Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Lusora Healthcare Systems Inc. - Exhibit 10.7

SHARE EXCHANGE AGREEMENT

THIS AGREEMENT dated as of November 30, 2006.

BETWEEN:

Phase IV Partners, Inc., with an
office at 12430 Fairfax Ridge Place, Austin,
Texas

(“Phase IV Partners”)

AND:

Lusora Healthcare Systems Inc.,
a Company incorporated under
the laws of the State of Nevada, with an office
at 2802 Flintrock
Trace, Suite 221, Austin, Texas

(“LHCS”)

WHEREAS:

	A. 	
      Phase IV Partners is the owner of 1,875,000 common shares
      in the capital of Lusora, Inc. (collectively, the “Shares”), a corporation
      existing under the laws of the State of Nevada; and,

	 	 
	B. 	
      Phase IV Partners and LHCS have agreed to exchange the
      Shares on the terms and conditions set forth in this share exchange
      agreement (“Agreement”) to effect the one-for- one share exchange
      contemplated by that certain Escrow Agreement dated October 10, 2006,
      among Phase IV Partners, LHCS and Clark Wilson LLP (the “Escrow
      Agreement”).

NOW THEREFORE THIS AGREEMENT WITNESSES THAT in consideration of
the premises and the respective covenants and agreements herein contained, the
parties hereto covenant and agree as follows:

	1. 	
      In consideration for the transfer of each common share in
      the capital of Lusora Inc. by Phase IV Partners to LHCS, LHCS agrees to
      issue to Phase IV Partners one common share in the capital of LHCS, in the
      amount set out in Schedule “A” to this Agreement.

	 	 	 
	2. 	
      Phase IV Partners represents and warrants that it is the
      beneficial owner of the Shares and that the Shares are free and clear of
      all encumbrances of every nature and kind whatsoever and are freely
      transferable to LHCS, subject only to the Escrow Agreement.

	 	 	 
	3. 	
      Phase IV Partners represents and warrants that:

	 	 	 
		(a) 	
      it has been advised to consult its own legal, tax and
      other advisors with respect to the merits and risks of an investment in
      the common shares in the capital of LHCS and with respect to applicable
      resale restrictions;

- 2 -

	(b) 	
      it is solely responsible (and LHCS is not in any way
      responsible) for compliance with:

	 	 	 
		(i) 	
      any applicable laws of any jurisdiction in which Phase IV
      Partners is resident; and,

	 	 	 
		(ii) 	
      applicable resale restrictions,

	 	 	 
			
      in connection with the common shares in the capital of
      LHCS hereunder.

	4. 	
      Phase IV Partners, hereby represents and warrants
      to and covenants with the Company (which representations, warranties and
      covenants shall survive the Closing Date) that:

	 	 	 
		(a) 	
      upon execution of this Agreement, Phase IV Partners will
      complete the “Prospective Investor Suitability Questionnaire” attached as
      Schedule 2 to this Agreement (the “Questionnaire”) and that the
      Questionnaire is a representation and warranty that the Company will rely
      on.

	 	 	 
	5. 	
      Phase IV Partners acknowledges that the representations
      and warranties contained herein are made by it with the intention that
      such representations and warranties may be relied upon by the Company and
      its legal counsel in determining Phase IV Partners' eligibility to obtain
      the common shares in the capital of LHCS under applicable securities
      legislation. Phase IV Partners further agrees that by accepting delivery
      of the certificates representing the common shares in the capital of LHCS,
      it will be representing and warranting that the representations and
      warranties contained herein are true and correct as at the Closing Date of
      this Agreement with the same force and effect as if they had been made by
      Phase IV Partners on the Closing Date and that they will survive the
      transfer of the Shares and will continue in full force and effect
      notwithstanding any subsequent disposition by Phase IV Partners of the
      Shares.

	 	 	 
	6. 	
      This Agreement shall be governed by, and construed in
      accordance with, the laws of the State of Nevada and the federal laws of
      the United States applicable therein and shall be treated in all respects
      as a Nevada contract.

	 	 	 
	7. 	
      This Agreement and all the provisions hereof shall be
      binding upon and enure to the benefit of the parties hereto and their
      respective heirs, successors and permitted assigns. Neither this Agreement
      nor any of the rights hereunder shall be assigned by any of the parties
      hereto without the prior written consent of the other party
  hereto.

	 	 	 
	8. 	
      Each party shall make, do and execute, or cause to be
      made, done and executed all such further acts, deeds, agreements,
      transfers, assurances, instruments or documents as may be reasonably
      required in order to implement this Agreement.

