. In addition, Qwid Consulting Inc., for which Mr. Evans is a principal, contributed CAD $80,000 to RMR Feeder Limited Partnership on December 4, 2024, and received 8,000 Feeder LP units.

In May 2025, RMR issued a promissory note to the Juice Trust in the principal amount of CAD$2,777,500, bearing interest at 9% per annum, which is attached as an Exhibit to this Annual Report.

Mr. Busby, serves as a director. *See Item 6 – OTHER INFORMATION – Debt Transactions*

In connection with his retirement as CEO, in May 2025, we paid Howard Katkov a retirement allowance of $1,600,000. Mr. Katkov executed the May 2025 Note as CEO of RMR while simultaneously being a named beneficiary of the loan proceeds in his individual capacity.

In connection with his retirement as President and Secretary, in May 2025 we paid Donald Thompson a retirement allowance of CAD$477,500.

**ITEM 7: FINANCIAL STATEMENTS**

![](tm2611545d1_partii-img01.jpg)

*Independent Auditors' Report*

To the Board of Directors of the General Partner and Unit Holders of

Red Mountain Ventures Limited Partnership

**Opinion**

We have audited the consolidated financial statements of Red Mountain Ventures Limited Partnership and subsidiaries (the Group), which comprise the consolidated statements of financial position as at April 30, 2024 and 2023, and the consolidated statements of operations and other comprehensive income, consolidated statements of changes in limited partnership interest, and consolidated statements of cash flows for the years then ended, and notes to consolidated financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at April 30, 2024 and 2023, and of its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with International Financial Reporting Standards (IFRSs).

**Basis for Opinion** 

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the 'Auditors' Responsibilities for the Audit of the Consolidated Financial Statements' section of our report. We are independent of the Group in accordance with the International Ethics Standards Board for Accountants' 'Code of Ethics for Professional Accountants' (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

**Other Matter**

 

The financial statements of Red Mountain Ventures Limited Partnership for the year ended April 30, 2023 were audited by another auditor who expressed an unmodified opinion on those statements on January 9, 2024.

**Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements**

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRSs, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Group's financial reporting process.

**Auditors' Responsibilities for the Audit of the Consolidated Financial Statements**

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

<u>venningadvisors.com</u><br> 1

![](tm2611545d1_partii-img01.jpg)

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

&nbsp;&nbsp;&nbsp;&nbsp;· Identify and assess the risks of material
misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to
those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting
a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.

&nbsp;&nbsp;&nbsp;&nbsp;· Obtain an understanding of internal control
relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the Group's internal control.

&nbsp;&nbsp;&nbsp;&nbsp;· Evaluate the appropriateness of accounting
policies used and the reasonableness of accounting estimates and related disclosures made by management.

&nbsp;&nbsp;&nbsp;&nbsp;· Conclude on the appropriateness of management's
use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related
to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that
a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the consolidated
financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained
up to the date of our auditors' report. However, future events or conditions may cause the Group to cease to continue as a going
concern.

&nbsp;&nbsp;&nbsp;&nbsp;· Evaluate the overall presentation, structure,
and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent
the underlying transactions and events in a manner that achieves fair presentation.

&nbsp;&nbsp;&nbsp;&nbsp;· Plan and perform the group audit to obtain
sufficient appropriate audit evidence regarding the financial information of the entities or business units within the Group to express
an opinion on the consolidated financial statements. We are responsible for the direction, supervision, and review of the audit work performed
for purposes of the group audit. We remain solely responsible for our audit opinion.

&nbsp;&nbsp;&nbsp;&nbsp;· We communicate with those charged with governance
regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies
in internal control that we identify during our audit.

&nbsp;&nbsp;&nbsp;&nbsp;· We also provide those charged with governance
with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships
and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

&nbsp;&nbsp;&nbsp;&nbsp;· From the matters communicated with those charged
with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the
current period and are therefore the key audit matters. We describe these matters in our auditors' report unless law or regulation
precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated
in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.

Fort Lauderdale, Florida

May 19, 2026

<u>venningadvisors.com</u><br> 2

RED MOUNTAIN VENTURES LIMITED PARTNERSHIP

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(US $)

---

| | | |
|:---|:---|:---|
|  | April 30, 2024 | April 30, 2023 |
| ASSETS |  |  |
| Current assets |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents (Note 4) | 940851 | $- |
| &nbsp;&nbsp;&nbsp;Restricted cash | 153006 | 20100 |
| &nbsp;&nbsp;&nbsp;Accounts receivable (Note 5) | 402762 | 372785 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets (Note 7) | 72263 | 111115 |
| &nbsp;&nbsp;&nbsp;Inventory (Note 6) | 598041 | 466148 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 2166923 | 970147 |
| Property, plant and equipment, net (Note 8) | 12476145 | 12986761 |
| Property under development (Note 9) | 22709134 | 8619354 |
| Equity method investment (Note 2) | 2554573 | 356766 |
| Goodwill | - | 51679 |
| Total assets | $39906775 | $22984708 |
| LIABILITIES AND PARTNERSHIP INTEREST |  |  |
| Current liabilities |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses (Note 10) | 3100265 | $569607 |
| &nbsp;&nbsp;&nbsp;Deferred revenue (Note 11) | 2192104 | 1722554 |
| &nbsp;&nbsp;&nbsp;Current portion of long-term debt (Note 12) | 13773256 | 368185 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 19065625 | 2660346 |
| Long-term liabilities |  |  |
| &nbsp;&nbsp;&nbsp;Other long-term debt (Note 12) | 11645074 | 10028830 |
| &nbsp;&nbsp;&nbsp;Finance leases | 54071 | 58522 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total long-term liabilities | 11699145 | 10087352 |
| Total liabilities | 30764770 | 12747698 |
| Commitments and contingencies |  |  |
| Partnership interest (Note 16) |  |  |
| &nbsp;&nbsp;&nbsp;Initial partnership interest | 2657 | 2657 |
| &nbsp;&nbsp;&nbsp;Class A units contribution | 1109 | 1109 |
| &nbsp;&nbsp;&nbsp;Class B units contribution | 13083607 | 13083607 |
| &nbsp;&nbsp;&nbsp;Class C units contribution | 20746938 | 20746938 |
| &nbsp;&nbsp;&nbsp;Class D units contribution | 1916948 | 1916948 |
| &nbsp;&nbsp;&nbsp;Partner distributions | (1476435) | (1416241) |
| &nbsp;&nbsp;&nbsp;Other comprehensive income | 3804684 | 3098376 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (31464514) | (30400310) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; attributable to partnership | 6614994 | 7033084 |
| &nbsp;&nbsp;&nbsp;Non-controlling interest | 2527011 | 3203926 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total partnership interest | 9142005 | 10237010 |
| Total liabilities and partnership interest | $39906775 | $22984708 |

---

RED MOUNTAIN VENTURES LIMITED PARTNERSHIP

CONSOLIDATED STATEMENTS OF OPERATIONS

AND OTHER COMPREHENSIVE INCOME

(US $)

---

| | | |
|:---|:---|:---|
|  | Year Ended<br>April 30, 2024 | Year Ended<br>April 30, 2023 |
| Operating revenue (Note 2) |  |  |
| &nbsp;&nbsp;&nbsp;Lift revenue | $5027343 | $6331335 |
| &nbsp;&nbsp;&nbsp;Retail and rental | 838556 | 1066372 |
| &nbsp;&nbsp;&nbsp;Property management | 713194 | 834056 |
| &nbsp;&nbsp;&nbsp;Food and beverage | 1138484 | 1344703 |
| &nbsp;&nbsp;&nbsp;Real estate sales | 2197106 |  |
| &nbsp;&nbsp;&nbsp;Other revenue | 1280264 | 795511 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating revenue | 11194947 | 10371977 |
| Cost of good sold | 1304367 | 914348 |
| Gross profit | 9890580 | 9457629 |
| Operating expenses |  |  |
| &nbsp;&nbsp;&nbsp;Wages and benefits | 5589907 | 4609767 |
| &nbsp;&nbsp;&nbsp;Repairs and maintenance | 777721 | 996772 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 787451 | 778935 |
| &nbsp;&nbsp;&nbsp;Selling and marketing | 458570 | 248756 |
| &nbsp;&nbsp;&nbsp;Equipment rental and leases | 385232 | 339603 |
| &nbsp;&nbsp;&nbsp;Property taxes | 133534 | 109964 |
| &nbsp;&nbsp;&nbsp;General and administration | 2161017 | 2652695 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 10293432 | 9736492 |
| Gain (Loss) from operations | (402852) | (278863) |
| Other income (expense) |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense including foreign exchange adjustments | (806926) | (471506) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income (expense) | (806926) | (471506) |
| Net loss | (1209778) | (750369) |
| Net loss attributable to non-controlling interest | (145574) | (90293) |
| Net loss attributable to partnership | $(1064204) | $(660076) |
| Comprehensive income (loss) |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | (1209778) | (750369) |
| &nbsp;&nbsp;&nbsp;Foreign currency translation adjustment | 706308 | (378487) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Comprehensive income (loss) | (503470) | (1128856) |
| Comprehensive loss attributable to non-controlling interest | (145574) | (90293) |
| Comprehensive income (loss) attributable to partnership | $(357896) | $(1038563) |

---

RED MOUNTAIN VENTURES LIMITED PARTNERSHIP

STATEMENTS OF CHANGES IN LIMITED PARTNERSHIP INTEREST

FOR THE TWO YEARS ENDED APRIL 30, 2024

(US $)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Initial<br>Partnership<br>Interest |<br>Non-controlling<br>Interest | Partner<br>Contributions<br>(Distributions) | Other<br>Comprehensive<br>Income |<br>Accumulated<br>Deficit |<br>Total |
| Balance April 30, 2022 | $2657 | $4759153 | $34332361 | $3476863 | $(29740234) | $12830800 |
| Partnership Transfer |  | (1464934) |  |  |  | (1464934) |
| Foreign currency translation loss |  |  |  | (378487) |  | (378487) |
| Net gain/(loss) | - | (90293) | - | - | (660076) | (750369) |
| Balance April 30, 2023 | $2657 | $3203926 | $34332361 | $3098376 | $(30400310) | $10237010 |
| Partnership Transfer |  | (531341) |  |  |  | (531341) |
| Partner Distribution |  |  | (60194) |  |  | (60194) |
| Foreign currency translation gain |  |  |  | 706308 |  | 706308 |
| Net gain/(loss) | - | (145574) | - | - | (1064204) | (1209778) |
| Balance April 30, 2024 | $2657 | $2527011 | $34272167 | $3804684 | $(31464514) | $9142005 |

---

RED MOUNTAIN VENTURES LIMITED PARTNERSHIP

CONSOLIDATED STATEMENTS OF CASH FLOWS

(US$)

---

| | | |
|:---|:---|:---|
|  | Year Ended<br>April 30, 2024 | Year Ended<br>April 30, 2023 |
| Cash flows used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | $(1064204) | $(660075) |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 787451 | 778935 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 806926 | 471506 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain/ (loss) on equity investment |  | (55940) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (29978) | 141952 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory | (131893) | (85343) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 38852 | (12810) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | 2530658 | (250395) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | 469550 | 19819 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash generated from operations | 3407362 | 347649 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest paid | (806926) | (471506) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) operating activities | 2600436 | (123857) |
| Cash flows used in investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Purchase of fixed assets | (14877231) | (1363131) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (14877231) | (1363131) |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from long-term borrowings | 14114301 | 2527598 |
| &nbsp;&nbsp;&nbsp;Partner distributions | (60194) |  |
| &nbsp;&nbsp;&nbsp;Payments on long-term borrowings | (389181) | (1368136) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 13664926 | 1159462 |
| Net change in cash and restricted cash | 1388131 | (327526) |
| Cash and restricted cash balance as of May 1 | 20100 | 21268 |
| Foreign exchange translation | (314374) | 326358 |
| Cash and restricted cash balance as of April 30 | $1093857 | $20100 |
| Supplemental disclosure of non-cash financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Foreign currency translation adjustments | $(314374) | $327526 |

---

Red Mountain Ventures Limited Partnership<br> Notes to Consolidated Financial Statements<br> April 30, 2024 and 2023 <br> (US$)

**NOTE 1 – ORGANIZATION AND BASIS OF PRESENTATION**

Red Mountain Ventures Limited Partnership ("RMVLP") was formed as a British Columbia limited partnership on May 14, 2004 in connection with the acquisition of the Red Mountain Resort in Rossland, British Columbia. RMVLP is managed by its sole general partner, Red Mountain Ventures G.P. Ltd. RMVLP owns direct and indirect interests in the legal entities that carry on the business of Red Mountain Resort and hold its real estate interests. In particular, RMR Acquisition Corp ("RMRAC") (100% owned by RMVLP) is the registered owner of the majority of the real estate comprising the Red Mountain Resort. Red Resort Limited Partnership (100% owned by RMR Acquisition Corp) operates Red Mountain Resort. In addition, That Seventies Project Limited Partnership (50% owned by RMR Acquisition Corp) owns a parcel of land at the base of Red Mountain currently under development. A number of other entities used for various purposes are also beneficially owned wholly or partially by RMVLP including Red Property Management Ltd., which manages vacation rentals of privately owned condominiums at the base of Red Mountain Resort and Leroi Acquisition Corp, which owns and operates a retail store selling winter clothing and accessories and a ski and snowboard rental and service shop.

<u>RMR Acquisition Corp. ("RMRAC")</u>

RMRAC, a wholly owned subsidiary of the Partnership, owns the real property comprising Red Mountain Resort. RMRAC, directly or indirectly, through a number of subsidiaries and affiliates, has an ownership interest in certain real estate surrounding Red Mountain Resort.

<u>Red Resort Limited Partnership</u>

Red Resort Limited Partnership is a wholly owned subsidiary of RMRAC and operates Red Mountain Resort. Red Resort Limited Partnership owns the assets related to the mountain operations of Red Mountain Resort including buildings, lifts and associated equipment.

<u>Leroi Acquisition Corp.</u>

Leroi Acquisition Corp. is a wholly owned subsidiary of the Partnership which owns and operates a retail store selling winter clothing and accessories and a ski and snowboard rental and service shop at Red Mountain Resort.

<u>Red Property Management Ltd.</u>

Red Property Management Ltd. is a wholly owned subsidiary of RMRAC and provides reservations and property management services for approximately 60 privately owned condominium rental units at the base of Red Mountain.

<u>That Seventies Project Limited Partnership</u>

This partnership beneficially owns a subdivided real property for sale near the base of Red Mountain Resort through its wholly-owned subsidiary That Seventies Project Development Ltd. RMRAC owns a 50% interest in That Seventies Project Limited Partnership and third-party investors own the remaining 50% interest. Other Non-Material Subsidiaries and Affiliates:

Red Mountain Ventures Limited Partnership<br> Notes to Consolidated Financial Statements<br> April 30, 2024 and 2023 <br> (US$)

<u>Hannah Creek Limited Partnership</u>

This partnership owns certain property in Rossland, British Columbia, which was to be subdivided and developed into approximately 50 condominium units contained in two three-to-five story buildings and related infrastructure. RMRAC owns a 29.56% interest in this partnership and third-party investors own the remaining interest. This partnership is currently inactive.

<u>Slalom Creek Limited Partnership</u>

This partnership developed certain property located in the central base area of Red Mountain Resort into condominium units which have since been sold. RMRAC owns approximately a 46.5% interest in the partnership and third-party investors own the remaining 53.5% interest. This partnership is inactive and is expected to be dissolved at some point in the future.

<u>Red Development Co. Ltd.</u>

Red Development Co. Ltd., a wholly-owned subsidiary of RMRAC, acts as general partner to Hannah Creek Limited Partnership and Slalom Creek Limited Partnership.

<u>Red Mountain Hostel (CBT) Holdings Ltd.</u>

RMR Acquisition Corp entered a joint venture agreement with the Columbia Basin Trust to construct and own a hostel in the base area of Red Mountain Resort. RMR Acquisition provided the site for the hostel and the Columbia Basin Trust provided the funding for construction. RMR Acquisition Corp owns 23.49% of Red Mountain Hostel (CBT) Holdings Ltd. 1159973 BC Ltd. was created to operate the Nowhere Special Hostel. This numbered company is 100% owned by RMR Acquisition Corp.

Revenues are highly seasonal. The ski season generally runs from mid-December to early April. Red Property Management Ltd. operates year-round but sees limited business between May and November. Leroi Acquisition Corp operates only during the ski season. Between May and November Red Resort Limited Partnership performs maintenance, completes capital projects and develops sales and marketing plans for the coming ski season.

RMVLP has a year-end of December 31st. The operating companies have a fiscal year end of April 30th and the financial statements are consolidated and reported as of April 30th. The Partnership's securities are not traded on any stock exchange in Canada and thus, Red Mountain Ventures is not subject to regulation by any Canadian stock exchange. The Partnership's securities are also not registered under the United States Securities Act of 1933 nor are they traded on any securities or stock exchange in the United States. As a result, the Partnership is not presently subject to the reporting, certification or other requirements imposed on U.S. registered issuers under, among other things, U.S. Sarbanes-Oxley Act of 2002 ("SOX"). As a non-reporting issuer designation under the Canadian securities laws, the Partnership is subject to limited reporting requirements – specifically related to the issuance of securities.

Red Mountain Ventures Limited Partnership<br> Notes to Consolidated Financial Statements<br> April 30, 2024 and 2023 <br> (US$)

**NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES**

A summary of the significant accounting policies applied in the presentation of the accompanying consolidated financial statements follows:

<u>Basis of preparation</u>

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and IFRS Interpretations Committee (IFRS IC) interpretations applicable to companies reporting under IFRS. The financial statements have been prepared in United States Dollars, under the historical cost convention. The accounts have been rounded to the nearest dollar.

In the opinion of management, all adjustments considered necessary for a fair presentation have been included.

The accompanying consolidated financial statements include the accounts of the Partnership and its aforementioned subsidiaries and entities under common ownership. All significant intercompany accounts and transactions have been eliminated in consolidation. The ownership interest in subsidiaries that are held by owners other than the Partnership are recorded as non-controlling interest and reported in management's consolidated statements of financial position within partnership interest. Losses attributed to the non-controlling interest and to the Partnership are reported separately in management's consolidated statements of operations and other comprehensive income.

The accompanying consolidated financial statements have been prepared on a going concern basis which implies the Partnership will continue to meet its obligations for the next twelve months as of the date these financial statements are issued.

While management's projected cash flows are forecasted to be sufficient to meet the Partnership's obligations over the next twelve months, management believes it is prudent to continue its capital raising efforts in case its forecast is not achieved. Management's plan to continue as a going concern includes raising capital in the form of debt or equity, increased gross profit from organic revenue growth and managing and reducing operating and overhead costs. However, management cannot provide any assurances that the Partnership will be successful in accomplishing any of its plans. Management also cannot provide any assurance that unforeseen circumstances that could occur at any time within the next twelve months or thereafter will not increase the need for the Partnership to raise additional capital on an immediate basis.

However, based upon an evaluation of the Partnership's continued growth trajectory, past success in raising capital and meetings its obligations as well as its plans for raising capital discussed above, management believes that the Partnership is a going concern.

Red Mountain Ventures Limited Partnership<br> Notes to Consolidated Financial Statements<br> April 30, 2024 and 2023 <br> (US$)

<u>Cash and cash equivalents</u>

Cash and cash equivalents on the consolidated statements of financial position is comprised of cash at bank and on hand. Cash and cash equivalents include cash at hand and short-term bank deposits with original maturities of three months or less, that are not restricted as to withdrawal or use, and are therefore considered to be cash equivalents.

<u>Restricted cash</u>

Restricted cash is comprised of term deposit funds which secure letters of credit. The deposits mature and are rolled over annually. The Group has agreements in place with the Bank of Montreal that require the deposits related to certain credit facilities. As of April 30, 2024 and 2023, the restricted cash balance was $153,006 and $20,100 respectively.

<u>Accounts receivable</u>

Accounts receivables are generally unsecured. The Partnership establishes an allowance for doubtful accounts receivable based on the age of outstanding invoices and management's evaluation of collectability. Accounts are written off after all reasonable collection efforts have been exhausted and management concludes that likelihood of collection is remote. Any future recoveries are applied against the allowance for doubtful accounts. As of April 30, 2024 and 2023, allowance for doubtful accounts was $0 and $0, respectively.

<u>Inventory</u>

Inventory consists primarily of purchased retail goods, food and beverage items, and rental equipment. The Partnership's inventory is stated at the lower of cost or net realizable value, determined using primarily an average weighted cost method. As of April 30, 2024, none of the inventory was pledged as security for any liabilities.

<u>Property, plant and equipment</u>

Property, plant and equipment are stated at cost less accumulated depreciation and any impairment losses. Depreciation on assets is calculated using the diminishing balance method by applying the depreciation rate to the net book value of the asset, resulting in a diminishing annual charge. The cost/net book value is allocated over their estimated useful lives, as follows:

---

| | | |
|:---|:---|:---|
|  | Number of | Number of |
|  | Years | Years |
| Building |  | 25 |
| Trail Improvement |  | 12.5 |
| Lifts and tows and snow infrastructure |  | 16.7 |
| Furniture, fittings and equipment |  | 5 |
| Vehicles |  | 3.3 |

---

Red Mountain Ventures Limited Partnership<br> Notes to Consolidated Financial Statements<br> April 30, 2024 and 2023 <br> (US$)

The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognized within the profit and loss account.

<u>Property under development</u>

The Partnership capitalizes as real estate held for sale and investment the original land acquisition cost, direct construction and development costs, property taxes, interest recorded on costs related to real estate under development and other related costs. The Partnership records capitalized interest once construction activities commence and real estate deposits have been utilized in construction. Development costs are applied against sale proceeds on a square footage basis.

<u>Goodwill and intangible assets</u>

Goodwill arose on the acquisition of Red Mountain Resort Inc. in 2004 and subsequent amalgamation with RMRAC and consists of the excess of the purchase price of the shares over the net book value of the assets of Red Mountain Resort Inc. at the date of acquisition. The goodwill is attributed substantially to land value. The Partnership tests goodwill annually for impairment. The testing of impairment consists of a comparison of the estimated fair value of the assets with their net carrying value. The Partnership determined that there was no impairment to goodwill for the years ended April 30, 2024 and 2023.

<u>Long-lived assets</u>

The Partnership periodically reviews its long-lived assets, including identifiable intangible assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable. The Partnership recognizes an impairment loss when the sum of expected undiscounted future cash flows will not be sufficient to recover an asset's carrying amount.

The amount of impairment is measured as the difference between the estimated fair value and the book value of the underlying asset. The Partnership does not believe any events or changes in circumstances indicating an impairment of the net carrying amount of a long-lived asset occurred during the years ended April 30, 2024 and 2023.

<u>Financial Instruments- Risk Management</u>

The Group is exposed to the following financial risks through its operations:

- Risks related to the general economic trend

- Credit Risks

- Liquidity risks

- Interest Rate risk

- Foreign Exchange risk

- Risk related to the environment

- Financial instrument risks from cash and cash equivalents, trade receivables/payables, and notes payable

Red Mountain Ventures Limited Partnership<br> Notes to Consolidated Financial Statements<br> April 30, 2024 and 2023 <br> (US$)

Group management has responsibility for the determination of the Group's risk management objectives and policies. The overall objective of management is set policies the seek to reduce risk as much as possible without unduly affecting the Group's operational goals.

The granting of credit to end customers is subject to specific preliminary and on-going assessments. Positions amongst trade receivables for which objective non-recoverability is ascertained are subject to write down.

The Group's transactions are denominated in Canadian dollars. Therefore, the fair value of the financial instruments may decrease if the Canadian dollar to US dollar exchange rate decreases, while the financial instruments would decrease accordingly. Management believes the foreign exchange risk for the Group is relatively low.

<u>Finance Lease Contracts</u>

Assets held under equipment lease agreements are capitalized in the consolidated statements of financial position and are depreciated over their useful life. The corresponding purchase obligation is capitalized in the consolidated statements of financial position as a finance lease liability. The interest element of the obligation is charged to the profit or loss account over the period of the contract and represents a constant proportion of the consolidated statements of financial position capital repayments outstanding. All lease assets and liabilities are accounted for in accordance with IFRS 16.

<u>Equipment Rental And Leases</u>

The Group determines if an arrangement contains a lease at inception based on whether the Group has the right to control the asset during the contract period and other facts and circumstances. The Group elected the short-term lease recognition exemption for all leases that qualify. Consequently, for those leases that qualify, the Group will not recognize right-of use assets or lease liabilities on the consolidated statements of financial position. Short-term leases, which have an initial term of 12 months or less, are not recorded on the balance sheet and expenses are recorded on a straight-line basis.

<u>Capital Management</u>

The Group monitors adjusted capital which comprises all components of equity. The Group's objectives when maintaining capital are to safeguard the entity's ability to continue as a going concern and to provide an adequate level of return to partners and investors.

<u>Investments</u>

The Partnership owns a 50% interest in That Seventies Project, a real estate development project, and has capitalized approximately $4.5 million and $3.5 million, in development assets as of April 30, 2024 and 2023, respectively.

Red Mountain Ventures Limited Partnership<br> Notes to Consolidated Financial Statements<br> April 30, 2024 and 2023 <br> (US$)

The Partnership owned a 50% interest in the Hannah Creek Project, a real estate development project, and had capitalized approximately $0 and $1.8 million in development assets as of April 30, 2024 and April 30, 2023, respectively.

The Partnership owns a 46.49% interest in the Slalom Creek and has not incurred and or capitalized any costs in connection with this venture. This entity is expected to be dissolved in the near future.

The Group maintains 100% control and liability for the above entities. They are fully consolidated in the Group's financial statements and all income and losses pertaining to the outside investors are accounted for as a non-controlling interest.

The Partnership owns 17.6% of Red Mountain Hostel Holdings (CBT) Ltd. This investment is accounted for as an equity investment. The Partnership's investment is recorded as an asset on the consolidated statements of financial position and is adjusted each year according to the Partnership's share of gains and losses related to CBT.

<u>Foreign currencies</u>

The functional currency of the Partnership is Canadian Dollar (CAD). The reporting currency of the financial statements is United States Dollars (USD). The Group has decided to present the financial statements in US Dollar for purposes of clarity as a majority of the Group's investors are from US and international markets. The financial statements of the Group were translated pursuant to the provisions of IAS 21. Income and expenses and cash flows for each statement of profit and loss shall be translated at an appropriately weighted rate for the year. All assets and liabilities are translated at the rate of exchange ruling at the consolidated statements of financial position date. Equity accounts are translated using historical exchange rates. All differences are taken to the other comprehensive income or loss.

The exchange rates used to translate amounts in CAD into USD for the purposes of preparing the consolidated financial statements were as follows:

Balance Sheets:

---

| | | |
|:---|:---|:---|
| | April 30, 2024 | April 30, 2023 |
| Period-end CAD: USD exchange rate | $0.732270 | $0.732467 |

---

Statements of Operations/Cash Flows:

---

| | | |
|:---|:---|:---|
| | April 30, 2024 | April 30, 2023 |
| Average Yearly CAD: USD exchange rate | $0.732369 | $0.752443 |

---

Revenue recognition Revenue is measured based on the consideration specified in a contract with a customer in accordance with IFRS 15. The Group recognizes revenue when it transfers control over a product to a customer or performs the service obligation as prescribed by the contract.

Revenues are highly seasonal. The ski season generally runs from mid-December to early April. Red Property Management Ltd. Operates year-round but sees limited business between May and November. Leroi Acquisition Corp. operates only during the ski season. Between May and November Red Resort Limited Partnership performs maintenance, completes capital projects and develops sales and marketing plans for the coming ski season.

Red Mountain Ventures Limited Partnership<br> Notes to Consolidated Financial Statements<br> April 30, 2024 and 2023 <br> (US$)

Following are the specific revenue recognition criteria which must be met before revenue is recognized:

● Lift revenue is derived from the sale of lift tickets and season passes, and is recognized as services are performed. The Partnership records deferred revenue related to sale of season ski passes. The majority of season passes are sold from March 15 to April 30 each year for the following ski season and the related revenue is recognized in the first month of the new fiscal year. Season pass revenues received from May 1 to March 15 are recognized when received.

● Retail and rental revenue is derived from retail sales and equipment rentals business and is recognized as products are delivered or services are performed.

● Property management revenue is derived from providing reservations and property management services for the privately owned condominium rental units and is recognized as services are performed.

● Food and beverage revenue is derived from sale of food and beverage from three Partnership-owned restaurants and is recognized as products are delivered or services are performed.

● Real estate revenue primarily includes the sale of condominium units and land parcels and is recorded primarily using the full accrual method and occurs only upon the following: (i) substantial completion of the entire development project, (ii) receipt of certificates of occupancy or temporary certificates of occupancy from local governmental agencies, if applicable, (iii) closing of the sales transaction including receipt of all, or substantially all, sales proceeds (including any deposits previously received) and (iv) transfer of ownership.

● Other revenue primary includes ski school operations, KinderCare, locker rental, other on-mountain activities.

<u>Selling and marketing expense</u>

The Partnership expenses marketing, promotions and advertising costs as incurred. Such costs are included in selling and marketing expense in the accompanying consolidated statements of operations and other comprehensive income. Selling and marketing costs were $458,570 and $248,756 for the years ended April 30, 2024 and 2023, respectively.

<u>Comprehensive income</u>

Comprehensive income is defined as the change in equity resulting from transactions and other events from non-owner sources. Other comprehensive income refers to items recognized in comprehensive income that are excluded from consolidated net earnings.

<u>New standards, amendments and interpretations not yet adopted</u>

The IASB and IFRIC have issued the following standards and with an effective date after the date of the financial statements and have not been applied in preparing these consolidated financial statements.

Red Mountain Ventures Limited Partnership<br> Notes to Consolidated Financial Statements<br> April 30, 2024 and 2023 <br> (US$)

IFRS 17 Insurance Contracts- IFRS 17 establishes the principles for the recognition, measurement, presentation and disclosure of insurance contracts with the scope of standard. An insurance contract is a contract in which one party accepts significant risk by agreeing to compensate the policy holder if a specified uncertain future event takes place. The standard is applicable to insurance contracts, including reinsurance contracts, which the entity issues or holds. Contracts that meet the definition but primarily exist to provide services for a fixed fee are subject to IFRS 17 unless the entity has applied IFRS 15 to the service contracts. IFRS 17 will be applicable to annual reporting periods beginning on or after January 1, 2023. On initial recognition, an entity shall measure a group of insurance contracts at the total of the fulfillment of cash flow or the contractual service margin. An entity shall include all future cash flows within each contract. At subsequent measurement the carrying amount of a group of insurance contracts shall be the sum of the liability for remaining coverage and the liability for incurred claims. Management does not expect the application to have a material impact on the Group's financial statements.

There are no other IFRS or IFRIC interpretations that are not yet effective that would be expected to have a material impact on the Partnership.

**NOTE 3 – CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS**

The Partnership makes estimates and assumptions about the future that affect the reported amounts of assets and liabilities. Estimates and assumptions are continually evaluated based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. In the future, actual experience may differ from these estimates and assumptions.

The effect of a change in an accounting estimate is recognized prospectively by including it in comprehensive income in the year of the change, if the change affects that year only, or in the year of the change and future years, if the change affects both. Information about critical assumptions in applying accounting policies that have the most significant risk of causing material adjustment to the carrying amounts of assets and liabilities recognized in the consolidated financial statements within the next financial year are discussed below:

<u>Taxation</u>

The Limited Partnership accounts for income taxes in accordance with International Accounting Standard 12, Income Taxes ("IAS 12").

● Partnership

Partnership income, losses, assets, and liabilities are all attributable to the partners. As per the Canada Income Tax Act, partnerships do not file separate tax returns. The partnerships file annual "information returns" setting out their income and details of the partners who are entitled to that income. It is the partners who are required to pay income tax. The limited partnership is simply a flow-through entity. The net income of the partners (for income tax purposes) of a limited partnership is based on the net income of the limited partnership.

The net income of the limited partnership, the Act states that it is treated as if it were a separate legal person: s. 96(1)(a). Include income and deduct allowable expenses and other credits. The limited partnership's income will be attributed to the partners (as per the limited partnership agreement). Each partner must report their income or losses from the partnership and pay taxes accordingly: s. 96(1)(f).

● Corporations

Red Mountain Ventures Limited Partnership<br> Notes to Consolidated Financial Statements<br> April 30, 2024 and 2023 <br> (US$)

The Partnership owns a number of entities that are classified as a corporation for tax purposes:

For such corporations: Income tax expense is comprised of current and deferred income taxes. Current and deferred income taxes are recognized in profit and loss, except for income taxes relating to items recognized directly in equity or other comprehensive income.

Current income tax, if any, is the expected amount payable or receivable on the taxable income or loss for the period, calculated in accordance with applicable taxation laws and regulations, using income tax rates enacted or substantively enacted at the end of the reporting period and any adjustments to amounts payable or receivable relating to prior years.

Deferred income taxes are provided using the liability method based on temporary differences arising between the income tax base of assets and liabilities and their carrying amounts in the consolidated financial statements. Deferred income tax is determined using income tax rates and income tax laws and regulations that have been enacted or substantively enacted at the end of the reporting period and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled.

Deferred income taxes are recognized to the extent that it is probable that future taxable income will be available against which the temporary differences can be utilized. To the extent that the Partnership does not consider it probable that a deferred tax asset will be recovered, the deferred tax asset is reduced.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxing authority and the Partnership intends to settle its current tax assets and liabilities on a net basis. The Partnership did not record any corporation related Current or Deferred income tax, since by tax law it does not flow through to the Partnership level.

<u>Fair Value of Financial Instruments</u>

The Partnership measures its financial assets and liabilities at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., exit price) in an orderly transaction between market participants at the measurement date. Additionally, the Partnership is required to provide disclosure and categorize assets and liabilities measured at fair value into one of three different levels depending on the assumptions (i.e., inputs) used in the valuation. Level 1 provides the most reliable measure of fair value while Level 3 generally requires significant management judgment. Financial assets and liabilities are classified in their entirety based on the lowest level of input significant to the fair value measurement. The fair value hierarchy is defined as follows:

● Level 1 – Valuations are based on unadjusted quoted prices in active markets for identical assets or liabilities.

Red Mountain Ventures Limited Partnership<br> Notes to Consolidated Financial Statements<br> April 30, 2024 and 2023 <br> (US$)

● Level 2 – Valuations are based on quoted prices for similar assets or liabilities in active markets, or quoted prices in markets that are not active for which significant inputs are observable, either directly or indirectly.

● Level 3 – Valuations are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Inputs reflect management's best estimate of what market participants would use in valuing the asset or liability at the measurement date.

The recorded amounts for cash and cash equivalents, receivables, other current assets, accounts payable and accrued liabilities approximate fair value due to their short-term nature.

**NOTE 4 – CASH AND CASH EQUIVALENTS**

As of April 30, 2024 the Partnership had a cash overdraft balance of $1,122,273. This credit balance has been reclassified to current portion of long-term debt as it represents a liability for the partnership. The overdraft balance in the cash account is a result of the timing of cash flows at year end and management does not believe it will have any negative affect on business or the partnership's ability to meet its current obligations. See Note 12 for further detail.

**NOTE 5 – ACCOUNTS RECEIVABLE**

Accounts receivable, net of allowances for sales returns and doubtful accounts, consisted of the following:

---

| | | |
|:---|:---|:---|
|  | April 30, 2024 | April 30, 2023 |
| Trade Accounts receivables | $124356 | $32515 |
| Other receivables | 278407 | 340270 |
| Less allowances | - | - |
| **Total accounts receivable, net** | $**402762** | $**372785** |

---

During the years ended April 30, 2024 and 2023, there were no bad debt expenses in setting up an allowance. The Group does not expect to recognize any credit losses in future years.

**NOTE 6 – INVENTORY**

Inventory consists primarily of purchased retail goods, food and beverage items and rental equipment. The Partnership's inventory is stated at the lower of cost or net realizable value, determined using primarily an average weighted cost method. The carrying value of inventory consisted of the following:

---

| | | |
|:---|:---|:---|
|  | April 30, 2024 | April 30, 2023 |
| Retail goods | $488924 | $217572 |
| Food and beverage items | 33748 | 38589 |
| Rental equipment | 75369 | 209987 |
| **Total Inventory** | $**598041** | $**466148** |

---

Red Mountain Ventures Limited Partnership<br> Notes to Consolidated Financial Statements<br> April 30, 2024 and 2023 <br> (US$)

**NOTE 7 – PREPAID EXPENSES AND OTHER CURRENT ASSETS**

At April 30, 2024 and 2023 prepaid expenses consisted of the following:

---

| | | |
|:---|:---|:---|
|  | April 30, 2024 | April 30, 2023 |
| Prepaid expenses | $33892 | $95623 |
| Deposits | 38371 | 15492 |
| **Total** | $**72263** | $**111115** |

---

**NOTE 8 – PROPERTY, PLANT AND EQUIPMENT**

Property, plant and equipment's cost and accumulated depreciation consist of the following:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | Ski runs | Fixtures and | | | |
| Cost | Land | Building | and lifts | equipment | Total | Depreciation | NBV |
| At April 30, 2022 | $400943 | $8488330 | $10954336 | $2724829 | $22568438 | $(9406363) | $13162075 |
| Additions |  | 731757 | 132618 | 498757 | 1363132 | (758273) | 604859 |
| FX translation | (23766) | (503138) | (649310) | (161512) | (1337726) | 557554 | (780172) |
| At April 30, 2023 | $377177 | $8716949 | $10437644 | $3062074 | $22593844 | $(9607082) | $12986762 |
| Additions | 151942 | 127893 | 153672 | 177640 | 611147 | (764468) | (153321) |
| FX translation | 13966 | (848220) | 193215 | 305377 | (335662) | (21634) | (357296) |
| At April 30, 2024 | $543084 | $7996622 | $10784531 | $3545091 | $22869329 | $(10393184) | $12476145 |

---

Management of the Partnership has reviewed its fixed assets for impairment as of April 30, 2024 and 2023 and has concluded that no events or changes in circumstances have occurred that would indicate the carrying value of its fixed assets would not be recoverable.

**NOTE 9 – PROPERTY UNDER DEVELOPMENT**

Property under development includes costs directly related to construction and carrying charges during construction such as interest and property taxes. Development costs are applied against sale proceeds on a square footage basis. The Partnership was created in 2004 to own companies that acquired the resort's assets. The transactions resulted in goodwill of approximately $3.4 million. Substantially all of the goodwill was attributed to the value of the real estate associated with the acquisition. As such, goodwill has been allocated to land development costs since inception and has been amortized on a pro rata basis as cost of sales related to sales of real estate. The balance of property under development was approximately $22.7 million and $8.8 million as of April 30, 2024 and 2023 respectively. The balance of goodwill attributed to land and development costs were approximately $0 and $3.1 million as of April 30, 2024 and 2023, respectively.

Red Mountain Ventures Limited Partnership<br> Notes to Consolidated Financial Statements<br> April 30, 2024 and 2023 <br> (US$)

**NOTE 10 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES**

As of April 30, 2024 and 2023, accounts payable and accrued expenses consisted of the following:

---

| | | |
|:---|:---|:---|
|  | 2024 | 2023 |
| Trade payables | $253672 | $120970 |
| Accrued development cost | 2210310 |  |
| Accrued payroll | 256368 | 26149 |
| Accrued tax | 142046 | 134074 |
| Other | 237868 | 288414 |
| **Total** | $**3100265** | $**569607** |

---

**NOTE 11 – DEFERRED REVENUE**

---

| | | |
|:---|:---|:---|
|  | 2024 | 2023 |
| Balance at the beginning of the year | $1722554 | $1810022 |
| Received during the year | 2440305 | 4180145 |
| Amortized during the year | (2056724) | (4159785) |
| Foreign currency translation | 85969 | (107828) |
| **Balance at the end of the year** | $**2192104** | $**1722554** |

---

**NOTE 12 – DEBT**

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| Community Future Development Corp, $51,246 (CAD $70,000), June 29, 2025, 6.7% | $11329 | $15436 |
| BMO Loan Facility #1, $3,270,065 (CAD $4,200,000) March 31, 2025 7.23% | 2387786 | 2514277 |
| BMO Loan #2, $1,245,739 (CAD $1,600,000) March 31, 2025 7.23% | 479028 | 624988 |
| BMO Loan #3, $1,510,736 (CAD $2,100,000) Demand P&1.75% | 1162517 | 1275361 |
| J Busby Bridge Loan $3,512,937 (CAD $4,511,754) and $2,013,743 (CAD $2,750,000) 6% | 7192778 | 5180428 |
| Busby/Davies Loan $233,586 (CAD $300,000) | 219681 | 219740 |
| J Busby Bridge Loan 3 $81,722 (CAD $111,571) 6% | 81700 | 81722 |
| Juice Trust Promissory Note $527,603 (CAD $720,504) 6% | 527603 |  |
| KSCU Construction Loan $10,744,832 (CAD $14,673,320) 8.7% | 10744832 |  |
| CBT Construction Loan $828,123 (CAD $1,130,898), December 31, 2025, 10.2% | 828123 |  |
| BMO Overdraft (CAD $1,561,813) | 1122273 |  |
| J Busby Bridge Loan 2 $203,339 (CAD $277,608) 6% | 203284 | 203339 |
| Total loans | 24960934 | 10115291 |
| Add: accrued interest | 457396 | 281724 |
| Less: current portion | (13773256) | (368185) |
| Long-term portion | $11645074 | $10028830 |

---

Interest expense for the debts were approximately $806,817 and $471,506, for the years ended April 30, 2024 and 2023, respectively.

**NOTE 13 – TAXATION**

No deferred tax asset in respect of corporation level tax losses has been recognized given the uncertainty over the timing of future profits against which they can be offset. Partnership management believes it is more likely than not that any such losses will not be recognized by the Partnership. As of April 30, 2024 and 2023, if the Partnership had recorded a future benefit for income taxes, the amount would have totaled approximately $5.3 and $5.0 million, respectively.

Red Mountain Ventures Limited Partnership<br> Notes to Consolidated Financial Statements<br> April 30, 2024 and 2023 <br> (US$)

**NOTE 14 – RELATED PARTY TRANSACTIONS**

There are no material related party transactions for the year ended April 30, 2024 and 2023 that the Group believes would have an impact on the Partnership's financial condition, financial statements or require disclosure in the related notes to the financial statements.

**NOTE 15 – COMMITMENTS AND CONTINGENCIES**

<u>Litigation</u>

Management of the Partnership is currently not aware of any legal proceedings that management believes will have, individually or in the aggregate, a material adverse effect on the Partnership's business, financial condition or operating results.

**NOTE 16 – PARTNERSHIP CAPITAL**

The issued capital of the Partnership as of April 30, 2024 was 1,423,608 class A units, 1,693,250 class B units, 2,674,359 Class C units, 3,073,080 Class C2 units and 216,297 Class D units. On June 29, 2017, the Partnership Agreement governing the Partnership was amended to create Class C, Class C2 and Class D units. Class C units were issued on June 30, 2017 as part of the debt conversion transaction and Class C2 units were also issued.

The class A unit holders do not receive any preferential distribution or profit and loss allocations.

Subject to prior right to return of capital and preferential distribution of the Class D, C and C2 units, the Class B unit holders will receive distributions on a pro rata basis until each has received an amount equal to 100% of its capital contribution. Class B units holders are also entitled to the first right of refusal for any new issuances of class B units.

**NOTE 17 – SUBSEQUENT EVENTS**

Management has evaluated subsequent events through May 19, 2026, which is the date the financial statements were available to be issued.

On July 18, 2024, all outstanding debt owed to Jeff Busby and the Juice Trust was satisfied through (a) the payment of $72,892, and (b) the conversion of $7,871,725 into 1,079,922 Class E-2 Units of the Partnership.

On July 18, 2024, RMVGP completed the first closing (the "First Closing") of a series of capital restructuring and equity investment transactions (collectively, the "Project Snow Transactions") which resulted in the sale of 26.95% of the interest in RMR Acquisition Corp. To facilitate the First Closing, RMR Feeder G.P. Ltd. (the "Feeder GP") was organized on June 7, 2024, and RMR Feeder Limited Partnership (the "Feeder LP") was formed on July 10, 2024. At the First Closing, Feeder LP issued an aggregate of 420,000 limited partnership units to 18 third-party investors at a price of $7.29 per unit, for aggregate proceeds of $3,061,448. Feeder LP, in turn, subscribed for 4,200,000 Class E-1 Preferred Shares of RMR at $0.7289 per share ($3,061,448 in aggregate), and committed to invest an additional $8,236,752 in RMR in the future upon capital call. On November 30 and December 4, 2024 (collectively, the "Second Closing"), Feeder LP issued an additional 200,000 units at $7.13–$7.10 per unit for aggregate proceeds of approximately $1,423,000. RMR concurrently issued to Feeder LP an additional 2,000,000 Class E-1 Preferred Shares of RMR at approximately $0.71 per share. In aggregate across the First and Second Closings, Feeder LP raised approximately $4,484,440 from investors and RMR issued 6,200,000 Class E-1 Preferred Shares to Feeder LP.

Red Mountain Ventures Limited Partnership<br> Notes to Consolidated Financial Statements<br> April 30, 2024 and 2023 <br> (US$)

The CBT Construction Loan was amended four times after the 2024 Annual Period, including, (a) on July 25, 2024, to extend the maturity date to October 31, 2024, (b) on February 1, 2025, to extend the maturity date to June 30, 2025, (c) on June 20, 2025 to increase the interest rate to prime plus 2% and extend the maturity date to December 31, 2025, and (d) on March 5, 2026, to extend the maturity date to December 31, 2026.

Hannah Creek repaid the KSCU CreditMaster Construction Loan in December 2024.

In March 17, 2025, BMO Term Loan A and BMO Term Loan B were amended and restated to extend their maturity dates to March 30, 2026 and reduce their interest rates to 6.95%. April 4, 2025 altered the interest rate to 5.94 and in April 6, 2026, BMO Term Loan A and BMO Term Loan B were amended and restated to decrease their interest rates to 5.34% per annum.

In March 2025, BMO Term Loan 3 was amended to change the interest rate to prime plus 1.75% per annum.

In March 2025, the BMO Credit Facility was amended to (a) reduce the maximum credit limit from $1,497,287 to $1,043,406, (b) implement a seasonal structure, pursuant to which the credit limit is $695,604 from December through May and $1,043,406 from June through November annually, and reduce the interest rate to prime plus 1.5% per annum.

On May 12, 2025 a debt agreement was reached between RMR Acquisition Corp. and the lender J Busby in the amount of $2,033,880. The interest rate is 9%, and the loan itself is perpetual. No other subsequent events were identified through the date the financial statements were available to be issued.

**ITEM 8. EXHIBITS**

**EXHIBITS**

[2.1.](https://www.sec.gov/Archives/edgar/data/1712949/000114420417044245/v473038_ex2-1.htm) [Certificate of Limited Partnership (1)](https://www.sec.gov/Archives/edgar/data/1712949/000114420417044245/v473038_ex2-1.htm)

[2.2.](tm2611545d1_ex2-2.htm) [Amended and Restated of Certificate of Limited Partnership (2)](tm2611545d1_ex2-2.htm)

---

| | |
|:---|:---|
| [2.3.](https://www.sec.gov/Archives/edgar/data/1712949/000114420417044245/v473038_ex2-2.htm) | [Amended and Restated Limited Partnership Agreement dated July 1, 2017 (3)](https://www.sec.gov/Archives/edgar/data/1712949/000114420417044245/v473038_ex2-2.htm) |

---

[2.4.](tm2611545d1_ex2-4.htm) [Amended and Restated Limited Partnership Agreement dated July 18, 2024 (4)](tm2611545d1_ex2-4.htm)

---

| | |
|:---|:---|
| [2.5.](https://www.sec.gov/Archives/edgar/data/1712949/000114420417044245/v473038_ex6-2.htm) | [Red Mountain Ventures GP Ltd. Amended Shareholder' Agreement dated May 14, 2004 (5)](https://www.sec.gov/Archives/edgar/data/1712949/000114420417044245/v473038_ex6-2.htm) |

---

[2.6.](tm2611545d1_ex2-6.htm) [Red Mountain Ventures GP Ltd. Shareholders' Agreement dated July 18, 2024 (6)](tm2611545d1_ex2-6.htm)

[6.1.](https://www.sec.gov/Archives/edgar/data/1712949/000114420417044245/v473038_ex6-5.htm) [Operating Agreement with Province of British Columbia (7)](https://www.sec.gov/Archives/edgar/data/1712949/000114420417044245/v473038_ex6-5.htm)

---

| | |
|:---|:---|
| [6.2.](https://www.sec.gov/Archives/edgar/data/1712949/000114420417044245/v473038_ex6-2.htm) | [Community Futures Development Corporation of Greater Trail — Loan Documents (8)](https://www.sec.gov/Archives/edgar/data/1712949/000114420417044245/v473038_ex6-2.htm) |

---

[6.3.](https://www.sec.gov/Archives/edgar/data/1712949/000114420417044245/v473038_ex6-4.htm) [Bank of Montreal Loan Agreement dated August 6, 2010 (9)](https://www.sec.gov/Archives/edgar/data/1712949/000114420417044245/v473038_ex6-4.htm)

[6.4.](tm2611545d1_ex6-4.htm) [Schroetel Management Consulting Services Agreement (10)](tm2611545d1_ex6-4.htm)

[6.5.](tm2611545d1_ex6-5.htm) [Bank of Montreal Renewals and Amendments (11)](tm2611545d1_ex6-5.htm)

---

| | |
|:---|:---|
| [6.6.](https://www.sec.gov/Archives/edgar/data/1712949/000114420418047193/tv501272_ex6-6.htm) | [Bank of Montreal amended and restated Letter of Agreement dated March 2, 2018 (12)](https://www.sec.gov/Archives/edgar/data/1712949/000114420418047193/tv501272_ex6-6.htm) |

---

[6.7.](tm2611545d1_ex6-7.htm) [Kootenay Savings Credit Union — Credit Master® Construction Loan Agreement with Hannah Creek Limited Partnership, dated for reference December 22, 2022 (13)](tm2611545d1_ex6-7.htm)

[6.8.](tm2611545d1_ex6-8.htm) [CBT Commercial Finance Corp. — Construction Loan Agreement and Amendments (14)](tm2611545d1_ex6-8.htm)

[6.9.](tm2611545d1_ex6-9.htm) [Juice Trust/Jeff Busby Promissory Notes and Loan Instruments (15)](tm2611545d1_ex6-9.htm)

[11.1](tm2611545d1_ex11-1.htm) [Consent of Venning (16)](tm2611545d1_ex11-1.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Filed as an exhibit to Red Mountain Ventures Limited Partnership Regulation A Offering Statement on Form 1-A filed August 21, 2017
(Commission File No. 024-10729) and incorporated herein by reference. Available at, <br> [https://www.sec.gov/Archives/edgar/data/1712949/000114420417044245/v473038_ex2-1.htm.](https://www.sec.gov/Archives/edgar/data/1712949/000114420417044245/v473038_ex2-1.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Filed herewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Filed as an exhibit to Red Mountain Ventures Limited Partnership Regulation A Offering Statement on Form 1-A filed August 21, 2017
(Commission File No. 024-10729) and incorporated herein by reference. Available at, <br> [https://www.sec.gov/Archives/edgar/data/1712949/000114420417044245/v473038_ex2-2.htm](https://www.sec.gov/Archives/edgar/data/1712949/000114420417044245/v473038_ex2-2.htm) .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Filed herewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Filed as an exhibit to Red Mountain Ventures Limited Partnership Regulation A Offering Statement on Form 1-A filed August 21, 2017
(Commission File No. 024-10729) and incorporated herein by reference. Available at,<br> [https://www.sec.gov/Archives/edgar/data/1712949/000114420417044245/v473038_ex6-2.htm.](https://www.sec.gov/Archives/edgar/data/1712949/000114420417044245/v473038_ex2-3.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Filed herewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Filed as an exhibit to Red Mountain Ventures Limited Partnership Regulation A Offering Statement on Form 1-A filed August 21, 2017
(Commission File No. 024-10729) and incorporated herein by reference. Available at, <br> [https://www.sec.gov/Archives/edgar/data/1712949/000114420417044245/v473038_ex6-5.htm](https://www.sec.gov/Archives/edgar/data/1712949/000114420417044245/v473038_ex6-5.htm) .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) Filed as an exhibit to Red Mountain Ventures Limited Partnership Regulation A Offering Statement on Form 1-A filed August 21, 2017
(Commission File No. 024-10729) and incorporated herein by reference. Available at, <br> [https://www.sec.gov/Archives/edgar/data/1712949/000114420417044245/v473038_ex6-2.htm](https://www.sec.gov/Archives/edgar/data/1712949/000114420417044245/v473038_ex6-2.htm) .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) Filed as an exhibit to Red Mountain Ventures Limited Partnership Regulation A Offering Statement on Form 1-A filed August 21, 2017
(Commission File No. 024-10729) and incorporated herein by reference. Available at, <br> [https://www.sec.gov/Archives/edgar/data/1712949/000114420417044245/v473038_ex6-4.htm](https://www.sec.gov/Archives/edgar/data/1712949/000114420417044245/v473038_ex6-4.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) Filed herewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) Filed herewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12) Filed as an exhibit to Red Mountain Ventures Limited Partnership Regulation A Annual Report on Form 1-k filed August 30, 2018 (Commission
File No. 024-10729) and incorporated herein by reference. Available at, <br> [https://www.sec.gov/Archives/edgar/data/1712949/000114420418047193/tv501272_ex6-6.htm](https://www.sec.gov/Archives/edgar/data/1712949/000114420418047193/tv501272_ex6-6.htm) .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13) Filed herewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(14) Filed herewith

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(15) Filed herewith

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(16) Filed herewith

**SIGNATURES**

Pursuant to the requirements of Regulation A, the issuer has caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Rossland, British Columbia, on May 29, 2026.

**RED MOUNTAIN VENTURES LIMITED PARTNERSHIP**

**BY: RED MOUNTAIN VENTURES G.P. LTD.**

**ITS: GENERAL PARTNER**

---

| | |
|:---|:---|
| By: | /s/ Mark Schroetel |
|  | Mark Schroetel, Director, President<br> and Principal Executive Officer <br>|
|  | Date: May 29, 2026 |
| By: | /s/ Howard Katkov |
|  | Howard Katkov, Director |
|  | Date: May 29, 2026 |
| By: | /s/ Dyne Parker |
|  | Dyne Parker, Chief Financial Officer, Principal Financial Officer and Principal Accounting Officer |
|  | Date: May 29, 2026 |
| By: | /s/ Donald Thompson |
|  | Donald Thompson, Director |
|  | Date: May 29, 2026 |
| By: | /s/ Chris Evans |
|  | Chris Evans, Director |
| By: | /s/ David Evans |
|  | David Evans, Director |
|  | Date: May 29, 2026 |

---

## Ex1K-2A

**Exhibit 2.2**

**AMENDED**

**LP 372 414**

**FILED**

**JUL 22 2024**

**MLT**

**REGISTRAR OF COMPANIES**

**PARTNERSHIP ACT**

(Section 51 and Section 70)

**AMENDED AND RESTATED CERTIFICATE OF LIMITED PARTNERSHIP**

**RED MOUNTAIN VENTURES LIMITED PARTNERSHIP**

**(LP0372414)**

The undersigned hereby certifies that it is the sole general partner (the "**General Partner**") of Red Mountain Ventures Limited Partnership (the "**Partnership**") under a limited partnership agreement dated May 14, 2004, as amended on May 13, 2009, August 5, 2011, April 4, 2012, June 29, 2017, June 30, 2017, July 1, 2017 and July 18, 2024 (the "**Partnership Agreement**"), and that the Certificate of Limited Partnership filed with the Registrar of Companies on May 14, 2004, as amended on September 28, 2011, May 28, 2012, June 29, 2017 and July 13, 2017, is hereby amended and restated as follows (any capitalized term not otherwise defined herein has the meaning specified in the Partnership Agreement):

**1.**  **<u>BUSINESS NAME</u>** 

The name under which the business of the Limited Partnership is to be conducted is:

<u>RED MOUNTAIN VENTURES LIMITED PARTNERSHIP</u>

**2.**  **<u>REGISTERED OFFICE</u>** 

19<sup>th</sup> Floor, 885 West Georgia Street, Vancouver, British Columbia V6C 3H4

**3.**  **<u>NATURE OF BUSINESS</u>** 

The nature of the business of the Limited Partnership shall be that of the business of owning and operating the Red Mountain ski resort at Rossland, British Columbia and owning and developing certain real estate surrounding the Red Mountain Ski Resort, all of which is carried on by the Limited Partnership's Subsidiaries and Affiliates.

**4.**  **<u>GENERAL PARTNER NAME AND ADDRESS</u>** 

The full name and registered office of the General Partner is as follows:

---

| | | |
|:---|:---|:---|
| <u>General Partner</u> | 677457.0 | <u>Address</u> |
| <u>Red Mountain Ventures G.P. Ltd.</u> |  | 19<sup>th</sup> Floor, 885 West Georgia Street |
|  |  | Vancouver, B.C., V6C 3H4 |

---

**5.**  **<u>TERM OF LIMITED PARTNERSHIP</u>** 

The term of the Limited Partnership continues until the earliest of:

(i) the date on which the
 Limited Partnership is dissolved by written agreement of the Partners or otherwise dissolved
 pursuant to the terms of the Partnership Agreement; and

(ii) the date on which the
 Limited Partnership is dissolved by operation of law.

![](tm2611545d1_ex2-2img03.jpg)

**6.**  **<u>CAPITAL CONTRIBUTIONS BY LIMITED PARTNERS</u>** 

The capital contributions to date by the limited partners of the Limited Partnership ("**Limited Partners**") consists of 1,923,608 Class A voting Units of the Limited Partnership issued at $0.001 each, 1,693,250 Class B voting Units of the Limited Partnership issued at $10.00 each and 2,674,359 Class C voting Units of the Limited Partnership issued at $8.86 each.

Subject to Section 10 below, the interest in the Limited Partnership of the Partners shall be represented by:

(a) an unlimited number of
 Class A Units;

(b) an unlimited number of
 Class B Units;

(c) an unlimited number of
 Class C Units;

(d) an unlimited number of
 Class C2 Units;

(e) an unlimited number of
 Class D Units (Series CDN$ and Series USD$);

(f) an unlimited number of
 Class E-2 Units; and

(g) one General Partner's
 unit.

**7.**  **<u>ADDITIONAL CONTRIBUTIONS BY LIMITED PARTNERS</u>** 

The Partnership Agreement contains a provision which stipulates that the Limited Partners cannot be required for any reason to make any additional capital contributions to the capital of the Limited Partnership beyond their respective initial contributions. The Limited Partners and the General Partner may make additional capital contributions subject to approval of the General Partner and subject further to (i) a right of first refusal afforded to the holders of Class D Units on any issuances of Units of a class that would rank in priority to the Class D Units in respect of distributions or repayment of capital; (ii) a right of first refusal afforded to the holders of Class B Units on any issuances of Class B Units; and (iii) a requirement of written consent of all holders of Class C2 Units on any issuances of Class C2 Units.

**8.**  **<u>PARTICIPATION IN PROFITS AND DISTRIBUTIONS</u>** 

Profits and distributable cash (determined in accordance with the Partnership Agreement) arising from the Partnership will be allocated to the Limited Partners in accordance with the Partnership Agreement.

**9.**  **<u>RETURN OF CAPITAL CONTRIBUTION</u>** 

No Limited Partner has any right to withdraw or make a demand for the withdrawal of any contribution to the Limited Partnership. Interim cash distributions may be made from time to time in the General Partner's discretion. After the dissolution of the Limited Partnership, the net assets of the Limited Partnership will be distributed by the General Partner in accordance with the terms of the Partnership Agreement.

**10.**  **<u>SUBSTITUTED LIMITED PARTNERS</u>** 

An assignment of an interest is considered a transfer for the purposes of the Partnership Agreement. A Limited Partner may only transfer all or part of its interest in the Limited Partnership if the General Partner consents to such transfer in writing. A Limited Partner may transfer all, but not less than all, of its interest in the Limited Partnership to a Permitted Transferee upon prior written notice to the General Partner, provided that no such transfer shall become effective until the Permitted Transferee executes and delivers to the General Partner an acknowledgement to be bound by the Partnership Agreement in the form attached as Schedule 3.6 to the Partnership Agreement or such other form as may be acceptable to the General Partner.

Any proposed sale by a Limited Partner of its Units, may in certain circumstances trigger piggy-back rights or a carry-along requirement, all as more particularly set out in the Partnership Agreement.

Any Limited Partners may grant a Lien on all but not less than all of the Units held by it, directly or indirectly, to a Canadian or United States chartered bank, trust company or other similar recognized and reputable Canadian or United States financial institution as security for any bona fide Debt of such Limited Partner, upon meeting certain conditions set out in the Partnership Agreement.

A Limited Partner shall be deemed to be an "Ineligible Limited Partner" immediately following the occurrence of a Triggering Event. Each Limited Partner grants to the Limited Partnership an irrevocable option, exercisable in the event that it becomes an Ineligible Limited Partner, to purchase for cancellation all but not less than all of the Units held by the Ineligible Limited Partner, all in accordance with the "Ineligible Limited Partners" provisions contained in the Partnership Agreement.

**11.**  **<u>ADDITIONAL LIMITED PARTNERS</u>** 

Subject to (i) a right of first refusal afforded to the holders of Class D Units on any issuances of Units of a class that would rank in priority to the Class D Units in respect of distributions or repayment of capital, (ii) a right of first refusal afforded to the holders of Class B Units on any issuances of Class B Units, and (iii) a requirement of written consent of all holders of Class C2 Units on any issuances of Class C2 Units, the General Partner is authorized to admit Limited Partners to the Limited Partnership on and after the date hereof, without having to obtain the consent of Limited Partners to any such admission, and to add any such Limited Partner who is admitted to the Limited Partnership on and after the date hereof to the Limited Partnership's register of Limited Partners.

The General Partner shall not accept subscriptions from a subscriber unless the General Partner first receives from such subscriber:

(a) cash or a certified
 cheque representing the full amount of the subscription price for the Units subscribed for;
 and

(b) a duly completed
 and executed written acknowledgement of such subscriber to be bound by the terms of the Partnership
 Agreement, such acknowledgement to be in the form attached as Schedule 3.6 to the Partnership
 Agreement or such other form as may be acceptable to the General Partner.

The Limited Partners may transfer all or part of their Units to qualified persons who are not Limited Partners, subject to the written consent of the General Partner and providing that the qualified person delivers either an executed counterpart of the Partnership Agreement or a written acknowledgement to be bound by the terms of the Partnership Agreement, such acknowledgement to be in the form attached as Schedule 3.6 to the Partnership Agreement or such other form as may be acceptable to the General Partner.

**12.**  **<u>PRIORITY OF LIMITED PARTNERS</u>** 

The respective rights of the holders of Class A Units, Class B Units, Class C Units, Class C2 Units, Class D Units and Class E-2 Units to the rights of first refusal, distributions of the Limited Partnership and to the return of capital contributions are as set out in the Partnership Agreement. Holders of Class B Units, Class C Units and Class E-2 Units are each entitled to one vote per such Unit held. Class A Units and Class C2 Units are non-voting and Class D Units are non-voting except in certain circumstances set out in the Partnership Agreement. Otherwise, no Unit has any preference or right over any other Unit and no Limited Partner has any greater right than any other Limited Partner.

**13.**  **<u>LIMITED PARTNERS' RIGHT TO PROPERTY OTHER THAN CASH</u>** 

Other than the entitlement to share in the profits and losses of the Limited Partnership, no Limited Partner has the right to demand to receive property other than cash in return for its capital contribution.

**14.**  **<u>SUBSTITUTED OR ADDITIONAL GENERAL PARTNER</u>** 

The General Partner may resign on 120 days' written notice to the Limited Partners.

One or more of the Limited Partners holding, collectively, in the aggregate not less than 75% of each class of the issued and outstanding Class B, C and E-2 Units then entitled to vote at a meeting of the Limited Partnership, by a written resolution in one or more counterparts signed by such holders, shall be entitled to remove the General Partner and to substitute a new general partner therefor upon the happening of any of the following occurrences:

(a) the making of an
 assignment for the benefit of creditors generally by the General Partner, or the dissolution
 of the General Partner; or

(b) substantial default
 of the General Partner under the provisions of the Partnership Agreement, which default remains
 unremedied for a period in excess of 120 days from the date of receipt of notice to remedy
 such default from any of the Limited Partners;

provided, however, that the right to remove a General Partner as the general partner of the Limited Partnership shall be conditional upon the Limited Partners appointing concurrently with such removal, a new general partner to assume all the responsibilities and obligations of the General Partner under the terms of the Partnership Agreement and provided further that all amounts owing by the Limited Partnership to the former General Partner have been paid in full. Such appointment shall require the consent of one or more Limited Partners holding, collectively, an aggregate of not less than 75% of each class of all of the issued and outstanding Class B, C and E-2 Units then entitled to vote at a meeting of the Limited Partnership, by a written resolution in one or more counterparts signed by such holders.

THIS CERTIFICATE is hereby certified correct and executed by the General Partner effective as of July 18, 2024.

**RED MOUNTAIN VENTURES G.P. LTD.**

---

| | |
|:---|:---|
| Per: | /s/ Howard Katkov |
|  | Authorized Signatory |

---

## Ex1K-2A

**Exhibit 2.4**

**RED MOUNTAIN VENTURES<br> LIMITED PARTNERSHIP**

**AMENDED AND RESTATED<br> LIMITED PARTNERSHIP AGREEMENT**

**July 18, 2024**

**TABLE OF CONTENTS**

**ARTICLE 1**

**DEFINITIONS AND INTERPRETATION**

---

| | |
|:---|:---|
| Definitions | 6 |
| Headings and **Table of Contents** | 17 |
| Gender and Number | 18 |
| Currency | 18 |
| Certain Phrases | 18 |
| Invalidity of Provisions | 18 |
| Entire Agreement | 18 |
| Waiver, Amendment | 18 |
| Governing Law | 18 |
| **ARTICLE 2** | **ARTICLE 2** |
| **FORMATION, BUSINESS AND TERM OF PARTNERSHIP** | **FORMATION, BUSINESS AND TERM OF PARTNERSHIP** |
| Formation of Partnership | 19 |
| Partnership Name | 19 |
| Principal Office of Partnership | 19 |
| Purpose of Partnership | 19 |
| Jurisdictional Limitation | 19 |
| Term | 20 |
| **ARTICLE 3** | **ARTICLE 3** |
| **PARTNERSHIP UNITS** | **PARTNERSHIP UNITS** |
| Capital of the Partnership | 20 |
| Unit Certificates and Registration | 21 |
| Creation and Sale of Additional Units | 21 |
| Subscription for Units | 22 |
| Registered Holder as Absolute Owner | 22 |
| Joint Holders | 22 |
| Adjustment Upon Reorganization | 22 |
| Incapacity, Death, Insolvency or Bankruptcy | 23 |
| Defaced, Lost or Destroyed Unit Certificates | 23 |
| Fractions of a Unit | 23 |
| **ARTICLE 4** | **ARTICLE 4** |
| **CONTRIBUTIONS, ALLOCATIONS AND DISTRIBUTIONS** | **CONTRIBUTIONS, ALLOCATIONS AND DISTRIBUTIONS** |
| Capital Accounts | 23 |
| Certain Definitions | 23 |
| Allocation of Income and Loss | 24 |
| Distributions to the Limited Partners | 27 |
| Further Contributions Not Required | 28 |
| Interest on Accounts | 29 |
| Interest and Liability | 29 |
| Additional Contributions and Funding | 29 |
| Right of First Refusal for Class D Unit Holders on Priority Units | 29 |
| Right Of First Refusal of Class B Units | 30 |
| Restriction on Further Issuance of Class C2 Units | 32 |
| Expenses | 32 |

---

---

| | |
|:---|:---|
| **ARTICLE 5** | **ARTICLE 5** |
| **RELATIONSHIP BETWEEN PARTNERS** | **RELATIONSHIP BETWEEN PARTNERS** |
| Representation and Warranty of the General Partner | 32 |
| Representations and Warranties of Each Limited Partner | 32 |
| Limitations on Authority of Each Limited Partner | 33 |
| Unlimited Liability of the General Partner | 33 |
| Limited Liability of Each Limited Partner | 33 |
| Covenant of General Partner with Respect to the Partnership | 33 |
| Covenant of General Partner with Respect to Each Limited Partner | 33 |
| Indemnification by the General Partner | 34 |
| No Encumbrances or Other Transfers | 34 |
| No "Canadian Partnership" | 34 |
| **ARTICLE 6** | **ARTICLE 6** |
| **MANAGEMENT OF THE PARTNERSHIP** | **MANAGEMENT OF THE PARTNERSHIP** |
| General Authority and Obligations of the General Partner | 34 |
| Major Decisions | 36 |
| Power of the General Partner | 36 |
| Interim Investments | 37 |
| Payments to the General Partner | 37 |
| Prohibition on Commingling of The Partnership Assets | 37 |
| Register of Limited Partners and Records of the Partnership | 38 |
| Power of Attorney | 38 |
| Indemnification of the General Partner | 40 |
| **ARTICLE 7** | **ARTICLE 7** |
| **MEETINGS OF PARTNERS** | **MEETINGS OF PARTNERS** |
| Meetings of Partners | 40 |
| Notice | 41 |
| Chairman of Meeting | 41 |
| Quorum | 41 |
| Voting | 41 |
| Attendance by Officers and Directors of General Partner | 42 |
| Decisions In Writing | 42 |
| Minutes and Records of Meetings | 43 |
| Power to Execute | 43 |
| **ARTICLE 8** | **ARTICLE 8** |
| **RESIGNATION OR REMOVAL OF GENERAL PARTNER** | **RESIGNATION OR REMOVAL OF GENERAL PARTNER** |
| The General Partner to Continue to Act | 43 |
| Resignation of the General Partner | 43 |
| Removal of the General Partner | 43 |
| Transfer of Management | 44 |
| Transfer of Title, etc. | 44 |
| Successor General Partner | 45 |
| Continuity of The Partnership | 45 |
| Indemnification of Former General Partner | 45 |

---

---

| | |
|:---|:---|
| **ARTICLE 9** | **ARTICLE 9** |
| **ACCOUNTS AND BANKING** | **ACCOUNTS AND BANKING** |
| Maintenance of Accounts | 46 |
| Capital and Current Accounts | 46 |
| Bankers | 46 |
| **ARTICLE 10** | **ARTICLE 10** |
| **UNIT OWNERSHIP AND RESTRICTIONS ON TRANSFER** | **UNIT OWNERSHIP AND RESTRICTIONS ON TRANSFER** |
| Restrictions on Transfer | 46 |
| Permitted Transferees | 46 |
| Encumbering Units | 47 |
| **ARTICLE 11** | **ARTICLE 11** |
| **TRANSFERS TO THIRD PARTIES** | **TRANSFERS TO THIRD PARTIES** |
| Third Party Sale | 48 |
| Piggy-Back Rights | 48 |
| Carry-Along Requirement | 49 |
| **ARTICLE 12** | **ARTICLE 12** |
| **INELIGIBLE LIMITED PARTNERS** | **INELIGIBLE LIMITED PARTNERS** |
| Ineligible Limited Partners | 49 |
| Irrevocable Option to Purchase Units of Ineligible Limited Partner | 50 |
| Purchase Price for Units | 50 |
| Closing | 50 |
| No Sale | 51 |
| **ARTICLE 13** | **ARTICLE 13** |
| **PROCEDURE FOR SALE OF UNITS** | **PROCEDURE FOR SALE OF UNITS** |
| Application of Sale Provisions | 51 |
| Obligations of Vendor | 51 |
| Release of Guarantees | 52 |
| Deliveries to the Vendor | 52 |
| Repayment of Debts | 53 |
| Payment of Purchase Price | 53 |
| Non-Compliance with Conditions | 53 |
| Non-Completion by vendor | 53 |
| Non-Completion by Purchaser | 54 |
| No Joint Liability | 54 |
| Consents | 55 |
| **ARTICLE 14** | **ARTICLE 14** |
| **FAIR MARKET VALUE** | **FAIR MARKET VALUE** |
| Purchase Price for Units | 55 |
| Meaning of Fair Market Value | 55 |
| Estimate of Fair Market Value | 56 |

---

---

| | |
|:---|:---|
| **ARTICLE 15** | **ARTICLE 15** |
| **DISSOLUTION AND WINDING-UP** | **DISSOLUTION AND WINDING-UP** |
| No Dissolution of Partnership | 56 |
| Dissolution of Partnership | 56 |
| Operation After Dissolution of Partnership | 57 |
| Winding-Up of Partnership | 57 |
| Termination not to Affect Rights or Obligations | 59 |
| **ARTICLE 16** | **ARTICLE 16** |
| **AMENDMENTS** | **AMENDMENTS** |
| General Partner May Make Amendments | 59 |
| Amendments Requiring Approval of Limited Partners | 59 |
| **ARTICLE 17** | **ARTICLE 17** |
| **ARBITRATION** | **ARBITRATION** |
| Best Endeavours to Settle Disputes | 60 |
| Arbitration | 60 |
| **ARTICLE 18** | **ARTICLE 18** |
| **GENERAL PROVISIONS** | **GENERAL PROVISIONS** |
| Notices | 60 |
| Limited Partner Is not a General Partner | 61 |
| Time of Essence | 61 |
| Further Assurances | 61 |
| Counterparts | 61 |
| Enurement | 61 |

---

---

| | |
|:---|:---|
| **SCHEDULES** | **SCHEDULES** |
| Schedule 3.6 | Form of Acknowledgement to be Bound by Agreement |
| Schedule 13.3(d) | Form of Release by Vendor in favour of Partnership, General Partner and Subsidiaries |
| Schedule 13.5 | Form of Release by Partnership, General Partner and Subsidiaries in favour of Vendor |

---

**AMENDED AND RESTATED LIMITED PARTNERSHIP AGREEMENT**

**THIS AGREEMENT** is made as of July 18, 2024

BETWEEN:

**RED MOUNTAIN VENTURES G.P. LTD.,** a company incorporated under the laws of the Province of British Columbia and having an office at Unit D - 1990 Columbia Avenue, P.O. Box 670, Rossland, British Columbia, V0G 1Y0, facsimile No. (250) 362-5833, e-mail: Christine.Andison@redmountainventures.com

(the "**General Partner**")

AND:

Every person who becomes a Limited Partner as defined in and pursuant to this Agreement

(each a "**Limited Partner**" and collectively the "**Limited Partners**")

**WHEREAS:**

A. The General Partner and the Limited Partners entered into a Limited Partnership
 Agreement dated as of May 14, 2004, as amended May 13, 2009, August 5, 2011, April 4, 2012, June 29,
 2017, June 30, 2017 and July 1, 2017 (the "**Agreement** "), to establish the Red Mountain
 Ventures Limited Partnership the ()"**Partnership**") and to provide for the conduct of
 the business and affairs of the Partnership and to govern their relationship as Partners in the Partnership;
 and

B. The General Partner and the Limited Partners now wish to further amend
 and restate the Agreement as set out herein.

**NOW, THEREFORE,** in consideration of the mutual covenants and agreements contained in this Agreement and other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged by each of the parties hereto), the parties agree as follows:

**ARTICLE 1**

**DEFINITIONS AND INTERPRETATION**

**<u>Definitions</u>**

1.1 In this Agreement, including the recitals hereto,

"**Act**" means the *Partnership Act* (British Columbia), as may be amended from time to time and any successor legislation thereto;

"**Accountant**" means Pinnacle Professional Accounting of Castlegar, British Columbia, or such other firm of chartered accountants or certified general accountants which may at any time be appointed by resolution of the Board of Directors at any time and from time to time as the accountants of the Partnership;

"**Additional B Units**" has the meaning specified in paragraph 4.14(a);

"**Additional Priority Units**" has the meaning specified in paragraph 4.13(a);

"**Adjusted Capital Account Deficit"** means, with respect to any Partner, the deficit balance, if any, in such Partner's Capital Account as of the end of the relevant Financial Year, after giving effect to the following adjustments: (i) credit to such Capital Account any amounts that such Partner is deemed to be obligated to restore pursuant to the penultimate sentences in Regulations Sections 1.704-2(g)(1) and 1.704-2(i)(5), and (ii) debit to such Capital Account the items described in Regulations Sections 1.704-1(b)(2)(ii)(d)(4), 1.704-1(b)(2)(ii)(d)(5), and 1.704-1(b)(2)(ii)(d)(6). The foregoing definition of Adjusted Capital Account Deficit is intended to comply with the provisions of Regulations Section 1.704-1(b)(2)(ii)(d) and shall be interpreted consistently therewith;

"**Affiliate**" shall have the following meaning: a company is deemed to be an affiliate of another company if one of them is the subsidiary of the other or if both are subsidiaries of the same company or if each of them is Controlled by the same person or company;

"**Agreement**" means this amended and restated limited partnership agreement, as my be further amended and/or restated from time to time, and all schedules and instruments in amendment or confirmation of it and the expressions "hereof", "herein", "hereto", "hereunder", "hereby" and similar expressions refer to this agreement, and unless otherwise indicated, references to Articles, Sections and paragraphs are to Articles, Sections and paragraphs in this agreement;

"**Associate**" has the meaning specified in the Business Corporations Act;

"**Bid Recipient**" has the meaning specified in Section 11.8;

"**Bidder**" has the meaning specified in Section 11.8;

"**Board of Directors**" means, at any time, the board of directors of the General Partner;

"**Business**" means the business of the Partnership, being that of the business of owning and operating the Red Mountain ski resort at Rossland, British Columbia and owning and developing certain real estate surrounding the Red Mountain Ski Resort, all of which is carried on by the Partnership's Subsidiaries and Affiliates;

"**Business Corporations Act"** means the *Business Corporations Act* (British Columbia), as may be amended from time to time and any successor legislation thereto;

"**Business Day**" means any day of the year, other than a Saturday, a Sunday or any day on which banks are required or authorized to close in Rossland, British Columbia;

"**Buyer**" has the meaning specified in Section 11.1;

"**Capital Account**" means, with respect to any Partner, the capital account as maintained in accordance with Regulations Section 1.704-1(b) to which contributions to the capital of the Partnership by such Partner will be credited and amounts distributed to such Partner will be debited;

"**Capital Contribution"** means, with respect to any Partner, the amount of capital contributed by such Partner to the Partnership;

"**Certificate**" means the certificate creating the Partnership, together with any amendments thereto, as filed with the Registrar of Companies (British Columbia) pursuant to the Act;

"**Class A Participation Amount"** means $2,250,000, for the purposes of Sections 4.8 and 15.5, as the case may be;

"**Class A Participation Percentage"** means the percentage determined by dividing the Class A Participation Amount by the Total Participation Amount and multiplying that number by 100;

"**Class A Units**" means the Class A units of the Partnership issued in accordance with this Agreement;

"**Class B Participation Amount"** means $12,750,000, for the purposes of Sections 4.8 and 15.5, as the case may be;

"**Class B Participation Percentage"** means the percentage determined by dividing the Class B Participation Amount by the Total Participation Amount and multiplying that number by 100;

"**Class B Units**" means the Class B units of the Partnership issued in accordance with this Agreement;

"**Class C Capital Contribution"** means the actual aggregate amount of capital contributions made by the holders of the Class C Units;

"**Class C Participation Percentage"** means the percentage determined by dividing the Class C Capital Contribution by the Total Participation Amount and multiplying that number by 100;

"**Class C Units**" means the Class C units of the Partnership issued in accordance with this Agreement;

"**Class C2 Participation Amount"** means the aggregate amount of distributions made to the holders of Class C2 Units pursuant to paragraph 4.8(d)(ii), for the purposes of Sections 4.8 and 15.5, as the case may be;

"**Class C2 Participation Percentage"** means the percentage determined by dividing the Class C2 Participation Amount by the Total Participation Amount and multiplying that number by 100;

"**Class C2 Forward Pro Rata Share"** means (a) in respect of the holder of a majority of issued and outstanding Class C2 Units, 89.9991%, and (b) in respect of the holder of a minority of issued and outstanding Class C2 Units, 10.0009%;

"**Class C2 Initial Pro Rata Share"** means (a) in respect of the holder of a majority of issued and outstanding Class C2 Units, 89.2258%, and (b) in respect of the holder of a minority of issued and outstanding Class C2 Units, 10.7742%;

"**Class C2 Units**" means the Class C2 units of the Partnership issued in accordance with this Agreement, which shall be denominated in USD$;

"**Class D Capital Contribution"** means the actual amount of capital contributions made by the holders of the Class D Units;

"**Class D Offerees**" has the meaning specified in paragraph 4.13(a);

"**Class D Offer Period**" has the meaning specified in paragraph 4.13(b);

"**Class D Participation Percentage"** means the percentage determined by dividing the Class D Capital Contribution by the Total Participation Amount and multiplying that number by 100;

"**Class D Priority Offer**" has the meaning specified in paragraph 4.13(a);

"**Class D Units**" means the Class D units of the Partnership issued in accordance with this Agreement, which shall be denominated in a USD$ Series and a CDN$ Series;

"**Class E-2 Units**" means the Class E-2 units of the Partnership issued in accordance with this Agreement;

"**Code**" means the United States Internal Revenue Code of 1986, as amended, as hereafter amended from time to time (and reference to any particular provision of the Code shall mean that provision in the Code at the date hereof and any successor provision of the Code);

"**Control**" means (i) in relation to a Person that is a corporation, the ownership, directly or indirectly, of voting securities of such Person carrying more than 50% of the voting rights attaching to all voting securities of such Person and which are sufficient, if exercised to elect a majority of its board of directors, and (ii) in relation to a Person that is a partnership, limited partnership, business trust or other similar entity, the ownership, directly or indirectly, of voting securities of such Person carrying more than 50% of the voting rights attaching to all voting securities of the Person or ownership of other interests entitling the holder to exercise control and direction over the activities of such Person;

"**Current Account**" means the current account established on the books of the Partnership for each of the Partners to which distributable net income, gain and all other amounts to which Partners are entitled (other than capital) are credited and to which net loss and all distributions to Partners (other than distributions of capital including sale proceeds and refinancing proceeds) are charged;

"**Date of Closing**" means the date upon which a Sale Transaction is scheduled to occur, determined in accordance with the provisions of Section 4.13, Section 4.14 or Article 12, as the case may be, or such other date as the General Partner and any Offeree or third party, as applicable, mutually agree for the purposes of Section 4.13 and Section 4.14 and otherwise as the Vendor and the Purchaser under a Sale Transaction mutually agree;

"**Debt**" of any Person means (i) all indebtedness of such Person for borrowed money, including borrowings of commodities, bankers' acceptances, letters of credit or letters of guarantee, (ii) all indebtedness of such Person for the deferred purchase price of property or services represented by a note, bond, debenture or other evidence of Debt, (iii) all indebtedness created or arising under any conditional sale or other title retention agreement with respect to property acquired by such Person, (iv) all current liabilities of such Person represented by a note, bond, debenture or other evidence of Debt, and (v) all obligations under leases which have been or should be, in accordance with GAAP, recorded as capital leases in respect of which such Person is liable as lessee;

"**Debtor**" has the meaning specified in Section 10.3;

"**Depreciation**" means, for each Financial Year, an amount equal to the depreciation, amortization, or other cost recovery deduction allowable with respect to an asset for such Financial Year, except that if the Gross Asset Value of an asset differs from its adjusted basis for federal income tax purposes at the beginning of such Financial Year, Depreciation shall be an amount that bears the same ratio to such beginning Gross Asset Value as the federal income tax depreciation, amortization, or other cost recovery deduction allowable for such Financial Year bears to such beginning adjusted tax basis, provided, however, that if the adjusted basis for federal income tax purposes of an asset at the beginning of such Financial Year is zero, Depreciation shall be determined with reference to such beginning Gross Asset Value using any reasonable method selected by the General Partner;

"**Disposition Notice**" has the meaning specified in Section 11.4;

"**Dispute**" has the meaning specified in Section 17.1;

"**E-2 Participation Percentage**" means 23.41%;

"**Effective Date**" means May 14, 2004, being the date on which the Certificate was originally filed with the Registrar of Companies (British Columbia);

"**Exercise Notice**" has the meaning specified in Section 12.5;

"**Fair Market Value**" has the meaning specified in Section 14.2;

"**Financial Year**" means, in relation to the Partnership, its financial year commencing on January 1 of each calendar year and ending December 31 of that year or such other financial year as may be determined by the General Partner at any time and from time to time;

"**GAAP**" means, in relation to any Person at any time, accounting principles generally accepted in Canada as recommended in the Handbook of the Canadian Institute of Charted Accountants, applied on a basis consistent with the most recent audited financial statements of such Person and its consolidated subsidiaries except for changes approved by such Person's independent auditors;

"**General Partner**" means Red Mountain Ventures G.P. Ltd., a company incorporated under the Business Corporations Act or a predecessor thereof;

"**Governmental Entity**" means any (i) multinational, federal, provincial, state, municipal, local or other governmental or public department, central bank, court, commission, board, bureau, agency or instrumentality, domestic or foreign, (ii) any subdivision or authority of any of the foregoing, or (iii) any quasi-governmental or private body exercising any regulatory, expropriation or taxing authority under or for the account of any of the above.

"**Gross Asset Value**" means with respect to any asset, the asset's adjusted basis for federal income tax purposes, except as follows: (i) the initial Gross Asset Value of any asset contributed by a Partner to the Partnership shall be the gross fair market value of such asset, as determined by the General Partner, provided that the initial Gross Asset Values of the assets contributed to the Partnership pursuant to Section 4.1 hereof shall be as set forth in such section; (ii) the Gross Asset Values of all Partnership assets shall be adjusted to equal their respective gross fair market values (taking Code Section 7701(g) into account), as determined by the General Partner, as of the following times: (A) the acquisition of an additional interest in the Partnership by any new or existing Partner in exchange for more than a de minimis Capital Contribution; (B) the distribution by the Partnership to a Partner of more than a de minimis amount of Partnership property as consideration for an interest in the Partnership; (C) the liquidation of the Partnership within the meaning of Regulations Section 1.704-1(b)(2)(ii)(g)); and (D) in connection with the grant of an interest in the Partnership (other than a de minimis interest) as consideration for the provision of services to or for the benefit of the Partnership by an existing Partner acting in a member capacity, or by a new Partner acting in a partner capacity in anticipation of being a Partner; provided that an adjustment described in clauses (A), (B), and (D) of this paragraph shall be made only if the General Partner reasonably determines that such adjustment is necessary to reflect the relative economic interests of the Partners in the Partnership; (iii) the Gross Asset Value of any item of Partnership assets distributed to any Partner shall be adjusted to equal the gross fair market value (taking Code Section 7701(g) into account) of such asset on the date of distribution as determined by the General Partner; and (iv) the Gross Asset Values of Partnership assets shall be increased (or decreased) to reflect any adjustments to the adjusted basis of such assets pursuant to Code Section 734(b) or Section 743(b), but only to the extent that such adjustments are taken into account in determining Capital Accounts pursuant to (A) Regulations Section 1.704-1(b)(2)(iv)(m) and (B) subparagraph (vi) of the definition of "Net Profits" and "Net Losses", provided, however, that Gross Asset Values shall not be adjusted pursuant to this subparagraph (iv) to the extent that an adjustment pursuant to subparagraph (ii) is required in connection with a transaction that would otherwise result in an adjustment pursuant to this subparagraph (iv). If the Gross Asset Value of an asset has been determined or adjusted pursuant to subparagraph (i), (ii), or (iv), such Gross Asset Value shall thereafter be adjusted by the Depreciation taken into account with respect to such asset, for purposes of computing Net Profits and Net Losses;

"**Ineligible Limited Partner**" means a Limited Partner who is deemed to be an Ineligible Limited Partner pursuant to Section 12.1;

"**Issue"** means the natural born and legally adopted children of any Person who is an individual;

"**Laws"** means any and all applicable laws including all statutes, codes, ordinances, decrees, rules, regulations, municipal by-laws, judicial or arbitral or administrative or ministerial or departmental or regulatory judgments, orders, decisions, rulings or awards and general principles of common and civil law and equity, binding on or affecting the Person referred to in the context in which the word is used;

"**Lien"** means any mortgage, charge, pledge, hypothecation, security interest, assignment encumbrance, lien (statutory or otherwise), title retention agreement or arrangement, restrictive covenant or and any other encumbrances of any nature or any other arrangement or condition that in substance secures payment or performance of an obligation;

"**Limited Partner**" means, at any time, a Person who has been admitted to the Partnership as a Limited Partner or as a successor to a Limited Partner and who is shown as a Limited Partner on the Register at that time;

"**Net Profits**" and "**Net Losses**" mean, for each Financial year, an amount equal to the Partnership's taxable income or loss for such Financial year, determined in accordance with Code Section 703(a) (for this purpose, all items of income, gain, loss, or deduction required to be stated separately pursuant to Code Section 703(a)(1) shall be included in taxable income or loss), with the following adjustments (without duplication): (i) any income of the Partnership that is exempt from federal income tax and not otherwise taken into account in computing Net Profits or Net Losses pursuant to this definition of "Net Profits" and "Net Losses" shall be added to such taxable income or loss; (ii) any expenditures of the Partnership described in Code Section 705(a)(2)(B) or treated as Code Section 705(a)(2)(B) expenditures pursuant to Regulations Section 1.704-1(b)(2)(iv)(i), and not otherwise taken into account in computing Net Profits or Net Losses pursuant to this definition of "Net Profits" and "Net Losses," shall be subtracted from such taxable income or loss; (iii) in the event the Gross Asset Value of any Partnership asset is adjusted pursuant to subparagraphs (ii) or (iii) of the definition of "Gross Asset Value," the amount of such adjustment shall be treated as an item of gain (if the adjustment increases the Gross Asset Value of the asset) or an item of loss (if the adjustment decreases the Gross Asset Value of the asset) from the disposition of such asset and shall be taken into account for purposes of computing Net Profits or Net Losses; (iv) gain or loss resulting from any disposition of property with respect to which gain or loss is recognized for federal income tax purposes shall be computed by reference to the Gross Asset Value of the property disposed of, notwithstanding that the adjusted tax basis of such property differs from its Gross Asset Value; (v) in lieu of the depreciation, amortization, and other cost recovery deductions taken into account in computing such taxable income or loss, there shall be taken into account Depreciation for such Financial year, computed in accordance with the definition of Depreciation; (vi) to the extent an adjustment to the adjusted tax basis of any Partnership asset pursuant to Code Section 734(b) is required, pursuant to Regulations Section 1.704-1(b)(2)(iv)(m)(4), to be taken into account in determining Capital Accounts as a result of a distribution other than in liquidation of a Partner's interest in the Partnership, the amount of such adjustment shall be treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases such basis) from the disposition of such asset and shall be taken into account for purposes of computing Net Profits or Net Losses; and (vii) notwithstanding any other provision of this definition, any items that are specially allocated pursuant to Section 4.5 or Section 4.6 hereof shall not be taken into account in computing Net Profits or Net Losses;

"**New Purchaser"** has the meaning specified in Section 13.12;

"**New Vendor**" has the meaning specified in Section 13.12;

"**Nonrecourse Deductions**" has the meaning set forth in Regulations Sections 1.704-2(b)(1) and 1.704-2(c);

"**Nonrecourse Liability**" has the meaning set forth in "Regulations Section 1.704-2(b)(3);

"**Offer**" has the meaning specified in paragraph 4.14(a);

"**Offer Period"** has the meaning specified in paragraph 4.14(b);

"**Offerees"** has the meaning specified in Section 11.4 and, for the purposes of Section 4.14, the meaning specified in paragraph 4.14(a);

"**Offeror**" has the meaning specified in Section 11.1;

"**Ordinary Resolution**" means a resolution of the Limited Partners, or the applicable class of Unit holders, at a meeting of the Limited Partners duly called and held in accordance with this Agreement, or any adjournment thereof, and approved by the vote of Persons owning or representing in person or by proxy more than 50% of all Units present or represented and entitled to vote on the applicable resolution at the meeting, or a written resolution in one or more counterparts signed by the holders of Units owning in the aggregate more than 50% of all issued and outstanding Units which would then be entitled to be voted on the applicable resolution at a meeting of the Limited Partners;

"**Partner Nonrecourse Debt"** has the same meaning as the term "partner nonrecourse debt" in Regulations Section 1.704-2(b)(4);

"**Partner Nonrecourse Debt Minimum Gain**" means an amount, with respect to each Partner Nonrecourse Debt, equal to the Partnership Minimum Gain that would result if such Partner Nonrecourse Debt were treated as a Nonrecourse Liability, determined in accordance with Regulations Section 1.704-2(i)(3);

"**Partner Nonrecourse Deductions"** has the same meaning as the term "partner nonrecourse deductions" in Regulations Sections 1.704-2(i)(1) and 1.704-2(i)(2);

"**Partners**" means the Limited Partners and the General Partner, and a "**Partner**" means any one of them;

"**Partnership Minimum Gain"** has the same meaning as the term "partnership minimum gain" in Regulations Sections 1.704-2(b)(2) and 1.704-2(d);

"**Permitted Transferee**" means, in relation to any Person, any one or more of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Person's Spouse;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 Issue of the Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a
 trust, the sole beneficiaries of which are the Person or any Person or Persons specified
 in any one or more subsections of this definition provided that the terms of the trust include
 a valid condition precedent that the Units of a Limited Partner shall vest in the beneficiary
 of such trust only if such beneficiary has complied with the provisions of Section 10.2;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) a
 corporation, partnership or limited partnership, all of the voting securities or other ownership
 interests of which are owned by the Person or any Person or Persons specified in any one
 or more subsections of this definition; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) in
 the case where the Person holds the Units as a trustee, to the beneficiaries of that trust
 proved that the provisions of Section 10.2 are complied with;

"**Person**" means any individual, partnership, limited partnership, joint venture, syndicate, sole proprietorship, company or partnership with or without share capital, unincorporated association, trust, trustee, executor, administrator or other legal personal representative, regulatory body or agency, government or governmental agency, authority or entity however designated or constituted;

"**Piggy-Back Notice**" has the meaning specified in Section 11.5;

"**Place of Closing**" means the offices of the General Partner or such other place as the Vendor and the Purchaser under the relevant Sales Transaction mutually agree upon in writing;

"**Pledged Units**" has the meaning specified in Section 10.3;

"**Preferred Return**" means a cumulative return of nine percent (9%), calculated annually and not compounded, on an amount equal to (a) the Capital Contributions made by Limited Partners holding Class E-2 Units, minus (b) any amounts previously distributed to such Limited Partners as returns of Capital Contributions under paragraph 4.8(b) and/or paragraph 15.5(b)(v), as the case may be;

"**Priority Units**" has the meaning specified in Section 4.13;

"**Purchase Option**" has the meaning specified in Section 12.4;

"**Purchase Price**" has the meaning specified in Section 12.6 for the purposes of Article 12 and otherwise means the purchase price mutually agreed to between the Vendor and the Purchaser under the Sale Transaction;

"**Purchased Units**" has the meaning specified in (i) Section 11.1 for the purposes of Article 11, and (ii) Section 12.4 for the purposes of Article 12;

"**Purchaser**" means any Person or Persons who elect or are required to purchase Units of a Limited Partner or Limited Partners pursuant to a Sale Transaction;

"**Register**" means the register of Limited Partners of the Partnership maintained by the General Partner;

"**Regulations**" has the meaning specified in Section 4.2;

"**Sale Transaction**" has the meaning specified in (i) paragraph 4.13(d) for the purposes of Section 4.13, (ii) paragraph 4.14(e) for the purposes of Section 4.14, (iii) Section 11.3 for the purposes of Article 11 and (iv) Section 12.7 for the purposes of Article 12;

"**Section 704(b) Capital Account**" has the meaning specified in Section 4.2;

"**Secured Party**" has the meaning specified in Section 10.3;

"**Special Resolution**" means a resolution of the Limited Partners, or the applicable class of Unit holders, at a meeting of the Limited Partners, duly called and held in accordance with this Agreement, or any adjournment thereof, and approved by the vote of Persons owning or representing in person or by proxy at least 75% of all Units present or represented and entitled to vote on the applicable resolution at the meeting or a written resolution in one or more counterparts signed by the holders of Units owning in the aggregate at least 75% of all issued and outstanding Units which would then be entitled to be voted on the applicable resolution at a meeting of the Limited Partners;

"**Specified Amendment Date**" means July<u> </u>, 2024;

"**Spouse**" means, in relation to any Person who is an individual, any Person to whom that Person is married;

"**Subsidiary**" shall have the following meaning: a company is deemed to be a subsidiary of another company if (a) it is Controlled by (i) that other, or (ii) that other and one or more companies each of which is Controlled by the other, or (b) it is a subsidiary of a company that is that other's subsidiary;

"**Take-Over Bid**" has the meaning specified in Section 11.8;

"**Tax Act**" means the *Income Tax Act* (Canada);

"**Tax Loss**" means in respect of any Financial Year, the loss of the Partnership as determined under the Tax Act or the Code;

"**Taxable Income**" means in respect of any Financial Year, the income of the Partnership as determined under the Tax Act or the Code;

"**Third Party Offer**" has the meaning specified in Section 11.5;

"**Time of Closing**" means 10:00 a.m. (Vancouver time) or such other time on the Date of Closing as the Vendor and the Purchaser under a Sale Transaction mutually agree;

"**Total Participation Amount"** means the amount equivalent to the sum of the Class A Participation Amount, the Class B Participation Amount, the Class C Capital Contribution, the Class C2 Participation Amount and the Class D Capital Contribution;

"**Total Unpaid Preferred Return"** at any particular time in respect of a Limited Partner holding Class E-2 Units, means the excess, if any, of the Preferred Return as at that time over the aggregate amount of all distributions made to such Limited Partner pursuant to paragraph 4.8(c) and/or paragraph 15.5(b)(vi), as the case may be, prior to such time;

"**Transfer**" includes, in reference to any securities, (i) any transfer of such securities, directly or indirectly, by operation of law, by court order, by judicial process, or by foreclosure, levy or attachment, (ii) any sale, assignment, gift, donation, redemption, conversion or other disposition of such securities, directly or indirectly, pursuant to an agreement, arrangement, instrument or understanding by which legal title to or beneficial ownership of such securities passes from one Person to another Person or to the same Person in a different legal capacity, whether or not for value, but does not include (iii) the granting, directly or indirectly, of any Lien in or extending or attaching to such securities;

"**Transferor"** has the meaning specified in Section 10.2;

"**Triggering Event**" has the meaning specified in Section 12.1;

"**Unit Certificate**" means a certificate of ownership in a form satisfactory to the General Partner indicating that the registered holder thereof is the owner of the number and class of Units therein stated;

"**Units"** means the units representing an interest in the Partnership and carrying with them the rights and obligations applicable to units as described in this Agreement, being the Class A Units, the Class B Units, the Class C Units, the Class C2 Units, the Class D Units (denominated in a USD$ Series and a CDN$ Series) and the Class E-2 Units, and shall include, where the context permits, (i) any securities into which such units may be converted, reclassified, re-designated, subdivided, consolidated or otherwise changed, (ii) any securities of the Partnership or of any other Person received by the holders of such units as a result of any merger, amalgamation, reorganization, arrangement or other similar transaction involving the Partnership, (iii) any securities of the Partnership which are received by any one or more Persons as a distribution on or in respect of such units, (iv) other units, if any, of any class representing an interest in the Partnership and created at any time or from time to time in the future in accordance with Section 3.5, and (v) any security, other instrument or right that is convertible into or evidences the right to acquire any of the foregoing securities, and "**Unit**" means any one of them;

"**Valuation Date**" means in respect of a Triggering Event, the last day of the month immediately preceding such Triggering Event;

"**Valuator"** means a qualified valuator in the Province of British Columbia appointed by resolution of the Board of Directors at any time and from time to time;

"**Valuator's Report"** has the meaning specified in Section 14.4; and

"**Vendor"** means any Person or Persons who elect or are required to sell Units of a Limited Partner pursuant to a Sale Transaction.

