Document:

EXECUTION
COPY

     

    SOFTWARE
LICENSE AND SERVICES AGREEMENT

     

            This
Master Software License and Services Agreement (the "AGREEMENT") is executed as
of the 19th day of
January, 2006 (the "EFFECTIVE DATE") by and between Superclick, Inc., a
Washington Corporation with its principal place of business at 10222 St-Michel,
Suite 300, Montreal, Quebec H1H 5H1 ("Superclick") and Hospitality Services Plus
SA (formerly Swisscom Eurospot SA), a Swiss corporation, with its principal
offices located at Chemin de l’Etang 65, CH-1214 Vernier, Switzerland
("Swisscom"). Superclick and Swisscom are sometimes referred to herein as the
“Parties”.

     

    RECITALS

     

    A.         WHEREAS,
Swisscom is a European leading provider of high-speed Internet access,
conference services and business centre solutions to the hospitality industry.
Swisscom operates a pan-European and US network of locations, offering its
services through fixed-line and wireless access and has exclusive working
relationships with its hotel partners; and

     

    B.         WHEREAS,
Superclick is a developer and distributor of IP-based traffic management
systems, including SIMS, MAMA and MDS as more fully described in Section 1 below
(the “Licensed Products”); and

     

    C.         WHEREAS,
based on the mutually agreed upon success of a pilot project, wherein the
Licensed Products have been installed and tested in one of Swisscom’s contracted
properties in Europe (the “Pilot Project”), the Parties desire to enter into an
agreement whereby Swisscom will retain an exclusive license to use and modify
the Licensed Products for the provisioning of its services to the hospitality
industry (i) in Europe (the “Territory”) as more fully described in Section 1
below and (ii) outside of the Territory as defined in Annex 3 .

     

    NOW,
THEREFORE, in consideration of the premises, covenants and agreements contained
herein and other good and valuable consideration, the Parties agree as
follows:

     

    
      	
              1. 
        

            	
              DEFINITIONS

            

    

    
      	
              1.1  

            	
              “Acceptance
      Date” means the day following the expiration of the Trial Period, but no
      later than 60 days after the Effective Date or otherwise agreed between
      the Parties in relation to the Timeline defined in Annex 1 of the
      Agreement wherein Swisscom shall be deemed to have accepted the Licensed
      Products (the “Acceptance Date”). Refer to Annex 1 for
      timelines.

            

    

    
      	
              1.2  

            	
              “Delivery
      Date” means the date that is seven (7) days after the Effective Date, upon
      which date Superclick shall deliver to Swisscom a copy of the Licensed
      Products (including source code) and the Documentation. If Superclick
      fails to deliver the foregoing items on the Delivery Date (or within a
      reasonable time thereafter, as determined by Swisscom in its sole
      discretion) Swisscom shall be entitled to terminate this Agreement in its
      sole discretion.

            

    

    
      	
              
                1.3  
      

              

            	
              “Documentation”
      means the instruction manuals, user guides and other information (which
      shall be identified by title and reference number in Annex 7 to the
      Agreement) to be made available by Superclick either in printed or machine
      readable form to Swisscom together with the Licensed Products. For the
      avoidance of doubt, “Documentation” shall include all documents and
      materials that shall enable Swisscom to understand and operate the
      Licensed Products.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              1.4  

            	“Effective
      Date” means the date that the Agreement is executed by Superclick and by
      Swisscom.
	 	 
	
              1.5  
      

            	
              “Licensed
      Product(s)” means, collectively, SIMS, MAMA, MDS and corresponding source
      code (identified in title and reference number in Schedule A of the
      Agreement) and any relevant tools to SIMS, MAMA and MDS, together with the
      Documentation, including Updates and upgrades of such current software
      programs and Documentation. The Licensed Products shall contain all and
      any existing software of Superclick which is required to use, sell and
      distribute the Licensed Products as described
  above.

            

    

     

    
      	
              1.6  

            	“Price
      List” means as defined in Annex 5 of the Agreement.
	 	 
	
              1.7  
      

            	“Software
      Maintenance” means repairs and enhancements in any of the Licensed
      Products.
	 	 
	
              1.8  

            	
              “Technical
      Support” means services provided by Superclick in support and/or
      maintenance of Swisscom’s use of the Licensed Product(s) as further
      described in Section 5 and Schedule A
below.