	 	 	 
	9. 	
      Time is of the Essence to this
  Agreement.

- 3 -

	10. 	
      This Agreement may be executed in counterparts, each of
      which shall be deemed an original, and each signed copy sent by electronic
      facsimile transmission shall be deemed to be an original, but all of which
      together shall constitute one and the same
instrument.

IN WITNESS WHEREOF the parties have entered into this
Agreement as of the date and year first above written.

Lusora Healthcare Systems Inc.

	Per: 	/s/ Dan Bauer 
	  	Authorized Signatory 

Phase IV Partners, Inc.

	Per: 	/s/ Julie Gurley 
	  	Authorized Signatory 

- 4 -

Schedule ”A”
TO THE SHARE EXCHANGE AGREEMENT
AMONG
PHASE IV PARTNERS AND LUSORA HEALTHCARE SYSTEMS INC. (“LHCS”)

	

Name 	

Address 	Number of 
Lusora Inc. 
Shares 	

Number of LHCS Shares 
	
Phase IV 
Partners, Inc. 
	
12430 Fairfax Ridge Place 
Austin, Texas
      78738-5435 
United States 	
1,875,000 

	
1,875,000

- 5 -

Schedule 2

PROSPECTIVE INVESTOR SUITABILITY QUESTIONNAIRE

All capitalized terms herein, unless otherwise defined, have
the meanings ascribed thereto in the Share Exchange Agreement.

This Questionnaire is for use by each Subscriber who is a U.S.
person (as that term is defined Regulation S of the United States Securities Act
of 1933 (the “1933 Act”)) and has indicated an interest in purchasing Shares of
Lusora Healthcare Systems Inc. (the “Company”). The purpose of this
Questionnaire is to assure the Company that each Subscriber will meet the
standards imposed by the 1933 Act and the appropriate exemptions of applicable
state securities laws. The Company will rely on the information contained in
this Questionnaire for the purposes of such determination. The Shares will not
be registered under the 1933 Act in reliance upon the exemption from
registration afforded by Section 3(b) and/or Section 4(2) and Regulation D of
the 1933 Act. This Questionnaire is not an offer of the Shares or any other
securities of the Company in any state other than those specifically authorized
by the Company.

All information contained in this Questionnaire will be treated
as confidential. However, by signing and returning this Questionnaire, each
Subscriber agrees that, if necessary, this Questionnaire may be presented to
such parties as the Company deems appropriate to establish the availability,
under the 1933 Act or applicable state securities law, of exemption from
registration in connection with the exchange of the Shares hereunder.

The Subscriber covenants, represents and warrants to the Company
  that it satisfies one or more of the categories of “Accredited Investors”,
  as defined by Regulation D promulgated under the 1933 Act, as indicated below:
  (Please initial in the space provide those categories, if any, of an “Accredited
  Investor” which the Subscriber satisfies)

 

	 	______ Category 1 	An organization described
        in Section 501(c)(3) of the United States Internal Revenue Code, a corporation,
        a Massachusetts or similar business trust or partnership, not formed for
        the specific purpose of acquiring the Shares, with total assets in excess
        of US $5,000,000; 

	 	  	 

	 	______ Category 2 	A natural person whose individual
        net worth, or joint net worth with that person's spouse, on the date of
        purchase exceeds US $1,000,000; 

	 	  	 

	 	______ Category 3 	A natural person who had an
        individual income in excess of US $200,000 in each of the two most recent
        years or joint income with that person's spouse in excess of US $300,000
        in each of those years and has a reasonable expectation of reaching the
        same income level in the current year; 

 

- 6 -

	 	______ Category 4 	A "bank" as defined under
        Section (3)(a)(2) of the 1933 Act or savings and loan association or other
        institution as defined in Section 3(a)(5)(A) of the 1933 Act acting in
        its individual or fiduciary capacity; a broker dealer registered pursuant
        to Section 15 of the Securities Exchange Act of 1934 (United
        States); an insurance company as defined in Section 2(13) of the 1933
        Act; an investment company registered under the Investment Company
        Act of 1940 (United States) or a business development company as defined
        in Section 2(a)(48) of such Act; a Small Business Investment Company licensed
        by the U.S. Small Business Administration under Section 301(c) or (d)
        of the Small Business Investment Act of 1958 (United States);
        a plan with total assets in excess of $5,000,000 established and maintained
        by a state, a political subdivision thereof, or an agency or instrumentality
        of a state or a political subdivision thereof, for the benefit of its
        employees; an employee benefit plan within the meaning of the Employee
        Retirement Income Security Act of 1974 (United States) whose investment
        decisions are made by a plan fiduciary, as defined in Section 3(21) of
        such Act, which is either a bank, savings and loan association, insurance
        company or registered investment adviser, or if the employee benefit plan
        has total assets in excess of $5,000,000, or, if a self- directed plan,
        whose investment decisions are made solely by persons that are accredited
        investors; 