**<u>Headings and **Table of Contents**</u>**

1.2 The
 inclusion of headings and a table of contents in this Agreement are for convenience of reference
 only and shall not affect the construction or interpretation hereof.

**<u>Gender and Number</u>**

1.3 In this Agreement, unless
 the context otherwise requires, words importing the singular include the plural and vice
 versa and words importing gender include all genders.

**<u>Currency</u>**

1.4 Except as otherwise expressly
 provided in this Agreement, all amounts in this Agreement are stated and shall be paid in
 Canadian currency.

**<u>Certain Phrases</u>**

1.5 In this Agreement (i)
 (y) the words "**including"** and "**includes**" mean "**including (or includes) without limitation",** and (z) the phrase "**the aggregate of", "the total of", "the sum of",** or a phrase
 of similar meaning means "**the aggregate (or total or sum), without duplication, of**" and (ii) in the computation of periods of time from a specified date to a later
 specified date, unless otherwise expressly stated, the word "**from**" means
 "**from and including**" and the words "**to**" and "**until** "
 each mean "**to but excluding".** 

**<u>Invalidity of Provisions</u>**

1.6 Each of the provisions
 contained in this Agreement is distinct and severable and a declaration of invalidity or
 unenforceability of any such provision by a court of competent jurisdiction shall not affect
 the validity or enforceability of any other provision hereof.

**<u>Entire Agreement</u>**

1.7 This Agreement constitutes
 the entire agreement between the Partners pertaining to the subject matter hereof and supersedes
 all prior and contemporaneous agreements, understandings, negotiations and discussions with
 respect to the subject matter hereof, whether oral or written, between the Partners, and
 there are no warranties, representations or agreements between the Partners in connection
 with such subject matter hereof except as specifically set forth herein.

**<u>Waiver, Amendment</u>**

1.8 Except as expressly provided
 in this Agreement (and, in particular, Article 16), no amendment or waiver of this Agreement
 shall be binding unless executed in writing by the party to be bound thereby. No waiver of
 any provision of this Agreement shall constitute a waiver of any other provision nor shall
 any waiver of any provision of this Agreement constitute a continuing waiver unless otherwise
 expressly provided.

**<u>Governing Law</u>**

1.9 This Agreement shall be
 governed by and construed in accordance with the laws of the Province of British Columbia
 and the laws of Canada applicable therein and each of the Partners irrevocably attorns to
 the non-exclusive jurisdiction of the courts of the Province of British Columbia with respect
 to any matter arising out of this Agreement.

**ARTICLE 2**

**FORMATION, BUSINESS AND TERM OF PARTNERSHIP**

**<u>Formation of Partnership</u>**

2.1 The
 General Partner and the Limited Partners confirm the previous formation of the Partnership
 effective on the Effective Date, on and subject to the terms, conditions and stipulations
 set forth in this Agreement.

**<u>Partnership Name</u>**

2.2 The
 name of the Partnership is "Red Mountain Ventures Limited Partnership" or may
 be such other name or names as the General Partner may designate from time to time, provided
 that any name bearing a substantial similarity to the name of any Partner shall require the
 consent of such Partner. The General Partner shall promptly notify each Limited Partner in
 writing of any change in the Partnership's name.

**<u>Principal Office of Partnership</u>**

2.3 The
 principal office of the Partnership shall be located at Unit D - 1990 Columbia Avenue, P.O.
 Box 670, Rossland, British Columbia, V0G 1Y0, facsimile No. (250) 362-5833, or at such other
 place or places in the Province of British Columbia as the General Partner may from time
 to time determine.

**<u>Purpose of Partnership</u>**

2.4 The
 purpose of the Partnership is to carry on the Business.

**<u>Jurisdictional Limitation</u>**

2.5 The
 Partnership shall not carry on business in any jurisdiction other than British Columbia unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in
 the opinion of counsel to the Partnership, the laws of any such jurisdiction limit the liability
 of any Limited Partner to the same extent that such Limited Partner enjoys under the laws
 of the Province of British Columbia and the General Partner has taken all steps which may
 be required by the laws of such jurisdiction in order for any Limited Partner to benefit
 from such limited liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in
 the reasonable opinion of the Board of Directors, the risk associated with the possible absence
 of limited liability in any such jurisdiction is not significant considering the relevant
 circumstances; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) business
 is carried on in any such jurisdiction through a company wholly-owned by the Partnership.

**<u>Term</u>**

2.6 Subject
 to the provisions of this Agreement, the Partnership shall commence as of the Effective Date
 and shall continue for a term ending on the earliest of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 date upon which the Partnership is voluntarily dissolved by written agreement of the Partners
 in accordance with this Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 date upon which the Partnership is dissolved by operation of law.

**ARTICLE 3**

**PARTNERSHIP UNITS**

**<u>Capital of the Partnership</u>**

3.1 Subject
 to Section 3.5, the interest in the Partnership of the Partners shall be divided into and
 represented by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) one
 General Partner's unit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) an
 unlimited number of Class A Units;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) an
 unlimited number of Class B Units;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) an
 unlimited number of Class C Units;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) an
 unlimited number of Class C2 Units;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) an
 unlimited number of Class D Units (denominated in a CDN$ Series and a USD$ Series); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) an
 unlimited number of Class E-2 Units.

The Class D Units shall be denominated in CDN$ Series and a USD$ Series and holders of each Series shall be entitled to receive distributions in the currency attached to such Series but the rights attaching to the Series of Class D Units shall otherwise be identical in all respects.

The General Partner is hereby authorized to admit Limited Partners to the Partnership on and after the Effective Date, without having to obtain the consent of existing Limited Partners and the General Partner is hereby authorized to add any such Limited Partner who is admitted to the Partnership on and after the Effective Date to the Partnership's register of Limited Partners.

3.2 The
 name and address of each Limited Partner and the number and class of Units held by such Limited
 Partner as of the date of this Agreement are shall be set out in the Register.

3.3 Except
 as otherwise specifically provided in this Agreement, a Partner holding a Unit of any class
 will as such have the same rights and obligations as each other Partner holding a
 Unit of the same or any other class and no Partner will, in respect of any Unit held by such
 Partner, have any preference, priority or right in any circumstance over any other Partner
 in respect of any Unit held by such other Partner.

**<u>Unit Certificates and Registration</u>**

3.4 Each
 Unit for which payment in full has been received by the Partnership shall be evidenced by
 a Unit Certificate which shall be signed by the General Partner and which shall be entered
 by the General Partner into the Register; provided, however, that the General Partner may,
 in its sole discretion, determine that Unit Certificates shall not be issued for all or a
 portion of Class D Units and that such Class D Units may be issued in book entry form. Subject
 to the foregoing qualification regarding Class D Units, Unit certificates shall be kept in
 the minute book of the Partnership and Limited Partners shall be entitled to receive copies
 of their Unit certificate(s), provided that the General Partner may deliver original Unit
 certificates to one or more Limited Partners in its sole discretion.

**<u>Creation and Sale of Additional Units</u>**

3.5 Subject
 to the terms of this Agreement, the General Partner may, at any time and from time to time
 at its discretion, create and offer additional Units of a class or series of a Class for
 sale to such Persons as it may determine. Any such Person may subscribe for Units by delivering
 to the General Partner a completed subscription agreement in such form as the General Partner
 may approve. The General Partner may, in its sole discretion, refuse to accept any subscription
 for Units, and if the subscription is not accepted, the subscription price, if paid, shall
 be refunded.

3.6 The
 General Partner shall be authorized to accept subscribers as new Limited Partners, without
 any further act of the Limited Partners, provided that the General Partner shall not accept
 subscriptions from a subscriber unless the General Partner first receives from such subscriber:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) cash
 or a certified cheque representing the full amount of the subscription price for the Units
 subscribed for; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a
 duly completed and executed written acknowledgement of such subscriber to be bound by the
 terms and conditions of this Agreement in the form attached as **Schedule 3.6** to this
 Agreement or such other form as may be acceptable to the General Partner.

3.7 Upon
 the acceptance by the General Partner of a subscription for Units as well as the acknowledgement
 referred to in paragraph 3.6(b) and the payment of the subscription price for such Units,
 the General Partner shall enter the subscriber in the Register as a Limited Partner and shall
 issue in the name of such subscriber a Unit Certificate specifying the number and class of
 Units purchased by such subscriber, subject to the discretion of the General Partner to issue
 any Class D Unit in book entry form.

**<u>Subscription for Units</u>**

3.8 A
 Person may subscribe for Units, as determined by the General Partner, by delivering to the
 General Partner a completed subscription form and power of attorney in a form approved by
 the General Partner. The General Partner may, in its sole discretion, refuse to accept any
 subscription for Units, and if the subscription is not accepted the subscription price shall
 be refunded.

3.9 Subject
 to this Agreement, the General Partner shall be authorized to accept subscribers as new Limited
 Partners and each Limited Partner hereby consents to the admission of new Limited Partners
 as Partners to the Partnership, without further act of each Limited Partner, provided that
 the General Partner shall not accept subscriptions from a subscriber unless the subscriber
 is able to give the representations and warranties set out in Section 5.2 and meets the requirements
 of Section 3.6.

3.10 Upon
 the acceptance by the General Partner of a subscription for Units and the payment of the
 subscription price for such Units, the General Partner shall enter the subscriber on the
 Register as a Limited Partner and shall issue in the name of such subscriber a Unit Certificate
 specifying the number of Units held by such subscriber, subject to the discretion of the
 General Partner to issue any Class D Unit in book entry form.

**<u>Registered Holder as Absolute Owner</u>**

3.11 The
 Partnership and the General Partner shall be entitled to treat the registered holder of any
 Unit as the absolute owner thereof and accordingly, shall not, except as ordered by a court
 of competent jurisdiction or as required by statute, be bound (i) to see to the execution
 of any trust, whether express, implied or constructive, (ii) by any charge, pledge or equity
 to which any Unit or any interest therein is subject, (iii) to ascertain or inquire whether
 any sale or transfer of any such Unit or interest therein by a Limited Partner or its representatives
 is authorized by such trust, charge, pledge or equity or (iv) to recognize any Person having
 an interest therein except for the Person recorded as such Limited Partner in the Register.

**<u>Joint Holders</u>**

3.12 If
 two or more persons are registered as joint holders of any Unit, the Partnership and the
 General Partner shall not be bound to issue more than one certificate in respect thereof.
 Unless otherwise provided herein, all allocations of Net Profits and Net Losses shall be
 allocated or paid to the registered holder or holders, as the case may be.

**<u>Adjustment Upon Reorganization</u>**

3.13 In
 the event of a reorganization, subdivision, redivision, reduction, combination, consolidation
 or reclassification to the capitalization of the Partnership, appropriate adjustments shall
 be made to increase or decrease, as the case may be, the number of Units held by each Partner
 on a pro rata basis at the time such event takes effect.

**<u>Incapacity, Death, Insolvency or Bankruptcy</u>**

3.14 If
 a Person becomes entitled to a Unit on the incapacity, death, insolvency or bankruptcy of
 a Limited Partner or of joint Limited Partners or otherwise by operation of law, the General
 Partner shall not be required to make any entry in the Register in respect thereof unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) such
 Person produces evidence satisfactory to the General Partner of such entitlement and has
 delivered such other evidence, approvals and consents in respect of such entitlement as the
 General Partner may require and as may be required by law or by this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) such
 Person has executed and delivered to the General Partner a written acknowledgement to be
 bound by the terms of this Agreement in the form of Schedule 3.6 to this Agreement or such
 other form as may be acceptable to the General Partner.

**<u>Defaced, Lost or Destroyed Unit Certificates</u>**

3.15 If
 a certificate representing a Unit or Units has been defaced, lost, destroyed, or wrongly
 taken, the General Partner shall cause a new certificate to be issued therefor if the Limited
 Partner in whose name such certificate is recorded files with the General Partner proof of
 loss and an indemnity bond in form satisfactory to the General Partner, acting reasonably,
 and in an amount sufficient to indemnify and hold harmless the General Partner from any costs,
 damages, liabilities or expenses incurred as a result of issuing such new certificate and
 satisfies such other reasonable requirements as are imposed by the General Partner.

**<u>Fractions of a Unit</u>**

3.16 No
 issue or Transfer of a fraction of a Unit may be made or will be recognized.

**ARTICLE 4**

**CONTRIBUTIONS, ALLOCATIONS AND DISTRIBUTIONS**

**<u>Capital Accounts</u>**

4.1 The
 Capital Accounts of each Partner shall, on the Specified Amendment Date, be the amounts the
 General Partner reasonably determines each Partner would receive if the assets of the Partnership
 were sold for fair market value on the Specified Amendment Date. The Capital Accounts on
 the Specified Amendment Date of the Partnership are intended to comply with Regulations Section
 1.704-1(b).

**<u>Certain Definitions</u>**

4.2 For
 the purposes of this Agreement, a Partner's "**Section 704(b) Capital Account** "
 shall be the aggregate of such Partner's Capital Account and such Partner's Current
 Account and shall take into account the adjustments required under the rules of U.S. Treasury
 Regulations (the "**Regulations**") Section 1.704-1(b)(2)(iv). For greater
 certainty, the determination and maintenance of each Partner's Section 704(b) Capital
 Account will be in accordance with the rules of Regulations Section 1.704-1(b)(2)(iv),
 to satisfy the requirements of Regulations Sections 1.704-1(b)(2)(ii)(d)(1) and 1.704-1(b)(2)(ii)(b)(1). The foregoing provisions and the other provisions of this Agreement relating
 to the maintenance of Capital Accounts are intended to comply with Regulations Section 1.704-1(b),
 and shall be interpreted and applied in a manner consistent with such Regulations. In the
 event the General Partner shall determine that it is prudent to modify the manner in which
 the Capital Accounts, or any debits or credits thereto (including, without limitation, debits
 or credits relating to liabilities that are secured by contributed or distributed property
 or that are assumed by the Partnership or any Partners), the General Partner may make such
 modification, provided that it is not likely to have a material effect on the amounts distributed
 to any person pursuant to Article 15 hereof upon the dissolution of the Partnership. The
 General Partner also shall (i) make any adjustments that are necessary or appropriate to
 maintain equality between the Capital Accounts of the Partners and the amount of capital
 reflected on the Partnership's balance sheet, as computed for book purposes, in accordance
 with Regulations Section 1.704-1(b)(2)(iv)(q) and (ii) make any appropriate modifications
 in the event unanticipated events might otherwise cause this Agreement not to comply with
 Regulations Section 1.704-1(b).

**<u>Allocation of Income and Loss</u>**

4.3 **Tax Allocations; Code Section 704(c).** Except as otherwise provided in this Section 4.3, each
 item of income, gain, loss and deduction of the Partnership for federal income tax purposes
 shall be allocated among the Partners in the same manner as such items are allocated for
 book purposes. In accordance with Code Section 704(c) and the Regulations thereunder, income,
 gain, loss, and deduction with respect to any property contributed to the capital of the
 Partnership shall, solely for tax purposes, be allocated among the Partners so as to take
 account of any variation between the adjusted basis of such property to the Partnership for
 federal income tax purposes and its initial Gross Asset Value (computed in accordance with
 the definition of Gross Asset Value) using any method permitted under Section 704(c) of the
 Code and the applicable Regulations selected by the General Partner. In the event the Gross
 Asset Value of any Partnership asset is adjusted pursuant to subparagraph (ii) of the definition
 of Gross Asset Value, subsequent allocations of income, gain, loss, and deduction with respect
 to such asset shall take account of any variation between the adjusted basis of such asset
 for federal income tax purposes and its Gross Asset Value in the same manner as under Code
 Section 704(c) and the Regulations thereunder. Any elections or other decisions relating
 to such allocations shall be made by the General Partner in any manner that reasonably reflects
 the purpose and intention of this Agreement, provided that any items of loss or deduction
 attributable to property contributed by a Partner shall, to the extent of an amount equal
 to the excess of (A) the federal income tax basis of such property at the time of its contribution
 over (B) the Gross Asset Value of such property at such time, be allocated in its entirety
 to such contributing Partner and the tax basis of such property for purposes of computing
 the amounts of all items allocated to any other Partner (including a transferee of the contributing
 Partner) shall be equal to its Gross Asset Value upon its contribution to the Partnership.
 Allocations pursuant to this Section 4.3 are solely for purposes of federal, state, and local
 taxes and shall not affect, or in any way be taken into account in computing, any Partner's
 Capital Account or share of Net Profits and Net Losses, other items, or distributions pursuant
 to any provision of this Agreement.

4.4 **Net Profits and Net Losses.** After giving effect to the special allocations set forth in Sections
 4.5 and 4.6 Net Profits and Net Losses (or items thereof) for any Financial year will be
 allocated among the Partners in a manner that will result in the Capital Account balance
 for each Partner (which balance may be positive or negative), after adjusting the Capital
 Account for all Capital Contributions and distributions and any special allocations required
 pursuant to this Agreement for the current and all prior Financial years, being (as nearly
 as possible) equal to (x) the amount that would be distributed to the Partner if the Partnership
 were to sell all of its assets at their current Gross Asset Value, pay all liabilities of
 the Partnership (limited, with respect to any nonrecourse liabilities, to the value reflected
 in the Partners' Capital Accounts for the assets securing such nonrecourse liabilities),
 and distribute the proceeds thereof in accordance with Section 4.8, minus (y) the Partner's
 share of Partnership Minimum Gain and Partner Nonrecourse Debt Minimum Gain.

4.5 Notwithstanding
 any provision in this Agreement to the contrary:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any
 expense of the Partnership that is a "non-recourse deduction" within the meaning
 of the Regulations Section 1.704-2(b)(1) shall be allocated in the same manner as Net Profits
 and Net Losses pursuant to Section 4.4;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any
 expense of the Partnership that is a "partner non-recourse deduction" within
 the meaning of Regulations Section 1.704-2(i)(2) shall be allocated to the Partner that bears
 the "economic risk of loss" of such deduction in accordance with Regulations
 Section 1.704-2(i)(1);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if
 there is a net decrease in the "Partnership minimum gain" within the meaning
 of Regulations Section 1.704-2(f)(1) for any Partnership taxable year, then, subject to the
 exceptions set forth in Regulations Sections 1.704-2(f)(2), (3), (4) and (5), items of gain
 and income shall be allocated among the Partners in accordance with Regulations Section 1.704-2(f)
 and the ordering rules contained in Regulations Section 1.704-2(j); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) if
 there is a net decrease in Partner non-recourse debt minimum gain within the meaning of Regulations
 Section 1.704-2(i)(4) for any Financial Year, then, subject to the exceptions set forth in
 Regulations Section 1.704-2(g), items of gain and income shall be allocated among the Partners,
 in accordance with Regulations Section 1.704-2(i)(4) and the ordering rules contained in
 Regulations Section 1.704-2(j). A Partner's "interest in Partnership profits"
 for purposes of determining its share of the non-recourse liabilities of the Partnership
 within the meaning of Regulations Section 1.752-3(a)(3) shall be such Partner's percentage
 interest, as determined under this Article 4;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) in
 the event that any Partner has an Adjusted Capital Account Deficit at the end of any Financial
 year, the Partner will be allocated items of Partnership income and gain in the amount of
 the deficit as quickly as possible; provided that an allocation pursuant to this Section
 4.5 will be made only if and to the extent that the Partner would have an Adjusted Capital
 Account Deficit after all other allocations provided for in this Section 4.5 have been tentatively
 made; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) to
 the extent an adjustment to the adjusted tax basis of any Partnership property pursuant to
 Code Section 734(b) or Code Section 743(b) is required, pursuant to Regulations Section 1.704-1(b)(2)(iv)(m)(2) or (m)(4), to be taken into account in determining Capital Accounts, the
 amount of the adjustment to the Capital Accounts will be treated as an item of gain (if the
 adjustment increases the basis of the asset) or loss (if the adjustment decreases the basis),
 and the gain or loss will be specially allocated to the Partners in accordance with their
 interests in the Partnership in the event Regulations Section 1.704-1(b)(2)(iv)(m)(2)
 applies, or to the Partner to whom the distribution was made in the event Regulations Section
 1.704-1 (b)(2)(iv)(m)(4) applies.

4.6 If
 a Partner receives in any taxable year an adjustment, allocation, or distribution described
 in subparagraphs (4), (5), or (6) of Regulations Section 1.704-1(b)(2)(ii)(d) that causes
 or increases a deficit balance in the aggregate of such Partner's Capital and Current
 Accounts that exceeds the sum of such Partner's shares of Partnership minimum gain
 and partner non-recourse debt minimum gain, as determined in accordance with Regulations
 Sections 1.704-2(g) and 1.704-2(i), such Partner shall be allocated specially for such taxable
 year (and, if necessary, later taxable years) items of income and gain in an amount and manner
 sufficient to eliminate such deficit balance as quickly as possible as provided in Regulations
 Section 1.704-1(b)(2)(ii)(d). After the occurrence of an allocation of income or gain to
 a Partner in accordance with this Section, to the extent permitted by Regulations Sections
 1.704-1(b), items of expense or loss shall be allocated to such Partner in an amount necessary
 to offset the income or gain previously allocated to such Partner under this Section.

4.7 Within
 90 days after the end of each Financial Year, the General Partner shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) determine
 the amount by which all liquid assets of the Partnership (other than those liquid assets
 representing Capital Contributions) exceed the amount which, in the opinion of the General
 Partner, is required for the Business, liabilities and operations of the Partnership; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) convert
 such liquid assets to cash and distribute such cash pursuant to the provisions of Section
 4.8, provided that no such distribution shall be made unless there remains, after making
 the distribution, sufficient property of the Partnership to satisfy all liabilities of and
 claims against the Partnership (except for liabilities to or claims by the Partners with
 respect to their Capital Contributions).

**<u>Distributions to the Limited Partners</u>**

4.8 Cash
 available for distribution, as determined by the General Partner in its sole discretion,
 shall be distributed on the following basis:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) first,
 to the holders of Class D Units on a pro rata basis based on Capital Contributions until
 each has received an amount under this paragraph 4.8(a) equal to 100% of its Capital Contribution
 (with USD$ being notionally converted to CDN$ on the date of declaration of distribution
 for the purpose of the pro rata calculation);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) second,
 to the holders of Class E-2 Units on a pro rata basis based on Capital Contributions until
 each has received an amount under this paragraph 4.8(b) equal to 100% of its Capital Contribution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) third,
 to the holders of Class E-2 Units on a pro rata basis according to their respective Total
 Unpaid Preferred Return, or on such other reasonable basis as the General Partner may determine,
 until the Total Unpaid Preferred Return of each Limited Partner is zero;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) fourth,
 (x) as to the E-2 Participation Percentage, to the holders of Class E-2 Units on a pro rata
 basis based on Capital Contributions, and (y) as to the remaining percentage, distributed
 as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to
 the holders of Class C Units on a pro rata basis until each has received an amount under
 this paragraph 4.8(d)(i) equal to 100% of its Capital Contribution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) next,
 to the holders of Class C2 Units until each has received an amount under this paragraph 4.8(d)(ii)
 equal to (i) its Class C2 Initial Pro Rata Share of $9,474,801 plus (ii) its Class C2 Forward
 Pro Rata Share of an additional $7,523 per day from June 30, 2017 up until April 18, 2019;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) next,
 to the holders of Class B Units issued on or after August 5, 2011 as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the
 holders of the most recently issued Class B Units will be distributed to such holders on
 a pro rata basis until each has received an amount under this paragraph 4.8(d)(iii) equal
 to 100% of its Capital Contribution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the
 holders of the second most recently issued Class B Units will be distributed to such holders
 on a pro rata basis until each has received an amount under this paragraph 4.8(d)(iii) equal
 to 100% of its Capital Contribution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the
 above distribution process will be repeated for each separate dates Class B Units were issued
 on or after August 5, 2011 until each holder of such Class B Units has received an amount
 under this paragraph 4.8(d)(iii) equal to 100% of its Capital Contribution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) next,
 to the holders of Class B Units issued before August 5, 2011 on a pro rata basis until each
 has received an amount under this paragraph 4.8(d) (iv) equal to 100% of its Capital Contribution;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) thereafter,
 as to the Class D Participation Percentage to the holders of Class D Units on a pro rata
 basis based on Capital Contributions (with USD$ being notionally converted to CDN$ on the
 date of declaration of distribution for the purpose of the pro rata calculation), as to the
 Class C Participation Percentage to the holders of Class C Units on a pro rata basis, as
 to the Class C2 Participation Percentage to the holders of Class C2 Units on the same proportionate
 basis as distributions made to the holders of Class C Units pursuant to paragraph 4.8(d)(ii),
 as to the Class B Participation Percentage to the holders of Class B Units on a pro rata
 basis, and as to the Class A Participation Percentage to the holders of Class A Units on
 a pro rata basis (and with respect to the holders of Class A Units, such distribution will
 first be treated as a return on capital until each holder of Class A Units has received an
 amount under this paragraph (v) equal to 100% of its Capital Contribution).

Any of the foregoing payments shall be made annually within 90 days after completion of a Financial Year, subject to the availability of funds for that purpose as determined by the General Partner and subject to the General Partner's right at any time or from time to time to make all or any of such payments more frequently than annually, as the General Partner may decide in its sole discretion. Any distribution made to any Limited Partner pursuant to any of paragraphs 4.8(a), 4.8(b), 4.8(c) and 4.8(d) shall for the purposes of this Agreement be deemed to have been made to such Limited Partner in the amount of such distribution calculated before deducting from such amount any applicable withholding taxes under the Tax Act and the Partnership shall be under no obligation to compensate such Limited Partner for any withholding taxes deducted from such distribution amount for remittance to the Canadian taxation authorities under the Tax Act.

The Partners are not entitled to demand the return of their Capital Contributions or any other distributions under this Agreement in property other than cash.

**<u>Further Contributions Not Required</u>**

4.9 No
 Partner shall be required to contribute any additional capital, and the General Partner shall
 not purport to require any additional capital contribution from any Limited Partner for any
 reason.

**<u>Interest on Accounts</u>**

4.10 No
 Partner shall have the right to receive interest on any credit balance in any Capital Account.
 Subject to the provisions of the Act, no Partner shall be liable to pay interest to the Partnership
 on any capital returned to such Partner or on any authorized debit balance in any Capital
 Account.

**<u>Interest and Liability</u>**

4.11 The
 interest of each Partner shall be personal property for all purposes. All property, real,
 personal or mixed, of the Partnership shall be deemed to be owned by the Partnership as an
 entity, and no Partner shall have any separate ownership of or interest in such property.
 Each Partner shall be liable for liabilities of the Partnership as set out under this Article
 and in accordance with Sections 5.4 and 5.5 herein.

**<u>Additional Contributions and Funding</u>**

4.12 The
 Partners may make capital contributions or otherwise advance funds to the Partnership in
 such amounts and on the terms and conditions agreed to by the General Partner, subject to
 Sections 4.13 and 4.14.

**<u>Right of First Refusal for Class D Unit Holders On Priority Units</u>**

4.13 Notwithstanding
 any other provision in this Agreement, in the event the General Partner on behalf of the
 Partnership proposes to issue any Units of a class that would rank in priority to the Class
 D Units in respect of distributions or repayment of capital (the **"Priority Units"),** no such Priority Units shall be issued except in compliance with this Section 4.13.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 General Partner shall, by notice in writing to the Limited Partners holding Class D Units
 (the **"Class D Offerees")** make an offer (the **"Class D Priority Offer")** to the Class D Offerees to have the Partnership issue for cash the number of Priority
 Units (the **"Additional Priority Units")** at the amount per Unit set out in
 the Class D Priority Offer and otherwise on and subject to any terms and conditions of the
 Class D Priority Offer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each
 Class D Offeree shall have a period of 7 days from the date the Class D Priority Offer is
 delivered by the General Partner (the **"Class D Offer Period")** to accept
 its rateable portion of the Class D Priority Offer in writing. The Class D Priority Offer
 shall be extinguished for any Class D Offeree that does not accept the Class D Priority Offer
 within the Class D Offer Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If
 the Class D Priority Offer is accepted by any of the Class D Offerees within the Class D
 Offer Period, then the Partnership shall sell and the Class D Offerees so accepting shall
 purchase the Additional Priority Units rateably to each Class D Offeree upon the terms and
 conditions set out in the Class D Priority Offer. The accepting Class D Offerees shall purchase
 the Additional Priority Units rateably based on the proportions that the Capital Contribution(s)
 made by each Class D Offeree in respect of the Class D Units held by such Class D Offeree
 is to the aggregate Capital Contributions made by all Class D Offerees in respect of the
 Class D Units (with USD$ being notionally converted to CDN$ on the date of the pro rata calculation).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The
 closing of the transaction of purchase and sale pursuant to the Class D Priority Offer (a **"Sale Transaction")** shall take place at the Place of Closing at the Time
 of Closing on the date which is 15 days after the expiry of the Class D Offer Period (the **"Date of Closing").** The Sale Transaction shall be effected in accordance
 with the general sale provisions of Article 13.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The
 General Partner may sell any or all of the Additional Priority Units set out in the Class
 D Priority Offer that remain unsold 15 days after the expiry of the Class D Offer Period
 to any third party as may be approved by the General Partner, provided that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 General Partner shall not accept subscriptions from any third party unless the subscriber
 is able to give the representations and warranties set out in Section 5.2 and meets the requirements
 of Section 3.6; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if
 the closing of the transaction of purchase and sale pursuant to this paragraph (f) has not
 closed with 90 days after the expiry of the Class D Offer Period, the General Partner shall
 not sell the Additional Priority Units remaining unsold upon such expiry without once again
 observing the Limited Partners holding Class D Units' right of first refusal under this Section
 4.13.

**<u>Right of First Refusal of Class B Units</u>**

4.14 Notwithstanding
 any other provision in this Agreement, in the event the General Partner on behalf of the
 Partnership proposes to issue Class B Units, no such Class B Units shall be issued except
 in compliance with this Section 4.14.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 General Partner shall, by notice in writing to the Limited Partners holding Class B Units
 (the **"Offerees")** make an offer (the **"Offer")** to the Offerees
 to have the Partnership issue for cash the number of Class B Units (the **"Additional B Units")** at the amount per Unit set out in the Offer and otherwise on and subject
 to any terms and conditions of the Offer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each
 Offeree shall have a period of 30 days from the date the Offer is delivered by the General
 Partner (the **"Offer Period")** to accept the Offer in writing, and each Offeree
 who accepts such Offer shall specify whether the Offeree wishes to accept the Offer (i) on
 the condition that it is able to purchase all of the Additional B Units; (ii) on the condition
 that it is able to purchase only its rateable portion of the Additional B Units (being equal
 to the number of Class B Units held by the Offeree divided by the total number of Class B
 Units issued and outstanding, multiplied by the number of Additional B Units); or (iii) and
 is prepared to purchase such other number of Additional B Units so indicated by the Offeree.
 The Offer shall be extinguished for any Offeree that does not accept the Offer within the
 Offer Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If
 the Offer is accepted by all of the Offerees within the Offer Period and all Offerees have
 indicated their willingness to purchase only their rateable portion of the Additional B Units,
 then the Partnership shall sell and the Offerees shall purchase the Additional B Units rateably
 to each Offeree upon the terms and conditions set out in the Offer. In such case, the Offerees
 shall purchase the Additional B Units rateably based on the proportions that the number of
 Class B Units of each Offeree is to the total number of Class B Units held by all Offerees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If
 the Offer is accepted by at least one Offeree during the Offer Period and one or more of
 the Offerees have indicated their willingness to purchase more or less than their rateable
 portion of the Additional B Units, then the Additional B Units will be allocated amongst
 the Offerees accepting the Offer rateably until an Offeree's acceptance has been fully satisfied
 (and for greater certainty, there may be more than one Offeree whose acceptance is first
 satisfied during the first allocation). The allocation will then be repeated amongst the
 remaining Offerees until another Offeree's acceptance has been fully satisfied (and for greater
 certainty, there may be more than one Offeree whose acceptance is next satisfied during the
 second allocation). This allocation process will be repeated until all of the Additional
 B Units have been allocated or all Offeree's acceptances have been satisfied, whichever comes
 first.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The
 closing of the transaction of purchase and sale pursuant to the Offer (a **"Sale Transaction")** shall take place at the Place of Closing at the Time of Closing on the date which is
 30 days after the expiry of the Offer Period (the **"Date of Closing").** The
 Sale Transaction shall be effected in accordance with the general sale provisions of Article

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The
 General Partner may sell any or all of the Units set out in the Offer that remain unsold
 60 days after the expiry of the Offer Period to any third party as may be approved by the
 General Partner, provided that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 General Partner shall not accept subscriptions from any third party unless the subscriber
 is able to give the representations and warranties set out in Section 5.2 and meets the requirements
 of Section 3.6; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if
 the closing of the transaction of purchase and sale pursuant to this paragraph (f) has not
 closed with 90 days after the expiry of the Offer Period, the General Partner shall not sell
 the Units remaining unsold upon such expiry without once again observing the Limited Partners
 holding Class B Units' right of first refusal under this Section 4.14.

**<u>Restriction On Further Issuance of Class C2 Units</u>**

4.15 Notwithstanding
 any other provision in this Agreement, in the event the General Partner on behalf of the
 Partnership proposes to issue Class C2 Units, no such Class C2 Units shall be issued except
 with the prior written consent of all Limited Partners holding Class C2 Units.

**<u>Expenses</u>**

4.16 The
 Partnership shall be responsible for all expenses attributable to its organization and operation
 and the carrying on of the Business, including all payments made to the General Partner as
 provided in Sections 6.9 and 6.14.

**ARTICLE 5**

**RELATIONSHIP BETWEEN PARTNERS**

**<u>Representation and Warranty of the General Partner</u>**

5.1 The
 General Partner represents and warrants to, and covenants with each Limited Partner, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it
 is a company duly incorporated and in good standing under the laws of the Province of British
 Columbia;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) it
 has all requisite licences and permits to carry on the Business in the Province of British
 Columbia;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) it
 has the capacity and corporate authority to act as general partner of the Partnership and
 the performance of its obligations hereunder as general partner does not and will not conflict
 with or constitute a breach of its charter documents or any agreement by which it is bound
 or to which it is a party; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) this
 Agreement constitutes a valid and binding obligation of the General Partner, enforceable
 against it in accordance with its terms.

**<u>Representations and Warranties of Each Limited Partner</u>**

5.2 Each
 of the Limited Partners represents and warrants to and covenants with the General Partner
 that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if
 the Limited Partner is a corporation, it is duly incorporated and in good standing under
 the laws of the jurisdiction of its incorporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) it
 has the legal capacity or competence to enter into and be bound by this Agreement and to
 take all actions required pursuant hereto, and all necessary approvals have been given for
 its entry into and performance of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) this
 Agreement constitutes a valid and binding obligation of the Limited Partner, enforceable
 against it in accordance with its terms; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) it
 shall, from time to time at the request of the General Partner, provide any evidence of compliance
 with these representations, warranties and covenants that the General Partner may reasonably
 request.

**<u>Limitations On Authority of Each Limited Partner</u>**

5.3 No
 Limited Partner shall be permitted to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) take
 any part in the control or management of the business of the Partnership or exercise any
 power in connection therewith or transact any business for the Partnership;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) execute
 any document which binds or purports to bind the Partnership or the General Partner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) purport
 to have the power or authority to bind the Partnership or the General Partner; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) have
 any authority or power to act for or undertake any obligation or responsibility on behalf
 of the Partnership.

**<u>Unlimited Liability of the General Partner</u>**

5.4 In
 accordance with the Act, the General Partner shall have unlimited liability for the debts,
 liabilities and obligations of the Partnership.

**<u>Limited Liability of Each Limited Partner</u>**

5.5 Subject
 to the Act, the liability of each Limited Partner for the debts, liabilities, obligations
 and any losses of the Partnership shall be limited to the amount of the capital contributed
 to the Partnership by each Limited Partner in respect of the interest in the Partnership
 held by each Limited Partner and no Limited Partner shall be liable for any further claims,
 assessments or contributions to the Partnership. In the event of a return of any Capital
 Contribution, each Limited Partner is nonetheless liable to the Partnership, or where the
 Partnership is dissolved, to its creditors, for any amount not in excess of the amount returned
 with interest necessary to discharge the liabilities of the Partnership to all creditors
 who extended credit or whose claims otherwise arose prior to the return of such Capital Contribution.

**<u>Covenant of General Partner with Respect to the Partnership</u>**

5.6 The
 General Partner covenants that it will act in the best interests of the Partnership from
 time to time in the carrying on of the Business and that it will not carry on any business
 or engage in any undertaking other than acting as general partner of the Partnership and
 carrying on any activities ancillary thereto and to the Business.

**<u>Covenant Of General Partner With Respect To Each Limited Partner</u>**

5.7 The
 General Partner covenants that it shall take all reasonable actions necessary to safeguard
 the limited liability of each Limited Partner, including, without limitation, ensuring that
 each of the officers, employees, agents, independent contractors and any other representatives
 of the General Partner or the Partnership refrains from making any representation to third
 parties with respect to any Limited Partner or any of its Affiliates or Associates, other
 than disclosure to the effect that each Limited Partner is a Limited Partner of the Partnership
 and has funded the Partnership on certain specified terms and conditions. The General Partner
 agrees to indemnify and hold harmless each Limited Partner from any costs, damages, liabilities
 or expenses suffered or incurred by each Limited Partner as a result of any breach of the
 aforesaid covenant.

**<u>Indemnification By The General Partner</u>**

5.8 The
 General Partner shall indemnify and hold harmless each Limited Partner from and against all
 costs incurred and damages suffered by such Limited Partner as a result of a loss of limited
 liability, other than a loss of limited liability caused by any act or omission of such Limited
 Partner. The General Partner shall indemnify and hold harmless the Partnership from and against
 all costs incurred and damages suffered by the Partnership as a result of negligence or misconduct
 by the General Partner or as the result of any act or omission by the General Partner not
 believed by it in good faith to be within the scope of the authority conferred on it by this
 Agreement.

**<u>No Encumbrances Or Other Transfers</u>**

5.9 During
 the term of this Agreement, each Partner agrees that it will hold its Units free and clear
 of all pledges, charges and encumbrances of every nature whatsoever and will not otherwise
 Transfer its Units except in strict accordance with the provisions of this Agreement.

**<u>No "Canadian Partnership"</u>**

5.10 The
 Partners acknowledge and agree that the Partnership will not qualify as a "Canadian
 Partnership" under the Tax Act due to the fact that one or more of the Limited Partners
 will be non-Canadian residents.

**ARTICLE 6**

**MANAGEMENT OF THE PARTNERSHIP**

**<u>General Authority And Obligations Of The General Partner</u>**

6.1 The
 General Partner, under the control or direction of its Board of Directors, is authorized
 and obliged to manage and administer the Business and operation of the Partnership and to
 make all decisions regarding the undertaking and Business of the Partnership and has full
 and exclusive right, power and authority to represent the Partnership and to do all things
 required of the Partnership. In this regard, the General Partner is authorized to do all
 things permitted of it or the Partnership or which the General Partner reasonably considers
 to be necessary or desirable in acting as the general partner of the Partnership and shall
 have all the rights and powers which may be possessed by a general partner pursuant to the
 Act and such rights and powers otherwise conferred by law and this Agreement, including but
 not limited to the rights and powers to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) retain
 or employ executives, employees, consultants, legal and accounting services and professional
 advice on behalf of and in the conduct of the affairs of the Partnership;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) open
 one or more bank accounts for the Partnership in the name of the Partnership with full and
 exclusive signing authority on behalf of the Partnership;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) enter
 into joint venture agreements or other agreements to carry on the Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) pay
 costs and expenditures reasonably incurred by the Partnership;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) borrow
 money for the financing of the Business and from time to time, without limit as to amount,
 draw, make, execute and issue promissory notes and other negotiable or non-negotiable instruments
 in evidence of indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) bring
 or defend on behalf of the Partnership any actions or proceedings in connection with the
 Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) file
 any returns required by a governmental or like authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) make
 any election that may be made under the Tax Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) purchase,
 lease or otherwise acquire equipment and premises in connection with the Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) maintain
 adequate records and accounts of all operations of the Business and furnish the Limited Partners
 with reports and information concerning the Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) purchase
 such liability and other insurance (including directors' and officers' liability insurance)
 as the General Partner considers appropriate and normal for the Business to protect the Partnership's
 assets and the Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) cause
 the incorporation or formation of any company or limited partnership as a company or limited
 partnership owned directly or indirectly by the Partnership if, in the opinion of the Board
 of Directors, it is necessary or desirable that any part of the Business be held in such
 company or limited partnership;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) execute
 such documents and instruments as may be reasonably required to give effect to any agreement
 it has entered into on behalf of the Partnership; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) hold
 legal title to any of the assets or property of the Partnership in its name for the benefit
 of the Partnership;

in each case, at the expense of the Partnership.

**<u>Major Decisions</u>**

6.2 Except
 as otherwise specifically provided for in this Agreement, the following matters relating
 to the Business shall require the prior consent of (i) holders of more than 75% of the then
 outstanding Class B Units, in writing or by Special Resolution passed at a meeting of holders
 of Class B Units, voting separately as a class, (ii) holders of more than 75% of the then
 outstanding Class C Units, in writing or by Special Resolution passed at a meeting of holders
 of Class C Units, voting separately as a class, and (iii) holders of more than 75% of the
 then issued and outstanding Class E-2 Units, in writing or by Special Resolution passed at
 a meeting of holders of Class E-2 Units, voting separately as a class:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 taking or instituting of any proceedings for the reorganization, dissolution or winding up
 of the Partnership;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 sale of substantially all of the assets of the Partnership;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 consolidation or merger of the Partnership with any corporation, partnership, unincorporated
 association or other legal entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the
 making of any cash distributions to the Partners other than distributions made in accordance
 with the terms of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any
 amendment to the Certificate; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any
 amendment to this Agreement that does not fall within Section 16.1 or Section 16.2.

**<u>Power of the General Partner</u>**

6.3 The
 power of the General Partner to represent the Partnership in dealings with third parties
 is unrestricted insofar as third parties are concerned and no person dealing with the Partnership
 shall be required to inquire into the authority of the General Partner to take any act or
 proceeding, to make any decision or to execute and deliver any instrument, deed, agreement
 or document for or on behalf or in the name of the Partnership.

6.4 The
 General Partner, for and on behalf of and in the name of the Partnership, may contract with
 any Person to carry out any of the duties of the General Partner and the General Partner
 may delegate to such Person any power and authority of the General Partner, including any
 power and authority to authorize others to act.

6.5 The
 General Partner shall exercise its powers and discharge its duties honestly, in good faith
 and in the best interests of the Partnership and shall manage and operate the Partnership
 and the assets and undertaking thereof with the care, diligence and skill of a prudent and
 reasonable person.

6.6 The
 General Partner undertakes to make all required filings under the Tax Act and analogous legislation
 on the necessary prescribed forms following the Financial Year and within the prescribed
 time periods. Furthermore, the General Partner undertakes to file before March 31 each year
 the information return required by the Tax Act concerning the identity of the Limited Partners,
 the income and losses of the Partnership, the number of Units held by each of the Limited
 Partners in the Partnership as well as the deductions allocated to the Limited Partners,
 it being understood that the General Partner will cause the Partnership to claim maximum
 deductions or allowances for tax purposes to minimize the taxable income or maximize the
 taxable loss allocable to the Limited Partners.

6.7 The
 General Partner shall not cause the Partnership to guarantee the obligations, liabilities
 of, or make any loans to, the General Partner or to any entity with which the General Partner
 does not deal at arm's length (and for greater certainty, the General Partner shall not be
 deemed not to be dealing at arm's length with any entity or any entity wholly-owned by the
 Partnership if such dealing arises out of the General Partner's duties and obligations as
 general partner of the Partnership under this Agreement).

**<u>Interim Investments</u>**

6.8 The
 General Partner may invest or cause to be invested funds not immediately required for the
 operation of the Partnership in securities issued or guaranteed by the government of Canada
 or any Canadian province or any certificate of deposit or any interest-bearing account with
 any Canadian chartered bank or trust company (with interest accruing to the Partnership until
 required for the purposes of the Partnership) or in such other investment vehicles which
 may be approved by the Board of Directors from time to time.

**<u>Payments to the General Partner</u>**

6.9 The
 General Partner shall be reimbursed by the Partnership for all costs and expenses incurred
 by the General Partner in the operation of the Business on a monthly basis and any advance
 by the General Partner to the Partnership together with interest thereon at the rate charged
 to the General Partner from time to time by its banker, including, without limitation, administrative
 and overhead expenses and the cost of such professional, technical, administrative and other
 services and advice as the General Partner shall consider necessary.

**<u>Prohibition on Commingling of The Partnership Assets</u>**

6.10 The
 funds and assets of the Partnership may not be commingled with the funds or assets of the
 General Partner or with those of any other Person.

**<u>Register of Limited Partners And Records of the Partnership</u>**

6.11 The
 General Partner will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) maintain
 a registered office for the Partnership;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) maintain
 at the Partnership's principal place of business in British Columbia as the Register a current
 register of the Limited Partners, stating each such Partner's name and address, the amount
 of money and the value of other property contributed or to be contributed by such Partner,
 such Partner's corporation number (if any) and any other information required by law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) keep
 and maintain or cause to be kept and maintained proper, complete and accurate books of account,
 in accordance with GAAP, and records of the business of the Partnership, and will enter and
 record or cause to be entered and recorded therein fully and accurately all transactions
 and other matters related to the business and affairs of the Partnership;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) maintain
 any other records as reasonably required or desirable by law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) make
 on behalf of the Partnership all recordings or filings with any governmental authority that
 are reasonably required or desirable to be made by the Partnership;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) keep
 at the registered office of the Partnership a copy of the Certificate and a copy of this
 Agreement, together with any amendments thereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) maintain
 and preserve during the term of the Partnership and for seven years thereafter, all accounts,
 books and other relevant Partnership documents.

The General Partner shall make the records of the Partnership maintained by the General Partner in accordance with this Section 6.11 and Sections 9.1 through 9.3 available for inspection by any Limited Partner, or its agent duly authorized in writing, during normal business hours and at the expense of the Limited Partner requesting such inspection.

**<u>Power of Attorney</u>**

6.12 Each
 Limited Partner hereby irrevocably grants to the General Partner, its successors and assigns,
 a power of attorney constituting the General Partner, with full power of substitution, as
 the Limited Partner's true and lawful attorney and agent, with full power and authority,
 in the Limited Partner's name, place and stead to execute, under seal or otherwise, swear
 to, acknowledge, deliver, and record or file, as the case may be, as and where required:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Certificate, any amendment to the Certificate or any other certificate or instrument which
 the General Partner deems necessary or appropriate to qualify, continue the qualification
 of, or keep in good standing, the Partnership in, or otherwise comply with the laws of, the
 Province of British Columbia or any other jurisdiction wherein the Partnership may carry
 on or be deemed to carry on the Business, or the General Partner may deem it prudent to register
 the Partnership, in order to maintain the limited liability of the Limited Partners or to
 comply with applicable laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any
 certificate or other instrument which the General Partner deems necessary or appropriate
 to reflect any amendment, change or modification of the Partnership in accordance with the
 terms of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any
 certificate or other instrument which the General Partner deems necessary or appropriate
 to comply with the laws of Canada or any political subdivision of Canada or with the laws
 of any other jurisdiction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any
 conveyance or other instrument which the General Partner deems necessary or appropriate to
 reflect or in connection with the dissolution or termination of the Partnership pursuant
 to the terms of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any
 instrument required in connection with any election, designation or determination relating
 to the Partnership under the Tax Act or other fiscal legislation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any
 documents which the General Partner deems necessary or appropriate to be filed in connection
 with the Business, assets or undertaking of the Partnership or this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any
 document required to be filed with any governmental body, agency or authority in connection
 with the Business, assets or undertaking of the Partnership or this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) any
 transfer forms or other certificate or instrument on behalf of or in the name of whomsoever
 as may be necessary to effect the transfer of any Unit in accordance with the terms of this
 Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any
 instrument relating to the admission of additional or substituted Limited Partners; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) any
 document or instrument on behalf of and in the name of the Partnership or any Limited Partner
 as may be required to give effect to this Agreement including, without limitation and for
 greater certainty, any amendment to or amendment and restatement of this Agreement authorized
 in accordance with this Agreement.

6.13 The
 foregoing power of attorney is hereby declared by each Limited Partner to be an irrevocable
 power coupled with an interest, and to the extent permitted by law it shall survive the death
 or incapacity of the Limited Partner and shall extend to and bind the heirs, executors, administrators,
 successors and assigns of each Limited Partner.

**<u>Indemnification of the General Partner</u>**

6.14 Subject
 to Section 6.15, the General Partner and its directors, officers, agents, employees and representatives
 (each an **"Indemnified Person")** shall be indemnified and held harmless out
 of the assets of the Partnership from any loss, liability or damage incurred or suffered
 by such Indemnified Person by reason of any act performed or omitted to be performed by such
 Indemnified Person in connection with the Business (other than a breach of this Agreement),
 including legal fees incurred by such Indemnified Person in connection with the defense of
 any claim or action based on any such act or omission, which legal fees shall be paid as
 incurred, except to the extent that indemnification is prohibited by law. Any indemnification
 required herein to be made by the Partnership will be made promptly following the fixing
 of the loss, liability or damage incurred or suffered by such Indemnified Person by a final
 judgment of any court, settlement, contract or otherwise.

6.15 An
 Indemnified Person:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) shall
 not be entitled to the indemnification provided for under Section 6.14 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) shall
 be liable to the Partnership for any loss, liability or damage suffered or incurred by the
 Partnership, directly or indirectly, in connection with any course of conduct,

if such loss, liability or damage arises out of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any
 criminal, fraudulent or dishonest act or wilful violation of any statute, rule or law on
 the part of the Indemnified Person; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) gross
 negligence on the part of the Indemnified Person, with gross negligence being defined for
 these purposes as a conscious, voluntary act or omission by such Person in reckless disregard
 of such Person's legal duties and of the consequences to the Partnership.

6.16 The
 Partnership shall indemnify and hold the General Partner harmless from any loss, liability
 or damage, including legal fees, incurred or suffered by the General Partner as a result
 of any claim or claims for which the General Partner is liable as such or any claim or claims
 for any Partnership obligation which the Partnership is unable to pay.

**ARTICLE 7**

**MEETINGS OF PARTNERS**

**<u>Meetings of Partners</u>**

7.1 The
 General Partner may at any time, and from time to time, and shall within 30 Business Days
 from its receipt of a written request from a Limited Partner or Limited Partners holding
 in the aggregate more than 50% of the outstanding Class B Units or more than 50% of the Class
 C Units or more than 50% of the outstanding Class E-2 Units, convene a meeting of the Partners.
 In the event of the General Partner's failing to convene such meeting within 30 Business
 Days after receipt of a written request by such Limited Partner or Limited Partners entitled
 to vote at such meeting, such Limited Partner or Limited Partners may convene such a meeting.
 The General Partner may, at its sole discretion, but shall not be obligated to convene annual
 meetings of Partners.

7.2 Every
 meeting of the Partners shall be held at the registered office of the Partnership or at such
 other place in British Columbia as the General Partner may determine at any time or from
 time to time. If the Chairman so permits, Partners may attend meetings by telephone.

**<u>Notice</u>**

7.3 The
 General Partner shall give notice of any meeting to the Limited Partners entitled to vote
 at such meeting in a form and manner which the General Partner in its discretion determines
 to be appropriate, provided that the General Partner shall give at least 21 days' notice
 of any meeting of the Partners.

7.4 Holders
 of Class A Units and Class D Units shall not be entitled to receive notices of meetings except
 in the case of Class D Units as required pursuant to Section 16.3.

**<u>Chairman of Meeting</u>**

7.5 The
 President of the General Partner, or in his absence, any other officer or director of the
 General Partner, shall be the Chairman of any meeting of the Partners. Failing the presence
 of any officer or director of the General Partner at any meeting of the Partners, the meeting
 may elect a Chairman by the majority of the votes cast.

**<u>Quorum</u>**

7.6 Subject
 to Section 7.7, a quorum at any Partnership meeting of the Limited Partners shall consist
 of two Partners or their representatives present and owning or representing, in person or
 by proxy, at least 50% of the issued and outstanding Class B Units, at least 50% of the issued
 and outstanding Class C Units, at least 50% of the issued and outstanding Class E-2 Units,
 and, only in respect of a meeting pursuant to Section 16.3, at least 50% of the issued and
 outstanding Class D Units.

7.7 If
 a quorum is not present within 30 minutes of the time fixed for holding a Partnership meeting,
 the meeting shall stand adjourned to the same day in the next week at the same time and place.
 If at the adjourned meeting a quorum is not present within 30 minutes from the time appointed,
 the Partners present in person, by proxy or by authorized representative shall constitute
 a quorum.

**<u>Voting</u>**

7.8 Subject
 to Section 7.12 and any other provision in this Agreement, on any question submitted to a
 meeting of Partners, each Partner shall be entitled to cast one vote for each Unit held,
 and, except as otherwise specified in this Agreement, matters submitted for approval shall
 be deemed to be approved only if approved by Ordinary Resolution. Unless this Agreement,
 the Act or any other applicable law requires that holders of any class of Units vote on any
 matter separately as a class, the Class B Units, the Class C Units and the Class E-2 Units
 shall be considered identical for the purposes of meetings of Partners, each such Unit entitling
 the holder to one vote.

7.9 For
 greater certainty, notwithstanding Section 7.8 and except as required pursuant to Section
 16.3 in respect of Class D Units, the holders of Class A Units and Class D Units shall not
 be entitled to vote at meetings.

7.10 Votes
 at meetings of the Partners may be cast personally or by proxy. The instrument appointing
 a proxy shall be in writing in a form acceptable to the General Partner, and if executed
 by a corporation, shall be signed by an officer or attorney duly authorized in writing. Any
 individual may be appointed as proxy and such individual need not be a Limited Partner. The
 Chairman of any meeting shall determine the validity of all instruments of proxy to be utilized
 at such meeting.

7.11 A
 vote in accordance with the terms of an instrument of proxy shall be valid notwithstanding
 revocation of the proxy or transfer of the Unit in respect of which the proxy was given,
 provided that no notice in writing of such revocation or transfer shall have been received
 by an officer or director of the General Partner prior to the time fixed for the holding
 of the meeting.

7.12 Notwithstanding
 Section 7.8, only Limited Partners holding Units who are registered as such in the Partnership's
 Register on the day prior to the date of the notice and who are not in breach of any provision
 of this Agreement and are in good standing with respect to their monetary obligations to
 the General Partner, shall have the right to receive notice of meetings, to attend meetings
 in person or by proxy, or to vote on any matters submitted to any meeting.

**<u>Attendance by Officers and Directors of General Partner</u>**

7.13 Officers
 and directors of the General Partner shall have the right to attend in their capacity as
 such at any Partnership meeting and to address any such meeting on the matters properly before
 it.

**<u>Decisions In Writing</u>**

7.14 A
 resolution or material decision of the General Partner or the Limited Partners may be passed
 or made without a meeting if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) subject
 to Section 16.3, in the case of an Ordinary Resolution, the holders of more than 50% of the
 issued and outstanding Class B Units, the holders of more than 50% of the issued and outstanding
 Class C Units and the holders of more than 50% of the issued and outstanding Class E-2 Units
 entitled to vote consent to such resolution or decision in writing; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in
 the case of a Special Resolution, the holders of at least 75% of the issued and outstanding
 Class B Units, the holders of at least 75% of the issued and outstanding Class C Units and
 the holders of at least 75% of the issued and outstanding Class E-2 Units entitled to vote
 consent to such resolution or decision in writing.

**<u>Minutes and Records of Meetings</u>**

7.15 The
 General Partner shall be responsible for enacting all needed rules of order for conducting
 all meetings and shall keep, or cause to be kept, at the expense of the Partnership, an accurate
 record of all matters discussed and action taken at all meetings. Matters submitted for the
 approval of Limited Partners holding Units may be approved by written consent resolution
 without the holding of a meeting in accordance with the provisions of Section 7.14. The records
 of all such meetings and any written consent resolutions shall be maintained at the head
 office or principal place of business of the Partnership and shall be available for inspection
 by any Partner at all reasonable times.

7.16 The
 General Partner shall cause minutes of all proceedings at each meeting of Partners to be
 made and entered in books to be kept for that purpose and these minutes, if signed by the
 chairman of the meeting or by the chairman of the next succeeding meeting, shall be conclusive
 of the matters stated in them and the meeting shall be deemed to have been duly convened
 and held and all proceedings and resolutions shown in them shall be deemed to have been duly
 passed and taken. The Limited Partners shall only have the powers set forth in this Agreement
 and any additional powers provided by law. Subject to the foregoing sentence, any resolutions
 passed in accordance with this Agreement shall be binding on all the Partners and their respective
 heirs, executors, administrators, successors and assigns, whether or not any such Partner
 was present in person or voted against any resolution so passed.

**<u>Power to Execute</u>**

7.17 The
 General Partner may execute on its own behalf and as attorney for each Limited Partner and
 the Partnership, all documents reasonably necessary to give effect to any resolutions passed
 by the Partners in accordance with this Article.

**ARTICLE 8**

**RESIGNATION OR REMOVAL OF GENERAL PARTNER**

**<u>The General Partner to Continue to Act</u>**

8.1 Except
 as subsequently expressly provided herein and, in particular, subject to Section 8.3 herein,
 the General Partner shall not cease to be, and may not be removed as, the general partner
 of the Partnership.

**<u>Resignation of the General Partner</u>**

8.2 The
 General Partner may resign on 120 days' written notice to the Limited Partners.

**<u>Removal of the General Partner</u>**

8.3 One
 or more of the Limited Partners holding, collectively, in the aggregate not less than 75%
 of each class of the issued and outstanding Class B, C and E-2 Units then entitled to vote
 at a meeting of the Partnership, by a written resolution in one or more counterparts signed
 by such holders, shall be entitled to remove the General Partner and to substitute a new
 general partner therefor upon the happening of any of the following occurrences:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 making of an assignment for the benefit of creditors generally by the General Partner, or
 the dissolution of the General Partner; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) substantial
 default of the General Partner under the provisions of this Agreement, which default remains
 unremedied for a period in excess of 120 days from the date of receipt of notice to remedy
 such default from any of the Limited Partners,

provided, however, that the right to remove the General Partner as the general partner of the Partnership shall be conditional upon the Limited Partners appointing (as required below), concurrently with such removal, a new general partner to assume all of the responsibilities and obligations of the General Partner under the terms hereof and provided further that all amounts owing by the Partnership to the General Partner have been paid in full. Such appointment shall require consent of one or more Limited Partners holding, collectively, in the aggregate not less than 75% of each class of all issued and outstanding Class B, C and E-2 Units then entitled to vote at a meeting of the Partnership, by a written resolution in one or more counterparts signed by such holders.

8.4 The
 removal of the General Partner pursuant to the terms of this Agreement shall in no way cancel
 or otherwise affect any rights that the Partnership or any Limited Partner may have as against
 the General Partner arising out of any matter or thing done or omitted to be done by the
 General Partner under the terms of this Agreement.

**<u>Transfer of Management</u>**

8.5 Upon
 the admission of a new general partner to the Partnership, the outgoing General Partner will
 do all things and take all steps to transfer immediately and effectively the administration,
 management, control and operation of the business of the Partnership and the books, records
 and accounts of the Partnership to the new general partner and will execute and deliver all
 other deeds, certificates, declarations and other documents reasonably necessary or desirable
 to effect this transfer.

**<u>Transfer of Title, Etc.</u>**

8.6 Upon
 the resignation or removal of the General Partner and the admission of its successor as the
 general partner of the Partnership, the outgoing General Partner will transfer any legal
 title to the property and assets of the Partnership to the new general partner and will execute
 and deliver all deeds, certificates, declarations and other documents and will do all other
 things reasonably necessary or desirable to effect the transfer, and otherwise to effect
 fully and usefully the succession of the new general partner as general partner of the Partnership.

**<u>Successor General Partner</u>**

8.7 A
 successor general partner of the Partnership shall become a party to this Agreement by signing
 a counterpart and shall thereby agree to be bound by all of the provisions hereof and to
 assume the obligations, duties and liabilities of the General Partner hereunder as and from
 the date the successor becomes a party to this Agreement.

**<u>Continuity of the Partnership</u>**

8.8 If
 following the resignation or removal of the General Partner a new Person becomes the general
 partner of the Partnership, the Partnership shall not, by virtue of the resignation or removal,
 be considered to have terminated or dissolved, and the new general partner shall, for and
 on behalf of the Partnership, continue the business of the Partnership.

**<u>Indemnification of Former General Partner</u>**

8.9 Subject
 to Section 8.10, on the resignation or removal of the General Partner, the Partnership shall
 release and indemnify and hold harmless the General Partner and its directors, officers,
 agents, employees and representatives (each an **"Indemnified Person")** out
 of the assets of the Partnership from any loss, liability or damage incurred or suffered
 by such Indemnified Person as a result of or arising out of events which occur in relation
 to the Partnership after such resignation or removal, including legal fees incurred by such
 Indemnified Person in connection with the defense of any claim or action resulting or arising
 out of any such event, which legal fees shall be paid as incurred, except to the extent that
 indemnification is prohibited by law. Any indemnification required herein to be made by the
 Partnership will be made promptly following the fixing of the loss, liability or damage incurred
 or suffered by such Indemnified Person by a final judgment of any court, settlement, contract
 or otherwise.

8.10 An
 Indemnified Person:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) shall
 not be entitled to the indemnification provided for under Section 8.9 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) shall
 be liable to the Partnership for any loss, liability or damage suffered or incurred by the
 Partnership, directly or indirectly, in connection with any course of conduct,

if such loss, liability or damage arises out of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any
 criminal, fraudulent or dishonest act or wilful violation of any statute, rule or law on
 the part of the Indemnified Person; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) gross
 negligence on the part of the Indemnified Person, with gross negligence being defined for
 these purposes as a conscious, voluntary act or omission by such Person in reckless disregard
 of such Person's legal duties and of the consequences to the Partnership.

**ARTICLE 9**

**ACCOUNTS AND BANKING**

**<u>Maintenance of Accounts</u>**

9.1 The
 General Partner shall have responsibility for maintenance of the accounts of the Partnership
 in accordance with GAAP.

**<u>Capital and Current Accounts</u>**

9.2 The
 General Partner shall establish a separate Capital Account for each Partner on the books
 of the Partnership, to which such Partner's Capital Contributions shall be credited and amounts
 distributed as a return of capital shall be debited.

9.3 The
 General Partner shall establish a separate Current Account for each Partner on the books
 of the Partnership, to which such Partner's share of Partnership net income is to be credited
 and such Partner's share of Partnership net loss and amounts distributed other than as a
 return of capital shall be debited.

9.4 The
 interest of a Partner in the Partnership will not terminate solely by reason that there is
 a debit balance in one or more accounts maintained pursuant to this Article.

**<u>Bankers</u>**

9.5 The
 bankers of the Partnership shall be such bank or trust company as the General Partner may
 from time to time determine.

**ARTICLE 10**

**UNIT OWNERSHIP AND RESTRICTIONS ON TRANSFER**

**<u>Restrictions on Transfer</u>**

10.1 No
 Limited Partner shall Transfer any of the Units owned by it except to Persons and in the
 manner expressly permitted in this Agreement. Any attempted Transfer of Units made in violation
 of this Agreement shall be null and void. Neither the Board of Directors nor the Limited
 Partners shall approve or ratify any Transfer of Units made in contravention of this Agreement
 and the General Partner shall not permit any such Transfer to be recorded on the register
 of Limited Partners maintained by the General Partner for the Units.

**<u>Permitted Transferees</u>**

10.2 Subject
 to the provisions of this Article 10, each Limited Partner (a **"Transferor")** shall be entitled, upon prior written notice to the General Partner, to Transfer the
 whole of its Units to any Permitted Transferee of the Transferor. No such Transfer shall
 be or become effective until the Permitted Transferee executes and delivers to the General
 Partner a written acknowledgement to be bound by the terms and conditions of this Agreement
 in the form attached as Schedule 3.6 to this Agreement or such other form as may be acceptable
 to the General Partner. No such Transfer shall release or discharge the Transferor from any
 of its liabilities or obligations under this Agreement until it becomes effective and then
 only to the extent provided in this Agreement.

**<u>Encumbering Units</u>**

10.3 At
 any time and from time to time, but subject to the provisions of Sections 10.3 through 10.7,
 any Limited Partner (a **"Debtor")** may grant a Lien on all but not less than
 all of the Units held by it, directly or indirectly (the **"Pledged Units"),** to
 a Canadian or United States chartered bank, trust company or other similar recognized and
 reputable Canadian or United States financial institution (a **"Secured Party")** as security for any bona fide Debt of the Limited Partner.

10.4 As
 a condition precedent to any such transaction, the Secured Party shall first enter into an
 undertaking in favour of the parties hereto other than the Debtor pursuant to which the Secured
 Party shall acknowledge that (i) its interest in the Pledged Units is subject to this Agreement
 and the rights of the Limited Partners under this Agreement; (ii) until the happening of
 an event of default or a demand for repayment, the Pledged Units shall continue to be registered
 on the books of the Partnership in the name of the Debtor and the Debtor shall be entitled
 to exercise all of the rights in relation to the Pledged Units conferred under the Act, this
 Agreement or otherwise (including voting rights), and (iii) if the Secured Party commences
 enforcement proceedings with respect to the Pledged Units following default by the Debtor,
 it shall be bound by the provisions of this Agreement to the same extent and as fully as
 though the Secured Party were a signatory to it in respect of Sections 10.3 through 10.7
 and any Sale Transaction or Transfer.

10.5 If
 the Secured Party notifies the Debtor of its intention to commence enforcement proceedings
 with respect to the Pledged Units following a default by the Debtor or a demand for repayment
 of its Debt, the Secured Party shall contemporaneously with its notification to the Debtor
 deliver a copy of such notice to the General Partner. If, within a period of ten days following
 the date of delivery of such notice by the Secured Party, the Debtor has not satisfied its
 indebtedness and obligations owing to the Secured Party in full, the Debtor shall be deemed
 to be an Ineligible Limited Partner and the Secured Party shall be obliged to sell, and the
 Partnership, will be entitled to purchase the Pledged Units in accordance with the provisions
 of Article 12, *mutatis mutandis,* as if all references therein to the Ineligible Limited
 Partner were references to the Secured Party.

10.6 If
 the other Partnership elects not to purchase the Pledged Units pursuant to Article 12, the
 Secured Party shall be entitled to dispose of the Pledged Units to a third party if the party
 executes and delivers to the General Partner a written acknowledgement to be bound by the
 terms and conditions of this Agreement in the form of Schedule 3.6 to this Agreement or such
 other form as may be acceptable to the General Partner and otherwise complies with the provisions
 of Article 11.

10.7 Notwithstanding
 any disposition of the Pledged Units by the Secured Party to the Partnership or otherwise,
 the Debtor shall continue to be bound by any covenant given by it in or under this Agreement
 arising or occurring prior to the commencement of enforcement proceedings by the Secured
 Party.

**ARTICLE 11**

**TRANSFERS TO THIRD PARTIES**

**<u>Third Party Sale</u>**

11.1 If
 a Limited Partner (the **"Offeror")** wishes
 to sell all or any Units (the **"Purchased Units")** owned
 by it to a third party, including another Limited Partner, other than a Permitted Transferee
 (the **"Buyer"),** the
 Offeror shall first obtain the written consent from the General Partner, which consent may
 not be unreasonably withheld. For greater certainty, pursuant to the authority granted in
 Section 6.4, the General Partner may grant one or more transfer agents the authority to approve
 and register transfers of Units.

11.2 No
 disposition to a Buyer shall be valid or effective until the Buyer shall have executed a
 counterpart copy of this Agreement or a written acknowledgement to be bound by the terms
 and conditions of this Agreement in the form attached as Schedule 3.6 to this Agreement or
 such other form as may be acceptable to the General Partner.

11.3 Contemporaneously
 with the completion of the transaction of purchase and sale (a **"Sale Transaction"),** (i) the
 Offeror shall (y) repay any indebtedness owing by it to the Partnership, and (z) repay any
 indebtedness owing by it to the other Limited Partners under this Agreement, (ii) purchase
 any loans owed by the Partnership to the Offeror, and (iii) the Partnership shall repay in
 full any loans owed by the Partnership to the Offeror.

**<u>Piggy-back Rights</u>**

11.4 If
 an Offeror is entitled and proposes to sell its Purchased Units pursuant to Sections 11.1
 through 11.3, and if the sale of the Purchased Units would result in a change of Control
 of the Partnership, the Offeror shall, at least 30 days prior to the date specified for completion
 of the sale, give notice in writing (a **"Disposition Notice")** to the other Limited
 Partners (the **"Offerees").** 

11.5 Each
 Offeree shall have the right, exercisable within ten days after receipt of a Disposition
 Notice, upon notice in writing to the Offeror and the Buyer (the **"Piggy-Back Notice"),** to require the
 Buyer to purchase all but not less than all of the Units held by such Offeree, at the time
 of completion of, and upon the same terms and conditions as those contained in the agreement
 between the Buyer and Offeror for the Purchased Units (the **"Third Party Offer").** 

11.6 If
 any Offeree gives a Piggy-Back Notice to the Offeror and the Buyer within such period, then
 the Offeror shall be entitled to sell the Purchased Units to the Buyer pursuant to the Third
 Party Offer only if such Buyer also offers to purchase from the Offeree all of the Units
 held by the Offeree, conditional upon the completion of the transaction of purchase and sale
 contemplated in the Third Party Offer.

11.7 The
 Limited Partners who have accepted or been deemed to have accepted an offer under Section
 11.6 shall be the **"Vendor".** 

**<u>Carry-Along Requirement</u>**

11.8 If
 any of the Limited Partners receive a *bona fide* offer (a **"Take-Over Bid")** from a third party (the **"Bidder")** dealing at arms-length with them which
 they wish to accept and if the Take-Over Bid contains a provision to the effect that the
 Bidder will complete the sale contemplated by the Take-Over Bid only if the Bidder acquires
 all of the issued and outstanding Units, the recipient Limited Partner (the **"Bid Recipient")** will immediately advise the other Limited Partners of the Take-Over
 Bid. If Limited Partners holding not less than 75% of the Units (exclusive of Class D Units)
 wish to accept the Take-Over Bid, such Limited Partners shall have the right to require the
 other Limited Partners on ten days' notice in writing (a **"Compulsory Sale Notice")** to sell all of the Units held by them to the third party pursuant to the terms of the
 Take-Over Bid.

11.9 If
 the Limited Partners give a Compulsory Sale Notice to the other Limited Partners, then each
 of them shall be obligated to sell all of the Units held by it, upon the terms specified
 in the Take-Over Bid to the Bidder, conditional upon the completion of the transaction of
 purchase and sale contemplated in the Take-Over Bid.

11.10 Each
 Limited Partner acknowledges that in the event that it receives a Compulsory Sale Notice
 and it fails to execute or cause to be executed all such agreements and documents as may
 be necessary under the Act, this Agreement, or otherwise to enable the Units held by it,
 to be sold to the Bidder as provided in Sections 11.8 and 11.9, the Bid Recipient and the
 other Limited Partners who have sent the Compulsory Sale Notice may, and each Limited Partner
 irrevocably constitutes and appoints any other Limited Partner who complies with Sections
 11.8 and 11.9 as the true and lawful attorney for such Limited Partner with full power of
 substitution in the name of and on behalf of such Limited Partner, with no restriction or
 limitation in that regard and declaring that such power of attorney may be exercised during
 any subsequent legal incapacity on its part, to execute and deliver all such agreements and
 documents as may be necessary to permit the sale of such Units to the Bidder to be completed
 as provided in this Agreement and reflected on the books of the Partnership. This power of
 attorney shall not be revoked or terminated by any act or thing unless this Agreement is
 terminated or unless such Limited Partner ceases to be bound by the provisions of this Agreement.

**ARTICLE 12**

**INELIGIBLE LIMITED PARTNERS**

**<u>Ineligible Limited Partners</u>**

12.1 A
 Limited Partner shall be deemed to be an **"Ineligible Limited Partner"** immediately
 following the occurrence of any of the following events (each a **"Triggering Event"):** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Upon
 the expiry of the time period referred to in Section 10.5 in the event a Secured Party commences
 enforcement proceedings with respect to the Pledged Units and its Debt is not repaid within
 such time period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If
 the Limited Partner is declared bankrupt or makes a proposal in bankruptcy or becomes the
 subject of bankruptcy or other similar proceedings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If
 the Limited Partner makes an assignment for the benefit of creditors or otherwise acknowledges
 its insolvency; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If
 the Limited Partner either (i) effects a Transfer of its Units or any of them other than
 in accordance with the provisions of this Agreement or (ii) fails to observe, perform or
 carry out any of its obligations under this Agreement and such failure continues for ten
 Business Days after the General Partner has delivered a written demand to the defaulting
 Limited Partner that such failure be cured.

12.2 Each
 Limited Partner shall give notice in writing to the General Partner promptly following the
 occurrence of a Triggering Event.

12.3 From
 and after the date that a Limited Partner becomes an Ineligible Limited Partner, the votes
 of such Limited Partner shall be excluded for purposes of determining whether a decision,
 action or matter has been approved whether by Ordinary Resolution, Special Resolution or
 otherwise.

**<u>Irrevocable Option to Purchase Units of Ineligible Limited Partner</u>**

12.4 Each
 Limited Partner grants to the Partnership an irrevocable option (which option shall not be
 revoked by the death of the Limited Partner) (the **"Purchase Option"),** exercisable
 in the event that it becomes an Ineligible Limited Partner, to repurchase for cancellation
 all but not less than all of the Units held by it (the **"Purchased Units").** 

12.5 The
 Purchase Option shall be exercisable by the Partnership at any time within 90 days following
 receipt of notice of the Triggering Event (the **"Exercise Period")** upon notice
 in writing (the **"Exercise Notice")** to the Ineligible Limited Partner.

**<u>Purchase Price for Units</u>**

12.6 The
 purchase price (the **"Purchase Price")** for the Purchased Units of the Ineligible
 Limited Partner (the **"Vendor")** shall be the product obtained by multiplying
 the number of Purchased Units and the Fair Market Value of the Units determined in accordance
 with the provisions of Article 14.

**<u>CLOSING</u>**

12.7 The
 closing of a transaction of purchase and sale contemplated by this Article 12 (a **"Sale Transaction")** shall take place at the Place of Closing at the Time of Closing on
 the date (the **"Date of Closing")** which shall, unless the Vendor and Purchaser
 otherwise agree, be the latest of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 date of which is 90 days after the relevant Triggering Event, subject to Section 12.8;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 date which is seven days following the receipt of all necessary governmental releases or
 approvals required to be obtained in order to effect a valid transfer of the Purchased Units
 (and the Ineligible Limited Partner covenants and agrees to use its best efforts to obtain
 such consents, releases or approvals); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 date which is 30 days after the Purchase Price is finally determined in accordance with the
 provisions of Article 14.

12.8 The
 Sale Transaction shall be effected in accordance with the general sale provisions of Article
 13, provided that in the event that the Board of Directors determines by resolution of the
 Board that the Partnership does not have sufficient cash on hand to pay the full Purchase
 Price in cash on the Date of Closing of any Sale Transaction under this Article 12, the Partnership
 shall be permitted to pay the Purchase Price in monthly instalments over such period of time
 (not exceeding three years after the Date of Closing) as the Board of Directors may approve
 in such resolution, in which event the first instalment shall be paid in cash on the Date
 of Closing and the balance of the Purchase Price shall be evidenced by a promissory note
 delivered by the Partnership on the Date of Closing and setting out the payment schedule
 for such balance of the Purchase Price. Any unpaid portion of the Purchase Price remaining
 outstanding under such promissory note shall not bear interest.

**<u>No Sale</u>**

12.9 Notwithstanding
 the foregoing provisions of this Article 12, the Partnership shall not complete any Sale
 Transaction contemplated by this Article 12 if, at the Time of Closing, the purchase of the
 Purchased Units by the Partnership is prohibited by the Act or otherwise by Law.

**ARTICLE 13**

**PROCEDURE FOR SALE OF UNITS**

**<u>Application of Sale Provisions</u>**

13.1 Except
 as may otherwise be expressly provided in this Agreement, the provisions of this Article
 shall apply to any sale of Units between or among Limited Partners, any sale of Units by
 a Limited Partner to a third party pursuant to Article 11 or, to the extent applicable, between
 Limited Partners and the Partnership pursuant to the provisions of this Agreement.

13.2 For
 the purpose of this Article, the terms **"Vendor", "Purchaser", "Date of Closing", "Time of Closing", "Purchase Price"** and **"Purchased Units"** with respect to any Sale Transaction shall have the meanings specified in
 Section 1.1, Articles 11, 12 and 13, if applicable and as the case may be.

**<u>Obligations of Vendor</u>**

13.3 At
 or prior to the Time of Closing, the Vendor shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) assign
 and transfer to the Purchaser the Purchased Units and deliver the certificate(s) representing
 the Purchased Units duly endorsed for transfer to the Purchaser or as directed by it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) do
 all other things required in order to deliver good and marketable title to the Purchased
 Units to the Purchaser free and clear of any Liens whatsoever;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) deliver
 to the General Partner and the Purchaser all necessary documents (which documents shall be
 in form and substance reasonably satisfactory to the solicitors for the Purchaser) required
 to transfer to the Purchaser the indebtedness of the Partnership and the other Limited Partner
 to the Vendor or to otherwise comply fully with the intent of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) deliver
 to the Partnership and the General Partner releases by the Vendor of all claims against the
 Partnership, the General Partner, any company or limited partnership directly or indirectly
 owned by the Partnership, and their respective successors and assigns and the directors,
 officers and employees of the General Partner and any such directly or indirectly held company
 or limited partnership, with respect to any matter or thing up to and including the Time
 of Closing, except for any claims which might arise out of the Sale Transaction, in the form
 of **Schedule 13.3(d);** and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) if
 a withholding would be required under the Tax Act, either provide the Purchaser with evidence
 reasonably satisfactory to the Purchaser that the Vendor is not then a non-resident of Canada
 within the meaning of the Tax Act or provide the Purchaser with a certificate pursuant to
 subsection 116(2) of the Tax Act with a certificate limit in an amount not less than the
 Purchase Price for the Purchased Units.

**<u>Release of Guarantees</u>**

13.4 If,
 at the Time of Closing, the Vendor, or any other Person for and on behalf of the Vendor,
 shall have any guarantees, securities or covenants lodged with any Person to secure any indebtedness,
 liability or obligation of the Partnership, then the General Partner shall use its best efforts
 to deliver up or cause to be delivered up to the Vendor or cancel or cause to be cancelled
 all of such guarantees, securities and covenants at the Time of Closing. If, notwithstanding
 such best efforts, the delivery up or cancellation of any such guarantee, security or covenant
 is not obtained, the General Partner shall deliver on behalf of the Partnership to the Vendor,
 and such other Person an indemnity in writing, in form reasonably satisfactory to counsel
 for the Vendor, indemnifying them against any and all claims, losses, costs or damages which
 may be or which shall have been paid, suffered or incurred by them with respect to the guarantee,
 security or covenant.

**<u>Deliveries to the Vendor</u>**

13.5 At
 or prior to the Time of Closing, the General Partner shall deliver on behalf of the Partnership
 and on its own behalf to the Vendor a release by the Partnership and the General Partner
 of all of their respective claims against the Vendor, the Vendor's successors and assigns
 and, if the Vendor is not an individual, the Vendor's directors, officers and employees,
 with respect to any matter or thing arising as a result of the Vendor being a Limited Partner,
 except for any claims which might arise out of the Sale Transaction, in the form of **Schedule 13.5.** 

**<u>Repayment of Debts</u>**

13.6 If,
 at the Time of Closing, the Partnership is indebted to the Vendor in an amount recorded on
 the books of the Partnership and verified by the Accountant, the Partnership shall repay
 such amount to the Vendor at the Time of Closing. If, at the Time of Closing, the Vendor
 is indebted to the Partnership in an amount recorded on the books of the Partnership and
 verified by the Accountant, the Vendor shall repay such amount to the Partnership at the
 Time of Closing and, if the Vendor fails to make such repayment, the Purchaser shall be required
 to pay the amount of such indebtedness to the Partnership from the Purchase Price and the
 amount of the Purchase Price payable to the Vendor shall be reduced accordingly.

**<u>Payment of Purchase Price</u>**

13.7 Unless
 otherwise agreed in the Sales Transaction and permitted by this Agreement, the Purchase Price
 (less an amount withheld equal to the face amount of any indebtedness of the Vendor to the
 Partnership or the other Limited Partners) shall be paid by the Purchaser in full by cash
 or bank draft at the Time of Closing.

**<u>Non-Compliance with Conditions</u>**

13.8 If
 at the Time of Closing (i) the Purchased Units are not free and clear of all Liens, or (ii)
 evidence or a certificate referred to in paragraph 13.3(e) is not provided, the Purchaser
 may, without prejudice to any other rights which it may have, purchase the Purchased Units
 subject to such Liens or in the absence of such evidence or certificate, and, in that event,
 the Purchaser shall, at the Time of Closing, (iii) assume all obligations and liabilities
 with respect to such Liens, and (iv) make the payment of tax required under Section 116 of
 the Tax Act, as the case may be; and in each such case the Purchase Price payable by the
 Purchaser for the Purchased Units shall be satisfied, in whole or in part, as the case may
 be, by such assumption or payment and the amount so assumed or paid shall be deducted from
 the Purchase Price payable at the Time of Closing.

**<u>Non-Completion by Vendor</u>**

13.9 If,
 at the Time of Closing, the Vendor fails to complete the Sale Transaction, the Purchaser
 shall have the right, if not in default under this Agreement, without prejudice to any other
 rights which it may have, make payment of the Purchase Price payable to the Vendor at the
 Time of Closing by depositing such amount to the credit of the Vendor in the main branch
 of the banker at which the General Partner maintains an account or accounts for the Partnership.
 Such deposit shall constitute valid and effective payment of such amount to the Vendor irrespective
 of any action the Vendor may have taken to transfer or grant of Lien on the Purchased Units.
 If the Purchase Price has been so paid, then from and after the date of deposit, the Sales
 Transaction shall be deemed to have been full completed and all right, title, benefit and
 interest, both at law and in equity and to the Purchased Units shall conclusively be deemed
 to have been transferred to and become vested in the Purchaser and all right, title, benefit
 and interest, both at law and in equity, in and to the Purchased Units of the Vendor or of
 any transferee or assignee of the Vendor shall cease and determine. The Purchaser shall also
 have the right to execute and deliver, on behalf of and in the name of the Vendor, such deeds,
 transfers, unit certificates, resignations and other documents that may be necessary to complete
 the Sale Transaction and each Limited Partner, to the extent it may be a Vendor irrevocably
 appoints any Limited Partner who becomes a Purchaser in a Sale Transaction its attorney in
 that behalf, with no restriction or limitation in that regard and declaring that this power
 of attorney may be exercised during any subsequent legal incapacity on its part.

13.10 The
 Vendor shall be entitled to receive the amount deposited with the banker for the Partnership
 pursuant to Section 13.9 together with the releases and indemnities to which it may be entitled
 pursuant to Sections 13.4 and 13.5 on delivery to the Purchaser of the documents referred
 to in Section 13.3 and in compliance with all other provisions of this Agreement.

**<u>Non-Completion by Purchaser</u>**

13.11 In
 addition to and without limiting any remedy that may be available at law or in equity to
 the Vendor, in the event that a Person who is obligated to purchase Units in accordance with
 this Agreement defaults in the performance of its obligation to complete such purchase, the
 Vendor may, at its option, by notice in writing to the defaulting person, terminate all its
 obligations relating to such purchase and, upon the giving of such notice in accordance with
 the provisions of this Section 13.11, such obligations shall be terminated without prejudice
 to the continued effectiveness of this Agreement.

13.12 If,
 at the Time of Closing, the Purchaser fails to complete a Sale Transaction, the Vendor (the **"New Purchaser")** shall have the right (without prejudice to any other rights
 which it may have), at its option, exercisable within a period of 30 days following the Date
 of Closing of such Sale Transaction upon notice to the Purchaser (the **"New Vendor"),** to purchase from the New Vendor all the Units owned by the New Vendor for an amount per
 Unit equal to 75% of the Purchase Price per Unit payable pursuant to the Sale Transaction
 which the New Vendor has neglected or refused to perform, less all costs incurred by the
 New Purchaser in connection with the failure by the New Vendor to complete the Sale Transaction,
 and all references in the foregoing Sections of this Article to the **"Vendor"** and the **"Purchaser"** respectively shall be deemed to be references to
 the New Vendor and the New Purchaser respectively.

**<u>No Joint Liability</u>**

13.13 For
 greater certainty, the parties hereto acknowledge and agree that where a Sale Transaction
 involves more than one Purchaser, the Purchasers in such Sale Transaction are not jointly
 liable for the payment of the Purchase Price for the Purchased Units and any indebtedness
 purchased, but are only liable for their proportionate share.

**<u>Consents</u>**

13.14 The
 parties hereto acknowledge that the completion of any Sale Transaction shall be subject,
 in any event, to the receipt of all necessary governmental and regulatory consents and approvals
 to the transfer of Units contemplated thereby.

**ARTICLE 14**

**FAIR MARKET VALUE**

**<u>Purchase Price for Units</u>**

14.1 The
 provisions of this Article 14 shall apply with respect to any determination of Fair Market
 Value required to be made pursuant to this Agreement.

**<u>Meaning of Fair Market Value</u>**

14.2 For
 purposes of this Agreement, **"Fair Market Value"** means the price per Unit,
 determined by the Valuator pursuant to this Article as of the relevant Valuation Date in
 respect of any Sale Transaction in two steps:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) first,
 the Valuator shall determine the price per Unit that would be received upon a sale of all
 of the issued and outstanding Units in a single transaction determined in an open and unrestricted
 market between prudent parties, acting at arm's length and under no compulsion to act, and
 having reasonable knowledge of all relevant facts concerning the Partnership; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) second,
 the Valuator shall take into account the number of Units held by the Vendor in such Sale
 Transaction relative to the total number of Units issued and outstanding at that time only
 if such Sale Transaction relates to the sale of Control and shall apply to the price per
 Unit determined pursuant to paragraph (a) a reasonable premium for Control, but shall not
 apply a minority discount to a Sale Transaction relating to the sale of a minority position,
 and in each case the resulting price per Unit shall be the Fair Market Value for the purposes
 of the Sale Transaction.

In determining the Fair Market Value of the Units, such Valuator shall be considered as an expert and shall not be construed as acting as an arbitrator within the meaning of the *Arbitration Act* (British Columbia).

14.3 The
 determination of the Fair Market Value of the Units shall be made as if the Partnership were
 a **"going concern"** (except to the extent that market, financial, economic,
 business or other conditions shall dictate different criteria in the reasonable judgment
 of the Valuator). The value of the Units shall not be diminished because the Units are not
 publicly traded. The proceeds of life insurance, if any, which are payable to the Partnership
 because of the death of a deceased Vendor shall not be taken into account in making such
 valuation.