            

    

     

    
      	
              1.9  
      

            	
              “Territory”
      means the current 25 Member States of the European Union and Switzerland,
      Turkey, Serbia, Macedonia, Bulgaria, Croatia, Romania, Albania, Andorra,
      Bosnia Herzegovina, Iceland, Liechtenstein, Monaco, Norway, Russia,
      Byelorussia, San Marino, Vatican, Moldavia and
  Ukrainia.

            

    

     

    
      	
              1.10 
      

            	
              “Trial
      Period” means the period in which Swisscom has installed a beta version of
      the Licensed Products for field testing, but no longer than eight (8)
      weeks from Effective Date.

            

    

     

    1.11
“Updates” means error corrections, bug fixes, patches and work around to the
Licensed Product(s).

     

    
      	
              2.  
       

            	
              GRANT
      OF LICENSE

            

    

    
      	
              2.1  

            	
              Exclusivity
      in the Territory. Subject to the terms of this Agreement, Superclick
      grants to Swisscom an exclusive license for the Territory (as defined
      above in Section 1.9) to use, modify, sell, distribute, and sublicense the
      Licensed Products.

            

    

    
      	
              2.2  

            	
              Non-Exclusivity.
      Subject to the terms of this Agreement, Superclick grants to Swisscom a
      non-exclusive license for outside of the Territory, including North
      America (pursuant to terms and conditions outlined in Annex 3) to use,
      modify, sell, distribute and sublicense the Licensed
    Products.

            

    

    
      	
              2.3  

            	
              Superclick
      shall grant to Swisscom the right to access and modify the source code of
      the Licensed Products through the duration of this
    Agreement.

            

    

    
      	
              2.4  

            	
              In
      addition to Section 6.3 Superclick shall undertake to provide Swisscom
      with know-how over a 180 day period after the Effective Date, which is
      required in order to use and modify the Licensed Products within the scope
      of this Agreement.

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              2.5  

            	
              Software
      Upgrades. Superclick shall undertake to issue from time to time, of which
      Swisscom shall be notified by Superclick regularly, any improved, modified
      or corrected version to current versions of the Licensed Products which it
      shall make automatically and immediately available to Swisscom without any
      additional cost to Swisscom in the most actual and up to date version.
      Superclick commits to continuously invest and enhance the Licensed
      Product(s) during the Term.

            

    

    
      	
              2.6  

            	
              Specification
      of the Hardware. Superclick will provide Swisscom with the specification
      of the certified hardware required for the Licensed
    Products.

            

    

    
      	
              2.7  

            	
              Sublicenses.
      Sublicenses by Swisscom will contain substantially equivalent restrictions
      and confidentiality as contained in Sections 4 and 11.1 of this Agreement.
      Superclick acknowledges and agrees that the term of the sublicenses
      granted may be perpetual.

            

    

    
      	
              2.8  

            	
              At
      Superclick’s written request, but no more than once annually, Swisscom
      shall furnish Superclick with a signed report verifying that the Licensed
      Product(s) are being used pursuant to the provisions of this
      Agreement.

            

    

    
      	
              3.  

            	
              OWNERSHIP

            

    

    
      	
              3.1  

            	
              The
      Licensed Products contain confidential information of Superclick and all
      copyright trademarks and other intellectual property rights in the
      Licensed Products are and remain exclusive property of Superclick (other
      than, in accordance with Section 3.2., improvements and modifications to
      the Licensed Products developed by Swisscom). The License does not
      constitute a sale of the Licensed Product(s) or any portion or copy
      thereof. Notwithstanding the foregoing, Superclick grants to Swisscom the
      access to the source code and the right
to:

            

    

    
      	
              3.1.1  

            	
              Use
      the Licensed Products, which includes but is not limited
    to:

            

    

    
      	
              3.1.1.1  

            	
              Make
      back-up copies of the software and the
  Documentation

            

    

    
      	
              3.1.1.2  

            	
              Reverse
      compile, copy or adapt the whole or part of the Licensed Products and the
      Documentation

            

    

    
      	
              3.1.1.3  

            	
              Develop
      and modify, create off-shoots of the Licensed Products and the
      Documentation

            

    

    
      	
              3.1.1.4  

            	
              Get
      access to all available know-how, necessary to use the Licensed Products
      and the Documentation

            

    

    
      	
              3.1.2  

            	
              Distribute
      and sell the Licensed Products, which includes, but is not limited
      to:

            

    

    
      	
               
      

            	
              Making
      the Licensed Products available to third parties (including but limited to
      Swisscom’s partners, customers in the hospitality industry). In the event
      of a conflict of interest in relation to a third party in the Territory,
      the Parties shall discuss the situation and use reasonable efforts to
      agree on a solution in good faith.