	 	  	 

	 	______ Category 5 	A private business development
        company as defined in Section 202(a)(22) of the Investment Advisers
        Act of 1940 (United States); 

	 	  	 

	 	______ Category 6 	A director or executive officer
        of the Company; 

	 	  	 

	 	______ Category 7 	A trust with total assets
        in excess of $5,000,000, not formed for the specific purpose of acquiring
        the Shares, whose purchase is directed by a sophisticated person as described
        in Rule 506(b)(2)(ii) under the 1933 Act; 

	 	  	 

	 	______ Category 8 	An entity in which all of
        the equity owners satisfy the requirements of one or more of the foregoing
        categories;

Note that prospective Subscribers claiming to satisfy one of
  the above categories of Accredited Investor may be required to supply the Company
  with a balance sheet, prior years' federal income tax returns or other appropriate
  documentation to verify and substantiate the Subscriber's status as an Accredited
  Investor.

- 7 -

If the Subscriber is an entity which initialled Category 8
  in reliance upon the Accredited Investor categories above, state the name, address,
  total personal income from all sources for the previous calendar year, and the
  net worth (exclusive of home, home furnishings and personal automobiles) for
  each equity owner of the said entity: 

The Subscriber hereby certifies that the information contained
  in this Questionnaire is complete and accurate and the Subscriber will notify
  the Company promptly of any change in any such information. If this Questionnaire
  is being completed on behalf of a corporation, partnership, trust or estate,
  the person executing on behalf of the Subscriber represents that it has the
  authority to execute and deliver this Questionnaire on behalf of such entity.

IN WITNESS WHEREOF, the undersigned has executed this Questionnaire
  as of the 30th day of November, 2006.

	If a Corporation, Partnership or Other Entity: 	 	If an Individual: 
	 	 	 
	Phase IV Partners Inc.	 	 
	Print or Type Name of Entity 	 	Signature 
	 	 	 
	Julie Gurley	 	 
	Signature of Authorized Signatory 	 	Print or Type Name 
	 	 	 
	Corporation	 	 
	Type of Entity 	 	Social Security/Tax I.D. NumberExhibit 10.1 - Mineral Property Agreement

    
      

      

    

    STRATHY
      TOWNSHIP PROPERTY OPTION AGREEMENT

    

    

    THIS
      AGREEMENT
      dated
      for reference August 6, 2006.

    

    

    BETWEEN:

    

    FREDERICK
      BLAKE, P.O.
      Box.
      187, Temagami, Ontario, P0H 2H0;

    

    ("Blake")

    

    OF
      THE
      FIRST PART

    

    AND:

    

    HERITAGE
      EXPLORATIONS, INC,
      a body
      corporate, duly incorporated under the laws of the State of Nevada and having
      its head office at Suite 510, 130 Brodie Street South, Thunder Bay, Ontario,
      P7E
      6M3;

    

    (“Heritage")

    

    OF
      THE
      SECOND PART

    

    W
      H E R E
      A S :

    

    A.
        Blake
      is
      the registered and beneficial owner of the two mineral property claims located
      in Strathy Township, Sudbury Mining Division, Ontario, which claim is more
      particularly described in Schedule "A" attached hereto which forms a material
      part hereof (collectively, the "Property");

    

    B. 
 Blake
      has
      agreed to grant to Heritage the sole and exclusive right, privilege and option
      to explore the Property together with the sole and exclusive right, privilege
      and option to purchase the Property upon the terms and conditions hereinafter
      set forth;

    

    NOW
      THEREFORE THIS AGREEMENT WITNESSETH
      that in
      consideration of the mutual covenants and provisos herein contained,
THE
      PARTIES HERETO AGREE AS FOLLOWS:

    

    
      	
              1.

            	
              OPTIONOR’S
                REPRESENTATIONS

            

    

    

    
      	
              1.1

            	
              Blake
                represents and warrants to Heritage
                that:

            

    

    

    
      	 	
              (a)

            	
              Blake
                is the registered and beneficial owner of the Property and holds
                the right
                to explore and develop the
                Property;

            

    

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    2

     

    
      	 	
              (b)

            	
              Blake
                holds the Property free and clear of all liens, charges and claims
                of
                others, and Blake has a free and unimpeded right of access to the
                Property
                and has use of the Property surface for the herein
                purposes;

            

    

    

    
      	 	
              (c)

            	
              The
                Property has been duly and validly located and recorded in a good
                and
                miner-like manner pursuant to the laws of the Province of Ontario
                and are
                in good standing in Ontario as of the date of this
                Agreement;