**<u>Estimate of Fair Market Value</u>**

14.4 Immediately
 following the delivery of an Exercise Notice under Section 12.5, the General Partner shall
 instruct the Valuator to prepare and deliver to the Vendor and Purchaser, within a period
 of 30 days from the date of receipt of such instructions, a report setting forth the Valuator's
 estimate as to the Fair Market Value of the Units and the basis upon which such estimate
 has been calculated (the **"Valuator's Report").** 

14.5 If
 the estimate of the Fair Market Value of the Units set forth in the Valuator's Report is
 acceptable to the Vendor and Purchaser which approval will be deemed to have been given if
 no notice of objection is received by the General Partner within a period of ten days following
 the delivery of the Valuator's Report to them, it shall become the Fair Market Value of the
 Units for purposes of the Sale Transaction to which it relates.

14.6 In
 any Sale Transaction, the costs and expenses of the Valuator incurred in connection with
 preparation of the Valuator's Report shall be paid by the Vendor in such Sale Transaction,
 except if the General Partner decides (at its sole discretion) that such costs and expenses
 of the Valuator shall be paid by the Partnership.

**ARTICLE 15**

**DISSOLUTION AND WINDING-UP**

**<u>No Dissolution of Partnership</u>**

15.1 The
 Partnership shall not be dissolved by the admission of a new general partner or new Limited
 Partner, by the withdrawal, death, insolvency, bankruptcy or other disability or incapacity
 of the General Partner or any Limited Partner or by the giving by any Partner of a notice
 purporting to dissolve the Partnership. To the fullest extent permitted by law, each Partner
 hereby irrevocably waives any right it may have to give any notice dissolving or otherwise
 determining the Partnership and agrees that it shall not apply to any court seeking to dissolve
 or otherwise wind up the affairs of the Partnership.

**<u>Dissolution of Partnership</u>**

15.2 The
 Partnership shall be dissolved at any time upon either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all
 of (i) the written consent of the General Partner; (ii) the written consent of or resolution
 passed by the holders of more than 75% of the then outstanding Class B Units; (iii) the written
 consent of or resolution passed by the holders of more than 75% of the then outstanding Class
 C Units; and (iv) the written consent of or resolution passed by the holders of more than
 75% of the then outstanding Class E-2 Units; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) upon
 the written consent of all Limited Partners; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) earlier
 upon the occurrence of any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any
 event which makes it unlawful for the Business to be continued;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 bankruptcy, insolvency, liquidation, dissolution or winding up of the General Partner or
 the occurrence of any other event which would permit a trustee or receiver to administer
 the affairs of the General Partner, provided that such trustee or receiver has continued
 in office for a period of 120 consecutive days, unless a new general partner is appointed
 within 60 days after the occurrence of such bankruptcy, insolvency, liquidation, dissolution,
 winding up or other event; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the
 disposition of all the assets of the Partnership.

15.3 The
 General Partner shall serve as the receiver of the Partnership charged with the responsibility
 of liquidating the Partnership upon its dissolution. If the General Partner is unable or
 unwilling to act in such capacity, the Limited Partners may by resolution appoint some other
 appropriate person or party to act as the receiver of the Partnership.

**<u>Operation After Dissolution of Partnership</u>**

15.4 Upon
 the dissolution of the Partnership pursuant to Section 15.2, and, notwithstanding the dissolution,
 the Business shall continue to be operated pursuant to this Agreement so far as may be necessary
 to wind up the affairs of the Partnership and to complete transactions begun but unfinished
 at the time of dissolution, but not otherwise, and any authority which, pursuant to this
 Agreement, a Partner may have to bind the Partnership shall continue (except in the case
 of a Partner who is bankrupt or insolvent) and the other rights and obligations of the Partners
 under this Agreement shall continue, notwithstanding the dissolution, for such limited purposes.

**<u>Winding-Up of Partnership</u>**

15.5 Upon
 dissolution of the Partnership pursuant to Section 15.2, the General Partner or any trustee
 or liquidator or similar Person charged with the responsibility for the orderly winding-up
 of the affairs of the Partnership shall proceed, as expeditiously as is reasonable in the
 circumstances, to wind up the affairs of the Partnership by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) selling
 all the property of the Partnership on the best terms obtainable; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) applying
 the proceeds of such sales, together with any cash on hand and sums, if any, contributed
 by the Partners to make up losses or deficiencies of capital, in the following manner and
 order:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) first,
 in paying the debts and liabilities of the Partnership to Persons who are not Partners;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) second,
 in placing in escrow a cash reserve fund for contingent liabilities in the amount reasonably
 determined by the receiver to be appropriate for such reserve fund (with such fund to be
 held for such period as the receiver regards as reasonable and then to be distributed pursuant
 to the following paragraphs of this Section 15.5);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) third,
 in paying to each Partner ratably what is due to such Partner from the Partnership for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) advances
 or amounts otherwise owed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any
 balance in such Partner's Current Account;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) fourth,
 in distributing to each Limited Partner holding Class D Units ratably what is due to it under
 paragraph 4.8(a);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) fifth,
 in distributing to each Limited Partner holding Class E-2 Units ratably what is due to it
 under paragraph 4.8(b);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) sixth,
 in distributing to each Limited Partner holding Class E-2 Units ratably what is due to it
 under paragraph 4.8(c);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) seventh,
 (x) as to the E-2 Participation Percentage, to the holders of Class E-2 Units on a pro rata
 basis based on Capital Contributions, and (y) as to the remaining percentage, distributed
 as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) to
 each Limited Partner holding Class C Units ratably what is due to it under paragraph 4.8(d)
 (i);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) next,
 to each Limited Partner holding Class C2 Units ratably what is due to it under paragraph
 4.8(d)(ii);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) next,
 to each Limited Partner holding Class B Units ratably what is due to it under paragraphs
 4.8(d)(iii) and 4.8(d)(iv);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) next,
 to each Limited Partner holding Class A Units ratably what is due to it from the Partnership
 in respect of repayment of each Partner's Capital Contribution in respect of the Class A
 Units;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) next,
 to the General Partner what is due to it from the Partnership in respect of repayment of
 the General Partner's Capital Contribution; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) thereafter,
 to each Limited Partner holding Class D Units, Class C Units, Class B Units and Class A Units
 ratably what is due to it under paragraph 4.8(d)(v).

15.6 The
 General Partner or other Person charged with the responsibility of dissolution of the Partnership
 shall execute and record any notices and comply with any formalities as any be prescribed
 under the Act or the laws of any jurisdictions where the Partnership is registered.

**<u>Termination not to Affect Rights or Obligations</u>**

15.7 The
 termination of this Agreement shall not affect or prejudice any rights or obligations which
 have accrued or arisen under this Agreement prior to the time of termination and such rights
 and obligations shall survive the termination of this Agreement.

**ARTICLE 16**

**AMENDMENTS**

**<u>General Partner May Make Amendments</u>**

16.1 The
 General Partner may at any time amend any provision of this Agreement if such amendment is
 to cure an ambiguity or to correct or supplement any provision which may be defective or
 inconsistent and the cure, correction or supplemental provision does not and will not adversely
 affect the interests of the Limited Partners. All other amendments shall be made in accordance
 with Section 16.2.

**<u>Amendments Requiring Approval of Limited Partners</u>**

16.2 Any
 amendments not falling within Section 16.1 require the approval of (i) the General Partner,
 (ii) holders of more than 50% of the then outstanding Class B Units, in writing or by Ordinary
 Resolution passed at a meeting of holders of Class B Units, voting separately as a class,
 (iii) holders of more than 50% of the then outstanding Class C Units, in writing or by Ordinary
 Resolution passed at a meeting of holders of Class C Units, voting separately as a class,
 and (iv) holders of more than 50% of the then outstanding Class E-2 Units, in writing or
 by Ordinary Resolution passed at a meeting of holders of Class E-2 Units, voting separately
 as a class, provided that except as expressly set out in this Agreement, no amendment shall
 be made which shall have the effect of reducing the Limited Partners' interest in the Partnership,
 changing the liability of any Limited Partner, allowing any Limited Partner to exercise control
 of the Business or changing the Partnership from a limited partnership to a general partnership.

16.3 Notwithstanding
 any other provision contained in this Agreement, any amendment to this Agreement which would
 have the effect of altering the capital distribution provisions set out in Section 4.8, except
 as such amendment corresponds to the creation of class in which the holders of Class D Units
 are entitled to exercise their right of first refusal pursuant to section 4.13, shall, in
 addition to requiring the approval of the holders of Class B Units, Class Units and Class
 E-2 Units pursuant to section 16.2, also require the approval of the holders of more than
 50% of the then issued and outstanding Class D Units, in writing or by Ordinary Resolution
 passed at a meeting of holders of Class D Units.

**ARTICLE 17<br> ARBITRATION**

**<u>Best Endeavours to Settle Disputes</u>**

17.1 If
 any controversy, dispute, claim, question or difference (a **"Dispute")** arises
 with respect to this Agreement or its performance, enforcement, breach, termination or validity,
 the parties hereto shall use their best efforts to settle the Dispute. To this end, they
 shall consult and negotiate with each other, in good faith and understanding of their mutual
 interests, to reach a just and equitable solution satisfactory to all parties.

**<u>Arbitration</u>**

17.2 If
 the parties hereto do not reach a solution pursuant to Section 17.1 within a period of 30
 days following the first notice of the Dispute by any party to the others, then upon written
 notice by any party to the others, the Dispute shall be finally settled by arbitration in
 accordance with the provisions of the *Arbitration Act* (British Columbia) by a single
 arbitrator appointed by mutual agreement of the parties, or in the event of failure to agree
 within ten Business Days following delivery of the written notice to arbitrate, any party
 hereto may apply to a judge of the Supreme Court of British Columbia to appoint an arbitrator.
 The arbitrator shall be qualified by education and training to pass upon the particular matter
 to be decided. The arbitrator shall be instructed that time is of the essence in the arbitration
 proceeding and, in any event, the arbitration award must be made within 30 days of the submission
 of the Dispute to arbitration. The arbitration shall take place in Vancouver, British Columbia.
 The arbitration award shall be given in writing and shall be final and binding on the parties
 hereto, not subject to any appeal, and shall deal with the question of costs of arbitration
 and all related matters. Judgment upon any award may be entered in any Court having jurisdiction
 or application may be made to the Court for a judicial recognition of the award or an order
 of enforcement, as the case may be. All Disputes referred to arbitration (including the scope
 of the agreement to arbitrate, any statute of limitations, set-off claims, conflict of laws
 rules, tort claims and interest claims) shall be governed by the substantive law of the Province
 of British Columbia. The Parties agree that the arbitration shall be kept confidential and
 that the existence of the proceeding and any element of it (including any pleadings, briefs
 or other documents submitted or exchanged, any testimony or other oral submissions and any
 awards) shall not be disclosed beyond the arbitrator, the Parties, their counsel and any
 person necessary to the conduct of the proceeding, except as may lawfully be required in
 judicial proceedings relating to the arbitration or otherwise.

**ARTICLE 18**

**GENERAL PROVISIONS**

**<u>Notices</u>**

**18.1** Any
 notice or other communication required or permitted to be given hereunder shall be in writing
 and shall be given by prepaid first-class mail, by facsimile, by electronic mail or other
 means of electronic communication or by delivery as hereafter provided. Notices and other
 communications shall be addressed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if
 to the General Partner, at the General Partner's address listed on page 1 of this Agreement;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if
 to any Limited Partner, at such Limited Partner's address listed on the Register;

or as each Partner may otherwise notify the other Partners in writing. Any such notice or other communication, if mailed by prepaid first-class mail at any time other than during a general discontinuance of postal service due to strike, lock-out or otherwise, shall be deemed to have been received on the fourth Business Day after the postmarked date thereof, or if sent by facsimile, electronic mail or other means of electronic communication, shall be deemed to have been received on the day it was sent (provided that if it was sent on a day which is not a Business Day, then it shall be deemed delivered on the Business Day following the sending), or if delivered by hand shall be deemed to have been received at the time it is delivered to the applicable address if such date is a Business Day and such delivery was made before 4:00 p.m. (Vancouver time) and otherwise on the next Business Day. Notice of change of address shall also be governed by this Section. In the event of a general discontinuance of postal service due to strike, lock-out or otherwise, notices or other communications shall be delivered by hand or sent by facsimile or other means of electronic communication and shall be deemed to have been received in accordance with this Section.

**<u>Limited Partner is not a General Partner</u>**

18.2 If
 any provision of this Agreement has the effect of imposing upon any Limited Partner any of
 the liabilities or obligations of a general partner, the provision will be of no force and
 effect but the remainder of this Agreement will continue in effect.

**<u>Time of Essence</u>**

18.3 Time
 is of the essence of this Agreement.

**<u>Further Assurances</u>**

18.4 Each
 of the Partners shall use reasonable efforts to take all such steps, execute all such documents
 and do all such acts and things as may be reasonably within its power to implement to their
 full extent the provisions of this Agreement and to cause the Partnership to act in the manner
 contemplated by this Agreement.

**<u>Counterparts</u>**

18.5 This
 Agreement may be executed in as many counterparts as may be necessary, each of such counterparts
 so executed will be deemed to be an original and such counterparts together will constitute
 one and the same instrument and notwithstanding the date of execution will be deemed to bear
 the date as of the day and year first above written.

**Enumerment**

18.6 This
 Agreement shall enure to the benefit of and be binding upon the Partners and their respective
 successors.

*[The remainder of this page is intentionally blank. Signature page follows.]*

**IN WITNESS WHEREOF** the Partners hereto have duly executed this Agreement.

*General Partner:*

**RED MOUNTAIN VENTURES G.P. LTD.**

---

| | |
|:---|:---|
| **Per:** | /s/ Howard Katkov |
|  | Authorized Signatory |

---

*Limited Partners:*

---

| | |
|:---|:---|
| Each person who from time to time becomes a Limited Partner of **RED MOUNTAIN VENTURES LIMITED PARTNERSHIP**, by his, her or its agent and attorney, **RED MOUNTAIN VENTURES G.P. LTD.** | Each person who from time to time becomes a Limited Partner of **RED MOUNTAIN VENTURES LIMITED PARTNERSHIP**, by his, her or its agent and attorney, **RED MOUNTAIN VENTURES G.P. LTD.** |
| **Per:** | /s/ Howard Katkov |
|  | Authorized Signatory |

---

Schedule 3.6

**Form of Acknowledgement to be Bound by Agreement**

---

| | |
|:---|:---|
| Re: | Amended and Restated Limited Partnership Agreement of Red Mountain Ventures Limited Partnership (the "Partnership") dated as of July ___, 2024, among Red Mountain Ventures G.P. Ltd., as General Partner, and the Limited Partners, as may be further amended and/or restated (the "Partnership Agreement") |

---

Capitalized terms referred to but not defined in this Acknowledgment shall have the meanings specified in the Partnership Agreement.

In consideration of the acceptance of the undersigned as a Limited Partner in the Partnership, the undersigned hereby represents and warrants that the representations and warranties set out in Section 5.2 of the Partnership Agreement are true and correct as of the date hereof, and agrees in favour of the parties to the Partnership Agreement to be bound by each and every provision of the Partnership Agreement, to the same extent as each original Limited Partner, including without limitation the Power of Attorney in Section 6.12 of the Partnership Agreement.

Dated this ________ day of ________________, 20__.

Address: _______________________________________________________

Fax No.: _______________________________________________________

If the proposed new Limited Partner is a corporation, partnership, trust or other non-individual:

---

| | |
|:---|:---|
| Name: |  |
| By: |  |
|  | Authorized Signatory |
|  | Name: |
|  | Title: |

---

If the proposed new Limited Partner is an individual:

· - 64 -

Schedule 13.3(d)

**Form of Release by Vendor in favour of Partnership, General Partner and Subsidiaries**

**<u>RELEASE</u>**

---

| | |
|:---|:---|
| TO: | Red Mountain Ventures Limited Partnership (the **"Partnership")** |

---

---

| | |
|:---|:---|
| AND TO: | Red Mountain Ventures G.P. Ltd. (the **"General Partner")** |

---

---

| | |
|:---|:---|
| AND TO: | The companies and limited partnerships directly and indirectly owned by the Partnership (the **"Subsidiaries"),** namely · |

---

---

| | |
|:---|:---|
| FROM: | · (the **"Vendor")** |

---

---

| | |
|:---|:---|
| RE: | Amended and Restated Limited Partnership Agreement dated as of July__, 2024, between the Limited Partners and the General Partner, as it may be amended and/or restated from time to time (the **"Partnership Agreement")** |

---

Capitalized terms and phrases used herein and not expressly defined herein shall have the same meanings herein as are ascribed to such terms and phrases in the Partnership Agreement.

WHEREAS:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. until the date of this Release, the Vendor has been a Limited Partner of the Partnership and the Vendor is disposing of such Vendor's Purchased Units on the date of this Release; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. this Release is delivered pursuant to paragraph 13.3(d) of the Partnership Agreement;

KNOW ALL MEN BY THESE PRESENTS that in consideration of the premises and for other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged), the Vendor DOES HEREBY RELEASE, REMISE AND FOREVER DISCHARGE each of the Partnership, the General Partner, the Subsidiaries and their respective successors and assigns as well as the directors, officers and employees of (a) the General Partner, and (b) each Subsidiary, respectively (the Partnership and all such other parties herein collectively called the **"Members of the Released Group")** of and from any and all claims, demands, suits, proceedings, covenants, liabilities, and obligations of whatsoever kind and howsoever arising which any of them now has or which they may hereafter have by reason of any act or omission arising out of, or which might have arisen out of or in the course of the actions of any Member of the Released Group prior to closing of the disposition by the Vendor of Purchased Units.

Dated at _______________________, this_____ day of ________________________ 20__ **[insert Date of Closing].**

If the Vendor is a corporation:

---

| | |
|:---|:---|
| · | · |
| By: |  |
|  | Authorized Signatory |
|  | Name: |
|  | Title: |

---

If the Vendor is an individual:

· [name of Vendor]

Schedule 13.5

**Form of Release by Partnership, General Partner and Subsidiaries in favour of Vendor**

**<u>RELEASE</u>**

---

| | |
|:---|:---|
| TO: | · **[insert name of Vendor]** (the **"Vendor")** |

---

---

| | |
|:---|:---|
| FROM: | Red Mountain Ventures Limited Partnership (the **"Partnership")** AND FROM: Red Mountain Ventures G.P. Ltd. (the **"General Partner")** |

---

---

| | |
|:---|:---|
| AND FROM: | the directly and indirectly held Subsidiaries of the Partnership (the **"Subsidiaries"),** identified below |

---

---

| | |
|:---|:---|
| RE: | Amended and Restated Limited Partnership Agreement dated as of the July ___, 2024, between Limited Partners and the General Partner, as it may be amended and/or restated from time to time (the **"Partnership Agreement")** |

---

Capitalized terms and phrases used herein and not expressly defined herein shall have the same meanings as are ascribed to such terms and phrases in the Partnership Agreement.

WHEREAS:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. until the date of this Release, the Vendor has been a Limited Partner of the Partnership and the Vendor is disposing of such Vendor's Purchased Units on the date of this Release; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. this Release is delivered pursuant to paragraph 13.5 of the Partnership Agreement;

KNOW ALL MEN BY THESE PRESENTS that in consideration of the premises and for other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged), each of the Partnership and the General Partner DOES HEREBY RELEASE, REMISE AND FOREVER DISCHARGE each of the Vendor and its respective successors and assigns and, if the Vendor is not an individual, the Vendor's directors, officers and employees, respectively, of and from any and all claims, demands, suits, proceedings, covenants, liabilities and obligations of whatsoever kind and howsoever arising which the Partnership or the General Partner, respectively, now has or which it may hereafter have by reason of any act or omission arising as a result of the Vendor being a Limited Partner, except for any claims which might arise out of the Sale Transaction.

DATED this ____ day of ____________________________, 20__ **[insert Date of Closing]**.

---

| | |
|:---|:---|
| RED MOUNTAIN VENTURES LIMITED PARTNERSHIP | RED MOUNTAIN VENTURES LIMITED PARTNERSHIP |
| By its General Partner, | By its General Partner, |
| RED MOUNTAIN VENTURES G.P. LTD. | RED MOUNTAIN VENTURES G.P. LTD. |
| By: |  |
|  | Authorized Signatory |
|  | Name: |
|  | Title: |
| RED MOUNTAIN VENTURES G.P. LTD. | RED MOUNTAIN VENTURES G.P. LTD. |
| By: |  |
|  | Authorized Signatory |
|  | Name: |
|  | Title: |

---

**[add all Subsidiaries of the Partnership in existence at the relevant time]**

## Ex1K-2A

**Exhibit 2.6**

**Juice Trust dtd 1/24/96 Trust 3<br>and<br>Ere Development Inc.<br>and<br>Red Mountain Ventures Inc.<br>and<br>Rmr Acquisition Corp.<br>and<br>Red Property Management Ltd.<br>and<br>Red Mountain Ventures G.p. Ltd.**

**Shareholders' Agreement**

July 18, 2024

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| **ARTICLE 1 INTERPRETATION** | **ARTICLE 1 INTERPRETATION** | **2** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 | Definitions | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 | Sections and Headings; Interpretation | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 | Number, Etc. | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 | Accounting Terms | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5 | Severability | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6 | Currency | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.7 | Governing Law | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.8 | Time | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.9 | Control | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.10 | Schedules | 10 |
| **ARTICLE 2 IMPLEMENTATION OF AGREEMENT** | **ARTICLE 2 IMPLEMENTATION OF AGREEMENT** | **10** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 | Compliance; Implementation of Agreement | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 | Certificate Legend | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 | Consent to Transfers | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 | Conflict with Notice of Articles or Articles | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 | Termination of Agreement | 11 |
| **ARTICLE 3 REPRESENTATIONS AND WARRANTIES** | **ARTICLE 3 REPRESENTATIONS AND WARRANTIES** | **11** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 | Shareholders' Representations and Warranties | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 | Company Representations and Warranties | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 | RPM Representations and Warranties | 14 |
| **ARTICLE 4 MANAGEMENT, BUSINESS AND OPERATIONS** | **ARTICLE 4 MANAGEMENT, BUSINESS AND OPERATIONS** | **15** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 | Management Committee | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 | Management Committee Meetings | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 | Management Committee Approvals | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 | Company Board of Directors | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 | Company Board Meetings and Decisions | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 | Primary Shareholder Approvals | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7 | Company Shareholder Meetings | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8 | Management of the Company | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9 | Management Transition | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.10 | Management Participation Pool | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.11 | Indemnification and D&O Insurance | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.12 | Capital Expenditures | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.13 | Working Capital | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.14 | Development Projects | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.15 | Sale of Operating Resort | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.16 | Sale of Undeveloped Development Lands | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.17 | Sale of Entire Enterprise | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.18 | ERE Priority Offer | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.19 | Day Lodge to Continue | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.20 | Termination of Company as General Partner of Partnership | 32 |

---

---

| | | |
|:---|:---|:---|
| **ARTICLE 5 RED PROPERTY MANAGEMENT** | **ARTICLE 5 RED PROPERTY MANAGEMENT** | **32** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 | RPM Board of Directors | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 | RPM Board Meetings and Decisions | 33 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 | RPM Management Agreement | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 | Priority Dividend | 34 |
| **ARTICLE 6 CONFIDENTIALITY** | **ARTICLE 6 CONFIDENTIALITY** | **34** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 | Confidentiality | 34 |
| **ARTICLE 7 DEFAULTING SHAREHOLDER** | **ARTICLE 7 DEFAULTING SHAREHOLDER** | **37** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 | Defaulting Shareholder | 37 |
| **ARTICLE 8 CLOSING PROCEDURES** | **ARTICLE 8 CLOSING PROCEDURES** | **39** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 | Closing Procedures | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 | Transferor's Obligations | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 | Additional Obligations of Transferor | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4 | Transferee's Obligations | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5 | Transferor's Failure to Complete | 41 |
| **ARTICLE 9 ARBITRATION** | **ARTICLE 9 ARBITRATION** | **42** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 | Duty to Submit to Arbitration | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 | Appointing Authority | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 | Governing Rules | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4 | Place of Arbitration | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5 | Costs | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6 | Circumstances Arbitration Does Not Apply | 42 |
| **ARTICLE 10 GENERAL** | **ARTICLE 10 GENERAL** | **43** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 | Notices | 43 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 | Waivers | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3 | Entire Agreement | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4 | Further Assurances | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5 | Enurement | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.6 | Assignment | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.7 | Amendment | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.8 | Counterparts | 44 |

---

**SCHEDULES**

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Schedule A | Capital of the Company and RPM |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Schedule B | Lands |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Schedule C | Development Project Land Values |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Schedule D | Form of Development Project Proposal |

---

**SHAREHOLDERS' AGREEMENT**

THIS SHAREHOLDERS' AGREEMENT (this "**Agreement")** is made effective as of July 18, 2024

BETWEEN:

<u>JUICE TRUST DTD 1/24/96 TRUST 3,</u> a trust established under the laws of the State of California

(the "**Juice Trust**")

AND:

<u>ERE DEVELOPMENT INC.,</u> a company existing under the laws of the Province of British Columbia

("**ERE**")

AND:

<u>RED MOUNTAIN VENTURES INC.,</u> a company existing under the laws of the State of California

("**HowardCo**")

AND:

<u>RMR ACQUISTION CORP.,</u> a company existing under the laws of the Province of British Columbia

("**RMR**")

AND:

<u>RED PROPERTY MANAGEMENT LTD.,</u> a company existing under the laws of the Province of British Columbia

("**RPM**")

AND:

<u>RED MOUNTAIN VENTURES G.P. LTD.,</u> a company existing under the laws of the Province of British Columbia

(the "**Company**")

WHEREAS:

A. The Juice Trust is the sole owner of the Class E-2 Common Voting Shares of the Company;

B. ERE is the sole owner of the Class E-3 Common Voting Shares of the Company;

C. HowardCo is the sole owner of the Class E-4 Common Voting Shares of the Company (and is also an owner of Class A Common Non-Voting Shares and Class B Common Voting Shares of the Company);

D. The company is general partner of Red Mountain Ventures Limited Partnership (the "**Partnership**");

E. RMR is a Subsidiary of the Partnership;

F. RPM is owned by RMR and ERE;

G. The Juice Trust has a significant financial interest in the Partnership;

H. ERE is assuming significant responsibilities with respect to real estate development component of the Partnership's business as well as with respect to the Company's board of directors and management committee and RPM's board of directors;

I. HowardCo, by virtue of its ownership of Class E-4 Common Voting Shares and the historical and ongoing management services of Howard Katkov, has a financial interest in the Partnership's business;

J. The parties wish to enter into this Agreement in order to establish, among other things, rights and obligations arising out of or in connection with the ownership of their shares in the Company and RPM and the business of the Partnership and RPM.

NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the mutual covenants and agreements contained herein the parties hereto agree as follows:

**ARTICLE 1**

**INTERPRETATION**

**1.1**  **<u>Definitions.</u>** 

In this Agreement, the following words and expressions will have the respective meanings ascribed to them below:

"**Act**" means the *Business Corporations Act* (British Columbia), as amended from time to time;

"**Affiliate**" means, when used to indicate a relationship with a specified Person, (a)any other Person that, directly or indirectly, is in Control of, is Controlled by or is under common Control with the specified Person;

"**Agreement**" means this Agreement, as may be modified, amended and/or restated from time to time in accordance herewith;

"**Approved E-1 Capex Plan**" has the meaning ascribed thereto in Section 4.12;

"**Articles**" means the articles of the Company and RPM, as the case may be, and has the meaning ascribed thereto in the Act;

"**Associate**" means has the meaning specified in the *Business Corporations Act* (British Columbia) , as amended from time to time;

"**Business**" means the business of owning and operating the Red Mountain ski resort at Rossland, British Columbia and owning and developing certain real estate surrounding the Red Mountain ski resort owned by the Partnership and its Subsidiaries;

"**Business Day**" means any day of the year, other than a Saturday, a Sunday or any day on which banks are required or authorized to close in Rossland, British Columbia;

"**Canadian Financial Institution**" means a bank or credit union that is authorized by an enactment of Canada or a jurisdiction of Canada to carry on business in Canada or a jurisdiction in Canada;

"**Closing Date**" has the meaning ascribed thereto in Section 8.1;

"**Committee Matter**" and "**Committee Matters**" have the meanings ascribed thereto in Subsection 4.3(a);

"**Committee Member**" means a member of the Management Committee;

"**Company**" means Red Mountain Ventures G.P. Ltd., a British Columbia company;

"**Company Board**" means the board of the directors of the Company;

"**Company Director**" means a member of the board of directors of the Company duly elected in accordance with the Act, the Notice of Articles, the Articles and this Agreement;

"**Company Shareholder**" means any holder of Company Shares;

"**Company Shares**" means shares in the capital of the Company;

"**Control**" has the meaning ascribed thereto in Subsection 1.9;

"**Default Buy Notice**" has the meaning ascribed thereto in Subsection 7.1(d)(ii);

"**Default Shares**" has the meaning ascribed thereto in Paragraph 7.1(d)(ii);

"**Defaulting Shareholder**" has the meaning ascribed thereto in Subsection 7.1(a);

"**Development Lands**" means such portion of the Lands that is not Operating Lands;

"**Development Progress Default**" has the meaning ascribed thereto in Subsection 4.14(m);

"**Development Project LP**" has the meaning ascribed thereto in Paragraph 4.14(e)(i);

"**Development Project Notice**" has the meaning ascribed thereto in Subsection 4.14(c);

"**Development Project Proposal**" has the meaning ascribed thereto in Subsection 4.14(d);

"**Development Projects**" means the financing, development and sale of condo, hotel and other development projects on the Lands, and each one individually is a "**Development Project**";

"**Development Proposal Date**" has the meaning ascribed thereto in Subsection 4.14(d);

"**Disabled**" means any Person who: (a) becomes incapable of discharging the usual duties of such Person's business or employment by reason of illness, disease, or other mental or physical disability for either (i) a period of six consecutive months, or (ii) 275 days in the aggregate during any period of 365 consecutive days; or (b) is determined by a court of competent jurisdiction to be unable to manage such Person's own affairs;

"**DP Valuation**" has the meaning ascribed thereto in Paragraph 7.1(c)(i);

"**E-1 Offering**" means the offering of Class E-1 Preferred shares of RMR by way of capital commitments, the first closing of which takes place on or about July<u> </u>, 2024;

"**Effective Date**" means July<u> </u>, 2024, the date of this Agreement;

"**Entire Enterprise**" means, at any given time, the Operating Resort and remaining Development Lands;

"**ERE**" means ERE Development Inc., a British Columbia company;

"**ERE Funding Deadline**" has the meaning ascribed thereto in Subsection 4.14(h);

"**ERE Key Man Event**" has the meaning ascribed thereto in Subparagraph 7.1(a)(iv)(B);

"**ERE Offer Period**" has the meaning ascribed thereto in Subsection 4.18(a);

"**ERE Priority Offer**" has the meaning ascribed thereto in Section 4.18;

"**ERE Shareholder**" means, collectively, ERE and any Permitted Transferees of ERE, as applicable, holding collectively all of the Shares beneficially owned by ERE;

"**Event of Default**" has the meaning ascribed thereto in Subsection 7.1(a);

"**Fundamental Matter**" and "**Fundamental Matters**" have the meanings ascribed thereto in Subsection 4.6(a);

"**HowardCo**" means Red Mountain Ventures Inc., a Delaware corporation;

"**JT Shareholder**" means, collectively, the Juice Trust and any Permitted Transferees of the Juice Trust, as applicable, holding collectively all of the Shares beneficially owned by the Juice Trust;

"**Juice Trust**" means the Juice Trust dtd 1/24/96 Trust 3, a trust constituted under the laws of California;

"**Lands**" means the real property beneficially owned by the Partnership and legally owned by RMR as set forth in Schedule B hereto;

"**Laws**" means all statutes, regulations, statutory rules, orders, and terms and conditions of any grant of approval, permission, authority or license of any court, governmental entity, statutory body or self-regulatory authority, and the term "applicable" with respect to such Laws and in the context that refers to one or more Persons, means that such Laws apply to such Person or Persons or its or their business, undertaking, property or securities and emanate from a governmental entity, statutory body or self-regulatory authority having jurisdiction over the Person or Persons or its or their business, undertaking, property or securities;

"**Loan Facility**" has the meaning ascribed thereto in Paragraph 4.12(b)(ii);

"**Management Committee**" means the management committee of the Company formed pursuant to Section 4.1;

"**Management Committee Approval**" has the meaning ascribed thereto in Subsection 4.2(f);

"**Management Committee Deadlock**" means a decision put forward to the Management Committee that has both votes for and against the decision such that Management Committee Approval is not obtained in respect of such decision;

"**Non-Defaulting Shareholder**" has the meaning ascribed thereto in Paragraph 7.1(a)(i);

"**Notice of Articles**" means the notice of articles of the Company or RPM, as the case may be, as that term is used in the Act;

"**Offered Interest**" has the meaning ascribed thereto in Section 4.18;

"**Offered Interest Closing Date**" has the meaning ascribed thereto in Subsection 4.18(c);

"**Offered Interest Price and Terms**" has the meaning ascribed thereto in Section 4.18;

"**Operating Lands**" means such Lands as are necessary, as determined by the Company Board from time to time, to carry on the business of owning and operating the Red Mountain ski resort at Rossland, British Columbia;

"**Operating Resort**" means the Operating Lands and real and personal property located on the Operating Lands owned by the Partnership and its Subsidiaries involved in the operation of the ski resort at Red Mountain Resort;

"**Partner**" means a partner of the Partnership;

"**Partnership**" means Red Mountain Ventures Limited Partnership, a British Columbia partnership;

"**Partnership Agreement**" means the amended and restated limited partnership agreement governing the Partnership dated the Effective Date, as may be further amended and/or restated from time to time;

"**Partnership Units**" means units of any class or series of the Partnership;

"**Partnership Waterfall**" means Sections 4.8 and 15.5 of the Partnership Agreement, being the sections of the Partnership Agreement pursuant to which distributions are made to the limited partners of the Partnership;

"**Permitted Transferee**" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in the case of HowardCo, Howard Katkov and/or any Affiliate of the Katkov Family Trust dtd August 25,
1989 (Howard I. Katkov and Tracy J. Katkov trustees), a trust constituted under the laws of California;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the case of ERE, any Affiliate of ERE; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in the case of the JT Shareholder, any Affiliate of the Juice Trust;

"**Person**" or "**person**" means any individual, sole proprietorship, partnership, limited partnership, joint venture, syndicate, unincorporated association, corporation, trust, trustee, executor, administrator or other legal representative, regulatory body or agency, government or governmental agency, authority or entity however designated or constituted;

"**Primary Shareholder**" means each of the ERE Shareholder and JT Shareholder;

"**Project Costs**" means, in respect of a Development Project, all hard construction and soft costs incurred in the development, construction, marketing and sale of such Development Project, including all fees, interest and other amounts payable under and in respect of any construction financing; and for the purposes of this definition, "soft costs" means all costs incurred in developing the Development Project which are not directly related to the construction of a Development Project or included in the project budget for construction, and specifically but without limiting the generality of the foregoing includes engineering, architectural, consultants, on-site project management, landscaping, testing, surveys, legal fees, financing costs, any permit and connection fees, appraisal, financing fees and interest, sales costs and commissions;

"**Protected Parties**" has the meaning ascribed thereto in Section 6.1;

"**Purchased Shares**" has the meaning ascribed thereto in Section 8.1;

"**Representative**" has the meaning ascribed thereto in Subsection 6.1(a);

"**RMR**" means RMR Acquisition Corp., a British Columbia company;

"**RMR Shareholders' Agreement**" means the shareholders' agreement governing RMR dated the Effective Date, as may be further amended and/or restated from time to time;

"**RPM**" means Red Property Management Ltd., a British Columbia company;

"**RPM Board**" means the board of the directors of RPM;

"**RPM Director**" means a member of the board of directors of RPM duly elected in accordance with the Act, the Notice of Articles, the Articles and this Agreement;

"**RPM Management Agreement**" has the meaning ascribed thereto in Section 5.3;

"**RPM Shares**" means shares in the capital of RPM;

"**Shareholder**" means each of the JT Shareholder, ERE Shareholder and HowardCo, so long as they hold any Shares, and any Person that subsequently acquires Shares from such shareholders in accordance with the terms of this Agreement;

"**Shares**" means shares in the capital of the Company and RPM;

"**Subsidiary**" means, in respect of a specified Person, any Person that is directly or indirectly Controlled by such specified Person;

"**Transfer**" means a sale, exchange, assignment, gift, bequest, disposition, mortgage, charge, pledge, encumbrance, grant of security interest or lien or other arrangement or dealing under which:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) possession, legal title or beneficial ownership of Shares, directly or indirectly, passes (including,
for greater certainty, the direct or indirect transfer of shares of any Shareholder that is a corporation), or may in the future pass,
from one Person to another or to the same Person in a different capacity; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) another Person (other than by a proxy in connection with a specific meeting of the Company) becomes entitled
to vote Shares or to direct the manner in which votes attaching to Shares are to be voted,

whether or not voluntary and whether or not for value, and any agreement to effect any of the foregoing, including the granting of an option or similar right to effect any of the foregoing;

"**Transferee**" means any Person to whom Shares are to be Transferred; and

"**Transferor**" means any Shareholder that has proposed to Transfer Shares in accordance with this Agreement.

**1.2**  **<u>Sections and Headings; Interpretation.</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The division of this Agreement into articles and sections and the insertion of headings are for the convenience
of reference only and will not affect the construction or interpretation of this Agreement. Unless something in the subject matter or
context is inconsistent therewith, references herein to articles, sections, subsections and paragraphs are to articles, sections, subsections
and paragraphs of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The terms "this Agreement", "hereof", "herein", "hereby", "hereto",
"hereunder" and similar expressions refer to this Agreement as a whole, and not to any particular article, section or other
portion hereof, and include any agreement or instrument supplemental or ancillary hereto. For purposes of this Agreement: (i) the words
"include," "includes" and "including" shall be deemed to be followed by the words "without limitation"
and (ii) the word "or" is not exclusive.

**1.3**  **<u>Number, Etc.</u>** 

Words importing the singular number will include the plural and vice-versa, words importing the masculine gender will include the feminine and neuter genders and vice-versa and words importing persons will include individuals, partnerships, trusts, unincorporated organizations, companies and other entities and vice-versa.

**1.4**  **<u>Accounting Terms.</u>** 

All accounting terms herein will have the meanings ascribed to them in accordance with the generally accepted accounting principles from time to time approved by the Chartered Professional Accountants of Canada, or any successor institute, consistently applied.

**1.5**  **<u>Severability.</u>** 

If a court, arbitrator or other tribunal of competent jurisdiction determines that any one or more of the provisions contained in this Agreement is invalid, illegal or unenforceable in any respect in any jurisdiction, the validity, legality and enforceability of such provision or provisions will not in any way be affected or impaired thereby in any other jurisdiction and the validity, legality and enforceability of the remaining provisions contained herein will not in any way be affected or impaired thereby, unless in either case as a result of such determination this Agreement would fail in its essential purpose and, provided such determination does not cause this Agreement to fail in its essential purpose, the parties will negotiate in good faith to agree to a substitute term that will be as close as possible to the intention of any invalid or unenforceable term while being valid and enforceable.

**1.6**  **<u>Currency.</u>** 

All payments contemplated herein will be paid in Canadian funds, in cash, by way of telegraphic transfer of funds of immediately available funds, bankers' draft, solicitor's trust or certified cheque and all references herein to dollar amounts are references to dollars in the lawful currency of Canada.

**1.7**  **<u>Governing Law.</u>** 

This Agreement will be governed by and construed in accordance with the laws of the Province of British Columbia and the laws of Canada applicable therein, without giving effect to any choice of law or conflicting provision or rule that would cause the laws of any other jurisdiction to be applied, and the parties submit and attorn to the jurisdiction of the courts of the Province of British Columbia.

**1.8**  **<u>Time.</u>** 

Time will be the essence hereof. When calculating the period of time within which or following which any act is to be done or step taken pursuant to this Agreement, the date which is the reference date in calculating such period will be excluded. If the last day of such period is a non-Business Day, the period in question will end on the next Business Day.

**1.9**  **<u>Control.</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) For the purposes of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a person controls a body corporate if securities of the body corporate to which are attached more than
50% of the votes that may be cast to elect directors of the body corporate are beneficially owned by the person and the votes attached
to those securities are sufficient, if exercised, to elect a majority of the directors of the body corporate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a person controls an unincorporated entity, other than a limited partnership, if more than 50% of the
ownership interests, however designated, into which the entity is divided are beneficially owned by that person and the person is able
to direct the business and affairs of the entity; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the general partner of a limited partnership controls the limited partnership.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) A person who controls an entity is deemed to control any entity that is controlled, or deemed to be controlled,
by the entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) A person is deemed to control, within the meaning of Subsection 1.9(a) or (b), an entity if the aggregate
of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any securities of the entity that are beneficially owned by
that person, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any securities of the entity that are beneficially owned by
any entity controlled by that person,

is such that, if that person and all of the entities referred to in Paragraph 1.9(c)(ii) that beneficially own securities of the entity were one person, that person would control the entity.

**1.10**  **<u>Schedules.</u>** 

The following Schedules annexed hereto form part of this Agreement and are incorporated herein by reference:

Schedule A - Capital of the Company and RPM

Schedule B - Lands

Schedule C - Development Project Land Values

Schedule D - Form of Development Project Proposal

**ARTICLE 2**

**IMPLEMENTATION OF AGREEMENT**

**2.1**  **<u>Compliance; Implementation of Agreement.</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Shareholder agrees that insofar as it lies within the Shareholder's power to do so the Shareholder
will vote or cause to be voted the Shareholder's Shares in such a way as to fully implement the terms and conditions of this Agreement
and, to the extent permitted by Law and the fiduciary duties of directors, will cause its nominees to the Company Board, RPM Board and
board of directors of RMR to vote and otherwise act to carry out the provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each of the Company, RMR and RPM consents to this Agreement and agrees to be governed by its terms. Each
of the Company, RMR and RPM will at all times carry out and be governed by the provisions of this Agreement to the full extent that it
has the capacity and power at Law to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Shareholder, RMR, RPM and the Company agree and shall ensure that each Person who becomes a Shareholder
must, concurrently with becoming a Shareholder, execute and deliver to the Company and RPM a counterpart copy of this Agreement or a written
agreement in form and substance satisfactory to the Company and RPM, agreeing to be bound by this Agreement.

**2.2**  **<u>Certificate Legend.</u>** 

Each certificate representing Shares will bear the following legend:

"The securities represented by this certificate are subject to the provisions of a Shareholders' Agreement between the Company and its shareholders. Pursuant to the terms of such agreement, these securities may not be sold, transferred, pledged, hypothecated or otherwise disposed of except in accordance therewith."

**2.3**  **<u>Consent to Transfers.</u>** 

Each of the Shareholders hereby consents to any Transfer of Shares made in accordance with this Agreement and hereby covenants and agrees that such consent will satisfy any restriction on transfer of the shares contained in the Notice of Articles or Articles and that no further consent of such Shareholder, as a Shareholder, will be required pursuant to the Notice of Articles or Articles for any Transfer of Shares contemplated in or made in accordance with this Agreement.

**2.4**  **<u>Conflict with Notice of Articles or Articles.</u>** 

In the event of any conflict between the provisions of this Agreement and the Notice of Articles, the provisions of this Agreement will prevail and govern to the greatest extent permitted under the Act. In the event of any conflict between the provisions of this Agreement and the Articles, the provisions of this Agreement will prevail and govern and the Shareholders will cause the Articles to be amended to conform to the provisions of this Agreement. Any matter not otherwise specifically dealt with herein will be governed by the Act, the Notice of Articles and the Articles.

**2.5**  **<u>Termination of Agreement.</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement will terminate upon:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the written agreement of all of the Shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the dissolution of the Company and RPM; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) one Person becoming the beneficial owner of all of the issued and outstanding Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The termination of this Agreement will not affect or prejudice any rights or obligations that have accrued
or arisen under this Agreement before the time of termination and such rights and obligations will survive the termination of this Agreement.

**ARTICLE 3**

**REPRESENTATIONS AND WARRANTIES**

**3.1**  **<u>Shareholders' Representations and Warranties.</u>** 

As of the Effective Date, each Shareholder represents and warrants that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it is the registered and beneficial owner of that number of Shares set out opposite its name on Schedule
A;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) other than as set out in Schedule A, the Shares set out opposite its name on Schedule A are free and clear
of all claims, liens and encumbrances whatsoever and no Person has any agreement or option or right capable of becoming an agreement for
the purchase of any such Shares save as may be contemplated herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) it is duly incorporated or amalgamated,
as the case may be, validly existing, and in good standing (if applicable) under the laws of its jurisdiction of incorporation or amalgamation,
as the case may be, and has the corporate power, capacity and authority to own and operate its assets and to carry on the business as
now conducted by it. Such Shareholder is duly qualified, licensed or registered to carry on business in all jurisdictions in which the
nature of its assets or its business makes such qualification necessary or desirable. No proceedings have been taken or authorized by
such Shareholder nor to the knowledge of such Shareholder, by any other person with respect to the bankruptcy, insolvency, liquidation,
dissolution or the winding up of such Shareholder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) it has all necessary corporate power, capacity and authority to enter into this Agreement and perform
its obligations hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the execution and delivery of this Agreement by such Shareholder has been duly authorized by all necessary
corporate action by such Shareholder and this Agreement has been duly executed and delivered by it and constitutes a valid and binding
obligation enforceable against it in accordance with its terms; subject only to any limitation under applicable Laws relating to bankruptcy,
winding-up, insolvency, arrangement or other Laws of general application affecting the enforcement of creditors' rights and the discretion
that a court may exercise in the granting of equitable remedies such as specific performance and injunction; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the execution and delivery by such Shareholder of this Agreement and the performance by such Shareholder
of its obligations hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) will not result in a breach of, or cause the termination or revocation of, any license, registration,
authorization, permit, approval or consent held by such Shareholder or necessary to the ownership or operation of such Shareholder's business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) does not (and will not with the giving of notice, the lapse of time or the happening of any other event
or condition) result in a breach or violation of, or conflict with, or allow any other Person to exercise any termination or other rights
under, any of the terms or provisions of the constating documents of such Shareholder or any material contracts or instruments to which
such Shareholder is a party or pursuant to which such Shareholder's assets may be affected;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) will not result in the violation of any Law; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) does not require such Shareholder to obtain any consent, license, certification or approval from any Person.

**3.2**  **<u>Company Representations and Warranties.</u>** 

As of the Effective Date, the Company represents and warrants that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the authorized capital of the Company is as set out in Schedule A;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) it is duly incorporated, validly existing, and in good standing under the laws of British Columbia and
has the corporate power, capacity and authority to own and operate its assets and to carry on the business as now conducted by it. The
Company is duly qualified, licensed or registered to carry on business in all jurisdictions in which the nature of its assets or its business
makes such qualification necessary or desirable. No proceedings have been taken or authorized by the Company nor to the knowledge of the
Company, by any other person with respect to the bankruptcy, insolvency, liquidation, dissolution or the winding up of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) it has all necessary corporate power, capacity and authority to enter into this Agreement and perform
its obligations hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the execution and delivery of this Agreement by the Company has been duly authorized by all necessary
corporate action by the Company and this Agreement has been duly executed and delivered by it and constitutes a valid and binding obligation
enforceable against it in accordance with its terms; subject only to any limitation under applicable Laws relating to bankruptcy, winding-up,
insolvency, arrangement or other Laws of general application affecting the enforcement of creditors' rights and the discretion that a
court may exercise in the granting of equitable remedies such as specific performance and injunction; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the execution and delivery by the Company of this Agreement and the performance by the Company of its
obligations hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) will not result in a breach of, or cause the termination or revocation of, any license, registration,
authorization, permit, approval or consent held by the Company or necessary to the ownership or operation of the Company's business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) does not (and will not with the giving of notice, the lapse of time or the happening of any other event
or condition) result in a breach or violation of, or conflict with, or allow any other Person to exercise any termination or other rights
under, any of the terms or provisions of the constating documents of the Company or any material contracts or instruments to which the
Company is a party or pursuant to which the Company's assets may be affected;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) will not result in the violation of any Law; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) does not require the Company to obtain any consent, license, certification or approval from any Person.

**3.3**  **<u>Rpm Representations and Warranties.</u>** 

As of the Effective Date, RPM represents and warrants that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the authorized capital of RPM is as set out in Schedule A;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) it is duly incorporated, validly existing, and in good standing under the laws of British Columbia and
has the corporate power, capacity and authority to own and operate its assets and to carry on the business as now conducted by it. RPM
is duly qualified, licensed or registered to carry on business in all jurisdictions in which the nature of its assets or its business
makes such qualification necessary or desirable. No proceedings have been taken or authorized by RPM nor to the knowledge of RPM, by any
other person with respect to the bankruptcy, insolvency, liquidation, dissolution or the winding up of RPM;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) it has all necessary corporate power, capacity and authority to enter into this Agreement and perform
its obligations hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the execution and delivery of this Agreement by RPM has been duly authorized by all necessary corporate
action by RPM and this Agreement has been duly executed and delivered by it and constitutes a valid and binding obligation enforceable
against it in accordance with its terms; subject only to any limitation under applicable Laws relating to bankruptcy, winding-up, insolvency,
arrangement or other Laws of general application affecting the enforcement of creditors' rights and the discretion that a court may exercise
in the granting of equitable remedies such as specific performance and injunction; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the execution and delivery by RPM of this Agreement and the performance by RPM of its obligations hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) will not result in a breach of, or cause the termination or revocation of, any license, registration,
authorization, permit, approval or consent held by RPM or necessary to the ownership or operation of RPM's business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) does not (and will not with the giving of notice, the lapse of time or the happening of any other event
or condition) result in a breach or violation of, or conflict with, or allow any other Person to exercise any termination or other rights
under, any of the terms or provisions of the constating documents of RPM or any material contracts or instruments to which RPM is a party
or pursuant to which RPM's assets may be affected;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) will not result in the violation of any Law; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) does not require RPM to obtain any consent, license, certification or approval from any Person.

**ARTICLE 4**

**MANAGEMENT, BUSINESS AND OPERATIONS**

**4.1**  **<u>Management Committee.</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company and RPM will have a combined
 management committee (the "**Management Committee**") comprised of a
 maximum of four (4) individuals serving as Committee Members on the Management Committee.
 Subject to Section 7.1, the JT Shareholder shall have the right to appoint two (2) individuals
 as Committee Members and the ERE Shareholder shall have the right to appoint two (2) individuals
 as Committee Members. As of the Effective Date, the JT Shareholder appointees as Committee
 Members are Howard Katkov and Donald Thompson and the ERE Shareholder appointees as Committee
 Members are David Evans and Christopher Evans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If an appointee Committee Member of either Primary Shareholder resigns or is removed, for any reason,
the vacancy will be filled by the appointment of a Committee Member nominated by such Primary Shareholder, provided such Primary Shareholder
is still entitled to do so pursuant to the provisions of this Agreement. The Management Committee will not transact any business or exercise
any of its powers or functions until such vacancy is filled, except to carry on the business of the Company and RPM in the ordinary course.
If a replacement Committee Member is not elected or appointed within 30 calendar days because the Primary Shareholder has failed to appoint
a replacement, the Committee Members then in office will be entitled to transact business and exercise all of the powers and functions
of the Management Committee. A decision or action of the Committee Members then in office is deemed to be a decision or action of the
Management Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If a Primary Shareholder disposes of all of the Company Shares and/or RPM Shares owned by such Primary
Shareholder as permitted under this Agreement (except to a Permitted Transferee), such disposing Primary Shareholder's appointee Committee
Member(s) shall either resign or be removed, unless the remaining Primary Shareholder consents otherwise in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If a Primary Shareholder becomes a Defaulting Shareholder, and for so long as a Primary Shareholder is
a Defaulting Shareholder (or, in the case of paragraph 7.1(a)(i), if a notice of material breach remains outstanding against a Primary
Shareholder and has not been rescinded, retracted or reversed), the Committee Members previously appointed by such Defaulting Shareholder
shall either resign or be removed upon the written request of the other Primary Shareholder being delivered to Defaulting Shareholder,
and may not be re-appointed to become Committee Members until the applicable Primary Shareholder is no longer a Defaulting Shareholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Except as approved by the Company Board, no amount is payable by way of salary, bonus or otherwise to
any Committee Member for acting as a member of the Management Committee (excluding, for certainty, any
salary, bonuses, benefits or other compensation, paid in cash or otherwise, paid or payable to any Committee Member in their capacity
as a contractor, officer and/or employee of the Company and/or RPM). Committee Members will be entitled to reimbursement for reasonable
expenses incurred with respect to attending meetings of the Management Committee.

**4.2**  **<u>Management Committee Meetings.</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Management Committee will hold regularly scheduled meetings at least one (1) time per month to perform
its duties on such date that is a Business Day and at such time as shall be determined by the Committee Members, acting reasonably. Within
two (2) weeks of the Effective Date, the Committee Members will prepare a schedule of meetings for the upcoming twelve months.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any Committee Member may call a meeting of the Management Committee. At least 48 hours' prior written
notice of any Management Committee meeting must be given unless all of the Committee Members are present or those who are absent waive
notice. All Management Committee meetings will be held on a Business Day between 9:00am and 5:00pm Rossland time unless all Committee
Members otherwise agree. Committee Members may attend Management Committee meetings in person or by means of such telephone, electronic
or other communications facilities as permit all participants participating in a meeting to communicate simultaneously and instantaneously.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The quorum for a meeting of the Committee Members is all Committee Members serving on the Management Committee
at any given time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If at the time scheduled for a meeting of the Management Committee a quorum is not present, then (i) the
meeting shall be adjourned to the same time and place on the date which is at least two (2) Business Days, but no more than five (5) Business
Days, thereafter or such other time, place and/or date as determined by the Committee Member that called the meeting, (ii) notice of the
adjourned meeting shall be given to each of the Committee Members; and (iii) at such adjourned meeting the quorum shall be at least three
(3) Committee Members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Each of the Primary Shareholders shall use its commercially reasonable efforts to cause its nominee Committee
Members to attend all meetings of the Management Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Subject to applicable Law, unless otherwise
 expressly required in this Agreement, all decisions, approvals, determinations and consents
 of the Management Committee ()"**Management Committee Approval**") will
 be decided, approved, determined or consented to by a 75% majority of the votes cast by the
 Committee Members at a Management Committee meeting or by written approval (including by
 electronic mail) of 75% the Committee Members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) If a matter put forward for Management Committee Approval pursuant to Section 4.3 or otherwise is not
approved by the Management Committee by virtue of a Management Committee Deadlock, then such matter will be referred to the Company Board
for approval.

**4.3**  **<u>Management Committee Approvals.</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In addition to any other approval required
 by Law and subject to Article 7 and Subsection 4.1(e), the Company and/or RPM, as the case
 may be, may not make a decision about, take action on or implement any of the following without
 Management Committee Approval (the matters set out in this Subsection 4.6(a) are referred
 to collectively in this Agreement as the "**Committee Matters** ", and each
 one individually is a "**Committee Matter** "):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the retainer, hiring or termination, and the setting of salaries, raises, bonuses, benefits and other
compensation, of (whether retained or hired by the Company or the Partnership's Affiliates (including RPM)) any management employee of
the Business in any department, including but not limited to (applicable Partnership Affiliate department noted in brackets):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Chief Executive Officer (RMR; after April 30, 2025);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) President (RMR; after April 30, 2025);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) General Manager (Red Resort Limited Partnership);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) Chief Financial Officer (Red Resort Limited Partnership);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) Guest Services Manager (Red Resort Limited Partnership);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) Ski School Manager (Red Resort Limited Partnership);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G) Sales and Marketing Manager (Red Resort Limited Partnership);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(H) Events Manager (Red Resort Limited Partnership);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) Food and Beverage Manager (Red Resort Limited Partnership);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(J) Ski Patrol Manager (Red Resort Limited Partnership);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(K) Buildings Manager (Red Resort Limited Partnership);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(L) Hill and Trail Manager (Red Resort Limited Partnership);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(M) Maintenance Manager (Red Resort Limited Partnership);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(N) Lift Operations Manager (Red Resort Limited Partnership);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(O) Red Property Management Manager (RPM);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(P) Retail Manager (Red Sports); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Q) Rental Manager (Red Sports;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the appointment or removal of one or more designated supervisors to whom the Persons referenced in Paragraph
4.3(a)(i) must report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) delivery of any financial and/or other reporting to investors in the Partnership;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) specific expenditures to be made under a capital expenditure plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) capital calls to investors in RMR under the E-1 Offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) renewal, amendment, adoption, or termination of any collective bargaining agreement with respect to the
Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) insurance coverage for the Lands and the Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) any loans or other financing in respect of the Business; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) the annual budget for the Operating Resort.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The approval required under Subsection 4.6(a) is in addition to any other approvals required by Law. In
the event Shareholder, Company Board and/or RPM Board approvals are also required to make a decision about, take action on or implement
any Committee Matter that has been approved in accordance with Subsection 4.6(a):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) each Shareholder will fully co-operate in and vote in favour of, and will not dissent from, the proposed
decision or action; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to the extent permitted by Law and the fiduciary duties of directors, each Primary Shareholder will cause
its nominees to the Company Board and RPM Board to vote in favour of, and not abstain from, the proposed decision or action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In addition to the matters requiring consideration by the Management Committee under Subsection 4.6(a),
the Management Committee will also have the following responsibilities:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) review of monthly, quarterly and annual reporting on all aspects of the Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) delivery of quarterly reports to the Company Board respecting the allocation and utilization of funds
for capital expenditures; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) approval of any capital expenditures over $10,000.00 and under $50,000.00 (and for greater certainty,
any capital expenditures $50,000.00 or more requires unanimous approval of the Company Board pursuant
to Subsection 4.12(a)).

**4.4**  **<u>Company Board of Directors.</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company will have a maximum of five (5) individuals serving as Company Directors on the Company Board.
Subject to Section 7.1 and Subsection 4.4(f), the JT Shareholder shall have the right to nominate two (2) individuals as Company Directors,
HowardCo shall have the right to nominate one (1) individual as an Company Director and the ERE Shareholder shall have the right to nominate
two (2) individuals as Company Directors. As of the Effective Date, the JT Shareholder nominees as Company Directors are Jeff Busby and
Donald Thompson, the HowardCo nominee as Company Director is Howard Katkov and the ERE Shareholder nominees as Company Directors are David
Evans and Christopher Evans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If a nominee Company Director of a Shareholder resigns or is removed, for any reason, the vacancy will
be filled by the election or appointment of a Company Director nominated by such Shareholder, provided such Shareholder is still entitled
to do so pursuant to the provisions of this Agreement. The Company Directors will not transact any business or exercise any of their powers
or functions until such vacancy is filled, except to carry on the business of the Company in the ordinary course. If a replacement Company
Director is not elected or appointed within 60 calendar days because the Shareholder has failed to nominate a replacement, the Company
Directors then in office will be entitled to transact business and exercise all of the powers and functions of the Company Directors.
A decision or action of the Company Directors then in office is deemed to be a decision or action of the Company Directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If a Shareholder disposes of all of its Company Shares as permitted under this Agreement (except to a
Permitted Transferee), such disposing Shareholder's nominee Company Director(s) shall either resign or be removed, unless the remaining
Shareholder consent otherwise in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If a Shareholder becomes a Defaulting Shareholder, and for so long as a Shareholder is a Defaulting Shareholder
(or, in the case of paragraph 7.1(a)(i), if a notice of material breach remains outstanding against a Shareholder and has not been rescinded,
retracted or reversed), the Company Directors previously nominated by such Defaulting Shareholder shall either resign or be removed upon
the written request of the other Shareholders being delivered to Defaulting Shareholder, and may not be re-nominated to become Company
Directors until the applicable Shareholder is no longer a Defaulting Shareholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Except as approved pursuant to Section 4.6, no amount is payable by way of salary, bonus or otherwise
to any Company Director for acting as a director of the Company (excluding, for certainty, any salary, bonuses, benefits or other compensation,
paid in cash or otherwise, paid or payable to any Company Director in their capacity as an officer and/or employee of
the Company). Company Directors will be entitled to reimbursement for reasonable expenses incurred with respect to attending meetings
of the Company Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Commencing May 1, 2025, the .JT Shareholder shall have the option, exercisable in writing to the Company
and the other Shareholders, to have an additional nominee Company Director in respect of the Company Board and, if such option is exercised,
HowardCo will no longer be entitled to a nominee Company Director. If so required by the JT Shareholder in writing, the Company Director
previously nominated by HowardCo shall either resign or be removed and if no such written request is provided, the Howard Co nominee as
Company Director will be deemed to henceforth continue as the JT Shareholder nominee. For greater certainty, the Company Board will remain
the same size after the JT Shareholder has exercised the option provided for in this Subsection 4.4(f) as it was prior to the exercise
of such option.

**4.5**  **<u>Company Board Meetings and Decisions.</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any Company Director may call a meeting of the Company Board. At least 48 hours' prior written notice
of any Company Board meeting must be given unless all of the Company Directors are present or those who are absent waive notice. A Company
Director is not considered present at a meeting where that Company Director attends the meeting for the express purpose of objecting to
the transaction of any business on the grounds that the meeting is not lawfully called. All Company Board meetings will be held on a Business
Day between 9:00am and 5:00pm Rossland time unless all Company Directors otherwise agree. Company Directors may attend Company Board meetings
in person or by means of such telephone, electronic or other communications facilities as permit all participants participating in a meeting
to communicate simultaneously and instantaneously.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The quorum for a meeting of the Company Directors is all Company Directors serving on the Company Board
at any given time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If at the time scheduled for a meeting a quorum is not present, then (i) the meeting shall be adjourned
to the same time and place on the date which is at least two (2) Business Days, but no more than five (5) Business Days, thereafter or
such other time, place and/or date as determined by the unanimous approval of the Company Directors, (ii) notice of the adjourned meeting
shall be given to each of the Company Directors; and (iii) at such adjourned meeting the quorum shall be at least three (3) Company Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each of the Shareholders shall use its commercially reasonable efforts to cause its nominee Company Directors
to attend all meetings of the Company Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Subject to applicable Law, unless otherwise expressly required in this Agreement, all decisions,
 approvals, determinations and consents of the Company Directors required by this Agreement will be decided, approved, determined or
 consented to by a simple majority of the votes cast at a Company
Board meeting or by written resolution signed by all of the Company Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Where Section 4.14 of this Agreement refers to any notice to be made by the Company Board, that notice
may be made by any Company Director that is a nominee of HowardCo or the JT Shareholder on behalf of the Company Board (and for greater
certainty, after the applicable decision has been made by the Company Board).

**4.6**  **<u>Primary Shareholder Approvals.</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In addition to any other approval required
 by Law and subject to Article 7, the Company may not make a decision about, take action on
 or implement any of the following without the unanimous approval of (i) the JT Shareholder,
 for so long as the JT Shareholder continues to own any issued and outstanding Shares, and
 (ii) the ERE Shareholder, for so long as the ERE Shareholder continues to own any issued
 and outstanding Shares (the matters set out in this Subsection 4.6(a) are referred to collectively
 in this Agreement as the "**Fundamental Matters** ", and each one individually
 is a "**Fundamental Matter** "):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) allotting, reserving, setting aside or issuing any Shares (including any terms and conditions of such
issuance), Partnership Units or other securities of the Company, the Partnership or RPM or any of the other Subsidiaries of the Partnership
(including securities convertible into or exercisable for Shares) or issuing or granting any rights, warrants or options to purchase,
acquire or otherwise obtain any unissued Shares, Partnership Units or other securities of the Company, the Partnership or RPM or any of
the other Subsidiaries of the Partnership or any other instrument of a similar dilutive effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any transfer of Shares other than Transfers to Permitted Transferees or as otherwise set out in this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any transfer of units of the Partnership by the JT Shareholder or its Affiliates other than Transfers
in accordance with the Partnership Agreement to Permitted Transferees as that term is defined in the Partnership Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) permitting the Company to resign as general partner of the Partnership or voting in favour of removal
of the Company as general partner of the Partnership pursuant to the provisions of the Partnership Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) paying any distribution to the Partners under the Partnership Waterfall;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) paying any compensation for acting as Company Director and/or RPM Director;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) any amendment or termination of the RPM Management Agreement as set out in Section 5.3;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) other than as set out in Section 5.4, the declaration of any dividends or other shareholder distributions
in respect of RPM;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) any amendment or termination of the Partnership Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) the sale of the Entire Enterprise other than as set out in Section 4.17.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to applicable Law, Primary Shareholders have 10 Business Days to give or decline any approval
required under Subsection 4.6(a) from the date such approval is requested in writing. If a Primary Shareholder fails to respond within
such 10 Business Day time period, such Primary Shareholder shall have 10 Business Days to give or decline any approval required under
Subsection 4.6(a) from the date of a second written request for approval. If a Primary Shareholder fails to respond within such second
10 Business Day time period, such Primary Shareholder will be deemed to have approved such Fundamental Matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The approval required under Subsection 4.6(a) is in addition to any other approvals required by Law. In
the event other Shareholder approvals are required to make a decision about, take action on or implement any Fundamental Matter, each
Shareholder, to the extent that a Fundamental Matter has been approved in accordance with Subsection 4.6(a), will fully co-operate in
and vote in favour of, and will not dissent from, the proposed decision or action.

**4.7**  **<u>Company Shareholder Meetings.</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In addition to quorum requirements under the Act and the Articles, the quorum for a Company Shareholders'
meeting is all Primary Shareholders present in person or represented by proxy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If at the time scheduled for a Company Shareholders' meeting a quorum under Subsection 4.7(a) is not present,
then (i) the meeting shall be adjourned to the same time and place on the date which is at least two (2) Business Days, but no more than
five (5) Business Days, thereafter, (ii) notice of the adjourned meeting shall be given to each Company Shareholder; and (iii) at such
adjourned meeting the quorum shall be the Company Shareholders present in person or represented by proxy.

**4.8**  **<u>Management of the Company.</u>** 

Subject to Section 4.6 and Section 7.1, the Company Directors will manage, or supervise the management of, the business and affairs of the Company in accordance with this Agreement, the Act, the Notice of Articles and the Articles.

**4.9**  **<u>Management Transition.</u>** 

The parties acknowledge that the employment agreements between RMR and each Donald Thompson and Howard Katkov terminate on April 30, 2025 (and that such individuals will continue in such roles until such time in accordance with their respective employment agreements).

Commencing on or before January 1, 2025, the parties will engage in discussions regarding roles that Donald Thompson, Howard Katkov, David Evans and Christopher Evans (as well as other Persons) may assume with the Company and the Partnership's Subsidiaries in senior management and advisory positions commencing May 1, 2025. Any such roles (including terms of employment, compensation, duties, etc.) will be subject to approval of the Company Board.

**4.10**  **<u>Management Participation Pool.</u>** 

Upon approval of the Company Board, the Company may from time to time adopt and approve one or more management incentive plans, programs or grants (including, but not limited to, an option plan, profit participation plan, or other plan or grants) for incentivizing and/or rewarding management of the Company and the Partnership's Subsidiaries on such terms and conditions as the Company Board may approve from time to time.

**4.11**  **<u>Indemnification and D&O Insurance.</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company will indemnify any Company Director with respect to their activities on behalf of the Company
to the fullest extent permitted by the Act. Nothing in this Agreement limits the right of any such Person to claim indemnity apart from
the provisions of this Agreement, if such Person is entitled to such indemnity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company shall use its reasonable commercial efforts to maintain directors' and officers' liability
insurance coverage of at least $2,000,000 for the Company Directors, with such coverage to (i) be maintained throughout the term hereof,
covering past and present directors of the Company in respect of the Business, including the activities of Partnership's Subsidiaries,
(ii) cover unpaid wages, tax withholdings, vacation pay and other unpaid amounts for which the Company Directors could be liable, (iii)
not exclude bankruptcy and insolvency, and (iv) provide for automatic renewal upon the payment of premiums. The Company agrees to deliver
a copy of such insurance policies to the Company Directors and, upon request, to provide annual confirmation that such policies are in
good standing.

**4.12**  **<u>Capital Expenditures.</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The parties acknowledge and agree that
 it is the intention of the parties to expand the Business which will require significant
 capital expenditures. The specifics of each phase of any Business expansion will be set out
 in a specific capital expenditure plan approved by the Company Board. Notwithstanding the
 foregoing, any capital expenditures over $50,000.00 (individually or in the aggregate) where
 such expenditures are substantially or entirely funded from the proceeds of the E-1 Offering
 require unanimous approval of the Company Board (each, an "**Approved E-1 Capex Plan** "). Any reallocation of expenditure in an Approved E-1 Capex Plan over $10,000.00 (individually
 or in the aggregate) requires unanimous approval of the Company Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Funds required for capital expenditures and the Business operations generally, which cannot be paid out
of cash on hand of the Partnership and its Subsidiaries (including proceeds received by the Partnership from
Development Projects) will be to the greatest extend possible obtained by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) RMR making capital calls in respect of the E-1 Offering; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Partnership and/or its Subsidiaries
 borrowing from a Canadian Financial Institution, at market rates and pursuant to a loan facility
 (the "**Loan Facility**") that satisfies the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the obligations of the Partnership and/or its Subsidiaries arising in connection with the Loan Facility
shall be secured solely by a first-ranking lien over the property and assets of the Partnership and its Subsidiaries, and, for the avoidance
of doubt, will not require the Shareholders, Partners or any other Person to provide guarantees or other security in support of the borrower
obligations under the Loan Facility; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the Loan Facility shall be subject to customary terms and conditions, and shall be made available to the
Partnership and/or its Subsidiaries at interest rates that are considered "market rates", in each case consistent with similar
debt facilities provided by Canadian Financial Institutions in the Canadian market.

**4.13**  **<u>Working Capital.</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding any Approved E-1 Capex Plan or other approved capital expenditures, if the Business requires
working capital, the parties acknowledge and agree that funds will first be used to ensure the Operating Resort and the Business continues
as a going concern in priority to any capital expenditures provided that any such allocation of funds from the Approved E-1 Capex Plan
must be unanimously approved by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To the extent approved by the Company Board, the Partnership and/or its Subsidiaries may, from time to
time, enter into a loan agreement on commercially reasonable terms with one or more Shareholders and/or Partners to finance the capital
and operational expenses of the Business on terms agreed to by the Company Board. For greater certainty, no Shareholder or Partner shall
have any obligation to make any loans to the Partnership and/or its Subsidiaries with respect to the Business.

**4.14**  **<u>Development Projects.</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to Section 7.1, the parties acknowledge and agree that Development Projects will be conducted
as set forth in this Section 4.14.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) A draft list of Development Projects and associated land values is set forth in Schedule C.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) From time to time, either ERE or the Company Board may provide notice (the "**Development Project Notice**") to the other initiating the process for undertaking a new Development Project in accordance with the terms set out in
this Section 4.14.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) By that date that is 60 days following
 issuance of the Development Project Notice (the "**Development Proposal Date** ")
 by either ERE or the Company Board, ERE will submit to the Company Board and Management Committee,
 a good faith proposal for the Development Project substantially in accordance with the form
 attached hereto as Schedule D (the "**Development Project Proposal** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Unless otherwise approved by the Company Board, the parties acknowledge and agree that each Development
Project Proposal will follow the criteria set forth in the form attached hereto as Schedule D and the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Development Project will be structured as a limited partnership (the "**Development Project LP**") with investors participating as limited partners and, except to the extent modified herein (including, for greater certainty,
the form of Development Project Proposal set out in Schedule D), following substantially the same legal documentation (including form
and content of agreements) and closing conditions as The Glades (Eagle Run Townhomes Limited Partnership) and The Daly (The Crescent 2
Limited Partnership) projects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the applicable undeveloped parcel or parcels of the Development Lands associated with the Development
Project will be transferred to the Development Project LP by RMR (or other applicable Partnership Subsidiary) on a rollover basis (to
the extent available) for preferred equity at the value set out in the Development Project Proposal, which amount must be equal to or
greater than the floor valuation of the land values set out in Schedule C, and which value will be determined in consideration of achieving
an acceptable investment return for third party investors in the Development Project LP (which return is estimated to be a gross return
of 150% of committed capital in the Development Project and a 20% return on Project Costs). Unless otherwise approved unanimously by the
Company Board, any increase, per development parcel, between the floor values set out in Schedule C and the deemed value of the land rolled
into the Development Project LP will be reflected as preferred equity in the Development Project LP, split as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) 50% to RMR;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) 45% to ERE or a Permitted Transferee; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) 5% to HowardCo or a Permitted Transferee; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Unless otherwise approved unanimously by the Company Board,
the general partner (or equivalent entity) of the Development Project LP will be owned:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) 50% by RMR; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) 50% by ERE or a Permitted Transferee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Unless otherwise approved unanimously by the Company Board, or as set out in Subsections 4.14(k) and 4.14(m),
the fees in respect of each Development Project will be collected by ERE and distributed as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) development management fees:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) 80% to ERE or a Permitted Transferee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) 10% to RMR; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) 10% to HowardCo or a Permitted Transferee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) sales and marketing fees:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) 80% to ERE or a Permitted Transferee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) 10% to RMR; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) 10% to HowardCo or a Permitted Transferee; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) certain Development Project fees paid to ERE being responsible
for that scope of work and included in the development costs, including accounting fees, post construction fees, and construction oversight
fees, to be reviewed and approved by the Company Board on a project by project basis at the time of and in connection with approval of
the Development Project Proposal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Company Board will provide written notice to ERE within 30 days of receipt of the Development Project
Proposal whether the Company Board approves the Development Project Proposal or does not approve the Development Project Proposal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) If the Development Project Proposal is
 approved by the Company Board, ERE will use commercially reasonable efforts to raise the
 amount of investor capital that is required for the Development Project. If ERE is not able
 to obtain the required investor capital commitments within 90 days of the approval of the
 Development Project Proposal, with closing of the funding of such capital commitments to
 take place within six months of the approval of the Development Project Proposal (the "**ERE Funding Deadline** "), the Company Board may elect to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) not proceed with the Development Project by issuance of written notice thereof to ERE, in which case the
current Development Project Proposal will be deemed to be terminated and either ERE or the Company Board may re-initiate the process for
a new Development Project under this Section 4.14 by delivering a new Development Project Notice at any time following that date that
is 30 days following the written determination from the Company Board that it will not proceed with the Development Project; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) retain a third party broker to secure the required investor capital for the Development Project and/or
secure the required investor capital for the Development Project from investors in the Partnership (and their Affiliates, Associates and
other parties referred to the Partnership by them) without the requirement to use a third party broker, in which case, the initial management
fees for project startup payable to ERE in respect of the Development Project will be reasonably adjusted (as approved by the Company
Board) to reflect that ERE has not been able to raise such third party capital and if the Company is not able to secure the required investor
capital commitments within 90 days of the ERE Funding Deadline or secure the required investor capital contributions within the 90 day
period subsequent to obtaining the required investor capital commitments, the current Development Project Proposal will be deemed to be
terminated and:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any engagement with a third party broker will be terminated by the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) after a further 30 days have elapsed, either ERE or the Company Board may re-initiate the process for
a new Development Project under this Section 4.14 by delivering a new Development Project Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Upon receipt of confirmation that ERE or the third party broker have obtained the required investor capital
identified in the Development Project Proposal, RMR will transfer registered and beneficial interest in those portions of the Development
Lands that are identified in the Development Project Proposal to the Development Project LP. Costs associated for the transfer of the
applicable parcels in respect of the Development Project will be borne as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) subdivision, consulting and legal costs will be paid by the Development Project LP; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the costs of servicing the applicable parcels (including providing road, electrical, water and
 sewage access) will be the responsibility of RMR, and if the Company Board determines that RMR does not have sufficient liquidity to
 pay the costs of such servicing up front, then such costs will be paid by the Project LP in accordance with the terms set out in a
 Development Project Proposal approved by the Company Board (which may include provisions with respect to financing costs of the
 Development Project LP in connection with undertaking the works
and the applicability of any required servicing costs to a subsequent Development Project) and subsequently deducted from the payment
by the Project LP to RMR.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Subject to Subsection 4.14(k), if the Company Board does not approve the Development Project Proposal,
the current Development Project Proposal will be deemed to be terminated and either ERE or the Company Board may re-initiate the process
for a new Development Project under this Section 4.14 by delivering a new Development Project Notice on that date that is 30 days following
the decision of the Company Board to not approve the Development Project Proposal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) If ERE has delivered a Development Project Notice in accordance with this Section 4.14 and the Company
Board does not approve the Development Project Proposal, provided that the Development Project Proposal substantially complies with the
form attached hereto as Schedule D and the requirements of this Section 4.14, ERE, at its own cost, will have a period of 90 days from
the date that the Company Board provides notice that it does not approve the Development Project Proposal, obtain the required investor
capital commitments that are required for the Development Project. If:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) ERE provides notice to the Company Board within such 90 day period that it has secured the required investor
capital commitments for the Development Project, upon closing of the funding of such capital commitments, provided such closing takes
place within 90 days of such notice from ERE, RMR will transfer the registered and beneficial interest in those portions of the Development
Lands that are identified in the Development Project Proposal to the Development Project LP in accordance with the terms set out herein
(and, for greater certainty, the costs of such transfer (including subdivision, zoning, permitting and other costs) will be paid by the
Development Project LP) and the Development Project Proposal except that RMR and HowardCo will not be entitled to the development management
fee or the sales and marketing fee referenced under Subsection 4.14(f) above; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) ERE provides notice to the Company Board within such 90 day period that it has not obtained the required
investor capital commitments or the subsequent 90 day period that the capital contributions have not been made, the current Development
Project Proposal will be terminated upon notice of termination by the Company Board to ERE and either ERE or the Company Board may re-initiate
the process for a new Development Project under this Section 4.14 by delivering a new Development Project Notice on that date that is
thirty days following the issuance of notice that ERE has not secured the required investor capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) For greater certainty, once the applicable
 undeveloped parcel or parcels in respect of a Development Project have been transferred to
 a Development Project LP, the decision-making with respect to a specific Development Project
 will be undertaken by the general partner of the Development Project LP and the shareholders
 thereof as set out in the legal documentation governing such Development Project LP, which
 documentation will be in accordance with the Development Project Proposal and this Agreement.
 The parties acknowledge and agree that unless otherwise approved by ERE and the Company Board,
 the board of directors of the general partner of any Development Project LP will consist
 of one nominee of RMR and two nominees of ERE.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) ERE will be in default (a **"Development Progress Default")** under this Agreement if ERE does not submit a Development Project
 Proposal in accordance with the required specifications set out in this Section 4.14 on the
 later of the Development Proposal Date and that date that is ten (10) Business Days following
 the Company Board's issuance of a notice to ERE that it has not submitted the required Development
 Project Proposal following the Development Proposal Date. For greater certainty, there will
 be no Development Progress Default if the Company Board does not approve any Development
 Project Proposal that has been submitted in accordance with the required specifications set
 out in this Section 4.14 from time to time and a Development Progress Default will only be
 triggered in the event that ERE fails to submit a Development Project Proposal in accordance
 with the required specifications set out in this Section 4.14 within the timeframes set out
 in this Section 4.14.

**4.15 <u>Sale of Operating Resort.</u>**

Within five (5) years of the Effective Date, the Company will use commercially reasonable efforts, on behalf of the Partnership, to market and sell the Operating Resort at a price and on terms approved by the Company Board (including appointment of reputable broker / sales agent), provided that so long as Jeff Busby is alive, no sale of the Operating Resort may take place at a price less than $54,000,000.00 without the prior written consent of the JT Shareholder. The sale of the Operating Resort will be subject to the right of first offer in favour of the ERE Shareholder described in Section 4.18 below.

**4.16 <u>Sale of Undeveloped Development Lands.</u>**

Upon unanimous approval of the Company Board, the Company may from time to time, on behalf of the Partnership and/or its applicable Subsidiaries, sell one or more undeveloped parcels of the Development Lands, including a bulk sale of the Development Lands, subject to the following conditions, which conditions are subject to waiver or modification upon unanimous approval of the Company Board:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the right of first offer in favour of
 the ERE Shareholder described in Section 4.18 below;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the minimum sale price of will be the
 land values ascribed to the parcels set out in Schedule C, as adjusted upon unanimous approval
 of the Company Board to account for appreciation in land values since the Effective Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the net sales proceeds from the sale of the applicable parcels will
 be paid out as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) first, to RMR to the extent of the land
 values ascribed to the parcels set out in Schedule C; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) secondly, the remainder
 to be split:

(A) 50% to RMR;

(B) subject to Section 7.1, 45% to ERE or a Permitted Transferee; and

(C) 5% to HowardCo or a Permitted Transferee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the sales and marketing
 of the applicable parcels of the Development Lands will proceed as approved unanimously by
 the Company Board.

**4.17 <u>Sale of Entire Enterprise.</u>**

Notwithstanding Section 4.16, in the event that the Partnership (including RMR and the other Partnership Subsidiaries) does not have sufficient funds to continue operations and is unable to raise funds necessary for operations from investors, lenders or cash flow from operations, then upon approval of the Company Board, the Company may, on behalf of the Partnership and/or its applicable Subsidiaries, sell the Entire Enterprise at such price and upon such terms as the Company Board approves, subject to the right of first offer in favour of the ERE Shareholder described in Section 4.18 below. In the event of any sale of the Entire Enterprise pursuant to this Section 4.17, all net sales proceeds of such sale will be paid as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) 66<sup>2/3</sup>% of
 the net sales proceeds will be paid out as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) first, to RMR, $40,000,000.00, or such proportionate
 amount of $40,000,00.00 as determined by the Company Board based on the proportion of Development
 Lands remaining at the time of proposed sale pursuant to this Section 4.17 to the whole of
 Development Lands on the Effective Date of this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) secondly, the remainder of such 66<sup>2/3</sup>%
 of the net sales proceeds will be split:

(A) 50% to RMR;

(B) subject to Section 7.1, 45% to ERE or a Permitted Transferee; and

(C) 5% to HowardCo or a Permitted Transferee; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the remaining 33<sup>1/3</sup>%
 net sales proceeds will be paid to RMR,

with funds received by the RMR to be distributed to the Partners pursuant to the Partnership Agreement and the RMR shareholders pursuant to the RMR Shareholders' Agreement.

**4.18 <u>Ere Priority Offer</u>**

Before the Company offers to sell any of the Operating Resort, the undeveloped Development Lands or Entire Enterprise (each, an "**Offered Interest**") to any other Person, the Company will, on behalf of the Partnership and/or its applicable Subsidiaries, offer (the "**ERE Priority Offer**") to sell the Offered Interest to the ERE Shareholder on the terms and conditions established by the Company Board for the specific Offered Interest (the "**Offered Interest Price and Terms**") in accordance with the following process:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The ERE Shareholder shall have a period
 of 90 days from the date the ERE Priority Offer is delivered by the Company to the ERE Shareholder
 (the "**ERE Offer Period**") to provide written notice to the Company
 accepting the ERE Priority Offer. The ERE Priority Offer shall be extinguished if the ERE
 Shareholder does not provide written notice of acceptance of the ERE Priority Offer within
 the ERE Offer Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the ERE Priority Offer is accepted
 by the ERE Shareholder within the ERE Offer Period, then the Partnership and its applicable
 Subsidiaries shall sell and the ERE Shareholder shall purchase the Offered Interest upon
 the terms and conditions set out in the ERE Priority Offer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The closing of the transaction of purchase
 and sale pursuant to the ERE Priority Offer on the date which is 90 days after the acceptance
 of the ERE Priority (the "**Offered Interest Closing Date** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the event that ERE Shareholder does
 not accept the ERE Priority Offer within the ERE Offer Period or that the closing of the
 purchase of the Offered Interest by the ERE Shareholder does not take place on or before
 the Entire Closing Date, the Company may cause the Partnership and its applicable Subsidiaries
 to sell the Offered Interest to any Person, provided that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the sale of the Offered Interest may not
 take place on a price and/or terms more favourable to the purchaser that the Offered Interest
 Price and Terms; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if the closing of the purchase and sale
 of the Offered Interest pursuant to this Section 4.18 has not occurred with 180 days after
 the expiry of the ERE Offer Period or the lapsing of the Offered Interest Closing Date, as
 the case may be, the Company shall not, on behalf of the Partnership and/or its applicable
 Subsidiaries, offer to sell any Offered Interest to any Person without once again observing
 the right of first offer under this Section 4.18.

**4.19 <u>Day Lodge to Continue.</u>**

The parties acknowledge and agree that the Day Lodge at the base of Red Mountain Resort will continue to operate in the normal course of business and will not be torn down unless unanimously approved otherwise by the Company Board.

**4.20 <u>Termination of Company as General Partner of Partnership</u>**

To the extent any Shareholder, or any Affiliate or Associate of any Shareholder, is a limited partner of the Partnership, such Shareholder will not, and will cause any Affiliate or Associate to not, exercise any right under the Partnership Agreement or cast a vote of the limited partners under the Partnership Agreement so as to cause the Company to be removed as general partner of the Partnership.

**ARTICLE 5** 

**RED PROPERTY MANAGEMENT**

**5.1** **<u>RPM Board of Directors.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) RPM will have a maximum of five (5) individuals
 serving as RPM Directors on the RPM Board. Subject to Section 7.1 and Subsection 5.1(f),
 the JT Shareholder shall have the right to nominate two (2) individuals as RPM Directors,
 HowardCo shall have the right to nominate one (1) individual as an RPM Director and the ERE
 Shareholder shall have the right to nominate two (2) individuals as RPM Directors. As of
 the Effective Date, the JT Shareholder nominees as RPM Directors are Jeff Busby and Donald
 Thompson, the HowardCo nominee as RPM Director is Howard Katkov and the ERE Shareholder nominees
 as RPM Directors are David Evans and Christopher Evans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If a nominee RPM Director of a Shareholder
 resigns or is removed, for any reason, the vacancy will be filled by the election or appointment
 of a RPM Director nominated by such Shareholder, provided such Shareholder is still entitled
 to do so pursuant to the provisions of this Agreement. RPM Directors will not transact any
 business or exercise any of their powers or functions until such vacancy is filled, except
 to carry on the business of RPM in the ordinary course. If a replacement RPM Director is
 not elected or appointed within 60 calendar days because the Shareholder has failed to nominate
 a replacement, RPM Directors then in office will be entitled to transact business and exercise
 all of the powers and functions of RPM Directors. A decision or action of RPM Directors then
 in office is deemed to be a decision or action of RPM Directors of RPM.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If a Shareholder disposes of all of its
 RPM Shares as permitted under this Agreement (except to a Permitted Transferee), such disposing
 Shareholder's nominee RPM Director(s) shall either resign or be removed, unless the remaining
 Shareholders consent otherwise in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If a Shareholder becomes a Defaulting
 Shareholder, and for so long as a Shareholder is a Defaulting Shareholder (or, in the case
 of paragraph 7.1(a)(i), if a notice of material breach remains outstanding against a Shareholder
 and has not been rescinded, retracted or reversed), RPM Directors previously nominated by
 such Defaulting Shareholder shall either resign or be removed upon the written request of
 the other Shareholders being delivered to Defaulting Shareholder, and may not be re-nominated
 to become RPM Directors until the applicable Shareholder is no longer a Defaulting Shareholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Except as approved pursuant to Section
 4.6, no amount is payable by way of salary, bonus or otherwise to any RPM Director for acting
 as a director of RPM (excluding, for certainty, any salary, bonuses, benefits or other compensation,
 paid in cash or otherwise, paid or payable to any RPM Director in their capacity as an officer
 and/or employee of RPM). RPM Directors will be entitled to reimbursement for reasonable expenses
 incurred with respect to attending meetings of RPM Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Commencing May 1, 2025, the JT Shareholder
 shall have the option, exercisable in writing to RPM and the other Shareholders, to have
 an additional nominee RPM Director in respect of RPM Board and, if such option is exercised,
 HowardCo will no longer be entitled to a nominee RPM Director. If so required by the JT Shareholder
 in writing, RPM Director previously nominated by HowardCo shall either resign or be removed
 and if no such written request is provided, the Howard Co nominee as RPM Director will be
 deemed to henceforth continue as the JT Shareholder nominee. For greater certainty, RPM Board
 will remain the same size after the JT Shareholder has exercised the option provided for
 in this Subsection 5.1(f) as it was prior to the exercise of such option.

**5.2** **<u>RPM Board Meetings and Decisions.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any RPM Director may call a meeting of
 the RPM Board. At least 48 hours' prior written notice of any RPM Board meeting must be given
 unless all of RPM Directors are present or those who are absent waive notice. A RPM Director
 is not considered present at a meeting where that RPM Director attends the meeting for the
 express purpose of objecting to the transaction of any business on the grounds that the meeting
 is not lawfully called. All RPM Board meetings will be held on a Business Day between 9:00am
 and 5:00pm Rossland time unless all RPM Directors otherwise agree. RPM Directors may attend
 RPM Board meetings in person or by means of such telephone, electronic or other communications
 facilities as permit all participants participating in a meeting to communicate simultaneously
 and instantaneously.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The quorum for a meeting of RPM Directors
 is all RPM Directors serving on the RPM Board at any given time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If at the time scheduled for a meeting
 a quorum is not present, then (i) the meeting shall be adjourned to the same time and place
 on the date which is at least two (2) Business Days, but no more than five (5) Business Days,
 thereafter or such other time, place and/or date as determined by the unanimous approval
 of RPM Directors, (ii) notice
 of the adjourned meeting shall be given to each of RPM Directors; and (iii) at such adjourned
 meeting the quorum shall be at least three (3) RPM Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each of the Shareholders shall use its
 commercially reasonable efforts to cause its nominee RPM Directors to attend all meetings
 of the RPM Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Subject to applicable Law, unless otherwise
 expressly required in this Agreement, all decisions, approvals, determinations and consents
 of RPM Directors required by this Agreement will be decided, approved, determined or consented
 to by a simple majority of the votes cast at a RPM Board meeting or by written resolution
 signed by all of RPM Directors.

**5.3** **<u>Rpm Management Agreement.</u>**

Subject to Section 7.1, any amendment to or termination of the management agreement dated the Effective Date between ERE and RPM (the "**RPM Management Agreement**") requires approval by the Primary Shareholders as a Fundamental Matter pursuant to Section 4.6.

**5.4** **<u>Priority Dividend.</u>**

Unless approved otherwise by the Primary Shareholders as a Fundamental Matter pursuant to Section 4.6, RPM will declare and pay a dividend on the Class B shares of RPM held by RMR in the aggregate amount of $1,500,000.00 over a period of five years in equal $300,000.00 amounts per year, provided that if insufficient funds are available to pay a dividend in any given year, the shortfall will be carried over and added to the dividend payable to RMR in the subsequent year. For greater certainty, RPM dividends will be payable out of funds available for such purpose after payment of operating costs of RPM, such costs to include the management fee payable to ERE pursuant to the RPM Management Agreement.

**ARTICLE 6**

**CONFIDENTIALITY**

**6.1** **<u>Confidentiality.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the Shareholders acknowledges
 that all records, material and information (including any of the information described in
 this Article 6) pertaining to the Company, RPM, RMR and any other Partnership's other
 Subsidiaries and Affiliates (collectively, the "**Protected Parties**") are
 and will remain the exclusive property of the Protected Parties. For so long as the Protected
 Parties carry on the Business, each of the Shareholders will keep in the strictest confidence,
 not disclose and not use, without the consent of the other Shareholders, any non-public information
 pertaining to or concerning the Protected Parties including all budgets, forecasts, analyses,
 financial results, costs, margins, wages and salaries, bids and other business activities,
 all supplier and customer lists, all non-public intellectual property including trade secrets,
 trade-marks, technical expertise and know-how, documentation, including standard terms and
 agreements, and all other information not generally known outside the Protected Parties except
 to Persons through business dealings with the Protected Parties. However, no Shareholder
 will be obliged to keep in confidence or will incur any liability for disclosure of information
 (other than personal information) which is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) publicly available when it is received by
 or becomes known to the Shareholder or that subsequently becomes publicly available other
 than through a direct or indirect act or omission of the Shareholder (but only after it becomes
 publicly available);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) established by evidence to have been already
 known to the Shareholder at the time of its disclosure to the Shareholder and is not known
 by the Shareholder to be the subject of an obligation of confidence of any kind;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) independently developed by the Shareholder
 without any use of or reference to the confidential information of the Protected Parties
 as established by evidence that would be acceptable to a court of competent jurisdiction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) received by the Shareholder in good faith
 without an obligation of confidence of any kind from a third party who the Shareholder had
 no reason to believe was not lawfully in possession of such information free of any obligation
 of confidence of any kind, but only until the Shareholder subsequently comes to have reason
 to believe that such information was subject to an obligation of confidence of any kind when
 originally received;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) disclosed by a Shareholder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) if and to the extent required by a court
 of competent jurisdiction or other governmental or regulatory authority or otherwise as required
 by applicable Laws, provided that, unless prohibited by applicable Laws, the Shareholder
 must first give the Protected Parties an opportunity to oppose the disclosure or to seek
 a protective order protecting such confidential information prior to any such disclosure,
 and such disclosure complies with the terms of any such protective order obtained to which
 the Shareholder is subject;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) to its accountants, internal and external
 auditors, legal counsel, and other professional advisors if and to the extent that such Persons
 need to know such confidential information in order to provide the applicable professional
 advisory services relating to the Shareholder's business, provided that an express duty of
 confidence exists between the Shareholder and such Person; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) to its directors, officers, shareholders,
 employees, agents, contractors and other personnel (each, a "**Representative** "), if and to the extent that such Representative needs to know such confidential information
 in order to perform its respective obligations under this Agreement, provided that such Representative
 has entered into an agreement with the Shareholder that includes confidentiality obligations
 in respect of such confidential information or such Representative is otherwise subject to
 confidentiality obligations in respect of such confidential information that, in each case,
 are no less stringent than those contained in this Section 6.1, provided that any breach
 of such duty of confidence or confidentiality obligations by any such Representative that
 would be a breach of this Section 6.1 will be deemed to be a breach of this Section 6.1 by
 the Shareholder; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) required to be disclosed in any arbitration
 or legal proceeding under this Agreement or otherwise between the Shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If a Shareholder becomes aware of any
 loss of or unauthorized access to confidential information of the Protected Parties, the
 Shareholder will promptly notify the Company and provide any information or assistance reasonably
 required by the Company and the Protected Parties relating to such loss or unauthorized access,
 including performing investigations to determine the source of such loss or unauthorized
 access.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) At any time after the Shareholder ceases
 to be a Shareholder of the Company and RPM, the Shareholder will promptly return or destroy
 all confidential information of the Protected Parties in accordance with the Company's instructions.
 If the Company requests the destruction of any confidential information of the Protected
 Parties, then, subject to the following sentence, the Shareholder will complete the destruction
 requested and provide the Company with written confirmation of the actions taken within five
 Business Days of receipt of the Company's instructions. The Shareholder will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) protect the confidentiality of the confidential
 information of the Protected Parties during the destruction process; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) provide the Company with a certificate,
 in form and substance satisfactory to the Company, certifying which confidential information
 of the Protected Parties has been destroyed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding any
 provision to the contrary contained in this Section 6.1:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Shareholder may retain copies of any
 confidential information of the Protected Parties to the extent necessary to comply with
 applicable Laws; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Shareholder will not be required to
 destroy or modify any backup or archival media that may contain confidential information
 of the Protected Parties prior to the time such backup or archival media would be destroyed
 or reused in the ordinary course of business, provided that, in each case, any confidential
 information so retained will remain at all times subject to the obligations set forth in
 this Section 6.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Shareholders agree that the Protected
 Parties will be entitled to seek injunctive relief to prevent breaches of the provisions
 of Section 6.1 and to specifically enforce the provisions of Section 6.1 in addition to any
 other remedy to which the Protected Parties may be entitled at law or in equity.