            

    

     

    
      	
              3.2  

            	
              Intellectual
      Property Rights on the Application. Where Swisscom develops any new
      intellectual property on the Licensed Products and related source code
      (“Swisscom Developed IP”), Swisscom shall retain full ownership of the
      Swisscom Developed IP. However, in all instances, under the terms and
      conditions of the Agreement, Superclick shall retain full ownership of the
      Licensed Products and related source
code.

            

    

    
      	
              3.3. 

            	
              Pre-Emption
      Rights. In case of an intended sale of the entire or parts of the Licensed
      Products to a third party, in case of a change of ownership of Superclick,
      or in case of Superclick becoming subject to insolvency proceedings
      Swisscom shall have the first right to purchase such Licensed Products at
      a price matching or exceeding the highest offer for the acquisition of the
      Licensed Product(s) from the proposed third party
    purchaser.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              4. 
        

            	
              RESTRICTIONS

            

    

    
      	
              4.1  

            	
              Swisscom
      shall be allowed to sell, offer to sell, or promote the Licensed Products
      outside the Territory in accordance with the terms and conditions
      specified in Annex 3.

            

    

    
      	
              4.2  

            	
              Swisscom
      shall not remove any product identification in the source code, copyright
      or other notices from the Licensed
Product(s).

            

    

    
      	
              4.3  

            	
              Swisscom
      agrees that it will not without Superclick’s written consent discount the
      selling price of the native Licensed Product(s) in the form delivered to
      Swisscom at the Delivery Date, which shall mean the SIMS, MAMA and MDS
      applications in the form marketed and sold by Superclick, in order to
      promote the sales of other products of Swisscom or the Application, or for
      any reason whatsoever and that it will conduct all price negotiations in
      good faith on an arms length basis.

            

    

    
      	
              5. 
        

            	
              TECHNICAL
      SUPPORT, MAINTENANCE AND
DEVELOPMENT

            

    

    
      	
              5.1  

            	
              Technical
      Support. (a) During the Term Superclick shall provide the Technical
      Support set forth in Annex 8. In furtherance of, and in addition to,
      Sections 2.4 and 2.5 above, Superclick shall provide Swisscom with
      Licensed Product enhancements as made generally available as well as the
      error corrections and bug fixes. (b) Swisscom will provide all required
      support and interface to their end-user. (c) Swisscom will have one (1)
      interface to Superclick’s Customer Support
  organization.

            

    

    
      	
              5.1.1
        

            	
              Post-Termination
      Support. Should Swisscom request to receive further Technical Support,
      training, Software Maintenance and development after termination or expiry
      of the Agreement, the Parties shall in good faith agree on such revised
      terms of a new Agreement.

            

    

    
      	
              5.2. 
      

            	
              Superclick
      Enhancements to the Licensed Products. Superclick shall promptly inform
      SCE on any new software developments that it has undertaken of the
      Licensed Products and of any new software, that will be developed by
      Superclick in addition to the software that is part of the Licensed
      Products. SCE shall have the right to conduct audits of Superclick’s
      development efforts at any time, throughout the term of the MLA, upon
      written notice to Superclick no less than 15 business days in advance of
      the requested audit date.

            

    

     

    
      	
              5.3  
      

            	
               Incidental
      Expenses. Swisscom shall reimburse Superclick for actual, reasonable
      travel expenses including hotel expenses incurred by Superclick in
      connection with on-site services requested by Swisscom in accordance with
      its applicable cost policy. Labor expenses shall be assumed by
      Superclick.

            

    

     

    
      	
              5.4 
      

            	
               Maintenance.
      All enhancements and updates that Superclick makes to the Licensed
      Products for its own commercial purposes are included as part of
      Superclick’s maintenance obligation. Any enhancements and updates that
      require Superclick to enter into royalty and/or licensing agreements with
      third parties shall be excluded from this scope, including any mark-up in
      pricing on Superclick’s behalf. Enhancements and updates as defined in
      this Section 5.3 are exclusive of customization projects by Superclick on
      third-party’s behalf and on any new products. If Swisscom chooses to use
      some or all of these enhancements and/or updates, the Parties agree to
      negotiate the terms in good faith.

            

    

     

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              5.5 
      

            	
               Development.
      In addition to software developments that Superclick may undertake on the
      Licensed Products, Superclick shall undertake to provide for 160 hours per
      calendar year of development on the Licensed Products in coordination with
      Swisscom.