            

    

    

    
      	 	
              (d)

            	
              There
                are no adverse claims or challenges against or to the Blake's ownership
                of
                or title to the Property nor to the knowledge of Blake is there any
                basis
                therefor, and there are no outstanding agreements or options to acquire
                or
                purchase the Property or any portion
                thereof;

            

    

    

    
      	 	
              (e)

            	
              Blake
                has the full right, authority and capacity to enter into this Agreement
                without first obtaining the consent of any other person or body corporate
                and the consummation of the transaction herein contemplated will
                not
                conflict with or result in any breach of any covenants or agreements
                contained in, or constitute a default under, or result in the creation
                of
                any encumbrance under the provisions of any indenture, agreement
                or other
                instrument whatsoever to which Blake is a party or by which he is
                bound or
                to which he is subject; and

            

    

    

    
      	 	
              (f)

            	
              No
                proceedings are pending for, and Blake is unaware of any basis for,
                the
                institution of any proceedings which could lead to the placing of
                Blake in
                bankruptcy, or in any position similar to
                bankruptcy.

            

    

    

    1.2                  
      The
      representations and warranties of Blake set out in paragraph 1.1 above form
      a
      part of this Agreement and are conditions upon which Heritage has relied in
      entering into this Agreement and shall survive the acquisition of any interest
      in the Property by Heritage .

    

    1.3                  
      Blake
      will indemnify Hertiage from all loss, damage, costs, actions and suits arising
      out of or in connection with any breach of any representation, warranty,
      covenant, agreement or condition made by Blake and contained in this
      Agreement.

    

    1.4                  
      Blake
      acknowledges and agrees that Heritage has entered into this Agreement relying
      on
      the warranties and representations and other terms and conditions of this
      Agreement and that no information which is now known or which may hereafter
      become known to Heritage shall limit or extinguish the right to indemnity
      hereunder, and, in addition to any other remedies it may pursue, Heritage may
      deduct the amount of any such loss or damage from any amounts payable by it
      to
      Blake hereunder.

    

    
      	
              2.

            	
              HERITAGE'S
                REPRESENTATIONS

            

    

    

    Heritage
      warrants and represents to Blake that it is a body corporate, duly incorporated
      under the laws of the State of Nevada with full power and absolute capacity
      to
      enter into this Agreement and that the terms of this Agreement have been
      authorized by all necessary corporate acts and deeds in order to give effect
      to
      the terms hereof.

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    3

    
 

    
      	
              3.

            	
              GRANT
                OF OPTION

            

    

    

    Blake
      hereby gives and grants to Heritage the sole and exclusive right and option
      to
      acquire a l00% undivided right, title and interest in and to the Property (the
      "Option"), subject to a 3% net smelter returns royalty and a 2% gross overriding
      royalty on diamond production on the Property, as described respectively in
      Schedules B and C attached to this Agreement, by performing the acts and deeds
      and paying the sums provided for in paragraph 4.

    

    
      	
              4.

            	
              CONSIDERATION
                FOR THE GRANT OF OPTION

            

    

    

    4.1                   
      In
      order
      to keep the Option in respect of the Property in good standing and in force
      and
      effect, Heritage shall be obligated to:

    

    Cash
      Payment

    

    
      	 	
              (a)

            	
              Pay
                to Blake a total of $40,000
                as follows:

            

    

    

    
      	 	
              (i)

            	
              $2,500
                immediately upon execution of this agreement by all parties;
                

            

    

    

    
      	 	
              (ii)

            	
              an
                additional $7,500 by January 6, 2008;

            

    

    

    
      	
            	(iii)	
              an
                additional $10,000 by January 6, 2009;
                and

            

    

    

    
      	 	
              (iv)

            	
              an
                additional $20,000 by January 6,
                2010.

            

    

    

    Expenditure
      Commitments

    

    
      	 	
              (b)

            	
              Incur,
                or cause to be incurred, exploration work on the Property totalling
                at
                least $145,000 by January 6, 2011, which work shall be conducted
                by
                Heritage under the direction of a qualified geologist or project
                engineer,
                as follows:

            

    

    

    
      	 	
              (i)

            	
              $6,000
                in
                expenditures on the Property by August 6, 2007. Heritage’s completion of
                these expenditures is mandatory;

            

    

    

    
      	 	
              (ii)

            	
              No
                less than a further $9,000
                of
                expenditures to be incurred on the Property by January 6, 2008;

            

    

    

    
      	 	
              (iii)

            	
              No
                less than a further $25,000 of expenditures to be incurred on the
                Property
                by January 6, 2009; 

            

    

    

    
      	 	
              (iv)

            	
              No
                less than a further $45,000 of expenditures to be incurred on the
                Property
                by January 6, 2010; and

            

    

    

    
      	 	
              (v)

            	
              No
                less than a further $60,000 of expenditures to be incurred on the
                Property
                by Janaury 6, 2011. 