**ARTICLE 7** 

**DEFAULTING SHAREHOLDER**

**7.1 <u>Defaulting Shareholder.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) For the purposes of this Agreement, a
 Shareholder will be a "**Defaulting Shareholder**" upon the occurrence of
 any of the following events (each, an "**Event of Default** "):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) such Shareholder has materially breached
 any provision of this Agreement and such breach remains unremedied for 20 calendar days following
 receipt of written notice of such breach from the Company or any other Shareholder not in
 breach of this Agreement (each, a "**Non-Defaulting Shareholder** "), and
 for so long as such breach remains unremedied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such Shareholder declares bankruptcy or
 commits an act of bankruptcy or a receiver or receiver-manager of such Shareholder's assets
 is appointed or such Shareholder makes an assignment for the benefit of its creditors or
 otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a Shareholder Transfers its Shares in
 contravention of this Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) in the case of the ERE Shareholder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) there has been a Development Progress
 Default; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) both of Christopher Evans and David Evans
 are dead and/or Disabled (the "**ERE Key Man Event** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) So long as a Shareholder
 is a Defaulting Shareholder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the requirement for unanimous approval of
 the Primary Shareholders set forth in Subsection 4.6(a) shall not include approval of such
 Defaulting Shareholder for purposes of determining if the requisite approval pursuant to
 Subsection 4.6(a) has been obtained; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such Defaulting Shareholder will have no
 right to appoint any Committee Members under Section 4.1 or nominate any Company Directors
 under Section 4.4 or RPM Directors under Section 5.1; provided, however, that if the ERE
 Shareholder is a Defaulting Shareholder as a result of the ERE Key Man Event:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the ERE Shareholder will have the right
 to nominate one individual as Company Director and RPM Director rather than two individuals;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) all references to unanimous approval or
 decision of the Company Board and/or RPM Board shall be changed to approval of 75% of the
 Directors of the Company Board and/or RPM Board, as the case may be, and the total number
 of nominees of the Company Board and RPM Board will be correspondingly reduced from five
 (5) to four (4); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) within five (5) years,
 the ERE Shareholder, JT Shareholder and HowardCo will re-evaluate and consider returning
 the number of Company Board and RPM Board nominees allotted to the ERE Shareholder from one
 individual to two individuals; and if so agreed in writing amongst these Shareholders, the
 ERE Shareholder will return to nominating two individuals to the Company Board and RPM Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the ERE Shareholder
 is a Defaulting Shareholder, during such time the ERE Shareholder is a Defaulting Shareholder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Development Projects may
 be proposed and managed by Persons other than ERE and the provisions of Section 4.14 will
 be inapplicable in respect of such Development Projects and at the commencement of any such
 Development Project, a third party appraiser approved by the Company Board will conduct an
 appraisal of the value of the undeveloped parcel or parcels of the Development Lands associated
 with the Development Project (the "**DP Valuation**") and any increase
 in value of the applicable parcels between the DP Valuation and the values set out in Schedule
 C will be payable upon completion of the applicable Development Project:

(A) 50% to RMR;

(B) 45% to ERE or a Permitted Transferee; and

(C) 5% to HowardCo or a Permitted Transferee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the provisions of Section
 4.15 will be inapplicable; provided that this paragraph 7.1(c)(ii) does not apply if the
 ERE Shareholder is a Defaulting Shareholder as a result of the ERE Key Man Event; and

(iii) the sale of the Entire Enterprise will be permitted in
 accordance with Section 4.17, without the requirement for the Partnership (including RMR
 and the other Partnership Subsidiaries) to not have sufficient funds to continue operations
 or be unable to raise funds necessary for operations from investors, lenders or cash flow
 from operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In addition to the remedies
 set forth above in this Section 7.1, in the event of an Event of Default, for so long as
 the Event of Default has not been remedied, each Non-Defaulting Shareholder may do any one
 or more of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) subject at all times to
 Article 9, pursue any remedy available to such Non-Defaulting Shareholder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) waive the Event of Default as it pertains
 to such Non-Defaulting Shareholder, except any waiver of a particular Event of Default shall
 not operate as a waiver of any subsequent or continuing Event of Default or a waiver of an
 Event of Default on behalf of any other party hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) In the event that a Development Progress
 Default occurs in respect of any two consecutive proposed Development Projects:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the sale of undeveloped Development Lands
 will be permitted and the provisions of Section 4.16 will be inapplicable, except that HowardCo
 or a Permitted Transferee will be entitled to 5% of the net sales proceeds from the sale
 of the applicable parcels after payment to RMR of the land values ascribed to the parcels
 set out in Schedule C; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the sale of Entire Enterprise will be permitted
 and the provisions of Section 4.17 will be inapplicable, except that HowardCo or a Permitted
 Transferee will be entitled to 5% of the net sales proceeds from the sale of the applicable
 parcels as set out in Section 4.17; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) provided that the JT Shareholder is not
 also a Defaulting Shareholder, the JT Shareholder may provide written notice (the "**Default Buy Notice**") to the ERE Shareholder of the JT Defaulting Shareholder's
 intention to purchase all of the ERE Shareholder's Shares in the Company and RPM (the
 "**Default Shares**") for an aggregate purchase price of $10.00. Upon the
 Default Buy Notice being delivered, the JT Shareholder will have the right and obligation
 to purchase the Default Shares, which purchase and sale shall be in accordance with the procedure
 set forth in Article 8. Completion of the sale and purchase of Default Shares shall take
 place within 30 calendar days of the date of Default Buy Notice or the date of receipt by
 the relevant parties of all other approvals and consents required or necessary under applicable
 Laws for the sale and purchase of the Default Shares, whichever is later.

**ARTICLE 8**

**CLOSING PROCEDURES**

**8.1 <u>Closing Procedures</u><u>.</u>**

Any Transfer of Shares (the "**Purchased Shares**") will be governed by this Article 8. Unless otherwise specified in this Agreement, the closing date (the "**Closing Date**") will be:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the date agreed between the Transferor
 of the Purchased Shares and Transferee of the Purchased Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the date specified elsewhere in this Agreement;
 or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) failing such agreement or specification
 in Subsection 8.1(a) or (b) above, 45 calendar days following the acceptance of an offer
 to Transfer the Purchased Shares.

**8.2 <u>Transferor's Obligations</u><u>.</u>**

On the Closing Date the Transferor will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Transfer to the Transferee the Purchased
 Shares and will deliver the required share certificate(s) duly endorsed for transfer into
 the Transferee's name; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) do all other things required in order
 to deliver good and marketable title of the Purchased Shares to the Transferee, free and
 clear of any claims, liens and encumbrances whatsoever, subject to the following rules:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if on the Closing Date the Purchased Shares
 are not free and clear of all claims, liens and encumbrances whatsoever, the Transferee may,
 without prejudice to any other rights which the Transferee may have, purchase the Purchased
 Shares subject to such claims, liens and encumbrances; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if the Transferee agrees to purchase the
 Purchased Shares subject to such claims, liens and encumbrances as permitted by clause 7.2(b)(i):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the Transferee will, on the Closing Date,
 assume all obligations and liabilities with respect to such claims, liens and encumbrances
 and the purchase price payable by the Transferee for the Purchased Shares will be satisfied,
 in whole or in part, as the case may be, by such assumption; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the amount so assumed will reduce the
 cash portion of the purchase price payable on the Closing Date.

**8.3 <u>Additional Obligations of Transferor</u><u>.</u>**

If the Transferor will have no further beneficial interest in any Shares after the completion of the Transfer, on the Closing Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if so requested by the remaining Shareholders,
 the Transferor will deliver to the Company a signed resignation of the Transferor's nominees
 from every directorship, office or employment with the Company and the Partnership's Subsidiaries
 without severance payment or any similar compensation and, subject to payment by the Company
 of all accrued compensation in the case of an officer or employee and the reimbursement of
 all reimbursable expenses in the case of a director, will deliver a signed copy from each
 such nominee of a mutual release between the Company and such nominee of any and all claims
 arising out of such directorship, office or employment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) deliver to the Company and the other Shareholders
 a mutual release by and of the Transferor of any and all claims between the Transferor and
 the Company, the Partnership's subsidiaries and the other Shareholders with respect to any
 matter or thing whatsoever, arising out of the Transferor's capacity as Shareholder of the
 Company or its subsidiaries, as the case may be; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Company, the applicable Partnership
 Subsidiaries and the other Shareholders will deliver to the Transferor and its nominees,
 a signed copy of the mutual releases referred to in Subsection 8.3(a) and (b), respectively.

**8.4 <u>Transferee's Obligations</u><u>.</u>**

On the Closing Date, if the Transferee is not already a Shareholder, the Transferee will deliver to the Company an agreement, in form satisfactory to the Company and the remaining Shareholder(s) pursuant to Subsection 2.1(c), binding the Transferee to the terms of this Agreement on the basis that the Transferee will succeed to and be entitled to all rights and will succeed to and be subject to all obligations of the Transferor hereunder. If necessary, the parties to this Agreement will execute an appropriate amendment to this Agreement (including, without limiting the generality of the foregoing and for greater certainty, the definitions of "JT Shareholder", "ERE Shareholder" and "Permitted Transferee") to reflect the Transferee as a party to this Agreement.

**8.5 <u>Transferor's Failure to Complete</u><u>.</u>**

If, on the Closing Date, the Transferor fails to complete the transaction of purchase and sale:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Transferee will have the right, if
 not in default under this Agreement, without prejudice to any other rights which it may have,
 upon payment of the purchase price to the Company in trust for the Transferor, to execute
 and deliver, on behalf of and in the name of the Transferor, such deeds, transfers, share
 certificates, resignations or other documents that may be necessary to complete the subject
 transaction and the Transferor hereby irrevocably constitutes and appoints the Transferee
 as the true and lawful attorney of the Transferor with the power to act for and in the name
 of the Transferor, with full power of substitution, to execute and deliver such documents,
 instruments or agreements, (including all transfers, share certificates, resignations and
 releases) and do all acts and things necessary to complete the subject transaction. This
 power of attorney is irrevocable, is coupled with an interest, has been given for valuable
 consideration (the receipt and adequacy of which is acknowledged) and survives, and does
 not terminate upon, the legal or mental incapacity, bankruptcy, dissolution, winding-up or
 insolvency of the Transferor. This power of attorney extends to and is binding upon the Transferor's
 successors and permitted assigns. This power of attorney supersedes any prior delegation
 of authority that conflicts with it; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Company is authorized and directed
 to receive the purchase price from the Transferee and thereupon to record the transfer of
 the Purchased Shares, to enter the name of the Transferee in the registers of the Company
 as the holder of the Purchased Shares, and cause to be issued to the Transferee share certificates
 for such Purchased Shares in the name of the Transferee. The Company will hold the purchase
 price received by it in trust on behalf of the Transferor and will not commingle the purchase
 price with the Company's assets, except that any interest accruing thereon will be for the
 account of the Company. The receipt by the Company of the purchase price will be a good discharge
 to the Transferee and, after the name of the Transferee has been entered in the registers
 of the Company as the holder of the Purchased Shares, the purchase and sale will be deemed
 completed and the Transferee will for all purposes own the Purchased Shares. Upon such registration,
 the Transferor will cease to have any right to or in respect of the Purchased Shares except
 the right to receive, without interest, the purchase price received by the Company upon surrender
 of any certificates that previously represented such Purchased Shares.

**ARTICLE 9<br> ARBITRATION**

**9.1 <u>Duty to Submit to Arbitration</u><u>.</u>**

All disputes arising out of or in connection with this Agreement, or in respect of any defined legal relationship associated therewith or derived therefrom, will be referred to and finally resolved by arbitration administered under the applicable rules of the Vancouver International Arbitration Centre. The language of the arbitration will be English.

**9.2 <u>Appointing Authority.</u><u> </u>**

The appointing authority will be the Vancouver International Arbitration Centre.

**9.3 <u>Governing Rules</u><u>.</u>**

The case will be administered by the Vancouver International Arbitration Centre pursuant to the *Arbitration Act* (British Columbia), in accordance with its Domestic Arbitration Rules in effect at the time of the arbitration.

**9.4 <u>Place of Arbitration</u><u>.</u>**

The place of arbitration will be Vancouver, British Columbia, Canada.

**9.5 <u>Costs.</u>**

The costs of the arbitration will be borne equally by the parties unless the arbitrator determines otherwise.

**9.6 <u>Circumstances Arbitration Does Not Apply</u><u>.</u>**

Section 9.1 does not apply (i) where this Agreement otherwise more specifically sets out a dispute resolution mechanism to be followed prior to arbitration, or (ii) to remedies for injunction or specific performance to enforce obligations under this Agreement for which damages are not an adequate remedy.

**ARTICLE 10<br> GENERAL**

**10.1 <u>Notices</u><u>.</u>**

Any notice or other writing required or permitted to be given hereunder or for the purposes hereof will be sufficiently given if delivered or sent by electronic mail to the party to whom it is given at:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if to the JT Shareholder at:

---

| | |
|:---|:---|
| 314 Loma Larga Drive, Solana Beach, California | 314 Loma Larga Drive, Solana Beach, California |
| Attention: | Jeff Busby |
| Email: | skibusby@gmail.com |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if to the ERE Shareholder at:

---

| | |
|:---|:---|
| Suite 1100 – 355 Burrard Street, Vancouver, British Columbia | Suite 1100 – 355 Burrard Street, Vancouver, British Columbia |
| Attention: | David Evans |
| E-mail: | dwevans25@gmail.com |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if to HowardCo at:

---

| | |
|:---|:---|
| 4670 Sun Valley Road, Del Mar, California | 4670 Sun Valley Road, Del Mar, California |
| Attention: | Howard Katkov |
| E-mail: | howard@redmountainventures.com |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) if to the Company,
 Company Board, RMR or RPM, with a copy to the JT Shareholder and the ERE Shareholder at the
 addresses set out in (a) above:

---

| | |
|:---|:---|
| Unit D - 1990 Columbia Avenue, Rossland, British Columbia | Unit D - 1990 Columbia Avenue, Rossland, British Columbia |
| Attention: | Chairman |
| E-mail: | howard@redmountainventures.com |

---

or at such other address as the party to whom such writing is to be given will have last notified to the party giving the same in the manner provided in this clause. Any notice delivered or sent by electronic mail to the party to whom it is addressed will be deemed to have been given and received on the Business Day next following the day it was delivered or electronically mailed, provided that the sender does not receive a delivery failure report.

**10.2 <u>Waivers</u><u>.</u>**

No waiver on behalf of any party of any breach of any of the covenants, conditions and provisions herein contained will be effective or binding upon such party unless the same will be expressed in writing and any waiver so expressed will not limit or affect such parties' rights with respect to any other future breach.

**10.3 <u>Entire Agreement</u><u>.</u>**

This Agreement and the Schedules appended hereto, constitute the entire agreement between the parties hereto with respect to all of the matters herein and therein, and supersedes all prior and contemporaneous understandings, agreements, representations and warranties, both written and oral, with respect to the subject matter herein and therein.

**10.4 <u>Further Assurances.</u>**

The parties will with reasonable diligence, do all such things, provide all such reasonable assurances and provide such further documents or instruments required by the other parties as may be reasonably necessary or desirable to give effect to the purpose of this Agreement.

**10.5 <u>Enurement</u><u>.</u>**

This Agreement will enure to the benefit of and be binding upon the parties hereto and their respective successors and permitted assigns.

**10.6 <u>Assignment</u><u>.</u>**

Except as expressly provided in this Agreement, this Agreement may not be assigned by any of the parties without prior written consent of all of the other parties.

**10.7 <u>Amendment</u><u>.</u>**

This Agreement may not be amended except by written agreement signed by all the parties.

**10.8 <u>Counterparts</u><u>.</u>**

This Agreement may be executed in one or more counterparts (including by facsimile, .pdf or other electronic method), each of which shall be deemed an original, and all of which, together, shall constitute one and the same instrument.

[*Remainder of page intentionally blank. Signature page follows.*]

 

IN WITNESS WHEREOF the parties hereto have duly executed this Agreement as of the date first above written.

---

| | | | |
|:---|:---|:---|:---|
| **JUICE TRUST DTD 1/24/96 TRUST 3** | **JUICE TRUST DTD 1/24/96 TRUST 3** | **ERE DEVELOPMENT INC.** | **ERE DEVELOPMENT INC.** |
| Per: | /s/ Jeff Busby | Per: | /s/ David Evans |
|  | Name: Jeff Busby |  | Name: David Evans |
|  | Title: Trustee |  | Title: Director |
| **RED MOUNTAIN VENTURES INC.** | **RED MOUNTAIN VENTURES INC.** | **RMR ACQUISITION CORP.** | **RMR ACQUISITION CORP.** |
| Per: | /s/ Howard Katkov | Per: | /s/ Howard Katkov |
|  | Name: Howard Katkov |  | Name: Howard Katkov |
|  | Title: Director |  | Title: Director |
| **RED PROPERTY MANAGEMENT LTD.** | **RED PROPERTY MANAGEMENT LTD.** | **RED MOUNTAIN VENTURES G.P. LTD.** | **RED MOUNTAIN VENTURES G.P. LTD.** |
| Per: | /s/ Howard Katkov | Per: | /s/ Howard Katkov |
|  | Name: Howard Katkov |  | Name: Howard Katkov |
|  | Title: Director |  | Title: Director |
| Per: | /s/ David Evans | Per: | /s/ David Evans |
|  | Name: David Evans |  | Name: David Evans |
|  | Title: Director |  | Title: Director |

---

Signature page to Shareholders' Agreement

**<u>SCHEDULE A</u>**

**CAPITAL OF THE COMPANY AND RPM**

**<u>Red Mountain Ventures G.P. Ltd.</u>**

<u>Authorized</u>

---

| | |
|:---|:---|
| 100000000 | Class A Common Non-Voting Shares |
| 100000000 | Class B Common Non-Voting Shares |
| Unlimited | Class E-2 Common Voting Shares |
| Unlimited | Class E-3 Common Voting Shares |
| Unlimited | Class E-4 Common Voting Shares |

---

<u>Issued</u>

---

| | | |
|:---|:---|:---|
| Juice Trust | 100 | Class E-2 Common Voting Shares |
| ERE | 100 | Class E-3 Common Voting Shares |
| HowardCo | 532000 | Class A Common Non-Voting Shares |
|  | 1750 | Class B Common Voting Shares |
|  | 100 | Class E-4 Common Voting Shares |

---

**<u>Red Property Management Ltd.</u>**

<u>Authorized</u>

---

| | |
|:---|:---|
| 1000 | Class A Shares |
| 1000 | Class B Shares |
| 1000 | Class C Shares |
| 1000 | Class D Shares |
| 1000 | Class E Shares |
| 1000 | Class F Shares |
| 1000 | Class G Shares |
| 1000 | Class H Shares |
| 1000 | Class I Shares |
| 1000 | Class J Shares |

---

<u>Issued</u>

---

| | | |
|:---|:---|:---|
| RMR | 100 | Class A Shares |
|  | 100 | Class B Shares |
| ERE | 100 | Class A Shares |
|  | 90 | Class C Shares |
| Howard Katkov | 10 | Class C Shares |

---

**<u>SCHEDULE B</u><br> LANDS**

---

| | | |
|:---|:---|:---|
| RMR LANDS <br> <u>Property description</u> | Assessment <br> <u>Roll Number</u> | <u>PID number</u> |
| DL 690 | 21-229-01748.000 | 014-646-595 |
| Plan X60 Subsidy lot 19 | 21-229-03005.000 | 014-031-892 |
| Parcel A Plan X60 Subsidy lot 27 | 21-229-03013.000 | 014-031-914 |
| Parcel A Plan X60 Subsidy lot 28 | 21-229-03014.000 | 012-040-134 |
| Lot 1 Plan 18912 Township 28 | 21-229-03018.000 | 016-168-852 |
| DL 644 SRs Northern Belle M/C | 21-229-03029.000 | n/a |
| DL 645 SRs of View M/C | 21-229-03030.000 | n/a |
| DL 921 SRs Cliff M/C | 21-229-03050.000 | 014-646-510 |
| DL 923 | 21-229-03051.000 | 016-372-522 |
| DL 924 SRs Consolidated St. Elmo M/C | 21-229-03052.000 | 014-646-561 |
| Lot 1 Plan 14633 Ski hill communications | 21-229-03062.400 | communications only |
| Lot 1 Plan 14633 DL 967/1045/1057/1347 | 21-229-03062.500 | 006-976-824 |
| Lot C Plan EPP130816 (Base Lodge) |  | 032-063-792 |
| DL 1295 (mid mountain lands) | 21-229-03090.000 | 014-031-876 |
| Lot B Plan EPP 130816 (was lot 11 prior to last fall's subdivision/boundary adjustment) | 21-229-03014.112 | 032-063-784 |
| Lot 8 NEP79845, TWP 28 | 21-229-03014.080 | 026-522-195 |
| Plan RW457 DL 8495 Granite chairlift | 21-229-03115.000 | 017-025-567/664 |

---

**<u>SCHEDULE C</u>**

**DEVELOPMENT PROJECT LAND VALUES**

**RED MOUNTAIN RESORT - Development Land**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **DEVELOPEMNT LOT** | **LAND VALUE<br> DEVELOPMENT LOT** | **Units** | **Development<br> Area** | **Units by<br> Area** | **Land Value<br> / Area** | **Land Value<br> / Unit** |
| 1 | Area 2 Crescent | 2000000 | 102 | Area 2 | 102 | 2000000 | 19608 |
| 2 | Area 2 The Daly | 3000000 | 94 | Area 2 | 94 | 3000000 | 31915 |
| 3 | Area 3 Condo AB | 3000000 | 59 | Area 3 | 59 | 3000000 | 50847 |
| 4 | Area 4 Shed ABC | 5040000 | 72 | Area 4 | 72 | 5040000 | 70000 |
| 5 | Area 6 Condo A | 1440000 | 24 | Area 6 | 60 | 3600000 | 60000 |
| 6 | Area 6 Condo B | 2160000 | 36 | Area 6 | 60 | 3600000 | 60000 |
| 7 | Area 8 Condo | 1600000 | 40 | Area 8 | 40 | 1600000 | 40000 |
| 8 | Area 9 Hotel A | 6000000 | 125 |  |  |  |  |
| 9 | Area 9 Condo B | 2400000 | 48 | Area 9 | 253 | 12400000 | 49012 |
| 10 | Area 9 Condo C | 1500000 | 30 |  |  |  |  |
| 11 | Area 9 Condo D | 2500000 | 50 |  |  |  |  |
| 12 | Area 19 Hotel A | 3000000 | 50 |  |  |  |  |
| 13 | Area 19 Condo B | 4300000 | 43 |  |  |  |  |
| 14 | Area 19 Condo C | 4300000 | 43 | Area 19 | 264 | 24400000 | 92424 |
| 15 | Area 19 Condo D | 4300000 | 43 |  |  |  |  |
| 16 | Area 19 Condo E | 4200000 | 42 |  |  |  |  |
| 17 | Area 19 Condo F | 4300000 | 43 |  |  |  |  |
|  |  | 55040000 | 944 |  | 944 | 55040000 |  |
|  | **SFD LOTS:** | Land |  |  |  |  |  |
| 18 | Remainder Caldera | included | TBD |  |  | included |  |
|  |  | Purchase Price from |  |  |  |  |  |
| 19 | Benchlands | Province | TBD |  |  |  |  |
| 20 | SF LAND MID | 8000000 | 94 |  | 94 | 8000000 |  |
|  | **TOTAL** | 63040000 | 1038 |  | 1038 | 63040000 |  |

---

**<u>SCHEDULE D</u>**

**FORM OF DEVELOPMENT PROJECT PROPOSAL**

See attached.

**Schedule D**

**Real Estate Development Term Sheet**

**RED MOUNTAIN RESORT**

FORM OF DEVELOPMENT PROJECT PROPOSAL

**TERM SHEET TEMPLATE: this form will be the basis of each Development Project Proposal. Each project will have its own unique characteristic and deal terms that are not contemplated below will be determined in accordance with project details and market conditions among other external factors.**

Date_____________, 20_.

ERE Development Inc. ("**ERE**") hereby provides to the board of directors (the "**Company Board**") of Red Mountain Ventures G.P. Ltd. (the "**Company**") the following project proposal for review and acceptance or rejection by the Company Board in accordance with Section 4.14 of the shareholders' agreement governing the Company (the "**RMVGP SHA**"). Capitalized terms not otherwise defined herein have the meaning given to them in the RMVGP SHA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** **Developer:** The developer
 of the Project will be a newly formed B.C. limited partnership (the "**Project LP** "), with the limited partnership agreement for the Project LP containing the material
 terms set out in Schedule A. The limited partners of the Project LP will be________________
 and ________________.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.** **Project Description:** The project (the "**Project**") will be substantially as described in
 the attached Schedule B.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** **Land Value:** The value of the lands to be rolled into the Project LP by RMR Acquisition Corp. ()"**RMR**") will be $______________ which amount is comprised of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. **Development Project Land Value:** $**______________,** being the Development Project land value ascribed to the lands comprising this Development
 Project in Schedule C to the RMVGP SHA; plus, if any;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. **Additional Land Value:** $**________,** being the difference between the Development Project Land Value in Schedule C to the
 RMVGP SHA and the Land Value for this Development Project.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.** **Pro Forma:** A preliminary pro-forma for the Project is attached as a part of the Project Description
 included as Schedule B. The anticipated returns for the Project set out in this pro-forma
 will be equal to 20% of Project Costs (as defined in the RMVGP SHA) and the Land Value will
 be adjusted (but not below the Development Project land value ascribed to the lands comprising
 this Development Project in Schedule C to the RMVGP SHA) to reflect such return.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.** **General Partner Ownership Structure:** RMR 50% and ERE 50%. The shareholder agreement for the general partner
 will contain the material terms set out in schedule B.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.** **Project LP Equity Structure:** The equity structure for the Project will be as set out in the attached
 Schedule C. The business principal of the equity requirements set out in the attached Schedule
 C will be to minimize the limited partner equity requirements while minimizing the risk to
 RMR. While there may be variations in the return, ERE will work to provide for a return to
 the limited partners equal to 150% of committed capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.** **Project Branding:** Red Mountain Homes will be the predominate
 brand for marketing purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.** **Capital Raise, Guarantees and Indemnities:** ERE will lead the capital raise for the Project and source the capital required
 to facilitate the Project and may or may not solicit a third-party capital markets broker
 in its sole determination, which cost will be borne by the Project LP. In either case, in
 the event that a third party is used, market fees will be paid which fees may be allocated
 between ERE and such third party provider as agreed between ERE and such third party provider.
 Project level guarantees and indemnities will be required for the Project and ERE will, as
 part of the capital raise, attempt to secure required indemnities. ERE will be required to
 provide indemnities and its understood and agreed that a fee will be payable for all indemnities.
 In addition, RMR may, subject to approval of the Company Board, pledge an unencumbered and
 subdivided lot as additional security for any future construction loan, which lot will earn
 a fee that will be market based in the range of 1.5%-3.0% annually on total exposure and
 its occurrence. The required Project level guarantees and indemnities will include, without
 limitation, Homeowner Protection insurance policy, environmental indemnity, Deposit Protection
 Insurance indemnity and senior construction financing guarantees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.** **Development Team:** The Project LP will engage the following
 teams in connection with the Project:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a. Architect:** _____________________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**i. Mechanical Engineer: _____________** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**ii. Structural Engineer: _____________** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**iii. Electrical Engineer:_____________** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**iv. Civil Engineer:______________** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b. General Contractor:_______________** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c. Sales Contractor:_________________** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**d. Marketing Contractor:__________________** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**e. Real Estate Agent:__________________**

If any of the Sales and Marketing Manager, the Development Manager or the Construction Manager are affiliates of ERE, RMR or any shareholder under the RMVGP SHA, the form of agreement will be attached as a schedule to this proposal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.** **Investor Benefit Package:** As
 part of the capital raise and as a separate line item and cost to the Project in support
 of the investor program, RMR and its subsidiaries will provide an investor benefits package
 which will include seasons tickets passes and other Red Mountain branded items, the amount
 of which benefits will be determined for each Project but will not exceed $_________ per
 Project.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.** **Commercial Component:** If
 the Project contains a commercial component, RMR (or an affiliate of RMR) will have the option
 to purchase or retain the commercial component of the project for "warm shell condition"
 at cost with no land being attributed to the costs. RMR will exercise such option to purchase
 within 3 months of the commencement of marketing of the Project. If RMR does not exercise
 the option, ERE (or an affiliate of ERE) will have the right to exercise the similar option
 for a period of 3 months following the date that RMR declines toe exercise the option. If
 ERE does not exercise the option, the commercial component of the Project will be sold to
 a third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.** **Fees:** The
 following fees will be payable by the Project LP in connection with the Project in accordance
 with the terms set out in the respective agreements where applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. **Development Management Fee:** Fees of 3.5% of Costs (as defined in the Development Management Agreement) and will be
 split 80% ERE / 10% Howard Katkov / 10% RMR. Fee to be calculated as a percentage of all
 project costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. **Sales & Marketing Fee:** 1.0%
 of Gross Revenue (as defined in the sales and marketing agreement) and will be split 80%
 ERE / 10% Howard Katkov / 10% RMR.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. **Guarantee Fee:** ERE to secure
 a guarantor as required for all indemnities. The fee for any guarantee will be market driven
 and determined on a deal by deal basis and as contemplated in Section 8 above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. **Additional Project Fees:** to
 be included in the budget and paid to the entity responsible for that scope of work and included
 in the Development Costs. Fees are budgeted to be as outlined below, but will be reviewed
 and increased to reflect inflation and increases in industry costs:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Accounting Fee of $45,000/ year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Post Construction Fee (homeowner care) of $1,250/unit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Construction Oversight Fee will be charged
 at $7,500 / month starting 6 months before construction and ending 3 months after construction.

ERE Development Inc.

**SCHEDULE A**

Major Decisions of the General Partner ("GP") of the Project LP will be subject to joint agreement between RMR and ERE, each acting reasonably and in good faith, and are generally outlined below (capitalized terms will be as defined in the partnership agreement governing the Project LP):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the authorization,
 creation, issuance, repurchase or redemption of any shares or other securities of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the transfer of
 any shares or other securities of the Company, except transfers specifically authorized in
 this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) amalgamating, merging or entering into
 an arrangement or other reorganization involving the Company or the continuance of the Company
 into any other jurisdiction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) paying or distributing amounts out of
 any stated capital account, reducing any stated capital account, distributing any surplus
 or earnings, or returning any capital;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) increasing or reducing the capitalization
 of the Company, by way of split, conversion, exchange of securities or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any decision which would result in the
 Company becoming a "reporting company" under the Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any matter which, pursuant to the Act,
 would require the passage of a special resolution of shareholders under the Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) any amendment to the Notice of Articles
 or Articles of the Company, including any change to the rights and restrictions attached
 to the Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (i) acknowledging the insolvency of the
 Company or the inability of the Company to pay its debts as they become due; (ii) making
 an assignment for the benefit of the creditors of the Company; (iii) appointing or allowing
 the appointment of any receiver, receiver-manager, trustee, liquidator or other Person acting
 in a similar capacity; (iv) instituting any proceeding seeking to have the Company adjudicated
 a bankrupt or insolvent; or (v) taking any action or instituting any proceeding for the purpose
 of, or leading to, the liquidation, dissolution, winding-up, reorganization, arrangement,
 adjustment, protection, relief or composition of the Company or its debts under any applicable
 law relating to bankruptcy, insolvency, reorganization or relief of debtors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) in respect
 of the Company, (i) commencing any action, suit or proceeding, (ii) compromising or settling
 any action, suit, proceeding, (iii) compromising or settling any material administrative
 proceeding or investigation, or (iv) submitting to binding arbitration, except pursuant to
 Article IX;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) declaring or paying any dividend or other
 distribution on or in respect of any Shares or other securities of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) other than any fees contemplated and set
 out in the Development Management Agreement, Marketing Management Agreement or Construction
 Management Agreement, paying any advance, salary, bonus, fees (including, but not limited
 to, consulting, service or management fees), incentive compensation or other amount, or granting
 any other benefits, to any director, former director, Shareholder, Affiliate or Associate
 of the Company, Affiliate or Associate of any Shareholder or any Person that the Company
 or a Shareholder is an Associate of, except in accordance with this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) the borrowing or lending of money, the
 granting of credit or the incurring of any guarantee or indemnity obligations by the Company,
 which approval will be provided by both parties in the event that the terms reflect the terms
 set out in any new Development Project Proposal;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) any grant of any security interest in
 the assets of the Company, which approval will be provided by both parties in the event that
 the terms reflect the terms set out in any new Development Project Proposal;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) any direct or indirect participation (whether
 by loan, guarantee, investment or other financial assistance, or by consulting, or otherwise
 providing professional assistance, or otherwise) by the Company in any business other than
 the Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) altering the size of the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) altering the quorum required for the transaction
 of business at meetings of the Board or the voting threshold acquired for approving business
 at meetings of the Board;

<u>Nominee Matters</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) the composition of the board of directors of the Nominee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) any directions to the Nominee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) any grant of any security interest in the assets of the Nominee;

<u>Limited Partnership Matters</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) the resignation or removal of the Company
 as the general partner of the Limited Partnership;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the Limited Partnership repurchasing,
 redeeming or acquiring any units or other securities of the Limited Partnership;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) increasing or reducing the capital structure
 of the Limited Partnership, by way of split, conversion, exchange of securities or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) the issuance of any additional limited
 partnership units (of any class or series) in the Limited Partnership;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) the transfer of any limited partner units
 or other securities of the Limited Partnership;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) making any cash or other
 capital calls to the partners of the Limited Partnership;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) the appointment,
 removal and/or replacement of the legal and accounting advisors of the Limited Partnership,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) approval of all
 accounting and tax treatment to be employed on behalf of the Limited Partnership;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) the borrowing or lending of money, the
 granting of credit or the incurring of any guarantee or indemnity obligations by the Limited
 Partnership, including but not limited to, the entering into of any construction financing,
 which approval will be provided by both parties in the event that the terms reflect the terms
 set out in any new Development Project Proposal;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) any grant of any security interest in
 the assets of the Limited Partnership, which approval will be provided by both parties in
 the event that the terms reflect the terms set out in any new Development Project Proposal;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) approving the financial statements of
 the Limited Partnership, which approval will be provided by both parties in the event that
 the terms reflect the terms set out in any new Development Project Proposal;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) (i) acknowledging the insolvency of the
 Limited Partnership or the inability of the Limited Partnership to pay its debts as they
 become due; (ii) making an assignment for the benefit of the creditors of the Limited Partnership;
 (iii) appointing or allowing the appointment of any receiver, receiver-manager, trustee,
 liquidator or other Person acting in a similar capacity; (iv) instituting any proceeding
 seeking to have the Limited Partnership adjudicated a bankrupt or insolvent; or (v) taking
 any action or instituting any proceeding for the purpose of, or leading to, the liquidation,
 dissolution, winding-up, reorganization, arrangement, adjustment, protection, relief or composition
 of the Limited Partnership or its debts under any applicable law relating to bankruptcy,
 insolvency, reorganization or relief of debtors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) in respect of the Limited Partnership,
 (i) commencing any action, suit or proceeding, (ii) compromising or settling any action,
 suit, proceeding, (iii) compromising or settling any material administrative proceeding or
 investigation, or (iv) submitting to binding arbitration

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) the taking or instituting of any proceedings
 for the reorganization, dissolution or winding up of the Limited Partnership;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any distributions under the Limited Partnership
 Agreement of any assets (including, for greater certainty, distributions of "Distributable
 Cash" as defined in the Limited Partnership Agreement) or property of the Limited Partnership,
 which approval will be provided by both parties in the event that the terms reflect the terms
 set out in any new Development Project Proposal;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) other than any fees contemplated and
 set out in the Development Management Agreement, Marketing and Sales Management Agreement
 or Construction Management Agreement, paying any advance, salary, bonus, fees (including,
 but not limited to, consulting, service or management fees), incentive compensation or other
 amount, or granting any other benefits, to any Shareholder, Affiliate or Associate of the
 Company, Affiliate or Associate of any Shareholder, or any Person that the Company or a Shareholder
 is an Associate of, or otherwise entering into any Affiliate Transaction (as defined in the
 Limited Partnership Agreement) except in accordance with this Agreement and/or the Limited
 Partnership Agreement, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) making or filing any material tax election,
 changing any material accounting principal or changing the fiscal period, in respect of the
 Limited Partnership;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll) any change to the business
 of the Limited Partnership;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm) any amendment to the Limited Partnership Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) the allocation of income or losses of
 the Limited Partnership, subject to the requirements of the Limited Partnership Agreement

<u>Project</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo) any amendment of the
 Project Management Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(pp) termination of the
 Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(qq) approval of the terms
 and conditions of a bulk sale of the Land or the Project.

**SCHEDULE B**

**PROJECT DESCRIPTION**

The Project Description to include:

1) Target density, unit mix, target unit areas and price ranges within the unit mix matrix.

2) Proposed site plan.

3) Architectural schematic massing.

4) Product description, including target market.

5) Pro-forma in substantially the form set out in the example attached as Appendix A to this Schedule B.

6) Project Schedule.

**APPENDIX A**

**FORM OF PRO FORMA**

**Real Estate Development** 

---

| | |
|:---|:---|
| **SUMMARY DETAILS** | Distribution Date: |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **PROJECT REVENUE** | | | | | |
|  |<br>**Phase 1** |<br>**Phase 2** |<br>**Retail** |<br>**Amenity** |<br>**TOTAL** |
| BSF | 1 |  |  |  | **1** |
| Effiiciency | 0.0% |  |  |  | **0.0%** |
| **RSF** | **-** | **-** | **-** | **-** | **-** |
| Residential Units |  |  |  |  |  |
| Parking Stalls |  |  |  |  |  |
| Average Unit Size (sf) |  |  |  |  |  |
| Sales Price / SF | $- | $- | $- | $- |  |
| Sales Value |  |  |  |  |  |
| Less: Incentives Allowance |  |  |  |  |  |
| **NET VALUE** | **-** | **-** | **-** | **-** | **-** |
| NET VALUE / DOOR | $- | $- | $- |  |  |
| NET VALUE / SSF | $- | $- | $- |  |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **PROJECT COSTS** |  | |  |  |
|  |  |  | **$/ BSF** |  |
| **LAND** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;RMV Purchase Price per Schedule |  | $ | $- |  |
| &nbsp;&nbsp;&nbsp;Land "Bump" Value |  | $ | $- |  |
| &nbsp;&nbsp;&nbsp;PTT |  | $ | $- |  |
| &nbsp;&nbsp;&nbsp;Appraisal Surplus |  | $ | $- |  |
| **SUBTOTAL** |  | **$** | $**-** |  |
| **HARD COSTS** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;General Contract & GC Fee |  | $ | $- |  |
| &nbsp;&nbsp;&nbsp;Offsites / Enviro |  | $ | $- |  |
| &nbsp;&nbsp;&nbsp;Other |  | $ | $- |  |
| &nbsp;&nbsp;&nbsp;Contingency |  | $ | $- |  |
| **SUBTOTAL** |  | **$** | $**-** |  |
| **SOFT COSTS** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Consulting Fees |  | $ | $- |  |
| &nbsp;&nbsp;&nbsp;Municipal Fees |  | $ | $- |  |
| &nbsp;&nbsp;&nbsp;Property Taxes / Insurance |  | $ | $- |  |
| &nbsp;&nbsp;&nbsp;DM Fee | 4.5% of Total Costs (less land) | $ | $- |  |
| &nbsp;&nbsp;&nbsp;Other Soft Costs |  | $ | $- |  |
| **SUBTOTAL** |  | **$** | $- |  |
| **MARKETING** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Marketing Costs |  | $ | $- |  |
| &nbsp;&nbsp;&nbsp;Sales Commissions |  | $ | $- |  |
| **SUBTOTAL** |  |  | $**-** | **0** |
| **FINANCE** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest |  |  | $- |  |
| &nbsp;&nbsp;&nbsp;Commitment Fees |  |  | $- |  |
| &nbsp;&nbsp;&nbsp;Other |  |  | $- |  |
| **SUBTOTAL** |  |  | $**-** | **0** |
| **TOTAL COSTS** |  |  | $- | - |
| Less: Appraisal Surplus |  |  | $- | - |
| **CASH COSTS** |  |  | $- | - |
| **TOTAL PROFIT** |  |  |  |  |
| **RETURN ON CASH COST**% |  |  |  |  |
| **Return on Equity (ROE)**% |  |  |  |  |
| **ROE Annualized**% |  |  |  |  |
| **Equity Multiple** |  |  |  | **0.00 x** |

---

---

| |
|:---|
| **CAPITAL STRUCTURE** |
| **SOURCES** |
| Equity% |
| Appraisal Surplus\*% |
| Sr Construction Debt \*\*% |
| **TOTAL%** |
| **AT CONSTRUCTION** |
| Bank equity required |
| Less: Land |
| Plus: Appraisal Surplus |
| **ADJ CASH EQUITY REQUIRED** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Project Level Participation** |  | **Total Project** | **GP** | **LP** |
| Guarantee Fee |  | 100.00% |  |  |
| 1. Equity |  | 100.00% |  |  |
| 2. Preferred Return | 0.0% | 100.00% |  |  |
| 3. Thereafter |  | 100.00% |  |  |
| **Distributions/Waterfall** |  | **Total Project** | **GP** | **LP Investor** |
| 1. Equity |  | $**-** | $- | $- |
| Guarantee Fee | 0.0% | $**-** | $- | $- |
| 2. Preferred Return | 0.0% | $**-** | $- | $- |
| 3. Thereafter |  | $**-** | $- | $- |
| **Total Profit** |  | $**-** | $- | $- |
| **Equity Multiple** |  |  |  |  |
| **ROE** |  |  |  |  |
| **Annualized ROE** |  |  |  |  |

---

---

| | | | |
|:---|:---|:---|:---|
| **GP Participation** | **Total GP** | **ERE** | **RMR** |
| Guarantee Fee | 0.00% | 0.00% | 0.00% |
| Sales Advisory Fee | 100.00% | 80.00% | 20.00% |
| Dev Management Fee | 100.00% | 80.00% | 20.00% |
| 2. Preferred Return | 100.00% | 50.00% | 50.00% |
| 3. Thereafter | 100.00% | 50.00% | 50.00% |
| **Summary** | **Total GP** | **ERE** | **RMR** |
| Guarantee Fee |  |  |  |
| Sales Advisory Fee |  |  |  |
| Development Management Fee |  |  |  |
| 1. RMV Land Value |  |  |  |
| 2. Land Bump |  |  |  |
| 3. Preferred Return |  |  |  |
| 4. Thereafter |  |  |  |
| **Total Fees** | $**-** | $**-** | $**-** |
| **Total Proceeds (including Land)** | $**-** | $**-** | $**-** |
| **Total** | $**-** | $**-** | $**-** |
| Equity Multiple |  |  |  |

---

**SCHEDULE C**

**PROJECT EQUITY STRUCTURE**

Estimated total equity requirement $________

1) GP Equity: $_________ of Land Equity

2) LP Equity Estimated to be $___________ equity and draws estimated below and finalized with project cashflow:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. First injection $________,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Second injection: $_______;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Third injection: <sup>~</sup>$4__________
 at start of construction – Final injection of equity will be confirmed once all financing
 and costs are final.

## Ex1K-6

**Exhibit 6.4**

## Ex1K-6

**Exhibit 6.5**

![](tm2611545d1_ex6-5img001.jpg)

**Company Legal Name: RED RESORT LIMITED PARTNERSHIP**

**Document Name: LF986-Advice of Loan Terms**

**Customer Tracking ID: B20093281901020**

**Transaction ID: MOD-301815351**

**ATTENTION:**

**Please do not remove or discard this sheet and ensure that it is returned with the attached document(s).**

![](tm2611545d1_ex6-5img002.jpg)

Further to our conversation, we are pleased to confirm your instructions for the following term loan renewal of the credit facility which is as subject to the terms of our Letter of Agreement: Latest re-instated LF985 (17/MAR/2025).

**Date:** April 04, 2025

**Borrower Name:** RED RESORT LIMITED PARTNERSHIP

**Loan Type:** Fixed Rate Term Loan

**Loan Advance Amount:** $3,116,517.08 CAD

**Requested Date of Advance:** April 04, 2025

**Funds to be Credited to:** 0755-6999-528

**Interest Rate:** 5.94% per annum

---

| | |
|:---|:---|
| **Selected Term:** 12 months | **Amortization:** 215 months |
| **Payment Frequency:** Monthly | **Payment Type:** Irregular payment – principal and interest December to May and Interest only June to November annually |
| **Payment Amount:** $28,856.64 | **First Payment Due:** April 30, 2025 |
| **Maturity Date:** March 31, 2026 |  |

---

Thank you for your business, and I look forward to continuing to work with you to meet your financial goals.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Accepted and agreed to this** | | **day of** | | **, 2025** |
|  | (Day) |  | (Month) | (Year) |

---

---

| | | |
|:---|:---|:---|
| ![](tm2611545d1_ex6-5img003.jpg) | <br> LF986 (Jan 2023) | <br> Page **1** of **2** |

---

![](tm2611545d1_ex6-5img004.jpg)

For renewals: <u>RED RESORT LIMITED PARTNERSHIP</u>

---

| | |
|:---|:---|
| Signature: | /s/ Dyne Parker |
| Name: | |
| Title: | |
| Signature: | /s/ Donald Thompson |
| Name: | |
| Title: | |

---

---

| | | |
|:---|:---|:---|
| ![](tm2611545d1_ex6-5img005.jpg) | <br> LF986 (Aug 2020) | <br> Page **2** of **2** |

---

![](tm2611545d1_ex6-5img006.jpg)

**Company Legal Name: RED RESORT LIMITED PARTNERSHIP**

**Document Name: LF986-Advice of Loan Terms**

**Customer Tracking ID: B20093281901020**

**Transaction ID: MOD-301626645**

**ATTENTION:**

**Please do not remove or discard this sheet and ensure that it is returned with the attached document(s).**

![](tm2611545d1_ex6-5img002.jpg)

Further to our conversation, we are pleased to confirm your instructions for the following term loan renewal of the credit facility which is as subject to the terms of our Letter of Agreement: original LF984 dated (22/09/2017)

**Date:** April 04, 2024

**Borrower Name:** RED RESORT LIMITED PARTNERSHIP

**Loan Type:** Fixed Rate Term Loan

**Loan Advance Amount:** $3,289,656.92 CAD

**Requested Date of Advance:** April 04, 2024

**Funds to be Credited to:** NA-FRTL Renewal

**Interest Rate:** 7.23% per annum

---

| | |
|:---|:---|
| **Selected Term:** 12 months | **Amortization:** 228 months |
| **Payment Frequency:** Monthly | **Payment Type:** Irregular (Principal plus interest payments Dec-May and interest only Jun-Nov annually) |
| **Payment Amount:** $28,856.64 | **First Payment Due:** April 30, 2024 |
| **Maturity Date:** March 31, 2025 |  |

---

**For renewals: [Please sign below].**

Thank you for your business, and I look forward to continuing to work with you to meet your financial goals.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Accepted and agreed to this** | **5** | **day of** | **April** | **, 2024** |
|  | (Day) |  | (Month) | (Year) |

---

---

| | | |
|:---|:---|:---|
| ![](tm2611545d1_ex6-5img007.jpg) | <br> LF986 (Jan 2023) | <br> Page **1** of **2** |

---

![](tm2611545d1_ex6-5img004.jpg)

---

| | |
|:---|:---|
| For renewals: <u>RED RESORT LIMITED PARTNERSHIP</u> | For renewals: <u>RED RESORT LIMITED PARTNERSHIP</u> |
| Signature: | /s/ Dyne Parker |
| Name: | Dyne Parker |
| Title: | Authorized Signatory |
| Signature: | /s/ Donald Thompson |
| Name: | Donald Thompson |
| Title: | Authorized Signatory |

---

---

| | | |
|:---|:---|:---|
| ![](tm2611545d1_ex6-5img007.jpg) | <br> LF986 (Aug 2020) | <br> Page **2** of **2** |

---

![](tm2611545d1_ex6-5img008.jpg)

**Company Legal Name: RED RESORT LIMITED PARTNERSHIP**

**Document Name: LF986-Advice of Loan Terms**

**Customer Tracking ID: B20093281901020**

**Transaction ID: MOD-301815363**

**ATTENTION:**

**Please do not remove or discard this sheet and ensure that it is returned with the attached document(s).**

![](tm2611545d1_ex6-5img002.jpg)

Further to our conversation, we are pleased to confirm your instructions for the following term loan renewal of the credit facility which is as subject to the terms of our Letter of Agreement: Latest re-instated LF985 (17/MAR/2025).

**Date:** April 04, 2025

**Borrower Name:** RED RESORT LIMITED PARTNERSHIP

**Loan Type:** Fixed Rate Term Loan

**Loan Advance Amount:** $511,958.44 CAD

**Requested Date of Advance:** April 04, 2025

**Funds to be Credited to:** 0755-6999-501

**Interest Rate:** 5.94% per annum

---

| | |
|:---|:---|
| **Selected Term:** 12 months | **Amortization:** 35 months |
| **Payment Frequency:** Monthly | **Payment Type:** Irregular payment – principal and interest December to May and Interest only June to November annually |
| **Payment Amount:** $28,442.14 | **First Payment Due:** April 30, 2025 |
| **Maturity Date:** March 31, 2026 |  |

---

Thank you for your business, and I look forward to continuing to work with you to meet your financial goals.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Accepted and agreed to this** | | **day of** | | **, 2025** |
|  | (Day) |  | (Month) | (Year) |

---

---

| | | |
|:---|:---|:---|
| ![](tm2611545d1_ex6-5img009.jpg) | <br> LF986 (Jan 2023) | <br> Page **1** of **2** |

---

![](tm2611545d1_ex6-5img004.jpg)

---

| | | |
|:---|:---|:---|
| For renewals: <u>RED RESORT LIMITED PARTNERSHIP</u> | | |
|  | Signature: | /s/ Dyne Parker |
|  | Name: | |
|  | Title: | |
|  | Signature: | /s/ Donald Thompson |
|  | Name: | |
|  | Title: | |

---

---

| | | |
|:---|:---|:---|
| ![](tm2611545d1_ex6-5img009.jpg) | <br> LF986 (Aug 2020) | <br> Page **2** of **2** |

---

![](tm2611545d1_ex6-5img010.jpg)

**Company Legal Name: RED RESORT LIMITED PARTNERSHIP**

**Document Name: LF986-Advice of Loan Terms**

**Customer Tracking ID: B20093281901020**

**Transaction ID: MOD-301624897**

**ATTENTION:**

**Please do not remove or discard this sheet and ensure that it is returned with the attached document(s).**

![](tm2611545d1_ex6-5img002.jpg)

Further to our conversation, we are pleased to confirm your instructions for the following term loan renewal of the credit facility which is as subject to the terms of our Letter of Agreement: original LF984 dated (22/09/2017)

**Date:** April 04, 2024

**Borrower Name:** RED RESORT LIMITED PARTNERSHIP

**Loan Type:** Fixed Rate Term Loan

**Loan Advance Amount:** $682,611.28 CAD

**Requested Date of Advance:** April 02, 2024

**Funds to be Credited to:** NA-FRTL Renewal

**Interest Rate:** 7.23% per annum

---

| | |
|:---|:---|
| **Selected Term:** 12 months | **Amortization:** 48 months |
| **Payment Frequency:** Monthly | **Payment Type:** Irregular (Principal plus interest payments Dec-May and interest only Jun-Nov annually) |
| **Payment Amount:** $28,442.14 | **First Payment Due:** April 30, 2024 |
| **Maturity Date:** March 31, 2025 |  |

---

**For renewals: [Please sign below].**

Thank you for your business, and I look forward to continuing to work with you to meet your financial goals.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Accepted and agreed to this** | **5** | **day of** | **April** | **, 2025** |
|  | (Day) |  | (Month) | (Year) |

---

---

| | | |
|:---|:---|:---|
| ![](tm2611545d1_ex6-5img011.jpg) | <br> LF986 (Jan 2023) | <br> Page **1** of **2** |

---

![](tm2611545d1_ex6-5img004.jpg)

---

| | |
|:---|:---|
| For renewals: <u>RED RESORT LIMITED PARTNERSHIP</u> | For renewals: <u>RED RESORT LIMITED PARTNERSHIP</u> |
| Signature: | /s/ Dyne Parker |
| Name: | Dyne Parker |
| Title: | Authorized Signatory |
| Signature: | /s/ Donald Thompson |
| Name: | Donald Thompson |
| Title: | Authorized Signatory |

---

---

| | | |
|:---|:---|:---|
| ![](tm2611545d1_ex6-5img011.jpg) | <br> LF986 (Aug 2020) | <br> Page **2** of **2** |

---

**Company Legal Name: RED RESORT LIMITED PARTNERSHIP**

**Document Name: LF985 - Letter of Agreement – Amendment & Restatement**

**Customer Tracking ID: B20093281901020**

**Application ID: 200458695**

**ATTENTION:**

**Please do not remove or discard this sheet and ensure that it is returned with the attached document(s).**

![](tm2611545d1_ex6-10img002.jpg)

![](tm2611545d1_ex6-10img003.jpg)

1498 BAY AVENUE,

TRAIL, BC V1R 4B1

March 17, 2025

RED RESORT LIMITED PARTNERSHIP

ROSSLAND, BRITISH COLUMBIA V0G 1Y0

Attention: HOWARD KATKOV, DONALD THOMPSON AND DYNE PARKER

**<u>LETTER OF AGREEMENT – AMENDMENT & RESTATEMENT</u>**

Bank of Montreal (together with BMO Bank N.A. and Bank of Montreal's other affiliates and their respective successors who are owed any present or future debts, liabilities or obligations by the Borrower, collectively "**BMO**") is pleased to provide this amended and restated Letter of Agreement with respect to the credit Facilities (each a "**Facility**" and collectively, the "**Facilities**") described herein. The letter (the "**Letter of Agreement**") amends and restates the existing Letter of Agreement dated March 5, 2024 (the "**Prior Letter**"). The Facilities are offered (or continue to be offered, as applicable) on the terms and conditions set out in this Letter of Agreement. The Schedules listed below and attached form part of this Letter of Agreement. Capitalised terms used but not defined have the meanings ascribed to them in Schedule E.

Notwithstanding any other provision of this Letter of Agreement or in any applicable agreements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the
 Facilities are uncommitted and any Advance under any Facility will be made at BMO's
 sole discretion. Any unutilized portion of any Facility may be cancelled by BMO at any time
 without prior notice; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) each
 Facility and all other amounts owing under or in connection with this Letter of Agreement
 are repayable on demand.

---

| | |
|:---|:---|
| **Borrower(s):** | **RED RESORT LIMITED PARTNERSHIP** |
|  | **(the "Borrower(s)")** |
| **Guarantor(s):** | **RED MOUNTAIN VENTURES LIMITED PARTNERSHIP** |
|  | RMR ACQUISITION CORP. |
|  | RED PROPERTY MANAGEMENT LTD. |
|  | LEROI ACQUISITION CORP. |
|  | **(the "Guarantor(s)")** |
| **Total Facility Limit:** | **The total approved amount of all facilities shall not exceed $6,770,903.16 at any time.** |

---

---

| | | |
|:---|:---|:---|
| ![](tm2611545d1_ex6-10img004.jpg) | LF985 (May 2024) | Page 1 of 34 |

---

**Your Product Summary**

**Facility/ Facilities:**

---

| | | |
|:---|:---|:---|
| **Facility No#** | **Product Type** | **Authorized Amount** |
| 1 | Non-Revolving Facility - Shared limit/Multi-product/Multi-draw | $540400.58 CAD |
| 2 | Non-Revolving Facility - Shared limit/Multi-product/Multi-draw | $3145373.72 CAD |
| 3 | Revolving Facility - Shared limit/Multi-product/Multi-draw | $1500000.00 CAD |
| 4 | Non-Revolving Facility - Shared limit/Multi-product/Multi-draw | $1485128.86 CAD |
| 5 | BMO Corporate MasterCard | $100000.00 CAD |

---

**Your Product Details**

**Non-Revolving Facility - Shared limit/Multi-product/Multi-draw**

---

| | |
|:---|:---|
| **Facility # 1 - Existing** | **Facility # 1 - Existing** |
| **Facility Authorization:** | &nbsp;&nbsp;$540,400.58 CAD |
| **Current Advanced Amount:** | &nbsp;&nbsp;$540,400.58 CAD |
| **Available Amount:** | &nbsp;&nbsp;$0.00 CAD |
| **Type of Loan:** | &nbsp;&nbsp;Asset and capital financing |
| **Purpose:** | &nbsp;&nbsp;For general capital requirements |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Current Advances:** | &nbsp;&nbsp;Product<br> type | &nbsp;&nbsp;Account # | &nbsp;&nbsp;Current <br> Balance | &nbsp;&nbsp;Payment <br> Amount | &nbsp;&nbsp;Payment<br> Type | &nbsp;&nbsp;Payment<br> Frequency | &nbsp;&nbsp;Interest<br> Rate | &nbsp;&nbsp;Maturity<br> Date |
| **Current Advances:** | &nbsp;&nbsp;Fixed Rate Term Loan | &nbsp;&nbsp;0755-6999-501 | &nbsp;&nbsp;$540400.58 | &nbsp;&nbsp;$28442.14 | &nbsp;&nbsp;Irregular Payment | &nbsp;&nbsp;Monthly | &nbsp;&nbsp;6.95% | &nbsp;&nbsp;31-MAR-2025 |

---

---

| | |
|:---|:---|
| **Maximum Amortization:** | &nbsp;&nbsp;39 months |
| **Advance Options** (each a "Loan" and collectively the "Loans") | &nbsp;&nbsp;**Additional Details** |
| **Demand Loan Non Revolving** | &nbsp;&nbsp;**Interest Rate:** Prime Rate plus 2.0% per annum. Interest is calculated monthly in arrears, and payable monthly. The Prime Rate in effect as of March 17, 2025 is 4.95%. |

---

---

| | | |
|:---|:---|:---|
| ![](tm2611545d1_ex6-10img004.jpg) | LF985 (May 2024) | Page 2 of 34 |

---

**Your Product Summary**

---

| | |
|:---|:---|
| | **Repayment Terms:** Repayable on demand, provided that until demand is made by BMO:<br> Equal principal payments to be collected separately on the last day of each month December through May, and interest to be collected monthly. The amount of the payments will be determined based on the Loan amount, amortization and the interest rate in effect at the time of the Advance, as applicable.<br> Prepayments of principal in whole or in part are permitted, without penalty<br> **Other:** |
| **Fixed Rate Term Loan** | **Type of Loan:** Closed Term Loan<br> **Interest Rate:** To be determined at time of Advance.<br> Notwithstanding the foregoing and unless otherwise prohibited by law, if the Loan is not paid in full with interest at the Maturity Date, the Loan shall bear interest at a rate per annum equal to the sum of 3% plus the Prime Rate, determined and accrued daily and compounded monthly, not in Advance, on the outstanding balance, from the Maturity Date and both before and after demand and both before and after judgment until actual payment in full.<br> **Repayment Terms:** On demand by BMO, provided that until BMO makes demand: Equal monthly principal payments to be collected December through May separately on the last day of each month, and interest monthly. The amount of the payments will be determined based on the Loan amount, payment frequency, amortization, and term.<br> OR<br> Blended monthly payments comprising principal and interest to be paid monthly in arrears, on the last day of each month December thourhg May and interest only June through November. The amount of the payment will be determined based on the Loan amount, term, amortization and the interest rate in effect at the time of the Advance.<br> The balance of the Loan then outstanding, together with all accrued and unpaid interest, shall be due and payable at the end of the term of the Loan.<br> **Prepayment Terms:** *Closed Term Loan Only*<br> Prepayment not permitted in whole or in part, prior to the maturity date.<br> *Prepayment Option Term Loan Only*<br> Prepayments of principal in whole or in part are permitted, without penalty.<br> **Maximum Term:** 1 year |

---

---

| | | |
|:---|:---|:---|
| ![](tm2611545d1_ex6-10img004.jpg) | LF985 (May 2024) | Page 3 of 34 |

---

**Your Product Summary**

---

| |
|:---|
| &nbsp;&nbsp; <br> **Maturity Date:** Without limiting BMO's right to demand, the last day of the month determined based on the term selected and the date of advance. At any time prior to the Maturity Date, provided that no Default has occurred and is continuing and that the Borrower is in compliance with the covenants in Schedule A, the Borrower may request in writing that this Agreement be renewed. Any renewal of this Agreement shall be (i) subject to the terms and conditions contained herein, and (ii) documented in writing on terms satisfactory to BMO and the Borrower.<br>**Other:** <br>|
| The aggregate of all outstanding Advances under this Facility shall at no time exceed the Facility Authorization for this Facility. |
| Each Advance under this Facility shall be a separate Loan, shall be non-revolving and shall be permanently reduced by any repayments or payments by the Borrower. |
| The Borrower shall give to BMO 5 Business Days notice with respect to any request for a Loan under this Facility. |

---

**Non-Revolving Facility - Shared limit/Multi-product/Multi-draw**

---

| | |
|:---|:---|
| **Facility #2 - Existing** | **Facility #2 - Existing** |
| **Facility Authorization** | &nbsp;&nbsp;$3,145,373.72 CAD |
| **Current Advanced Amount** | &nbsp;&nbsp;$3,145,373.72 CAD |
| **Available Amount** | &nbsp;&nbsp;$0.00 CAD |
| **Type of Loan** | &nbsp;&nbsp;Asset and capital financing |
| **Purpose** | &nbsp;&nbsp;Consolidation of debts |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Current Advances:** | &nbsp;&nbsp;Product<br> type | &nbsp;&nbsp;Account # | &nbsp;&nbsp;Current<br> Balance | &nbsp;&nbsp;Payment<br> Amount | &nbsp;&nbsp;Payment<br> Type | &nbsp;&nbsp;Payment<br> Frequency | &nbsp;&nbsp;Interest<br> Rate | &nbsp;&nbsp;Maturity<br> Date |
| **Current Advances:** | &nbsp;&nbsp;Fixed Rate Term Loan | &nbsp;&nbsp;0755-6999-528 | &nbsp;&nbsp;$3145373.72 | &nbsp;&nbsp;$28856.64 | &nbsp;&nbsp;Irregular Payment | &nbsp;&nbsp;Monthly | &nbsp;&nbsp;6.95% | &nbsp;&nbsp;31-MAR-2025 |

---

---

| | |
|:---|:---|
| **Maximum Amortization** | &nbsp;&nbsp;219 months |
| **Advance Options** (each a "Loan" and collectively the "Loans") | &nbsp;&nbsp;**Additional Details** |

---

---

| | | |
|:---|:---|:---|
| ![](tm2611545d1_ex6-10img004.jpg) | LF985 (May 2024) | Page 4 of 34 |

---

**Your Product Summary**

---

| | |
|:---|:---|
| **Demand Loan Non Revolving** | **Interest Rate:** Prime Rate plus 2% per annum. Interest is calculated monthly in arrears, and payable monthly. The Prime Rate in effect as of March 17, 2025 is 4.95%.<br> **Repayment Terms:** Repayable on demand, provided that until demand is made by BMO:<br> Equal principal payments to be collected separately on the last day of each month December through May, and interest to be collected monthly. The amount of the payments will be determined based on the Loan amount, amortization and the interest rate in effect at the time of the Advance, as applicable.<br> Prepayments of principal in whole or in part are permitted, without penalty<br> **Other:** |
| **Fixed Rate Term Loan** | **Type of Loan:** Closed Term Loan<br> **Interest Rate:** To be determined at time of Advance.<br> Notwithstanding the foregoing and unless otherwise prohibited by law, if the Loan is not paid in full with interest at the Maturity Date, the Loan shall bear interest at a rate per annum equal to the sum of 3% plus the Prime Rate, determined and accrued daily and compounded monthly, not in Advance, on the outstanding balance, from the Maturity Date and both before and after demand and both before and after judgment until actual payment in full.<br> **Repayment Terms:** On demand by BMO, provided that until BMO makes demand: Equal monthly principal payments to be collected December through May separately on the last day of each month, and interest monthly. The amount of the payments will be determined based on the Loan amount, payment frequency, amortization, and term.<br> OR<br> Blended monthly payments comprising principal and interest to be paid monthly in arrears, on the last day of each month December thourhg May and interest only June through November. The amount of the payment will be determined based on the Loan amount, term, amortization and the interest rate in effect at the time of the Advance.<br> The balance of the Loan then outstanding, together with all accrued and unpaid interest, shall be due and payable at the end of the term of the Loan.<br> **Prepayment Terms:** *Closed Term Loan Only* |

---

---

| | | |
|:---|:---|:---|
| ![](tm2611545d1_ex6-10img004.jpg) | LF985 (May 2024) | Page 5 of 34 |

---

**Your Product Summary**

---

| |
|:---|
| &nbsp;&nbsp; Prepayment not permitted in whole or in part, prior to the maturity date.<br> **Maximum Term:** 1 year<br> **Maturity Date:** Without limiting BMO's right to demand, the last day of the month determined based on the term selected and the date of advance. At any time prior to the Maturity Date, provided that no Default has occurred and is continuing and that the Borrower is in compliance with the covenants in Schedule A, the Borrower may request in writing that this Agreement be renewed. Any renewal of this Agreement shall be (i) subject to the terms and conditions contained herein, and (ii) documented in writing on terms satisfactory to BMO and the Borrower.<br> **Other:**<br>|
| The aggregate of all outstanding Advances under this Facility shall at no time exceed the Facility Authorization for this Facility. |
| Each Advance under this Facility shall be a separate Loan, shall be non-revolving and shall be permanently reduced by any repayments or payments by the Borrower. |
| The Borrower shall give to BMO 5 Business Days notice with respect to any request for a Loan under this Facility. |

---

**Revolving Facility - Shared limit/Multi-product/Multi-draw**

---

| | |
|:---|:---|
| **Facility # 3 - Existing** | **Facility # 3 - Existing** |
| **Facility Authorization:** | &nbsp;&nbsp;$1,500,000.00 CAD *(Decreasing limt from $2,152,500 CAD to $1,500,000 CAD)* |
| **Current Advanced Amount:** | &nbsp;&nbsp;$1,500,000.00 CAD |
| **Available Amount:** | &nbsp;&nbsp;$0.00 CAD |
| **Type of Loan:** | &nbsp;&nbsp;Operating Facility |
| **Purpose:** | &nbsp;&nbsp;For general operating requirements. |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Current Advances:** | &nbsp;&nbsp;Product <br> type | &nbsp;&nbsp;Account # | &nbsp;&nbsp;Current<br> Balance | &nbsp;&nbsp;Payment<br> Amount | &nbsp;&nbsp;Payment<br> Type | &nbsp;&nbsp;Payment<br> Frequency | &nbsp;&nbsp;Interest<br> Rate | &nbsp;&nbsp;Maturity<br> Date |
| **Current Advances:** | &nbsp;&nbsp;Overdraft Lending Product - CDN or USD | &nbsp;&nbsp;0755-1026-807 | &nbsp;&nbsp;($717610.78) | &nbsp;&nbsp;$0.00 | &nbsp;&nbsp;N/A | &nbsp;&nbsp;Monthly | &nbsp;&nbsp;6.45% | &nbsp;&nbsp;N/A |

---

---

| | | |
|:---|:---|:---|
| ![](tm2611545d1_ex6-10img004.jpg) | LF985 (May 2024) | Page 6 of 34 |

---

**Your Product Summary**

---

| | |
|:---|:---|
| **Advance Options** (each a "Loan" and collectively the "Loans") | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Additional Details:**<br>Seasonal Bulge to be set up with ODL limit of 1.5MM from June 1st to Nov 30th annually, to match business seasonality. Limit is to go back to 1MM Dec. 1st of every year.<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Jan 1 to June 30 : ODL limit $1,000M<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· July 1 to Dec 31 : ODL limit $1,500M <br>|
| **Operating Demand Loan** | **Interest Rate:** Prime Rate plus 1.5% per annum. Interest is calculated monthly in arrears, and payable on the last day of each month. The Prime Rate in effect as of March 17, 2025 is 4.95%.<br> BMO is experiencing a technical issue that causes overdraft advances under this Facility to be charged interest at the Overdraft Rate (currently 21% per annum) rather than the per annum interest rate applicable to the Facility described above. This issue will be corrected by the BMO within 10 Business Days of the start of the second month following the date of this Letter of Agreement. The BMO will credit to the Borrower any amounts overpaid as a result of the issue, together with interest on such amounts at the prevailing Bank of Canada rate per annum payable at the end of the first month following the date of this Letter of Agreement. Once corrected, the issue is not anticipated to reoccur. Any overdraft advances that exceed the Facility Authorization are excluded from the foregoing and will be charged the Overdraft Rate.<br> **Facility Fee:** $500 per month. This is the fee for the loan and does not include other account fees. Refer to our Better Banking Guide for other applicable fees.<br> **Repayment Terms:** Repayable on demand<br> **Other Costs:** BMO is not obliged to permit the Loan to exceed the Cap amount.<br> If the Loans exceed the Cap amount, the excess will bear interest at the Overdraft Rate, which is currently 21% per annum. BMO shall also be entitled to charge the Borrower a fee of 1% calculated on the amount of excess over the Cap amount or $100, whichever is greater and a $5 overdraft handling charge per item that creates or increases the excess. |

---

---

| |
|:---|
| The aggregate of all outstanding Advances under this Facility shall at no time exceed the Facility Authorization for this Facility. |
| Each Advance under this Facility shall be a separate Loan. |
| The Borrower shall give to BMO 5 Business Days notice with respect to any request for a Loan under this Facility or request to change the Cap amount of an Operating Demand Loan under this Facility. |
| The Borrower is permitted four account limit changes per month and a charge of $150/ change will apply for additional limit changes. |

---

---

| | | |
|:---|:---|:---|
| ![](tm2611545d1_ex6-10img004.jpg) | LF985 (May 2024) | Page 7 of 34 |

---

**Your Product Summary**

**Non-Revolving Facility - Shared limit/Multi-product/Multi-draw**

---

| | |
|:---|:---|
| **Facility # 4 - Existing** | **Facility # 4 - Existing** |
| **Facility Authorization:** | $1,485,128.86 CAD |
| **Current Advanced Amount:** | $1,485,128.86 CAD |
| **Available Amount:** | $0.00 CAD |
| **Type of Loan:** | Asset and capital financing |
| **Purpose:** | For general capital requirements |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Current Advances:** | &nbsp;&nbsp;Product <br> type | &nbsp;&nbsp;Account # | &nbsp;&nbsp;Current<br> Balance | &nbsp;&nbsp;Payment<br> Amount | &nbsp;&nbsp;Payment<br> Type | &nbsp;&nbsp;Payment<br> Frequency | &nbsp;&nbsp;Interest<br> Rate | &nbsp;&nbsp;Maturity<br> Date |
| **Current Advances:** | &nbsp;&nbsp;Demand Loan Non Revolving | &nbsp;&nbsp;0755-6999-296 | &nbsp;&nbsp;$1485128.86 | &nbsp;&nbsp;$0.00 | &nbsp;&nbsp;Irregular Payment | &nbsp;&nbsp;Monthly | &nbsp;&nbsp;6.7% | &nbsp;&nbsp;N/A |

---

---

| | |
|:---|:---|
| **Maximum Amortization:** | 114 months |
| **Advance Options** (each a "Loan" and collectively the "Loans") | **Additional Details** |
| **Demand Loan Non Revolving** | **Interest Rate:** Prime Rate plus 1.75% per annum. Interest is calculated monthly in arrears, and payable monthly. The Prime Rate in effect as of March 17, 2025 is 4.95%.<br> **Repayment Terms:** Repayable on demand, provided that until demand is made by BMO:<br> OR<br> Equal principal payments to be collected separately on the last day of each month December through May, and interest to be collected monthly. The amount of the payments will be determined based on the Loan amount, amortization and the interest rate in effect at the time of the Advance, as applicable<br> Prepayments of principal in whole or in part are permitted, without penalty<br> **Other:**<br>|

---

---

| | | |
|:---|:---|:---|
| ![](tm2611545d1_ex6-10img004.jpg) | LF985 (May 2024) | Page 8 of 34 |

---

**Your Product Summary**

---

| | |
|:---|:---|
| **Fixed Rate Term Loan** | **Type of Loan:** Closed Term Loan<br> **Interest Rate:** To be determined at time of Advance.<br> Notwithstanding the foregoing and unless otherwise prohibited by law, if the Loan is not paid in full with interest at the Maturity Date, the Loan shall bear interest at a rate per annum equal to the sum of 3% plus the Prime Rate, determined and accrued daily and compounded monthly, not in Advance, on the outstanding balance, from the Maturity Date and both before and after demand and both before and after judgment until actual payment in full.<br> **Repayment Terms:** On demand by BMO, provided that until BMO makes demand: Equal monthly principal payments to be collected December through May separately on the last day of each month, and interest monthly. The amount of the payments will be determined based on the Loan amount, payment frequency, amortization, and term.<br> OR<br> Blended monthly payments comprising principal and interest to be paid monthly in arrears, on the last day of each month December thourhg May and interest only June through November. The amount of the payment will be determined based on the Loan amount, term, amortization and the interest rate in effect at the time of the Advance.<br> The balance of the Loan then outstanding, together with all accrued and unpaid interest, shall be due and payable at the end of the term of the Loan.<br> **Prepayment Terms:** *Closed Term Loan Only*<br> Prepayment not permitted in whole or in part, prior to the maturity date.<br> **Maximum Term: 1** year<br> **Maturity Date:** Without limiting BMO's right to demand, the last day of the month determined based on the term selected and the date of advance. At any time prior to the Maturity Date, provided that no Default has occurred and is continuing and that the Borrower is in compliance with the covenants in Schedule A, the Borrower may request in writing that this Agreement be renewed. Any renewal of this Agreement shall be (i) subject to the terms and conditions contained herein, and (ii) documented in writing on terms satisfactory to BMO and the Borrower.<br> **Other:**<br>|

---

---

| |
|:---|
| The aggregate of all outstanding Advances under this Facility shall at no time exceed the Facility Authorization for this Facility. |
| Each Advance under this Facility shall be a separate Loan, shall be non-revolving and shall be permanently reduced by any repayments or payments by the Borrower. |
| The Borrower shall give to BMO 5 Business Days notice with respect to any request for a Loan under this Facility. |

---

---

| | | |
|:---|:---|:---|
| ![](tm2611545d1_ex6-10img004.jpg) | LF985 (May 2024) | Page 9 of 34 |

---

**Your Product Summary**

**BMO Corpora** **te MasterCard**

---

| | |
|:---|:---|
| **Facility # 5 - New** | **Facility # 5 - New** |
| **Facility Authorization:** | &nbsp;&nbsp;$100,000.00 CAD *(Increasing limit from $50,000.00 CAD to $100,000.00 CAD)* |
| **Type of Loan:** | &nbsp;&nbsp;Corporate MasterCard<sup>Â®\*</sup> |
| **Purpose:** | &nbsp;&nbsp;Operating Financing |
| **Interest Rate:** | &nbsp;&nbsp;As determined by Corporate MasterCard Agreement. |
| **Repayments:** | &nbsp;&nbsp;As determined by Corporate MasterCard Agreement. |
| **Facility Fee:** | &nbsp;&nbsp;As determined by Corporate MasterCard Agreement. |
| <sup>Â®\*</sup> MasterCard is a registered trademark of MasterCard International Incorporated. Used under license. | <sup>Â®\*</sup> MasterCard is a registered trademark of MasterCard International Incorporated. Used under license. |

---

---

| | | |
|:---|:---|:---|
| ![](tm2611545d1_ex6-10img004.jpg) | LF985 (May 2024) | Page 10 of 34 |

---

**Terms and Conditions**

**Conditions Precedent to Advances:**

The Facility(ies) may only be made available in BMO's discretion and will, in any event, require of the conditions set out below has to be completed to BMO's satisfaction.

**Security:**

All present and future debts, liabilities and obligations of the Borrower under the Facilities owed to Bank of Montreal, BMO Bank N.A. and Bank of Montreal's other affiliates and their respective successors will be secured by the following documents, instruments, agreements and other assurances (collectively, the "**Security**"), which shall be delivered to BMO prior to any Advance of funds, in form and substance acceptable to BMO and its solicitors, acting reasonably:

**Security Held:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Insurance
 on a "Fire and Extended Coverage "or"All Risks" basis must be arranged
 (with satisfactory evidence thereof delivered to BMO) satisfactory to BMO for the full insurable
 or replacement value with loss payable to BMO. The policy is to contain the Standard Mortgage
 Clause. A copy of the policy is to be provided

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. $7,000,000.00
 Corporate guarantee from RED MOUNTAIN VENTURES LIMITED PARTNERSHIP, LEROI ACQUISITION CORP.,
 RMR ACQUISITION CORP., RED PROPERTY MANAGEMENT LTD.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. $3,005,000.00
 Corporate guarantee from RED MOUNTAIN VENTURES LIMITED PARTNERSHIP, LEROI ACQUISITION CORP.,
 RMR ACQUISITION CORP., RED PROPERTY MANAGEMENT LTD.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Registered
 General Security Agreement ("GSA")/Moveable Hypothec ("Hypothec")
 providing BMO with a security interest/hypothec over all present and after-acquired personal/moveable
 property of the Borrower with a First ranking.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Registered
 General Security Agreement ("GSA")/Moveable Hypothec ("Hypothec")
 providing BMO with a security interest/hypothec over all presend and after-acquired personal/moveable
 property of RED MOUNTAIN VENTURES LIMITED PARTNERSHIP with a First ranking.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Registered
 General Security Agreement ("GSA")/Moveable Hypothec ("Hypothec")
 providing BMO with a security interest/hypothec over all presend and after-acquired personal/moveable
 property of LEROI ACQUISITION CORP. with a First ranking.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Registered
 General Security Agreement ("GSA")/Moveable Hypothec ("Hypothec")
 providing BMO with a security interest/hypothec over all presend and after-acquired personal/moveable
 property of RMR ACQUISITION CORP. with a First ranking.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Registered
 General Security Agreement ("GSA")/Moveable Hypothec ("Hypothec")
 providing BMO with a security interest/hypothec over all presend and after-acquired personal/moveable
 property of RED PROPERTY MANAGEMENT LTD. with a First ranking.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Registered
 -ranking All Indebtedness Mortgage in the amount of $7,000,000.00 registered over 11 PID
 #'s. 028-280-253/ 006 976 824 / 012 040 134 / 014 031 892 / 014 646 510 / 014 646 561 / 014
 646 595 / 026 522 225 / 014 031 876 / 014 031 914 / 016 168 852 with the municipal address
 of Red Mountain Road, Rossland, BC, (the "Mortgaged Property") with appropriate
 enabling resolutions and Documentation and Assignment of Rents over Red Mountain Road, Rossland,
 BC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. Subrogation
 agreement signed by RMR Acquisition Corp. Subrogating the specific amount of $15,000,000
 CAD against intercompany loan advances to Red Resort Limited Partnership.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. Environmental
 Review and Compliance Certificate of each PID outlined above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. Solicitor's
 Letter of Opinion confirming Environmental Review and Compliance Certificate provided over
 subject project in March 2018 when registed
mortgage charge CA6689765/6 was established.

---

| | | |
|:---|:---|:---|
| ![](tm2611545d1_ex6-10img004.jpg) | LF985 (May 2024) | Page 11 of 34 |

---

**Terms and Conditions**

**Security to be Released :**

**Partial Security Release** : release of **0.34 Acres** from PID 012 040 134, Red Mountain Road, Rossland, BC.

Legally described as Parcel A, Plan NEPX60, Sublot 28, Township 28, Kootenay Land District, (see 21298I) Exc (1) PT Lying S of a line Parallel to & 5 Chains Distant from Sly Bndy & W of a line parallel to & 20 Chains Distract FR ELY BNDY & (2) PL 5201 5552 6874 NEP 79845 NEP88.

Any other documents, instruments or agreements as may be required by BMO, acting reasonably to the extent permitted by law, and despite anything to the contrary in any particular Security document: (a) all present and future debts, liabilities and obligations of the Borrower to Bank of Montreal, BMO Bank N.A. and Bank of Montreal's other affiliates and their successors under the Facilities and all indemnity obligations owed by Bank of Montreal to any of its affiliates related to the Facilities will be secured by the Security, and (b) Bank of Montreal will hold all Security as agent for itself and for its affiliates who are owed any present or future debts, liabilities or obligations in connection with any Facility.

**Covenants**

As long as any Advance remains outstanding under or in connection with this Letter of Agreement, or so long as any commitment under this Letter of Agreement remains in effect, the Borrower and any Guarantor will perform and comply with the covenants set out in Schedule A.

**Financial Covenants:**

In addition, the Borrower and each Guarantor, as applicable, will perform and comply with the following financial covenants, based on financial statements of the Borrower or applicable Guarantor:

---

| | | | |
|:---|:---|:---|:---|
| **Financial Covenant** | **Description** | **Requirement** | **Frequency** |
| Other Testing | Provision for full clean up min once a year - the borrower shall ensure that the ODL facility is fully repaid to zero at least once during each fiscal year<br>Full clean up of ODL facility on an annual basis - ODL balance reduced to 0 at least once per fiscal year<br>| Equal To 0.00 | Annually |
| Debt service coverage ratio | Net Income + Interest + Amortization / CPLTD + Interest + Non Discretionary Dividends. <br>| Greater Than or Equal To 1.25 | Annually |

---

---

| | | |
|:---|:---|:---|
| ![](tm2611545d1_ex6-10img004.jpg) | LF985 (May 2024) | Page 12 of 34 |

---

**Terms and Conditions**

**Additional Covenants:**

In addition, the Borrower and each Guarantor, as applicable, will perform and comply with the following covenants:

&nbsp;&nbsp;&nbsp;&nbsp;1. The Borrower
 will not, without BMO's prior written consent, participate in any retrofit project or energy
 or water efficiency project affecting the Mortgaged Property which would have the effect
 of creating a lien, hypothec or other interest (including, but without limitation, a local
 improvement charge or similar interest) in the Mortgaged Property ranking, or potentially
 ranking, in priority to or pari passu with the interest of BMO in the Mortgaged Property,
 whether or not such project is sponsored or endorsed by a municipal or other government,
 governmental organization or utility.

**Reporting Requirements:**

---

| | |
|:---|:---|
| **Annual** | April 30th Annual Notice to Reader year-end financial statement with T5013 (partnership financial return) to be provided within 120 days of fiscal year-end for Red Resort Limited Partnership. Notice of Assessment is not applicable for a partnership.<br>April 30th Annual Notice to Reader year-end financial statement with notice of assessment & T2 to be provided within 120 days of fiscal year-end for the corporate guarantors:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Red Mountain Ventures Limited Partnership<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· RMR Acquisition Corp<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Leroi Acquisition Corp<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Red Property Management Ltd.<br>Within 120 days of fiscal year-end a 2 year projected capital expenditure budget (annual investor report) to be provided for Red Resort Limited Partnership.<br>Such other information as lender may reasonably request from time to time.<br>|
| **Other** |  |

---

A $100 per month fee will be applied for non compliance with reporting requirements. The application of this fee does not waive the Default condition.

Prompt notification of management letters, Default notices, Litigation, and any other material events

Satisfactory evidence that all Taxes (including, without limitation, GST, HST, sales tax, withholdings, etc.) have been paid to date

**Representations and Warranties:**

The Borrower and each Guarantor, as applicable, makes the representations and warranties set out in Schedule B. All representations and warranties of the Borrower and any Guarantor, in addition to any representation or warranty provided in any document executed in connection with a Facility or any Security, shall be true and correct on the date of this Letter of Agreement and on the date of any Advance under a Facility.

**Noteless Advances:**

The Borrower acknowledges that the actual recording of the amount of any Advance or repayment thereof under the Facilities, and interest, fees and other amounts due in connection with the Facilities, in an account of the Borrower maintained by BMO, shall constitute prima facie evidence of the Borrower's indebtedness and liability from time to time under the Facilities; provided that the obligation of the Borrower to pay or repay any indebtedness and liability in accordance with the terms and conditions of the Facilities set out in this Letter of Agreement shall not be affected by the failure of BMO to make such recording. The Borrower also hereby acknowledges being indebted to BMO for principal amounts shown as outstanding from time to time in BMO's account records, and all accrued and unpaid interest in respect thereto, which principal and interest the Borrower hereby undertakes to pay to BMO in accordance with the terms and conditions applicable to the Facilities as set out in this Letter of Agreement.

---

| | | |
|:---|:---|:---|
| ![](tm2611545d1_ex6-10img004.jpg) | LF985 (May 2024) | Page 13 of 34 |

---

**Terms and Conditions**

**Fees:**

All costs and expense incurred by BMO in connection with this Letter of Agreement and the Facilities (including without limitation all legal, appraisal, consulting, and registration fees), and the enforcement of the Security are for the account of the Borrower.

A one-time fee ("Fee") of $1,000 is payable by the Borrower to BMO upon acceptance of this Letter of Agreement. This fee is deemed to be earned by BMO upon acceptance of this Letter of Agreement, to compensate for time, effort and expense incurred by BMO in authorizing these Facilities.

Annual credit renewal fees are payable to BMO each year. At the date of this letter, such fees are $3,750. Each year, the amount of such annual credit renewal fees will be the same as the prior year unless BMO provides prior written notice that such annual credit renewal fees are changing from the prior year. If BMO provides such notice, then the annual credit renewal fees for that year and each subsequent year will be as described by BMO until and unless BMO provides prior written notice that such annual credit renewal fees are changing.

All fees payable under this Letter of Agreement shall be paid to BMO on the dates due, in immediately available funds. Fees paid shall not be refundable except in the case of manifest error in the calculation of any fee payment.

If the total Advances exceed the Facility Authorization, the excess will bear interest at the Overdraft Rate, which is currently 21.0% per annum. BMO shall also be entitled to charge the Borrower a fee of $100 each time an excess is created.

If the Borrower requests or requires any amendment to this agreement or any other Loan Document, BMO shall be entitled to an amendment fee of at least $100 per amendment, in addition to all other fees, costs and charges payable by the Borrower.

**Cancellation**

The cancellation period is 3 business days. The cancellation period is the period in which the borrower can close the new loan(s) established in this agreement. BMO will provide a notice acknowledging the cancellation and outlining any amounts and expenses owed to BMO and any amount that BMO will return to the Borrower in relation to the use of the Loan. The Borrower's cancellation right for a loan or line of credit is in addition to any repayment rights under this agreement. The Borrower has no cancellation right for a credit card.

**Banking Services:**

The Borrower shall maintain its Bank Accounts, solely with the BMO. Borrower acknowledges that the pricing (including interest, fees and charges) contained in this Letter of Agreement is contingent on the Borrower maintaining all of its operating accounts with BMO. If the Borrower does not do so, BMO may, at any time, in its sole discretion and without any requirement to obtain the agreement of, or provide prior notice to the Borrower, increase such pricing.

**Treasury & Payment Solutions:**

BMO will provide Non-Credit and treasury & payment solutions to the Borrower. A Treasury & Payment Specialist will contact the Borrower to implement BMO's On-Line Banking for Business platform (OLBB) and discuss additional treasury & payment features such as Electronic Funds Transfer (EFT), Wire Payments, BMO DepositEdge® and Moneris® Payment Processing Solutions. BMO's objective is to provide a package of services that are tailored to meet both the current and future needs of the Borrower in a cost efficient operating environment.

---

| | | |
|:---|:---|:---|
| ![](tm2611545d1_ex6-10img004.jpg) | LF985 (May 2024) | Page 14 of 34 |

---

**Terms and Conditions**

**Commercial Loan Insurance Plan:**

**You understand that unless you submit an Application for Commercial Loan Insurance Plan ("Application"), and it has been approved by Canada Life as the insurer, you will not be covered under the Commercial Loan Insurance Plan for any facilities under this Letter of Agreement and would be ineligible to submit a claim should you undergo an insurable event.**

**Counterparts; Electronic Transmissions:**

This agreement may be executed in any number of counterparts with the same effect as if all parties hereto had all signed the same document. Any counterpart of this Agreement may be executed and circulated by facsimile, PDF or other electronic means and any counterpart executed and circulated in such a manner shall be deemed to be an original counterpart of this Agreement. All counterparts shall be construed together and shall constitute one and the same original agreement.

**Governing Law:**

British Columbia and the federal Laws of Canada applicable therein.

**Schedules:**

The following Schedules are attached to and form part of this letter of agreement: Schedule A – Covenants

Schedule B – Representations and Warranties

Schedule C – Additional Conditions Precedent to Advances

Schedule D – Additional Terms

Schedule E – Definitions

**BMO's Legal Counsel:** N/A

---

| | | |
|:---|:---|:---|
| ![](tm2611545d1_ex6-10img004.jpg) | LF985 (May 2024) | Page 15 of 34 |

---

**Agreement and Consent**

This Letter of Agreement amends and restates, without novation, the Prior Letter, as of March 17, 2025[, without prejudice to the effect of the terms of the Prior Letter or to any actions taken under or pursuant to the Prior Letter prior to such date. The entry into effect of this Letter of Agreement shall not be deemed to waive or limit any of BMO's rights in respect of any Event of Default then existing under the Prior Letter or any Event of Default under this Letter of Agreement which exists because of matters occurring prior to such effective date, whether or not known to BMO.

Notwithstanding anything in the Security to the contrary, all Security granted to BMO shall, to the extent permitted by law, be held by BMO as agent for itself and its affiliates who are at any time owed any debts, liabilities or obligations under or in connection with the Facilities or the Letter of Agreement. All such obligations shall rank pari passu and shall be ratably secured by all Security.

The Borrower and each Guarantor acknowledges, confirms, and agrees that:

&nbsp;&nbsp;&nbsp;&nbsp;1. nothing
 in this Letter of Agreement shall constitute, evidence, or result in the repayment, satisfaction,
 release or novation of all or any part of the obligations under the Prior Letter. However,
 should this Agreement be construed as such, BMO hereby expressly reserves all of the security
 granted to it under the Prior Letter.

&nbsp;&nbsp;&nbsp;&nbsp;2. all Security
 and guarantees granted by it continues in full force and effect as legal, valid and binding
 obligations, enforceable against it in accordance with its terms, and guarantees or secures
 payment and performance by it of all present and future debts, liabilities and obligations
 owed to the Bank and its affiliates under or in connection with the Letter of Agreement;
 and

&nbsp;&nbsp;&nbsp;&nbsp;3. the Security
 and guarantees to which it is a party are all ratified and confirmed.

In accepting this agreement you acknowledge that if, in the opinion of BMO, a material adverse change in risk occurs including, without limitation, any material adverse change in the financial condition, business, property or prospects of the Borrower or any Guarantor, the rights and remedies of BMO, or the ability of the Borrower or any Guarantor to perform its Obligations to BMO, any obligation to Advance some or all of the above Facilities may be withdrawn or cancelled.

Please indicate your acceptance of the terms and conditions hereof by signing and returning one copy of this Letter of Agreement (and making payment of the above noted fee, if applicable) to BMO no later than [April 15, 2025]. If your acceptance of this Letter of Agreement is not received by BMO by that date, BMO shall have no obligation to proceed with any of the Facilities.