            

    

     

    5.5.1
Additional Development Hours. Swisscom shall be entitled to request further
development hours from Superclick, which will be charged at USD $175.00 per
hour.

     

    5.5.2. A
first estimation of a successful implementation is defined in Schedule B
attached.

     

    
      	
              6. 
        

            	
              PAYMENT
      PROVISIONS AND REPORTING.

            

    

    
      	
              6.1  

            	
              License
      Fees. The License Fee to be paid by Swisscom to Superclick is USD Seven
      Hundred Thousand ($700,000.00).

            

    

    
      	
              6.2  

            	
              Payment
      Schedule. The License Fee shall be paid Two Hundred Thousand ($200,000)
      Dollars (“Initial Payment”) on Delivery Date, Five Hundred Thousand
      ($500,000) dollars upon the Acceptance
Date

            

    

    
      	
              6.3  

            	
              Recurring
      Fees. Recurring Fees to be paid by Swisscom to Superclick for provisioning
      by Superclick to Swisscom of know-how, software maintenance, software
      updates, technical support and software development are Three Hundred and
      Ninety Thousand ($390,000) Dollars over the Term of the Agreement to be
      paid pro rata in the amount of Thirty-Two Thousand and Five Hundred
      Dollars ($32,500) quarterly upon invoice issued by Superclick and to be
      paid by Swisscom for the first time on Acceptance
  Date.

            

    

    
      	
              6.3.1  

            	
              Recurring
      Fees Renewed Term. Recurring Fees to be paid by Swisscom to Superclick in
      the event that the Agreement continues after the Term has expired, shall
      be One Hundred and Thirty Thousand ($130,000) Dollars to be paid by
      Swisscom per additional year (pro rata, in quarterly installments) by
      which the Term will be extended.

            

    

    
      	
              6.4  

            	
              Referral
      Fees and Commissions. See Annexes 2 and
3.

            

    

    
      	
              6.5  
      

            	
              Recurring
      Fees. Late payments will bear interest at the rate of 1% per month to
      cover Superclick’s costs of collection as well as interest, or, if lower,
      the maximum rate allowed by law. 

            

    

     

    
      	
              7. 
        

            	
              TERMS
      AND TERMINATION

            

    

    
      	
              7.1  

            	
              Term.
      The initial term of this Agreement shall be for three (3) years from the
      Acceptance Date (the “Term”). Thereafter, this Agreement shall
      automatically be extended for one year periods, pursuant to the terms and
      conditions outlined in 6.3.1., until terminated by Swisscom by at least 6
      (six) months’ prior written notice.

            
	7.2
       	This
      Agreement shall become effective as of the Effective Date.
	 	 
	7.3  
      	Termination.

    

                      

    7.3.1 The
Agreement may be terminated by either Party if (a) the other commits any
material breach of any term of this agreement and which shall not have been
remedied within 60 days of a written request to remedy the same or (b) subject
to Swisscom’s rights under Section 3.3, by a Party forthwith by notice in
writing if one Party becomes insolvent or takes significant steps for its
winding up.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    Provided,
however, that upon any such termination by either one of the Parties, such Party
may exercise any rights and remedies provided by contract or at law or equity in
order to seek monetary compensation or damages or an injunction for purposes of
seeking to enjoin use of any license under this Agreement for uses not permitted
under this Agreement, provided further, however, any such termination shall not
modify or shorten the term of any license granted by Superclick to Swisscom
under this Agreement.

     

    7.3.2 If,
during the Trial Period, Swisscom determines in its sole discretion, that the
Licensed Products do not meet its requirements, then Swisscom shall be entitled
to terminate the Agreement. In such case Swisscom shall return or destroy all
copies of the Licensed Product(s) and all portions thereof (whether or not
modified or incorporated with or into other software) and so certify to
Superclick.

     

    7.3.3
Effect of Termination. Upon termination of this Agreement, Swisscom shall
immediately cease further distribution or sale of the Licensed Product(s) ;
provided, however, that the termination or expiration of this Agreement shall
not affect any sublicenses to the Licensed Products granted by Swisscom in
accordance with this Agreement prior to such termination or expiration. The
parties’ rights and obligations under Sections 8, 9, 10, 11 shall survive the
termination of this Agreement.

     

    
      	
              7.4
        

            	
              Break-Up
      Fee. If, during the Trial Period, Swisscom reasonably determines, in its
      sole discretion,  that the Licensed Product do not meet its
      requirements and terminates the Agreement, Superclick shall immediately
      repay to Swisscom One Hundred Thousand Dollars ($100,000) of the Initial
      Payment paid to it by Swisscom upon the execution of the Agreement and
      keep One Hundred Thousand Dollars ($100,000) of the Initial Payment as
      break-up fee (the “Break-Up Fee”).