            

    

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    4

    
 

    Assessment
      Work

    

    
      	 	
              (c)

            	
              Pay,
                or cause to be paid, to Blake, or on Blake's behalf, as Heritage
                may
                determine, all Property payments and assessment work required to
                keep the
                Property and this Option in good standing during the term of this
                Agreement.

            

    

    

    4.3                   Heritage
      shall deliver all consideration due to the Blake under paragraph 4.1 directly
      in
      his name.

    

    
      	
              5.

            	
              PERIPHERAL
                INTEREST

            

    

    

    Heritage
      agrees that any other right or interest acquired in any mineral property claim
      group within a two kilometer distance of the boundaries of the Property will
      form part of the Property for the purpose of this agreement. Any additional
      mineral property right or interest that Heritage may acquire shall be included
      under the provisions of paragraph 6.1.

    

    
      	
              6.

            	
              RIGHT
                TO ABANDON PROPERTY
                INTERESTS

            

    

    

    6.1                  
      Should
      Heritage, in its sole discretion, determine that any part of the Property no
      longer warrants further exploration and development, then Heritage may abandon
      such interest or interests without affecting its rights or obligations under
      this Agreement, so long as Heritage provides Blake with 30 days notice of its
      intention to do so. Upon receipt of such notice, Blake may request Heritage
      to
      retransfer the title to such interest or interests to him, and Heritage hereby
      agrees to do so, and upon expiry of the 30 days, or upon the earlier transfer
      thereof, such interests shall cease to be part of the Claim for the purposes
      of
      this Agreement.

    

    6.2                  
      Any
      Property that Heritage returns to Blake in accordance with paragraph 6.1 shall
      have a minimum of one year of assessment work credited against it at the time
      of
      return.

    

    
      	
              7.

            	
              TERMINATION
                OF OPTION

            

    

    

    7.1                  
      Subject
      to paragraph 7.2, the Option shall terminate if Heritage fails to make the
      required cash payments, advance royalty payments or, fails to complete the
      required assessment work in accordance with paragraph 4.1 herein within the
      time
      periods specified therein.

    

    7.2                 
       If
      Heritage shall be in default of any requirement set forth in paragraph 4.1
      herein, Blake shall give written notice to Heritage specifying the default
      and
      Heritage shall not lose any rights granted under this Agreement, unless within
      30 days after the giving of notice of default by Blake, Heritage has failed
      to
      take reasonable steps to cure the default by the appropriate
      performance.

    

    7.3                  
      If
      the
      Option is terminated in accordance with paragraphs 7.1 and 7.2 herein, Heritage
      shall have no interest in or to the Property, and all share issuances,
      expenditures and payments made by Heritage to or on behalf of Blake under this
      Agreement shall be non-refundable by Blake to Heritage for which Heritage shall
      have no recourse. Within 60 days of such termination, Heritage shall transfer
      the Property back to Blake, failing which, Blake shall have the right to act
      as
      attorney for Heritage for the purpose of such transfer.

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    5

    
 

    
      	
              8.

            	
              ACQUISITION
                OF INTERESTS IN THE
                PROPERTY

            

    

    

    At
      such
      time as Heritage has made the required cash payments and exploration
      expenditures in accordance with paragraph 4.1 herein, within the time periods
      specified therein, then the Option shall be deemed to have been exercised by
      Heritage, and Heritage shall have thereby, without any further act, acquired
      an
      undivided 100% interest in and to the Property.

    

    
      	
              9.

            	
              RIGHT
                OF ENTRY

            

    

    

    For
      so
      long as the Option continues in full force and effect, Heritage, its employees,
      agents, permitted assigns and independent contractors shall have the sole and
      exclusive right and option to:

    

    
      	 	
              (a)

            	
              enter
                upon the Property;

            

    

    

    
      	 	
              (b)

            	
              have
                exclusive and quiet possession of the
                Property;

            

    

    

    
      	 	
              (c)

            	
              incur
                expenditure;

            

    

    

    
      	 	
              (d)

            	
              bring
                upon and erect upon the Property such mining facilities as Heritage
                may
                consider advisable; and

            

    

    

    
      	 	
              (e)

            	
              remove
                from the Property and sell or otherwise dispose of mineral
                products.

            

    

    

    
      	
              10.