---

| | |
|:---|:---|
| Yours truly, | Yours truly, |
| BANK OF MONTREAL | BANK OF MONTREAL |
| By: | /s/ Todd Schneider |
| Name: | TODD SCHNEIDER |
| Title: | Senior Relationship Manager |
|  | [250 328 9484] |

---

**Accepted and agreed to this _____ day of _________________, 2024**

(Day) (Month) (Year)

---

| | | |
|:---|:---|:---|
| ![](tm2611545d1_ex6-10img004.jpg) | LF985 (May 2024) | Page 16 of 34 |

---

**Agreement and Consent**

---

| | | | |
|:---|:---|:---|:---|
| **BORROWER(S)** | **BORROWER(S)** |  |  |
| **RED RESORT LIMITED PARTNERSHIP** | **RED RESORT LIMITED PARTNERSHIP** |  |  |
| Signature: | /s/ Dyne Parker | Signature: | /s/ Donald Thompson |
| Name: | | Name: | |
| Title: | | Title: | |

---

---

| | | | |
|:---|:---|:---|:---|
| **GUARANTOR(S)** | **GUARANTOR(S)** |  |  |
| **RED MOUNTAIN VENTURES LIMITED PARTNERSHIP** | **RED MOUNTAIN VENTURES LIMITED PARTNERSHIP** |  |  |
| Signature: | /s/ Dyne Parker | Signature: | /s/ Donald Thompson |
| Name: | | Name: | |
| Title: | | Title: | |

---

---

| | | | |
|:---|:---|:---|:---|
| **RMR ACQUISITION CORP.** | **RMR ACQUISITION CORP.** |  |  |
| Signature: | /s/ Dyne Parker | Signature: | /s/ Donald Thompson |
| Name: | | Name: | |
| Title: | | Title: | |

---

---

| | | | |
|:---|:---|:---|:---|
| **RED PROPERTY MANAGEMENT LTD.** | **RED PROPERTY MANAGEMENT LTD.** |  |  |
| Signature: | /s/ Dyne Parker | Signature: | /s/ Donald Thompson |
| Name: | | Name: | |
| Title: | | Title: | |

---

---

| | | |
|:---|:---|:---|
| ![](tm2611545d1_ex6-10img004.jpg) | LF985 (May 2024) | Page 17 of 34 |

---

**Agreement and Consent**

---

| | | | |
|:---|:---|:---|:---|
| **LEROI ACQUISITION CORP.** | **LEROI ACQUISITION CORP.** |  |  |
| Signature: | /s/ Dyne Parker | Signature: | /s/ Donald Thompson |
| Name: | | Name: | |
| Title: | | Title: | |

---

---

| | | |
|:---|:---|:---|
| ![](tm2611545d1_ex6-10img004.jpg) | LF985 (May 2024) | Page 18 of 34 |

---

**Schedules**

<u>SCHEDULE A</u>

<u>COVENANTS</u>

1. Payment
 of all indebtedness due to BMO in connection with this Letter of Agreement or any Facility.

2. Maintenance
 of corporate existence and status, if applicable.

3. Payment
 of all Taxes when due (including, without limitation, corporate, GST, HST, sales tax and
 withholding).

4. Compliance
 with all material Laws, regulations and applicable permits or Approvals (including health,
 safety and employment standards, labour codes and environmental Laws).

5. Compliance
 with all material agreements.

6. Use of
 proceeds to be consistent with the approved purpose.

7. Notices
 of death of Borrower or Guarantor, Default, material Litigation, and regulatory proceedings
 to be provided to BMO on a timely basis.

8. Access
 by BMO to books and records; BMO to have right to inspect property to which its security
 applies.

9. No assumption
 of additional indebtedness or guarantee Obligations by Borrower without prior written consent
 of BMO.

10. No liens
 or encumbrances on any assets except with the prior written consent of BMO.

11. No change
 of control or ownership of the Borrower without the prior written consent of BMO.

12. No disposition
 of property or assets (except in the ordinary course of business) without the prior written
 consent of BMO.

13. No material
 acquisitions, hostile takeovers, mergers or amalgamations without BMO's prior written
 approval.

14. [For
 multiple currencies]:

If, for the purposes of obtaining judgment in any court in any jurisdiction with respect to this Letter of Agreement, it becomes necessary to convert into a particular currency (the "Judgment Currency") any amount due under this Letter of Agreement in any currency other than the Judgment Currency (the "Currency Due"), then conversion shall be made at the rate of exchange prevailing on the Business Day before the day on which judgment is given. For this purpose "rate of exchange" means the rate at which BMO is able, on the relevant date, to purchase the Currency Due with the Judgment Currency in accordance with its normal practice at its principal office in Toronto, Ontario. If that there is a change in the rate of exchange prevailing between the Business Day before the day on which the judgment is given and the date of receipt by BMO of the amount due, the Borrower will, on the date of receipt by BMO, pay such additional amounts, if any, or be entitled to receive reimbursement of such amount, if any, as may be necessary to ensure that the amount received by BMO on such date is the amount in the Judgment Currency which when converted at the rate of exchange prevailing on the date of receipt by BMO is the amount then due under this Letter of Agreement in the Currency Due. If the amount of the Currency Due which BMO is so able to purchase is less than the amount of the Currency Due originally due to it, the Borrower and each Guarantor jointly and severally (solidarily) agree to indemnify BMO from and against any and all loss or damage arising as a result of such deficiency. This indemnity shall constitute an obligation separate and independent from the other Obligations contained in this Letter of Agreement, shall give rise to a separate and independent cause of action, shall apply irrespective of any indulgence granted by BMO from time to time and shall continue in full force and effect notwithstanding any judgment or order in respect of an amount due under this Letter of Agreement or under any judgment or order.

---

| | | |
|:---|:---|:---|
| ![](tm2611545d1_ex6-10img004.jpg) | LF985 (May 2024) | Page 19 of 34 |

---

**Schedules**

15. If any
 loan which, by its terms, is not permitted to be prepaid prior to maturity, is (a) permitted
 by BMO to be prepaid in its sole and unfettered discretion, or (b) accelerated as a result
 of demand made by BMO or the occurrence of a default or Event of Default or following the
 bankruptcy or insolvency of the Borrower, then in each case, the Borrower shall compensate
 BMO on demand for the loss, cost and expense attributable to such prepayment or acceleration
 prior to maturity, as calculated by BMO. BMO shall not be required to disclose any components
 of such calculation which BMO determines is proprietary or commercially sensitive

---

| | | |
|:---|:---|:---|
| ![](tm2611545d1_ex6-10img004.jpg) | LF985 (May 2024) | Page 20 of 34 |

---

**Schedules**

<u>SCHEDULE B</u>

<u>REPRESENTATIONS AND WARRANTIES</u>

1. It has the corporate
 status, power and authority to enter into this Letter of Agreement and any agreement executed
 in connection with a Facility or any Security to which it is a party, and to perform its
 Obligations hereunder and thereunder.

2. It is in compliance
 with all applicable Laws (including environmental Laws) and its existing agreements.

3. Except
 as otherwise disclosed to BMO in writing, no consent or approval of, registration or filing
 with, or any other action by, any governmental authority is required in connection with the
 execution, delivery and performance by it of this Letter of Agreement and any agreement executed
 in connection with a Facility or any Security to which it is a party.

4. All
 factual information that has been provided to BMO for purposes of or in connection with this
 Letter of Agreement or any transaction contemplated herein is true and complete in all material
 respects on the date as of which such information is dated or certified.

5. No event, development
 or circumstance has occurred that has had or could reasonably be expected to have a Material
 Adverse Effect on the business, assets, operations or condition, financial or otherwise,
 of the Borrower or any Guarantor.

6. There is no material
 Litigation pending against it or, to its knowledge, threatened against or affecting it.

7. It has timely
 filed or caused to be filed all required tax returns and reports and has paid or caused to
 be paid all required Taxes.

8. It
 has good and marketable title to its properties and assets including ownership of and/or
 sufficient rights in any material intellectual property.

9. It has complied
 with all Obligations in connection with any pension plan which it has sponsored, administered
 or contributed to, or is required to contribute to including, without limitation, registration
 in accordance with applicable Laws, timely payment of all required contributions or premiums,
 and performance of all fiduciary and administration Obligations.

10. It maintains
 insurance policies and coverage that provides sufficient insurance coverage in at least such
 amounts and against at least such risks as are usually insured against in the same general
 area by persons in the same or a similar business.

11. It is not in
 Default nor has any event or circumstance occurred which, but for the passage of time or
 the giving of notice, or both, would constitute a Default under any loan, credit or security
 agreement, or under any material instrument or agreement, to which it is a party.

---

| | | |
|:---|:---|:---|
| ![](tm2611545d1_ex6-10img004.jpg) | LF985 (May 2024) | Page 21 of 34 |

---

**Schedules**

<u>SCHEDULE C</u>

<u>ADDITIONAL CONDITIONS PRECEDENT TO ADVANCES</u>

1. Delivery and review
 of the articles or other constating documents, by-laws, certified resolutions, shareholder
 agreements (if any) and good standing or equivalent certificates of each Credit Party demonstrating
 corporate or organisational status, due capacity and sufficient authority.

2. Delivery of a
 duly executed copy of the Documentation.

3. Review of all
 necessary Approvals.

4. Review of all
 Material Contracts.

5. Review of all
 information necessary for BMO to comply with all legal and internal requirements in respect
 of anti-money laundering and proceeds of crime legislation and "know your customer"
 requirements.

6. Review (as to
 covered risks, amounts, periods, renewals, issuer(s), named insured(s), beneficiaries, loss
 payees, caps, standard mortgage and similar clauses, conditions, exclusions and otherwise)
 by BMO (or its agents) of all insurance policies issued to the Credit Parties.

7. Completion of
 all due diligence required by BMO in respect of the Credit Parties and their respective business,
 operations, assets, property and undertaking (including lien, Litigation and solvency searches,
 as well as real property, insurance, tax, pension and environmental diligence, in each case
 where and as applicable).

8. Confirmation
 that all representations, warranties and other declarations made by the Credit Parties under
 each of the Documentation are true, complete and accurate at the time made or deemed made
 (including at the time of any Advance).

9. Confirmation
 that, since the most recent financial statements provided to BMO, no event or series of events
 has occurred or failed to occur which would reasonably be expected to have, either singly
 or in the aggregate, a Material Adverse Effect.

10. Confirmation
 that no Default shall have occurred or be continuing.

11. Payment of all
 fees, costs, charges, expenses and other amounts then owing under the Documentation.

12. Any other document
 or action that BMO may reasonably require.

13. Compliance with
 all covenants (financial and non-financial) contained herein

14. Compliance with
 all Laws

15. Satisfactory evidence that all
 other taxes payable by the Borrower and Guarantor(s) (including, without limitation, GST, HST, sales tax, and withholding) have been
 paid to date

16. No material
 judgments or material legal action initiated against the Borrower and/or any Guarantor(s)

---

| | | |
|:---|:---|:---|
| ![](tm2611545d1_ex6-10img004.jpg) | LF985 (May 2024) | Page 22 of 34 |

---

**Schedules**

<u>SCHEDULE D</u>

<u>Additional Terms</u>

---

| | |
|:---|:---|
| **Expenses:** | The Borrower(s) shall pay all reasonable costs and expenses of BMO associated with the preparation, due diligence (including third party expenses), administration and enforcement of this Letter of Agreement, the Facilities, the Security, and the other loan documentation, regardless of whether or not any advances are made or all of the conditions precedent are satisfied or waived in BMO's discretion. |
| **Increased Costs, Taxes, etc.:** | If in respect of any change in or introduction of any law, regulation, order, rule, request, or directive (whether or not having the force of law but of a kind which is intended to be generally complied with by banks) or in the interpretation thereof by any authority charged with the administration thereof or by any court of competent jurisdiction: |

---

(a) BMO incurs a cost (which it would not otherwise have incurred), becomes subject to a tax, or becomes liable to make a payment (calculated with reference to the amount outstanding or available under a Facility) with respect to continuing to provide or maintain such Facility (other than a tax imposed on the income of BMO);

(b) any reserve, special deposit or similar requirement is imposed or increased with respect to any Facility increasing the cost thereof to BMO; or

(c) BMO suffers or will suffer a reduction in the rate of return on its overall capital (other than a reduction by reason of an income tax referred to in (a) above) as a result of the amount of the capital that BMO is required to maintain being increased or of any change in the manner in which BMO is required to allocate its resources;

then the Borrower(s) shall, upon receiving written notice from BMO, pay to BMO such amount as will compensate BMO for, and will indemnify and hold BMO harmless against, such increases in cost or reductions of rate of return with respect to the applicable Facilities accruing after the date the notice is issued. The notice issued by BMO setting out the amount and basis for the amount of such additional payment required shall be deemed to be prima facie correct.

---

| | |
|:---|:---|
| **Confidential Information Release and Consent:** | The Borrower(s) consents to the release of confidential information regarding the business by BMO to affiliates and subsidiaries of BMO for the purpose of assisting BMO in supporting the Borrower(s) with its strategic plans. |

---

---

| | | |
|:---|:---|:---|
| ![](tm2611545d1_ex6-10img004.jpg) | LF985 (May 2024) | Page 23 of 34 |

---

**Schedules**

The Borrower(s) authorizes and consents to reproduction, disclosure and use by BMO of information about the Borrower(s) (including, without limitation, the Borrower(s)'s name and any identifying logos) and the Facilities (all such information being called the "**Information**") to enable BMO to publish promotional "tombstones" and other forms of notices of the Facilities in any manner and in any media (including, without limitation, brochures, league table purposes). The Borrower(s) acknowledges and agrees: that BMO shall be entitled to determine, in its discretion, whether to use the Information; that no compensation will be payable by BMO resulting therefrom; and that BMO shall have no liability whatsoever to the Borrower(s) or any of its employees, officers, directors, affiliates or shareholders in obtaining and using the Information in accordance with this paragraph.

---

| | |
|:---|:---|
| **Indemnification:** | The Borrower(s) agrees to indemnify BMO, its affiliates and each of their respective officers, directors, employees, agents and advisors, and save each of them harmless, from and against any and all direct and indirect losses, claims, damages and liabilities arising from activities under or contemplated under this Letter of Agreement, the Security and the other loan documents, other than as a direct result of the gross negligence or willful misconduct of BMO as determined by a final and non-appealable order of a court of competent jurisdiction. |

---

---

| | |
|:---|:---|
| **Announcements:** | The Borrower(s) shall permit BMO to review and approve of any reference to BMO contained in any press release or similar public disclosure in connection with the Facilities. |
|  | The Borrower(s) shall not assign any of its rights or obligations hereunder or under any other loan document. |
| **Assignment:** | BMO shall have the right to assign, insure, re-insure, sell or participate its rights and obligations under this Letter of Agreement and the other loan documents, including (without limitation) in the Facilities or in any borrowing hereunder, in whole or in part, to any other person, subject to the consent of the Borrower(s) not to be unreasonably withheld. Notwithstanding the foregoing, the consent of the Borrower(s) is not required if a Default has occurred and is continuing or if the Borrower(s) or any Guarantor is insolvent, bankrupt or has taken any action or sought any relief under any insolvency, restructuring or analogous corporate laws. |
| **Amendments:** | This Letter of Agreement can only be amended through a written instrument signed by BMO. The Borrower is solely responsible to notify any Guarantors of any amendments. |
| **No Waiver:** | BMO reserves all of its rights, remedies and recourses at any time and from time to time in connection with this Letter of Agreement and the other Documentation, and the entering into or continued performance by BMO of any Documentation shall not be construed as a waiver or forbearance of any Default. Any such waiver or forbearance must be express (and not implied) on the part of BMO and made in writing. |

---

---

| | | |
|:---|:---|:---|
| ![](tm2611545d1_ex6-10img004.jpg) | LF985 (May 2024) | Page 24 of 34 |

---

**Schedules**

---

| | |
|:---|:---|
| **Whole Agreement:** | This Letter of Agreement and the other Documentation constitute the whole and entire agreement between the parties in respect of the Facilities. Any previous agreements, understandings, undertakings or arrangements are superseded and replaced by this Letter of Agreement and the other Documentation. |
| **Withholding Taxes:** | Except as otherwise required by law, all payments made by the Borrower(s) to BMO hereunder shall be made without withholding for or on account of any present or future taxes imposed by or within the jurisdiction in which the Borrower(s) is domiciled, any jurisdiction from which the Borrower(s) makes any payment or any other jurisdiction, or (in each case) any political subdivision or taxing authority thereof or therein (other than taxes in respect of the net income, assets or capital of BMO). If any such withholding is required by law, the Borrower(s) shall make the withholding, pay the amount withheld to the appropriate governmental authority before penalties attach thereto or interest accrues thereon and forthwith pay to BMO such additional amount as may be necessary to ensure that the net amount actually received by BMO (after payment of such taxes including any taxes on such additional amount paid) is equal to the amount which it would have received if no amounts had been withheld. |
| **Matters relating to Interest:** | Unless otherwise indicated, interest on any outstanding principal amount and all other amounts (including unpaid interest) shall be calculated daily and shall be payable monthly in arrears on the first business day of the following month; and if the maturity date of a Facility is not the end of a month, all accrued and unpaid interest in respect of such Facility shall be paid on such maturity date. Interest shall accrue from and including the day upon which an advance is made or is deemed to have been made, and ending on but excluding the day on which such advance is repaid or satisfied. Any change in the Prime Rate or the Base Rate shall cause an immediate adjustment of the interest rate applicable to Prime Rate based loans or Base Rate based loans, as applicable, without notice to the Borrower. |
|  | Unless otherwise stated, in this Letter of Agreement if reference is made to a rate of interest, fee or other amount "per annum" or a similar expression is used, such interest, fee or other amount shall be calculated on the basis of a year of 365 or 366 days, as the case may be. If the amount of any interest, fee or other amount is determined or expressed on the basis of a period of less than 1 year or 365 or 366 days, as the case may be, the equivalent yearly rate is equal to the rate so determined or expressed, divided by the number of days in the said period, and multiplied by the actual number of days in that calendar year. BMO agrees that promptly upon request by the Borrower from time to time it will advise the Borrower of the Prime Rate and the Base Rate in effect at such time (or during any other period prior to such time), and will assist the Borrower in calculating the effective annual rate of interest required to be disclosed pursuant to section 4 of the *Interest Act* (Canada). |

---

---

| | | |
|:---|:---|:---|
| ![](tm2611545d1_ex6-10img004.jpg) | LF985 (May 2024) | Page 25 of 34 |

---

**Schedules**

---

| | |
|:---|:---|
|  | If the amount of any interest, premium, fees or other monies or any rate of interest stipulated for, taken, reserved or extracted under this Letter of Agreement or any of the Documentation would otherwise contravene the provisions of section 347 of the Criminal Code (Canada), section 4 or section 8 of the Interest Act (Canada) or any successor or similar legislation, or would exceed the amounts which BMO is legally entitled to charge and receive under any law to which such compensation is subject, then such amount or rate of interest shall be reduced to such maximum amount as would not contravene such provision; and to the extent that any excess has been charged or received BMO shall apply such excess against the outstanding indebtedness and refund any further excess amount. |
| **Default Interest:** | Applicable margins and interest rates which would be otherwise applicable shall increase by 2% points upon the occurrence of and during continuance of a Default. |
| **Interpretation:** | The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words "include", "includes" and "including" shall be deemed to be followed by the phrase "without limitation". The word "or" is disjunctive; the word "and" is conjunctive. Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented, restated or replaced (subject to any restrictions on such modifications set out herein), (b) any reference herein to any statute or any section thereof shall, unless otherwise expressly stated, be deemed to be a reference to such statute or section as amended, restated or re-enacted from time to time, (c) any reference herein to any person shall be construed to include such person's successors and permitted assigns, (d) the words "herein", "hereof" and "hereunder", and words of similar import, shall be construed to refer to this Letter of Agreement in its entirety and not to any particular provision hereof, (e) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Letter of Agreement, (f) the words "asset" and "property" shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights, and (g) any use of "including" or "includes" is not intended to be limited and shall be read to mean "including, without limitation" and "includes, without limitation". |
| **WAIVER OF JURY TRIAL:** | EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS LETTER OF AGREEMENT, ANY OTHER LOAN DOCUMENT, OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (a) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (b) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS LETTER OF AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. |

---

---

| | | |
|:---|:---|:---|
| ![](tm2611545d1_ex6-10img004.jpg) | LF985 (May 2024) | Page 26 of 34 |

---

**Schedules**

---

| | |
|:---|:---|
| **Matters related to **Currency:** | If it is necessary for any purpose relating to any Facility that an amount denominated in a currency other than Canadian Dollars be expressed in or equated to an amount of Canadian Dollars, the applicable amount of Canadian Dollars will be determined by BMO in accordance with its normal practice. If the amount outstanding under such Facility, when converted to the equivalent amount in Canadian Dollars, exceeds the amount available under such Facility, the Borrower shall, unless BMO otherwise agrees in its sole discretion, immediately repay such excess to BMO. |
|  | If, for the purposes of obtaining judgment in any court in any jurisdiction with respect to this Letter of Agreement or any other Documentation, it becomes necessary to convert into a particular currency (the "Judgment Currency") any amount due under this Letter of Agreement or under any other Documentation in any currency other than the Judgment Currency (the "Currency Due"), then conversion shall be made at the rate of exchange prevailing on the Business Day before the day on which judgment is given. For this purpose "rate of exchange" means the rate at which BMO is able, on the relevant date, to purchase the Currency Due with the Judgment Currency in accordance with its normal practice at its office in Toronto, Ontario. If there is a change in the rate of exchange prevailing between the Business Day immediately preceding the day on which the judgment is given and the date of receipt by BMO of the amount due, the Borrower shall, on the date of receipt by BMO, pay such additional amounts, if any, or be entitled to receive reimbursement of such amount, if any, as may be necessary to ensure that the amount received by BMO on such date is the amount in the Judgment Currency which when converted at the rate of exchange prevailing on the date of receipt by BMO is the amount then due under this Letter of Agreement or such other Documentation in the Currency Due. If the amount of the Currency Due which BMO is so able to purchase is less than the amount of the Currency Due originally due to it, the Borrower shall indemnify and save BMO harmless from and against all loss or damage arising as a result of such deficiency. This indemnity shall constitute an obligation separate and independent from the other obligations contained in this Letter of Agreement and the other Documentation, shall give rise to a separate and independent cause of action, shall apply irrespective of any indulgence granted by BMO from time to time and shall continue in full force and effect notwithstanding any judgment or order for a liquidated sum in respect of an amount due under this Letter of Agreement or any other Documentation or under any judgment or order. |

---

---

| | | |
|:---|:---|:---|
| ![](tm2611545d1_ex6-10img004.jpg) | LF985 (May 2024) | Page 27 of 34 |

---

**Schedules**

---

| | |
|:---|:---|
| **No Advisory or Fiduciary Duty:** | The Borrower acknowledges and agrees, and acknowledges its subsidiaries' understanding, that BMO will not have any obligations hereunder except those obligations expressly set forth herein and in the other Documentation and that BMO is acting solely in the capacity of an arm's length contractual counterparty to the Borrower with respect to the Documentation and the transaction contemplated therein and not as a financial advisor or a fiduciary to, or an agent of, the Borrower or any other person. The Borrower agrees that it will not assert any claim against BMO based on an alleged breach of fiduciary duty by BMO in connection with this Letter of Agreement or the other Documentation and the transactions contemplated thereby. Additionally, the Borrower acknowledges and agrees that BMO is not advising the Borrower as to any legal, tax, investment, accounting, regulatory or any other matters in any jurisdiction. The Borrower shall consult with its own advisors concerning such matters and shall be responsible for making its own independent investigation and appraisal of the transactions contemplated hereby, and BMO shall have no responsibility or liability to the Borrower with respect thereto. |
| **Set Off:** | BMO and its affiliates may set off any obligations owing under or in connection with this Letter of Agreement and the Facilities against any money and other property maintained in any accounts of the Borrower held with BMO or its affiliates. |
| **Quebec Matters:** | For purposes of any assets, liabilities or entities located in the Province of Québec and for all other purposes pursuant to which the interpretation or construction of this Letter of Agreement may be subject to the laws of the Province of Québec or a court or tribunal exercising jurisdiction in the Province of Québec: (a) "personal property" shall include "movable property", (b) "real property" or "real estate" shall include "immovable property", (c) "tangible property" shall include "corporeal property", (d) "intangible property" shall include "incorporeal property", (e) "security interest", "mortgage" and "lien" shall include a "hypothec", "right of retention", "prior claim" , "reservation of ownership" and a resolutory clause, (f) all references to filing, perfection, priority, remedies, registering or recording under a Personal Property Security Act shall include publication under the Civil Code of Québec, (g) all references to "perfection" of or "perfected" liens or security interest shall include a reference to an "opposable" or "set up" hypothec as against third parties, (h) any "right of offset", "right of setoff" or similar expression shall include a "right of compensation", (i) "goods" shall include "corporeal movable property" other than chattel paper, documents of title, instruments, money and securities, (j) an "agent" shall include a "mandatary", (k) "joint and several" shall include "solidary", (l) "gross negligence or willful misconduct" shall be deemed to be "intentional or gross fault", (m) "beneficial ownership" shall include "ownership on behalf of another as mandatary", (n) "easement" shall include "servitude", (o) "priority" shall include "rank" or "prior claim", as applicable (p) "accounts" shall include "claims", (q) "legal title" shall be including "holding title on behalf of an owner as mandatory or prête-nom", and (r) "guarantee" and "guarantor" shall include "suretyship" and "surety", respectively. |

---

---

| | | |
|:---|:---|:---|
| ![](tm2611545d1_ex6-10img004.jpg) | LF985 (May 2024) | Page 28 of 34 |

---

**Schedules**

---

| | |
|:---|:---|
| **Benchmark Replacement Mechanics:** | Unless otherwise defined, capitalized terms have the meanings given to them in the Letter of Agreement and Schedule E.<br>**<u>Definitions:</u>** |

---

---

| | | | |
|:---|:---|:---|:---|
| **Benchmark:** | For: | | |
|  |  | (a) | CORRA, initially, the Term CORRA Reference Rate; and |
|  |  | (b) | SOFR, initially, Term SOFR, |
|  | provided that if a Benchmark Transition Event has occurred with respect to any of the foregoing or the then-current Benchmark, then "Benchmark" means the applicable Benchmark Replacement to the extent that such Benchmark Replacement has replaced such prior benchmark rate under this Schedule. | provided that if a Benchmark Transition Event has occurred with respect to any of the foregoing or the then-current Benchmark, then "Benchmark" means the applicable Benchmark Replacement to the extent that such Benchmark Replacement has replaced such prior benchmark rate under this Schedule. | provided that if a Benchmark Transition Event has occurred with respect to any of the foregoing or the then-current Benchmark, then "Benchmark" means the applicable Benchmark Replacement to the extent that such Benchmark Replacement has replaced such prior benchmark rate under this Schedule. |
| **Benchmark Replacement:** | With respect to any Benchmark Transition Event: | With respect to any Benchmark Transition Event: | With respect to any Benchmark Transition Event: |
|  |  | (a) | where a Benchmark Transition Event has occurred with respect to Term CORRA Reference Rate, the Benchmark Replacement will be the Prime Rate; and; |
|  |  | (b) | where a Benchmark Transition Event has occurred with respect to a Benchmark other than the Term CORRA Reference Rate, the Benchmark Replacement will be the sum of: |

---

---

| | |
|:---|:---|
| i. | the alternate benchmark rate that has been selected by BMO in its discretion but considering: (1) any selection or recommendation of a replacement benchmark rate or the mechanism for determining such a rate by an applicable Governmental Authority, or (2) any evolving or then-prevailing market convention for determining a benchmark rate as a replacement to the then-current Benchmark for similar credit facilities, and |
| ii. | the related Benchmark Replacement Adjustment. |
| If the Benchmark Replacement as determined pursuant to clause (a) or (b) above would be less than any applicable floor, the Benchmark Replacement will be deemed to be that floor for the purposes of this Letter of Agreement and the other Documentation. If there is no floor, then the floor shall be deemed to be 1%. | If the Benchmark Replacement as determined pursuant to clause (a) or (b) above would be less than any applicable floor, the Benchmark Replacement will be deemed to be that floor for the purposes of this Letter of Agreement and the other Documentation. If there is no floor, then the floor shall be deemed to be 1%. |

---

---

| | | |
|:---|:---|:---|
| ![](tm2611545d1_ex6-10img004.jpg) | LF985 (May 2024) | Page 29 of 34 |

---

**Schedules**

---

| | | | |
|:---|:---|:---|:---|
| **Benchmark Replacement Adjustment:** | With respect to any replacement of the then-current Benchmark with a Benchmark Replacement, the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by BMO in its discretion but considering: (a) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark by the applicable governmental authority, or (b) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark for similar credit facilities at such time. | With respect to any replacement of the then-current Benchmark with a Benchmark Replacement, the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by BMO in its discretion but considering: (a) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark by the applicable governmental authority, or (b) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark for similar credit facilities at such time. | With respect to any replacement of the then-current Benchmark with a Benchmark Replacement, the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by BMO in its discretion but considering: (a) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark by the applicable governmental authority, or (b) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark for similar credit facilities at such time. |
| **Benchmark Transition Event:** | With respect to any then-current Benchmark, the occurrence of any of the following events as determined by BMO in its sole discretion: | With respect to any then-current Benchmark, the occurrence of any of the following events as determined by BMO in its sole discretion: | With respect to any then-current Benchmark, the occurrence of any of the following events as determined by BMO in its sole discretion: |
|  |  | (a) | that Benchmark or any interest period of that Benchmark is no longer available or published or representative; |
|  |  | (b) | the administrator, regulatory supervisor or other applicable governmental authority having jurisdiction over the Benchmark has made a public statement that the Benchmark or any interest period of the Benchmark will no longer be made available, used or advisable for determining interest rates of loans; or |
|  |  | (c) | loans are currently being executed containing, or loans that include benchmark replacement language similar to that contained in this Letter of Agreement, are being executed or modified (as applicable) to incorporate or adopt, a new interest rate to replace a Benchmark. |
| **Conforming Changes:** | With respect to the use or administration of a Benchmark or the use, administration, adoption or implementation of any Benchmark Replacement, any technical, administrative or operational changes (including changes to definitions, pricing, applicable margins and other provisions of any Documentation, timing and frequency of determining rates and making payments of interest, timing of loan requests or prepayment, conversion or continuation notices, the applicability and length of lookback periods and other technical, administrative or operational matters) that BMO decides may be appropriate to reflect the adoption and implementation of any such rate or to permit the use and administration thereof by BMO in a manner substantially consistent with market practice (or, if BMO decides that adoption of any portion of such market practice is not administratively feasible or if BMO determines that no market practice for the administration of any such rate exists, in such other manner of administration as BMO decides is reasonably necessary in connection with the administration of this Letter of Agreement and the other Documentation. | With respect to the use or administration of a Benchmark or the use, administration, adoption or implementation of any Benchmark Replacement, any technical, administrative or operational changes (including changes to definitions, pricing, applicable margins and other provisions of any Documentation, timing and frequency of determining rates and making payments of interest, timing of loan requests or prepayment, conversion or continuation notices, the applicability and length of lookback periods and other technical, administrative or operational matters) that BMO decides may be appropriate to reflect the adoption and implementation of any such rate or to permit the use and administration thereof by BMO in a manner substantially consistent with market practice (or, if BMO decides that adoption of any portion of such market practice is not administratively feasible or if BMO determines that no market practice for the administration of any such rate exists, in such other manner of administration as BMO decides is reasonably necessary in connection with the administration of this Letter of Agreement and the other Documentation. | With respect to the use or administration of a Benchmark or the use, administration, adoption or implementation of any Benchmark Replacement, any technical, administrative or operational changes (including changes to definitions, pricing, applicable margins and other provisions of any Documentation, timing and frequency of determining rates and making payments of interest, timing of loan requests or prepayment, conversion or continuation notices, the applicability and length of lookback periods and other technical, administrative or operational matters) that BMO decides may be appropriate to reflect the adoption and implementation of any such rate or to permit the use and administration thereof by BMO in a manner substantially consistent with market practice (or, if BMO decides that adoption of any portion of such market practice is not administratively feasible or if BMO determines that no market practice for the administration of any such rate exists, in such other manner of administration as BMO decides is reasonably necessary in connection with the administration of this Letter of Agreement and the other Documentation. |

---

---

| | | |
|:---|:---|:---|
| ![](tm2611545d1_ex6-10img004.jpg) | LF985 (May 2024) | Page 30 of 34 |

---

**Schedules**

**<u>REPLACEMENT MECHANICS:</u>**

&nbsp;&nbsp;&nbsp;&nbsp;1. **Rates and No Liability**: BMO does not warrant or accept responsibility for, and won't
 have any liability with respect to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Continuation,
 administration, calculation or any other matter related to CORRA, SOFR or any other Benchmark
 or any term, interest rate or interest period related to any of them;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. the effect,
 implementation or composition of any Conforming Changes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. whether
 any adjustments to Term CORRA, Term SOFR or other Benchmark is similar to, or produces, the
 economic equivalence of any prior reference interest rate, index or other credit availment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. the liquidity
 or availability of any Benchmark or interest period thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. any
 other direct or indirect consequence of a Benchmark, Benchmark Transition Event, Benchmark
 Replacement, Conforming Changes or other consequence of any reference rate adjusting or ceasing
 in the future.

&nbsp;&nbsp;&nbsp;&nbsp;2. **Benchmark Replacement**: Notwithstanding anything to the contrary in this Letter of Agreement or
 any other Documentation (and BMO may determine if it requires applicable swap and hedge agreements
 to be Documentation for the purposes of these mechanics), if a Benchmark Transition Event
 occurs, then:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. in
 the case of a Benchmark Replacement under clause (a) of that definition [Term CORRA to Prime
 Rate], such Benchmark Replacement will replace the applicable Benchmark for all purposes
 under the Documentation for that Benchmark without any further action or consent of any party,
 provided BMO may make Conforming Changes as required; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. in the
 case of a Benchmark Replacement under clause (b) of that definition [anything other than
Term CORRA], such Benchmark Replacement will replace the applicable Benchmark for all purposes under the Loan Documents after 5:00pm
Toronto time on the 5<sup>th</sup> Business Day after the date notice of such Benchmark Replacement is provided to BMO without any further
action or consent of any party, provided BMO may make Conforming Changes as required.

BMO may issue simple notice of any Benchmark Replacement to the Borrower, however any Benchmark Replacement made under this Section will not be affected, conditional or prejudiced in any way if BMO does not provide any such notice.

Each outstanding loan based directly or indirectly on a Benchmark that is being replaced under this section ("**Existing Loan**") will automatically convert to a loan under the new adjusted Benchmark ("**Updated Loan**") upon the later to occur of (a) the maturity of the applicable interest period of the Existing Loan, and (b) the effective date of the Benchmark Replacement. The Updated Loan will be in the principal amount of all outstanding debt, interest, fees and other amounts of the Existing Loan on the conversion date and bear interest at a rate per annum based on the new Benchmark and taking into account any Applicable Margin, Conforming Changes, fees and other amounts. If, for any reason, an Existing Loan cannot be so converted, it will be deemed to have converted to a Prime Rate or Base Rate, as applicable, loan in the principal amount of all outstanding debt, interest, fees and other amounts of the Existing Loan on the conversion date.

---

| | | |
|:---|:---|:---|
| ![](tm2611545d1_ex6-10img004.jpg) | LF985 (May 2024) | Page 31 of 34 |

---

**Schedules**

&nbsp;&nbsp;&nbsp;&nbsp;3. **Conforming Changes**: Without limiting BMO's ability to make Conforming Changes under Section
 2, BMO
may make Conforming Changes in connection with the use, administration, adoption or implementation of a Benchmark Replacement from time
to time and, notwithstanding anything to the contrary herein or in any other Documentation, any amendments implementing such Conforming
Changes will become effective without any further action or consent of any other party to this Letter of Agreement or any other Documentation.

&nbsp;&nbsp;&nbsp;&nbsp;4. **Notices**:
 BMO will notify the Borrower of any Benchmark Replacement and the effectiveness of any Conforming
 Changes. Any determination, decision or election by BMO and associated notice(s) will be
 conclusive and binding absent manifest error and will be made in BMO's sole discretion
 without the need for any consent or approval from any person.

&nbsp;&nbsp;&nbsp;&nbsp;**5.** **Compensation for Loss:** If any loan based on Term CORRA or Term SOFR is repaid, converted, rolled over
 or assigned before the last day of the applicable interest period, the Borrower will immediately
 on demand compensate BMO for any loss, cost and expense attributable to such event, including
 costs of re-deploying capital, break-fees and other related amounts.

&nbsp;&nbsp;&nbsp;&nbsp;**6.** **Bankers' Acceptances ("BAs")**. No new advance or loan will be requested or made that
 is a BA or derived from a BA. Any outstanding obligations consisting of BAs or derived from
 BAs will, concurrently with their maturity, automatically convert to a Prime Rate loan under
 the same Facility.

---

| | | |
|:---|:---|:---|
| ![](tm2611545d1_ex6-10img004.jpg) | LF985 (May 2024) | Page 32 of 34 |

---

**Schedules**

<u>SCHEDULE E</u>

<u>DEFINITIONS</u>

"**Advance**" or "**Loans**" means an advance, continuation, or conversion (where applicable) of any loan or credit extended under this Agreement, as amended, restated, or renewed from time to time.

"**Approvals**" means, collectively, all material governmental, regulatory, third party or other approvals, authorizations, consents, rights, titles, interests, franchises, licenses, permits, privileges, qualifications and the like, and orders, registrations, declarations, publications, recordings, filings, notices and such other actions which, in each case, are necessary or desirable (i) for the ownership, lease, operation and normal conduct of the business, property, undertaking and assets of any Credit Party, or (ii) under or in connection with the Facilities and the Documentation (including the execution, delivery, performance, validity, enforceability and perfection (opposability) thereof).

**"CORRA"** Means the Canadian Overnight Repo Rate Average administered and published by the Bank of Canada (or any successor administrator).

"**Credit Parties**" means, collectively, the Borrower(s) and the Guarantor(s).

"**Default**" means a breach or default or event which, with the giving of notice or the passage of time or both, would constitute a breach or a default (whether as to the performance or fulfilment of any representations, warranties, covenants, obligations, or other provisions thereunder) under the applicable documentation (including the Documentation).

"**Documentation**" means, collectively, this Agreement (as amended, restated, or renewed from time to time), the Guarantee and Security (set forth below) and all other agreements and documents required to be delivered in connection with the Facilities or the transactions contemplated hereby.

"**including**" means including but without limitation.

"**Laws**" means all laws, statutes, regulations, rules, codes, orders, ordinances, treaties, conventions, judgements, awards, determinations, directives, orders, and decrees applicable to a Credit Party, its business, or its property, undertaking and assets, including, without limitation, environmental laws and pension plan and other employee plan matters.

"**Litigation**" means any judgment, writ of execution, order, notice of deficiency, injunction or directive rendered, and any notice of infraction, action, suit, proceeding, or investigation pending or threatened, in each case against a Credit Party or any of its property or assets.

"**Material Contracts**" means any contract or agreement entered into by any Credit Party in respect of which any material breach or default or any termination or non-renewal would reasonably be expected to have a Material Adverse Effect under clause (i) or (ii) of the definition thereof, as such contracts or agreements may be amended, supplemented, restated, replaced, or otherwise modified from time to time to the extent permitted under the Documentation.

"**Material Adverse Effect**" means a material adverse effect on (i) the business, assets, results of operations, prospects, or condition (financial or otherwise) of any Credit Party, (ii) the ability of each Credit Party to perform its obligations under the Documentation, or (iii) the legality, validity, binding nature, or enforceability of the rights, remedies, or recourses of BMO under any of the Documentation.

---

| | | |
|:---|:---|:---|
| ![](tm2611545d1_ex6-10img004.jpg) | LF985 (May 2024) | Page 33 of 34 |

---

**Schedules**

"**Obligations**" means all debts, liabilities and obligations owed to Bank of Montreal, BMO Bank N.A. and Bank of Montreal's other affiliates and their successors under or in connection with the Facilities, this Letter of Agreement (as amended, restated or renewed from time to time) or any other Documentation (in principal, interest, fees, premiums, penalties, costs, losses, expenses and other charges) and includes any indemnity obligations owed by Bank of Montreal to any of its affiliates in relation to the Facilities.

"**Prime Rate**" means the rate of interest announced from time to time by BMO as its reference rate then in effect for determining rates of interest charged on Canadian dollar loans made to its customers in Canada and designated as its prime rate.

"**Taxes**" means all taxes, duties, assessments, imposts, levies and similar charges and claims imposed upon a Credit Party, its income, or profits, or upon any properties belonging to it (including, without limitation, corporate, GST, HST, sales tax, real property taxes and other withholdings, deductions, and related liabilities).

"**Term CORRA Administrator**" Means Candeal Benchmark Administration Services Inc., TSX Inc., or any successor administrator.

"**Term CORRA**" Means the forward-looking term rate based on CORRA ("**Term CORRA Reference Rate**") for a period comparable to the applicable interest period of 1 or 3 months on the day (such day, the "**Periodic Term CORRA Determination Day**") that is 2 Business Days prior to the first day of such interest period, as such rate is published by the Term CORRA Administrator; provided that if as of 1:00 p.m. (Toronto time) on any Periodic Term CORRA Determination Day the Term CORRA Reference Rate for the applicable period has not been published by the Term CORRA Administrator and a Benchmark Replacement Date with respect to the Term CORRA Reference Rate has not occurred, then Term CORRA will be the Term CORRA Reference Rate for such period as published by the Term CORRA Administrator on the first preceding Business Day for which such Term CORRA Reference Rate for such period was published by the Term CORRA Administrator so long as such first preceding Business Day is not more than 3 Business Days prior to such Periodic Term CORRA Determination Day.

"**Term SOFR**" Means, for an interest period of 1, 3 or 6 months, the rate per annum determined by BMO as the forward-looking term rate based on the secured overnight financing rate administered by the US Federal Reserve Bank of New York (or a successor administrator selected by BMO) that is 2 U.S. Government Securities Business Days before the start of the chosen interest period (or, if such rate is not ascertainable on such date, the immediately preceding U.S. Government Securities Business Day). Each determination of Term SOFR by BMO shall be conclusive and binding absent manifest error.

"**US Base Rate**" means the rate of interest announced from time to time by BMO as its reference rate then in effect for determining rates of interest charged on U.S. Dollar loans made to its customers in Canada and designated as its U.S. base rate.

---

| | | |
|:---|:---|:---|
| ![](tm2611545d1_ex6-10img004.jpg) | LF985 (May 2024) | Page 34 of 34 |

---

![](tm2611545d1_ex6-10img005.jpg)

**Company Legal Name: RED RESORT LIMITED PARTNERSHIP**

**Document Name: LF986-Advice of Loan Terms**

**Customer Tracking ID: B20093281901020**

**Transaction ID: MOD-301815363**

**ATTENTION:**

**Please do not remove or discard this sheet and ensure that it is returned with the attached document(s).**

![](tm2611545d1_ex6-10img006.jpg)

![](tm2611545d1_ex6-10img003.jpg)

Further to our conversation, we are pleased to confirm your instructions for the following term loan renewal of the credit facility which is as subject to the terms of our Letter of Agreement: Latest reinstated LF985 (17/MAR/2025).

**Date:** April 04, 2025

**Borrower Name:** RED RESORT LIMITED PARTNERSHIP

**Loan Type:** Fixed Rate Term Loan

**Loan Advance Amount:** $511,958.44 CAD

**Requested Date of Advance:** April 04, 2025

**Funds to be Credited to:** 0755-6999-501

**Interest Rate:** 5.94% per annum

---

| | |
|:---|:---|
| **Selected Term:** 12 months | **Amortization:** 35 months |
| **Payment Frequency:** Monthly | **Payment Type:** Irregular payment - principal and interest December to May and Interest only June to November annually |
| **Payment Amount:** $28,442.14 | **First Payment Due:** April 30, 2025 |
| **Maturity Date:** March 31, 2026 |  |

---

Thank you for your business, and I look forward to continuing to work with you to meet your financial goals.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Accepted and agreed to this** | | **day of** | | **, 2025** |  |
|  | (Day) |  | (Month) |  | (Year) |

---

---

| | | |
|:---|:---|:---|
| ![](tm2611545d1_ex6-10img008.jpg) | LF986 (Jan 2023) | Page **1** of **2** |

---

![](tm2611545d1_ex6-10img006.jpg)

For renewals: <u>RED RESORT LIMITED PARTNERSHIP</u>

---

| | |
|:---|:---|
| Signature: | /s/ Dyne Parker |
| Name: | |
| Title: | |

---

---

| | |
|:---|:---|
| Signature: | /s/ Donald Thompson |
| Name: | |
| Title: | |

---

---

| | | |
|:---|:---|:---|
| ![](tm2611545d1_ex6-10img009.jpg) | LF986 (Aug 2020) | Page **2** of **2** |

---

![](tm2611545d1_ex6-10img007.jpg)

**Company Legal Name: RED RESORT LIMITED PARTNERSHIP**

**Document Name: LF986-Advice of Loan Terms**

**Customer Tracking ID: B20093281901020**

**Transaction ID: MOD-301815351**

**ATTENTION:**

**Please do not remove or discard this sheet and ensure that it is returned with the attached document(s).**

![](tm2611545d1_ex6-10img006.jpg)

![](tm2611545d1_ex6-10img003.jpg)

Further to our conversation, we are pleased to confirm your instructions for the following term loan renewal of the credit facility which is as subject to the terms of our Letter of Agreement: Latest reinstated LF985 (17/MAR/2025).

**Date:** April 04, 2025

**Borrower Name:** RED RESORT LIMITED PARTNERSHIP

**Loan Type:** Fixed Rate Term Loan

**Loan Advance Amount:** $3,116,517.08 CAD

**Requested Date of Advance:** April 04, 2025

**Funds to be Credited to:** 0755-6999-528

**Interest Rate:** 5.94% per annum

---

| | |
|:---|:---|
| **Selected Term:** 12 months | **Amortization:** 215 months |
| **Payment Frequency:** Monthly | **Payment Type:** Irregular payment - principal and interest December to May and Interest only June to November annually |
| **Payment Amount:** $28,856.64 | **First Payment Due:** April 30, 2025 |
| **Maturity Date:** March 31, 2026 |  |

---

Thank you for your business, and I look forward to continuing to work with you to meet your financial goals.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Accepted and agreed to this** | | **day of** | | **, 2025** |  |
|  | (Day) |  | (Month) |  | (Year) |

---

---

| | | |
|:---|:---|:---|
| ![](tm2611545d1_ex6-10img008.jpg) | LF986 (Jan 2023) | Page **1** of **2** |

---

![](tm2611545d1_ex6-10img006.jpg)

For renewals: <u>RED RESORT LIMITED PARTNERSHIP</u>

---

| | |
|:---|:---|
| Signature: | /s/ Dyne Parker |
| Name: | |
| Title: | |

---

---

| | |
|:---|:---|
| Signature: | /s/ Donald Thompson |
| Name: | |
| Title: | |

---

---

| | | |
|:---|:---|:---|
| ![](tm2611545d1_ex6-10img009.jpg) | LF986 (Aug 2020) | Page **2** of **2** |

---

![](tm2611545d1_ex6-10img010.jpg)

**Company Legal Name: RED RESORT LIMITED PARTNERSHIP**

**Document Name: LF986-Advice of Loan Terms**

**Customer Tracking ID: B20093281901020**

**Transaction ID: MOD-301989344**

**ATTENTION:**

**Please do not remove or discard this sheet and ensure that it is returned with the attached document(s).**

![](tm2611545d1_ex6-10img006.jpg)

![](tm2611545d1_ex6-10img003.jpg)

Further to our conversation, we are pleased to confirm your instructions for the following term loan renewal of the credit facility which is as subject to the terms of our Letter of Agreement: Latest reinstated LF985 (17/MAR/2025).

**Date:** April 06, 2026

**Borrower Name:** RED RESORT LIMITED PARTNERSHIP

**Loan Type:** Fixed Rate Term Loan

**Loan Advance Amount:** $341,305.60 CAD

**Requested Date of Advance:** April 06, 2026

**Funds to be Credited to:** NA Renewal of FRTL

**Interest Rate:** 5.34% per annum

---

| | |
|:---|:---|
| **Selected Term:** 12 months | **Amortization:** 23 months |
| **Payment Frequency:** Monthly | **Payment Type:** Irregular payment - principal and interest December to May and Interest only June to November annually. |
| **Payment Amount:** $28,442.14 | **First Principal Payment Due:** April 30, 2026 |
| **Maturity Date:** March 31, 2027 |  |

---

Thank you for your business, and I look forward to continuing to work with you to meet your financial goals.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Accepted and agreed to this** | | **day of** | | **, 2026** |  |
|  | (Day) |  | (Month) |  | (Year) |

---

---

| | | |
|:---|:---|:---|
| ![](tm2611545d1_ex6-10img008.jpg) | LF986 (Jan 2023) | Page **1** of **2** |

---

![](tm2611545d1_ex6-10img006.jpg)

For renewals: <u>RED RESORT LIMITED PARTNERSHIP</u>

---

| | |
|:---|:---|
| Signature: | /s/ Dyne Parker |
| Name: | |
| Title: | |

---

---

| | |
|:---|:---|
| Signature: | /s/ Mark Schroetel |
| Name: | |
| Title: | |

---

---

| | | |
|:---|:---|:---|
| ![](tm2611545d1_ex6-10img009.jpg) | LF986 (Aug 2020) | Page **2** of **2** |

---

![](tm2611545d1_ex6-10img011.jpg)

**Company Legal Name: RED RESORT LIMITED PARTNERSHIP**

**Document Name: LF986-Advice of Loan Terms**

**Customer Tracking ID: B20093281901020**

**Transaction ID: MOD-301989354**

**ATTENTION:**

**Please do not remove or discard this sheet and ensure that it is returned with the attached document(s).**

![](tm2611545d1_ex6-10img006.jpg)

![](tm2611545d1_ex6-10img003.jpg)

Further to our conversation, we are pleased to confirm your instructions for the following term loan renewal of the credit facility which is as subject to the terms of our Letter of Agreement: Latest reinstated LF985 (17/MAR/2025).

**Date:** April 06, 2026

**Borrower Name:** RED RESORT LIMITED PARTNERSHIP

**Loan Type:** Fixed Rate Term Loan

**Loan Advance Amount:** $2,943,377.24 CAD

**Requested Date of Advance:** April 06, 2026

**Funds to be Credited to:** NA – FRTL renewal

**Interest Rate:** 5.34% per annum

---

| | |
|:---|:---|
| **Selected Term:** 12 months | **Amortization:** 203 months |
| **Payment Frequency:** Monthly | **Payment Type:** Irregular payment - principal and interest December to May and Interest-only June to November annually. |
| **Payment Amount:** $28,856.64 | **First Principal **Payment Due:** April 30, 2026** |
| **Maturity Date:** March 31, 2027 |  |

---

Thank you for your business, and I look forward to continuing to work with you to meet your financial goals.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Accepted and agreed to this** | | **day of** | | **, 2026** |  |
|  | (Day) |  | (Month) |  | (Year) |

---

---

| | | |
|:---|:---|:---|
| ![](tm2611545d1_ex6-10img008.jpg) | LF986 (Jan 2023) | Page **1** of **2** |

---

![](tm2611545d1_ex6-10img006.jpg)

For renewals: <u>RED RESORT LIMITED PARTNERSHIP</u>

---

| | |
|:---|:---|
| Signature: | /s/ Dyne Parker |
| Name: | |
| Title: | |

---

---

| | |
|:---|:---|
| Signature: | /s/ Mark Schroetel |
| Name: | |
| Title: | |

---

---

| | | |
|:---|:---|:---|
| ![](tm2611545d1_ex6-10img009.jpg) | LF986 (Aug 2020) | Page **2** of **2** |

---

## Ex1K-6

**Exhibit 6.7**

**CreditMaster<sup>®</sup> Construction Loan Agreement**

The Credit Union is a licensee of the CreditMaster<sup>®</sup> trademark owned by Central 1 Credit Union.

THIS CREDITMASTER<sup>®</sup> CONSTRUCTION LOAN AGREEMENT dated for reference the 22<sup>th</sup> day of December, 2022.

BETWEEN:

**HANNAH CREEK LIMITED PARTNERSHIP** (Registration No. LP397520)

Box 670

Rossland, BC V0G 1Y0

(the "Borrower")

OF THE FIRST PART

AND:

**KOOTENAY SAVINGS CREDIT UNION**

Suite 200, 605 - 20<sup>th</sup> Street

Castlegar, BC V1N 2P2

(the "Credit Union")

OF THE SECOND PART

WHEREAS:

A. The
 Borrower is a member of the Credit Union and has applied to the Credit Union for a loan (the
 "Construction Loan") of up to $29,101,000.00 to finance the construction of the
 Project;

B. The
 Credit Union has agreed to loan the Borrower the Construction Loan to finance the construction
 of the Project.

NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration of the premises and of the terms, covenants and conditions hereinafter contained and of the parties hereto having entered into and executed this agreement it is agreed by and between the parties as follows:

**PART 1 - DEFINITIONS AND INTERPRETATION**

1.1 **Definitions –** In
this Agreement, unless the context otherwise requires:

"Account" means that account maintained by the Borrower at the address of the Credit Union specified above and bearing account number 1716133;

"Agreement" means this Agreement as the same may be amended from time to time and the expression "hereof", "herein", "hereto", "hereunder", and "hereby", and similar expressions refer to this Agreement and not to any particular provision;

"Balance Due Date" means twenty four (24) months from the date of the first advance of funds;

"Business Day" means each day Monday through Friday inclusive other than a day which is a statutory holiday in British Columbia;

"Construction Contracts" means all contracts between the Borrower and other persons relating to the construction of the Project;

"Event of Default" means an event described in section 11.1;

"Guarantor" means N/A;

"Indemnitor" means Jeffrey Atwood Busby and The Juice Trust;

"Inspector" means the quantity surveyor, engineer or other professional appointed by the Borrower and approved by the Credit Union who will advise the Borrower on the progress of construction of the Project;

COMMERCIAL CREDITMASTER® CONSTRUCTION LOAN AGREEMENT page 1 of 18

"Lands" means those lands and premises legally described as PID 026-522-144, LOT 3 TOWNSHIP 28 KOOTENAY DISTRICT PLAN NEP79845;

"Mortgage" means a first mortgage of the Lands in favour of the Credit Union incorporating Standard Mortgage Terms MT030098 as Part 2 thereof and registered or to be registered in the applicable Land Title Office;

"Other Amounts" means any other amounts that are payable by the Borrower to the Credit Union under this Agreement other than principal of the Construction Loan and interest thereon;

"Permitted Encumbrances" means Statutory Right of Way T11251, Statutory Right of Way V21830, Statutory Right if Way KX181130, Statutory Right of Way KX181142, Easement CA7187141, Statutory Right of Way CA7187142;

"Plans" means the plans for the Project;

"Prime Rate" means that rate of interest, regardless of compounding frequency, designated by the Credit Union from time to time as the reference rate to be used to determine the rate of interest to be charged on variable rate Canadian dollar loans made by the Credit Union (or if at any one time more than one such rate is so designated, the higher or highest of such rates as the case may be);

"Project" means the 102 unit residential condominium project locate in Rossland, BC, to be constructed on the Lands by or for the Borrower;

"Project Budget" means the budget for the Project;

"Project Costs" means all costs incurred by the Borrower in connection with the Project including

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) costs
 of professional advisors (including architects, engineers and lawyers);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) construction
 costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) interest
 on money borrowed to pay Project Costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) costs
 of insuring the Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) advertising
 and sales promotion costs; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) land
 acquisition costs;

but specifically not including any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Borrower's
 profit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) repayment
 of borrowed monies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) return
 of capital or any return of equity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) payment
 of any bonus to any person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) payment
 of wages or salary to any shareholder or director of the Borrower except as specifically
 authorized in writing by the Credit Union;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) payments
 of any nature or kind (whether pursuant to a contract or otherwise) to a person not at arm's
 length with the Borrower, except as specifically agreed to in writing by the Credit Union;

"Property" means all of the undertaking, property and assets of the Borrower subject to the Securities;

"Securities" means the Mortgage together with any and all other security documents to be provided by the Borrower to the Credit Union and described in Sections 3.1 and 3.2 hereof;

"Specifications" means the specifications for the Project.

COMMERCIAL CREDITMASTER® CONSTRUCTION LOAN AGREEMENT page 2 of 18

1.2 **Headings –** The headings
herein are inserted for convenience of reference only and will not affect the construction or interpretation of this Agreement.

1.3 **Governing Law –** This Agreement
will be governed by, and construed in accordance with, the laws of the Province of British Columbia.

1.4 **Submission to Jurisdiction -** The Borrower submits to the jurisdiction of the Courts of the Province of British Columbia and agrees to be bound by any suit,
action or proceeding commenced in such Courts and by any order or judgment resulting from such suit, action or proceeding, provided however
that the foregoing will in no way limit the right of the Credit Union to commence suits, actions, or proceedings based on this Agreement
or any of the Securities in any jurisdiction.

1.5 **Invalidity of Any Provision –** If any covenant, obligation or provision contained in this Agreement will be invalid or unenforceable, the remainder of this Agreement
will not be affected thereby and each covenant, obligation or provision of this Agreement will separately be valid and enforceable to
the fullest extent permitted by law.

1.6 **Conflict with Other Documents –** If the provisions of the Securities or any of them conflict with, or are inconsistent with, the provisions of this Agreement, the
provisions of this Agreement will prevail.

1.7 **Certificate of Officer of Credit Union –** A certificate signed by any officer (including a Branch Manager) of the Credit Union stating the Prime Rate which applied
on any day or during any period will be conclusive as to the respective rate which applied on that day or during that period, as the
case may be, without further proof.

1.8 **Amendments –** This Agreement
may only be amended from time to time in writing and any such amendment may be evidenced by memoranda or letters signed by an authorized
officer of the respective parties without the necessity of such amendment being executed under seal.

1.9 **Counterparts –** This
Agreement may be executed in any number of counterparts, each of which when so executed will be deemed to be an original and such counterparts
together will constitute one and the same agreement.

1.10 **Joint Obligations –** If
more than one person constitutes the Borrower the agreements of, and all obligations and covenants to *be* performed and observed
by, the Borrower hereunder will be the joint and several obligations and covenants of each of the persons comprising the Borrower and
any request or authorization given to the Credit Union by any of the persons comprising the Borrower will be deemed to be the joint and
several requests or authorizations of each of the persons comprising the *Borrower.* If there is a Covenantor and more than one
person constitutes the Covenantor the agreements of, and all obligations and covenants to be performed and observed by, the Covenantor
hereunder will be the joint and several obligations and covenants of each of the persons comprising the Covenantor.

1.11 **Date for Action –** If any
date on which any action required to be taken hereunder by either party is not a Business Day such action will be required to be taken
on the next following Business Day.

1.12 **Reference Date –** This Agreement
is dated for reference the 22<sup>nd</sup> day of December, 2022 for convenience of reference only and this Agreement will have full
force and effect when executed by the Borrower.

1.13 **Entire Agreement –** This
Agreement, including any schedules hereto, and the Securities constitute the entire agreement between the parties relating to the Construction
Loan, expressly superseding all prior agreements and communications (both oral and written) between any of the parties hereto with respect
to all matters contained herein, and except as stated herein or in the Securities or any other instruments and documents to be executed
and delivered pursuant hereto, contain all the representations and warranties of the respective parties.

1.14 **Included Words –** Whenever
the singular or the masculine is used herein the same will be deemed to include the plural or the feminine or the body corporate where
the context or the parties so require.

**PART 2 - AGREEMENT TO LEND**

2.1 **Construction Loan -** The Credit Union will lend to the Borrower, subject to, and upon the terms and
 conditions of this Agreement, on account of the Construction Loan, up to the least of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) $29,101,000.00;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) 75% of total approved Project
Costs; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) 75% of the appraised value of
the Project.

COMMERCIAL CREDITMASTER® CONSTRUCTION LOAN AGREEMENT page 3 of 18

The Credit Union reserves the right to reduce the amount of the Construction Loan by the amount by which actual construction costs of the Project are less than $39,906,000.00

**PART 3 - SECURITY**

3.1 **Security from Borrower –** Repayment of the Construction Loan and interest and costs thereon and performance of the covenants, agreements and obligations herein
and therein contained will be secured by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Mortgage including an Assignment of Rents

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) an
 Equitable Mortgage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a
 Beneficial Authorization and Charge Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) a
 general security agreement creating a first ranking security interest in all the Borrower's
 present and after-acquired property located on the Lands or used in connection with the Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) an
 Indemnity Agreement (the "Indemnity") from the Indemnitor indemnifying the Credit
 Union for all losses suffered by reason of making any and all loans to the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) a
 debt service and cost overrun agreement executed by the Indemnitor whereby the Indemnitor
 covenants:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to pay any deficiency in payment
by the Borrower of any debt service amount;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to pay any overrun from the
estimates in the Project budget in the costs of completion of the Project; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) not to further commit surplus
cash flow, without the prior written consent of the Credit Union;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) an
 environmental indemnity agreement in which the Indemnitor agrees to indemnify and save the
 Credit Union harmless for any losses, costs or expenses resulting from any hazardous substance
 in, on or under the Lands;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) an
 assignment by the Borrower in favour of the Credit Union of $1,833,000.00 on deposit by the
 Borrower in the Credit Union;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) an assignment of all construction
and development agreements and any pre-sale agreements to the Credit Union;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) an
 assignment and postponement by the Indemnitor of all shareholder's loans owed by the Borrower
 to the Indemnitor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) a
 patronage waiver;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) Loans consent forms from the
Indemnitor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) any other documents containing
such assurances, information and covenants as the Credit Union and/or their solicitors may reasonable require for the loan and the security.

3.2 **Further Security –** The
Borrower hereby assigns to the Credit Union as further security for repayment of the Construction Loan

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all
 Construction Contracts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all
 warranty rights relating to the Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all
 designs, Plans, Specifications, permits and licences relating to the Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) all
 Goods and Services Tax input credits relating to, or arising from, the Project; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) all
 Purchase and Sale Agreements for completed units in the Project,

and the Borrower will, at the request of the Credit Union, enter into specific assignments of the foregoing, in such form or forms of assignment as may be determined by the Credit Union in its sole and absolute discretion.

COMMERCIAL CREDITMASTER® CONSTRUCTION LOAN AGREEMENT page 4 of 18

3.3 **Demand –** Notwithstanding
that the Mortgage or any of the other Securities (if any) is expressed to be payable on demand, the Credit Union will not demand payment
under the Mortgage or the other Securities unless and until an Event of Default has occurred under this Agreement or unless and until
an event of default has occurred with respect to other indebtedness.

3.4 **Registration –** The Credit
Union will, at the expense of the Borrower, register, file or record the Security Interests in all offices where such registration, filing,
or recording is necessary or of advantage to the creation, perfection and preserving of the Security Interests and renew such registrations,
filings and recordings from time to time as and when required to keep them in full force and effect. The Borrower acknowledges that the
forms of this Agreement and the Securities have been prepared based upon the laws of British Columbia applicable thereto and the laws
of Canada applicable therein in effect at the date of this Agreement and that such laws may change. The Borrower agrees that the Credit
Union will have the right to require that the forms of this Agreement and any of the Securities be amended or supplemented to reflect
any changes in such laws, whether arising as a result of statutory amendments, court decisions or otherwise, in order to confer upon
the Credit Union the rights and security interests intended to be created hereby and thereby.

**PART 4 - ADVANCES**

4.1 **Advances –** The Construction
Loan will be advanced on a progressive draw basis based upon the value of work in place and the cost to complete the Project. There will
at all times be unadvanced an amount sufficient in the opinion of the Credit Union to complete the Project. Unless the Borrower otherwise
instructs the Credit Union, all advances of the Construction Loan will be made by way of deposit to the Account.

4.2 **Minimum Advances –** The minimum advance will be $500,000, except for the final advance.

4.3 **Frequency –** Advances
will be made no more frequently than once per month.

4.4 **Land Advance –** An advance for the purpose of assisting the Borrower to purchase the
 Lands will be made in an amount not exceeding $N/A.

4.5 **Borrower to Deliver –** The
Borrower will, prior to the initial advance of the Construction Loan, deliver the following to the Credit Union:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Plans and Specifications, for approval by the Credit Union;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 Project Budget, for approval by the Credit Union;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) copies
 of all Construction Contracts and all change orders issued pursuant to the Construction Contracts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the
 proposed construction time schedule for the Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the
 projected cash flow for the Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) a
 copy of the report of the geotechnical engineer reporting on the soil tests conducted on
 the Lands;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) copies
 of the development or building permits issued by the municipality or other local government
 unit with respect to the Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) a
 list of all architects, engineers, contractors, subcontractors and others engaged to perform
 work or services with respect to the Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) evidence
 satisfactory to the Credit Union that all land use zoning and other regulatory requirements
 have been complied with (or can, be complied with) and that all required building or development
 permits in connection with the Project have been issued;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) evidence
 satisfactory to the Credit Union that the Lands (including any groundwater under the surface
 of the Lands) comply with all applicable environmental laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) if
 requested by the Credit Union, an environmental review of the Lands prepared by an environmental
 consultant satisfactory to the Credit Union, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a
 first stage preliminary site investigation (as described in the Contaminated Sites Regulations
 to the *Waste Management Act* R.S.B.C. 1996, chap.482) of the Lands, or if required
 by the Credit Union a second stage preliminary site investigation or a detailed site investigation
 (each as described in the Contaminated Sites Regulations to the *Waste Management Act* R.S.B.C.
 1996, chap.482);

COMMERCIAL CREDITMASTER® CONSTRUCTION LOAN AGREEMENT page 5 of 18

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) details
 of any remediation required to permit the Lands to be used for the purpose contemplated by
 the Project; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) estimates
 of the costs of such remediation and the length of time it will take to complete, including
 obtaining any necessary certificates of compliance from the Ministry of Environment or other
 applicable government authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) evidence
 satisfactory to the Credit Union that all utility services (including electricity, water,
 sanitary sewer, storm sewer and telephone) are available for the Project; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) evidence
 satisfactory to the Credit Union that there is vehicular and pedestrian access to the Lands
 from a public street, road or highway.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) copies
 of insurance policies evidencing the insurance coverage requirements set out in Schedule
 "A";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) confirmation
 that the Project has been accepted for insurance under the New Home Warranty Program;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) an
 appraisal, from an independent and licensed appraiser acceptable to the Credit Union;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) formal
 budget review completed by the Quantity Surveyor confirming that the Project budget of $38,801,000
 provides sufficient funds to complete the Project as proposed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) confirmation
 by the Quantity Surveyor of a minimum of $7,805,000 of Borrower Equity as outlined in the
 Financing Program;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) confirmation
 that the Borrower has arranged for the construction of the Project with DJM Contracting Ltd.
 on a construction management basis. All major construction sub-trades are to be arranged
 by way of fixed-price contracts, such that a minimum of 70% of the Hard Cost budget is arranged
 by way of fixed-price contracts, or satisfactory equivalents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) evidence
 satisfactory to the Credit Union of sufficient firm pre-sales to generate a minimum of $29,101,000
 of gross revenue, excluding applicable GST. All pre-sales to be accompanied by minimum 10%
 deposits that are to be held in trust or bonded as outlined in the CreditMaster Construction
 Loan – Commitment Letter dated July 11, 2022 (the "Commitment Letter").
 The deposits shall be held in trust by the solicitor at the Credit Union, or any such other
 manner as approved by the Credit Union, at the Credit Union's sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) a
 certificate from an officer of the Borrower confirming that there is no outstanding breach
 of any covenant, representation, or warranty contained in this Agreement or in the Securities;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) such
 other information as the Credit Union may reasonably request and as further set out in the
 Commitment Letter.

4.6 **Conditions Precedent (To Initial Advance) –** It will be a condition precedent to the initial advance under the Construction Loan that

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Credit Union will have received the documents and information specified in section 4.5;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 Credit Union will have received from the Borrower's legal counsel an opinion in form and
 substance satisfactory to the Credit Union in its sole discretion; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 Borrower will have duly authorized, executed and delivered the Securities and the Securities
 will have been registered, filed and recorded in all offices in which, in the opinion of
 the Credit Union, acting reasonably, registration is necessary or of advantage to preserve
 or perfect the priority of the security interests intended to be created thereby.

4.7 **Conditions Of All Advances (Including the Initial Advance) –** The Credit Union will not be required to make any advance under the Construction Loan unless it
has received two full Business Days prior written notice of the Borrower's intention to call for an advance under the Construction Loan.
Each time the Borrower wishes an advance to be made under the Construction Loan (except for an advance to finance the acquisition of
the Lands) the Borrower will provide to the Credit Union the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) claim
 for progress draw ("Progress Claim") containing a breakdown of all subtrade accounts,
 which will, if the Credit Union requires, be accompanied by a statutory declaration of the
 Borrower declaring that all subtrade accounts for the Project for the period ending 30 days
 immediately preceding the Progress Claim have been paid in full, except for statutory holdback
 requirements;

COMMERCIAL CREDITMASTER® CONSTRUCTION LOAN AGREEMENT page 6 of 18

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) project
 cost summary ("Project Cost Summary") of the Borrower in a form approved by the
 Inspector, which will set out pursuant to the Project Budget:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 original estimates of the cost of completion of the Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 present estimate of the cost of completion of the Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the
 percentage of the Project completed to date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the
 value of the construction covered under the Progress Claim;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the
 variance from original Project Budget; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the
 breakdown of expenditures among direct construction costs and specific soft costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a certificate from the Inspector
that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all
 construction has been performed according to the Plans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) construction
 is progressing according to the construction timetables approved by the Credit Union;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the
 portion of the Progress Claim pertaining to direct construction costs represents work actually
 completed on the Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the
 estimate of cost to complete as set out in the Project Cost Summary is reasonable, accurate,
 and sufficient to complete the Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) construction
 procedures, quality of materials, and standard of labour are acceptable; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) permits
 and approvals required for the completion of the Project are in hand;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) a
 satisfactory report from the Credit Union's solicitors following a land title office search
 on the Property immediately before the advance, showing the Lands as being encumbered only
 by the Mortgage and Permitted Encumbrances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) a
 list of hard and soft costs. This listing is to be reviewed by the Quantity Surveyor, who
 will be requested to provide opinions confirming that the costs are realistic for a project
 of this size. The Credit Union would require that the Quantity Surveyor be contracted, at
 the Borrower's expense, to approve all draw requests beyond the first approved draw as set
 forth in the Commitment Letter and ensure the same is completed on a "cost to complete"
 basis. Progress advances will be made based on the percentage and value of work in place
 and the cost to complete as certified by the Quantity Surveyor; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) a
 certificate (which, at the Credit Union's discretion, may be incorporated into the certificate
 to be delivered under section 4.5(r)) from an officer of the Borrower confirming that there
 are no outstanding breaches of any covenant, representation, or warranty contained in this
 Agreement or the Securities.

4.8 **Surveyor's Certificate –** No advance will be made after the foundations for the Project are in place
 until the Borrower has provided to the Credit Union a surveyor's certificate and a plan of
 survey indicating the boundaries of the Lands, the location of the foundations thereon and
 certification that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all
 foundations are wholly within the boundaries of the Lands;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) that
 the location of the foundations is in compliance with all municipal and civic siting bylaws
 and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) that
 the Property is free of any easements, except easements for public utilities and similar
 charges that do not affect the marketability of the Property and are consistent with its
 use;

(or, where such is not the case, specific identification of encroachments or non-compliance).

Such plan of survey is also to include lot lines, improvement location lines in relation to lot lines, building dimensions, location of easements and right of way, and coverage.

As construction of the Project progresses, the Credit Union may require updated plans of survey and surveyor's certificates with respect to the location of all improvements on the Lands. The cost of all surveys is to be borne by the Borrower.

COMMERCIAL CREDITMASTER® CONSTRUCTION LOAN AGREEMENT page 7 of 18

4.9 **Requirements for Final Advance –** Before the final advance of the Construction Loan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Inspector shall have provided an inspection report certifying completion of the Project (except
 for minor deficiencies approved by the Credit Union), and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 Borrower shall have delivered to the Credit Union an occupancy permit or similar document
 with respect to the Project issued by the municipality or other local government unit in
 which the Lands are located.

4.10 **Statutory Lien Holdback(s) –** The Borrower is responsible for making the statutory lien holdback under the *Builders Lien Act.* Failure to properly
make the holdback is a default under this Agreement.

If a separate lien holdback account or accounts are required to be opened by the Borrower under the *Builders Lien Act,*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Borrower will open and maintain separate lien holdback accounts with the Credit Union in
 respect of each contract entered into by the Borrower (except in respect of material suppliers,
 architects, engineers and workers); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 Borrower will pay the Credit Union the Credit Union's standard fee for lien holdback accounts
 for each account to be opened, payable when the first account is opened

If separate lien holdback accounts are not required by the *Builders Lien Act,* the Borrower may, but will not be required to, open a separate account in the Credit Union into which to pay the required lien holdback.

The Borrower authorizes the Credit Union to disburse from each advance of the Construction Loan the holdback amounts directly into the appropriate lien holdback account or accounts. These amounts will be considered advanced and the Borrower is responsible for proper disbursement of the holdback amounts. Before each progress advance, the Borrower will provide to the Credit Union all information necessary to calculate the correct amount to be advanced to holdback accounts in respect of each contract.

4.11 **Closing Date –** If
the final advance of the Construction Loan is not made by the Balance Due Date, at the option of the Credit Union, the Credit Union's
commitment to advance may be closed off and no further advances made and the outstanding balance will be due and payable.

4.12 **Termination of Agreement to Advance –** At the Credit Union's option the Credit Union's
 agreement to advance the Construction Loan may be cancelled and all monies advanced together
 with interest and costs will be due and payable if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) construction
 of the Project is not commenced within 60 days of the date of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 Mortgage is not executed and registered and the first advance made within 90days of the date
 of this Agreement;

4.13 **No Readvances –** Advances
on account of the Construction Loan once repaid by the Borrower will not *be* readvanced by the Credit Union.

**PART 5 - INTEREST AND REPAYMENT**

5.1 **Interest Rate [Floating Rate] –** The outstanding balance of the Construction Loan will bear
 interest at a rate of interest (the "Interest Rate")at all times 0.45% per cent
 per annum in excess of the Prime Rate in effect from time to time, compounded monthly not
 in advance as well after as before each of maturity, default and judgment. If and whenever
 the rate of interest constituting the Prime Rate is varied the interest rate payable hereunder
 will also be varied, effective on the date the change in the rate constituting the Prime
 Rate comes into effect so that at all times the Interest Rate will be 0.45% per cent per
 annum in excess of the Prime Rate then in effect. The Borrower acknowledges that the Prime
 Rate as December 6, 2022 was 7.0% and is subject to change at any time without notice.

5.2 **Payments –** The
Borrower will pay to the Credit Union:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) on
 the first day of each month the Borrower will pay all accumulated interest; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Principal
 will be repaid by 100% of the net sale proceeds from the strata units created on the Lands;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) on
 the Balance Due Date the Borrower will pay the whole of the balance of the Construction Loan,
 all accrued and unpaid interest and all Other Amounts.

COMMERCIAL CREDITMASTER® CONSTRUCTION LOAN AGREEMENT page 8 of 18

5.3 **Use of Payments –** The
Credit Union will apply all payments received from the Borrower, including prepayments, in such order as the Credit Union decides.

5.4 **Place of Payments –** The Borrower will make all payments
 under this Agreement at the address of the Credit Union set out on page 1 of this Agreement or at any other address specified by the
 Credit Union.

5.5 **Time of Payments –** Payments
received after 2:00 p.m. (Pacific time) on a Business Day or received on a day which is not a Business Day will be considered received
on the next Business Day of the Credit Union's branch or office where the payment was made.

5.6 **Payments from Account -** The Borrower hereby authorizes the Credit Union to charge any payments of principal, interest or principal and interest to the Account
when the same become payable. Funds will be drawn from the interest reserve account for payment of the interest on the loan. In the event
that the interest account is fully drawn, the Borrower must provide capital to satisfy monthly interest demands. The interest reserve
will be funded with an initial tranche of $500,000. Additional draws will be funded from the draw advances to a maximum of four additional
tranches.

**PART 6 - PREPAYMENT**

6.1 **Prepayment (Open) –** The Borrower has the right, at any time when not in default hereunder or under
 the Securities, to prepay the whole or any portion of the balance outstanding under this
 Agreement without notice or bonus provided that any such payments will be applied first to
 interest accrued to the date of payment and second to principal and provided further that
 any such payment will not be taken in substitution of any monthly instalment.

**PART 7 - LENDER'S FEES**

7.1 **Application Fee** – The Borrower acknowledges that the
 Application Fee of $291,000.00 has been earned and that $50,000 of which has been paid, the balance of which will  ***be*** paid
 upon funding of the initial advance.

7.2 **Annual Administration / Annual Review Fee –** The Borrower acknowledges that an Annual Administration / Annual Review Fee in the amount of
$1,000.00 is due and payable on the 1<sup>st</sup> day of June, 2023 and payable on the 1<sup>st</sup> day of June in each and every
year thereafter during the currency of the Loan.

7.3 **Discharge Fee –** The
Borrower acknowledges that a Discharge Fee in the amount of $250.00 will be charged in the event that a request to execute a discharge
of the mortgage in presented and for each Form C discharge.

7.4 **Draw Fee –** The
Borrower acknowledges that a Draw Fee in the amount of $250.00 will be charged for each draw plus the cost of each construction report.

7.5 **Extension Fee –** The
Borrower acknowledges that a fee of 0.25% per 3 months will be charged for an extension beyond maturity of the loan.

7.6 **Inspection Fees –** Progress
inspections will be performed at the Borrower's expense by the Inspector from time to time as required by the Credit Union and prior
to each advance. Inspection fees in the amount of $250.00 will be charged for each advance.

**PART 8 - REPRESENTATIONS AND WARRANTIES**

8.1 **Representations and Warranties –** The Borrower represents and warrants to the Credit Union that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Corporate Status –** if the Borrower is a corporation, it is duly incorporated and is in good standing
 under the laws of the Province of British Columbia;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Corporate Powers and Authority –** if the Borrower is a corporation, the Borrower has the power and
 authority to carry on the business now being carried on by it and has the full power and
 authority to enter into this Agreement and to execute and deliver the Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Corporate Proceedings –** if the Borrower is a corporation, all necessary and requisite corporate
 proceedings, resolutions and authorizations have been taken, passed, done and given by the
 Borrower and by the Borrower's directors to authorize, permit and enable the Borrower:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to borrow the Construction
Loan from the Credit Union;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to execute and deliver this
Agreement; and

COMMERCIAL CREDITMASTER® CONSTRUCTION LOAN AGREEMENT page 9 of 18

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to execute and deliver the
Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Not Contravene Constating Documents –** if the Borrower is a corporation, neither the borrowings
 nor the issue of the Securities will be in contravention or constitute default under the
 constating documents of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Not Contravene Any Agreement –** neither the borrowings nor the issue of the Securities will
 be in contravention or constitute default under any indenture, deed, agreement, undertaking
 or obligation of the Borrower or to which the Borrower is a party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **No Action or Proceedings –** there are no actions or proceedings pending or, to the
 knowledge of the Borrower threatened which challenge the validity of this Agreement, the
 validity of any of the Securities or which might result in a material adverse change in the
 financial condition of the Borrower or any covenantor, indemnitor or guarantor or which would
 materially adversely affect the ability of the Borrower or any covenantor, indemnitor or
 guarantor to perform its/their obligations under this Agreement, the Securities or any other
 document in connection herewith.

**PART 9 - POSITIVE COVENANTS**

9.1 **General Covenants –** The Borrower covenants with the Credit Union:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Corporate Existence –** that,
if it is a corporation, it will at all times maintain its corporate existence;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Conduct Business –** that it will carry on and conduct its business in a proper, efficient
 and businesslike manner and in accordance with good business practices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Books of Account –** that it will keep or cause to be kept proper books of account in accordance
 with sound accounting practice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Title to Property –** that it has good title and possession of the Property save Permitted Encumbrances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Insurance –** that it will obtain and keep in force insurance which meets the requirements set out
 in Schedule "A" and whenever and to the extent required in writing by the Credit
 Union, the Borrower will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) furnish
 a certificate by an independent appraiser or insurance adjuster selected by the Borrower
 and approved by the Credit Union as to the sufficiency of such insurance, which certificate
 will be conclusive as against the Borrower both as to the amount of insurance required hereunder
 and the perils against which coverage is required hereunder and the Borrower will immediately
 insure in accordance with such certificate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) cause
 to be endorsed in such form as may be required by the Credit Union on the policies evidencing
 such insurance a notation that any amounts payable under such policies will be paid to the
 Credit Union as its interest may appear; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) deposit
 with the Credit Union every policy and renewal certificate for such insurance or a certified
 copy thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Other Indebtedness –** that it will pay and discharge as they become due all payments due and
 owing under, or with respect to, any previous indebtedness created or security given by the
 Borrower to any person or corporation and will observe, perform and carry out all the terms,
 covenants, provisions and agreements relating thereto and any default in payment of any monies
 due and payable under or relating to any previous indebtedness or security or in the observance,
 performance or carrying out of any of the terms, covenants, provisions and agreements relating
 thereto will be deemed to be a default hereunder at the option of the Credit Union and any
 and all remedies available to the Credit Union hereunder by reason of any default hereunder
 or by law or otherwise will be forthwith available to the Credit Union upon any default of
 the Borrower under the previous security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Costs Caused By Default –** that if the Borrower defaults in any covenant to be performed by
 it hereunder or under the Securities the Credit Union may perform any covenant of the Borrower
 capable of being performed by the Credit Union and if the Credit Union is put to any costs,
 charges, expenses or outlays to perform any such covenant, the Borrower will indemnify the
 Credit Union for such costs, charges, expenses or outlays and such costs, charges, expenses
 or outlays incurred by the Credit Union (including solicitors' fees and charges incurred
 by the Credit Union) may be charged by the Credit Union to the Account and will be secured
 by the Securities;

COMMERCIAL CREDITMASTER® CONSTRUCTION LOAN AGREEMENT page 10 of 18

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **Court Costs –** that in any judicial proceedings taken to enforce this Agreement and the covenants
 of the Borrower hereunder or to enforce or redeem the Securities or to foreclose the interest
 of the Borrower in any property subject thereto the Credit Union will be entitled to costs
 on a special costs basis. Any costs so recovered will be credited against any solicitors'
 fees and charges paid or incurred by the Credit Union relating to the matters in respect
 of which the costs were awarded and which may have been charged by the Credit Union to the
 Account in accordance with clause (g) above;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **Shares –** that it will purchase $25.00 of equity shares in the capital of the Credit Union and
 will maintain that investment during the currency of this Agreement.

9.2 **Construction Covenants -** The Borrower will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Complete Project –** proceed to complete the Project with diligence and continuity in a good
 and workmanlike manner, in accordance with sound building and engineering practices and in
 accordance with the Plans and Specifications approved by **  the Credit Union;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Changes to Plans and Specifications –** not make changes to the Plans or the Specifications without
 the Credit Union's prior written consent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Not Cease Work –** not permit cessation of work on the Project prior to completion for a period
 in excess of 30 days without the prior written consent of the Credit Union, unless cessation
 is caused by factors which in the opinion of the Credit Union, acting reasonably, are beyond
 the control of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Correct Defects –** correct promptly upon notice from the Credit Union any defects in construction
 of the Project or unapproved deviations from the Plans and Specifications;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Only Pay Project Costs –** use amounts advanced hereunder by the Credit Union only for the payment
 of Project Costs and for no other purpose;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Pay Excess –** pay from sources other than amounts advanced hereunder by the Credit Union the
 Project Costs in excess of the amounts advanced hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Ensure Unadvanced Construction Loan Sufficient –** ensure that the amount unadvanced hereunder
 will at all times be sufficient to pay the Project Costs necessary to complete the Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **Notify Credit Union –** promptly
notify the Credit Union of any deviations from the Project budget.

9.3 **Substantial Completion -** Upon substantial completion of the Project the Borrower will provide the Credit Union with

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) an
 occupancy certificate or similar certification by the municipality or other local government
 unit certifying that the Project may be occupied; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) one
 set of "as-built" Plans.

9.4 **During Construction –** During
construction the Borrower will

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) provide
 to the Credit Union, at least monthly, status reports (including copies of the engineer's
 and/or the quantity surveyor's reports) with respect to the Project containing such information
 concerning the Project as the Credit Union may reasonably require;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) permit
 the Credit Union and its employees and agents access to the Project site and will permit
 such persons to enter and inspect the Project; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) keep
 and will permit the Credit Union and its employees and agents at all reasonable times to
 examine and copy books and records of the Borrower pertaining to the Project and all contracts,
 statements, invoices, bills and claims for labour, materials and services supplied for the
 Project.

9.5 **Sign –** While the
Construction Loan is outstanding the Borrower will permit the Credit Union to post a sign at the Project indicating that construction
financing is being provided to the Borrower by the Credit Union.

COMMERCIAL CREDITMASTER® CONSTRUCTION LOAN AGREEMENT page 11 of 18

9.6 **Financial and Other Information –** The Borrower will supply to the Credit Union:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) annual
 year-end financial statements prepared by an accounting firm with CGA, CMA or CA credential,
 within 120 days of the Borrower's fiscal year end;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) updated
 personal net worth statements on the personal indemnitor at a minimum every two years;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) evidence
 of payment of property taxes for all mortgaged properties within 60 days of the tax due date;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) all
 such other financial and other information as reasonably requested by the Credit Union.

**PART 10 - NEGATIVE COVENANTS**

10.1 **Covenants –** The Borrower
covenants with the Credit Union that the Borrower will not, without the consent in writing of the Credit Union first had and obtained:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Grant Security –** make, give or create or attempt to make, give or create any mortgage, charge,
 lien or encumbrance upon the Property or any part or parts thereof ranking or purporting
 to rank prior to or pari passu with the Securities or any of them;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Sell Property –** make any sale or dispose of any substantial part of the Property at less than
 market value and then only in the ordinary course of business and if the Borrower disposes
 of the whole or any substantial part of the Property it will hold the proceeds of the sale
 thereof in trust for the Credit Union;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Prepay Obligations –** subject to the provisions of Article 6 hereof, pay or satisfy, before
 the due date thereof, any obligation of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Payments Out of Usual Course –** make any payments to any person other than in the normal
 course of the Borrower's business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Salaries –** pay
salaries, bonuses or other remuneration to

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any
 shareholder, director or officer of the Borrower (if the Borrower is a corporation), or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any
 person related by blood or marriage to any of the persons described in (i) above, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any
 person related by blood or marriage to the Borrower (if the Borrower is an individual),or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any
 corporation controlled by the Borrower or by the Borrower and the Borrower's associates (within
 the meaning of **the** word "associate" as defined in the *Canada Business Corporations Act,* R.S.C. 1995, c. C-44),

in any calendar year in aggregate in excess of the amount prescribed by the Credit Union from time to time in writing (and if no amount is prescribed the amount will be the amount paid in the calendar year prior to the calendar year in which this Mortgage is executed);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Pay Shareholders' Loans –** if it **is** a corporation, make any payment (whether for principal,
 interest or otherwise) on account of indebtedness owing to, or when initially incurred was
 owing to, shareholders or directors of the Borrower or related companies and individuals;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Make Loans –** make loans or extend credit to any person (including specifically if it
 is a corporation, any directors, officers or shareholders of the Borrower and any person
 related by blood or marriage to such persons or any corporation controlled by such person
 or relative or by the Borrower) except customers of the Borrower in the ordinary course of
 business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **Reduce Capital –** if
it is a corporation, purchase or redeem any of its shares or otherwise reduce its share capital;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **Alter Share Structure -** if it is a corporation, in any way vary or alter its share structure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) **Declare Dividends –** if it is a corporation, declare or provide for any dividends or other payments
 based upon share capital;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) **Borrow Elsewhere –** raise or borrow any money from any person other than the Credit Union, members
 of the Borrower and trade creditors in the ordinary course of business;

COMMERCIAL CREDITMASTER® CONSTRUCTION LOAN AGREEMENT page 12 of 18

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) **Guarantee –** guarantee, indemnify any person for, or endorse for accommodation, the obligations
 of any other person, directly or indirectly;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) **Sell Property –** sell, agree to sell or otherwise dispose of any of the Property subject to
 a specific mortgage or charge under the Securities.

**PART 11 - EVENTS OF DEFAULT**

11.1 **Events of Default –** The
whole of the outstanding balance of the Construction Loan (including principal, interest and all Other Amounts) will immediately become
due and payable and the Securities will become enforceable in each and every of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** **Default –** if the Borrower fails to observe or perform something hereby required to be done or
 some covenant or condition hereby required to be observed or performed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** **Permits To Be Done –** if the Borrower does, or permits to be done, anything which the Borrower
 has herein agreed not to do or permit to be done;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)** **Misrepresentation –** if any representation or warranty given by the Borrower (or any director or officer
 thereof if the Borrower is a corporation) is untrue in any material respect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)** **Winding Up –** if the Borrower is a corporation and if an order is made or a resolution passed
 for the winding-up of the Borrower, or if a petition is filed for the winding-up of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)** **Bankruptcy –** if the Borrower commits or threatens to commit any act of bankruptcy or becomes insolvent
 or makes an assignment or proposal under the *Bankruptcy and Insolvency Act* or a general
 assignment in favour of its creditors or a bulk sale of its assets, or if a bankruptcy petition
 is filed or presented against the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f)** **Arrangement –** if the Borrower is a corporation and if any proceedings with respect to the Borrower
 are commenced under the *Companies Creditors Arrangement Act;* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(g)** **Execution Etc. –** if any execution, sequestration, extent or any other process of any Court become
 enforceable against the Borrower or if a distress or analogous process is levied against
 the property of the Borrower or any part thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(h)** **Other Indebtedness –** if the Borrower permits any sum which has been admitted as due by the
 Borrower or is not disputed to be due by the Borrower and which forms or is capable of being
 made a charge upon any of the Property in priority to the Securities to remain unpaid after
 proceedings have been taken to enforce the same as a prior charge;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)** **Default in Other Payment –** if the Borrower defaults in payment of any indebtedness or liability
 to the Credit Union (whether secured hereby or not) or to any other lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(j)** **Sale or Lease –** if, without the prior written consent of the Credit Union, the Borrower sells,
 agrees to sell, leases, agrees to lease or otherwise disposes or agrees to dispose of the
 Lands or any part or parts thereof or any interest therein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(k)** **Mortgage or Encumbrance –** if, without the prior written consent of the Credit Union, the Borrower
 grants or agrees to grant any further mortgage of the Lands or any part or parts thereof
 or any interest therein or otherwise permits the Lands to be encumbered in any manner other
 than by encumbrances specifically permitted hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(I)** **Construction Contract Default –** if the Borrower defaults under any construction contract entered into
 by the Borrower with respect to the Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(m)** **Change of Control –** if the Borrower is a corporation and if, without the prior written consent
 of the Credit Union, there is in the opinion of the Credit Union a change of effective control
 of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(n)** **Change in Risk –** if, in the sole opinion of the Credit Union, a material adverse change in risk
 occurs; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(o)** **Default Under Securities –** if an event of default occurs under any of the Securities.

11.2 **Waiver –** The Credit
Union may waive any Event of Default, provided always that no waiver by the Credit Union or any failure to take any action to enforce
its rights or to enforce any security will extend to or be taken in any manner whatsoever to affect any subsequent Event of Default or
the rights resulting therefrom.

COMMERCIAL CREDITMASTER® CONSTRUCTION LOAN AGREEMENT page 13 of 18

11.3 **Completion of Project -** If an Event of Default occurs and is continuing the Credit Union may, in addition to any other remedies which it has under the Securities,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) enter
 upon the Lands and complete the Project in accordance with the Plans and Specifications with
 such changes therein as the Credit Union may in its absolute discretion deem appropriate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) discontinue
 at any time any work commenced on the Project or change any course of action undertaken by
 the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) assume
 any Construction Contract and take over and use all or any part of the labour, materials,
 supplies and equipment contracted for by the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) engage
 builders, contractors, architects, engineers and other persons and trades as may be necessary
 for the purpose of completing the construction of the Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) pay,
 settle or compromise all bills or claims which may become liens against the Lands; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) generally
 to take or refrain from taking such action hereunder as the Credit Union may from time to
 time determine.

The Borrower hereby irrevocably constitutes and appoints the Credit Union as its true and lawful attorney in order to complete the foregoing.

11.4 **Reimbursement –** The
Borrower will immediately reimburse the Credit Union on demand for any amount paid under section 11.3 and until reimbursement the amount
paid will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) bear
 interest from the date incurred by the Credit Union at the Interest Rate; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) be
 secured by the Securities.

11.5 **Remedies Not Restrictive –** All remedies stipulated for by the Credit Union hereunder or in any of the Securities will be deemed to be in addition to and not
restrictive of the remedies which the Credit Union might be entitled to at law or in equity and the Credit Union may realize any of the
Securities or any part thereof in such order as it may be advised and any such realization by any means will not bar realization of any
other security or any part or parts thereof nor will any single or partial exercise of any right or remedy preclude any other or further
exercise thereof nor will the failure on the part of the Credit Union or any delay in exercising any rights under this Agreement or any
of the Securities operate as a waiver.

11.6 **Set Off –** If an Event
of Default has occurred and is continuing, in addition to and not in limitation of any rights now or hereafter granted under applicable
law or the Securities, the Credit Union may without notice to the Borrower and at any time and from time to time set-off, apply or transfer
any or all sums owing from time to time by the Lender to the Borrower towards the satisfaction of the outstanding balance of the Construction
Loan (including principal, interest and Other Amounts).

11.7 **Indemnity –** Notwithstanding
any other provision of this Agreement, the Borrower will fully indemnify and hold the Credit Union harmless from and against any loss,
expense, damage or liability incurred by it which the Credit Union may sustain or incur as a result of any Event of Default.