            

    

     

    
      	
              7.5
        

            	
              Usage
      After the Term. After the Term of this Agreement has expired but the
      Agreement continues to be extended in accordance with Section 7.1,
      Swisscom shall (a) make payment to Superclick in accordance with Section
      6.3.1 and (b) comply with the terms and conditions of Annex 2, Annex 3,
      Annex 4 and Annex 6. In case of Termination, Swisscom shall not be allowed
      any further use and modification of the Licensed Products in new
      properties. However, Swisscom shall be allowed continued use and modify
      the Licensed Products in existing properties.

            

    

     

    
      	
              8.  
       

            	
              PATENT
      AND COPYRIGHT INFRINGEMENT

            

    

    Superclick
will indemnify and hold harmless Swisscom and will defend any action brought by
a third party against Swisscom to the extent that such action is based on a
claim that the Licensed Product(s) or any part thereof used within the scope of
the license granted herein, infringe a copyright, trade secret or United States
or foreign patent. Superclick will bear the expenses of such defense, as
incurred, and pay any damages and attorney’s fees awarded by a court of
competent jurisdiction to the extent attributable to such claim, provided that:
(a) Swisscom notifies Superclick promptly in writing of such claim, provided
that the failure to provide notice 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    shall not
relieve Superclick of its responsibility under this Secition 8, (b) Superclick
has sole control of the defense and all related settlement negotiations; and (c)
Swisscom provides Superclick with assistance and information required to perform
Superclick's obligations under this Section 8. Superclick shall have no
liability for any claim of infringement based upon (i) use of a superseded or
altered release of Licensed Product(s) (unless the alteration was made or
authorized by Superclick) if the infringement would have been avoided through
the use of a current unaltered release of the Licensed Product(s) which
Superclick provided to Swisscom free of charge, (ii) use of the Licensed
Product(s) combined with other products, processes or materials where the
alleged infringement arises solely from such combination, or (iii) use not in
accordance with this Agreement. If the Licensed Product(s) is or in Superclick's
judgment may become the subject of any claim of intellectual property
infringement, or if a court determines that the programs infringe any
intellectual property right then Superclick may at its option and expense either
(i) procure for Swisscom the right under such intellectual property right to use
such  program; or (ii) replace the program with other software deemed
suitable in Swisscom’s sole discretion: or (iii) modify the program to make the
software noninfringing; or, if (i), (ii) and (iii) are commercially impractical,
(iv) remove the program and refund a pro rata portion of the license fees paid
by Swisscom for such program, less an amount for use calculated over a five year
period using straight line depreciation. THE FOREGOING CONSTITUTES SUPERCLICK'S
SOLE LIABILITY FOR INTELLECTUAL PROPERTY INFRINGEMENT AND IS IN LIEU OF ANY
WARRANTIES OF NONINFRINGEMENT, WHICH ARE HEREBY DISCLAIMED.

     

    
      	
              9.  
       

            	
              WARRANTY
      AND DISCLAIMER

            

    

    Superclick
represents and warrants to Swisscom as of the date of this Agreements as
follows

     

    (a)
Superclick has good and marketable title and property in the Licensed Products
(free and unencumbered) (b) Superclick has all requisite corporate power and
authority to execute and deliver this Agreement and take the actions
contemplated hereby (c) Superclick will perform Technical Support, Training,
Software Maintenance and Development with reasonable care and
skill.

     