            	
              NET
                SMELTER RETURNS ROYALTY

            

    

    

    10.1               
       On
      the
      date Heritage commences commercial production on the Property, Blake shall
      be
      entitled to receive and Heritage shall pay to Blake 3% of net smelter returns.
      "Commercial production" shall not include milling of ores for the purpose of
      testing or milling by a pilot plant or milling during an initial tune-up period
      of a plant.

    

    10.2                
      Heritage
      shall be under no obligation whatsoever to place the Property into commercial
      production and in the event they are placed into commercial production, Heritage
      shall have the right, at any time, to curtail or suspend such production as
      it,
      in its absolute discretion, may determine. 

    

    10.2                
      Heritage
      shall be entitled to, but under no obligation whatsoever, purchase up to 2%
      of
      the 3% of net smelter returns held by Blake at a rate of $500,000 per 0.5%
      of
      net smelter return.

    

    
      	
              11.

            	
              OPERATOR

            

    

    

    11.1                
      After
      the
      execution of this Agreement, Heritage, or at Heritage's option, its respective
      associate or nominee or such other unrelated entity as it may determine, will
      act as the operator of the Property under this Agreement. Heriatge, if operator,
      may resign as the operator at any time by giving 30 calendar days prior written
      notice to Blake, and within such 30 day period, Heritage may appoint another
      party who covenants to act as the operator of the Property upon such terms
      as
      Heritage sees fit.

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    6

     

    11.2               
       Notwithstanding
      paragraph 11.1, Blake shall have the right to conduct and supervise all of
      Heritage’s exploration and development work on the Property and to be
      compensated at competitive industry rates.

    

    
      	
              12.

            	
              POWER
                AND AUTHORITY OF THE
                OPERATOR

            

    

    

    12.1               
       After
      the
      execution of this Agreement, the Operator shall have full right, power and
      authority to do everything necessary or desirable in connection with the
      exploration and development of the Property and to determine the manner of
      operation of the Property as a mine. 

    

    12.2               
       Where
      possible, the Operator shall insure that all field work is conducted, and that
      all assay and work program results are verified, by a third party independent
      from Heritage.

    

    
      	
              13.

            	
              REGISTRATION
                OF PROPERTY INTERESTS

            

    

    

    Upon
      the
      request of Heritage, Blake shall assist Heritage to record this Agreement with
      the appropriate mining recorder and, when required, Blake shall further provide
      Heritage with such recordable documents as Heritage and its counsel shall
      require to record its due interest in respect of the Property.

    

    
      	
              14.

            	
              FURTHER
                ASSURANCES

            

    

    

    The
      parties hereto agree to do or cause to be done all acts or things necessary
      to
      implement and carry into effect the provisions and intent of this
      Agreement.

    

    
      	
              15.

            	
              FORCE
                MAJEURE

            

    

    

    If
      Heritage is prevented from or delayed in complying with any provisions of this
      Agreement by reasons of strikes, labour disputes, lockouts, labour shortages,
      power shortages, fires, wars, acts of God, governmental regulations restricting
      normal operations or any other reason or reasons beyond the control of Heritage,
      the time limited for the performance of the various provisions of this Agreement
      as set out above shall be extended by a period of time equal in length to the
      period of such prevention and delay, and Heritage, insofar as is possible,
      shall
      promptly give written notice to Blake of the particulars of the reasons for
      any
      prevention or delay under this section, and shall take all reasonable steps
      to
      remove the cause of such prevention or delay and shall give written notice
      to
      Blake as soon as such cause ceases to exist.

    

    
      	
              16.

            	
              CONFIDENTIAL
                INFORMATION

            

    

    

    No
      information furnished by Heritage to Blake hereunder in respect of the
      activities carried out on the Property by Blake, or related to the sale of
      mineral products derived from the Property, shall be published by Blake without
      the prior written consent of Heritage, but such consent in respect of the
      reporting of factual data shall not be unreasonably withheld. Blake, shall
      be
      entitled to copies of all exploration work and development data that Heritage
      may acquire in conducting work on the Property, in written and electronic
      format, to be provided as the data is generated

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    7

     

    
      	
              17.

            	
              ENTIRE
                AGREEMENT

            

    

    

    This
      Agreement constitutes the entire agreement to date between the parties hereto
      and supersedes every previous agreement, communication, expectation,
      negotiation, representation or understanding, whether oral or written, express
      or implied, statutory or otherwise, between the parties hereto with respect
      to
      the subject matter of this Agreement.

    

    
      	
              18.