**PART 12 - NOTICES**

12.1 **Notices –** All
notices which may or are required to be given herein or pursuant to this Agreement or relating to the Securities shall be in writing
and may be given

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) personally
 by serving the same upon the party (or any officer of the party if it is a corporation) to
 be served, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) by
 mail by posting the same by prepaid registered mail addressed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to the Borrower at:

P.O. Box 670, Rossland, BC, V0G 1Y0

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to the Credit Union at:

Suite 200, 605 - 20<sup>th</sup> Street, Castlegar, BC, V1N 2P2

COMMERCIAL CREDITMASTER® CONSTRUCTION LOAN AGREEMENT page 14 of 18

or such other addresses as the parties may advise by notice in writing, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) by facsimile transmission to
the following telephone numbers but addressed in the manner set out in (b):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to the Borrower at _____ - ________,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to the Credit Union at 250-304-2896

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to the Covenantor at ____ - _______,

or such other facsimile telephone numbers as the parties may advise by notice in writing.

12.2 **Receipt of Notice –** Subject to sections 12.3 and 12.4, any notice shall be deemed to have been received and effectively served

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if served personally, at the
time of delivery,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if mailed, on the third Business
Day following posting, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if sent by facsimile transmission,
at the time of transmission.

12.3 **Deemed Receipt Next Business Day –** Notwithstanding any other provisions of this Agreement any notice received or otherwise deemed received after 4:30 p.m.
(Pacific time) on a Business Day or on a day which is not a Business Day will be deemed to have only been received on the next Business
Day.

12.4 **Delays –** In the
event that, at the time a notice is mailed or at any time during the period of three Business Days following such mailing, postal or
airline or airport employees are engaged in a strike, work slowdown or other work stoppage at the place at which the notice is mailed
or at the place to which the notice is mailed or at any point through which such notice must pass, such notice will be deemed to have
been given and received at the time when such notice would be received in the ordinary course of the mails, allowing for such strike,
work slowdown or other work stoppage.

**PART 13 - TERMINATION**

13.1 **Termination of Agreement –** This Agreement will continue in full force and effect until the outstanding balance of the Construction Loan (including principal,
interest and all Other Amounts) has been paid in full.

**PART 14 - GENERAL**

14.1 **No Obligation to Advance Construction Loan –** Notwithstanding any other provisions hereof neither the execution of this Agreement nor the execution and
delivery of the Securities or any other security required and from time to time given by the Borrower to the Credit Union will bind the
Credit Union to advance the Construction Loan nor will the advance of any part thereof bind the Credit Union to advance any unadvanced
portion thereof.

14.2 **Records –** The
information in the records of the Credit Union as to the Account and as to the Borrower being in default of this Agreement or the Securities
or any of them and the amount outstanding hereunder and thereunder will be *prima facie* evidence of the obligations of the Borrower
hereunder and under the Securities. The Borrower will, on reasonable notice to the Credit Union, be entitled to obtain extracts of all
entries made in such records.

14.3 **Costs –** The Borrower
will pay the costs of and incidental to the drawing, execution and delivery of this Agreement and of the drawing, execution, delivery
and registration of the Securities or any other securities required to or from time to time given by the Borrower to the Credit Union
and at its option the Credit Union may pay the said costs for the account of the Borrower out of the monies to be advanced on account
of the Construction Loan or may debit the Account for the said costs.

14.4 **Service Charges –** The Borrower will pay to the Credit Union the Credit Union's applicable handling and service charges in connection with the Account
and the handling and processing of cheques drawn thereon.

14.5 **Assignment by Borrower –** The Borrower will not be entitled to assign any of its rights hereunder except with the prior written consent of the Credit Union.

COMMERCIAL CREDITMASTER® CONSTRUCTION LOAN AGREEMENT page 15 of 18

14.6 **Assignment by Credit Union –** The Credit Union may assign its rights hereunder, in whole or in part, but will not assign its rights or any interest under any
of the Securities without also assigning the same proportionate rights or interest in this Agreement to the assignee of the Securities.

14.7 **Solicitor's Opinion –** The
whole of the arrangements described in this Agreement are subject to the solicitors for the Credit Union being satisfied as to the title
of the Property, the form and content of the Securities, the corporate status of the Borrower and any corporate covenantor and as to
all legal matters pertaining to the Construction Loan and compliance with the conditions herein, subject always to the right of the solicitors
for the Credit Union to require an opinion from the solicitors for the Borrower pertaining to any of the aforesaid.

14.8 **Further Assurances –** The
Borrower will do, execute and deliver, or will cause to be done, executed and delivered, all such further acts, documents (including
certificates, declarations, affidavits, reports and opinions) and things as the Credit Union may reasonably request for the purpose of
giving effect to this Agreement or for the purpose of establishing compliance with the representations, warranties and conditions of
this Agreement or any of the Securities.

14.9 **Non-Merger –** The taking
of a judgment or judgments or any other action or dealing whatsoever by the Credit Union In respect of any security given by the Borrower
to the Credit Union will not operate as a merger of any.indebtedness of the Borrower to the Credit Union or in any way suspend payment
or affect or prejudice the rights, remedies and powers, legal or equitable, which the Credit Union may have in connection with such indebtedness
and the foreclosure, surrender, cancellation or any other dealing with any such security will not release or affect the liability of
the Borrower, or release or affect any of the Securities or any other security held by the Credit Union.

14.10 **Examinations of Books Etc. –** The Credit Union will have the right whenever it deems reasonably necessary either by its officers or authorized agents to enter
upon the Borrower's premises and to inspect the undertaking, property and assets of the Borrower, all books of account and records of
the Borrower and copies of all returns made from time to time by the Borrower to boards, agencies or governmental departments (including
the Department of National Revenue) and to make extracts therefrom and generally to conduct such examinations as it may see fit and without
limiting the generality of the foregoing, the Credit Union may request information from the solicitor, auditor and other advisors and
agents of the Borrower for the time being concerning the affairs and the conduct of business of the Borrower and the Borrower hereby
irrevocably authorizes and directs and this will constitute the sufficient authority and direction to any such solicitor, auditor or
other person to disclose to the Credit Union such information as to any and all matters touching upon the affairs and conduct of the
business of the Borrower whether of confidential nature or otherwise and any costs, expenses and outlays which the Credit Union may incur
pursuant hereto may be charged to the Account.

14.11 **Extension of Dates –** The Credit Union may extend all relevant dates, including those contained in this Agreement in the event of fires, strikes, and Acts
of Gold and other events beyond the Borrower's reasonable control and the Borrower will pay all resulting costs to the Credit Union of
extending the date or dates.

14.12 **Enurement –** This Agreement
and all its provisions will enure to the benefit of and be binding upon the parties hereto, their successors and assigns.

14.13 **Statute References** - A reference in this document to a particular statute means the statute as
 amended from time to time and any statue substituted therefore.

COMMERCIAL CREDITMASTER® CONSTRUCTION LOAN AGREEMENT page 16 of 18

**SIGNATURES**

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date(s) set forth below.

---

| | |
|:---|:---|
| **HANNAH CREEK LIMITED PARTNERSHIP** |  |
| By its General Partner: **RED DEVELOPMENT COMPANY LTD.** |  |
|  | January 19, 2023 |
| (Name of Borrower) | (Date) |
| by its authorized signatory(ies) |  |
| /s/ Howard I. Katkov |  |
| Howard I. Katkov |  |
| Donald J. Thompson |  |
| KOOTENAY SAVINGS CREDIT UNION |  |
| (Name of Credit Union) | (Date) |
| by its authorized signatory(ies) |  |
| Authorized Signatory |  |
| Authorized Signatory |  |

---

COMMERCIAL CREDITMASTER® CONSTRUCTION LOAN AGREEMENT page 17 of 18

**Schedule "A"**

**Insurance Requirements**

**PART 1 - DURING CONSTRUCTION**

The Lands must be insured for 100% of replacement cost under a form providing coverage at least equivalent to IAO Form 507 Builders Risk - All Risk.

The Builders Risk - All Risk cover must grant permission for partial or full occupancy.

The insurance policy should include the insurance of the foundation and all parts below ground level.

The Insurer may reserve the right to cancel the policy as provided by statutory provisions but must agree that it will neither terminate nor alter the policy to our prejudice except by registered letter giving a notification of thirty (30) days to the Credit Union.

Loss must be made payable firstly to the Credit Union, as its interest may appear and a standard IAO mortgage clause must be attached.

Comprehensive General Liability Insurance for bodily injury and/or death and damage to property of others in an amount not less than $5,000,000.

**PART 2 - UPON COMPLETION OF CONSTRUCTION**

The Borrower shall keep in force the following insurance in respect of the Lands:

2.1 "All Risks" coverage
equivalent to the IAO Commercial Building Form (CBF) for 100% of replacement cost on a stated amount basis, with loss must be made payable
firstly to the Credit Union, as its interests may appear. The policy must contain:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A stated amount co-insurance
clause,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) A standard IAO mortgage clause,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) A replacement cost endorsement.

2.2 Broad form boiler insurance
including pressure vessels insurance and air-conditioning equipment, if any, and repair and replacement and use and occupancy coverage,
with loss must be made payable firstly to the Credit Union, as its interest may appear and a standard IAO mortgage clause must be attached.

2.3 Comprehensive General Liability
Insurance for bodily injury and/or death and damage to property of others, in amount not less than $5,000,000.

2.4 Rental insurance coverage sufficient
to cover 100% of the gross annual rents and if on a net basis, the equivalent gross rentals, for a period of one year.

All of the above policies must be with insurers and on terms and conditions satisfactory to the Credit Union, including the provisions of thirty (30) days written notice to the Credit Union of cancellation or of any alteration to the policy to the prejudice of the Credit Union, must be signed by the insurers and the originals of the policies signed by the insurers must be deposited with the Credit Union prior to any advances under the loan.

All fire insurance policies must include the insurance of the foundation and all parts below level and in case of destruction of the reconstruction should not be limited to the same site.

**PART 3 - OTHER REQUIREMENTS**

3.1 All insurance policies will
be issued by a company or companies acceptable to the Credit Union.

3.2 Any deductible amounts under
such policies must be approved by the Credit Union.

3.3 The terms and conditions of
all insurance policies must be approved by the Credit Union.

3.4 The policy or policies will
contain a standard mortgage clause approved by the Insurance Bureau of Canada and will name the Credit Union as first loss payee.

COMMERCIAL CREDITMASTER® CONSTRUCTION LOAN AGREEMENT page 18 of 18

## Ex1K-6

**Exhibit 6.8**

![](tm2611545d1_ex6-8img01.jpg)

June 20, 2025

That Seventies Project Development Ltd.

PO Box 670

Rossland, BC

V0G 1Y0

Attention: Don Thompson

Dear Don;

**<u>Re:</u> <u>Loan Amendment Agreement</u>**

CBT Commercial Finance Corp. (Inc. No. BC0690650) ("CBT") entered into a Construction Loan Agreement with That Seventies Project Development Ltd. (the "Borrower") dated June 14, 2023, and Loan Amendment Agreements dated July 25, 2024, and February 1, 2025 (together "Schedule A"). CBT hereby amends the terms of the Loan Agreement as follows:

**1.** **Section 1, AGREEMENT TO LEND –** The outstanding balance of the Construction Loan as of
 June 1, 2025, is $1,064,979.77 in Principal and $16,005.33 in Interest, for a total outstanding balance of $1,080,985.10.

**2.** **Section 4, INTEREST RATE –** The outstanding balance of the Construction
Loan will bear interest at a rate (the "Interest Rate") of interest at all times equivalent to 3.5% per annum in excess of the
Prime Rate declared by Canadian Imperial Bank of Commerce from time to time as the prime rate for Canadian dollar commercial loans made
by it in Canada (the "Prime Rate"). If and whenever the rate of interest constituting the Prime Rate is varied the interest
rate payable hereunder will also be varied, effective on the date the change in the rate constituting the Prime Rate comes into effect
so that at all times the interest rate hereunder will be 3.5% per annum in excess of the Prime Rate then in effect.

---

| | |
|:---|:---|
| **3** | **Section 5 (c), PAYMENTS –** The Borrower will make the following payments to CBT: |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) On or before Dec 31, 2025 (the "Balance Due Date") the
Borrower will pay to CBT the whole of the outstanding balance of the Construction Loan, including principal, interest, and all Other
Amounts.

**4**. **Section 6 (a), SECURITY, Definitions** 

"Lands" means those lands legally described as PIDs 011-958-057, 032-444-826, 032-444-834, 032-444-842, 032-444-851, 032-444-869, 032-444-877, 032-444-885, 032-444-893, 032-444-907,032-444-915, 032-444-958.

![](tm2611545d1_ex6-8img001.jpg)

"Permitted Liens" means:

Statutory Right of Way XJ15099, LA133914, LB260891, LB302729, LB302736, LB302745, LB302746, CA7308710, CA9046960, CA9414765, CA9414782, CB1758759, CB1758761, CB1796992, CB1796994, CB1840973, CB1840976;<br> Covenant LB302739, CB1840977;<br> Easement CA4272129, CA7868925;<br> Priority Agreement CB1758760, CB1758762, CB1796993, CB1796995, CB1840974, CB1840978, CB1840979;<br> Statutory Building Scheme CB1852380.<br>

All other terms and conditions of the Construction Loan Agreement dated June 14, 2023, and the Loan Amendment Agreements dated July 25, 2024, and February 1, 2025, remain in effect.

If these provisions meet with your approval, please have the Borrower execute the Borrower Acceptance provision.

Yours truly,

**CBT Commercial Finance Corp.**<br> by its authorized signatory

/s/ Johnny Strilaeff

Johnny Strilaeff, President & CEO

**BORROWER ACCEPTANCE:**

The Borrower hereby accepts the within offer.

---

| | |
|:---|:---|
| **That Seventies Project Development Ltd.** | |
| by its authorized signatory(ies) | **Date** |

---

Don Thompson

.../2

![](tm2611545d1_ex6-8img01.jpg)

**Schedule A**

February 1, 2025

That Seventies Project Development Ltd.

PO Box 670

Rossland, BC

V0G 1Y0

Attention: Don Thompson

Dear Don;

**<u>Re:</u> <u>Loan Amendment Agreement</u>**

CBT Commercial Finance Corp. (Inc. No. BC0690650) ("CBT') entered into a Construction Loan Agreement with That Seventies Project Development Ltd. (the "Borrower') dated June 14, 2023, and a Loan Amendment Agreement dated July 25, 2024 (Schedule A). CBT hereby amends the terms of the Loan Agreement as follows:

**1.** **Section 1, AGREEMENT TO LEND –** The outstanding balance of the Construction
Loan as of February 1, 2025, is $2,376,702.23 in Principal and $56,002.27 in Interest, for a total outstanding balance of $2,432,704.50.

**2.** **Section 5 (c), PAYMENTS –** The Borrower will make the following payments to CBT:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) On or before June 30, 2025 (the "Balance Due Date")
the Borrower will pay to CBT the whole of the outstanding balance of the Construction Loan, including principal, interest, and all Other
Amounts.

All other terms and conditions of the Construction Loan Agreement dated June 14, 2023, and the Loan Amendment Agreement dated July 25, 2024, remain in effect.

If these provisions meet with your approval, please have the Borrower execute *the* Borrower Acceptance provision.

Yours truly,

**CBT Commercial Finance Corp.**<br> by its authorized signatory

/s/ Johnny Strilaeff

Johnny Strilaeff, President & CEO

![](tm2611545d1_ex6-8img001.jpg)

**BORROWER ACCEPTANCE:**

The Borrower hereby accepts the within offer.

---

| | |
|:---|:---|
| **That Seventies Project Development Ltd.** | FEB 7, 2025 |
| **by its authorized signatory(ies)** | **Date** |

---

/s/ Don Thompson

Don Thompson

.../2

![](tm2611545d1_ex6-8img01.jpg)

July 25, 2024

That Seventies Project Development Ltd.

PO Box 670

Rossland, BC

V0G 1Y0

Attention: Don Thompson

Dear Don;

**<u>Re:</u> <u>Loan Amendment Agreement</u>**

CBT Commercial Finance Corp. (Inc. No. BC0690650) ("CBT") entered into a Construction Loan Agreement with That Seventies Project Development Ltd. (the "Borrower") dated June 14, 2023 (Schedule A). CBT hereby amends the terms of the Loan Agreement as follows:

**1.** **Section 1, AGREEMENT TO LEND –** The outstanding balance of the Construction Loan as of July 31, 2024, is $1,630,577.72 in Principal and $2,166.66
in Interest, for a total outstanding balance of $1,632,744.38.

**2.** **Section 5 (c), PAYMENTS –** The Borrower will make the following payments to CBT:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) On or before October 31, 2024 (the "Balance Due Date")
the Borrower will pay to CBT the whole of the outstanding balance of the Construction Loan, including principal, interest, and all Other
Amounts.

All other terms and conditions of the Construction Loan Agreement dated June 14, 2023, remain in effect.

If these provisions meet with your approval, please have the Borrower execute the Borrower Acceptance provision.

Yours truly,

**CBT Commercial Finance Corp.**

by its authorized signatory

---

| |
|:---|
| /s/ Jonny Strilaeff |
| Jonny Strilaeff, President & CEO |

---

![](tm2611545d1_ex6-8img001.jpg)

**BORROWER ACCEPTANCE:**

The Borrower hereby accepts the within offer.

---

| | |
|:---|:---|
| **That Seventies Project Development Ltd.** | **Aug 20, 2024** |
| **by its authorized signatory(ies)** | **Date** |

---

/s/ Don Thompson

Don Thompson

.../2

![](tm2611545d1_ex6-8img01.jpg)

June 14, 2023

That Seventies Project Development Ltd.

PO Box 670

Rossland, BC

VOG 1Y0

Attention: Howard Katkov

Dear Howard;

**<u>Re</u>: <u>Construction Loan Agreement / Commitment Letter</u>**

CBT Commercial Finance Corp. (Inc. No. BC0690650) ("CBT") hereby offers to That Seventies Project Development Ltd. (the "Borrower"), a construction loan facility on the terms and conditions set out below.

**1.** **AGREEMENT TO LEND** – CBT will lend to the Borrower, subject to,
 and upon the terms and conditions of this Agreement, up to $2,425,000 (hereinafter called the "Construction
 Loan").

**2.** **PURPOSE** – The purpose of the Construction Loan is to assist with the construction costs and
 development of a 16-lot subdivision at Red Mountain Resort in Rossland, BC.

**3.** **ADVANCES** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Upon completion and registration of security, funds will be advanced in draws upon
completion and inspection of each phase of construction, with a maximum frequency of one draw per month based on progress reporting from
the Borrower and WSP and progress invoices from the contractor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The value of work in place plus remaining loan to advance will at all times equal
the cost to complete the project. Payments of all accrued interest as of the date of the loan advances will be deducted from the loan
advances prior to the funds being remitted to the Borrower.

**4.** **INTEREST RATE** - The outstanding balance of the Construction Loan
 will bear interest at a rate (the "Interest Rate") of interest at all times equivalent to 3%
 per annum in excess of the Prime Rate declared by Canadian Imperial Bank of Commerce from time to time
 as the prime rate for Canadian dollar commercial loans made by it in Canada (the "Prime Rate").
 If and whenever the rate of interest constituting the Prime Rate is varied the interest rate payable
 hereunder will also be varied, effective on the date the change in the rate constituting the Prime Rate
 comes into effect so that at all times the interest rate hereunder will be 3% per annum in excess of
 the Prime Rate then in effect.

![](tm2611545d1_ex6-8img001.jpg)

**5**. **PAYMENTS –** The
Borrower will make the following payments to CBT:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Interest payments will be deducted from each loan draw advance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As each lot is sold, the Borrower will pay the net proceeds (defined as proceeds
net of all real estate commissions, and other reasonable expenses incurred in connection with the sale of the lot) in exchange for a fully
executed discharge of same;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) On or before July 31, 2024 (the "Balance Due Date") the Borrower will
pay to CBT the whole of the outstanding balance of the Construction Loan, including principal, interest, and all Other Amounts.

**6.** **SECURITY** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** **Definitions -** In this Agreement

"Lands" means those lands legally described as PID: 011 858 057; Parcel A (Sec 212981) Sublot 24 Township 28 Kootenay District Plan X60 Except (1) part laying west of a line parallel to and 10 chains distant from the westerly boundary; (2) parts included in plans 5102, R299, NEP19698, NEP88960, EPP84688 and EPP88603 and EPP99497;

"Mortgage" means a first Mortgage of the Lands in favour of CBT;

"Permitted Liens" means:

Statutory Right of Way XJ15099, LA133914, LB260891, LB302729, LB302736, LB302745, LB302746, CA7308710, CA9046960, CA9414765, CA9414780, CA9414782

Covenant LB302739;

Easement CA4272129, CA7868925;

"Other Amounts" means any other amounts that are payable by the Borrower to CBT under this Agreement or the Securities other than principal of the Construction Loan and interest thereon;

"Property" means all of the undertaking, property and assets of the Borrower subject to the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** **Security -** Repayment
of the Construction Loan and interest and Other Amounts and performance of the covenants, agreements and obligations herein and therein
contained will be secured by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Promissory Note in the amount of $2,425,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) **A** current and running
account collateral Mortgage creating a first charge over the Lands supported by a Beneficial Charge Agreement and Direction to Trustee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) General Security Agreement
creating a first security interest in all the Borrower's present and after-acquired personal property;

.../2

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Indemnity
Agreement from RMR Acquisition Corp. indemnifying CBT for all losses suffered by reason of making the Construction Loan to the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Assignment of Course of Construction insurance with loss payable firstly to CBT Commercial Finance Corp.

(collectively "the Securities")

**7**. **PREPAYMENT -** The
Borrower has the right, at any time when not in default hereunder or under the Securities to prepay
the whole or any portion of the balance outstanding under this Agreement without notice or bonus provided that any such payments will
be applied first to interest accrued to the date of payment and second to principal and provided further that any such payment will not
be taken in substitution of any monthly instalment.

**8.** **COVENANTS** 

**Standard Negative Covenants -** So long as any amounts remain outstanding and unpaid under this Agreement or so long as any commitment under this Agreement remains in effect, the Borrower will not, without prior written consent (which consent will not be unreasonable withheld):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Create, incur, assume, or suffer to exist, any mortgage, deed of trust, pledge,
lien, security interest, assignment, charge, or encumbrance (including without limitation, any conditional sale, or other title retention
agreement, or finance lease) of any nature, upon or with respect to any of its assets or undertakings, now owned or hereafter acquired,
except for Permitted Liens;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Create, incur, assume or suffer to exist any other indebtedness for borrowed money
(except for indebtedness resulting from Permitted Liens, if any) or guarantee or act as surety or agree to indemnify the debts of any
other person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Merge or consolidate with any other corporation, or acquire all or substantially
all of the shares, assets or business of any other corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Sell, lease, assign, transfer, convey or otherwise dispose of any of its now owned
or hereafter acquired assets (including, without limitation, shares of stock and indebtedness of subsidiaries, receivables and leasehold
interests,) except for equipment and inventory disposed of in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Cease to carry on the business currently being carried on by each of the Borrower,
its subsidiaries, and the lndemnitors at the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Permit any change of ownership or change in the capital structure of the Borrower.

.../3

**9.** **EVENTS OF DEFAULT** 

**9.1** **Events of Default -** The
whole of the outstanding balance of the Construction Loan (including principal, interest,
and all Other Amounts) will immediately become due and payable and the Securities will become enforceable in each and every of the following
events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Default -** if the Borrower fails to observe or perform something hereby required to be done or some
covenant or condition hereby required to be observed or performed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Permits To Be Done -** if the Borrower does, or permits to be done, anything which the Borrower has
herein agreed not to do or permit to be done;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Misrepresentation -** if any representation or warranty given by the Borrower (or any director or
officer thereof if the Borrower is a corporation) is untrue in any material respect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Winding Up -** if the Borrower is a corporation and if an order is made or a resolution passed for
the winding-up of the Borrower, or if a petition is filed for the winding-up of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Bankruptcy -** if the Borrower commits or threatens to commit any act of bankruptcy or becomes insolvent
or makes an assignment or proposal under the *Bankruptcy and Insolvency Act* or a general assignment in favour of its creditors or
a bulk sale of its assets, or if a bankruptcy petition is filed or presented against the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Arrangement -** if the Borrower is a corporation and if any proceedings with respect to the Borrower
are commenced under the *Companies Creditors Arrangement Act;* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Execution Etc. -** if any execution, sequestration, extent or any other process of any Court become
enforceable against the Borrower or if a distress or analogous process is levied against the Property of the Borrower or any part thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **Other Indebtedness -** if the Borrower permits any sum which has been admitted as due by the Borrower
or is not disputed to be due by the Borrower and which forms or is capable of being made a charge upon any of the Property in priority
to the Securities to remain unpaid after proceedings have been taken to enforce the same as a prior charge;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) **Default in Other Payment -** if the Borrower defaults
in payment of any indebtedness or liability to CBT (whether secured hereby or not) or to
any other lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(J) **Sale or Lease - if,** without the prior written consent
of CBT, the Borrower sells, agrees to sell, leases, agrees to lease or otherwise disposes or agrees to dispose of the Lands or any part
or parts thereof or any interest therein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) **Mortgage or Encumbrance -** if, without the prior written
consent of CBT, the Borrower grants or agrees to grant any further mortgage of the Lands or any part or parts thereof or any interest
therein or otherwise permits the Lands to be encumbered in any manner other than by Permitted Encumbrances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) **Change of Control -** if the Borrower is a corporation and if, without the prior written consent
 of CBT, there is in the opinion of CBT a change of effective control of the Borrower; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) **Default Under Securities -** if an event of default
occurs under any of the Securities.

.../4

**9.2** **Waiver** - CBT may waive any Event of Default,
 provided always that no waiver by CBT or any failure to take any action to enforce its rights or to
 enforce any security will extend to or be taken in any manner whatsoever to affect any subsequent Event
 of Default or the rights resulting therefrom.

**10.** **FEES** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Legal Fee** s
 - The Borrower acknowledges that all legal and registration fees incurred by CBT to prepare,
 register, and monitor the Construction Loan and Security are for the account of the Borrower,
 and may be deducted from the initial advance of the Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Administration Fee** - The Borrower acknowledges there will be a $25,000 administration fee that will
 be deducted from the initial advance of the Construction Loan.

**11.** **FINANCIAL AND OTHER INFORMATION** – The Borrower will
supply to CBT:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Such financial or other information as CBT may require from
time to time.

**12**. **CONDITIONS PRECEDENT** – Prior to advancing funds CBT requires the following: (a) Copy
 of the fixed price contract between the Borrower and Copcan Civil Ltd;

**13.** **TERMINATION OF AGREEMENT TO ADVANCE** - At CBT's option CBT's
 Agreement to advance the Construction Loan may be cancelled and all monies outstanding on account of
 the Construction Loan (including interest and all Other Amounts) will be due and payable if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Securities are not executed, delivered to CBT and (where necessary or desirable)
registered within 60 days of the Borrower's acceptance of CBT's within offer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Construction Loan is not fully advanced within 120 days of the Borrower's acceptance of CBT's within
offer.

**14.** **Freedom of Information and Protection of Privacy** 

The Borrower acknowledges that CBT is a public body with duties and obligations under the *Freedom of Information and Protection of Privacy Act,* and that CBT may be required by law to disclose information relating to the Borrower.

If these provisions meet with your approval, please have the Borrower execute the Borrower Acceptance provision.

.../5

**Yours truly, CBT Commercial Finance Corp.**<br> by its authorized signatory

/s/ Johnny Strilaeff

Johnny Strilaeff, President & CEO

**BORROWER ACCEPTANCE:**

The Borrower hereby accepts the within offer.

---

| | |
|:---|:---|
| **That Seventies Project Development Ltd.** | **September 18, 2023** |
| **by its authorized signatory(ies)** | **Date** |

---

/s/ Don Thompson

Don Thompson

.../6

## Ex1K-6

**Exhibit 6.9**

**CONVERTIBLE PROMISSORY NOTE**

---

| | |
|:---|:---|
| USD$12,656,962 | August 16, 2013 |

---

**FOR VALUE RECEIVED,** the undersigned, **RMR ACQUISITION CORP.** (the "**Borrower**") hereby promises to pay to or to the order of **Jeff Busby, in trust for the Juice Trust dtd 1/24/96 Trust 3** (the "**Holder**") on or before April 18, 2019 (the "**Maturity Date**")**,** the principal amount of $12,656,962 United States dollars (the "**Principal Balance**")**,** together with interest as hereinafter provided for. This convertible promissory note (the "**Convertible Note**") is being issued pursuant to the terms of an amended and restated credit agreement between, amongst others, the Borrower and the Holder dated August 16, 2013, as may be amended from time to time (the "**Credit Agreement**")**.** In the event of any inconsistency between this Convertible Note and the Credit Agreement, the terms of the Credit Agreement shall prevail.

Set out below is a statement of the rights of the Holder and the conditions to which this Convertible Note is subject and to which the Holder, by the acceptance of this Convertible Note, agrees.

**Interest**

1. The Principal Balance, both before and after maturity, default or judgment and overdue interest both before and after default or judgment, shall bear interest:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in respect of USD$12,406,962 from April 18, 2012 until the date immediately preceding the issue date of this Convertible Note, at the rate 6.0% per annum;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in respect of USD$250,000 from July 5, 2013 until the date immediately preceding the issue date of this Convertible Note, at the rate 6.0% per annum;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in respect of the entire Principal Balance, from and including the issue date of this Convertible Note, at the rate of 8.0% per annum, calculated daily and compounded annually and payable on the Maturity Date, not in advance.

**Payment of Principal Balance and Interest**

2. Unless previously prepaid or converted in accordance with the terms hereof, the full amount of the Principal Balance together with all accrued and unpaid interest is due and payable on the Maturity Date and will be paid by sending a cheque by prepaid ordinary mail or by delivering other transfer of funds as may be agreed by the Holder, for such Principal Balance and interest payable to the order of the Holder and addressed to it unless the Holder otherwise directs. In the event of non-receipt of any cheque or funds for the Principal Balance and interest by the Holder, the Borrower will cause to be issued to the Holder a replacement cheque or replacement transfer of funds for like amount upon being furnished with such evidence of non-receipt as it shall reasonably require and upon being indemnified to its satisfaction, acting reasonably.

**Prepayment of Principal Balance and Interest**

3. The Principal Balance together with all accrued and unpaid interest may be prepaid in full by the Borrower prior to the Maturity Date, without any bonus or penalty whatsoever, upon fifteen (15) days prior written notice being provided by the Borrower to the Holder (the "**Prepayment Notice**").

4. Upon receipt of the Prepayment Notice, the Holder will have the right to either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) accept the prepayment; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) elect to convert the outstanding Principal Balance together with all accrued and unpaid interest at a price of Cdn$8.86 (the "**Conversion Price**") per Class C Unit (the "**Conversion Units**") of Red Mountain Ventures Limited Partnership (the "**Covenantor**"), parent of the Borrower, subject to adjustment as provided herein.

In the event that the Holder wishes to convert the outstanding Principal Balance and interest thereon, then the Holder shall deliver a duly completed and executed Notice of Conversion (as defined herein) to the Borrower within fifteen (15) days following receipt by the Holder of the Prepayment Notice.

The records of the Borrower shall be updated from time to time to reflect the Principal Balance as it is decreased in accordance with the terms hereof and the Credit Agreement.

**Conversion Privileges**

5. All or any part of the Principal Balance outstanding from time to time is convertible at the election of the Holder at any time and from time to time after the date hereof up to and including the close of business one (1) business day prior to the Maturity Date into Conversion Units at the Conversion Price, subject to adjustment as provided herein. In the event of such conversion, any interest on the outstanding Principal Balance shall convert into Conversion Units at the Conversion Price, subject to adjustment as provided herein.

**Manner and Exercise of Right to Convert**

6. If the Holder wishes to convert the Principal Balance, in whole or in part, and interest thereon into Conversion Units pursuant to the terms hereof, it shall surrender this Convertible Note to the Borrower, together with the conversion notice (the "**Notice of Conversion**") in the form attached as Appendix "A" hereto duly completed and executed by the Borrower, irrevocably exercising its right to convert the Principal Balance, or such portion thereof, and interest thereon in accordance with the provisions hereof. The date the Notice of Conversion is received by the Borrower shall be the effective date of such conversion (the "**Date of Conversion**"). Upon surrender of this Convertible Note together with the Notice of Conversion, the Holder or its nominee or assignee, as the case may be, shall be entitled to be entered in the books of the Covenantor as of the Date of Conversion as the holder of the number of Conversion Units into which this Convertible Note, or portion thereof, is convertible in accordance with the terms hereof, and as soon as practicable thereafter and in any event no later than fifteen (15) business days after receipt by the Borrower of the Notice of Conversion, the Covenantor shall deliver or cause to be delivered to the Holder a copy of the certificate representing the Conversion Units (with the original certificate to remain in the minute book of the Covenantor).

7. If the Principal Balance is not converted in full by the Holder in accordance with section 6 hereof, upon surrender of this Convertible Note to the Borrower, the Borrower shall cancel same and shall, without charge, forthwith certify and deliver to the Holder a new Convertible Note in the aggregate Principal Balance equal to the unconverted part of the Principal Balance then outstanding.

8. Upon surrender of this Convertible Note for conversion in accordance with section 6, the Holder will be entitled to receive that number of Conversion Units as is equal to the sum of: (i) the quotient obtained upon dividing the Principal Balance to be converted by the Conversion Price, and (ii) the quotient obtained by dividing the interest on the Principal Balance to be converted by the Conversion Price.

9. Upon the first conversion of any portion of the Principal Balance, as a condition of conversion the Holder will be required to execute an acknowledgement to be bound by the partnership agreement governing the affairs of the Covenantor.

**Adjustments**

10. For the purposes of this Convertible Note, the Conversion Price will be adjusted proportionally for any subsequent unit distribution or split, unit combination or other similar recapitalization, reclassification or reorganization of or affecting the limited partnership units of the Covenantor. In the event of any acquisition or merger to which the Covenantor is a party other than a merger or consolidation in which the Covenantor is the continuing corporation, or in the case of any sale or conveyance to another corporation of the property of the Borrower or Covenantor as an entirety or substantially as an entirety, or in the case of any statutory exchange of securities with another corporation (including any exchange effected in connection with a merger of a third corporation into the Covenantor), then the Holder will have the right to convert the outstanding Principal Balance into Conversion Units at the Conversion Price immediately prior to such acquisition, merger, sale or conveyance. The provisions of this section will similarly apply to successive consolidations, mergers, statutory exchanges, sales or conveyances, provided that, notwithstanding any other provision hereof, no adjustment of the Conversion Price will be required unless such adjustment would require an increase or decrease of at least one percent (1%) in the Conversion Price then in effect.

**No Requirement to Issue Fractional Units**

11. The Covenantor shall not issue fractional Conversion Units upon the conversion of this Convertible Note. If any fractional interest in a Conversion Unit would be deliverable upon the conversion of any Principal Balance pursuant to the terms hereof, any such fractional interest will be rounded down to the nearest whole number of Conversion Units.

**Legended Unit Certificates**

12. The certificates representing the Conversion Shares shall contain the legend required by the limited partnership agreement governing the affairs of the Covenantor. In addition and notwithstanding anything herein contained to the contrary, the Conversion Units issuable upon conversion of this Convertible Note will only be issued in compliance with the securities laws of any applicable jurisdiction, and the certificates representing the Conversion Units thereby issued may bear such legend(s) as may, in the opinion of counsel to the Covenantor, acting reasonably, be necessary in order to avoid a violation of any applicable Canadian securities laws, any applicable United States securities laws or to comply with the requirements of any stock exchange on which the Conversion Units may be listed.

**Restrictions on Transfer**

13. This Convertible Note shall not be transferred or assigned without the Borrower's prior written consent, except such consent shall not be required if an Event of Default exists.

**No Voting Rights**

14. The Convertible Note shall not entitle the Holder to any of the rights of a limited partner of the Covenantor, including without limitation, the right to vote, to receive distributions, or to receive any notice of, or to attend meetings of limited partners or any other proceedings of the Covenantor.

**Application of Payments**

15. Any amount paid in satisfaction of the indebtedness evidenced by this Convertible Note shall be applied first in satisfaction of any accrued and unpaid interest which is due and payable, with the remaining portion of such amount applied in satisfaction of the Principal Balance owing, with any remaining amount applied in satisfaction of any accrued but unpaid interest which is not yet due and payable as at the date on which such amount is paid.

**Judgment Interest**

16. If the Holder obtains judgment on this Convertible Note or in respect of any amount owing hereunder, interest at the aforesaid rate, calculated monthly, not in advance, shall be payable on the amount which is outstanding under the said judgment from time to time.

**Events of Default**

17. An "**Event of Default**" under the Credit Agreement shall constitute an event of default under this Convertible Note.

18. The Borrower shall promptly give notice in writing to the Holder of the occurrence of any Event of Default or other event which, with the lapse of time or giving of notice or otherwise, would be an Event of Default. Such written notice shall specify the nature of such default or Event of Default and the steps taken to remedy the same.

**Currency**

19. All amounts payable under this Convertible Note shall be payable in the currency in which the advance of the Principal Balance was made, as noted on the face page of this Convertible Note. Notwithstanding the foregoing, the Conversion Price is payable in the lawful currency of Canada. Any Principal Balance held in a currency other than Canadian currency and interest payable thereon which is converted to Conversion Units pursuant to this Convertible Note will be converted to Canadian dollars at the noon exchange rate posted by the Bank of Canada in effect on the last business day prior to the conversion to the Conversion Units.

**Non Waiver**

20. The extension of the time for making any payment which is due and payable hereunder at any time or times or the failure, delay or omission on the part of the Holder to exercise or enforce any rights or remedies of the Holder hereunder or under any instrument securing payment of the indebtedness evidenced by this Convertible Note shall not constitute a waiver of the right of the Holder to enforce such rights and remedies thereafter.

**Subordination**

21. The obligations evidenced by this Convertible Note are subordinate to senior lenders of the Borrower as set out in the Credit Agreement.

**Notices and Demands**

22. All notices and demands provided for herein shall be given in accordance with the Credit Agreement.

**Amendments**

23. No amendment, modification or waiver of any provision of this Convertible Note or consent to any departure by the Borrower or Covenantor from any provision of this Convertible Note is in any event effective unless it is in writing and signed by the Holder and then the amendment, modification, waiver or consent is effective only in the specific instance and for the specific purpose for which it is given.

**Applicable Law**

24. This Convertible Note shall be construed and enforced in accordance with, and the rights of the parties hereto shall be governed by, the laws of the Province of British Columbia and the laws of Canada applicable therein.

**Time of the Essence**

25. Time shall in all respects be of the essence of this Convertible Note.

**Waiver of Benefits**

26. The Borrower hereby waives the benefits of demand and presentment for payment, notice of non-payment, protest and notice of protest of this Convertible Note.

**Compliance with Directions, etc.**

27. The Holder may at any time direct the Borrower to make any payment which is due and payable hereunder or to become due and payable hereunder to any person and the Borrower shall comply with such direction. The Borrower shall, upon the written demand of the Holder, confirm to any third party specified by the Holder that such direction has been received and that no prepayments have been made hereunder and that the Borrower has not been directed to make payments hereunder to any other person.

**Further Assurances**

28. The Borrower, Covenantor and Holder will use all reasonable efforts to give full effect to this Convertible Note and will execute and deliver all such further documents and instruments and do all such further acts and things as the other party reasonably requests to evidence, carry out and give full effect to the terms, conditions, intent and meaning set out herein.

IN WITNESS WHEREOF the Borrower and the Covenantor have executed this Convertible Note this 16<sup>th</sup> day of August, 2013.

---

| | |
|:---|:---|
| **RMR ACQUISITION CORP.** <br> **(Borrower)** | **RMR ACQUISITION CORP.** <br> **(Borrower)** |
| Per: | /s/ Howard Katkov |
|  | Howard Katkov |
|  | Chief Executive Officer and President |
|  | I have authority to bind the Borrower |
| **RED MOUNTAIN VENTURES LIMITED PARTNERSHIP,** by its general partner, **Red Mountain Ventures G.P. Ltd.** | **RED MOUNTAIN VENTURES LIMITED PARTNERSHIP,** by its general partner, **Red Mountain Ventures G.P. Ltd.** |
| **(Covenantor)** | **(Covenantor)** |
| Per: | /s/ Howard Katkov |
|  | Howard Katkov |
|  | Chief Executive Officer and President |
|  | I have authority to bind the Covenantor |

---

**APPENDIX A TO**

**CONVERTIBLE NOTE**

**FROM RMR ACQUISITION CORP. AND**

**RED MOUNTAIN VENTURES LIMITED PARTNERSHIP**

**NOTICE OF CONVERSION**

---

| | |
|:---|:---|
| **To:** | RMR Acquisition Corp. (the "Borrower") |

---

---

| | |
|:---|:---|
| **And To:** | Red Mountain Ventures Limited Partnership (the "Covenantor") |

---

The undersigned is the registered holder (the "Holder") of the Convertible Note(s) evidenced by the certificate(s) attached to this Notice and hereby gives notice of conversion of $<u> </u> principal amount of the Convertible Note(s) in exchange for Class C Units of the Covenantor (the "Conversion Units") at a conversion price of CDN $8.86 per Conversion Unit. Any principal amount held in a currency other than Canadian currency and interest payable thereon which is converted to Conversion Units pursuant to this Notice of Conversion will be converted to Canadian dollars at the noon exchange rate posted by the Bank of Canada in effect on the last business day prior to the conversion to the Conversion Units.

The undersigned irrevocably directs that the Conversion Units be issued and delivered as follows:

---

| | | |
|:---|:---|:---|
| <br>**Name(s) in Full** | <br>**Address(es)**<br>**(Include Postal Codes)** | **Allocation of**<br>**Conversion Units**<br>**(expressed as a**<br>**percentage)** |
|  |  | % |
|  |  | % |
|  |  | % |
|  | **Total** | 100% |

---

(Please print the full name in which the certificate(s) representing the Conversion Units is/are to be issued. If any certificates are to be issued to a person or persons other than the Holder, the Holder must pay to the Covenantor all eligible transfer taxes or other government charges).

Dated this<u> </u> day of<u> </u> ,<u> </u>

---

| | |
|:---|:---|
| *Signature of Witness* | *Signature of Holder* |
| *Name of Witness* | *Name of Holder* |

---

**CONVERTIBLE PROMISSORY NOTE**

---

| | |
|:---|:---|
| USD**$213,652** | April 17, 2014 |

---

**FOR VALUE RECEIVED**, the undersigned, **RMR ACQUISITION CORP**. (the "**Borrower**") hereby promises to pay to or to the order of **Jeff Busby, in trust for the Juice Trust dtd 1/24/96 Trust** 3 (the "**Holder**"), on or before April 18, 2019 (the "**Maturity Date"),** the principal amount of $213,652 United States dollars (the "**Principal Balance"),** together with interest as hereinafter provided for. This convertible promissory note (the "**Convertible Note**") is being issued pursuant to the terms of an amended and restated credit agreement between, amongst others, the Borrower and the Holder dated August 16, 2013, as may be further amended from time to time (the "**Credit Agreement**")**.** In the event of any inconsistency between this Convertible Note and the Credit Agreement, the terms of the Credit Agreement shall prevail.

Set out below is a statement of the rights of the Holder and the conditions to which this Convertible Note is subject and to which the Holder, by the acceptance of this Convertible Note, agrees.

**Interest**

1. The Principal Balance, both before and after maturity, default or judgment and overdue interest both before and after default or judgment, shall bear interest from and including the issue date of this Convertible Note, at the rate of 8.0% per annum, calculated daily and compounded annually and payable on the Maturity Date, not in advance.

**Payment of Principal Balance and Interest**

2. Unless previously prepaid or converted in accordance with the terms hereof, the full amount of the Principal Balance together with all accrued and unpaid interest is due and payable on the Maturity Date and will be paid by sending a cheque by prepaid ordinary mail or by delivering other transfer of funds as may be agreed by the Holder, for such Principal Balance and interest payable to the order of the Holder and addressed to it unless the Holder otherwise directs. In the event of non-receipt of any cheque or funds for the Principal Balance and interest by the Holder, the Borrower will cause to be issued to the Holder a replacement cheque or replacement transfer of funds for like amount upon being furnished with such evidence of non-receipt as it shall reasonably require and upon being indemnified to its satisfaction, acting reasonably.

**Prepayment of Principal Balance and Interest**

3. The Principal Balance together with all accrued and unpaid interest may be prepaid in full by the Borrower prior to the Maturity Date, without any bonus or penalty whatsoever, upon fifteen (15) days prior written notice being provided by the Borrower to the Holder (the "**Prepayment Notice**").

4. Upon receipt of the Prepayment Notice, the Holder will have the right to either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) accept the prepayment; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) elect to convert the outstanding Principal Balance together with all accrued and unpaid interest at a price of Cdn$8.86 (the "**Conversion Price**") per Class C Unit (the "**Conversion Units**") of Red Mountain Ventures Limited Partnership (the "**Covenantor"),** parent of the Borrower, subject to adjustment as provided herein.

In the event that the Holder wishes to convert the outstanding Principal Balance and interest thereon, then the Holder shall deliver a duly completed and executed Notice of Conversion (as defined herein) to the Borrower within fifteen (15) days following receipt by the Holder of the Prepayment Notice.

The records of the Borrower shall be updated from time to time to reflect the Principal Balance as it is decreased in accordance with the terms hereof and the Credit Agreement.

**Conversion Privileges**

5. All or any part of the Principal Balance outstanding from time to time is convertible at the election of the Holder at any time and from time to time after the date hereof up to and including the close of business one (1) business day prior to the Maturity Date into Conversion Units at the Conversion Price, subject to adjustment as provided herein. In the event of such conversion, any interest on the outstanding Principal Balance shall convert into Conversion Units at the Conversion Price, subject to adjustment as provided herein.

**Manner and Exercise of Right to Convert**

6. If the Holder wishes to convert the Principal Balance, in whole or in part, and interest thereon into Conversion Units pursuant to the terms hereof, it shall surrender this Convertible Note to the Borrower, together with the conversion notice (the "**Notice of Conversion")** in the form attached as Appendix "A" hereto duly completed and executed by the Borrower, irrevocably exercising its right to convert the Principal Balance, or such portion thereof, and interest thereon in accordance with the provisions hereof. The date the Notice of Conversion is received by the Borrower shall be the effective date of such conversion (the "**Date of Conversion").** Upon surrender of this Convertible Note together with the Notice of Conversion, the Holder or its nominee or assignee, as the case may be, shall be entitled to be entered in the books of the Covenantor as of the Date of Conversion as the holder of the number of Conversion Units into which this Convertible Note, or portion thereof, is convertible in accordance with the terms hereof, and as soon as practicable thereafter and in any event no later than fifteen (15) business days after receipt by the Borrower of the Notice of Conversion, the Covenantor shall deliver or cause to be delivered to the Holder a copy of the certificate representing the Conversion Units (with the original certificate to remain in the minute book of the Covenantor).

7. If the Principal Balance is not converted in full by the Holder in accordance with section 6 hereof, upon surrender of this Convertible Note to the Borrower, the Borrower shall cancel same and shall, without charge, forthwith certify and deliver to the Holder a new Convertible Note in the aggregate Principal Balance equal to the unconverted part of the Principal Balance then outstanding.

8. Upon surrender of this Convertible Note for conversion in accordance with section 6, the Holder will be entitled to receive that number of Conversion Units as is equal to the sum of: (i) the quotient obtained upon dividing the Principal Balance to be converted by the Conversion Price, and (ii) the quotient obtained by dividing the interest on the Principal Balance to be converted by the Conversion Price.

9. Upon the first conversion of any portion of the Principal Balance, as a condition of conversion the Holder will be required to execute an acknowledgement to be bound by the partnership agreement governing the affairs of the Covenantor.

**Adjustments**

10. For the purposes of this Convertible Note, the Conversion Price will be adjusted proportionally for any subsequent unit distribution or split, unit combination or other similar recapitalization, reclassification or reorganization of or affecting the limited partnership units of the Covenantor. In the event of any acquisition or merger to which the Covenantor is a party other than a merger or consolidation in which the Covenantor is the continuing corporation, or in the case of any sale or conveyance to another corporation of the property of the Borrower or Covenantor as an entirety or substantially as an entirety, or in the case of any statutory exchange of securities with another corporation (including any exchange effected in connection with a merger of a third corporation into the Covenantor), then the Holder will have the right to convert the outstanding Principal Balance into Conversion Units at the Conversion Price immediately prior to such acquisition, merger, sale or conveyance. The provisions of this section will similarly apply to successive consolidations, mergers, statutory exchanges, sales or conveyances, provided that, notwithstanding any other provision hereof, no adjustment of the Conversion Price will be required unless such adjustment would require an increase or decrease of at least one percent (1%) in the Conversion Price then in effect.

**No Requirement to Issue Fractional Units**

11. The Covenantor shall not issue fractional Conversion Units upon the conversion of this Convertible Note. If any fractional interest in a Conversion Unit would be deliverable upon the conversion of any Principal Balance pursuant to the terms hereof, any such fractional interest will be rounded down to the nearest whole number of Conversion Units.

**Legended Unit Certificates**

12. The certificates representing the Conversion Shares shall contain the legend required by the limited partnership agreement governing the affairs of the Covenantor. In addition and notwithstanding anything herein contained to the contrary, the Conversion Units issuable upon conversion of this Convertible Note will only be issued in compliance with the securities laws of any applicable jurisdiction, and the certificates representing the Conversion Units thereby issued may bear such legend(s) as may, in the opinion of counsel to the Covenantor, acting reasonably, be necessary in order to avoid a violation of any applicable Canadian securities laws, any applicable United States securities laws or to comply with the requirements of any stock exchange on which the Conversion Units may be listed.

**Restrictions on Transfer**

13. This Convertible Note shall not be transferred or assigned without the Borrower's prior written consent, except such consent shall not be required if an Event of Default exists.

**No Voting Rights**

14. The Convertible Note shall not entitle the Holder to any of the rights of a limited partner of the Covenantor, including without limitation, the right to vote, to receive distributions, or to receive any notice of, or to attend meetings of limited partners or any other proceedings of the Covenantor.

**Application of Payments**

15. Any amount paid in satisfaction of the indebtedness evidenced by this Convertible Note shall be applied first in satisfaction of any accrued and unpaid interest which is due and payable, with the remaining portion of such amount applied in satisfaction of the Principal Balance owing, with any remaining amount applied in satisfaction of any accrued but unpaid interest which is not yet due and payable as at the date on which such amount is paid.

**Judgment Interest**

16. If the Holder obtains judgment on this Convertible Note or in respect of any amount owing hereunder, interest at the aforesaid rate, calculated monthly, not in advance, shall be payable on the amount which is outstanding under the said judgment from time to time.

**Events of Default**

17. An "**Event of Default"** under the Credit Agreement shall constitute an event of default under this Convertible Note.

18. The Borrower shall promptly give notice in writing to the Holder of the occurrence of any Event of Default or other event which, with the lapse of time or giving of notice or otherwise, would be an Event of Default. Such written notice shall specify the nature of such default or Event of Default and the steps taken to remedy the same.

**Currency**

19. All amounts payable under this Convertible Note shall be payable in the currency in which the advance of the Principal Balance was made, as noted on the face page of this Convertible Note. Notwithstanding the foregoing, the Conversion Price is payable in the lawful currency of Canada. Any Principal Balance held in a currency other than Canadian currency and interest payable thereon which is converted to Conversion Units pursuant to this Convertible Note will be converted to Canadian dollars at the noon exchange rate posted by the Bank of Canada in effect on the last business day prior to the conversion to the Conversion Units.

**Non Waiver**

20. The extension of the time for making any payment which is due and payable hereunder at any time or times or the failure, delay or omission on the part of the Holder to exercise or enforce any rights or remedies of the Holder hereunder or under any instrument securing payment of the indebtedness evidenced by this Convertible Note shall not constitute a waiver of the right of the Holder to enforce such rights and remedies thereafter.

**Subordination**

21. The obligations evidenced by this Convertible Note are subordinate to senior lenders of the Borrower as set out in the Credit Agreement.

**Notices and Demands**

22. All notices and demands provided for herein shall be given in accordance with the Credit Agreement.

**Amendments**

23. No amendment, modification or waiver of any provision of this Convertible Note or consent to any departure by the Borrower or Covenantor from any provision of this Convertible Note is in any event effective unless it is in writing and signed by the Holder and then the amendment, modification, waiver or consent is effective only in the specific instance and for the specific purpose for which it is given.

**Applicable Law**

24. This Convertible Note shall be construed and enforced in accordance with, and the rights of the parties hereto shall be governed by, the laws of the Province of British Columbia and the laws of Canada applicable therein.

**Time of the Essence**

25. Time shall in all respects be of the essence of this Convertible Note.

**Waiver of Benefits**

26. The Borrower hereby waives the benefits of demand and presentment for payment, notice of non-payment, protest and notice of protest of this Convertible Note.

**Compliance with Directions, etc.**

27. The Holder may at any time direct the Borrower to make any payment which is due and payable hereunder or to become due and payable hereunder to any person and the Borrower shall comply with such direction. The Borrower shall, upon the written demand of the Holder, confirm to any third party specified by the Holder that such direction has been received and that no prepayments have been made hereunder and that the Borrower has not been directed to make payments hereunder to any other person.

**Further Assurances**

28. The Borrower, Covenantor and Holder will use all reasonable efforts to give full effect to this Convertible Note and will execute and deliver all such further documents and instruments and do all such further acts and things as the other party reasonably requests to evidence, carry out and give full effect to the terms, conditions, intent and meaning set out herein.

IN WITNESS WHEREOF the Borrower and the Covenantor have executed this Convertible Note on the date first above written.

---

| | |
|:---|:---|
| **RMR ACQUISITION CORP.** <br> **(Borrower)** | **RMR ACQUISITION CORP.** <br> **(Borrower)** |
| Per: | /s/ Howard Katkov |
|  | Howard Katkov |
|  | Chief Executive Officer and President |
|  | I have authority to bind the Borrower |
| **RED MOUNTAIN VENTURES LIMITED PARTNERSHIP,** by its general partner, **Red Mountain Ventures G.P. Ltd.** | **RED MOUNTAIN VENTURES LIMITED PARTNERSHIP,** by its general partner, **Red Mountain Ventures G.P. Ltd.** |
| **(Covenantor)** | **(Covenantor)** |
| Per: | /s/ Howard Katkov |
|  | Howard Katkov |
|  | Chief Executive Officer and President |
|  | I have authority to bind the Covenantor |

---

**APPENDIX A TO**

**CONVERTIBLE NOTE**

**FROM RMR ACQUISITION CORP. AND**

**RED MOUNTAIN VENTURES LIMITED PARTNERSHIP**

**NOTICE OF CONVERSION**

---

| | |
|:---|:---|
| **To:** | RMR Acquisition Corp. (the "Borrower") |

---

---

| | |
|:---|:---|
| **And To:** | Red Mountain Ventures Limited Partnership (the "Covenantor") |

---

The undersigned is the registered holder (the "Holder") of the Convertible Note(s) evidenced by the certificate(s) attached to this Notice and hereby gives notice of conversion of $<u> </u> principal amount of the Convertible Note(s) in exchange for Class C Units of the Covenantor (the "Conversion Units") at a conversion price of CDN $8.86 per Conversion Unit. Any principal amount held in a currency other than Canadian currency and interest payable thereon which is converted to Conversion Units pursuant to this Notice of Conversion will be converted to Canadian dollars at the noon exchange rate posted by the Bank of Canada in effect on the last business day prior to the conversion to the Conversion Units.

The undersigned irrevocably directs that the Conversion Units be issued and delivered as follows:

---

| | | |
|:---|:---|:---|
| <br>**Name(s) in Full** | <br>**Address(es)**<br>**(Include Postal Codes)** | **Allocation of**<br>**Conversion Units**<br>**(expressed as a**<br>**percentage)** |
|  |  | % |
|  |  | % |
|  |  | % |
|  | **Total** | 100% |

---

(Please print the full name in which the certificate(s) representing the Conversion Units is/are to be issued. If any certificates are to be issued to a person or persons other than the Holder, the Holder must pay to the Covenantor all eligible transfer taxes or other government charges).

Dated this<u> </u> day of<u> </u>,<u> </u>

---

| | |
|:---|:---|
| *Signature of Witness* | *Signature of Holder* |
| *Name of Witness* | *Name of Holder* |

---

**CONVERTIBLE PROMISSORY NOTE**

---

| | |
|:---|:---|
| CAD**$1,000,000** | June 30, 2014 |

---

**FOR VALUE RECEIVED,** the undersigned, **RMR ACQUISITION CORP**. (the "**Borrower**") hereby promises to pay to or to the order of **Jeff Busby, in trust for the Juice Trust dtd 1/24/96 Trust 3 (the "Holder"),** on or before April 18, 2019 (the "**Maturity Date"),** the principal amount of **$1,000,000** Canadian dollars (the "**Principal Balance"),** together with interest as hereinafter provided for.

Set out below is a statement of the rights of the Holder and the conditions to which this convertible promissory note (the "**Convertible Note**") is subject and to which the Holder, by the acceptance of this Convertible Note, agrees.

**Interest**

1. The Principal Balance, both before and after maturity, default or judgment and overdue interest both before and after default or judgment, shall bear interest from and including the issue date of this Convertible Note, at the rate of 8.0% per annum, calculated daily and compounded annually and payable on the Maturity Date, not in advance.

**Payment of Principal Balance and Interest**

2. Unless previously prepaid or converted in accordance with the terms hereof, the full amount of the Principal Balance together with all accrued and unpaid interest is due and payable on the Maturity Date and will be paid by sending a cheque by prepaid ordinary mail or by delivering other transfer of funds as may be agreed by the Holder, for such Principal Balance and interest payable to the order of the Holder and addressed to it unless the Holder otherwise directs. In the event of non-receipt of any cheque or funds for the Principal Balance and interest by the Holder, the Borrower will cause to be issued to the Holder a replacement cheque or replacement transfer of funds for like amount upon being furnished with such evidence of non-receipt as it shall reasonably require and upon being indemnified to its satisfaction, acting reasonably.

**Prepayment of Principal Balance and Interest**

3. The Principal Balance together with all accrued and unpaid interest may be prepaid in full by the Borrower prior to the Maturity Date, without any bonus or penalty whatsoever, upon fifteen (15) days prior written notice being provided by the Borrower to the Holder (the "**Prepayment Notice**").

4. Upon receipt of the Prepayment Notice, the Holder will have the right to either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) accept the prepayment; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) elect to convert the outstanding Principal Balance together with all accrued and unpaid interest at a price of Cdn$8.86 (the "**Conversion Price**") per Class C Unit (the "**Conversion Units**") of Red Mountain Ventures Limited Partnership (the "**Covenantor**"), parent of the Borrower, subject to adjustment as provided herein.

In the event that the Holder wishes to convert the outstanding Principal Balance and interest thereon, then the Holder shall deliver a duly completed and executed Notice of Conversion (as defined herein) to the Borrower within fifteen (15) days following receipt by the Holder of the Prepayment Notice.

The records of the Borrower shall be updated from time to time to reflect the Principal Balance as it is decreased in accordance with the terms hereof.

**Juice Trust Credit Facility**

5. All or any part of the Principal Balance outstanding from time to time is convertible at the election of the Holder at any time and from time to time after the date hereof up to and including the close of business one (1) business day prior to the Maturity Date into principal owing under the amended and restated credit agreement between, amongst others, the Borrower and the Holder dated August 16, 2013, as may be further amended from time to time (the "**Credit Agreement").** If the Holder wishes to convert the Principal Balance, in whole or in part, and interest thereon into principal owing under the Credit Agreement (the "**Converted Amount"), it** shall surrender this Convertible Note to the Borrower, together with a notice of conversion of Converted Amount (the "**Credit Agreement Election").** Upon surrender of this Convertible Note together with the Credit Agreement Election, the Holder or its nominee or assignee, as the case may be, shall be entitled to be entered in the books of the Borrower as a lender of the Converted Amount under the Credit Facility, and as soon as practicable thereafter and in any event no later than fifteen (15) business days after receipt by the Borrower of the Credit Agreement Election, the Borrower shall deliver or cause to be delivered to the Holder a replacement convertible promissory note issued pursuant to the Credit Agreement in the amount of the Converted Amount, dated the date of the Credit Agreement Election and otherwise having the same terms and conditions as convertible promissory notes issued pursuant to the Credit Agreement.

**Conversion Privileges**

6. All or any part of the Principal Balance outstanding from time to time is convertible at the election of the Holder at any time and from time to time after the date hereof up to and including the close of business one (1) business day prior to the Maturity Date into Conversion Units at the Conversion Price, subject to adjustment as provided herein. In the event of such conversion, any interest on the outstanding Principal Balance shall convert into Conversion Units at the Conversion Price, subject to adjustment as provided herein.

**Manner and Exercise of Right to Convert**

7. If the Holder wishes to convert the Principal Balance, in whole or in part, and interest thereon into Conversion Units pursuant to the terms hereof, it shall surrender this Convertible Note to the Borrower, together with the conversion notice (the "**Notice of Conversion")** in the form attached as Appendix "A" hereto duly completed and executed by the Borrower, irrevocably exercising its right to convert the Principal Balance, or such portion thereof, and interest thereon in accordance with the provisions hereof. The date the Notice of Conversion is received by the Borrower shall be the effective date of such conversion (the "**Date of Conversion").** Upon surrender of this Convertible Note together with the Notice of Conversion, the Holder or its nominee or assignee, as the case may be, shall be entitled to be entered in the books of the Covenantor as of the Date of Conversion as the holder of the number of Conversion Units into which this Convertible Note, or portion thereof, is convertible in accordance with the terms hereof, and as soon as practicable thereafter and in any event no later than fifteen (15) business days after receipt by the Borrower of the Notice of Conversion, the Covenantor shall deliver or cause to be delivered to the Holder a copy of the certificate representing the Conversion Units (with the original certificate to remain in the minute book of the Covenantor).

8. If the Principal Balance is not converted in full by the Holder in accordance with section 7 hereof, upon surrender of this Convertible Note to the Borrower, the Borrower shall cancel same and shall, without charge, forthwith certify and deliver to the Holder a new Convertible Note in the aggregate Principal Balance equal to the unconverted part of the Principal Balance then outstanding.

9. Upon surrender of this Convertible Note for conversion in accordance with section 7, the Holder will be entitled to receive that number of Conversion Units as is equal to the sum of: (i) the quotient obtained upon dividing the Principal Balance to be converted by the Conversion Price, and (ii) the quotient obtained by dividing the interest on the Principal Balance to be converted by the Conversion Price.

10. Upon the first conversion of any portion of the Principal Balance, as a condition of conversion the Holder will be required to execute an acknowledgement to be bound by the partnership agreement governing the affairs of the Covenantor.

**Adjustments**

11. For the purposes of this Convertible Note, the Conversion Price will be adjusted proportionally for any subsequent unit distribution or split, unit combination or other similar recapitalization, reclassification or reorganization of or affecting the limited partnership units of the Covenantor. In the event of any acquisition or merger to which the Covenantor is a party other than a merger or consolidation in which the Covenantor is the continuing corporation, or in the case of any sale or conveyance to another corporation of the property of the Borrower or Covenantor as an entirety or substantially as an entirety, or in the case of any statutory exchange of securities with another corporation (including any exchange effected in connection with a merger of a third corporation into the Covenantor), then the Holder will have the right to convert the outstanding Principal Balance into Conversion Units at the Conversion Price immediately prior to such acquisition, merger, sale or conveyance. The provisions of this section will similarly apply to successive consolidations, mergers, statutory exchanges, sales or conveyances, provided that, notwithstanding any other provision hereof, no adjustment of the Conversion Price will be required unless such adjustment would require an increase or decrease of at least one percent (1%) in the Conversion Price then in effect.

**No Requirement to Issue Fractional Units**

12. The Covenantor shall not issue fractional Conversion Units upon the conversion of this Convertible Note. If any fractional interest in a Conversion Unit would be deliverable upon the conversion of any Principal Balance pursuant to the terms hereof, any such fractional interest will be rounded down to the nearest whole number of Conversion Units.

**Legended Unit Certificates**

13. The certificates representing the Conversion Shares shall contain the legend required by the limited partnership agreement governing the affairs of the Covenantor. In addition and notwithstanding anything herein contained to the contrary, the Conversion Units issuable upon conversion of this Convertible Note will only be issued in compliance with the securities laws of any applicable jurisdiction, and the certificates representing the Conversion Units thereby issued may bear such legend(s) as may, in the opinion of counsel to the Covenantor, acting reasonably, be necessary in order to avoid a violation of any applicable Canadian securities laws, any applicable United States securities laws or to comply with the requirements of any stock exchange on which the Conversion Units may be listed.

**Restrictions on Transfer**

14. This Convertible Note shall not be transferred or assigned without the Borrower's prior written consent, except such consent shall not be required if either the Borrower or the Covenantor are in default of either of their respective obligations under this Convertible Note.

**No Voting Rights**

15. The Convertible Note shall not entitle the Holder to any of the rights of a limited partner of the Covenantor, including without limitation, the right to vote, to receive distributions, or to receive any notice of, or to attend meetings of limited partners or any other proceedings of the Covenantor.

**Application of Payments**

16. Any amount paid in satisfaction of the indebtedness evidenced by this Convertible Note shall be applied first in satisfaction of any accrued and unpaid interest which is due and payable, with the remaining portion of such amount applied in satisfaction of the Principal Balance owing, with any remaining amount applied in satisfaction of any accrued but unpaid interest which is not yet due and payable as at the date on which such amount is paid.

**Judgment Interest**

17. If the Holder obtains judgment on this Convertible Note or in respect of any amount owing hereunder, interest at the aforesaid rate, calculated monthly, not in advance, shall be payable on the amount which is outstanding under the said judgment from time to time.

**Currency**

18. All amounts payable under this Convertible Note shall be payable in the currency in which the advance of the Principal Balance was made, as noted on the face page of this Convertible Note. Notwithstanding the foregoing, the Conversion Price is payable in the lawful currency of Canada. Any Principal Balance held in a currency other than Canadian currency and interest payable thereon which is converted to Conversion Units pursuant to this Convertible Note will be converted to Canadian dollars at the noon exchange rate posted by the Bank of Canada in effect on the last business day prior to the conversion to the Conversion Units.

**Non Waiver**

19. The extension of the time for making any payment which is due and payable hereunder at any time or times or the failure, delay or omission on the part of the Holder to exercise or enforce any rights or remedies of the Holder hereunder or under any instrument securing payment of the indebtedness evidenced by this Convertible Note shall not constitute a waiver of the right of the Holder to enforce such rights and remedies thereafter.

**Notices and Demands**

20. All notices and demands provided for herein shall be in writing and shall be given by prepaid first-class mail, by facsimile or other means of electronic communication or by delivery as hereafter provided. Notices and other communications shall be addressed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if to the Borrower or Covenantor, at 2114 Columbia Avenue, Rossland, B.C., VOG 1YO, Attn: Howard Katkov; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if to the Holder, at 314 Loma Larga Drive, Solana Beach, CA, 92075;

or as each party may otherwise notify the other parties in writing. Any such notice or other communication, if mailed by prepaid first-class mail at any time other than during a general discontinuance of postal service due to strike, lock-out or otherwise, shall be deemed to have been received on the fourth business day after the post-marked date thereof, or if sent by facsimile or other means of electronic communication, shall be deemed to have been received on the day it was sent (provided that if it was sent on a day which is not a business day, then it shall be deemed delivered on the business day following the sending), or if delivered by hand shall be deemed to have been received at the time it is delivered to the applicable address if such date is a business day and such delivery was made before 4:00 p.m. (Rossland time) and otherwise on the next business day. Notice of change of address shall also be governed by this Section. In the event of a general discontinuance of postal service due to strike, lock-out or otherwise, notices or other communications shall be delivered by hand or sent by facsimile or other means of electronic communication and shall be deemed to have been received in accordance with this Section.

**Amendments**

21. No amendment, modification or waiver of any provision of this Convertible Note or consent to any departure by the Borrower or Covenantor from any provision of this Convertible Note is in any event effective unless it is in writing and signed by the Holder and then the amendment, modification, waiver or consent is effective only in the specific instance and for the specific purpose for which it is given.

**Applicable Law**

22. This Convertible Note shall be construed and enforced in accordance with, and the rights of the parties hereto shall be governed by, the laws of the Province of British Columbia and the laws of Canada applicable therein.

**Time of the Essence**

23. Time shall in all respects be of the essence of this Convertible Note.

**Waiver of Benefits**

24. The Borrower hereby waives the benefits of demand and presentment for payment, notice of non-payment, protest and notice of protest of this Convertible Note.

**Compliance with Directions, etc.**

25. The Holder may at any time direct the Borrower to make any payment which is due and payable hereunder or to become due and payable hereunder to any person and the Borrower shall comply with such direction. The Borrower shall, upon the written demand of the Holder, confirm to any third party specified by the Holder that such direction has been received and that no prepayments have been made hereunder and that the Borrower has not been directed to make payments hereunder to any other person.

**Further Assurances**

26. The Borrower, Covenantor and Holder will use all reasonable efforts to give full effect to this Convertible Note and will execute and deliver all such further documents and instruments and do all such further acts and things as the other party reasonably requests to evidence, carry out and give full effect to the terms, conditions, intent and meaning set out herein.

IN WITNESS WHEREOF the Borrower and the Covenantor have executed this Convertible Note on the date first above written.

---

| | |
|:---|:---|
| **RMR ACQUISITION CORP.** <br> **(Borrower)** | **RMR ACQUISITION CORP.** <br> **(Borrower)** |
| Per: | /s/ Howard Katkov |
|  | Howard Katkov |
|  | Chief Executive Officer and President |
|  | I have authority to bind the Borrower |
| **RED MOUNTAIN VENTURES LIMITED PARTNERSHIP,** by its general partner, **Red Mountain Ventures G.P. Ltd.** | **RED MOUNTAIN VENTURES LIMITED PARTNERSHIP,** by its general partner, **Red Mountain Ventures G.P. Ltd.** |
| **(Covenantor)** | **(Covenantor)** |
| Per: | /s/ Howard Katkov |
|  | Howard Katkov |
|  | Chief Executive Officer and President |
|  | I have authority to bind the Covenantor |

---

**APPENDIX A TO**

**CONVERTIBLE NOTE**

**FROM RMR ACQUISITION CORP. AND**

**RED MOUNTAIN VENTURES LIMITED PARTNERSHIP**

**NOTICE OF CONVERSION**

---

| | |
|:---|:---|
| **To:** | RMR Acquisition Corp. (the "Borrower") |

---

---

| | |
|:---|:---|
| **And To:** | Red Mountain Ventures Limited Partnership (the "Covenantor") |

---

The undersigned is the registered holder (the "Holder") of the Convertible Note(s) evidenced by the certificate(s) attached to this Notice and hereby gives notice of conversion of $<u> </u> principal amount of the Convertible Note(s) in exchange for Class C Units of the Covenantor (the "Conversion Units") at a conversion price of CDN $8.86 per Conversion Unit. Any principal amount held in a currency other than Canadian currency and interest payable thereon which is converted to Conversion Units pursuant to this Notice of Conversion will be converted to Canadian dollars at the noon exchange rate posted by the Bank of Canada in effect on the last business day prior to the conversion to the Conversion Units.

The undersigned irrevocably directs that the Conversion Units be issued and delivered as follows:

---

| | | |
|:---|:---|:---|
| <br>**Name(s) in Full** | <br>**Address(es)**<br>**(Include Postal Codes)** | **Allocation of**<br>**Conversion Units**<br>**(expressed as a**<br>**percentage)** |
|  |  | % |
|  |  | % |
|  |  | % |
|  | **Total** | 100% |

---

(Please print the full name in which the certificate(s) representing the Conversion Units is/are to be issued. If any certificates are to be issued to a person or persons other than the Holder, the Holder must pay to the Covenantor all eligible transfer taxes or other government charges).

Dated this<u> </u> day of<u> </u>,<u> </u>

---

| | |
|:---|:---|
| *Signature of Witness* | *Signature of Holder* |
| *Name of Witness* | *Name of Holder* |

---

**CONVERTIBLE PROMISSORY NOTE**

---

| | |
|:---|:---|
| CAD**$250,000** | December 16, 2014 |

---

**FOR VALUE RECEIVED**, the undersigned, **RMR ACQUISITION CORP**. (the "**Borrower**") hereby promises to pay to or to the order of **Jeff Busby, in trust for the Juice Trust dtd 1/24/96 Trust 3** (the "**Holder**"), on or before April 18, 2019 (the "**Maturity Date**"), the principal amount of **$250,000** Canadian dollars (the "**Principal Balance**"), together with interest as hereinafter provided for.

Set out below is a statement of the rights of the Holder and the conditions to which this convertible promissory note (the "**Convertible Note**") is subject and to which the Holder, by the acceptance of this Convertible Note, agrees.

**Interest**

1. The Principal Balance, both before and after maturity, default or judgment and overdue interest both before and after default or judgment, shall bear interest from and including the issue date of this Convertible Note, at the rate of 8.0% per annum, calculated daily and compounded annually and payable on the Maturity Date, not in advance.

**Payment of Principal Balance and Interest**

2. Unless previously prepaid or converted in accordance with the terms hereof, the full amount of the Principal Balance together with all accrued and unpaid interest is due and payable on the Maturity Date and will be paid by sending a cheque by prepaid ordinary mail or by delivering other transfer of funds as may be agreed by the Holder, for such Principal Balance and interest payable to the order of the Holder and addressed to it unless the Holder otherwise directs. In the event of non-receipt of any cheque or funds for the Principal Balance and interest by the Holder, the Borrower will cause to be issued to the Holder a replacement cheque or replacement transfer of funds for like amount upon being furnished with such evidence of non-receipt as it shall reasonably require and upon being indemnified to its satisfaction, acting reasonably.

**Prepayment of Principal Balance and Interest**

3. The Principal Balance together with all accrued and unpaid interest may be prepaid in full by the Borrower prior to the Maturity Date, without any bonus or penalty whatsoever, upon fifteen (15) days prior written notice being provided by the Borrower to the Holder (the "**Prepayment Notice**").

4. Upon receipt of the Prepayment Notice, the Holder will have the right to either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) accept the prepayment; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) elect to convert the outstanding Principal Balance together with all accrued and unpaid interest at a price of Cdn$8.86 (the "**Conversion Price**") per Class C Unit (the "**Conversion Units**") of Red Mountain Ventures Limited Partnership (the "**Covenantor**"), parent of the Borrower, subject to adjustment as provided herein.

In the event that the Holder wishes to convert the outstanding Principal Balance and interest thereon, then the Holder shall deliver a duly completed and executed Notice of Conversion (as defined herein) to the Borrower within fifteen (15) days following receipt by the Holder of the Prepayment Notice.

The records of the Borrower shall be updated from time to time to reflect the Principal Balance as it is decreased in accordance with the terms hereof.

**Juice Trust Credit Facility**

5. All or any part of the Principal Balance outstanding from time to time is convertible at the election of the Holder at any time and from time to time after the date hereof up to and including the close of business one (1) business day prior to the Maturity Date into principal owing under the amended and restated credit agreement between, amongst others, the Borrower and the Holder dated August 16, 2013, as may be further amended from time to time (the "**Credit Agreement").** If the Holder wishes to convert the Principal Balance, in whole or in part, and interest thereon into principal owing under the Credit Agreement (the "**Converted Amount"),** it shall surrender this Convertible Note to the Borrower, together with a notice of conversion of Converted Amount (the "**Credit Agreement Election").** Upon surrender of this Convertible Note together with the Credit Agreement Election, the Holder or its nominee or assignee, as the case may be, shall be entitled to be entered in the books of the Borrower as a lender of the Converted Amount under the Credit Facility, and as soon as practicable thereafter and in any event no later than fifteen (15) business days after receipt by the Borrower of the Credit Agreement Election, the Borrower shall deliver or cause to be delivered to the Holder a replacement convertible promissory note issued pursuant to the Credit Agreement in the amount of the Converted Amount, dated the date of the Credit Agreement Election and otherwise having the same terms and conditions as convertible promissory notes issued pursuant to the Credit Agreement.

**Conversion Privileges**

6. All or any part of the Principal Balance outstanding from time to time is convertible at the election of the Holder at any time and from time to time after the date hereof up to and including the close of business one (I) business day prior to the Maturity Date into Conversion Units at the Conversion Price, subject to adjustment as provided herein. In the event of such conversion, any interest on the outstanding Principal Balance shall convert into Conversion Units at the Conversion Price, subject to adjustment as provided herein.

**Manner and Exercise of Right to Convert**

7. If the Holder wishes to convert the Principal Balance, in whole or in part, and interest thereon into Conversion Units pursuant to the terms hereof, it shall surrender this Convertible Note to the Borrower, together with the conversion notice (the "**Notice of Conversion")** in the form attached as Appendix "A" hereto duly completed and executed by the Borrower, irrevocably exercising its right to convert the Principal Balance, or such portion thereof; and interest thereon in accordance with the provisions hereof. The date the Notice of Conversion is received by the Borrower shall be the effective date of such conversion (the "**Date of Conversion").** Upon surrender of this Convertible Note together with the Notice of Conversion, the Holder or its nominee or assignee, as the case may be, shall be entitled to be entered in the books of the Covenantor as of the Date of Conversion as the holder of the number of Conversion Units into which this Convertible Note, or portion thereof, is convertible in accordance with the terms hereof, and as soon as practicable thereafter and in any event no later than fifteen (15) business days after receipt by the Borrower of the Notice of Conversion, the Covenantor shall deliver or cause to be delivered to the Holder a copy of the certificate representing the Conversion Units (with the original certificate to remain in the minute book of the Covenantor).

8. If the Principal Balance is not converted in full by the Holder in accordance with section 7 hereof, upon surrender of this Convertible Note to the Borrower, the Borrower shall cancel same and shall, without charge, forthwith certify and deliver to the Holder a new Convertible Note in the aggregate Principal Balance equal to the unconverted part of the Principal Balance then outstanding.

9. Upon surrender of this Convertible Note for conversion in accordance with section 7, the Holder will be entitled to receive that number of Conversion Units as is equal to the sum of: (i) the quotient obtained upon dividing the Principal Balance to be converted by the Conversion Price, and (ii) the quotient obtained by dividing the interest on the Principal Balance to be converted by the Conversion Price.

10. Upon the first conversion of any portion of the Principal Balance, as a condition of conversion the Holder will be required to execute an acknowledgement to be bound by the partnership agreement governing the affairs of the Covenantor.

**Adjustments**

11. For the purposes of this Convertible Note, the Conversion Price will be adjusted proportionally for any subsequent unit distribution or split, unit combination or other similar recapitalization, reclassification or reorganization of or affecting the limited partnership units of the Covenantor. In the event of any acquisition or merger to which the Covenantor is a party other than a merger or consolidation in which the Covenantor is the continuing corporation, or in the case of any sale or conveyance to another corporation of the property of the Borrower or Covenantor as an entirety or substantially as an entirety, or in the case of any statutory exchange of securities with another corporation (including any exchange effected in connection with a merger of a third corporation into the Covenantor), then the Holder will have the right to convert the outstanding Principal Balance into Conversion Units at the Conversion Price immediately prior to such acquisition, merger, sale or conveyance. The provisions of this section will similarly apply to successive consolidations, mergers, statutory exchanges, sales or conveyances, provided that, notwithstanding any other provision hereof, no adjustment of the Conversion Price will be required unless such adjustment would require an increase or decrease of at least one percent (I%) in the Conversion Price then in effect.

**No Requirement to Issue Fractional Units**

12. The Covenantor shall not issue fractional Conversion Units upon the conversion of this Convertible Note. If any fractional interest in a Conversion Unit would be deliverable upon the conversion of any Principal Balance pursuant to the terms hereof, any such fractional interest will be rounded down to the nearest whole number of Conversion Units.

**Legended Unit Certificates**

13. The certificates representing the Conversion Shares shall contain the legend required by the limited partnership agreement governing the affairs of the Covenantor. In addition and notwithstanding anything herein contained to the contrary, the Conversion Units issuable upon conversion of this Convertible Note will only be issued in compliance with the securities laws of any applicable jurisdiction, and the certificates representing the Conversion Units thereby issued may bear such legend(s) as may, in the opinion of counsel to the Covenantor, acting reasonably, be necessary in order to avoid a violation of any applicable Canadian securities laws, any applicable United States securities laws or to comply with the requirements of any stock exchange on which the Conversion Units may be listed.

**Restrictions on Transfer**

14. This Convertible Note shall not be transferred or assigned without the Borrower's prior written consent, except such consent shall not be required if either the Borrower or the Covenantor are in default of either of their respective obligations under this Convertible Note.

**No Voting Rights**

15. The Convertible Note shall not entitle the Holder to any of the rights of a limited partner of the Covenantor, including without limitation, the right to vote, to receive distributions, or to receive any notice of, or to attend meetings of limited partners or any other proceedings of the Covenantor.

**Application of Payments**

16. Any amount paid in satisfaction of the indebtedness evidenced by this Convertible Note shall be applied first in satisfaction of any accrued and unpaid interest which is due and payable, with the remaining portion of such amount applied in satisfaction of the Principal Balance owing, with any remaining amount applied in satisfaction of any accrued but unpaid interest which is not yet due and payable as at the date on which such amount is paid.

**Judgment Interest**

17. If the Holder obtains judgment on this Convertible Note or in respect of any amount owing hereunder, interest at the aforesaid rate, calculated monthly, not in advance, shall be payable on the amount which is outstanding under the said judgment from time to time.

**Currency**

18. All amounts payable under this Convertible Note shall be payable in the currency in which the advance of the Principal Balance was made, as noted on the face page of this Convertible Note. Notwithstanding the foregoing, the Conversion Price is payable in the lawful currency of Canada. Any Principal Balance held in a currency other than Canadian currency and interest payable thereon which is converted to Conversion Units pursuant to this Convertible Note will be converted to Canadian dollars at the noon exchange rate posted by the Bank of Canada in effect on the last business day prior to the conversion to the Conversion Units.

**Non Waiver**

19. The extension of the time for making any payment which is due and payable hereunder at any time or times or the failure, delay or omission on the part of the Holder to exercise or enforce any rights or remedies of the Holder hereunder or under any instrument securing payment of the indebtedness evidenced by this Convertible Note shall not constitute a waiver of the right of the Holder to enforce such rights and remedies thereafter.

**Notices and Demands**

20. All notices and demands provided for herein shall be in writing and shall be given by prepaid first-class mail, by facsimile or other means of electronic communication or by delivery as hereafter provided. Notices and other communications shall be addressed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if to the Borrower or Covenantor, at 2114 Columbia Avenue, Rossland, B.C., VOG 1Y0, Attn: Howard Katkov; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if to the Holder, at 314 Loma Larga Drive, Solana Beach, CA, 92075;

or as each party may otherwise notify the other parties in writing. Any such notice or other communication, if mailed by prepaid first-class mail at any time other than during a general discontinuance of postal service due to strike, lock-out or otherwise, shall be deemed to have been received on the fourth business day after the post-marked date thereof, or if sent by facsimile or other means of electronic communication, shall be deemed to have been received on the day it was sent (provided that if it was sent on a day which is not a business day, then it shall be deemed delivered on the business day following the sending), or if delivered by hand shall be deemed to have been received at the time it is delivered to the applicable address if such date is a business day and such delivery was made before 4:00 p.m. (Rossland time) and otherwise on the next business day. Notice of change of address shall also be governed by this Section. In the event of a general discontinuance of postal service due to strike, lock-out or otherwise, notices or other communications shall be delivered by hand or sent by facsimile or other means of electronic communication and shall be deemed to have been received in accordance with this Section.

**Amendments**

21. No amendment, modification or waiver of any provision of this Convertible Note or consent to any departure by the Borrower or Covenantor from any provision of this Convertible Note is in any event effective unless it is in writing and signed by the Holder and then the amendment, modification, waiver or consent is effective only in the specific instance and for the specific purpose for which it is given.

**Applicable Law**

22. This Convertible Note shall be construed and enforced in accordance with, and the rights of the parties hereto shall be governed by, the laws of the Province of British Columbia and the laws of Canada applicable therein.

**Time of the Essence**

23. Time shall in all respects be of the essence of this Convertible Note.

**Waiver of Benefits**

24. The Borrower hereby waives the benefits of demand and presentment for payment, notice of non-payment, protest and notice of protest of this Convertible Note.

**Compliance with Directions, etc.**

25. The Holder may at any time direct the Borrower to make any payment which is due and payable hereunder or to become due and payable hereunder to any person and the Borrower shall comply with such direction. The Borrower shall, upon the written demand of the Holder, confirm to any third party specified by the Holder that such direction has been received and that no prepayments have been made hereunder and that the Borrower has not been directed to make payments hereunder to any other person.

**Further Assurances**

26. The Borrower, Covenantor and Holder will use all reasonable efforts to give full effect to this Convertible Note and will execute and deliver all such further documents and instruments and do all such further acts and things as the other party reasonably requests to evidence, carry out and give full effect to the terms, conditions, intent and meaning set out herein.

IN WITNESS WHEREOF the Borrower and the Covenantor have executed this Convertible Note on the date first above written.

---

| | |
|:---|:---|
| **RMR ACQUISITION CORP.** <br> **(Borrower)** | **RMR ACQUISITION CORP.** <br> **(Borrower)** |
| Per: | /s/ Howard Katkov |
|  | Howard Katkov |
|  | Chief Executive Officer and President |
|  | I have authority to bind the Borrower |
| **RED MOUNTAIN VENTURES LIMITED PARTNERSHIP,** by its general partner, **Red Mountain Ventures G.P. Ltd.** | **RED MOUNTAIN VENTURES LIMITED PARTNERSHIP,** by its general partner, **Red Mountain Ventures G.P. Ltd.** |
| **(Covenantor)** | **(Covenantor)** |
| Per: | /s/ Howard Katkov |
|  | Howard Katkov |
|  | Chief Executive Officer and President |
|  | I have authority to bind the Covenantor |

---

**APPENDIX A TO**

**CONVERTIBLE NOTE**

**FROM RMR ACQUISITION CORP. AND**

**RED MOUNTAIN VENTURES LIMITED PARTNERSHIP**

**NOTICE OF CONVERSION**

---

| | |
|:---|:---|
| **To:** | RMR Acquisition Corp. (the "Borrower") |

---

---

| | |
|:---|:---|
| **And To:** | Red Mountain Ventures Limited Partnership (the "Covenantor") |

---

The undersigned is the registered holder (the "Holder") of the Convertible Note(s) evidenced by the certificate(s) attached to this Notice and hereby gives notice of conversion of $<u> </u>principal amount of the Convertible Note(s) in exchange for Class C Units of the Covenantor (the "Conversion Units") at a conversion price of CDN $8.86 per Conversion Unit. Any principal amount held in a currency other than Canadian currency and interest payable thereon which is converted to Conversion Units pursuant to this Notice of Conversion will be converted to Canadian dollars at the noon exchange rate posted by the Bank of Canada in effect on the last business day prior to the conversion to the Conversion Units.

The undersigned irrevocably directs that the Conversion Units be issued and delivered as follows:

---

| | | |
|:---|:---|:---|
| <br>**Name(s) in Full** | <br>**Address(es)**<br>**(Include Postal Codes)** | **Allocation of**<br>**Conversion Units**<br>**(expressed as a**<br>**percentage)** |
|  |  | % |
|  |  | % |
|  |  | % |
|  | **Total** | 100% |

---

(Please print the full name in which the certificate(s) representing the Conversion Units is/are to be issued. If any certificates are to be issued to a person or persons other than the Holder, the Holder must pay to the Covenantor all eligible transfer taxes or other government charges).

Dated this<u> </u> day of<u> </u> ,<u> </u>

---

| | |
|:---|:---|
| *Signature of Witness* | *Signature of Holder* |
| *Name of Witness* | *Name of Holder* |

---

**CONVERTIBLE PROMISSORY NOTE**

---

| | |
|:---|:---|
| CAD**$500,000** | March 16, 2015 |

---

**FOR VALUE RECEIVED**, the undersigned, **RMR ACQUISITION CORP.** (the "**Borrower**") hereby promises to pay to or to the order of **Jeff Busby, in trust for the Juice Trust dtd 1/24/96 Trust 3** (the "**Holder**"), on or before April 18. 2019 (the "**Maturity Date**"), the principal amount of **$500,000** Canadian dollars (the "**Principal Balance**"), together with interest as hereinafter provided for.

Set out below is a statement of the rights of the Holder and the conditions to which this convertible promissory note (the "**Convertible Note**") is subject and to which the Holder, by the acceptance of this Convertible Note. agrees.

**Interest**

1. The Principal Balance, both before and after maturity, default or judgment and overdue interest both before and after default or judgment, shall bear interest from and including the issue date of this Convertible Note, at the rate of 8.0% per annum, calculated daily and compounded annually and payable on the Maturity Date, not in advance.

**Payment of Principal Balance and Interest**

2. Unless previously prepaid or converted in accordance with the terms hereof, the full amount of the Principal Balance together with all accrued and unpaid interest is due and payable on the Maturity Date and will be paid by sending a cheque by prepaid ordinary mail or by delivering other transfer of funds as may be agreed by the Holder, for such Principal Balance and interest payable to the order of the Holder and addressed to it unless the Holder otherwise directs. In the event of non-receipt of any cheque or funds for the Principal Balance and interest by the Holder, the Borrower will cause to be issued to the Holder a replacement cheque or replacement transfer of funds for like amount upon being furnished with such evidence of non-receipt as it shall reasonably require and upon being indemnified to its satisfaction, acting reasonably.

**Prepayment of Principal Balance and Interest**

3. The Principal Balance together with all accrued and unpaid interest may be prepaid in full by the Borrower prior to the Maturity Date, without any bonus or penalty whatsoever, upon fifteen (15) days prior written notice being provided by the Borrower to the Holder (the "**Prepayment Notice**").

4. Upon receipt of the Prepayment Notice, the Holder will have the right to either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) accept the prepayment; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) elect to convert the outstanding Principal Balance together with all accrued and unpaid interest at a price of Cdn$8.86 (the "**Conversion Price**") per Class C Unit (the "**Conversion Units**") of Red Mountain Ventures Limited Partnership (the "**Covenantor**"), parent of the Borrower, subject to adjustment as provided herein.

In the event that the Holder wishes to convert the outstanding Principal Balance and interest thereon, then the Holder shall deliver a duly completed and executed Notice of Conversion (as defined herein) to the Borrower within fifteen (15) days following receipt by the Holder of the Prepayment Notice.

The records of the Borrower shall be updated from time to time to reflect the Principal Balance as it is decreased in accordance with the terms hereof.

**Juice Trust Credit Facility**

5. All or any part of the Principal Balance outstanding from time to time is convertible at the election of the Holder at any time and from time to time after the date hereof up to and including the close of business one (1) business day prior to the Maturity Date into principal owing under the amended and restated credit agreement between, amongst others, the Borrower and the Holder dated August 16, 2013, as may be further amended from time to time (the "**Credit Agreement").** If the Holder wishes to convert the Principal Balance, in whole or in part, and interest thereon into principal owing under the Credit Agreement (the "**Converted Amount"),** it shall surrender this Convertible Note to the Borrower, together with a notice of conversion of Converted Amount (the "**Credit Agreement Election").** Upon surrender of this Convertible Note together with the Credit Agreement Election, the Holder or its nominee or assignee, as the case may be, shall be entitled to be entered in the books of the Borrower as a lender of the Converted Amount under the Credit Facility, and as soon as practicable thereafter and in any event no later than fifteen (15) business days after receipt by the Borrower of the Credit Agreement Election, the Borrower shall deliver or cause to be delivered to the Holder a replacement convertible promissory note issued pursuant to the Credit Agreement in the amount of the Converted Amount, dated the date of the Credit Agreement Election and otherwise having the same terms and conditions as convertible promissory notes issued pursuant to the Credit Agreement.

**Conversion Privileges**

6. All or any part of the Principal Balance outstanding from time to time is convertible at the election of the Holder at any time and from time to time after the date hereof up to and including the close of business one (1) business day prior to the Maturity Date into Conversion Units at the Conversion Price, subject to adjustment as provided herein. In the event of such conversion, any interest on the outstanding Principal Balance shall convert into Conversion Units at the Conversion Price, subject to adjustment as provided herein.

**Manner and Exercise of Right to Convert**

7. If the Holder wishes to convert the Principal Balance, in whole or in part, and interest thereon into Conversion Units pursuant to the terms hereof, it shall surrender this Convertible Note to the Borrower, together with the conversion notice (the "**Notice of Conversion")** in the form attached as Appendix "A" hereto duly completed and executed by the Borrower, irrevocably exercising its right to convert the Principal Balance, or such portion thereof, and interest thereon in accordance with the provisions hereof. The date the Notice of Conversion is received by the Borrower shall be the effective date of such conversion (the "**Date of Conversion").** Upon surrender of this Convertible Note together with the Notice of Conversion, the Holder or its nominee or assignee, as the case may be, shall be entitled to be entered in the books of the Covenantor as of the Date of Conversion as the holder of the number of Conversion Units into which this Convertible Note, or portion thereof, is convertible in accordance with the terms hereof, and as soon as practicable thereafter and in any event no later than fifteen (15) business days after receipt by the Borrower of the Notice of Conversion, the Covenantor shall deliver or cause to be delivered to the Holder a copy of the certificate representing the Conversion Units (with the original certificate to remain in the minute book of the Covenantor).

8. If the Principal Balance is not converted in full by the Holder in accordance with section 7 hereof, upon surrender of this Convertible Note to the Borrower, the Borrower shall cancel same and shall, without charge, forthwith certify and deliver to the Holder a new Convertible Note in the aggregate Principal Balance equal to the unconverted part of the Principal Balance then outstanding.

9. Upon surrender of this Convertible Note for conversion in accordance with section 7, the Holder will be entitled to receive that number of Conversion Units as is equal to the sum of: (i) the quotient obtained upon dividing the Principal Balance to be converted by the Conversion Price, and (ii) the quotient obtained by dividing the interest on the Principal Balance to be converted by the Conversion Price.