    Subject
to the conditions and limitations on liability stated herein, Superclick
warrants for a period of ninety (90) days from the delivery of the initial copy
of the final version of each type of program hereunder that such program, as so
delivered, will materially conform to the then-current Documentation and will be
operable in accordance with its intended use. In addition, Superclick warrants
the media on which Licensed Product(s) are contained will be free of defects
under normal use for a period of ninety (90) days following delivery thereof.
This warranty covers only problems reported to Superclick during the warranty
period. ANY LIABILITY OF SUPERCLICK WITH RESPECT TO THE PROGRAM(S) OR THE
PERFORMANCE THEREOF OR DEFECTS THEREIN UNDER ANY WARRANTY, NEGLIGENCE, STRICT
LIABILITY OR OTHER THEORY WILL BE LIMITED EXCLUSIVELY TO PRODUCT REPLACEMENT OR,
IF REPLACEMENT IS INADEQUATE AS A REMEDY OR, IN SUPERCLICK'S OPINION,
IMPRACTICAL, TO REFUND OF THE LICENSEE FEE AND TERMINATION OF THE LICENSE.
EXCEPT FOR THE FOREGOING, THE PROGRAM(S) ARE PROVIDED "AS IS" WITHOUT WARRANTY
OR CONDITION OF ANY KIND, INCLUDING WITHOUT LIMITATION, ANY WARRANTY OR
CONDITION OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. FURTHER,
SUPERCLICK DOES NOT WARRANT, GUARANTEE, OR MAKE ANY REPRESENTATIONS THAT THE
PROGRAM(S) WILL BE FREE FROM BUGS OR THAT USE OF PROGRAM(S) WILL BE
UNINTERRUPTED OR REGARDING THE USE, OR THE RESULTS OF THE USE, OF THE PROGRAM(S)
OR DOCUMENTATION IN TERMS OF CORRECTNESS, ACCURACY, RELIABILITY OR OTHERWISE.
Swisscom understands that Superclick is not responsible for and will have no
liability for hardware, software, or other items or any services provided by any
persons other than Superclick.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              10.  

            	
              LIMITATION
      OF REMEDIES AND DAMAGES, FORCE MAJEURE EXCEPT FOR BODILY INJURY OF A
      PERSON, SUPERCLICK SHALL NOT BE RESPONSIBLE OR LIABLE WITH RESPECT TO ANY
      SUBJECT MATTER OF THIS AGREEMENT UNDER ANY CONTRACT, NEGLIGENCE, STRICT
      LIABILITY OR OTHER THEORY: (i) FOR INTERRUPTION OF USE OR FOR LOSS OR
      INACCURACY OR CORRUPTION OF DATA OR (EXCEPT FOR RETURN OF AMOUNTS PAID TO
      SUPERCLICK FOR UNDELIVERED OR RETURNED NONCONFORMING PROGRAM(S)) COST OF
      PROCUREMENT OF SUBSTITUTE GOODS, SERVICES OR TECHNOLOGY; (ii) FOR ANY
      INDIRECT, INCIDENTAL, CONSEQUENTIAL, EXEMPLARY OR PUNITIVE DAMAGES
      INCLUDING, BUT NOT LIMITED TO, LOSS OF PROFITS; OR (iii) FOR ANY MATTER
      BEYOND ITS REASONABLE CONTROL. SWISSCOM SHALL NOT BE RESPONSIBLE OR LIABLE
      WITH RESPECT TO ANY SUBJECT MATTER OF THIS AGREEMENT UNDER ANY CONTRACT,
      NEGLIGENCE, STRICT LIABILITY OR OTHER THEORY FOR ANY INDIRECT, INCIDENTAL,
      CONSEQUENTIAL, EXEMPLARY OR PUNITIVE DAMAGES INCLUDING, BUT NOT LIMITED
      TO, LOSS OF PROFITS.

            

    

    

     

    
      	
              11.  

            	
              MISCELLANEOUS

            

    

    

     

    
      	
               
      

            	
              11.1

            	
              Should
      Superclick grant a license to directly or indirectly use, distribute
      and/or sell the entire or part of the Licensed Products (“License Rights”)
      to a party other than Swisscom (“Third Party”), and should such Third
      Party directly or indirectly use, sell or distribute the entire or parts
      of the Licensed Products in the Territory, Superclick shall have to remedy
      this situation within 90 days of having granted such all or parts of the
      License Rights. Should such Third Party or any other party to which it has
      transferred all or parts of the License Rights continue to use all or
      parts of the License Rights after this 90 day period in the Territory, and
      Superclick has not demonstrated to Swisscom that it has cured the
      situation, Superclick shall pay to Swisscom a contract penalty of USD
      Fifty Thousand ($50,000) Dollars per infringement of its exclusivity
      undertakings as set forth under Section 2.1 in connection with this
      Section 11.1 per month, as long as the infringement will continue. The
      same applies mutatis
      mutandis in case that Superclick continues to sell the Licensed
      Products to current customers in the Territory. Swisscom hereby
      acknowledges, however, that the Licensed Products have been heretofore
      distributed, sold and used in the Territory by other Superclick customers
      and partners (to be listed in Annex 10 to this Agreement) and these usages
      are an exception to this Section 11.1. The payment of such penalty shall
      in no case be considered as a waiver from Swisscom of its exclusivity
      rights in the Territory as defined. The penalty shall be without prejudice
      to any rights or remedies available to, or any obligations or liabilities
      accrued to, either Party under the terms of the
  Agreement.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              11.2