            	
              NOTICE

            

    

    

    18.1               
       Any
      notice required to be given under this Agreement shall be deemed to be well
      and
      sufficiently given if delivered, or if mailed by registered mail, in the case
      of
      Blake addressed to him as follows:

    

    FREDERICK
      BLAKE

    P.O.
      Box
      187

    Temagami,
      Ontario

    P0H
      2H0

    

    and
      in
      the case of Heritage addressed as follows:

    

    HERITAGE
      EXPLORATIONS, INC.

    Suite
      510, 130 Brodie Street South,

    Thunder
      Bay, Ontario

    P7E
      6M3

    

    Attention:
      Terry Desjardins, President

    

    and
      any
      notice given as aforesaid shall be deemed to have been given, if delivered,
      when
      delivered, or if mailed by registered mail, on the fourth business day after
      the
      date of mailing thereof.

    

    18.2                 
      Either
      party hereto may from time to time by notice in writing change its address
      for
      the purpose of this section.

    

    
      	
              19.

            	
              OPTION
                ONLY

            

    

    

    Until
      the
      Option is exercised, this is an option only and except as specifically provided
      otherwise, nothing herein contained shall be construed as obligating Heritage
      to
      do any acts or make any payments hereunder and any acts or payments made
      hereunder shall not be construed as obligating Heritage to do any further acts
      or make any further payments.

    

    
      	
              20.

            	
              RELATIONSHIP
                OF PARTIES

            

    

    

    Nothing
      contained in this Agreement shall, except to the extent specifically authorized
      hereunder, be deemed to constitute either party hereto a partner, agent or
      legal
      representative of the other party.

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    8

    
 

    
      	
              21.

            	
              TIME
                OF ESSENCE

            

    

    

    Time
      shall be of the essence of this Agreement.

    

    
      	
              22.

            	
              TITLES

            

    

    

    The
      titles to the respective sections hereof shall not be deemed a part of this
      Agreement but shall be regarded as having been used for convenience
      only.

    

    
      	
              23.

            	
              CURRENCY

            

    

    

    All
      funds
      referred to under the terms of this Agreement shall be funds designated in
      the
      lawful currency of the United Stares of America.

    

    
      	
              24.

            	
              SEVERABILITY

            

    

    

    In
      the
      event that any of the paragraphs contained in this Agreement, or any portion
      of
      thereof, is unenforceable or is declared invalid for any reason whatsoever,
      such
      unenforceability or invalidity shall not affect the enforceability or validity
      of the remaining terms or portions thereof contained in this Agreement and
      such
      unenforceable or invalid paragraph, or portion thereof, shall be severable
      from
      the remainder of the Agreement.

    

    
      	
              25.

            	
              APPLICABLE
                LAW

            

    

    

    The
      situs
      of the Agreement is Thunder Bay, Ontario, and for all purposes this Agreement
      will be governed exclusively by and construed and enforced in accordance with
      the laws prevailing in the Province of Ontario. 

    

    
      	
              26.

            	
              ENUREMENT

            

    

    

    This
      Agreement shall enure to the benefit of and be binding upon the parties hereto
      and their respective successors and assigns.

    

    

    

    

    

    

    

    

    

    

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    9

    
 

    IN
      WITNESS WHEREOF
      this
      Agreement has been executed as of the day and year first above
      written.

    

    
      	 	
              HERITAGE
                EXPLORATIONS, INC.

            
	 	 
	 	
              per:

            
	 	 
	___________________________ 	___________________________ 
	
              Frederick
                Blake

            	
              President

            

    

    

    

    

     

     

     

     

     

     

     

     

    
 

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    10

     

    SCHEDULE
      "A"

    

    TO
      THAT CERTAIN AGREEMENT MADE AS OF AUGUST 6, 2006 BETWEEN 

    FREDERICK
      BLAKE AND HERITAGE EXPLORATIONS, INC.

    

    

    The
      Strathy Township property consists of a total of 2 claim units located in the
      Sudbury Mining Division, Canada with the following record number and
      area:

    

    
      	
              Township

            	
              Recording
                Date

            	
              Record
                No.

            	
              Acreage

            
	 	 	 	 
	
              Strathy

            	
              January
                9, 1992

            	
              1118436

            	
              40

            
	 	 	
               

            	 
	
              Strathy

            	
              January
                9, 1992

            	
              1179062

            	
              40

            
	 	 	 	 
	 	 	 	 

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    11

     

    SCHEDULE
      “B”

    

    TO
      THAT CERTAIN AGREEMENT MADE AS OF AUGUST 6, 2006 BETWEEN

    FREDERICK
      BLAKE AND HERITAGE EXPLORATIONS, INC.

    

    DEFINITION
      OF GROSS OVERRIDING ROYALTY (“GORR”)

    

    (All
      capitalized terms used herein shall have the definitions contained in the
      Agreement, unless otherwise specified.)