10. Upon the first conversion of any portion of the Principal Balance, as a condition of conversion the Holder will be required to execute an acknowledgement to be bound by the partnership agreement governing the affairs of the Covenantor.

**Adjustments**

11. For the purposes of this Convertible Note, the Conversion Price will be adjusted proportionally for any subsequent unit distribution or split, unit combination or other similar recapitalization, reclassification or reorganization of or affecting the limited partnership units of the Covenantor. In the event of any acquisition or merger to which the Covenantor is a party other than a merger or consolidation in which the Covenantor is the continuing corporation, or in the case of any sale or conveyance to another corporation of the property of the Borrower or Covenantor as an entirety or substantially as an entirety, or in the case of any statutory exchange of securities with another corporation (including any exchange effected in connection with a merger of a third corporation into the Covenantor), then the Holder will have the right to convert the outstanding Principal Balance into Conversion Units at the Conversion Price immediately prior to such acquisition, merger, sale or conveyance. The provisions of this section will similarly apply to successive consolidations, mergers, statutory exchanges, sales or conveyances, provided that, notwithstanding any other provision hereof, no adjustment of the Conversion Price will be required unless such adjustment would require an increase or decrease of at least one percent (1%) in the Conversion Price then in effect.

**No Requirement to Issue Fractional Units**

12. The Covenantor shall not issue fractional Conversion Units upon the conversion of this Convertible Note. If any fractional interest in a Conversion Unit would be deliverable upon the conversion of any Principal Balance pursuant to the terms hereof, any such fractional interest will be rounded down to the nearest whole number of Conversion Units.

**Legended Unit Certificates**

13. The certificates representing the Conversion Shares shall contain the legend required by the limited partnership agreement governing the affairs of the Covenantor. In addition and notwithstanding anything herein contained to the contrary, the Conversion Units issuable upon conversion of this Convertible Note will only be issued in compliance with the securities laws of any applicable jurisdiction, and the certificates representing the Conversion Units thereby issued may bear such legend(s) as may, in the opinion of counsel to the Covenantor, acting reasonably, be necessary in order to avoid a violation of any applicable Canadian securities laws, any applicable United States securities laws or to comply with the requirements of any stock exchange on which the Conversion Units may be listed.

**Restrictions on Transfer**

14. This Convertible Note shall not be transferred or assigned without the Borrower's prior written consent, except such consent shall not be required if either the Borrower or the Covenantor are in default of either of their respective obligations under this Convertible Note.

**No Voting Rights**

15. The Convertible Note shall not entitle the Holder to any of the rights of a limited partner of the Covenantor, including without limitation, the right to vote, to receive distributions, or to receive any notice of, or to attend meetings of limited partners or any other proceedings of the Covenantor.

**Application of Payments**

16. Any amount paid in satisfaction of the indebtedness evidenced by this Convertible Note shall be applied first in satisfaction of any accrued and unpaid interest which is due and payable, with the remaining portion of such amount applied in satisfaction of the Principal Balance owing, with any remaining amount applied in satisfaction of any accrued but unpaid interest which is not yet due and payable as at the date on which such amount is paid.

**Judgment Interest**

17. If the Holder obtains judgment on this Convertible Note or in respect of any amount owing hereunder, interest at the aforesaid rate, calculated monthly, not in advance, shall be payable on the amount which is outstanding under the said judgment from time to time.

**Currency**

18. All amounts payable under this Convertible Note shall be payable in the currency in which the advance of the Principal Balance was made, as noted on the face page of this Convertible Note. Notwithstanding the foregoing, the Conversion Price is payable in the lawful currency of Canada. Any Principal Balance held in a currency other than Canadian currency and interest payable thereon which is converted to Conversion Units pursuant to this Convertible Note will be converted to Canadian dollars at the noon exchange rate posted by the Bank of Canada in effect on the last business day prior to the conversion to the Conversion Units.

**Non Waiver**

19. The extension of the time for making any payment which is due and payable hereunder at any time or times or the failure, delay or omission on the part of the Holder to exercise or enforce any rights or remedies of the Holder hereunder or under any instrument securing payment of the indebtedness evidenced by this Convertible Note shall not constitute a waiver of the right of the Holder to enforce such rights and remedies thereafter.

**Notices and Demands**

20. All notices and demands provided for herein shall be in writing and shall be given by prepaid first-class mail, by facsimile or other means of electronic communication or by delivery as hereafter provided. Notices and other communications shall be addressed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if to the Borrower or Covenantor, at 2114 Columbia Avenue, Rossland, B.C., VOG 1YO, Attn: Howard Katkov; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if to the Holder, at 314 Loma Larga Drive, Solana Beach, CA, 92075;

or as each party may otherwise notify the other parties in writing. Any such notice or other communication, if mailed by prepaid first-class mail at any time other than during a general discontinuance of postal service due to strike, lock-out or otherwise, shall be deemed to have been received on the fourth business day after the post-marked date thereof, or if sent by facsimile or other means of electronic communication, shall be deemed to have been received on the day it was sent (provided that if it was sent on a day which is not a business day, then it shall be deemed delivered on the business day following the sending), or if delivered by hand shall be deemed to have been received at the time it is delivered to the applicable address if such date is a business day and such delivery was made before 4:00 p.m. (Rossland time) and otherwise on the next business day. Notice of change of address shall also be governed by this Section. In the event of a general discontinuance of postal service due to strike, lock-out or otherwise, notices or other communications shall be delivered by hand or sent by facsimile or other means of electronic communication and shall be deemed to have been received in accordance with this Section.

**Amendments**

21. No amendment, modification or waiver of any provision of this Convertible Note or consent to any departure by the Borrower or Covenantor from any provision of this Convertible Note is in any event effective unless it is in writing and signed by the Holder and then the amendment, modification, waiver or consent is effective only in the specific instance and for the specific purpose for which it is given.

**Applicable Law**

22. This Convertible Note shall be construed and enforced in accordance with, and the rights of the parties hereto shall be governed by, the laws of the Province of British Columbia and the laws of Canada applicable therein.

**Time of the Essence**

23. Time shall in all respects be of the essence of this Convertible Note.

**Waiver of Benefits**

24. The Borrower hereby waives the benefits of demand and presentment for payment, notice of nonpayment, protest and notice of protest of this Convertible Note.

**Compliance with Directions, etc.**

25. The Holder may at any time direct the Borrower to make any payment which is due and payable hereunder or to become due and payable hereunder to any person and the Borrower shall comply with such direction. The Borrower shall, upon the written demand of the Holder, confirm to any third party specified by the Holder that such direction has been received and that no prepayments have been made hereunder and that the Borrower has not been directed to make payments hereunder to any other person.

**Further Assurances**

26. The Borrower, Covenantor and Holder will use all reasonable efforts to give full effect to this Convertible Note and will execute and deliver all such further documents and instruments and do all such further acts and things as the other party reasonably requests to evidence, carry out and give full effect to the terms, conditions, intent and meaning set out herein.

IN WITNESS WHEREOF the Borrower and the Covenantor have executed this Convertible Note on the date first above written.

---

| | |
|:---|:---|
| **RMR ACQUISITION CORP.** <br> **(Borrower)** | **RMR ACQUISITION CORP.** <br> **(Borrower)** |
| Per: | /s/ Howard Katkov |
|  | Howard Katkov |
|  | Chief Executive Officer |
|  | I have authority to bind the Borrower |
| **RED MOUNTAIN VENTURES LIMITED PARTNERSHIP,** by its general partner, **Red Mountain Ventures G.P. Ltd.** | **RED MOUNTAIN VENTURES LIMITED PARTNERSHIP,** by its general partner, **Red Mountain Ventures G.P. Ltd.** |
| **(Covenantor)** | **(Covenantor)** |
| Per: | /s/ Howard Katkov |
|  | Howard Katkov |
|  | Chief Executive Officer |
|  | I have authority to bind the Covenantor |

---

**APPENDIX A TO**

**CONVERTIBLE NOTE**

**FROM RMR ACQUISITION CORP. AND**

**RED MOUNTAIN VENTURES LIMITED PARTNERSHIP**

**NOTICE OF CONVERSION**

---

| | |
|:---|:---|
| **To:** | RMR Acquisition Corp. (the "Borrower") |

---

---

| | |
|:---|:---|
| **And To:** | Red Mountain Ventures Limited Partnership (the "Covenantor") |

---

The undersigned is the registered holder (the "Holder") of the Convertible Note(s) evidenced by the certificate(s) attached to this Notice and hereby gives notice of conversion of $<u> </u> principal amount of the Convertible Note(s) in exchange for Class C Units of the Covenantor (the "Conversion Units") at a conversion price of CDN $8.86 per Conversion Unit. Any principal amount held in a currency other than Canadian currency and interest payable thereon which is converted to Conversion Units pursuant to this Notice of Conversion will be converted to Canadian dollars at the noon exchange rate posted by the Bank of Canada in effect on the last business day prior to the conversion to the Conversion Units.

The undersigned irrevocably directs that the Conversion Units be issued and delivered as follows:

---

| | | |
|:---|:---|:---|
| <br>**Name(s) in Full** | <br>**Address(es)**<br>**(Include Postal Codes)** | **Allocation of**<br>**Conversion Units**<br>**(expressed as a**<br>**percentage)** |
|  |  | % |
|  |  | % |
|  |  | % |
|  | **Total** | 100% |

---

(Please print the full name in which the certificate(s) representing the Conversion Units is/are to be issued. If any certificates are to be issued to a person or persons other than the Holder, the Holder must pay to the Covenantor all eligible transfer taxes or other government charges).

Dated this<u> </u> day of<u> </u>,<u> </u>

---

| | |
|:---|:---|
| *Signature of Witness* | *Signature of Holder* |
| *Name of Witness* | *Name of Holder* |

---

**CONVERTIBLE PROMISSORY NOTE**

---

| | |
|:---|:---|
| CAD**$750,000** | July 1, 2015 |

---

**FOR VALUE RECEIVED,** the undersigned, **RMR ACQUISITION CORP.** (the "**Borrower**") hereby promises to pay to or to the order of **Jeff Busby, in trust for the Juice Trust dtd 1/24/96 Trust 3** (the "**Holder**"), on or before April 18, 2019 (the "**Maturity Date**"), the principal amount of **$750,000** Canadian dollars (the "**Principal Balance**"), together with interest as hereinafter provided for.

Set out below is a statement of the rights of the Holder and the conditions to which this convertible promissory note (the "**Convertible Note**") is subject and to which the Holder, by the acceptance of this Convertible Note, agrees.

**Interest**

1. The Principal Balance, both before and after maturity, default or judgment and overdue interest both before and after default or judgment, shall bear interest from and including the issue date of this Convertible Note, at the rate of 8.0% per annum, calculated daily and compounded annually and payable on the Maturity Date, not in advance.

**Payment of Principal Balance and Interest**

2. Unless previously prepaid or converted in accordance with the terms hereof, the full amount of the Principal Balance together with all accrued and unpaid interest is due and payable on the Maturity Date and will be paid by sending a cheque by prepaid ordinary mail or by delivering other transfer of funds as may be agreed by the Holder, for such Principal Balance and interest payable to the order of the Holder and addressed to it unless the Holder otherwise directs. In the event of non-receipt of any cheque or funds for the Principal Balance and interest by the Holder, the Borrower will cause to be issued to the Holder a replacement cheque or replacement transfer of funds for like amount upon being furnished with such evidence of non-receipt as it shall reasonably require and upon being indemnified to its satisfaction, acting reasonably.

**Prepayment of Principal Balance and Interest**

3. The Principal Balance together with all accrued and unpaid interest may be prepaid in full by the Borrower prior to the Maturity Date, without any bonus or penalty whatsoever, upon fifteen (15) days prior written notice being provided by the Borrower to the Holder (the "**Prepayment Notice**").

4. Upon receipt of the Prepayment Notice, the Holder will have the right to either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) accept the prepayment; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) elect to convert the outstanding Principal Balance together with all accrued and unpaid interest at a price of Cdn$8.86 (the "**Conversion Price**") per Class C Unit (the "**Conversion Units**") of Red Mountain Ventures Limited Partnership (the "**Covenantor**"), parent of the Borrower, subject to adjustment as provided herein.

In the event that the Holder wishes to convert the outstanding Principal Balance and interest thereon, then the Holder shall deliver a duly completed and executed Notice of Conversion (as defined herein) to the Borrower within fifteen (15) days following receipt by the Holder of the Prepayment Notice.

The records of the Borrower shall be updated from time to time to reflect the Principal Balance as it is decreased in accordance with the terms hereof.

**Juice Trust Credit Facility**

5. All or any part of the Principal Balance outstanding from time to time is convertible at the election of the Holder at any time and from time to time after the date hereof up to and including the close of business one (1) business day prior to the Maturity Date into principal owing under the amended and restated credit agreement between, amongst others, the Borrower and the Holder dated August 16, 2013, as may be further amended from time to time (the "**Credit Agreement**"). If the Holder wishes to convert the Principal Balance, in whole or in part, and interest thereon into principal owing under the Credit Agreement (the "**Converted Amount**"), it shall surrender this Convertible Note to the Borrower, together with a notice of conversion of Converted Amount (the "**Credit Agreement Election**"). Upon surrender of this Convertible Note together with the Credit Agreement Election, the Holder or its nominee or assignee, as the case may be, shall be entitled to be entered in the books of the Borrower as a lender of the Converted Amount under the Credit Facility, and as soon as practicable thereafter and in any event no later than fifteen (15) business days after receipt by the Borrower of the Credit Agreement Election, the Borrower shall deliver or cause to be delivered to the Holder a replacement convertible promissory note issued pursuant to the Credit Agreement in the amount of the Converted Amount, dated the date of the Credit Agreement Election and otherwise having the same terms and conditions as convertible promissory notes issued pursuant to the Credit Agreement.

**Conversion Privileges**

6. All or any part of the Principal Balance outstanding from time to time is convertible at the election of the Holder at any time and from time to time after the date hereof up to and including the close of business one (1) business day prior to the Maturity Date into Conversion Units at the Conversion Price, subject to adjustment as provided herein. In the event of such conversion, any interest on the outstanding Principal Balance shall convert into Conversion Units at the Conversion Price, subject to adjustment as provided herein.

**Manner and Exercise of Right to Convert**

7. If the Holder wishes to convert the Principal Balance, in whole or in part, and interest thereon into Conversion Units pursuant to the terms hereof, it shall surrender this Convertible Note to the Borrower, together with the conversion notice (the "**Notice of Conversion**") in the form attached as Appendix "A" hereto duly completed and executed by the Borrower, irrevocably exercising its right to convert the Principal Balance, or such portion thereof, and interest thereon in accordance with the provisions hereof. The date the Notice of Conversion is received by the Borrower shall be the effective date of such conversion (the "**Date of Conversion**"). Upon surrender of this Convertible Note together with the Notice of Conversion, the Holder or its nominee or assignee, as the case may be, shall be entitled to be entered in the books of the Covenantor as of the Date of Conversion as the holder of the number of Conversion Units into which this Convertible Note, or portion thereof, is convertible in accordance with the terms hereof, and as soon as practicable thereafter and in any event no later than fifteen (15) business days after receipt by the Borrower of the Notice of Conversion, the Covenantor shall deliver or cause to be delivered to the Holder a copy of the certificate representing the Conversion Units (with the original certificate to remain in the minute book of the Covenantor).

8. If the Principal Balance is not converted in full by the Holder in accordance with section 7 hereof, upon surrender of this Convertible Note to the Borrower, the Borrower shall cancel same and shall, without charge, forthwith certify and deliver to the Holder a new Convertible Note in the aggregate Principal Balance equal to the unconverted part of the Principal Balance then outstanding.

9. Upon surrender of this Convertible Note for conversion in accordance with section 7, the Holder will be entitled to receive that number of Conversion Units as is equal to the sum of: (i) the quotient obtained upon dividing the Principal Balance to be converted by the Conversion Price, and (ii) the quotient obtained by dividing the interest on the Principal Balance to be converted by the Conversion Price.

10. Upon the first conversion of any portion of the Principal Balance, as a condition of conversion the Holder will be required to execute an acknowledgement to be bound by the partnership agreement governing the affairs of the Covenantor.

**Adjustments**

11. For the purposes of this Convertible Note, the Conversion Price will be adjusted proportionally for any subsequent unit distribution or split, unit combination or other similar recapitalization, reclassification or reorganization of or affecting the limited partnership units of the Covenantor. In the event of any acquisition or merger to which the Covenantor is a party other than a merger or consolidation in which the Covenantor is the continuing corporation, or in the case of any sale or conveyance to another corporation of the property of the Borrower or Covenantor as an entirety or substantially as an entirety, or in the case of any statutory exchange of securities with another corporation (including any exchange effected in connection with a merger of a third corporation into the Covenantor), then the Holder will have the right to convert the outstanding Principal Balance into Conversion Units at the Conversion Price immediately prior to such acquisition, merger, sale or conveyance. The provisions of this section will similarly apply to successive consolidations, mergers, statutory exchanges, sales or conveyances, provided that, notwithstanding any other provision hereof, no adjustment of the Conversion Price will be required unless such adjustment would require an increase or decrease of at least one percent (1%) in the Conversion Price then in effect.

**No Requirement to Issue Fractional Units**

12. The Covenantor shall not issue fractional Conversion Units upon the conversion of this Convertible Note. If any fractional interest in a Conversion Unit would be deliverable upon the conversion of any Principal Balance pursuant to the terms hereof, any such fractional interest will be rounded down to the nearest whole number of Conversion Units.

**Legended Unit Certificates**

13. The certificates representing the Conversion Shares shall contain the legend required by the limited partnership agreement governing the affairs of the Covenantor. In addition and notwithstanding anything herein contained to the contrary, the Conversion Units issuable upon conversion of this Convertible Note will only be issued in compliance with the securities laws of any applicable jurisdiction, and the certificates representing the Conversion Units thereby issued may bear such legend(s) as may, in the opinion of counsel to the Covenantor, acting reasonably, be necessary in order to avoid a violation of any applicable Canadian securities laws, any applicable United States securities laws or to comply with the requirements of any stock exchange on which the Conversion Units may be listed.

**Restrictions on Transfer**

14. This Convertible Note shall not be transferred or assigned without the Borrower's prior written consent, except such consent shall not be required if either the Borrower or the Covenantor are in default of either of their respective obligations under this Convertible Note.

**No Voting Rights**

15. The Convertible Note shall not entitle the Holder to any of the rights of a limited partner of the Covenantor, including without limitation, the right to vote, to receive distributions, or to receive any notice of, or to attend meetings of limited partners or any other proceedings of the Covenantor.

**Application of Payments**

16. Any amount paid in satisfaction of the indebtedness evidenced by this Convertible Note shall be applied first in satisfaction of any accrued and unpaid interest which is due and payable, with the remaining portion of such amount applied in satisfaction of the Principal Balance owing, with any remaining amount applied in satisfaction of any accrued but unpaid interest which is not yet due and payable as at the date on which such amount is paid.

**Judgment Interest**

17. If the Holder obtains judgment on this Convertible Note or in respect of any amount owing hereunder, interest at the aforesaid rate, calculated monthly, not in advance, shall be payable on the amount which is outstanding under the said judgment from time to time.

**Currency**

18. All amounts payable under this Convertible Note shall be payable in the currency in which the advance of the Principal Balance was made, as noted on the face page of this Convertible Note. Notwithstanding the foregoing, the Conversion Price is payable in the lawful currency of Canada. Any Principal Balance held in a currency other than Canadian currency and interest payable thereon which is converted to Conversion Units pursuant to this Convertible Note will be converted to Canadian dollars at the noon exchange rate posted by the Bank of Canada in effect on the last business day prior to the conversion to the Conversion Units.

**Non Waiver**

19. The extension of the time for making any payment which is due and payable hereunder at any time or times or the failure, delay or omission on the part of the Holder to exercise or enforce any rights or remedies of the Holder hereunder or under any instrument securing payment of the indebtedness evidenced by this Convertible Note shall not constitute a waiver of the right of the Holder to enforce such rights and remedies thereafter.

**Notices and Demands**

20. All notices and demands provided for herein shall be in writing and shall be given by prepaid first-class mail, by facsimile or other means of electronic communication or by delivery as hereafter provided. Notices and other communications shall be addressed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if to the Borrower or Covenantor, at 2114 Columbia Avenue, Rossland, B.C., V0G 1Y0, Attn: Howard Katkov; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if to the Holder, at 314 Loma Larga Drive, Solana Beach, CA, 92075;

or as each party may otherwise notify the other parties in writing. Any such notice or other communication, if mailed by prepaid first-class mail at any time other than during a general discontinuance of postal service due to strike, lock-out or otherwise, shall be deemed to have been received on the fourth business day after the post-marked date thereof, or if sent by facsimile or other means of electronic communication, shall be deemed to have been received on the day it was sent (provided that if it was sent on a day which is not a business day, then it shall be deemed delivered on the business day following the sending), or if delivered by hand shall be deemed to have been received at the time it is delivered to the applicable address if such date is a business day and such delivery was made before 4:00 p.m. (Rossland time) and otherwise on the next business day. Notice of change of address shall also be governed by this Section. In the event of a general discontinuance of postal service due to strike, lock-out or otherwise, notices or other communications shall be delivered by hand or sent by facsimile or other means of electronic communication and shall be deemed to have been received in accordance with this Section.

**Amendments**

21. No amendment, modification or waiver of any provision of this Convertible Note or consent to any departure by the Borrower or Covenantor from any provision of this Convertible Note is in any event effective unless it is in writing and signed by the Holder and then the amendment, modification, waiver or consent is effective only in the specific instance and for the specific purpose for which it is given.

**Applicable Law**

22. This Convertible Note shall be construed and enforced in accordance with, and the rights of the parties hereto shall be governed by, the laws of the Province of British Columbia and the laws of Canada applicable therein.

**Time of the Essence**

23. Time shall in all respects be of the essence of this Convertible Note.

**Waiver of Benefits**

24. The Borrower hereby waives the benefits of demand and presentment for payment, notice of non-payment, protest and notice of protest of this Convertible Note.

**Compliance with Directions,** **etc.**

25. The Holder may at any time direct the Borrower to make any payment which is due and payable hereunder or to become due and payable hereunder to any person and the Borrower shall comply with such direction. The Borrower shall, upon the written demand of the Holder, confirm to any third party specified by the Holder that such direction has been received and that no prepayments have been made hereunder and that the Borrower has not been directed to make payments hereunder to any other person.

**Further Assurances**

26. The Borrower, Covenantor and Holder will use all reasonable efforts to give full effect to this Convertible Note and will execute and deliver all such further documents and instruments and do all such further acts and things as the other party reasonably requests to evidence, carry out and give full effect to the terms, conditions, intent and meaning set out herein.

IN WITNESS WHEREOF the Borrower and the Covenantor have executed this Convertible Note on the date first above written.

**RMR ACQUISITION CORP.**

**(Borrower)**

---

| | |
|:---|:---|
| Per: | /s/ Howard Katkov |
|  | Howard Katkov |
|  | Chief Executive Officer |
|  | I have authority to bind the Borrower |

---

**RED MOUNTAIN VENTURES LIMITED PARTNERSHIP,** by its general partner, **Red Mountain Ventures G.P. Ltd.**<br> **(Covenantor)**

---

| | |
|:---|:---|
| Per: | /s/ Howard Katkov |
|  | Howard Katkov |
|  | Chief Executive Officer |
|  | I have authority to bind the Covenantor |

---

**APPENDIX A TO**

**CONVERTIBLE NOTE**

**FROM RMR ACQUISITION CORP. AND**

**RED MOUNTAIN VENTURES LIMITED PARTNERSHIP**

**NOTICE OF CONVERSION**

---

| | |
|:---|:---|
| **To:** | RMR Acquisition Corp. (the "Borrower") |
| **And To:** | Red Mountain Ventures Limited Partnership (the "Covenantor") |

---

The undersigned is the registered holder (the "Holder") of the Convertible Note(s) evidenced by the certificate(s) attached to this Notice and hereby gives notice of conversion of $<u> </u> principal amount of the Convertible Note(s) in exchange for Class C Units of the Covenantor (the "Conversion Units") at a conversion price of CDN $8.86 per Conversion Unit. Any principal amount held in a currency other than Canadian currency and interest payable thereon which is converted to Conversion Units pursuant to this Notice of Conversion will be converted to Canadian dollars at the noon exchange rate posted by the Bank of Canada in effect on the last business day prior to the conversion to the Conversion Units.

The undersigned irrevocably directs that the Conversion Units be issued and delivered as follows:

---

| | | |
|:---|:---|:---|
| <br>**Name(s) in Full** | <br>**Address(es)**<br>**(Include Postal Codes)** | **Allocation of**<br>**Conversion Units**<br>**(expressed as a**<br>**percentage)** |
|  |  | % |
|  |  | % |
|  |  | % |
|  | **Total** | 100% |

---

(Please print the full name in which the certificate(s) representing the Conversion Units is/are to be issued. If any certificates are to be issued to a person or persons other than the Holder, the Holder must pay to the Covenantor all eligible transfer taxes or other government charges).

Dated this<u> </u> day of<u> </u>,<u> </u>

---

| | |
|:---|:---|
| *Signature of Witness* | *Signature of Holder* |
| *Name of Witness* | *Name of Holder* |

---

**CONVERTIBLE PROMISSORY NOTE**

---

| | |
|:---|:---|
| CAD**$250,000** | August 31, 2015 |

---

**FOR VALUE RECEIVED, the undersigned, RMR ACQUISITION CORP.** (the "**Borrower**") hereby promises to pay to or to the order of **Jeff Busby, in trust for the Juice Trust dtd 1/24/96 Trust 3** (the "**Holder**"), on or before April 18, 2019 (the "**Maturity Date**"), the principal amount of **$250,000** Canadian dollars (the "**Principal Balance**"), together with interest as hereinafter provided for.

Set out below is a statement of the rights of the Holder and the conditions to which this convertible promissory note (the "**Convertible Note**") is subject and to which the Holder, by the acceptance of this Convertible Note, agrees.

**Interest**

1. The Principal Balance, both before and after maturity, default or judgment and overdue interest both before and after default or judgment, shall bear interest from and including the issue date of this Convertible Note, at the rate of 8.0% per annum, calculated daily and compounded annually and payable on the Maturity Date, not in advance.

**Payment of Principal Balance and Interest**

2. Unless previously prepaid or converted in accordance with the terms hereof, the full amount of the Principal Balance together with all accrued and unpaid interest is due and payable on the Maturity Date and will be paid by sending a cheque by prepaid ordinary mail or by delivering other transfer of funds as may be agreed by the Holder, for such Principal Balance and interest payable to the order of the Holder and addressed to it unless the Holder otherwise directs. In the event of non-receipt of any cheque or funds for the Principal Balance and interest by the Holder, the Borrower will cause to be issued to the Holder a replacement cheque or replacement transfer of funds for like amount upon being furnished with such evidence of non-receipt as it shall reasonably require and upon being indemnified to its satisfaction, acting reasonably.

**Prepayment of Principal Balance and Interest**

3. The Principal Balance together with all accrued and unpaid interest may be prepaid in full by the Borrower prior to the Maturity Date, without any bonus or penalty whatsoever, upon fifteen (15) days prior written notice being provided by the Borrower to the Holder (the "**Prepayment Notice**").

4. Upon receipt of the Prepayment Notice, the Holder will have the right to either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) accept the prepayment; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) elect to convert the outstanding Principal Balance together with all accrued and unpaid interest at a price of Cdn$8.86 (the "**Conversion Price**") per Class C Unit (the "**Conversion Units**") of Red Mountain Ventures Limited Partnership (the "**Covenantor**"), parent of the Borrower, subject to adjustment as provided herein.

In the event that the Holder wishes to convert the outstanding Principal Balance and interest thereon, then the Holder shall deliver a duly completed and executed Notice of Conversion (as defined herein) to the Borrower within fifteen (15) days following receipt by the Holder of the Prepayment Notice.

The records of the Borrower shall be updated from time to time to reflect the Principal Balance as it is decreased in accordance with the terms hereof.

**Juice Trust Credit Facility**

5. All or any part of the Principal Balance outstanding from time to time is convertible at the election of the Holder at any time and from time to time after the date hereof up to and including the close of business one (I) business day prior to the Maturity Date into principal owing under the amended and restated credit agreement between, amongst others, the Borrower and the Holder dated August 16, 2013, as may be further amended from time to time (the "**Credit Agreement**"). If the Holder wishes to convert the Principal Balance, in whole or in part, and interest thereon into principal owing under the Credit Agreement (the "**Converted Amount**"), it shall surrender this Convertible Note to the Borrower, together with a notice of conversion of Converted Amount (the "**Credit Agreement Election**"). Upon surrender of this Convertible Note together with the Credit Agreement Election, the Holder or its nominee or assignee, as the case may be, shall be entitled to be entered in the books of the Borrower as a lender of the Converted Amount under the Credit Facility, and as soon as practicable thereafter and in any event no later than fifteen (I5) business days after receipt by the Borrower of the Credit Agreement Election, the Borrower shall deliver or cause to be delivered to the Holder a replacement convertible promissory note issued pursuant to the Credit Agreement in the amount of the Converted Amount, dated the date of the Credit Agreement Election and otherwise having the same terms and conditions as convertible promissory notes issued pursuant to the Credit Agreement.

**Conversion Privileges**

6. All or any part of the Principal Balance outstanding from time to time is convertible at the election of the Holder at any time and from time to time after the date hereof up to and including the close of business one (1) business day prior to the Maturity Date into Conversion Units at the Conversion Price, subject to adjustment as provided herein. In the event of such conversion, any interest on the outstanding Principal Balance shall convert into Conversion Units at the Conversion Price, subject to adjustment as provided herein.

**Manner and Exercise of Right to Convert**

7. If the Holder wishes to convert the Principal Balance, in whole or in part, and interest thereon into Conversion Units pursuant to the terms hereof, it shall surrender this Convertible Note to the Borrower, together with the conversion notice (the "**Notice of Conversion**") in the form attached as Appendix "A" hereto duly completed and executed by the Borrower, irrevocably exercising its right to convert the Principal Balance, or such portion thereof, and interest thereon in accordance with the provisions hereof The date the Notice of Conversion is received by the Borrower shall be the effective date of such conversion (the "**Date of Conversion**"). Upon surrender of this Convertible Note together with the Notice of Conversion, the Holder or its nominee or assignee, as the case may be, shall be entitled to be entered in the books of the Covenantor as of the Date of Conversion as the holder of the number of Conversion Units into which this Convertible Note, or portion thereof, is convertible in accordance with the terms hereof, and as soon as practicable thereafter and in any event no later than fifteen (15) business days after receipt by the Borrower of the Notice of Conversion, the Covenantor shall deliver or cause to be delivered to the Holder a copy of the certificate representing the Conversion Units (with the original certificate to remain in the minute book of the Covenantor).

8. If the Principal Balance is not converted in full by the Holder in accordance with section 7 hereof, upon surrender of this Convertible Note to the Borrower, the Borrower shall cancel same and shall, without charge, forthwith certify and deliver to the Holder a new Convertible Note in the aggregate Principal Balance equal to the unconverted part of the Principal Balance then outstanding.

9. Upon surrender of this Convertible Note for conversion in accordance with section 7, the Holder will be entitled to receive that number of Conversion Units as is equal to the sum of: (i) the quotient obtained upon dividing the Principal Balance to be converted by the Conversion Price, and (ii) the quotient obtained by dividing the interest on the Principal Balance to be converted by the Conversion Price.

10. Upon the first conversion of any portion of the Principal Balance, as a condition of conversion the Holder will be required to execute an acknowledgement to be bound by the partnership agreement governing the affairs of the Covenantor.

**Adjustments**

11. For the purposes of this Convertible Note, the Conversion Price will be adjusted proportionally for any subsequent unit distribution or split, unit combination or other similar recapitalization, reclassification or reorganization of or affecting the limited partnership units of the Covenantor. In the event of any acquisition or merger to which the Covenantor is a party other than a merger or consolidation in which the Covenantor is the continuing corporation, or in the case of any sale or conveyance to another corporation of the property of the Borrower or Covenantor as an entirety or substantially as an entirety, or in the case of any statutory exchange of securities with another corporation (including any exchange effected in connection with a merger of a third corporation into the Covenantor), then the Holder will have the right to convert the outstanding Principal Balance into Conversion Units at the Conversion Price immediately prior to such acquisition, merger, sale or conveyance. The provisions of this section will similarly apply to successive consolidations, mergers, statutory exchanges, sales or conveyances, provided that, notwithstanding any other provision hereof, no adjustment of the Conversion Price will be required unless such adjustment would require an increase or decrease of at least one percent (1%) in the Conversion Price then in effect.

No **Requirement to Issue Fractional Units**

12. The Covenantor shall not issue fractional Conversion Units upon the conversion of this Convertible Note. If any fractional interest in a Conversion Unit would be deliverable upon the conversion of any Principal Balance pursuant to the terms hereof, any such fractional interest will be rounded down to the nearest whole number of Conversion Units.

**Legended Unit Certificates**

13. The certificates representing the Conversion Shares shall contain the legend required by the limited partnership agreement governing the affairs of the Covenantor. In addition and notwithstanding anything herein contained to the contrary, the Conversion Units issuable upon conversion of this Convertible Note will only be issued in compliance with the securities laws of any applicable jurisdiction, and the certificates representing the Conversion Units thereby issued may bear such legend(s) as may, in the opinion of counsel to the Covenantor, acting reasonably, be necessary in order to avoid a violation of any applicable Canadian securities laws, any applicable United States securities laws or to comply with the requirements of any stock exchange on which the Conversion Units may be listed.

**Restrictions on Transfer**

14. This Convertible Note shall not be transferred or assigned without the Borrower's prior written consent, except such consent shall not be required if either the Borrower or the Covenantor are in default of either of their respective obligations under this Convertible Note.

**No Voting Rights**

15. The Convertible Note shall not entitle the Holder to any of the rights of a limited partner of the Covenantor, including without limitation, the right to vote, to receive distributions, or to receive any notice of, or to attend meetings of limited partners or any other proceedings of the Covenantor.

**Application of Payments**

16. Any amount paid in satisfaction of the indebtedness evidenced by this Convertible Note shall be applied first in satisfaction of any accrued and unpaid interest which is due and payable, with the remaining portion of such amount applied in satisfaction of the Principal Balance owing, with any remaining amount applied in satisfaction of any accrued but unpaid interest which is not yet due and payable as at the date on which such amount is paid.

**Judgment Interest**

17. If the Holder obtains judgment on this Convertible Note or in respect of any amount owing hereunder, interest at the aforesaid rate, calculated monthly, not in advance, shall be payable on the amount which is outstanding under the said judgment from time to time.

**Currency**

18. All amounts payable under this Convertible Note shall be payable in the currency in which the advance of the Principal Balance was made, as noted on the face page of this Convertible Note. Notwithstanding the foregoing, the Conversion Price is payable in the lawful currency of Canada. Any Principal Balance held in a currency other than Canadian currency and interest payable thereon which is converted to Conversion Units pursuant to this Convertible Note will be converted to Canadian dollars at the noon exchange rate posted by the Bank of Canada in effect on the last business day prior to the conversion to the Conversion Units.

**Non Waiver**

19. The extension of the time for making any payment which is due and payable hereunder at any time or times or the failure, delay or omission on the part of the Holder to exercise or enforce any rights or remedies of the Holder hereunder or under any instrument securing payment of the indebtedness evidenced by this Convertible Note shall not constitute a waiver of the right of the Holder to enforce such rights and remedies thereafter.

**Notices and Demands**

20. All notices and demands provided for herein shall be in writing and shall be given by prepaid first-class mail, by facsimile or other means of electronic communication or by delivery as hereafter provided. Notices and other communications shall be addressed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if to the Borrower or Covenantor, at 2114 Columbia Avenue, Rossland, B.C., V0G 1Y0, Attn: Howard Katkov; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if to the Holder, at 314 Loma Larga Drive, Solana Beach, CA, 92075;

or as each party may otherwise notify the other parties in writing. Any such notice or other communication, if mailed by prepaid first-class mail at any time other than during a general discontinuance of postal service due to strike, lock-out or otherwise, shall be deemed to have been received on the fourth business day after the post-marked date thereof, or if sent by facsimile or other means of electronic communication, shall be deemed to have been received on the day it was sent (provided that if it was sent on a day which is not a business day, then it shall be deemed delivered on the business day following the sending), or if delivered by hand shall be deemed to have been received at the time it is delivered to the applicable address if such date is a business day and such delivery was made before 4:00 p.m. (Rossland time) and otherwise on the next business day. Notice of change of address shall also be governed by this Section. In the event of a general discontinuance of postal service due to strike, lock-out or otherwise, notices or other communications shall be delivered by hand or sent by facsimile or other means of electronic communication and shall be deemed to have been received in accordance with this Section.

**Amendments**

21. No amendment, modification or waiver of any provision of this Convertible Note or consent to any departure by the Borrower or Covenantor from any provision of this Convertible Note is in any event effective unless it is in writing and signed by the Holder and then the amendment, modification, waiver or consent is effective only in the specific instance and for the specific purpose for which it is given.

**Applicable Law**

22. This Convertible Note shall be construed and enforced in accordance with, and the rights of the parties hereto shall be governed by, the laws of the Province of British Columbia and the laws of Canada applicable therein.

**Time of the Essence**

23. Time shall in all respects be of the essence of this Convertible Note.

**Waiver of Benefits**

24. The Borrower hereby waives the benefits of demand and presentment for payment, notice of non-payment, protest and notice of protest of this Convertible Note.

**Compliance with Directions, etc.**

25. The Holder may at any time direct the Borrower to make any payment which is due and payable hereunder or to become due and payable hereunder to any person and the Borrower shall comply with such direction. The Borrower shall, upon the written demand of the Holder, confirm to any third party specified by the Holder that such direction has been received and that no prepayments have been made hereunder and that the Borrower has not been directed to make payments hereunder to any other person.

**Further Assurances**

26. The Borrower, Covenantor and Holder will use all reasonable efforts to give full effect to this Convertible Note and will execute and deliver all such further documents and instruments and do all such further acts and things as the other party reasonably requests to evidence, carry out and give full effect to the terms, conditions, intent and meaning set out herein.

IN WITNESS WHEREOF the Borrower and the Covenantor have executed this Convertible Note on the date first above written.

---

| | |
|:---|:---|
| **RMR ACQUISITION CORP.** | **RMR ACQUISITION CORP.** |
| **(Borrower)** | **(Borrower)** |
| Per: | /s/ Howard Katkov |
|  | Howard Katkov |
|  | Chief Executive Officer |
|  | I have authority to bind the Borrower |
| **RED MOUNTAIN VENTURES LIMITED PARTNERSHIP**, by its general partner, **Red Mountain Ventures G.P. Ltd.** | **RED MOUNTAIN VENTURES LIMITED PARTNERSHIP**, by its general partner, **Red Mountain Ventures G.P. Ltd.** |
| **(Covenantor)** | **(Covenantor)** |
| Per: | /s/ Howard Katkov |
|  | Howard Katkov |
|  | Chief Executive Officer |
|  | I have authority to bind the Covenantor |

---

**APPENDIX A TO**

**CONVERTIBLE NOTE**

**FROM RMR ACQUISITION CORP. AND**

**RED MOUNTAIN VENTURES LIMITED PARTNERSHIP**

**NOTICE OF CONVERSION**

---

| | |
|:---|:---|
| **To:** | RMR Acquisition Corp. (the "Borrower") |
| **And To:** | Red Mountain Ventures Limited Partnership (the "Covenantor") |

---

The undersigned is the registered holder (the "Holder") of the Convertible Note(s) evidenced by the certificate(s) attached to this Notice and hereby gives notice of conversion of $<u> </u> principal amount of the Convertible Note(s) in exchange for Class C Units of the Covenantor (the "Conversion Units") at a conversion price of CDN $8.86 per Conversion Unit. Any principal amount held in a currency other than Canadian currency and interest payable thereon which is converted to Conversion Units pursuant to this Notice of Conversion will be converted to Canadian dollars at the noon exchange rate posted by the Bank of Canada in effect on the last business day prior to the conversion to the Conversion Units.

The undersigned irrevocably directs that the Conversion Units be issued and delivered as follows:

---

| | | |
|:---|:---|:---|
| <br>**Name(s) in Full** | <br>**Address(es)**<br>**(Include Postal Codes)** | **Allocation of**<br>**Conversion Units**<br>**(expressed as a**<br>**percentage)** |
|  |  | % |
|  |  | % |
|  |  | % |
|  | **Total** | 100% |

---

(Please print the full name in which the certificate(s) representing the Conversion Units is/are to be issued. If any certificates are to be issued to a person or persons other than the Holder, the Holder must pay to the Covenantor all eligible transfer taxes or other government charges).

Dated this<u> </u> day of<u> </u>,<u> </u>

---

| | |
|:---|:---|
| *Signature of Witness* | *Signature of Holder* |
| *Name of Witness* | *Name of Holder* |

---

**CONVERTIBLE PROMISSORY NOTE**

---

| | |
|:---|:---|
| CAD**$250,000** | October 7, 2015 |

---

**FOR VALUE RECEIVED**, the undersigned, **RMR ACQUISITION CORP**. (the "**Borrower**") hereby promises to pay to or to the order of **Jeff Busby, in trust for the Juice Trust dtd 1/24/96 Trust 3** (the "**Holder**"), on or before April 18, 2019 (the "**Maturity Date**"), the principal amount of **$250,000** Canadian dollars (the "**Principal Balance**"), together with interest as hereinafter provided for.

Set out below is a statement of the rights of the Holder and the conditions to which this convertible promissory note (the "**Convertible Note**") is subject and to which the Holder., by the acceptance of this Convertible Note, agrees.

**Interest**

1. The Principal Balance, both before and after maturity, default or judgment and overdue interest both before and after default or judgment, shall bear interest from and including the issue date of this Convertible Note, at the rate of 8.0% per annum, calculated daily and compounded annually and payable on the Maturity Date, not in advance.

**Payment of Principal Balance and Interest**

2. Unless previously prepaid or converted in accordance with the terms hereof, the full amount of the Principal Balance together with all accrued and unpaid interest is due and payable on the Maturity Date and will be paid by sending a cheque by prepaid ordinary mail or by delivering other transfer of funds as may be agreed by the Holder, for such Principal Balance and interest payable to the order of the Holder and addressed to it unless the Holder otherwise directs. In the event of non-receipt of any cheque or funds for the Principal Balance and interest by the Holder, the Borrower will cause to be issued to the Holder a replacement cheque or replacement transfer of funds for like amount upon being furnished with such evidence of non-receipt as it shall reasonably require and upon being indemnified to its satisfaction, acting reasonably.

**Prepayment of Principal Balance and Interest**

3. The Principal Balance together with all accrued and unpaid interest may be prepaid in full by the Borrower prior to the Maturity Date, without any bonus or penalty whatsoever, upon fifteen (15) days prior written notice being provided by the Borrower to the Holder (the "**Prepayment Notice**").

4. Upon receipt of the Prepayment Notice, the Holder will have the right to either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) accept the prepayment; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) elect to convert the outstanding Principal Balance together with all accrued and unpaid interest at a price of Cdn$8.86 (the "**Conversion Price**") per Class C Unit (the "**Conversion Units**") of Red Mountain Ventures Limited Partnership (the "**Covenantor**"), parent of the Borrower, subject to adjustment as provided herein.

In the event that the Holder wishes to convert the outstanding Principal Balance and interest thereon, then the Holder shall deliver a duly completed and executed Notice of Conversion (as defined herein) to the Borrower within fifteen (15) days following receipt by the Holder of the Prepayment Notice.

The records of the Borrower shall be updated from time to time to reflect the Principal Balance as it is decreased in accordance with the terms hereof.

**Juice Trust Credit Facility**

5. All or any part of the Principal Balance outstanding from time to time is convertible at the election of the Holder at any time and from time to time after the date hereof up to and including the close of business one (1) business day prior to the Maturity Date into principal owing under the amended and restated credit agreement between, amongst others, the Borrower and the Holder dated August 16, 2013, as may be further amended from time to time (the "**Credit Agreement**"). If the Holder wishes to convert the Principal Balance, in whole or in part, and interest thereon into principal owing under the Credit Agreement (the "**Converted Amount**"), it shall surrender this Convertible Note to the Borrower, together with a notice of conversion of Converted Amount (the "**Credit Agreement Election**"). Upon surrender of this Convertible Note together with the Credit Agreement Election, the Holder or its nominee or assignee, as the case may be, shall be entitled to be entered in the books of the Borrower as a lender of the Converted Amount under the Credit Facility, and as soon as practicable thereafter and in any event no later than fifteen (15) business days after receipt by the Borrower of the Credit Agreement Election, the Borrower shall deliver or cause to be delivered to the Holder a replacement convertible promissory note issued pursuant to the Credit Agreement in the amount of the Converted Amount, dated the date of the Credit Agreement Election and otherwise having the same terms and conditions as convertible promissory notes issued pursuant to the Credit Agreement.

**Conversion Privileges**

6. All or any part of the Principal Balance outstanding from time to time is convertible at the election of the Holder at any time and from time to time after the date hereof up to and including the close of business one (1) business day prior to the Maturity Date into Conversion Units at the Conversion Price, subject to adjustment as provided herein. In the event of such conversion, any interest on the outstanding Principal Balance shall convert into Conversion Units at the Conversion Price, subject to adjustment as provided herein.

**Manner and Exercise of Right to Convert**

7. If the Holder wishes to convert the Principal Balance, in whole or in part, and interest thereon into Conversion Units pursuant to the terms hereof, it shall surrender this Convertible Note to the Borrower, together with the conversion notice (the "**Notice of Conversion**") in the form attached as Appendix "A" hereto duly completed and executed by the Borrower, irrevocably exercising its right to convert the Principal Balance, or such portion thereof, and interest thereon in accordance with the provisions hereof. The date the Notice of Conversion is received by the Borrower shall be the effective date of such conversion (the "**Date of Conversion**"). Upon surrender of this Convertible Note together with the Notice of Conversion, the Holder or its nominee or assignee, as the case may be, shall be entitled to be entered in the books of the Covenantor as of the Date of Conversion as the holder of the number of Conversion Units into which this Convertible Note, or portion thereof, is convertible in accordance with the terms hereof, and as soon as practicable thereafter and in any event no later than fifteen (15) business days after receipt by the Borrower of the Notice of Conversion, the Covenantor shall deliver or cause to be delivered to the Holder a copy of the certificate representing the Conversion Units (with the original certificate to remain in the minute book of the Covenantor).

8. If the Principal Balance is not converted in full by the Holder in accordance with section 7 hereof, upon surrender of this Convertible Note to the Borrower, the Borrower shall cancel same and shall, without charge, forthwith certify and deliver to the Holder a new Convertible Note in the aggregate Principal Balance equal to the unconverted part of the Principal Balance then outstanding.

9. Upon surrender of this Convertible Note for conversion in accordance with section 7, the Holder will be entitled to receive that number of Conversion Units as is equal to the sum of: (i) the quotient obtained upon dividing the Principal Balance to be converted by the Conversion Price, and (ii) the quotient obtained by dividing the interest on the Principal Balance to be converted by the Conversion Price.

10. Upon the first conversion of any portion of the Principal Balance, as a condition of conversion the Holder will be required to execute an acknowledgement to be bound by the partnership agreement governing the affairs of the Covenantor.

**Adjustments**

11. For the purposes of this Convertible Note, the Conversion Price will be adjusted proportionally for any subsequent unit distribution or split, unit combination or other similar recapitalization, reclassification or reorganization of or affecting the limited partnership units of the Covenantor. In the event of any acquisition or merger to which the Covenantor is a party other than a merger or consolidation in which the Covenantor is the continuing corporation, or in the case of any sale or conveyance to another corporation of the property of the Borrower or Covenantor as an entirety or substantially as an entirety, or in the case of any statutory exchange of securities with another corporation (including any exchange effected in connection with a merger of a third corporation into the Covenantor), then the Holder will have the right to convert the outstanding Principal Balance into Conversion Units at the Conversion Price immediately prior to such acquisition, merger, sale or conveyance. The provisions of this section will similarly apply to successive consolidations, mergers, statutory exchanges, sales or conveyances, provided that, notwithstanding any other provision hereof, no adjustment of the Conversion Price will be required unless such adjustment would require an increase or decrease of at least one percent (1%) in the Conversion Price then in effect.

**No Requirement to Issue Fractional Units**

12. The Covenantor shall not issue fractional Conversion Units upon the conversion of this Convertible Note. If any fractional interest in a Conversion Unit would be deliverable upon the conversion of any Principal Balance pursuant to the terms hereof, any such fractional interest will be rounded down to the nearest whole number of Conversion Units.

**Legended Unit Certificates**

13. The certificates representing the Conversion Shares shall contain the legend required by the limited partnership agreement governing the affairs of the Covenantor. In addition and notwithstanding anything herein contained to the contrary, the Conversion Units issuable upon conversion of this Convertible Note will only be issued in compliance with the securities laws of any applicable jurisdiction, and the certificates representing the Conversion Units thereby issued may bear such legend(s) as may, in the opinion of counsel to the Covenantor, acting reasonably, be necessary in order to avoid a violation of any applicable Canadian securities laws, any applicable United States securities laws or to comply with the requirements of any stock exchange on which the Conversion Units may be listed.

**Restrictions on Transfer**

14. This Convertible Note shall not be transferred or assigned without the Borrower's prior written consent, except such consent shall not be required if either the Borrower or the Covenantor are in default of either of their respective obligations under this Convertible Note.

**No Voting Rights**

15. The Convertible Note shall not entitle the Holder to any of the rights of a limited partner of the Covenantor, including without limitation, the right to vote, to receive distributions, or to receive any notice of, or to attend meetings of limited partners or any other proceedings of the Covenantor.

**Application of Payments**

16. Any amount paid in satisfaction of the indebtedness evidenced by this Convertible Note shall be applied first in satisfaction of any accrued and unpaid interest which is due and payable, with the remaining portion of such amount applied in satisfaction of the Principal Balance owing, with any remaining amount applied in satisfaction of any accrued but unpaid interest which is not yet due and payable as at the date on which such amount is paid.

**Judgment Interest**

17. If the Holder obtains judgment on this Convertible Note or in respect of any amount owing hereunder, interest at the aforesaid rate, calculated monthly, not in advance, shall be payable on the amount which is outstanding under the said judgment from time to time.

**Currency**

18. All amounts payable under this Convertible Note shall be payable in the currency in which the advance of the Principal Balance was made, as noted on the face page of this Convertible Note. Notwithstanding the foregoing, the Conversion Price is payable in the lawful currency of Canada. Any Principal Balance held in a currency other than Canadian currency and interest payable thereon which is converted to Conversion Units pursuant to this Convertible Note will be converted to Canadian dollars at the noon exchange rate posted by the Bank of Canada in effect on the last business day prior to the conversion to the Conversion Units.

**Non Waiver**

19. The extension of the time for making any payment which is due and payable hereunder at any time or times or the failure, delay or omission on the part of the Holder to exercise or enforce any rights or remedies of the Holder hereunder or under any instrument securing payment of the indebtedness evidenced by this Convertible Note shall not constitute a waiver of the right of the Holder to enforce such rights and remedies thereafter.

**Notices and Demands**

20. All notices and demands provided for herein shall be in writing and shall be given by prepaid first-class mail, by facsimile or other means of electronic communication or by delivery as hereafter provided. Notices and other communications shall be addressed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if to the Borrower or Covenantor, at 2114 Columbia Avenue, Rossland, B.C., V0G 1Y0, Attn: Howard Katkov; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if to the Holder, at 314 Loma Larga Drive, Solana Beach, CA, 92075;

or as each party may otherwise notify the other parties in writing. Any such notice or other communication, if mailed by prepaid first-class mail at any time other than during a general discontinuance of postal service due to strike, lock-out or otherwise, shall be deemed to have been received on the fourth business day after the post-marked date thereof, or if sent by facsimile or other means of electronic communication, shall be deemed to have been received on the day it was sent (provided that if it was sent on a day which is not a business day, then it shall be deemed delivered on the business day following the sending), or if delivered by hand shall be deemed to have been received at the time it is delivered to the applicable address if such date is a business day and such delivery was made before 4:00 p.m. (Rossland time) and otherwise on the next business day. Notice of change of address shall also be governed by this Section. In the event of a general discontinuance of postal service due to strike, lock-out or otherwise, notices or other communications shall be delivered by hand or sent by facsimile or other means of electronic communication and shall be deemed to have been received in accordance with this Section.

**Amendments**

21. No amendment, modification or waiver of any provision of this Convertible Note or consent to any departure by the Borrower or Covenantor from any provision of this Convertible Note is in any event effective unless it is in writing and signed by the Holder and then the amendment, modification, waiver or consent is effective only in the specific instance and for the specific purpose for which it is given.

**Applicable Law**

22. This Convertible Note shall be construed and enforced in accordance with, and the rights of the parties hereto shall be governed by, the laws of the Province of British Columbia and the laws of Canada applicable therein.

**Time of the Essence**

23. Time shall in all respects be of the essence of this Convertible Note.

**Waiver of Benefits**

24. The Borrower hereby waives the benefits of demand and presentment for payment, notice of non-payment, protest and notice of protest of this Convertible Note.

**Compliance with Directions, etc.**

25. The Holder may at any time direct the Borrower to make any payment which is due and payable hereunder or to become due and payable hereunder to any person and the Borrower shall comply with such direction. The Borrower shall, upon the written demand of the Holder, confirm to any third party specified by the Holder that such direction has been received and that no prepayments have been made hereunder and that the Borrower has not been directed to make payments hereunder to any other person.

**Further Assurances**

26. The Borrower, Covenantor and Holder will use all reasonable efforts to give full effect to this Convertible Note and will execute and deliver all such further documents and instruments and do all such further acts and things as the other party reasonably requests to evidence, carry out and give full effect to the terms, conditions, intent and meaning set out herein.

IN WITNESS WHEREOF the Borrower and the Covenantor have executed this Convertible Note on the date first above written.

---

| | |
|:---|:---|
| **RMR ACQUISITION CORP.** | **RMR ACQUISITION CORP.** |
| **(Borrower)** | **(Borrower)** |
| Per: | /s/ Howard Katkov |
|  | Howard Katkov |
|  | Chief Executive Officer |
|  | I have authority to bind the Borrower |
| **RED MOUNTAIN VENTURES LIMITED** **PARTNERSHIP,** by its general partner, **Red** **Mountain Ventures G.P. Ltd.** | **RED MOUNTAIN VENTURES LIMITED** **PARTNERSHIP,** by its general partner, **Red** **Mountain Ventures G.P. Ltd.** |
| **(Covenantor)** | **(Covenantor)** |
| Per: | /s/ Howard Katkov |
|  | Howard Katkov |
|  | Chief Executive Officer |
|  | I have authority to bind the Covenantor |

---

**APPENDIX A TO**

**CONVERTIBLE NOTE**

**FROM RMR ACQUISITION CORP. AND**

**RED MOUNTAIN VENTURES LIMITED PARTNERSHIP**

**NOTICE OF CONVERSION**

---

| | |
|:---|:---|
| **To:** | RMR Acquisition Corp. (the "Borrower") |
| **And To:** | Red Mountain Ventures Limited Partnership (the "Covenantor") |

---

The undersigned is the registered holder (the "Holder") of the Convertible Note(s) evidenced by the certificate(s) attached to this Notice and hereby gives notice of conversion of $<u> </u> principal amount of the Convertible Note(s) in exchange for Class C Units of the Covenantor (the "Conversion Units") at a conversion price of CDN $8.86 per Conversion Unit. Any principal amount held in a currency other than Canadian currency and interest payable thereon which is converted to Conversion Units pursuant to this Notice of Conversion will be converted to Canadian dollars at the noon exchange rate posted by the Bank of Canada in effect on the last business day prior to the conversion to the Conversion Units.

The undersigned irrevocably directs that the Conversion Units be issued and delivered as follows:

---

| | | |
|:---|:---|:---|
| <br>**Name(s) in Full** | <br>**Address(es)**<br>**(Include Postal Codes)** | **Allocation of**<br>**Conversion Units**<br>**(expressed as a**<br>**percentage)** |
|  |  | % |
|  |  | % |
|  |  | % |
|  | **Total** | 100% |

---

(Please print the full name in which the certificate(s) representing the Conversion Units is/are to be issued. If any certificates are to be issued to a person or persons other than the Holder, the Holder must pay to the Covenantor all eligible transfer taxes or other government charges).

Dated this<u> </u> day of<u> </u>,<u> </u>

---

| | |
|:---|:---|
| *Signature of Witness* | *Signature of Holder* |
| *Name of Witness* | *Name of Holder* |

---

**CONVERTIBLE PROMISSORY NOTE**

---

| | |
|:---|:---|
| CAD**$150,000** | October 30, 2015 |

---

**FOR VALUE RECEIVED**, the undersigned, **RMR ACQUISITION CORP**. (the "**Borrower**") hereby promises to pay to or to the order of **Jeff Busby, in trust for the Juice Trust dtd 1/24/96 Trust 3** (the "**Holder**"), on or before April 18, 2019 (the "**Maturity Date**"), the principal amount of **$150,000** Canadian dollars (the "**Principal Balance**"), together with interest as hereinafter provided for.

Set out below is a statement of the rights of the Holder and the conditions to which this convertible promissory note (the "**Convertible Note**") is subject and to which the Holder, by the acceptance of this Convertible Note, agrees.

**Interest**

1. The Principal Balance, both before and after maturity, default or judgment and overdue interest both before and after default or judgment, shall bear interest from and including the issue date of this Convertible Note, at the rate of 8.0% per annum, calculated daily and compounded annually and payable on the Maturity Date, not in advance.

**Payment of Principal Balance and Interest**

2. Unless previously prepaid or converted in accordance with the terms hereof, the full amount of the Principal Balance together with all accrued and unpaid interest is due and payable on the Maturity Date and will be paid by sending a cheque by prepaid ordinary mail or by delivering other transfer of funds as may be agreed by the Holder, for such Principal Balance and interest payable to the order of the Holder and addressed to it unless the Holder otherwise directs. In the event of non-receipt of any cheque or funds for the Principal Balance and interest by the Holder, the Borrower will cause to be issued to the Holder a replacement cheque or replacement transfer of funds for like amount upon being furnished with such evidence of non-receipt as it shall reasonably require and upon being indemnified to its satisfaction, acting reasonably.

**Prepayment of Principal Balance and Interest**

3. The Principal Balance together with all accrued and unpaid interest may be prepaid in full by the Borrower prior to the Maturity Date, without any bonus or penalty whatsoever, upon fifteen (15) days prior written notice being provided by the Borrower to the Holder (the "**Prepayment Notice**").

4. Upon receipt of the Prepayment Notice, the Holder will have the right to either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) accept the prepayment; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) elect to convert the outstanding Principal Balance together with all accrued and unpaid interest at a price of Cdn$8.86 (the "**Conversion Price**") per Class C Unit (the "**Conversion Units**") of Red Mountain Ventures Limited Partnership (the "**Covenantor**"), parent of the Borrower, subject to adjustment as provided herein.

In the event that the Holder wishes to convert the outstanding Principal Balance and interest thereon, then the Holder shall deliver a duly completed and executed Notice of Conversion (as defined herein) to the Borrower within fifteen (15) days following receipt by the Holder of the Prepayment Notice.

The records of the Borrower shall be updated from time to time to reflect the Principal Balance as it is decreased in accordance with the terms hereof.

**Juice Trust Credit Facility**

5. All or any part of the Principal Balance outstanding from time to time is convertible at the election of the Holder at any time and from time to time after the date hereof up to and including the close of business one (I) business day prior to the Maturity Date into principal owing under the amended and restated credit agreement between, amongst others, the Borrower and the Holder dated August 16, 2013, as may be further amended from time to time (the "**Credit Agreement**"). If the Holder wishes to convert the Principal Balance, in whole or in part, and interest thereon into principal owing under the Credit Agreement (the "**Converted Amount**"), it shall surrender this Convertible Note to the Borrower, together with a notice of conversion of Converted Amount (the "**Credit Agreement Election**"). Upon surrender of this Convertible Note together with the Credit Agreement Election, the Holder or its nominee or assignee, as the case may be, shall be entitled to be entered in the books of the Borrower as a lender of the Converted Amount under the Credit Facility, and as soon as practicable thereafter and in any event no later than fifteen (15) business days after receipt by the Borrower of the Credit Agreement Election, the Borrower shall deliver or cause to be delivered to the Holder a replacement convertible promissory note issued pursuant to the Credit Agreement in the amount of the Converted Amount, dated the date of the Credit Agreement Election and otherwise having the same terms and conditions as convertible promissory notes issued pursuant to the Credit Agreement.

**Conversion Privileges**

6. All or any part of the Principal Balance outstanding from time to time is convertible at the election of the Holder at any time and from time to time after the date hereof up to and including the close of business one (I) business day prior to the Maturity Date into Conversion Units at the Conversion Price, subject to adjustment as provided herein. In the event of such conversion, any interest on the outstanding Principal Balance shall convert into Conversion Units at the Conversion Price, subject to adjustment as provided herein.

**Manner and Exercise of Right to Convert**

7. If the Holder wishes to convert the Principal Balance, in whole or in part, and interest thereon into Conversion Units pursuant to the terms hereof, it shall surrender this Convertible Note to the Borrower, together with the conversion notice (the "**Notice of Conversion**") in the form attached as Appendix "A" hereto duly completed and executed by the Borrower, irrevocably exercising its right to convert the Principal Balance, or such portion thereof, and interest thereon in accordance with the provisions hereof. The date the Notice of Conversion is received by the Borrower shall be the effective date of such conversion (the "**Date of Conversion**"). Upon surrender of this Convertible Note together with the Notice of Conversion, the Holder or its nominee or assignee, as the case may be, shall be entitled to be entered in the books of the Covenantor as of the Date of Conversion as the holder of the number of Conversion Units into which this Convertible Note, or portion thereof, is convertible in accordance with the terms hereof, and as soon as practicable thereafter and in any event no later than fifteen (15) business days after receipt by the Borrower of the Notice of Conversion, the Covenantor shall deliver or cause to be delivered to the Holder a copy of the certificate representing the Conversion Units (with the original certificate to remain in the minute book of the Covenantor).

8. If the Principal Balance is not converted in full by the Holder in accordance with section 7 hereof, upon surrender of this Convertible Note to the Borrower, the Borrower shall cancel same and shall, without charge, forthwith certify and deliver to the Holder a new Convertible Note in the aggregate Principal Balance equal to the unconverted part of the Principal Balance then outstanding.

9. Upon surrender of this Convertible Note for conversion in accordance with section 7, the Holder will be entitled to receive that number of Conversion Units as is equal to the sum of: (i) the quotient obtained upon dividing the Principal Balance to be converted by the Conversion Price, and (ii) the quotient obtained by dividing the interest on the Principal Balance to be converted by the Conversion Price.

10. Upon the first conversion of any portion of the Principal Balance, as a condition of conversion the Holder will be required to execute an acknowledgement to be bound by the partnership agreement governing the affairs of the Covenantor.

**Adjustments**

11. For the purposes of this Convertible Note, the Conversion Price will be adjusted proportionally for any subsequent unit distribution or split, unit combination or other similar recapitalization, reclassification or reorganization of or affecting the limited partnership units of the Covenantor. In the event of any acquisition or merger to which the Covenantor is a party other than a merger or consolidation in which the Covenantor is the continuing corporation, or in the case of any sale or conveyance to another corporation of the property of the Borrower or Covenantor as an entirety or substantially as an entirety, or in the case of any statutory exchange of securities with another corporation (including any exchange effected in connection with a merger of a third corporation into the Covenantor), then the Holder will have the right to convert the outstanding Principal Balance into Conversion Units at the Conversion Price immediately prior to such acquisition, merger, sale or conveyance. The provisions of this section will similarly apply to successive consolidations, mergers, statutory exchanges, sales or conveyances, provided that, notwithstanding any other provision hereof, no adjustment of the Conversion Price will be required unless such adjustment would require an increase or decrease of at least one percent (I%) in the Conversion Price then in effect.

**No Requirement to Issue Fractional Units**

12. The Covenantor shall not issue fractional Conversion Units upon the conversion of this Convertible Note. If any fractional interest in a Conversion Unit would be deliverable upon the conversion of any Principal Balance pursuant to the terms hereof, any such fractional interest will be rounded down to the nearest whole number of Conversion Units.

**Legended Unit Certificates**

13. The certificates representing the Conversion Shares shall contain the legend required by the limited partnership agreement governing the affairs of the Covenantor. In addition and notwithstanding anything herein contained to the contrary, the Conversion Units issuable upon conversion of this Convertible Note will only be issued in compliance with the securities laws of any applicable jurisdiction, and the certificates representing the Conversion Units thereby issued may bear such legend(s) as may, in the opinion of counsel to the Covenantor, acting reasonably, be necessary in order to avoid a violation of any applicable Canadian securities laws, any applicable United States securities laws or to comply with the requirements of any stock exchange on which the Conversion Units may be listed.

**Restrictions on Transfer**

14. This Convertible Note shall not be transferred or assigned without the Borrower's prior written consent, except such consent shall not be required if either the Borrower or the Covenantor are in default of either of their respective obligations under this Convertible Note.

**No Voting Rights**

15. The Convertible Note shall not entitle the Holder to any of the rights of a limited partner of the Covenantor, including without limitation, the right to vote, to receive distributions, or to receive any notice of, or to attend meetings of limited partners or any other proceedings of the Covenantor.

**Application of Payments**

16. Any amount paid in satisfaction of the indebtedness evidenced by this Convertible Note shall be applied first in satisfaction of any accrued and unpaid interest which is due and payable, with the remaining portion of such amount applied in satisfaction of the Principal Balance owing, with any remaining amount applied in satisfaction of any accrued but unpaid interest which is not yet due and payable as at the date on which such amount is paid.

**Judgment Interest**

17. If the Holder obtains judgment on this Convertible Note or in respect of any amount owing hereunder, interest at the aforesaid rate, calculated monthly, not in advance, shall be payable on the amount which is outstanding under the said judgment from time to time.

**Currency**

18. All amounts payable under this Convertible Note shall be payable in the currency in which the advance of the Principal Balance was made, as noted on the face page of this Convertible Note. Notwithstanding the foregoing, the Conversion Price is payable in the lawful currency of Canada. Any Principal Balance held in a currency other than Canadian currency and interest payable thereon which is converted to Conversion Units pursuant to this Convertible Note will be converted to Canadian dollars at the noon exchange rate posted by the Bank of Canada in effect on the last business day prior to the conversion to the Conversion Units.

**Non Waiver**

19. The extension of the time for making any payment which is due and payable hereunder at any time or times or the failure, delay or omission on the part of the Holder to exercise or enforce any rights or remedies of the Holder hereunder or under any instrument securing payment of the indebtedness evidenced by this Convertible Note shall not constitute a waiver of the right of the Holder to enforce such rights and remedies thereafter.

**Notices and Demands**

20. All notices and demands provided for herein shall be in writing and shall be given by prepaid first-class mail, by facsimile or other means of electronic communication or by delivery as hereafter provided. Notices and other communications shall be addressed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if to the Borrower or Covenantor, at 2114 Columbia Avenue, Rossland, B.C., V0G 1Y0, Attn: Howard Katkov; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if to the Holder, at 314 Loma Larga Drive, Solana Beach, CA, 92075;

or as each party may otherwise notify the other parties in writing. Any such notice or other communication, if mailed by prepaid first-class mail at any time other than during a general discontinuance of postal service due to strike, lock-out or otherwise, shall be deemed to have been received on the fourth business day after the post-marked date thereof, or if sent by facsimile or other means of electronic communication, shall be deemed to have been received on the day it was sent (provided that if it was sent on a day which is not a business day, then it shall be deemed delivered on the business day following the sending), or if delivered by hand shall be deemed to have been received at the time it is delivered to the applicable address if such date is a business day and such delivery was made before 4:00 p.m. (Rossland time) and otherwise on the next business day. Notice of change of address shall also be governed by this Section. In the event of a general discontinuance of postal service due to strike, lock-out or otherwise, notices or other communications shall be delivered by hand or sent by facsimile or other means of electronic communication and shall be deemed to have been received in accordance with this Section.

**Amendments**

21. No amendment, modification or waiver of any provision of this Convertible Note or consent to any departure by the Borrower or Covenantor from any provision of this Convertible Note is in any event effective unless it is in writing and signed by the Holder and then the amendment, modification, waiver or consent is effective only in the specific instance and for the specific purpose for which it is given.

**Applicable Law**

22. This Convertible Note shall be construed and enforced in accordance with, and the rights of the parties hereto shall be governed by, the laws of the Province of British Columbia and the laws of Canada applicable therein.

**Time of the Essence**

23. Time shall in all respects be of the essence of this Convertible Note.

**Waiver of Benefits**

24. The Borrower hereby waives the benefits of demand and presentment for payment, notice of non-payment, protest and notice of protest of this Convertible Note.

**Compliance with Directions, etc.**

25. The Holder may at any time direct the Borrower to make any payment which is due and payable hereunder or to become due and payable hereunder to any person and the Borrower shall comply with such direction. The Borrower shall, upon the written demand of the Holder, confirm to any third party specified by the Holder that such direction has been received and that no prepayments have been made hereunder and that the Borrower has not been directed to make payments hereunder to any other person.

**Further Assurances**

26. The Borrower, Covenantor and Holder will use all reasonable efforts to give full effect to this Convertible Note and will execute and deliver all such further documents and instruments and do all such further acts and things as the other party reasonably requests to evidence, carry out and give full effect to the terms, conditions, intent and meaning set out herein.

IN WITNESS WHEREOF the Borrower and the Covenantor have executed this Convertible Note on the date first above written.

---

| | |
|:---|:---|
| **RMR ACQUISITION CORP.** | **RMR ACQUISITION CORP.** |
| **(Borrower)** | **(Borrower)** |
| Per: | /s/ Howard Katkov |
|  | Howard Katkov |
|  | Chief Executive Officer |
|  | I have authority to bind the Borrower |
| **RED MOUNTAIN VENTURES LIMITED** **PARTNERSHIP,** by its general partner, **Red** **Mountain Ventures G.P. Ltd.** | **RED MOUNTAIN VENTURES LIMITED** **PARTNERSHIP,** by its general partner, **Red** **Mountain Ventures G.P. Ltd.** |
| **(Covenantor)** | **(Covenantor)** |
| Per: | /s/ Howard Katkov |
|  | Howard Katkov |
|  | Chief Executive Officer |
|  | I have authority to bind the Covenantor |

---

**APPENDIX A TO**

**CONVERTIBLE NOTE**

**FROM RMR ACQUISITION CORP. AND**

**RED MOUNTAIN VENTURES LIMITED PARTNERSHIP**

**NOTICE OF CONVERSION**

---

| | |
|:---|:---|
| **To:** | RMR Acquisition Corp. (the "Borrower") |
| **And To:** | Red Mountain Ventures Limited Partnership (the "Covenantor") |

---

The undersigned is the registered holder (the "Holder") of the Convertible Note(s) evidenced by the certificate(s) attached to this Notice and hereby gives notice of conversion of $<u> </u> principal amount of the Convertible Note(s) in exchange for Class C Units of the Covenantor (the "Conversion Units") at a conversion price of CDN $8.86 per Conversion Unit. Any principal amount held in a currency other than Canadian currency and interest payable thereon which is converted to Conversion Units pursuant to this Notice of Conversion will be converted to Canadian dollars at the noon exchange rate posted by the Bank of Canada in effect on the last business day prior to the conversion to the Conversion Units.

The undersigned irrevocably directs that the Conversion Units be issued and delivered as follows:

---

| | | |
|:---|:---|:---|
| <br>**Name(s) in Full** | <br>**Address(es)**<br>**(Include Postal Codes)** | **Allocation of**<br>**Conversion Units**<br>**(expressed as a**<br>**percentage)** |
|  |  | % |
|  |  | % |
|  |  | % |
|  | **Total** | 100% |

---

(Please print the full name in which the certificate(s) representing the Conversion Units is/are to be issued. If any certificates are to be issued to a person or persons other than the Holder, the Holder must pay to the Covenantor all eligible transfer taxes or other government charges).

Dated this<u> </u> day of<u> </u>,<u> </u>

---

| | |
|:---|:---|
| *Signature of Witness* | *Signature of Holder* |
| *Name of Witness* | *Name of Holder* |

---

**CONVERTIBLE GRID PROMISSORY NOTE**

---

| | |
|:---|:---|
| CAD**$600,000** | August 31, 2015 |

---

**FOR VALUE RECEIVED,** the undersigned, **RMR ACQUISITION CORP.** (the "**Borrower**") hereby promises to pay to or to the order of **Jeff Busby, in trust for the Juice Trust dtd 1/24/96 Trust 3** (the "**Holder**"), on or before April 18, 2019 (the "**Maturity Date**"), the principal amount of **$600,000** Canadian dollars, or so much of such sum as will have been advanced and is then outstanding under this Convertible Note as evidenced by notations by the Lender from time to time on the grid attached hereto as Appendix B, (the "**Principal Balance**") together with interest as hereinafter provided for.

Set out below is a statement of the rights of the Holder and the conditions to which this convertible grid promissory note (the "**Convertible Note**") is subject and to which the Holder, by the acceptance of this Convertible Note, agrees. The Borrower agrees to use the Principal Balance solely for repairs to the Grey chairlift and related costs and expenses, including expenses related to claims made by the Borrower in respect of faulty construction of the Grey chairlift.

**Interest**

1. The Principal Balance, both before and after maturity, default or judgment and overdue interest both before and after default or judgment, shall bear interest from and including the issue date of this Convertible Note, at the rate of 10.0% per annum, calculated daily and compounded annually and payable on the Maturity Date, not in advance.

**Payment of Principal Balance and Interest**

2. Unless previously prepaid or converted in accordance with the terms hereof, the full amount of the Principal Balance together with all accrued and unpaid interest is due and payable on the Maturity Date and will be paid by sending a cheque by prepaid ordinary mail or by delivering other transfer of funds as may be agreed by the Holder, for such Principal Balance and interest payable to the order of the Holder and addressed to it unless the Holder otherwise directs. In the event of non-receipt of any cheque or funds for the Principal Balance and interest by the Holder, the Borrower will cause to be issued to the Holder a replacement cheque or replacement transfer of funds for like amount upon being furnished with such evidence of non-receipt as it shall reasonably require and upon being indemnified to its satisfaction, acting reasonably.

**Prepayment of Principal Balance and Interest**

3. The Principal Balance together with all accrued and unpaid interest may be prepaid in full by the Borrower prior to the Maturity Date, without any bonus or penalty whatsoever, upon fifteen (15) days prior written notice being provided by the Borrower to the Holder (the "**Prepayment Notice**"). The Borrower agrees to make a prepayment with the net proceeds of any settlement in respect of claims made by the Borrower in respect of faulty construction of the Grey chairlift.

4. Upon receipt of the Prepayment Notice, the Holder will have the right to either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) accept the prepayment; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) elect to convert the outstanding Principal Balance together with all accrued and unpaid interest at a price of Cdn$8.86 (the "**Conversion Price**") per Class C Unit (the "**Conversion Units**") of Red Mountain Ventures Limited Partnership (the "**Covenantor**"), parent of the Borrower, subject to adjustment as provided herein.

In the event that the Holder wishes to convert the outstanding Principal Balance and interest thereon, then the Holder shall deliver a duly completed and executed Notice of Conversion (as defined herein) to the Borrower within fifteen (15) days following receipt by the Holder of the Prepayment Notice.

The records of the Borrower shall be updated from time to time to reflect the Principal Balance as it is decreased in accordance with the terms hereof.

**Juice Trust Credit Facility**

5. All or any part of the Principal Balance outstanding from time to time is convertible at the election of the Holder at any time and from time to time after the date hereof up to and including the close of business one (1) business day prior to the Maturity Date into principal owing under the amended and restated credit agreement between, amongst others, the Borrower and the Holder dated August 16, 2013, as may be further amended from time to time (the "**Credit Agreement**"). If the Holder wishes to convert the Principal Balance, in whole or in part, and interest thereon into principal owing under the Credit Agreement (the "**Converted Amount**"), it shall surrender this Convertible Note to the Borrower, together with a notice of conversion of Converted Amount (the "**Credit Agreement Election**"). Upon surrender of this Convertible Note together with the Credit Agreement Election, the Holder or its nominee or assignee, as the case may be, shall be entitled to be entered in the books of the Borrower as a lender of the Converted Amount under the Credit Facility, and as soon as practicable thereafter and in any event no later than fifteen (15) business days after receipt by the Borrower of the Credit Agreement Election, the Borrower shall deliver or cause to be delivered to the Holder a replacement convertible promissory note issued pursuant to the Credit Agreement in the amount of the Converted Amount, dated the date of the Credit Agreement Election and otherwise having the same terms and conditions as convertible promissory notes issued pursuant to the Credit Agreement.

**Conversion Privileges**

6. All or any part of the Principal Balance outstanding from time to time is convertible at the election of the Holder at any time and from time to time after the date hereof up to and including the close of business one **(I)** business day prior to the Maturity Date into Conversion Units at the Conversion Price, subject to adjustment as provided herein. In the event of such conversion, any interest on the outstanding Principal Balance shall convert into Conversion Units at the Conversion Price, subject to adjustment as provided herein.

**Manner and Exercise of Right to Convert**

7. If the Holder wishes to convert the Principal Balance, in whole or in part, and interest thereon into Conversion Units pursuant to the terms hereof, it shall surrender this Convertible Note to the Borrower, together with the conversion notice (the "**Notice of Conversion**") in the form attached as Appendix "A" hereto duly completed and executed by the Borrower, irrevocably exercising its right to convert the Principal Balance, or such portion thereof, and interest thereon in accordance with the provisions hereof. The date the Notice of Conversion is received by the Borrower shall be the effective date of such conversion (the "**Date of Conversion**"). Upon surrender of this Convertible Note together with the Notice of Conversion, the Holder or its nominee or assignee, as the case may be, shall be entitled to be entered in the books of the Covenantor as of the Date of Conversion as the holder of the number of Conversion Units into which this Convertible Note, or portion thereof, is convertible in accordance with the terms hereof, and as soon as practicable thereafter and in any event no later than fifteen (15) business days after receipt by the Borrower of the Notice of Conversion, the Covenantor shall deliver or cause to be delivered to the Holder a copy of the certificate representing the Conversion Units (with the original certificate to remain in the minute book of the Covenantor).

8. If the Principal Balance is not converted in full by the Holder in accordance with section 7 hereof, upon surrender of this Convertible Note to the Borrower, the Borrower shall cancel same and shall, without charge, forthwith certify and deliver to the Holder a new Convertible Note in the aggregate Principal Balance equal to the unconverted part of the Principal Balance then outstanding.

9. Upon surrender of this Convertible Note for conversion in accordance with section 7, the Holder will be entitled to receive that number of Conversion Units as is equal to the sum of: (i) the quotient obtained upon dividing the Principal Balance to be converted by the Conversion Price, and (ii) the quotient obtained by dividing the interest on the Principal Balance to be converted by the Conversion Price.

10. Upon the first conversion of any portion of the Principal Balance, as a condition of conversion the Holder will be required to execute an acknowledgement to be bound by the partnership agreement governing the affairs of the Covenantor.

**Adjustments**

11. For the purposes of this Convertible Note, the Conversion Price will be adjusted proportionally for any subsequent unit distribution or split, unit combination or other similar recapitalization, reclassification or reorganization of or affecting the limited partnership units of the Covenantor. In the event of any acquisition or merger to which the Covenantor is a party other than a merger or consolidation in which the Covenantor is the continuing corporation, or in the case of any sale or conveyance to another corporation of the property of the Borrower or Covenantor as an entirety or substantially as an entirety, or in the case of any statutory exchange of securities with another corporation (including any exchange effected in connection with a merger of a third corporation into the Covenantor), then the Holder will have the right to convert the outstanding Principal Balance into Conversion Units at the Conversion Price immediately prior to such acquisition, merger, sale or conveyance. The provisions of this section will similarly apply to successive consolidations, mergers, statutory exchanges, sales or conveyances, provided that, notwithstanding any other provision hereof, no adjustment of the Conversion Price will be required unless such adjustment would require an increase or decrease of at least one percent (1%) in the Conversion Price then in effect.

**No Requirement to Issue Fractional Units**

12. The Covenantor shall not issue fractional Conversion Units upon the conversion of this Convertible Note. If any fractional interest in a Conversion Unit would be deliverable upon the conversion of any Principal Balance pursuant to the terms hereof, any such fractional interest will be rounded down to the nearest whole number of Conversion Units.

**Legended Unit Certificates**

13. The certificates representing the Conversion Shares shall contain the legend required by the limited partnership agreement governing the affairs of the Covenantor. In addition and notwithstanding anything herein contained to the contrary, the Conversion Units issuable upon conversion of this Convertible Note will only be issued in compliance with the securities laws of any applicable jurisdiction, and the certificates representing the Conversion Units thereby issued may bear such legend(s) as may, in the opinion of counsel to the Covenantor, acting reasonably, be necessary in order to avoid a violation of any applicable Canadian securities laws, any applicable United States securities laws or to comply with the requirements of any stock exchange on which the Conversion Units may be listed.

**Restrictions on Transfer**

14. This Convertible Note shall not be transferred or assigned without the Borrower's prior written consent, except such consent shall not be required if either the Borrower or the Covenantor are in default of either of their respective obligations under this Convertible Note.

**No Voting Rights**

15. The Convertible Note shall not entitle the Holder to any of the rights of a limited partner of the Covenantor, including without limitation, the right to vote, to receive distributions, or to receive any notice of, or to attend meetings of limited partners or any other proceedings of the Covenantor.

**Application of Payments**

16. Any amount paid in satisfaction of the indebtedness evidenced by this Convertible Note shall be applied first in satisfaction of any accrued and unpaid interest which is due and payable, with the remaining portion of such amount applied in satisfaction of the Principal Balance owing, with any remaining amount applied in satisfaction of any accrued but unpaid interest which is not yet due and payable as at the date on which such amount is paid.

**Judgment Interest**

17. If the Holder obtains judgment on this Convertible Note or in respect of any amount owing hereunder, interest at the aforesaid rate, calculated monthly, not in advance, shall be payable on the amount which is outstanding under the said judgment from time to time.

**Currency**

18. All amounts payable under this Convertible Note shall be payable in the currency in which the advance of the Principal Balance was made, as noted on the face page of this Convertible Note. Notwithstanding the foregoing, the Conversion Price is payable in the lawful currency of Canada. Any Principal Balance held in a currency other than Canadian currency and interest payable thereon which is converted to Conversion Units pursuant to this Convertible Note will be converted to Canadian dollars at the noon exchange rate posted by the Bank of Canada in effect on the last business day prior to the conversion to the Conversion Units.

**Non Waiver**

19. The extension of the time for making any payment which is due and payable hereunder at any time or times or the failure, delay or omission on the part of the Holder to exercise or enforce any rights or remedies of the Holder hereunder or under any instrument securing payment of the indebtedness evidenced by this Convertible Note shall not constitute a waiver of the right of the Holder to enforce such rights and remedies thereafter.

**Notices and Demands**

20. All notices and demands provided for herein shall be in writing and shall be given by prepaid first-class mail, by facsimile or other means of electronic communication or by delivery as hereafter provided. Notices and other communications shall be addressed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if to the Borrower or Covenantor, at 2114 Columbia Avenue, Rossland, B.C., V0G 1Y0, Attn: Howard Katkov; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if to the Holder, at 314 Loma Larga Drive, Solana Beach, CA, 92075;

or as each party may otherwise notify the other parties in writing. Any such notice or other communication, if mailed by prepaid first-class mail at any time other than during a general discontinuance of postal service due to strike, lock-out or otherwise, shall be deemed to have been received on the fourth business day after the post-marked date thereof, or if sent by facsimile or other means of electronic communication, shall be deemed to have been received on the day it was sent (provided that if it was sent on a day which is not a business day, then it shall be deemed delivered on the business day following the sending), or if delivered by hand shall be deemed to have been received at the time it is delivered to the applicable address if such date is a business day and such delivery was made before 4:00 p.m. (Rossland time) and otherwise on the next business day. Notice of change of address shall also be governed by this Section. In the event of a general discontinuance of postal service due to strike, lock-out or otherwise, notices or other communications shall be delivered by hand or sent by facsimile or other means of electronic communication and shall be deemed to have been received in accordance with this Section.

**Amendments**

21. No amendment, modification or waiver of any provision of this Convertible Note or consent to any departure by the Borrower or Covenantor from any provision of this Convertible Note is in any event effective unless it is in writing and signed by the Holder and then the amendment, modification, waiver or consent is effective only in the specific instance and for the specific purpose for which it is given.

**Applicable Law**

22. This Convertible Note shall be construed and enforced in accordance with, and the rights of the parties hereto shall be governed by, the laws of the Province of British Columbia and the laws of Canada applicable therein.

**Time of the Essence**

23. Time shall in all respects be of the essence of this Convertible Note.

**Waiver of Benefits**

24. The Borrower hereby waives the benefits of demand and presentment for payment, notice of non-payment, protest and notice of protest of this Convertible Note.

**Compliance with Directions, etc.**

25. The Holder may at any time direct the Borrower to make any payment which is due and payable hereunder or to become due and payable hereunder to any person and the Borrower shall comply with such direction. The Borrower shall, upon the written demand of the Holder, confirm to any third party specified by the Holder that such direction has been received and that no prepayments have been made hereunder and that the Borrower has not been directed to make payments hereunder to any other person.

**Further Assurances**

26. The Borrower, Covenantor and Holder will use all reasonable efforts to give full effect to this Convertible Note and will execute and deliver all such further documents and instruments and do all such further acts and things as the other party reasonably requests to evidence, carry out and give full effect to the terms, conditions, intent and meaning set out herein.

IN WITNESS WHEREOF the Borrower and the Covenantor have executed this Convertible Note on the date first above written.

---

| | |
|:---|:---|
| **RMR ACQUISITION CORP.** | **RMR ACQUISITION CORP.** |
| **(Borrower)** | **(Borrower)** |
| Per: | /s/ Howard Katkov |
|  | Howard Katkov |
|  | Chief Executive Officer |
|  | I have authority to bind the Borrower |
| **RED MOUNTAIN VENTURES LIMITED** **PARTNERSHIP,** by its general partner, **Red** **Mountain Ventures G.P. Ltd.** | **RED MOUNTAIN VENTURES LIMITED** **PARTNERSHIP,** by its general partner, **Red** **Mountain Ventures G.P. Ltd.** |
| **(Covenantor)** | **(Covenantor)** |
| Per: | /s/ Howard Katkov |
|  | Howard Katkov |
|  | Chief Executive Officer |
|  | I have authority to bind the Covenantor |

---

**APPENDIX A TO**

**CONVERTIBLE NOTE**

**FROM RMR ACQUISITION CORP. AND**

**RED MOUNTAIN VENTURES LIMITED PARTNERSHIP**

**NOTICE OF CONVERSION**

---

| | |
|:---|:---|
| **To:** | RMR Acquisition Corp. (the "Borrower") |
| **And To:** | Red Mountain Ventures Limited Partnership (the "Covenantor") |

---

The undersigned is the registered holder (the "Holder") of the Convertible Note(s) evidenced by the certificate(s) attached to this Notice and hereby gives notice of conversion of $<u> </u> principal amount of the Convertible Note(s) in exchange for Class C Units of the Covenantor (the "Conversion Units") at a conversion price of CDN $8.86 per Conversion Unit. Any principal amount held in a currency other than Canadian currency and interest payable thereon which is converted to Conversion Units pursuant to this Notice of Conversion will be converted to Canadian dollars at the noon exchange rate posted by the Bank of Canada in effect on the last business day prior to the conversion to the Conversion Units.

The undersigned irrevocably directs that the Conversion Units be issued and delivered as follows:

---

| | | |
|:---|:---|:---|
| <br>**Name(s) in Full** | <br>**Address(es)**<br>**(Include Postal Codes)** | **Allocation of**<br>**Conversion Units**<br>**(expressed as a**<br>**percentage)** |
|  |  | % |
|  |  | % |
|  |  | % |
|  | **Total** | 100% |

---

(Please print the full name in which the certificate(s) representing the Conversion Units is/are to be issued. If any certificates are to be issued to a person or persons other than the Holder, the Holder must pay to the Covenantor all eligible transfer taxes or other government charges).

Dated this<u> </u> day of<u> </u>,<u> </u>

---

| | |
|:---|:---|
| *Signature of Witness* | *Signature of Holder* |
| *Name of Witness* | *Name of Holder* |

---

**APPENDIX B TO**

**CONVERTIBLE NOTE**

**FROM RMR ACQUISITION CORP. AND**

**RED MOUNTAIN VENTURES LIMITED PARTNERSHIP**

**<u>GRID</u>**

Advances and Payments

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Date** | **Amount of <br> Advance** | **Amount of <br> Principal <br> Repaid** | **Unpaid <br> Principal <br> Balance** | **Notation Made by** |
| August 31, 2015 | $300000.00 | $0 | $300000.00 | Kevin Magnall |
| October 30, 2015 | $50000.00 | $0 | $350000.00 | Kevin Magnall |

---

**CONVERTIBLE PROMISSORY NOTE**

---

| | |
|:---|:---|
| CAD**$500,000** | December 15, 2015 |

---

**FOR VALUE RECEIVED**, the undersigned, **RMR ACQUISITION CORP.** (the **"Borrower"**) hereby promises to pay to or to the order of **Jeff Busby, in trust for the Juice Trust dtd 1/24/96 Trust 3** (the **"Holder"**), on or before April 18, 2019 (the **"Maturity Date"**), the principal amount of $**500,000** Canadian dollars (the **"Principal Balance"**), together with interest as hereinafter provided for.

Set out below is a statement of the rights of the Holder and the conditions to which this convertible promissory note (the **"Convertible Note"**) is subject and to which the Holder, by the acceptance of this Convertible Note, agrees.

**Interest**

1. The Principal Balance, both before and after maturity, default or judgment and overdue interest both before and after default or judgment, shall bear interest from and including the issue date of this Convertible Note, at the rate of 8.0% per annum, calculated daily and compounded annually and payable on the Maturity Date, not in advance.

**Payment of Principal Balance and Interest**

2. Unless previously prepaid or converted in accordance with the terms hereof, the full amount of the Principal Balance together with all accrued and unpaid interest is due and payable on the Maturity Date and will be paid by sending a cheque by prepaid ordinary mail or by delivering other transfer of funds as may be agreed by the Holder, for such Principal Balance and interest payable to the order of the Holder and addressed to it unless the Holder otherwise directs. In the event of non-receipt of any cheque or funds for the Principal Balance and interest by the Holder, the Borrower will cause to be issued to the Holder a replacement cheque or replacement transfer of funds for like amount upon being furnished with such evidence of non-receipt as it shall reasonably require and upon being indemnified to its satisfaction, acting reasonably.

**Prepayment of Principal Balance and Interest**

3. The Principal Balance together with all accrued and unpaid interest may be prepaid in full by the Borrower prior to the Maturity Date, without any bonus or penalty whatsoever, upon fifteen (15) days prior written notice being provided by the Borrower to the Holder (the **"Prepayment Notice"**).

4. Upon receipt of the Prepayment Notice, the Holder will have the right to either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) accept the prepayment; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) elect to convert the outstanding Principal Balance together with all accrued and unpaid interest at a price of Cdn$8.86 (the **"Conversion Price"**) per Class C Unit (the **"Conversion Units"**) of Red Mountain Ventures Limited Partnership (the **"Covenantor"**), parent of the Borrower, subject to adjustment as provided herein.

In the event that the Holder wishes to convert the outstanding Principal Balance and interest thereon, then the Holder shall deliver a duly completed and executed Notice of Conversion (as defined herein) to the Borrower within fifteen (15) days following receipt by the Holder of the Prepayment Notice.

The records of the Borrower shall be updated from time to time to reflect the Principal Balance as it is decreased in accordance with the terms hereof.

**Juice Trust Credit Facility**

5. All or any part of the Principal Balance outstanding from time to time is convertible at the election of the Holder at any time and from time to time after the date hereof up to and including the close of business one (1) business day prior to the Maturity Date into principal owing under the amended and restated credit agreement between, amongst others, the Borrower and the Holder dated August 16, 2013, as may be further amended from time to time (the **"Credit Agreement"**). If the Holder wishes to convert the Principal Balance, in whole or in part, and interest thereon into principal owing under the Credit Agreement (the **"Converted Amount"**), it shall surrender this Convertible Note to the Borrower, together with a notice of conversion of Converted Amount (the **"Credit Agreement Election"**). Upon surrender of this Convertible Note together with the Credit Agreement Election, the Holder or its nominee or assignee, as the case may be, shall be entitled to be entered in the books of the Borrower as a lender of the Converted Amount under the Credit Facility, and as soon as practicable thereafter and in any event no later than fifteen (15) business days after receipt by the Borrower of the Credit Agreement Election, the Borrower shall deliver or cause to be delivered to the Holder a replacement convertible promissory note issued pursuant to the Credit Agreement in the amount of the Converted Amount, dated the date of the Credit Agreement Election and otherwise having the same terms and conditions as convertible promissory notes issued pursuant to the Credit Agreement.

**Conversion Privileges**

6. All or any part of the Principal Balance outstanding from time to time is convertible at the election of the Holder at any time and from time to time after the date hereof up to and including the close of business one (1) business day prior to the Maturity Date into Conversion Units at the Conversion Price, subject to adjustment as provided herein. In the event of such conversion, any interest on the outstanding Principal Balance shall convert into Conversion Units at the Conversion Price, subject to adjustment as provided herein.