            	
              Should
      Swisscom sell the Licensed Products at any time during the term of this
      Agreement or thereafter in violation of the terms and conditions under
      Annex 2, Annex 3, and/or Annex 4, Swisscom shall have the right to remedy
      this situation within 90 days of having been notified by Superclick that
      it has committed such violation(s). Should the violation continue without
      being cured by Swisscom after 90 days of its notification by Superclick,
      and Swisscom has not demonstrated to Superclick that it has cured the
      situation, Swisscom shall pay to Superclick a contract penalty of USD
      Fifty Thousand ($50,000) Dollars per infringement of Annex 2, Annex 3
      and/or Annex 4 in connection with this Section 11.2 per month, as long as
      the infringement will continue. The penalty shall be without prejudice to
      any rights or remedies available to, or any obligations or liabilities
      accrued to, either Party under the terms of the
  Agreement

            

    

     

    
      	
               
      

            	
              11.3

            	
              Confidentiality.
      Except as expressly permitted by this Agreement, neither Party shall
      disclose to any third party any information provided by the other Party
      which is marked confidential or proprietary or would reasonably be
      understood to be confidential or proprietary. The Parties recognize and
      agree that there is no adequate remedy at law for breach of this Section
      11.3, that such a breach would irreparably harm Superclick or Swisscom, as
      the case may be, and that each Party is entitled to equitable relief
      (including, without limitation, injunctions) with respect to any such
      breach or potential breach in addition to any other remedies. The
      obligations of this Section 11.3 shall survive the expiration or
      termination of this Agreement.

            

    

     

    
      	
               
      

            	
              11.4

            	
              Use
      of name and logo. Superclick grants Swisscom, free of charge, the rights
      of use of its logo, name and, if necessary, trademarks for its own
      marketing uses during the term of this Agreement. Swisscom shall however
      not be obliged to display Superclick’s name or logo on its user interface
      to its partners or end users.

            

    

     

    
      	
               
      

            	
              11.5

            	
              Governing
      Law. THIS AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF DELAWARE
      WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES AND WITHOUT REGARD TO THE
      1980 UN CONVENTION ON THE INTERNATIONAL SALE OF
  GOODS.

            

    

     

    
      	
               
      

            	
              11.6

            	
              Arbitration.
      Any dispute or claim arising out of or related to this Agreement, or the
      interpretation, making, performance, breach or termination thereof, shall
      be finally settled by binding arbitration in Washington D.C., Delaware (or
      such other location as is mutually agreed upon in writing by the Parties)
      under the American Arbitration Association International Arbitration
      Rules, by one arbitrator appointed in accordance with said Rules, provided
      that at the request of either Party, the arbitration shall be conducted by
      three arbitrators with each Party selecting one arbitrator and the third
      arbitrator selected in accordance with the Rules. Judgment on the award
      rendered by the arbitrators may be entered in any court having
      jurisdiction thereof. The arbitrator shall apply Delaware law to the
      merits of any dispute or claim, without reference to rules of conflict of
      law or the 1980 UN Convention on the International Sale of Goods. The
      Parties may apply to any court of competent jurisdiction for a temporary
      restraining order, preliminary or permanent injunction, or other interim
      or conservatory relief, as necessary, without breach of this arbitration
      agreement and without any abridgment of the powers of the arbitrators. At
      the request of either Party, the arbitrators will enter an appropriate
      protective order to maintain the confidentiality of information produced
      or exchanged in the course of the arbitration proceedings. The Parties
      agree that, any provision of applicable law notwithstanding, they will not
      request, and the arbitrators shall have no authority to award, punitive or
      exemplary damages against any Party. The costs of the arbitration,
      including administrative and arbitrator's fees, shall be shared equally by
      the parties. Each Party shall bear the cost of its own attorneys' fees and
      expert witness fees. The arbitral proceedings and all pleadings and
      written evidence shall be in the English language. Any written evidence
      originally in another language shall be submitted in English translation
      accompanied by the original or true copy
  thereof.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              11.7

            	
              Export
      of Licensed Product(s). Swisscom will not remove or export from the United
      States or re-export from anywhere any part of the Licensed Product(s) or
      any direct product thereof except in material compliance with and with all
      licenses and approvals required under applicable export laws and
      regulations.