    

    Pursuant
      to the Agreement to which this Appendix is attached, Blake is entitled to a
      royalty (the “GORR”) equal to 2% of the Average Appraised Value (as hereinafter
      defined) of all gem and industrial diamonds recovered, sorted and graded from
      the Property (the “Diamonds”), free and clear of all costs of development and
      operations.

    

    “Average
      Appraised Value”
      means
      the average of the valuations in Canadian dollars of the Diamonds determined
      by
      two independent graders, one appointed by Heritage and one appointed by Blake.
      Such independent graders shall be duly qualified and accredited, and shall
      sort,
      grade and value the Diamonds in accordance with industry standards, having
      regard to, but without limiting the generality of the foregoing, the commercial
      demand for the Diamonds. Each independent valuator shall value each particular
      classification of the Diamonds in accordance with the industry pricebooks,
      standards and formulas. The parties acknowledge that the intention is that
      the
      GORR is to be paid to Blake on this basis, regardless of the price or proceeds
      actually received by Heritage for or in connection with the Diamonds or the
      manner in which a sale of the Diamonds to a third party is made, and without
      deduction.

    

    Heritage
      will calculate and pay the GORR to Blake within 30 days of the end of each
      calendar quarter, based on all Diamonds from the Property which were graded
      in
      such calendar quarter.

    

    Blake
      shall not be entitled to participate in the profits or be obligated to share
      in
      any losses generated by the Purchaser’s actual marketing or sales
      practices.

    

    Blake
      shall also at his election have the right to take their GORR in
      kind.

    

    

    

    

    

    

    

    

    

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    12

     

    SCHEDULE
      “C”

    

    TO
      THAT CERTAIN AGREEMENT MADE AS OF AUGUST 6, 2006 BETWEEN

    FREDERICK
      BLAKE AND HERITAGE EXPLORATIONS, INC.

    

    NET
      SMELTER RETURNS

    

    1.                    
       In
      the
      Agreement, “Net
      Smelter Returns”
means
      the net amount of money received by Heritage for its own account from the sale
      of ore, or ore concentrates or any other products from the Property to a smelter
      or other ore buyer after deduction of smelter and /or refining charges, ore
      treatment charges, penalties and any and all charges made by the purchaser
      of
      ore or concentrates, less any and all transportation costs which may be incurred
      in connection with the transportation of ore or concentrates.

    

    2.                   
       Payment
      of Net Smelter Returns by Heritage to Blake shall be made quarterly within
      45
      days after the end of each fiscal quarter of Heritage and shall be accompanied
      by unaudited financial statements pertaining to the operations carried out
      by
      Heritage on the Property. Within 120 days after the end of each fiscal year
      of
      Heritage in which Net Smelter Returns are payable to Blake, the records relating
      to the calculation of Net Smelter Returns for such year shall be audited and
      any
      resulting adjustments in the payment of Net Smelter Returns payable to Blake
      shall be made forthwith. A copy of the said audit shall be delivered to Blake
      within 30 days of the end of such 120-day period.

    

    3.                    
      Each
      annual audit shall be final and not subject to adjustment unless Blake delivers
      to Heritage written exceptions in reasonable detail within one month after
      Blake
      receives the report. Blake, or his representative duly authorized in writing,
      at
      his expense, shall have the right to audit the books and records of Heritage
      related to Net Smelter Returns to determine the accuracy of the report, but
      shall not have access to any other books and records of Heritage. The audit
      shall be conducted by a chartered or certified public accountant of recognized
      standing. Heritage shall have the right to condition access to its books and
      records on execution of a written agreement by the auditor that all information
      will be held in confidence and used solely for purposes of audit and resolution
      of any disputes related to the report. A copy of Blake’s report shall be
      delivered to Heritage and the amount which should have been paid according
      to
      Blake’s report shall be paid forthwith. In the event that the said discrepancy
      is to the detriment of Blake and exceeds 5% of the amount actually paid by
      Heritage, then Heritage shall pay the entire cost of the audit.

    

    4.                   
        In
      the
      event smelting or refining are carried out in facilities owned or controlled,
      in
      whole or in part, by Heritage, charges, costs and penalties with respect to
      such
      operations, excluding transportation, shall mean reasonable charges, costs
      and
      penalties for such operations but not in excess of the amounts that Heriatge
      would have incurred if such operations were carried out at facilities not owned
      or controlled by Heritage then offering comparable custom services.

    

    5.                   
       Blake
      shall at his election have the right to take their Net Smelter Return as it
      may
      pertain to precious metals defined as gold and platinum group elements in
      kind.

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