**Manner and Exercise of Right to Convert**

7. If the Holder wishes to convert the Principal Balance, in whole or in part, and interest thereon into Conversion Units pursuant to the terms hereof, it shall surrender this Convertible Note to the Borrower, together with the conversion notice (the **"Notice of Conversion"**) in the form attached as Appendix "A" hereto duly completed and executed by the Borrower, irrevocably exercising its right to convert the Principal Balance, or such portion thereof, and interest thereon in accordance with the provisions hereof. The date the Notice of Conversion is received by the Borrower shall be the effective date of such conversion (the **"Date of Conversion"**). Upon surrender of this Convertible Note together with the Notice of Conversion, the Holder or its nominee or assignee, as the case may be, shall be entitled to be entered in the books of the Covenantor as of the Date of Conversion as the holder of the number of Conversion Units into which this Convertible Note, or portion thereof, is convertible in accordance with the terms hereof, and as soon as practicable thereafter and in any event no later than fifteen (15) business days after receipt by the Borrower of the Notice of Conversion, the Covenantor shall deliver or cause to be delivered to the Holder a copy of the certificate representing the Conversion Units (with the original certificate to remain in the minute book of the Covenantor).

8. If the Principal Balance is not converted in full by the Holder in accordance with section 7 hereof, upon surrender of this Convertible Note to the Borrower, the Borrower shall cancel same and shall, without charge, forthwith certify and deliver to the Holder a new Convertible Note in the aggregate Principal Balance equal to the unconverted part of the Principal Balance then outstanding.

9. Upon surrender of this Convertible Note for conversion in accordance with section 7, the Holder will be entitled to receive that number of Conversion Units as is equal to the sum of: (i) the quotient obtained upon dividing the Principal Balance to be converted by the Conversion Price, and (ii) the quotient obtained by dividing the interest on the Principal Balance to be converted by the Conversion Price.

10. Upon the first conversion of any portion of the Principal Balance, as a condition of conversion the Holder will be required to execute an acknowledgement to be bound by the partnership agreement governing the affairs of the Covenantor.

**Adjustments**

11. For the purposes of this Convertible Note, the Conversion Price will be adjusted proportionally for any subsequent unit distribution or split, unit combination or other similar recapitalization, reclassification or reorganization of or affecting the limited partnership units of the Covenantor. In the event of any acquisition or merger to which the Covenantor is a party other than a merger or consolidation in which the Covenantor is the continuing corporation, or in the case of any sale or conveyance to another corporation of the property of the Borrower or Covenantor as an entirety or substantially as an entirety, or in the case of any statutory exchange of securities with another corporation (including any exchange effected in connection with a merger of a third corporation into the Covenantor), then the Holder will have the right to convert the outstanding Principal Balance into Conversion Units at the Conversion Price immediately prior to such acquisition, merger, sale or conveyance. The provisions of this section will similarly apply to successive consolidations, mergers, statutory exchanges, sales or conveyances, provided that, notwithstanding any other provision hereof, no adjustment of the Conversion Price will be required unless such adjustment would require an increase or decrease of at least one percent (1%) in the Conversion Price then in effect.

**No Requirement to Issue Fractional Units**

12. The Covenantor shall not issue fractional Conversion Units upon the conversion of this Convertible Note. If any fractional interest in a Conversion Unit would be deliverable upon the conversion of any Principal Balance pursuant to the terms hereof, any such fractional interest will be rounded down to the nearest whole number of Conversion Units.

**Legended Unit Certificates**

13. The certificates representing the Conversion Shares shall contain the legend required by the limited partnership agreement governing the affairs of the Covenantor. In addition and notwithstanding anything herein contained to the contrary, the Conversion Units issuable upon conversion of this Convertible Note will only be issued in compliance with the securities laws of any applicable jurisdiction, and the certificates representing the Conversion Units thereby issued may bear such legend(s) as may, in the opinion of counsel to the Covenantor, acting reasonably, be necessary in order to avoid a violation of any applicable Canadian securities laws, any applicable United States securities laws or to comply with the requirements of any stock exchange on which the Conversion Units may be listed.

**Restrictions on Transfer**

14. This Convertible Note shall not be transferred or assigned without the Borrower's prior written consent, except such consent shall not be required if either the Borrower or the Covenantor are in default of either of their respective obligations under this Convertible Note.

**No Voting Rights**

15. The Convertible Note shall not entitle the Holder to any of the rights of a limited partner of the Covenantor, including without limitation, the right to vote, to receive distributions, or to receive any notice of, or to attend meetings of limited partners or any other proceedings of the Covenantor.

**Application of Payments**

16. Any amount paid in satisfaction of the indebtedness evidenced by this Convertible Note shall be applied first in satisfaction of any accrued and unpaid interest which is due and payable, with the remaining portion of such amount applied in satisfaction of the Principal Balance owing, with any remaining amount applied in satisfaction of any accrued but unpaid interest which is not yet due and payable as at the date on which such amount is paid.

**Judgment Interest**

17. If the Holder obtains judgment on this Convertible Note or in respect of any amount owing hereunder, interest at the aforesaid rate, calculated monthly, not in advance, shall be payable on the amount which is outstanding under the said judgment from time to time.

**Currency**

18. All amounts payable under this Convertible Note shall be payable in the currency in which the advance of the Principal Balance was made, as noted on the face page of this Convertible Note. Notwithstanding the foregoing, the Conversion Price is payable in the lawful currency of Canada. Any Principal Balance held in a currency other than Canadian currency and interest payable thereon which is converted to Conversion Units pursuant to this Convertible Note will be converted to Canadian dollars at the noon exchange rate posted by the Bank of Canada in effect on the last business day prior to the conversion to the Conversion Units.

**Non Waiver**

19. The extension of the time for making any payment which is due and payable hereunder at any time or times or the failure, delay or omission on the part of the Holder to exercise or enforce any rights or remedies of the Holder hereunder or under any instrument securing payment of the indebtedness evidenced by this Convertible Note shall not constitute a waiver of the right of the Holder to enforce such rights and remedies thereafter.

**Notices and Demands**

20. All notices and demands provided for herein shall be in writing and shall be given by prepaid first-class mail, by facsimile or other means of electronic communication or by delivery as hereafter provided. Notices and other communications shall be addressed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if to the Borrower or Covenantor, at 2114 Columbia Avenue, Rossland, B.C., V0G 1Y0, Attn: Howard Katkov; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if to the Holder, at 314 Loma Larga Drive, Solana Beach, CA, 92075;

or as each party may otherwise notify the other parties in writing. Any such notice or other communication, if mailed by prepaid first-class mail at any time other than during a general discontinuance of postal service due to strike, lock-out or otherwise, shall be deemed to have been received on the fourth business day after the post-marked date thereof, or if sent by facsimile or other means of electronic communication, shall be deemed to have been received on the day it was sent (provided that if it was sent on a day which is not a business day, then it shall be deemed delivered on the business day following the sending), or if delivered by hand shall be deemed to have been received at the time it is delivered to the applicable address if such date is a business day and such delivery was made before 4:00 p.m. (Rossland time) and otherwise on the next business day. Notice of change of address shall also be governed by this Section. In the event of a general discontinuance of postal service due to strike, lock-out or otherwise, notices or other communications shall be delivered by hand or sent by facsimile or other means of electronic communication and shall be deemed to have been received in accordance with this Section.

**Amendments**

21. No amendment, modification or waiver of any provision of this Convertible Note or consent to any departure by the Borrower or Covenantor from any provision of this Convertible Note is in any event effective unless it is in writing and signed by the Holder and then the amendment, modification, waiver or consent is effective only in the specific instance and for the specific purpose for which it is given.

**Applicable Law**

22. This Convertible Note shall be construed and enforced in accordance with, and the rights of the parties hereto shall be governed by, the laws of the Province of British Columbia and the laws of Canada applicable therein.

**Time of the Essence**

23. Time shall in all respects be of the essence of this Convertible Note.

**Waiver of Benefits**

24. The Borrower hereby waives the benefits of demand and presentment for payment, notice of non-payment, protest and notice of protest of this Convertible Note.

**Compliance with Directions, etc.**

25. The Holder may at any time direct the Borrower to make any payment which is due and payable hereunder or to become due and payable hereunder to any person and the Borrower shall comply with such direction. The Borrower shall, upon the written demand of the Holder, confirm to any third party specified by the Holder that such direction has been received and that no prepayments have been made hereunder and that the Borrower has not been directed to make payments hereunder to any other person.

**Further Assurances**

26. The Borrower, Covenantor and Holder will use all reasonable efforts to give full effect to this Convertible Note and will execute and deliver all such further documents and instruments and do all such further acts and things as the other party reasonably requests to evidence, carry out and give full effect to the terms, conditions, intent and meaning set out herein.

IN WITNESS WHEREOF the Borrower and the Covenantor have executed this Convertible Note on the date first above written.

---

| | |
|:---|:---|
| **RMR ACQUISITION CORP.** | **RMR ACQUISITION CORP.** |
| **(Borrower)** | **(Borrower)** |
| Per: | /s/ Howard Katkov |
|  | Howard Katkov |
|  | Chief Executive Officer |
|  | I have authority to bind the Borrower |
| **RED MOUNTAIN VENTURES** **LIMITED** | **RED MOUNTAIN VENTURES** **LIMITED** |
| **PARTNERSHIP,** by its general partner, **Red Mountain Ventures G.P. Ltd.** | **PARTNERSHIP,** by its general partner, **Red Mountain Ventures G.P. Ltd.** |
| **(Covenantor)** | **(Covenantor)** |
| Per: | /s/ Howard Katkov |
|  | Howard Katkov |
|  | Chief Executive Officer |
|  | I have authority to bind the Covenantor |

---

**APPENDIX A TO**

**CONVERTIBLE NOTE** 

**FROM RMR ACQUISITION CORP. AND**

**RED MOUNTAIN VENTURES LIMITED PARTNERSHIP**

**NOTICE OF CONVERSION**

---

| | |
|:---|:---|
| **To:** | RMR Acquisition Corp. (the "Borrower") |

---

---

| | |
|:---|:---|
| **And To:** | Red Mountain Ventures Limited Partnership (the "Covenantor") |

---

The undersigned is the registered holder (the "Holder") of the Convertible Note(s) evidenced by the certificate(s) attached to this Notice and hereby gives notice of conversion of $<u> </u> principal amount of the Convertible Note(s) in exchange for Class C Units of the Covenantor (the "Conversion Units") at a conversion price of CDN $8.86 per Conversion Unit. Any principal amount held in a currency other than Canadian currency and interest payable thereon which is converted to Conversion Units pursuant to this Notice of Conversion will be converted to Canadian dollars at the noon exchange rate posted by the Bank of Canada in effect on the last business day prior to the conversion to the Conversion Units.

The undersigned irrevocably directs that the Conversion Units be issued and delivered as follows:

---

| | | |
|:---|:---|:---|
| <br>**Name(s) in Full** | <br>**Address(es)**<br>**(Include Postal Codes)** | **Allocation of**<br>**Conversion Units**<br>**(expressed as a**<br>**Percentage)** |
|  |  | % |
|  |  | % |
|  |  | % |
|  | **Total** | 100% |

---

(Please print the full name in which the certificate(s) representing the Conversion Units is/are to be issued. If any certificates are to be issued to a person or persons other than the Holder, the Holder must pay to the Covenantor all eligible transfer taxes or other government charges).

Dated this<u> </u> day of<u> </u>,<u> </u>

---

| | |
|:---|:---|
| *Signature of Witness* | *Signature of Holder* |
| *Name of Witness* | *Name of Holder* |

---

**CONVERTIBLE PROMISSORY NOTE**

---

| | |
|:---|:---|
| CAD**$200,000** | September 8, 2016 |

---

**FOR VALUE RECEIVED**, the undersigned, **RMR ACQUISITION CORP.** (the **"Borrower"**) hereby promises to pay to or to the order of **Jeff Busby, in trust for the Juice Trust dtd 1/24/96 Trust 3** (the **"Holder"**), on or before April 18, 2019 (the **"Maturity Date"**), the principal amount of $**200,000** Canadian dollars (the **"Principal Balance"**), together with interest as hereinafter provided for.

Set out below is a statement of the rights of the Holder and the conditions to which this convertible promissory note (the **"Convertible Note"**) is subject and to which the Holder, by the acceptance of this Convertible Note, agrees.

**Interest**

1. The Principal Balance, both before and after maturity, default or judgment and overdue interest both before and after default or judgment, shall bear interest from and including the issue date of this Convertible Note, at the rate of 8.0% per annum, calculated daily and compounded annually and payable on the Maturity Date, not in advance.

**Payment of Principal Balance and Interest**

2. Unless previously prepaid or converted in accordance with the terms hereof, the full amount of the Principal Balance together with all accrued and unpaid interest is due and payable on the Maturity Date and will be paid by sending a cheque by prepaid ordinary mail or by delivering other transfer of funds as may be agreed by the Holder, for such Principal Balance and interest payable to the order of the Holder and addressed to it unless the Holder otherwise directs. In the event of non-receipt of any cheque or funds for the Principal Balance and interest by the Holder, the Borrower will cause to be issued to the Holder a replacement cheque or replacement transfer of funds for like amount upon being furnished with such evidence of non-receipt as it shall reasonably require and upon being indemnified to its satisfaction, acting reasonably.

**Prepayment of Principal Balance and Interest**

3. The Principal Balance together with all accrued and unpaid interest may be prepaid in full by the Borrower prior to the Maturity Date, without any bonus or penalty whatsoever, upon fifteen (15) days prior written notice being provided by the Borrower to the Holder (the **"Prepayment Notice"**).

4. Upon receipt of the Prepayment Notice, the Holder will have the right to either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) accept the prepayment; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) elect to convert the outstanding Principal Balance together with all accrued and unpaid interest at a price of Cdn$8.86 (the **"Conversion Price"**) per Class C Unit (the **"Conversion Units"**) of Red Mountain Ventures Limited Partnership (the **"Covenantor"**), parent of the Borrower, subject to adjustment as provided herein.

In the event that the Holder wishes to convert the outstanding Principal Balance and interest thereon, then the Holder shall deliver a duly completed and executed Notice of Conversion (as defined herein) to the Borrower within fifteen (15) days following receipt by the Holder of the Prepayment Notice.

The records of the Borrower shall be updated from time to time to reflect the Principal Balance as it is decreased in accordance with the terms hereof.

**Juice Trust Credit Facility**

5. All or any part of the Principal Balance outstanding from time to time is convertible at the election of the Holder at any time and from time to time after the date hereof up to and including the close of business one (1) business day prior to the Maturity Date into principal owing under the amended and restated credit agreement between, amongst others, the Borrower and the Holder dated August 16, 2013, as may be further amended from time to time (the **"Credit Agreement"**). If the Holder wishes to convert the Principal Balance, in whole or in part, and interest thereon into principal owing under the Credit Agreement (the **"Converted Amount"**), it shall surrender this Convertible Note to the Borrower, together with a notice of conversion of Converted Amount (the **"Credit Agreement Election"**). Upon surrender of this Convertible Note together with the Credit Agreement Election, the Holder or its nominee or assignee, as the case may be, shall be entitled to be entered in the books of the Borrower as a lender of the Converted Amount under the Credit Facility, and as soon as practicable thereafter and in any event no later than fifteen (15) business days after receipt by the Borrower of the Credit Agreement Election, the Borrower shall deliver or cause to be delivered to the Holder a replacement convertible promissory note issued pursuant to the Credit Agreement in the amount of the Converted Amount, dated the date of the Credit Agreement Election and otherwise having the same terms and conditions as convertible promissory notes issued pursuant to the Credit Agreement.

**Conversion Privileges**

6. All or any part of the Principal Balance outstanding from time to time is convertible at the election of the Holder at any time and from time to time after the date hereof up to and including the close of business one (I) business day prior to the Maturity Date into Conversion Units at the Conversion Price, subject to adjustment as provided herein. In the event of such conversion, any interest on the outstanding Principal Balance shall convert into Conversion Units at the Conversion Price, subject to adjustment as provided herein.

**Manner and Exercise of Right to Convert**

7. If the Holder wishes to convert the Principal Balance, in whole or in part, and interest thereon into Conversion Units pursuant to the terms hereof, it shall surrender this Convertible Note **to** the Borrower, together with the conversion notice (the **"Notice of Conversion"**) in the form attached as Appendix "A" hereto duly completed and executed by the Borrower, irrevocably exercising its right to convert the Principal Balance, or such portion thereof, and interest thereon in accordance with the provisions hereof. The date the Notice of Conversion is received by the Borrower shall be the effective date of such conversion (the **"Date of Conversion"**). Upon surrender of this Convertible Note together with the Notice of Conversion, the Holder or its nominee or assignee, as the case may be, shall be entitled to be entered in the books of the Covenantor as of the Date of Conversion as the holder of the number of Conversion Units into which this Convertible Note, or portion thereof, is convertible in accordance with the terms hereof, and as soon as practicable thereafter and in any event no later than fifteen (15) business days after receipt by the Borrower of the Notice of Conversion, the Covenantor shall deliver or cause to be delivered to the Holder a copy of the certificate representing the Conversion Units (with the original certificate to remain in the minute book of the Covenantor).

8. If the Principal Balance is not converted in full by the Holder in accordance with section 7 hereof, upon surrender of this Convertible Note to the Borrower, the Borrower shall cancel same and shall, without charge, forthwith certify and deliver to the Holder a new Convertible Note in the aggregate Principal Balance equal to the unconverted part of the Principal Balance then outstanding.

9. Upon surrender of this Convertible Note for conversion in accordance with section 7, the Holder will be entitled to receive that number of Conversion Units as is equal to the sum of: (i) the quotient obtained upon dividing the Principal Balance to be converted by the Conversion Price, and (ii) the quotient obtained by dividing the interest on the Principal Balance to be converted by the Conversion Price.

10. Upon the first conversion of any portion of the Principal Balance, as a condition of conversion the Holder will be required to execute an acknowledgement to be bound by the partnership agreement governing the affairs of the Covenantor.

**Adjustments**

11. For the purposes of this Convertible Note, the Conversion Price will be adjusted proportionally for any subsequent unit distribution or split, unit combination or other similar recapitalization, reclassification or reorganization of or affecting the limited partnership units of the Covenantor. In the event of any acquisition or merger to which the Covenantor is a party other than a merger or consolidation in which the Covenantor is the continuing corporation, or in the case of any sale or conveyance to another corporation of the property of the Borrower or Covenantor as an entirety or substantially as an entirety, or in the case of any statutory exchange of securities with another corporation (including any exchange effected in connection with a merger of a third corporation into the Covenantor), then the Holder will have the right to convert the outstanding Principal Balance into Conversion Units at the Conversion Price immediately prior to such acquisition, merger, sale or conveyance. The provisions of this section will similarly apply to successive consolidations, mergers, statutory exchanges, sales or conveyances, provided that, notwithstanding any other provision hereof, no adjustment of the Conversion Price will be required unless such adjustment would require an increase or decrease of at least one percent (I%) in the Conversion Price then in effect.

**No Requirement to Issue Fractional Units**

12. The Covenantor shall not issue fractional Conversion Units upon the conversion of this Convertible Note. If any fractional interest in a Conversion Unit would be deliverable upon the conversion of any Principal Balance pursuant to the terms hereof, any such fractional interest will be rounded down to the nearest whole number of Conversion Units.

**Legended Unit Certificates**

13. The certificates representing the Conversion Shares shall contain the legend required by the limited partnership agreement governing the affairs of the Covenantor. In addition and notwithstanding anything herein contained to the contrary, the Conversion Units issuable upon conversion of this Convertible Note will only be issued in compliance with the securities laws of any applicable jurisdiction, and the certificates representing the Conversion Units thereby issued may bear such legend(s) as may, in the opinion of counsel to the Covenantor, acting reasonably, be necessary in order to avoid a violation of any applicable Canadian securities laws, any applicable United States securities laws or to comply with the requirements of any stock exchange on which the Conversion Units may be listed.

**Restrictions on Transfer**

14. This Convertible Note shall not be transferred or assigned without the Borrower's prior written consent, except such consent shall not be required if either the Borrower or the Covenantor are in default of either of their respective obligations under this Convertible Note.

**No Voting Rights**

15. The Convertible Note shall not entitle the Holder to any of the rights of a limited partner of the Covenantor, including without limitation, the right to vote, to receive distributions, or to receive any notice of, or to attend meetings of limited partners or any other proceedings of the Covenantor.

**Application of Payments**

16. Any amount paid in satisfaction of the indebtedness evidenced by this Convertible Note shall be applied first in satisfaction of any accrued and unpaid interest which is due and payable, with the remaining portion of such amount applied in satisfaction of the Principal Balance owing, with any remaining amount applied in satisfaction of any accrued but unpaid interest which is not yet due and payable as at the date on which such amount is paid.

**Judgment Interest**

17. If the Holder obtains judgment on this Convertible Note or in respect of any amount owing hereunder, interest at the aforesaid rate, calculated monthly, not in advance, shall be payable on the amount which is outstanding under the said judgment from time to time.

**Currency**

18. All amounts payable under this Convertible Note shall be payable in the currency in which the advance of the Principal Balance was made, as noted on the face page of this Convertible Note. Notwithstanding the foregoing, the Conversion Price is payable in the lawful currency of Canada. Any Principal Balance held in a currency other than Canadian currency and interest payable thereon which is converted to Conversion Units pursuant to this Convertible Note will be converted to Canadian dollars at the noon exchange rate posted by the Bank of Canada in effect on the last business day prior to the conversion to the Conversion Units.

**Non Waiver**

19. The extension of the time for making any payment which is due and payable hereunder at any time or times or the failure, delay or omission on the part of the Holder to exercise or enforce any rights or remedies of the Holder hereunder or under any instrument securing payment of the indebtedness evidenced by this Convertible Note shall not constitute a waiver of the right of the Holder to enforce such rights and remedies thereafter.

**Notices and Demands**

20. All notices and demands provided for herein shall be in writing and shall be given by prepaid first-class mail, by facsimile or other means of electronic communication or by delivery as hereafter provided. Notices and other communications shall be addressed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if to the Borrower or Covenantor, at 2114 Columbia Avenue, Rossland, B.C., V0G 1Y0, Attn: Howard Katkov; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if to the Holder, at 314 Loma Larga Drive, Solana Beach, CA, 92075;

or as each party may otherwise notify the other parties in writing. Any such notice or other communication, if mailed by prepaid first-class mail at any time other than during a general discontinuance of postal service due to strike, lock-out or otherwise, shall be deemed to have been received on the fourth business day after the post-marked date thereof, or if sent by facsimile or other means of electronic communication, shall be deemed to have been received on the day it was sent (provided that if it was sent on a day which is not a business day, then it shall be deemed delivered on the business day following the sending), or if delivered by hand shall be deemed to have been received at the time it is delivered to the applicable address if such date is a business day and such delivery was made before 4:00 p.m. (Rossland time) and otherwise on the next business day. Notice of change of address shall also be governed by this Section. In the event of a general discontinuance of postal service due to strike, lock-out or otherwise, notices or other communications shall be delivered by hand or sent by facsimile or other means of electronic communication and shall be deemed to have been received in accordance with this Section.

**Amendments**

21. No amendment, modification or waiver of any provision of this Convertible Note or consent to any departure by the Borrower or Covenantor from any provision of this Convertible Note is in any event effective unless it is in writing and signed by the Holder and then the amendment, modification, waiver or consent is effective only in the specific instance and for the specific purpose for which it is given.

**Applicable Law**

22. This Convertible Note shall be construed and enforced in accordance with, and the rights of the parties hereto shall be governed by, the laws of the Province of British Columbia and the laws of Canada applicable therein.

**Time of the Essence**

23. Time shall in all respects be of the essence of this Convertible Note.

**Waiver of Benefits**

24. The Borrower hereby waives the benefits of demand and presentment for payment, notice of non-payment, protest and notice of protest of this Convertible Note.

**Compliance with Directions, etc.**

25. The Holder may at any time direct the Borrower to make any payment which is due and payable hereunder or to become due and payable hereunder to any person and the Borrower shall comply with such direction. The Borrower shall, upon the written demand of the Holder, confirm to any third party specified by the Holder that such direction has been received and that no prepayments have been made hereunder and that the Borrower has not been directed to make payments hereunder to any other person.

**Further Assurances**

26. The Borrower, Covenantor and Holder will use all reasonable efforts to give full effect to this Convertible Note and will execute and deliver all such further documents and instruments and do all such further acts and things as the other party reasonably requests to evidence, carry out and give full effect to the terms, conditions, intent and meaning set out herein.

IN WITNESS WHEREOF the Borrower and the Covenantor have executed this Convertible Note on the date first above written.

---

| | |
|:---|:---|
| **RMR ACQUISITION CORP.** | **RMR ACQUISITION CORP.** |
| **(Borrower)** | **(Borrower)** |
| Per: | /s/ Howard Katkov |
|  | Howard Katkov |
|  | Chief Executive Officer |
|  | I have authority to bind the Borrower |
| **RED MOUNTAIN VENTURES** **LIMITED** | **RED MOUNTAIN VENTURES** **LIMITED** |
| **PARTNERSHIP,** by its general partner, **Red Mountain Ventures G.P. Ltd.** | **PARTNERSHIP,** by its general partner, **Red Mountain Ventures G.P. Ltd.** |
| **(Covenantor)** | **(Covenantor)** |
| Per: | /s/ Howard Katkov |
|  | Howard Katkov |
|  | Chief Executive Officer |
|  | I have authority to bind the Covenantor |

---

**APPENDIX A TO**

**CONVERTIBLE NOTE**

**FROM RMR ACQUISITION CORP. AND**

**RED MOUNTAIN VENTURES LIMITED PARTNERSHIP**

**NOTICE OF CONVERSION**

---

| | |
|:---|:---|
| **To:** | RMR Acquisition Corp. (the "Borrower") |

---

---

| | |
|:---|:---|
| **And To:** | Red Mountain Ventures Limited Partnership (the "Covenantor") |

---

The undersigned is the registered holder (the "Holder") of the Convertible Note(s) evidenced by the certificate(s) attached to this Notice and hereby gives notice of conversion of $<u> </u> principal amount of the Convertible Note(s) in exchange for Class C Units of the Covenantor (the "Conversion Units") at a conversion price of CDN $8.86 per Conversion Unit. Any principal amount held in a currency other than Canadian currency and interest payable thereon which is converted to Conversion Units pursuant to this Notice of Conversion will be converted to Canadian dollars at the noon exchange rate posted by the Bank of Canada in effect on the last business day prior to the conversion to the Conversion Units.

The undersigned irrevocably directs that the Conversion Units be issued and delivered as follows:

---

| | | |
|:---|:---|:---|
| <br>**Name(s) in Full** | <br>**Address(es)**<br>**(Include Postal Codes)** | **Allocation of**<br>**Conversion Units**<br>**(expressed as a**<br>**Percentage)** |
|  |  | % |
|  |  | % |
|  |  | % |
|  | **Total** | 100% |

---

(Please print the full name in which the certificate(s) representing the Conversion Units is/are to be issued. If any certificates are to be issued to a person or persons other than the Holder, the Holder must pay to the Covenantor all eligible transfer taxes or other government charges).

Dated this<u> </u> day of<u> </u>,<u> </u>

---

| | |
|:---|:---|
| *Signature of Witness* | *Signature of Holder* |
| *Name of Witness* | *Name of Holder* |

---

**CONVERTIBLE PROMISSORY NOTE**

---

| | |
|:---|:---|
| CAD**$200,000** | November 7, 2016 |

---

**FOR VALUE RECEIVED**, the undersigned, **RMR ACQUISITION CORP**. (the **"Borrower"**) hereby promises to pay to or to the order of **Jeff Busby, in trust for the Juice Trust dtd 1/24/96 Trust 3** (the **"Holder"**), on or before April 18, 2019 (the **"Maturity Date"**), the principal amount of $**200,000** Canadian dollars (the **"Principal Balance"**), together with interest as hereinafter provided for.

Set out below is a statement of the rights of the Holder and the conditions to which this convertible promissory note (the **"Convertible Note"**) is subject and to which the Holder, by the acceptance of this Convertible Note, agrees.

**Interest**

1. The Principal Balance, both before and after maturity, default or judgment and overdue interest both before and after default or judgment, shall bear interest from and including the issue date of this Convertible Note, at the rate of 8.0% per annum, calculated daily and compounded annually and payable on the Maturity Date, not in advance.

**Payment of Principal Balance and Interest**

2. Unless previously prepaid or converted in accordance with the terms hereof, the full amount of the Principal Balance together with all accrued and unpaid interest is due and payable on the Maturity Date and will be paid by sending a cheque by prepaid ordinary mail or by delivering other transfer of funds as may be agreed by the Holder, for such Principal Balance and interest payable to the order of the Holder and addressed to it unless the Holder otherwise directs. In the event of non-receipt of any cheque or funds for the Principal Balance and interest by the Holder, the Borrower will cause to be issued to the Holder a replacement cheque or replacement transfer of funds for like amount upon being furnished with such evidence of non-receipt as it shall reasonably require and upon being indemnified to its satisfaction, acting reasonably.

**Prepayment of Principal Balance and Interest**

3. The Principal Balance together with all accrued and unpaid interest may be prepaid in full by the Borrower prior to the Maturity Date, without any bonus or penalty whatsoever, upon fifteen (15) days prior written notice being provided by the Borrower to the Holder (the **"Prepayment Notice"**).

4. Upon receipt of the Prepayment Notice, the Holder will have the right to either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) accept the prepayment; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) elect to convert the outstanding Principal Balance together with all accrued and unpaid interest at a price of Cdn$8.86 (the **"Conversion Price"**) per Class C Unit (the **"Conversion Units"**) of Red Mountain Ventures Limited Partnership (the **"Covenantor"**), parent of the Borrower, subject to adjustment as provided herein.

In the event that the Holder wishes to convert the outstanding Principal Balance and interest thereon, then the Holder shall deliver a duly completed and executed Notice of Conversion (as defined herein) to the Borrower within fifteen (15) days following receipt by the Holder of the Prepayment Notice.

The records of the Borrower shall be updated from time to time to reflect the Principal Balance as it is decreased in accordance with the terms hereof.

**Juice Trust Credit Facility**

5. All or any part of the Principal Balance outstanding from time to time is convertible at the election of the Holder at any time and from time to time after the date hereof up to and including the close of business one (I) business day prior to the Maturity Date into principal owing under the amended and restated credit agreement between, amongst others, the Borrower and the Holder dated August 16, 2013, as may be further amended from time to time (the **"Credit Agreement"**). If the Holder wishes to convert the Principal Balance, in whole or in part, and interest thereon into principal owing under the Credit Agreement (the **"Converted Amount"**), it shall surrender this Convertible Note to the Borrower, together with a notice of conversion of Converted Amount (the **"Credit Agreement Election**"). Upon surrender of this Convertible Note together with the Credit Agreement Election, the Holder or its nominee or assignee, as the case may be, shall be entitled to be entered in the books of the Borrower as a lender of the Converted Amount under the Credit Facility, and as soon as practicable thereafter and in any event no later than fifteen (15) business days after receipt by the Borrower of the Credit Agreement Election, the Borrower shall deliver or cause to be delivered to the Holder a replacement convertible promissory note issued pursuant to the Credit Agreement in the amount of the Converted Amount, dated the date of the Credit Agreement Election and otherwise having the same terms and conditions as convertible promissory notes issued pursuant to the Credit Agreement.

**Conversion Privileges**

6. All or any part of the Principal Balance outstanding from time to time is convertible at the election of the Holder at any time and from time to time after the date hereof up to and including the close of business one (1) business day prior to the Maturity Date into Conversion Units at the Conversion Price, subject to adjustment as provided herein. In the event of such conversion, any interest on the outstanding Principal Balance shall convert into Conversion Units at the Conversion Price, subject to adjustment as provided herein.

**Manner and Excercise of Right to Convert**

7. If the Holder wishes to convert the Principal Balance, in whole or in part, and interest thereon into Conversion Units pursuant to the terms hereof, it shall surrender this Convertible Note to the Borrower, together with the conversion notice (the **"Notice of Conversion"**) in the form attached as Appendix "A" hereto duly completed and executed by the Borrower, irrevocably exercising its right to convert the Principal Balance, or such portion thereof, and interest thereon in accordance with the provisions hereof. The date the Notice of Conversion is received by the Borrower shall be the effective date of such conversion (the **"Date of Conversion"**). Upon surrender of this Convertible Note together with the Notice of Conversion, the Holder or its nominee or assignee, as the case may be, shall be entitled to be entered in the books of the Covenantor as of the Date of Conversion as the holder of the number of Conversion Units into which this Convertible Note, or portion thereof, is convertible in accordance with the terms hereof, and as soon as practicable thereafter and in any event no later than fifteen (15) business days after receipt by the Borrower of the Notice of Conversion, the Covenantor shall deliver or cause to be delivered to the Holder a copy of the certificate representing the Conversion Units (with the original certificate to remain in the minute book of the Covenantor).

8. If the Principal Balance is not converted in full by the Holder in accordance with section 7 hereof, upon surrender of this Convertible Note to the Borrower, the Borrower shall cancel same and shall, without charge, forthwith certify and deliver to the Holder a new Convertible Note in the aggregate Principal Balance equal to the unconverted part of the Principal Balance then outstanding.

9. Upon surrender of this Convertible Note for conversion in accordance with section 7, the Holder will be entitled to receive that number of Conversion Units as is equal to the sum of: (i) the quotient obtained upon dividing the Principal Balance to be converted by the Conversion Price, and (ii) the quotient obtained by dividing the interest on the Principal Balance to be converted by the Conversion Price.

10. Upon the first conversion of any portion of the Principal Balance, as a condition of conversion the Holder will be required to execute an acknowledgement to be bound by the partnership agreement governing the affairs of the Covenantor.

**Adjustments**

11. For the purposes of this Convertible Note, the Conversion Price will be adjusted proportionally for any subsequent unit distribution or split, unit combination or other similar recapitalization, reclassification or reorganization of or affecting the limited partnership units of the Covenantor. In the event of any acquisition or merger to which the Covenantor is a party other than a merger or consolidation in which the Covenantor is the continuing corporation, or in the case of any sale or conveyance to another corporation of the property of the Borrower or Covenantor as an entirety or substantially as an entirety, or in the case of any statutory exchange of securities with another corporation (including any exchange effected in connection with a merger of a third corporation into the Covenantor), then the Holder will have the right to convert the outstanding Principal Balance into Conversion Units at the Conversion Price immediately prior to such acquisition, merger, sale or conveyance. The provisions of this section will similarly apply to successive consolidations, mergers, statutory exchanges, sales or conveyances, provided that, notwithstanding any other provision hereof, no adjustment of the Conversion Price will be required unless such adjustment would require an increase or decrease of at least one percent (1%) in the Conversion Price then in effect.

**No Requirement to Issue Fractional Units**

12. The Covenantor shall not issue fractional Conversion Units upon the conversion of this Convertible Note. If any fractional interest in a Conversion Unit would be deliverable upon the conversion of any Principal Balance pursuant to the terms hereof, any such fractional interest will be rounded down to the nearest whole number of Conversion Units.

**Legended Unit Certificates**

13. The certificates representing the Conversion Shares shall contain the legend required by the limited partnership agreement governing the affairs of the Covenantor. In addition and notwithstanding anything herein contained to the contrary, the Conversion Units issuable upon conversion of this Convertible Note will only be issued in compliance with the securities laws of any applicable jurisdiction, and the certificates representing the Conversion Units thereby issued may bear such legend(s) as may, in the opinion of counsel to the Covenantor, acting reasonably, be necessary in order to avoid a violation of any applicable Canadian securities laws, any applicable United States securities laws or to comply with the requirements of any stock exchange on which the Conversion Units may be listed.

**Restrictions on Transfer**

14. This Convertible Note shall not be transferred or assigned without the Borrower's prior written consent, except such consent shall not be required if either the Borrower or the Covenantor are in default of either of their respective obligations under this Convertible Note.

**No Voting Rights**

15. The Convertible Note shall not entitle the Holder to any of the rights of a limited partner of the Covenantor, including without limitation, the right to vote, to receive distributions, or to receive any notice of, or to attend meetings of limited partners or any other proceedings of the Covenantor.

**Application of Payments**

16. Any amount paid in satisfaction of the indebtedness evidenced by this Convertible Note shall be applied first in satisfaction of any accrued and unpaid interest which is due and payable, with the remaining portion of such amount applied in satisfaction of the Principal Balance owing, with any remaining amount applied in satisfaction of any accrued but unpaid interest which is not yet due and payable as at the date on which such amount is paid.

**Judgment Interest**

17. If the Holder obtains judgment on this Convertible Note or in respect of any amount owing hereunder, interest at the aforesaid rate, calculated monthly, not in advance, shall be payable on the amount which is outstanding under the said judgment from time to time.

**Currency**

18. All amounts payable under this Convertible Note shall be payable in the currency in which the advance of the Principal Balance was made, as noted on the face page of this Convertible Note. Notwithstanding the foregoing, the Conversion Price is payable in the lawful currency of Canada. Any Principal Balance held in a currency other than Canadian currency and interest payable thereon which is converted to Conversion Units pursuant to this Convertible Note will be converted to Canadian dollars at the noon exchange rate posted by the Bank of Canada in effect on the last business day prior to the conversion to the Conversion Units.

**Non Waiver**

19. The extension of the time for making any payment which is due and payable hereunder at any time or times or the failure, delay or omission on the part of the Holder to exercise or enforce any rights or remedies of the Holder hereunder or under any instrument securing payment of the indebtedness evidenced by this Convertible Note shall not constitute a waiver of the right of the Holder to enforce such rights and remedies thereafter.

**Notices and Demands**

20. All notices and demands provided for herein shall be in writing and shall be given by prepaid first-class mail, by facsimile or other means of electronic communication or by delivery as hereafter provided. Notices and other communications shall be addressed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if to the Borrower or Covenantor, at 2114 Columbia Avenue, Rossland, B.C., V0G 1Y0, Attn: Howard Katkov; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if to the Holder, at 314 Loma Larga Drive, Solana Beach, CA, 92075;

or as each party may otherwise notify the other parties in writing. Any such notice or other communication, if mailed by prepaid first-class mail at any time other than during a general discontinuance of postal service due to strike, lock-out or otherwise, shall be deemed to have been received on the fourth business day after the post-marked date thereof, or if sent by facsimile or other means of electronic communication, shall be deemed to have been received on the day it was sent (provided that if it was sent on a day which is not a business day, then it shall be deemed delivered on the business day following the sending), or if delivered by hand shall be deemed to have been received at the time it is delivered to the applicable address if such date is a business day and such delivery was made before 4:00 p.m. (Rossland time) and otherwise on the next business day. Notice of change of address shall also be governed by this Section. In the event of a general discontinuance of postal service due to strike, lock-out or otherwise, notices or other communications shall be delivered by hand or sent by facsimile or other means of electronic communication and shall be deemed to have been received in accordance with this Section.

**Amendments**

21. No amendment, modification or waiver of any provision of this Convertible Note or consent to any departure by the Borrower or Covenantor from any provision of this Convertible Note is in any event effective unless it is in writing and signed by the Holder and then the amendment, modification, waiver or consent is effective only in the specific instance and for the specific purpose for which it is given.

**Applicable Law**

22. This Convertible Note shall be construed and enforced in accordance with, and the rights of the parties hereto shall be governed by, the laws of the Province of British Columbia and the laws of Canada applicable therein.

**Time of the Essence**

23. Time shall in all respects be of the essence of this Convertible Note.

**Waiver of Benefits**

24. The Borrower hereby waives the benefits of demand and presentment for payment, notice of nonpayment, protest and notice of protest of this Convertible Note.

**Compliance with Directions, etc.**

25. The Holder may at any time direct the Borrower to make any payment which is due and payable hereunder or to become due and payable hereunder to any person and the Borrower shall comply with such direction. The Borrower shall, upon the written demand of the Holder, confirm to any third party specified by the Holder that such direction has been received and that no prepayments have been made hereunder and that the Borrower has not been directed to make payments hereunder to any other person.

**Further Assurances**

26. The Borrower, Covenantor and Holder will use all reasonable efforts to give full effect to this Convertible Note and will execute and deliver all such further documents and instruments and do all such further acts and things as the other party reasonably requests to evidence, carry out and give full effect to the terms, conditions, intent and meaning set out herein.

IN WITNESS WHEREOF the Borrower and the Covenantor have executed this Convertible Note on the date first above written.

---

| | |
|:---|:---|
| **RMR ACQUISITION CORP.** | **RMR ACQUISITION CORP.** |
| **(Borrower)** | **(Borrower)** |
| Per: | /s/ Howard Katkov |
|  | Howard Katkov |
|  | Chief Executive Officer |
|  | I have authority to bind the Borrower |
| **RED MOUNTAIN VENTURES** **LIMITED** | **RED MOUNTAIN VENTURES** **LIMITED** |
| **PARTNERSHIP,** by its general partner, **Red Mountain Ventures G.P. Ltd.** | **PARTNERSHIP,** by its general partner, **Red Mountain Ventures G.P. Ltd.** |
| **(Covenantor)** | **(Covenantor)** |
| Per: | /s/ Howard Katkov |
|  | Howard Katkov |
|  | Chief Executive Officer |
|  | I have authority to bind the Covenantor |

---

**APPENDIX A TO**

**CONVERTIBLE NOTE**

**FROM RMR ACQUISITION CORP. AND**

**RED MOUNTAIN VENTURES LIMITED PARTNERSHIP**

**NOTICE OF CONVERSION**

---

| | |
|:---|:---|
| **To:** | RMR Acquisition Corp. (the "Borrower") |

---

---

| | |
|:---|:---|
| **And To:** | Red Mountain Ventures Limited Partnership (the "Covenantor") |

---

The undersigned is the registered holder (the "Holder") of the Convertible Note(s) evidenced by the certificate(s) attached to this Notice and hereby gives notice of conversion of $<u> </u> principal amount of the Convertible Note(s) in exchange for Class C Units of the Covenantor (the "Conversion Units") at a conversion price of CDN $8.86 per Conversion Unit. Any principal amount held in a currency other than Canadian currency and interest payable thereon which is converted to Conversion Units pursuant to this Notice of Conversion will be converted to Canadian dollars at the noon exchange rate posted by the Bank of Canada in effect on the last business day prior to the conversion to the Conversion Units.

The undersigned irrevocably directs that the Conversion Units be issued and delivered as follows:

---

| | | |
|:---|:---|:---|
| <br>**Name(s) in Full** | <br>**Address(es)**<br>**(Include Postal Codes)** | **Allocation of**<br>**Conversion Units**<br>**(expressed as a**<br>**Percentage)** |
|  |  | % |
|  |  | % |
|  |  | % |
|  | **Total** | 100% |

---

(Please print the full name in which the certificate(s) representing the Conversion Units is/are to be issued. If any certificates are to be issued to a person or persons other than the Holder, the Holder must pay to the Covenantor all eligible transfer taxes or other government charges).

Dated this<u> </u> day of<u> </u>,<u> </u>

---

| | |
|:---|:---|
| *Signature of Witness* | *Signature of Holder* |
| *Name of Witness* | *Name of Holder* |

---

**GRID PROMISSORY NOTE**

---

| | |
|:---|:---|
| CAD**$1,500,000.00** | January 8, 2020 |

---

**FOR VALUE RECEIVED,** the undersigned, **RMR ACQUISITION CORP.** (the "**Borrower**") hereby promises to pay to or to the order of **Jeff Busby, in trust for the Juice Trust dtd 1/24/96 Trust 3** (the "**Lender**"), on or before August 31, 2022 (the "**Maturity Date**"), the principal amount of **$1,500,000.00** Canadian dollars, or so much of such sum as will have been advanced and is then outstanding under this Promissory Note as evidenced by notations by the Lender from time to time on the grid attached hereto as Appendix A, (the "**Principal Balance**") together with interest as hereinafter provided for.

Set out below is a statement of the rights of the Lender and the conditions to which this grid promissory note (the "**Promissory Note**") is subject and to which the Lender, by the acceptance of this Promissory Note, agrees.

**Interest**

1. The Principal Balance, both before and after maturity, default or judgment and overdue interest both before and after default or judgment, shall bear interest from and including the issue date of this Promissory Note, at the rate of 6.0% per annum, calculated daily and compounded annually and payable commencing August 31, 2020 and thereafter semi-annually on each of February 28, 2021, August 31, 2021, February 28, 2022 and the Maturity Date.

**Payment of Principal Balance and Interest**

2. Unless previously prepaid in accordance with the terms hereof, the full amount of the Principal Balance together with all accrued and unpaid interest is due and payable on the Maturity Date and will be paid by sending a cheque by prepaid ordinary mail or by delivering other transfer of funds as may be agreed by the Lender, for such Principal Balance and interest payable to the order of the Lender and addressed to it unless the Lender otherwise directs. In the event of non-receipt of any cheque or funds for the Principal Balance and interest by the Lender, the Borrower will cause to be issued to the Lender a replacement cheque or replacement transfer of funds for like amount upon being furnished with such evidence of non-receipt as the Lender shall reasonably require and upon being indemnified to its satisfaction, acting reasonably.

**Prepayment of Principal Balance and Interest**

The Principal Balance together with all accrued and unpaid interest may be prepaid in part or in full by the Borrower prior to the Maturity Date, without any bonus or penalty whatsoever, upon prior written notice being provided by the Borrower to the Lender (the "**Prepayment Notice**"). The records of the Borrower shall be updated from time to time to reflect the Principal Balance as it is decreased in accordance with the terms hereof.

**Restrictions on Transfer**

3. This Promissory Note shall not be transferred or assigned without the Borrower's prior written consent, except such consent shall not be required if the Borrower is in default of either of its obligations under this Promissory Note.

**Application of Payments**

4. Any amount paid in satisfaction of the indebtedness evidenced by this Promissory Note shall be applied first in satisfaction of any accrued and unpaid interest which is due and payable, with the remaining portion of such amount applied in satisfaction of the Principal Balance owing, with any remaining amount applied in satisfaction of any accrued but unpaid interest which is not yet due and payable as at the date on which such amount is paid.

**Judgment Interest**

5. If the Lender obtains judgment on this Promissory Note or in respect of any amount owing hereunder, interest at the aforesaid rate, calculated monthly, not in advance, shall be payable on the amount which is outstanding under the said judgment from time to time.

**Currency**

6. All amounts payable under this Promissory Note shall be payable in the Canadian dollars.

**Non Waiver**

7. The extension of the time for making any payment which is due and payable hereunder at any time or times or the failure, delay or omission on the part of the Lender to exercise of enforce any rights or remedies of the Lender hereunder or under any instrument securing payment of the indebtedness evidenced by this Promissory Note shall not constitute a waiver of the right of the Lender to enforce such rights and remedies thereafter.

**Notices and Demands**

8. All notices and demands provided for herein shall be in writing and shall be given by prepaid first-class mail, by electronic mail or other means of electronic communication or by delivery as hereafter provided. Notices and other communications shall be addressed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if to the Borrower, at P.O. Box 670, 4300 Red Mountain Road Rossland, British Columbia, Canada VOG IYO, Attn: Howard Katkov, howard.katkov@redmountainventures.com; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if to the Lender, at 314 Loma Larga Drive, Solana Beach, CA, 92075, Attn: Jeff Busby, busbyjeff@hotmail.com,

or as each party may otherwise notify the other parties in writing. Any such notice or other communication, if mailed by prepaid first-class mail at any time other than during a general discontinuance of postal service due to strike, lock-out or otherwise, shall be deemed to have been received on the fourth business day after the post-marked date thereof, or if sent by electronic mail or other means of electronic communication, shall be deemed to have been received on the day it was sent (provided that if it was sent on a day which is not a business day, then it shall be deemed delivered on the business day following the sending), or if delivered by hand shall be deemed to have been received at the time it is delivered to the applicable address if such date is a business day and such delivery was made before 4:00 p.m. (Rossland time) and otherwise on the next business day. Notice of change of address shall also be governed by this Section. In the event of a general discontinuance of postal service due to strike, lock-out or otherwise, notices or other communications shall be delivered by hand or sent by electronic mail or other means of electronic communication and shall be deemed to have been received in accordance with this Section.

**Amendments**

9. No amendment, modification or waiver of any provision of this Promissory Note or consent to any departure by the Borrower from any provision of this Promissory Note is in any event effective unless it is in writing and signed by the Lender and then the amendment, modification, waiver or consent is effective only in the specific instance and for the specific purpose for which it is given. The Borrower authorizes the Lender to record on the grid attached hereto (and, when such grid has been filled, on any reproduction of the form of the grid that may be prepared by Lender and attached to this Promissory Note) all advances, repayments, prepayments and the unpaid principal amount from time to time. The Borrower agrees that in the absence of manifest error the record kept by the Lender on such grid shall be conclusive evidence of the matters recorded, provided that the failure of the Lender to record or correctly record any amount or date shall not affect the obligation of the Borrower to pay the outstanding principal amount and accrued interest in accordance with this Promissory Note.

**Applicable Law**

10. This Promissory Note shall be construed and enforced in accordance with, and the rights of the parties hereto shall be governed by, the laws of the Province of British Columbia and the laws of Canada applicable therein.

**Time of the Essence**

11. Time shall in all respects be of the essence of this Promissory Note.

**Waiver of Benefits**

12. The Borrower hereby waives the benefits of demand and presentment for payment, notice of non-payment, protest and notice of protest of this Promissory Note.

**Compliance with Directions, etc.**

13. The Lender may at any time direct the Borrower to make any payment which is due and payable hereunder or to become due and payable hereunder to any person and the Borrower shall comply with such direction. The Borrower shall, upon the written demand of the Lender, confirm to any third party specified by the Lender that such direction has been received and that no prepayments have been made hereunder and that the Borrower has not been directed to make payments hereunder to any other person.

**Further Assurances**

14. The Borrower and Lender will use all reasonable efforts to give full effect to this Promissory Note and will execute and deliver all such further documents and instruments and do all such further acts and things as the other party reasonably requests to evidence, carry out and give full effect to the terms, conditions, intent and meaning set out herein.

IN WITNESS WHEREOF the Borrower has executed this Promissory Note on the date first above written.

**RMR ACQUISITION CORP.**

**(Borrower)**

---

| | |
|:---|:---|
| Per: | /s/ Howard Katkov |
|  | Howard Katkov |
|  | Chief Executive Officer |
|  | I have authority to bind the Borrower |

---

**APPENDIX A TO<br> PROMISSORY NOTE<br> FROM RMR ACQUISITION CORP.<br> TO JUICE TRUST DTD 1/24/96 TRUST 3**

**<u>GRID</u>**

Advances and Payments

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Date** | **Amount of <br> Advance** | **Amount of <br> Principal <br> Repaid** | **Unpaid <br> Principal <br> Balance** | **Notation Made by** |
| January 8, 2020 | $500000.00 |  |  |  |
| August 25, 2020 | $511754.12 |  |  |  |
| October 14, 2020 | $488245.88 |  |  |  |

---

**GRID PROMISSORY NOTE**

---

| | |
|:---|:---|
| CAD**$3,011,754.12** | October 14, 2020 |

---

**FOR VALUE RECEIVED,** the undersigned, **RMR ACQUISITION CORP.** (the "**Borrower**") hereby promises to pay to or to the order of **Jeff Busby, in trust for the Juice Trust dtd 1/24/96 Trust 3** (the "**Lender**"), on or before August 31, 2022 (the "**Maturity Date**"), the principal amount of **$3,011,754.12** Canadian dollars, or so much of such sum as will have been advanced and is then outstanding under this Promissory Note as evidenced by notations by the Lender from time to time on the grid attached hereto as Appendix A, (the "**Principal Balance**") together with interest as hereinafter provided for.

Set out below is a statement of the rights of the Lender and the conditions to which this grid promissory note (the "**Promissory Note**") is subject and to which the Lender, by the acceptance of this Promissory Note, agrees.

**Interest**

1. The Principal Balance, both before and after maturity, default or judgment and overdue interest both before and after default or judgment, shall bear interest from and including the issue date of this Promissory Note, at the rate of 6.0% per annum, calculated daily and compounded annually and payable commencing February 28, 2021 and thereafter semi-annually on each of August 31, 2021, February 28, 2022 and the Maturity Date.

**Payment of Principal Balance and Interest**

2. Unless previously prepaid in accordance with the terms hereof, the full amount of the Principal Balance together with all accrued and unpaid interest is due and payable on the Maturity Date and will be paid by sending a cheque by prepaid ordinary mail or by delivering other transfer of funds as may be agreed by the Lender, for such Principal Balance and interest payable to the order of the Lender and addressed to it unless the Lender otherwise directs. In the event of non-receipt of any cheque or funds for the Principal Balance and interest by the Lender, the Borrower will cause to be issued to the Lender a replacement cheque or replacement transfer of funds for like amount upon being furnished with such evidence of non-receipt as the Lender shall reasonably require and upon being indemnified to its satisfaction, acting reasonably.

**Prepayment of Principal Balance and Interest**

The Principal Balance together with all accrued and unpaid interest may be prepaid in part or in full by the Borrower prior to the Maturity Date, without any bonus or penalty whatsoever, upon prior written notice being provided by the Borrower to the Lender (the **"Prepayment Notice").** The records of the Borrower shall be updated from time to time to reflect the Principal Balance as it is decreased in accordance with the terms hereof.

**Restrictions on Transfer**

3. This Promissory Note shall not be transferred or assigned without the Borrower's prior written consent, except such consent shall not be required if the Borrower is in default of either of its obligations under this Promissory Note.

**Application of Payments**

4. Any amount paid in satisfaction of the indebtedness evidenced by this Promissory Note shall be applied first in satisfaction of any accrued and unpaid interest which is due and payable, with the remaining portion of such amount applied in satisfaction of the Principal Balance owing, with any remaining amount applied in satisfaction of any accrued but unpaid interest which is not yet due and payable as at the date on which such amount is paid.

**Judgment Interest**

5. If the Lender obtains judgment on this Promissory Note or in respect of any amount owing hereunder, interest at the aforesaid rate, calculated monthly, not in advance, shall be payable on the amount which is outstanding under the said judgment from time to time.

**Currency**

6. All amounts payable under this Promissory Note shall be payable in the Canadian dollars.

**Non Waiver**

7. The extension of the time for making any payment which is due and payable hereunder at any time or times or the failure, delay or omission on the part of the Lender to exercise or enforce any rights or remedies of the Lender hereunder or under any instrument securing payment of the indebtedness evidenced by this Promissory Note shall not constitute a waiver of the right of the Lender to enforce such rights and remedies thereafter.

**Notices and Demands**

8. All notices and demands provided for herein shall be in writing and shall be given by prepaid first-class mail, by electronic mail or other means of electronic communication or by delivery as hereafter provided. Notices and other communications shall be addressed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if to the Borrower, at P.O. Box 670, 4300 Red Mountain Road Rossland, British Columbia, Canada VOG 1YO, Attn; Howard Katkov, howard.katkov@redmountainventures.com; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if to the Lender, at 314 Loma Larga Drive, Solana Beach, CA, 92075, Attn: Jeff Busby, busbyjeff@hotmailcom,

or as each party may otherwise notify the other parties in writing. Any such notice or other communication, if mailed by prepaid first-class mail at any time other than during a general discontinuance of postal service due to strike, lock-out or otherwise, shall be deemed to have been received on the fourth business day after the post-marked date thereof, or if sent by electronic mail or other means of electronic communication, shall be deemed to have been received on the day it was sent (provided that if it was sent on a day which is not a business day, then it shall be deemed delivered on the business day following the sending), or if delivered by hand shall be deemed to have been received at the time it is delivered to the applicable address if such date is a business day and such delivery was made before 4:00 p.m. (Rossland time) and otherwise on the next business day. Notice of change of address shall also be governed by this Section. In the event of a general discontinuance of postal service due to strike, lock-out or otherwise, notices or other communications shall be delivered by hand or sent by electronic mail or other means of electronic communication and shall be deemed to have been received in accordance with this Section.

**Amendments**

9. No amendment, modification or waiver of any provision of this Promissory Note or consent to any departure by the Borrower from any provision of this Promissory Note is in any event effective unless it is in writing and signed by the Lender and then the amendment, modification, waiver or consent is effective only in the specific instance and for the specific purpose for which it is given. The Borrower authorizes the Lender to record on the grid attached hereto (and, when such grid has been filled, on any reproduction of the form of the grid that may be prepared by Lender and attached to this Promissory Note) all advances, repayments, prepayments and the unpaid principal amount from time to time. The Borrower agrees that in the absence of manifest error the record kept by the Lender on such grid shall be conclusive evidence of the matters recorded, provided that the failure of the Lender to record or correctly record any amount or date shall not affect the obligation of the Borrower to pay the outstanding principal amount and accrued interest in accordance with this Promissory Note.

**Applicable Law**

10. This Promissory Note shall be construed and enforced in accordance with, and the rights of the parties hereto shall be governed by, the laws of the Province of British Columbia and the laws of Canada applicable therein.

**Time of the Essence**

11. Time shall in all respects be of the essence of this Promissory Note.

**Waiver of Benefits**

12. The Borrower hereby waives the benefits of demand and presentment for payment, notice of non-payment, protest and notice of protest of this Promissory Note.

**Compliance with Directions, etc.**

13. The Lender may at any time direct the Borrower to make any payment which is due and payable hereunder or to become due and payable hereunder to any person and the Borrower shall comply with such direction. The Borrower shall, upon the written demand of the Lender, confirm to any third party specified by the Lender that such direction has been received and that no prepayments have been made hereunder and that the Borrower has not been directed to make payments hereunder to any other person.

**Further Assurances**

14. The Borrower and Lender will use all reasonable efforts to give full effect to this Promissory Note and will execute and deliver all such further documents and instruments do all such further acts and things as the other party reasonably requests to evidence, carry out and give full effect to the terms, conditions, intent and meaning set out herein.

IN WITNESS WHEREOF the Borrower has executed this Promissory Note on the date first above written.

---

| | |
|:---|:---|
| **RMR ACQUISITION CORP.** | **RMR ACQUISITION CORP.** |
| **(Borrower)** | **(Borrower)** |
| Per: | /s/ Howard Katkov |
|  | Howard Katkov |
|  | Chief Executive Officer |
|  | I have authority to bind the Borrower |

---

**APPENDIX A TO <br> PROMISSORY NOTE** 

**FROM RMR ACQUISITION CORP.** 

**TO JUICE TRUST DTD 1/24/96 TRUST 3**

**<u>GRID</u>**

Advances and Payments

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Date** | **Amount of <br> Advance** | **Amount of <br> Principal <br> Repaid** | **Unpaid <br> Principal <br> Balance** | **Notation Made by** |
| October 14, 2020 | $11754.12 |  |  |  |
| November 24, 2020 | $1000000.00 |  |  |  |
| February 3, 2021 | $500000.00 |  |  |  |
| March 4, 2021 | $500000.00 |  |  |  |

---

**GRID PROMISSORY NOTE**

---

| | |
|:---|:---|
| CAD**$111,570.51** | January 27, 2022 |

---

**FOR VALUE RECEIVED**, the undersigned, **RED DEVELOPMENT COMPANY LTD**. (the "**Borrower**") hereby promises to pay to or to the order of **Jeff Busby, in trust for the Juice Trust dtd 1/24/96 Trust 3 (the "Lender"),** on or before November 23, 2025 (the **"Maturity Date"),** the principal amount of **$111,570.51** Canadian dollars, or so much of such sum as will have been advanced and is then outstanding under this Promissory Note as evidenced by notations by the Lender from time to time on the grid attached hereto as Appendix A, (the **"Principal Balance")** together with interest as hereinafter provided for.

Set out below is a statement of the rights of the Lender and the conditions to which this grid promissory note (the **"Promissory Note")** is subject and to which the Lender, by the acceptance of this Promissory Note, agrees.

**Interest**

1. The Principal Balance, both before and after maturity, default or judgment and overdue interest both before and after default or judgment, shall bear interest from and including the issue date of this Promissory Note, at the rate of 6.0% per annum, calculated daily and compounded annually and payable commencing April 30, 2023 and thereafter annually on each of April 30, 2024 and April 30, 2025 and the remainder on the Maturity Date.

**Payment of Principal Balance and Interest**

2. Unless previously prepaid in accordance with the terms hereof, the full amount of the Principal Balance together with all accrued and unpaid interest is due and payable on the Maturity Date and will be paid by sending a cheque by prepaid ordinary mail or by delivering other transfer of funds as may be agreed by the Lender, for such Principal Balance and interest payable to the order of the Lender and addressed to it unless the Lender otherwise directs. In the event of non-receipt of any cheque or funds for the Principal Balance and interest by the Lender, the Borrower will cause to be issued to the Lender a replacement cheque or replacement transfer of funds for like amount upon being furnished with such evidence of non-receipt as the Lender shall reasonably require and upon being indemnified to its satisfaction, acting reasonably.

**Prepayment of Principal Balance and Interest**

The Principal Balance together with all accrued and unpaid interest may be prepaid in part or in full by the Borrower prior to the Maturity Date, without any bonus or penalty whatsoever, upon prior written notice being provided by the Borrower to the Lender (the **"Prepayment Notice").** The records of the Borrower shall be updated from time to time to reflect the Principal Balance as it is decreased in accordance with the terms hereof.

**Restrictions on Transfer**

3. This Promissory Note shall not be transferred or assigned without the Borrower's prior written consent, except such consent shall not be required if the Borrower is in default of either of its obligations under this Promissory Note.

**Application of Payments**

4. Any amount paid in satisfaction of the indebtedness evidenced by this Promissory Note shall be applied first in satisfaction of any accrued and unpaid interest which is due and payable, with the remaining portion of such amount applied in satisfaction of the Principal Balance owing, with any remaining amount applied in satisfaction of any accrued but unpaid interest which is not yet due and payable as at the date on which such amount is paid.

**Judgment Interest**

**5.** If the Lender obtains judgment on this Promissory Note or in respect of any amount owing hereunder, interest at the aforesaid rate, calculated monthly, not in advance, shall be payable on the amount which is outstanding under the said judgment from time to time.

**Currency**

**6.** All amounts payable under this Promissory Note shall be payable in the Canadian dollars.

**Non Waiver**

7. The extension of the time for making any payment which is due and payable hereunder at any time or times or the failure, delay or omission on the part of the Lender to exercise or enforce any rights or remedies of the Lender hereunder or under any instrument securing payment of the indebtedness evidenced by this Promissory Note shall not constitute a waiver of the right of the Lender to enforce such rights and remedies thereafter.

**Notices and Demands**

**8.** All notices and demands provided for herein shall be in writing and shall be given by prepaid first-class mail, by electronic mail or other means of electronic communication or by delivery as hereafter provided. Notices and other communications shall be addressed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) ifto the Borrower, at P.O. Box 670, 4300 Red Mountain Road Rossland, British Columbia, Canada VOG 1YO, Attn: Howard Katkov, howard.katkov@redmountainventures.com; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if to the Lender, at 314 Loma Larga Drive, Solana Beach, CA, 92075, Attn: Jeff Busby, busbyjeff@hotmail.com,

or as each party may otherwise notify the other parties in writing. Any such notice or other communication, if mailed by prepaid first-class mail at any time other than during a general discontinuance of postal service due to strike, lock-out or otherwise, shall be deemed to have been received on the fourth business day after the post-marked date thereof, or if sent by electronic mail or other means of electronic communication, shall be deemed to have been received on the day it was sent (provided that if it was sent on a day which is not a business day, then it shall be deemed delivered on the business day following the sending), or if delivered by hand shall be deemed to have been received at the time it is delivered to the applicable address if such date is a business day and such delivery was made before 4:00 p.m. (Rossland time) and otherwise on the next business day. Notice of change of address shall also be governed by this Section. In the event of a general discontinuance of postal service due to strike, lock-out or otherwise, notices or other communications shall be delivered by hand or sent by electronic mail or other means of electronic communication and shall be deemed to have been received in accordance with this Section.

**Amendments**

**9.** No amendment, modification or waiver of any provision of this Promissory Note or consent to any departure by the Borrower from any provision of this Promissory Note is in any event effective unless it is in writing and signed by the Lender and then the amendment, modification, waiver or consent is effective only in the specific instance and for the specific purpose for which it is given. The Borrower authorizes the Lender to record on the grid attached hereto (and, when such grid has been filled, on any reproduction of the form of the grid that may be prepared by Lender and attached to this Promissory Note) all advances, repayments, prepayments and the unpaid principal amount from time to time. The Borrower agrees that in the absence of manifest error the record kept by the Lender on such grid shall be conclusive evidence of the matters recorded, provided that the failure of the Lender to record or correctly record any amount or date shall not affect the obligation of the Borrower to pay the outstanding principal amount and accrued interest in accordance with this Promissory Note.

**Applicable Law**

10. This Promissory Note shall be construed and enforced in accordance with, and the rights of the parties hereto shall be governed by, the laws of the Province of British Columbia and the laws of Canada applicable therein.

**Time of the Essence**

**11.** Time shall in all respects be of the essence of this Promissory Note.

**Waiver of Benefits**

12. The Borrower hereby waives the benefits of demand and presentment for payment, notice of non-payment, protest and notice of protest of this Promissory Note.

**Compliance with Directions, etc.**

13. The Lender may at any time direct the Borrower to make any payment which is due and payable hereunder or to become due and payable hereunder to any person and the Borrower shall comply with such direction. The Borrower shall, upon the written demand of the Lender, confirm to any third party specified by the Lender that such direction has been received and that no prepayments have been made hereunder and that the Borrower has not been directed to make payments hereunder to any other person.

**Further Assurances**

14. The Borrower and Lender will use all reasonable efforts to give full effect to this Promissory Note and will execute and deliver all such further documents and instruments and do all such further acts and things as the other party reasonably requests to evidence, carry out and give full effect to the terms, conditions, intent and meaning set out herein.

IN WITNESS WHEREOF the Borrower has executed this Promissory Note on the date first above written.

---

| | |
|:---|:---|
| **RED DEVELOPMENT COMPANY LTD.<br> (Borrower)** | **RED DEVELOPMENT COMPANY LTD.<br> (Borrower)** |
| Per: | /s/ Howard Katkov |
|  | Howard Katkov |
|  | Chief Executive Officer |
|  | I have authority to bind the Borrower |

---

**APPENDIX A TO<br> PROMISSORY NOTE<br> FROM RED DEVELOPMENT COMPANY LTD.<br> TO JUICE TRUST DTD 1/24/96 TRUST 3**

**<u>GRID</u>**

Advances and Payments

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Date** | **Amount of <br> Advance** | **Amount of <br> Principal <br> Repaid** | **Unpaid <br> Principal <br> Balance** | **Notation Made by** |
| January 27, 2022 | $25665.16 |  |  |  |
| February 14, 2022 | $1421.28 |  |  |  |
| May 13, 2022 | $15253.46 |  |  |  |
| May 30, 2022 | $11786.91 |  |  |  |
| November 23, 2022 | $57443.70 |  |  |  |
| TOTAL: | $111570.51 |  |  |  |

---

**GRID PROMISSORY NOTE**

---

| | |
|:---|:---|
| CAD**$277,607.83** | November 23, 2022 |

---

**FOR VALUE RECEIVED**, the undersigned, **RMR ACQUISITION CORP**. (the "**Borrower**") hereby promises to pay to or to the order of Jeff **Busby, in trust for the Juice Trust dtd 1/24/96 Trust 3** (the "**Lender**"), on or before November 23, 2025 (the **"Maturity Date"),** the principal amount of **$277,607.83** Canadian dollars, or so much of such sum as will have been advanced and is then outstanding under this Promissory Note as evidenced by notations by the Lender from time to time on the grid attached hereto as Appendix A, (the **"Principal Balance")** together with interest as hereinafter provided for.

Set out below is a statement of the rights of the Lender and the conditions to which this grid promissory note (the "**Promissory Note**") is subject and to which the Lender, by the acceptance of this Promissory Note, agrees.

**Interest**

1. The Principal Balance, both before and after maturity, default or judgment and overdue interest both before and after default or judgment, shall bear interest from and including the issue date of this Promissory Note, at the rate of 6.0% per annum, calculated daily and compounded annually and payable commencing April 30, 2023 and thereafter annually on each of April 30, 2024 and April 30, 2025 and the remainder on the Maturity Date.

**Payment of Principal Balance and Interest**

2. Unless previously prepaid in accordance with the terms hereof, the full amount of the Principal Balance together with all accrued and unpaid interest is due and payable on the Maturity Date and will be paid by sending a cheque by prepaid ordinary mail or by delivering other transfer of funds as may be agreed by the Lender, for such Principal Balance and interest payable to the order of the Lender and addressed to it unless the Lender otherwise directs. In the event of non-receipt of any cheque or funds for the Principal Balance and interest by the Lender, the Borrower will cause to be issued to the Lender a replacement cheque or replacement transfer of funds for like amount upon being furnished with such evidence of non-receipt as the Lender shall reasonably require and upon being indemnified to its satisfaction, acting reasonably.

**Prepayment of Principal Balance and Interest**

The Principal Balance together with all accrued and unpaid interest may be prepaid in part or in full by the Borrower prior to the Maturity Date, without any bonus or penalty whatsoever, upon prior written notice being provided by the Borrower to the Lender (the **"Prepayment Notice").** The records of the Borrower shall be updated from time to time to reflect the Principal Balance as it is decreased in accordance with the terms hereof.

**Restrictions on Transfer**

3. This Promissory Note shall not be transferred or assigned without the Borrower's prior written consent, except such consent shall not be required if the Borrower is in default of either of its obligations under this Promissory Note.

**Application of Payments**

4. Any amount paid in satisfaction of the indebtedness evidenced by this Promissory Note shall be applied first in satisfaction of any accrued and unpaid interest which is due and payable, with the remaining portion of such amount applied in satisfaction of the Principal Balance owing, with any remaining amount applied in satisfaction of any accrued but unpaid interest which is not yet due and payable as at the date on which such amount is paid.

**Judgment Interest**

5. If the Lender obtains judgment on this Promissory Note or in respect of any amount owing hereunder, interest at the aforesaid rate, calculated monthly, not in advance, shall ***be*** payable on the amount which is outstanding under the said judgment from time to time.

**Currency**

6. All amounts payable under this Promissory Note shall be payable in the Canadian dollars.

**Non Waiver**

7. The extension of the time for making any payment which is due and payable hereunder at any time or times or the failure, delay or omission on the part of the Lender to exercise or enforce any rights or remedies of the Lender hereunder or under any instrument securing payment of the indebtedness evidenced by this Promissory Note shall not constitute a waiver of the right of the Lender to enforce such rights and remedies thereafter.

**Notices and Demands**

8. Alt notices and demands provided for herein shall be in writing and shall be given by prepaid first-class mail, by electronic mail or other means of electronic communication or by delivery as hereafter provided. Notices and other communications shall be addressed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if to the Borrower, at P.O. Box 670, 4300 Red Mountain Road Rossland, British Columbia, Canada VOG 1YO, Attn: Howard Katkov, howard.katkov@redmountainventures.com; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if to the Lender, at 314 Loma Larga Drive, Solana Beach, CA, 92075, Attu: Jeff Busby, busbyjeff@hotmail.com,

or as each party may otherwise notify the other parties in writing. Any such notice or other communication, if mailed by prepaid first-class mail at any time other than during a general discontinuance of postal service due to strike, lock-out or otherwise, shall be deemed to have been received on the fourth business day after the post-marked date thereof, or if sent by electronic mail or other means of electronic communication, shall be deemed to have been received on the day it was sent (provided that if it was sent on a day which is not a business day, then it shall be deemed delivered on the business day following the sending), or if delivered by hand shall be deemed to have been received at the time it is delivered to the applicable address if such date is a business day and such delivery was made before 4:00 p.m. (Rossland time) and otherwise on the next business day. Notice of change of address shall also be governed by this Section. In the event of a general discontinuance of postal service due to strike, lock-out or otherwise, notices or other communications shall be delivered by hand or sent by electronic mail or other means of electronic communication and shall be deemed to have been received in accordance with this Section.

**Amendments**

9. No amendment, modification or waiver of any provision of this Promissory Note or consent to any departure by the Borrower from any provision of this Promissory Note is in any event effective unless it is in writing and signed by the Lender and then the amendment, modification, waiver or consent is effective only in the specific instance and for the specific purpose for which it is given. The Borrower authorizes the Lender to record on the grid attached hereto (and, when such grid has been filled, on any reproduction of the form of the grid that may be prepared by Lender and attached to this Promissory Note) all advances, repayments, prepayments and the unpaid principal amount from time to time. The Borrower agrees that in the absence of manifest error the record kept by the Lender on such grid shall be conclusive evidence of the matters recorded, provided that the failure of the Lender to record or correctly record any amount or date shall not affect the obligation of the Borrower to pay the outstanding principal amount and accrued interest in accordance with this Promissory Note.

**Applicable Law**

10. This Promissory Note shall be construed and enforced in accordance with, and the rights of the parties hereto shall be governed by, the laws of the Province of British Columbia and the laws of Canada applicable therein.

**Time of the Essence**

11. Time shall in all respects be of the essence of this Promissory Note.

**Waiver of Benefits**

12. The Borrower hereby waives the benefits of demand and presentment for payment, notice of non-payment, protest and notice of protest of this Promissory Note.

**Compliance with Directions, etc.**

13. The Lender may at any time direct the Borrower to make any payment which is due and payable hereunder or to become due and payable hereunder to any person and the Borrower shall comply with such direction. The Borrower shall, upon the written demand of the Lender, confirm to any third party specified by the Lender that such direction has been received and that no prepayments have been made hereunder and that the Borrower has not been directed to make payments hereunder to any other person.

**Further Assurances**

14. The Borrower and Lender will use all reasonable efforts to give full effect to this Promissory Note and will execute and deliver all such further documents and instruments and do all such further acts and things as the other party reasonably requests to evidence, carry out and give full effect to the terms, conditions, intent and meaning set out herein.

IN WITNESS WHEREOF the Borrower has executed this Promissory Note on the date first above written.

---

| | |
|:---|:---|
| **RMR ACQUISITION CORP.<br> (Borrower)** | **RMR ACQUISITION CORP.<br> (Borrower)** |
| Per: | /s/ Howard Katkov |
|  | Howard Katkov |
|  | Chief Executive Officer |
|  | I have authority to bind the Borrower |

---

**APPENDIX A TO<br> PROMISSORY NOTE<br> FROM RMR ACQUISITION CORP.<br> TO JUICE TRUST DTD 1/24/96 TRUST 3**

**<u>GRID</u>**

Advances and Payments

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Date** | **Amount of <br> Advance** | **Amount of <br> Principal <br> Repaid** | **Unpaid <br> Principal <br> Balance** | **Notation Made by** |
| November 23, 2022 | $277607.83 |  |  |  |
| TOTAL: | $277607.83 |  |  |  |

---

**GRID PROMISSORY NOTE**

---

| | |
|:---|:---|
| CAD**$3,500,000.00** | February 12, 2024 |

---

**FOR VALUE RECEIVED,** the undersigned, **HANNAH CREEK LIMITED PARTNERSHIP** (the "**Borrower**") hereby promises to pay to or to the order of **Jeff Busby, in trust for the Juice Trust dtd 1/24/96 Trust 3** (the **"Lender"),** on or before the First Distribution Date (as defined below) (the "**Maturity Date**"), the principal amount of **$3,500,000.00** Canadian dollars, or so much of such sum as will have been advanced and is then outstanding under this Promissory Note as evidenced by notations by the Lender from time to time on the grid attached hereto as Appendix A, (the **"Principal Balance")** together with interest as hereinafter provided for.

Set out below is a statement of the rights of the Lender and the conditions to which this grid promissory note (the "**Promissory Note**") is subject and to which the Lender, by the acceptance of this Promissory Note, agrees.

**Interest**

1. The Principal Balance, both before and after maturity, default or judgment and overdue interest both before and after default or judgment, shall bear interest from and including the issue date of this Promissory Note, at the rate of 10.0% per annum, calculated daily and compounded annually on January 31 of each year and payable on the Maturity Date.

**Use of Funds**

2. The Borrower will use the Principal Balance for payment of construction costs for the construction of a six story, wood frame, 102 unit residential condominium building marketed as "The Crescent" on real property located at the base of Red Mountain Ski Resort in Rossland, British Columbia legally described as Parcel Identifier 026-522-144, Lot 3 Township 28, Kootenay District Plan NEP79845 (the **"Project").**

**Priority**

3. No repayment shall be made by the Borrower of the Principal Balance or any accrued interest until the Borrower has made full repayment of the construction financing made available to the Borrower by Kootenay Savings Credit Union in respect of the Project. No distribution will be made to the limited partners of the Borrower in respect of the net sales proceeds of the Project (the **"First Distribution Date")** until the entire Principal Balance and all accrued and unpaid interest has been repaid to the Lender.

**Payment of Principal Balance and Interest**

4. Unless previously prepaid in accordance with the terms hereof, the full amount of the Principal Balance together with all accrued and unpaid interest is due and payable on the Maturity Date and will be paid by sending a cheque by prepaid ordinary mail or by delivering other transfer of funds as may be agreed by the Lender, for such Principal Balance and interest payable to the order of the Lender and addressed to it unless the Lender otherwise directs. In the event of non-receipt of any cheque or funds for the Principal Balance and interest by the Lender, the Borrower will cause to be issued to the Lender a replacement cheque or replacement transfer of funds for like amount upon being furnished with such evidence of non-receipt as the Lender shall reasonably require and upon being indemnified to its satisfaction, acting reasonably.

**Prepayment of Principal Balance and Interest**

5. Subject to Section 3, the Principal Balance together with all accrued and unpaid interest may be prepaid in part or in full by the Borrower prior to the Maturity Date, without any bonus or penalty whatsoever, upon prior written notice being provided by the Borrower to the Lender (the **"Prepayment Notice").** The records of the Borrower shall be updated from time to time to reflect the Principal Balance as it is decreased in accordance with the terms hereof.

**Restrictions on Transfer**

6. This Promissory Note shall not be transferred or assigned without the Borrower's prior written consent, except such consent shall not be required if the Borrower is in default of either of its obligations under this Promissory Note.

**Application of Payments**

7. Any amount paid in satisfaction of the indebtedness evidenced by this Promissory Note shall be applied first in satisfaction of any accrued and unpaid interest which is due and payable, with the remaining portion of such amount applied in satisfaction of the Principal Balance owing, with any remaining amount applied in satisfaction of any accrued but unpaid interest which is not yet due and payable as at the date on which such amount is paid.

**Judgment Interest**

8. If the Lender obtains judgment on this Promissory Note or in respect of any amount owing hereunder, interest at the aforesaid rate, calculated monthly, not in advance, shall be payable on the amount which is outstanding under the said judgment from time to time.

**Currency**

9. All amounts payable under this Promissory Note shall be payable in the Canadian dollars.

**Non Waiver**

10. The extension of the time for making any payment which is due and payable hereunder at any time or times or the failure, delay or omission on the part of the Lender to exercise or enforce any rights or remedies of the Lender hereunder or under any instrument securing payment of the indebtedness evidenced by this Promissory Note shall not constitute a waiver of the right of the Lender to enforce such rights and remedies thereafter.

**Notices and Demands**

11. All notices and demands provided for herein shall be in writing and shall be given by prepaid first-class mail, by electronic mail or other means of electronic communication or by delivery as hereafter provided. Notices and other communications shall be addressed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if to the Borrower, at P.O. Box 670, 4300 Red Mountain Road Rossland, British Columbia, Canada VOG 1YO, Attn: Howard Katkov, howard.katkov@redmountainventures.com; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if to the Lender, at 314 Loma Larga Drive, Solana Beach, CA, 92075, Attn: Jeff Busby, busbyjeff@hotmail.com,

or as each party may otherwise notify the other parties in writing. Any such notice or other communication, if mailed by prepaid first-class mail at any time other than during a general discontinuance of postal service due to strike, lockout or otherwise, shall be deemed to have been received on the fourth business day after the post-marked date thereof, or if sent by electronic mail or other means of electronic communication, shall be deemed to have been received on the day it was sent (provided that if it was sent on a day which is not a business day, then it shall be deemed delivered on the business day following the sending), or if delivered by hand shall be deemed to have been received at the time it is delivered to the applicable address if such date is a business day and such delivery was made before 4:00 p.m. (Rossland time) and otherwise on the next business day. Notice of change of address shall also be governed by this Section. In the event of a general discontinuance of postal service due to strike, lock-out or otherwise, notices or other communications shall be delivered by hand or sent by electronic mail or other means of electronic communication and shall be deemed to have been received in accordance with this Section.

**Amendments**

12. No amendment, modification or waiver of any provision of this Promissory Note or consent to any departure by the Borrower from any provision of this Promissory Note is in any event effective unless it is in writing and signed by the Lender and then the amendment, modification, waiver or consent is effective only in the specific instance and for the specific purpose for which it is given. The Borrower authorizes the Lender to record on the grid attached hereto (and, when such grid has been filled, on any reproduction of the form of the grid that may be prepared by Lender and attached to this Promissory Note) all advances, repayments, prepayments and the unpaid principal amount from time to time. The Borrower agrees that in the absence of manifest error the record kept by the Lender on such grid shall be conclusive evidence of the matters recorded, provided that the failure of the Lender to record or correctly record any amount or date shall not affect the obligation of the Borrower to pay the outstanding principal amount and accrued interest in accordance with this Promissory Note.

**Applicable Law**

13. This Promissory Note shall be construed and enforced in accordance with, and the rights of the parties hereto shall be governed by, the laws of the Province of British Columbia and the laws of Canada applicable therein.

**Time of the Essence**

14. Time shall in all respects be of the essence of this Promissory Note.

**Waiver of Benefits**

15. The Borrower hereby waives the benefits of demand and presentment for payment, notice of non-payment, protest and notice of protest of this Promissory Note.

**Compliance with Directions, etc.**

16. The Lender may at any time direct the Borrower to make any payment which is due and payable hereunder or to become due and payable hereunder to any person and the Borrower shall comply with such direction. The Borrower shall, upon the written demand of the Lender, confirm to any third party specified by the Lender that such direction has been received and that no prepayments have been made hereunder and that the Borrower has not been directed to make payments hereunder **to any** other person.

**Further Assurances**

**17.** The Borrower and Lender will use all reasonable efforts to give full effect to this Promissory Note and will execute and deliver all such further documents and instruments and do all such further acts and things as the other party reasonably requests to evidence, carry out and give full effect to the terms, conditions, intent and meaning set out herein.

IN WITNESS WHEREOF the Borrower has executed this Promissory Note on the date first above written.

---

| | |
|:---|:---|
| **HANNAH CREEK LIMITED PARTNERSHIP,**<br> by its general partner,**<br> Red Development Company Ltd.<br> (Borrower)** | **HANNAH CREEK LIMITED PARTNERSHIP,**<br> by its general partner,**<br> Red Development Company Ltd.<br> (Borrower)** |
| Per: | /s/ Howard Katkov |
|  | Howard Katkov |
|  | Chief Executive Officer |
|  | I have authority to bind the Borrower |

---

ACKNOWLEDGED AND AGREED to by the Lender effective the date first above written.

---

| |
|:---|
| /s/ Jeff Busby |
| **Jeff Busby, in trust for the Juice Trust** |
| **dtd 1/24/96 Trust 3** |
| **(Lender)** |

---

**APPENDIX A TO<br> PROMISSORY NOTE<br> FROM HANNAH CREEK LIMITED PARTNERSHIP<br> TO JUICE TRUST DTD 1/24/96 TRUST 3**

**<u>GRID</u>**

Advances and Payments

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Date** | **Amount of <br> Advance** | **Amount of <br> Principal <br> Repaid** | **Unpaid <br> Principal <br> Balance** | **Notation Made by** |
| TOTAL: | | | | |

---

**GRID PROMISSORY NOTE**

---

| | |
|:---|:---|
| CAD**$2,777,500.00** | May 12, 2025 |

---

**FOR VALUE RECEIVED,** the undersigned, **RMR ACQUISITION CORP.** (the **"Borrower")** hereby promises to pay to or to the order of **Jeff Busby, in trust for the Juice Trust dtd 1/24/96 Trust 3** (the **"Lender"),** on or before the First Other Use Date (as defined below) (the **"Maturity Date"),** the principal amount of **$2,777,500.00** Canadian dollars, or so much of such sum as will have been advanced and is then outstanding under this Promissory Note as evidenced by notations by the Lender from time to time on the grid attached hereto as Appendix A, (the **"Principal Balance")** together with interest as hereinafter provided for.

Set out below is a statement of the rights of the Lender and the conditions to which this grid promissory note (the **"Promissory Note")** is subject and to which the Lender, by the acceptance of this Promissory Note, agrees.

**Interest**

1. The Principal Balance, both before and after maturity, default or judgment and overdue interest both before and after default or judgment, shall bear interest from and including the issue date of this Promissory Note, at the rate of 9.0% per annum, calculated daily and compounded annually on January 31 of each year and payable on the Maturity Date.

**Use of Funds**

2. The Borrower will use the Principal Balance for payment of severance payment obligations owing to Donald J. Thompson and Howard I. Katkov / Red Mountain Ventures Inc. payable on or about the date hereof (the **"Severance").**

**Priority**

3. All proceeds received by the Borrower in respect of any distributions made by The Crescent 2 Limited Partnership (the **"C2 Partnership"),** and all proceeds received by the Borrower's subsidiary Red Development Company Ltd. in respect of the project owned by the C2 Partnership commonly known as "The Daly", will be paid to the Lender until the entire Principal Balance and all accrued and unpaid interest has been repaid to the Lender before any other use is made of such distributions and proceeds (the **"First Other Use Date").**

**Payment of Principal Balance and Interest**

4. Unless previously prepaid in accordance with the terms hereof, the full amount of the Principal Balance together with all accrued and unpaid interest is due and payable on the Maturity Date and will be paid by sending a cheque by prepaid ordinary mail or by delivering other transfer of funds as may be agreed by the Lender, for such Principal Balance and interest payable to the order of the Lender and addressed to it unless the Lender otherwise directs. In the event of non-receipt of any cheque or funds for the Principal Balance and interest by the Lender, the Borrower will cause to be issued to the Lender a replacement cheque or replacement transfer of funds for like amount upon being furnished with such evidence of non-receipt as the Lender shall reasonably require and upon being indemnified to its satisfaction, acting reasonably.

**Prepayment of Principal Balance and Interest**

5. Subject to Section 3, the Principal Balance together with all accrued and unpaid interest may be prepaid in part or in full by the Borrower prior to the Maturity Date, without any bonus or penalty whatsoever, upon prior written notice being provided by the Borrower to the Lender (the **"Prepayment Notice").** The records of the Borrower shall be updated from time to time to reflect the Principal Balance as it is decreased in accordance with the terms hereof.

**Restrictions on Transfer**

6. This Promissory Note shall not be transferred or assigned without the Borrower's prior written consent, except such consent shall not be required if the Borrower is in default of either of its obligations under this Promissory Note.

**Application of Payments**

7. Any amount paid in satisfaction of the indebtedness evidenced by this Promissory Note shall be applied first in satisfaction of any accrued and unpaid interest which is due and payable, with the remaining portion of such amount applied in satisfaction of the Principal Balance owing, with any remaining amount applied in satisfaction of any accrued but unpaid interest which is not yet due and payable as at the date on which such amount is paid.

**Judgment Interest**

8. If the Lender obtains judgment on this Promissory Note or in respect of any amount owing hereunder, interest at the aforesaid rate, calculated monthly, not in advance, shall be payable on the amount which is outstanding under the said judgment from time to time.

**Currency**

9. All amounts payable under this Promissory Note shall be payable in the Canadian dollars.

**Non Waiver**

10. The extension of the time for making any payment which is due and payable hereunder at any time or times or the failure, delay or omission on the part of the Lender to exercise or enforce any rights or remedies of the Lender hereunder or under any instrument securing payment of the indebtedness evidenced by this Promissory Note shall not constitute a waiver of the right of the Lender to enforce such rights and remedies thereafter.

**Notices and Demands**

11. All notices and demands provided for herein shall be in writing and shall be given by electronic mail or other means of electronic communication or by delivery as hereafter provided. Notices and other communications shall be addressed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if to the Borrower, at P.O. Box 670, 4300 Red Mountain Road Rossland, British Columbia, Canada VOG 1YO, Attn: Howard Katkov, howard.katkov@redmountainventures.com; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if to the Lender, at 314 Loma Larga Drive, Solana Beach, CA, 92075, Attn: Jeff Busby, busbyjeff@hotmail.com,

or as each party may otherwise notify the other parties in writing. Any such notice or other communication, if sent by electronic mail or other means of electronic communication, shall be deemed to have been received on the day it was sent (provided that if it was sent on a day which is not a business day, then it shall be deemed delivered on the business day following the sending), or if delivered by hand shall be deemed to have been received at the time it is delivered to the applicable address if such date is a business day and such delivery was made before 4:00 p.m. (Rossland time) and otherwise on the next business day. Notice of change of address shall also be governed by this Section.

**Amendments**

12. No amendment, modification or waiver of any provision of this Promissory Note or consent to any departure by the Borrower from any provision of this Promissory Note is in any event effective unless it is in writing and signed by the Lender and then the amendment, modification, waiver or consent is effective only in the specific instance and for the specific purpose for which it is given. The Borrower authorizes the Lender to record on the grid attached hereto (and, when such grid has been filled, on any reproduction of the form of the grid that may be prepared by Lender and attached to this Promissory Note) all advances, repayments, prepayments and the unpaid principal amount from time to time. The Borrower agrees that in the absence of manifest error the record kept by the Lender on such grid shall be conclusive evidence of the matters recorded, provided that the failure of the Lender to record or correctly record any amount or date shall not affect the obligation of the Borrower to pay the outstanding principal amount and accrued interest in accordance with this Promissory Note.

**Applicable Law**

13. This Promissory Note shall be construed and enforced in accordance with, and the rights of the parties hereto shall be governed by, the laws of the Province of British Columbia and the laws of Canada applicable therein.

**Time of the Essence**

14. Time shall in all respects be of the essence of this Promissory Note.

**Waiver of Benefits**

15. The Borrower hereby waives the benefits of demand and presentment for payment, notice of non-payment, protest and notice of protest of this Promissory Note.

**Compliance with Directions, etc.**

16. The Lender may at any time direct the Borrower to make any payment which is due and payable hereunder or to become due and payable hereunder to any person and the Borrower shall comply with such direction. The Borrower shall, upon the written demand of the Lender, confirm to any third party specified by the Lender that such direction has been received and that no prepayments have been made hereunder and that the Borrower has not been directed to make payments hereunder to any other person.

**Further Assurances**

17. The Borrower and Lender will use all reasonable efforts to give full effect to this Promissory Note and will execute and deliver all such further documents and instruments and do all such further acts and things as the other party reasonably requests to evidence, carry out and give full effect to the terms, conditions, intent and meaning set out herein.

*[Remainder of page intentionally blank. Signature page follows.]*

**Counterparts**

18. This Promissory Note may be executed in counterparts (including electronic or other means) and when so executed will form one and the same instrument.

IN WITNESS WHEREOF the Borrower has executed this Promissory Note on the date first above written.

---

| | |
|:---|:---|
| **RMR ACQUISITION CORP. <br> (Borrower)** | **RMR ACQUISITION CORP. <br> (Borrower)** |
| Per: | /s/ Howard Katkov |
|  | Howard Katkov |
|  | Chief Executive Officer |
|  | I have authority to bind the Borrower |

---

ACKNOWLEDGED AND AGREED to by the Lender effective the date first above written.

---

| |
|:---|
| /s/ Jeff Busby |
| **Jeff Busby, in trust for the Juice Trust** |
| **dtd 1/24/96 Trust 3** |
| **(Lender)** |

---

**APPENDIX A TO<br> PROMISSORY NOTE<br> FROM RMR ACQUISTION CORP.<br> TO JUICE TRUST DTD 1/24/96 TRUST 3<br> DATED MAY 12, 2025**

**<u>GRID</u>**

Advances and Payments

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Date** | **Amount of <br> Advance** | **Amount of <br> Principal <br> Repaid** | **Unpaid <br> Principal <br> Balance** | **Notation Made by** |
| TOTAL: | | | | |

---

## Ex1K-11

**Exhibit 11.1**

![](tm2611545d1_partii-img01.jpg)

**CONSENT OF INDEPENDENT PUBLIC ACCOUNTING FIRM**

May 19, 2026

Board of Directors

Red Mountain Ventures, L.P.

We hereby consent to the inclusion in the Annual Report (or other documents) filed under Regulation A Form 1-K of our reports dated May 19, 2026, with respect to the consolidated statements of financial position as at April 30, 2024, and the consolidated statements of operations and other comprehensive income, consolidated statements of changes in limited partnership interest, and consolidated statements of cash flows for the year then ended.

![](tm2611545d1_ex11-1img001.jpg)

Fort Lauderdale, Florida

May 19, 2026

## Form 1-K Filing Summary

### Filer Information

**Issuer CIK:** 0001712949

**Issuer CCC:** XXXXXXXX

**Is filer a shell company?:** No

**Is this filing by a successor company?:** No

### Submission Contact Information

**Is this a LIVE or TEST Filing?:** LIVE

**Period:** 04-30-2024

### Item 1: Issuer Information (Tab 1 Notification)

**Type of Report:** Annual Report

**Fiscal Year End:** 04-30-2024

**Exact Name of Issuer:** Red Mountain Ventures Limited Partnership

**CIK:** 0001712949

**Jurisdiction of Incorporation:** A1

**IRS Number:** 45-4862460

**Address:** 1938-C COLUMBIA AVENUE, BOX 670, ROSSLAND, A1 V0G 1Y0

**Issuer Phone Number:** 250-362-7384

**Title of each class of securities issued pursuant to Regulation A:** Class D USD$ Series Limited Partnership Units

### Item 2: Ongoing Reporting Requirements

**Is the issuer relying on the relief provided by Rule 257(d) for this filing?** Yes