            

    

     

    
      	
               
      

            	
              11.8

            	
              Assignment.
      Neither this Agreement nor any License granted hereunder is assignable or
      transferable by Swisscom without the prior written consent of Superclick,
      which consent shall not be unreasonably withheld or delayed; any attempt
      to do so shall be void; provided, however, that Swisscom may assign or
      transfer this Agreement, in whole to any of its subsidiaries or any
      company belonging to Swisscom AG group, in connection with a merger,
      acquisition or sale of assets. This Agreement is not assignable or
      transferable by Superclick without the prior written consent of Swisscom,
      provided, however, that subject to Section 3.3. above, Superclick may
      assign this Agreement without consent from Swisscom in connection with a
      merger, acquisition or sale of
assets.

            

    

     

    
      	
               
      

            	
              11.9

            	
              Severability.
      In the event any provision of this Agreement or portion thereof is held to
      be invalid or unenforceable then such provision shall be deemed stricken
      or modified to the minimum extent necessary and the remaining provisions
      of this Agreement remain in full force and effect.

            
	 	 	 
	 	11.10	      
              Waiver
      and Amendment. The waiver by either party of any default or breach of this
      Agreement shall not constitute a waiver of any other or subsequent default
      or breach.

            
	 	 	 
	 	11.11
      	      
              Press
      Release. Swisscom will approve a press release issued by Superclick
      stating the nature of the Agreement no later than 3 business days after
      the Effective Date. In addition, the Parties acknowledge and agree that
      Superclick and Swisscom shall be entitled to comply with the information
      obligations to the public as set out in the company laws or security laws
      of the U.S.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

    
      	 	 	 
	 	11.12	      
              Entire
      Agreement. Both Parties agree that this Agreement and the Annexes hereto
      and any duly executed Schedules constitute the complete and exclusive
      statement of the mutual understanding of the Parties and supersede and
      cancel all previous written and oral agreements and communications
      relating to the subject matter hereof. Any waivers or amendments shall be
      effective only if made in writing by non-preprinted agreements clearly
      understood by both Parties to be an amendment or waiver and signed by a
      duly authorized representative of each Party. In the event of a conflict
      between the terms of this Agreement and any Schedule the terms and
      conditions of this Agreement shall
apply.

            

    

     

     

    
      
        	
                Superclick,
      Inc.

              	
                Hospitality
      Services Plus SA

              
	 
      	 
      	 
      
	
                By:
      _____________________

              	
                By:
      _____________________

              	
                By:
      _____________________

              
	 
      	 
      	 
      
	
                Name:
      ___________________

              	
                Name:
      ___________________

              	      
                Name:
      ___________________

              
	 
      	 
      	 
      
	
                Title:
      ____________________

              	
                Title:
      ____________________

              	
                Title:
      ____________________

              
	 
      	 
      	 
      
	
                Date:
      ____________________

              	
                Date:
      ____________________

              	 
      

      

     

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    

    
      
        	
                SCHEDULE
      A

              	 
      
	 	 
	
                LICENSED
      PRODUCTS

              	 
      
	 	 
	
                Date
      October 27, 2006

              	
                SIMS
      version 1.5.4r14.2

              
	 	 
	 
      	
                MaMA
      version 1.

              
	 	 
	 
      	
                MDS
      version 1.4

              

      

    

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    SCHEDULE
B

     

    

     

    
      	
              ITEM

            	
              Notes

            	
              Pilot
      SPCK

            	
               Pilot
      SCE

            	
               Final
      SPCK

            	
               Final
      SCE

            
	 	 	 	 	 	 
	
              OpenVPN

            	
              Initial
      testing was successful, the OpenVPN software and config needs to be
      integrated in SIMS.

            	 
      	
              2.00

            	 
      	 
      
	 	 	 	 	 	 
	
              Flat
      File Config

            	
              store
      the whole SIMS configuration in a single XML file.

            	 
      	
               
      

            	
                    10.00

            	 
      
	 	 	 	 	 	 
	
              Light
      updates

            	
              A
      daemon needs to be written to  make the radius request at
      configurable intervals ( cron )

            	 
      	
              4.00

            	 
      	
              4.00

            
	 	 	 	 	 	 
	
              DNS
      trick

            	
              Make
      SIMS authoritative for clbng.sceur.ch and implement the same trick, we
      need  a sample certificate from Marco to confirm
      this.

            	
              2.00

            	 
      	 
      	 
      
	 	 	 	 	 	 
	
              Implement
      bandwidth quotas

            	
              Max-output
      –rate and Max-input-rate are implemented already. We need to implement the
      maximum-input and maximum-output octects attributes and handle bandwidth
      quotas.

            	
              3.00

            	 
      	 
      	 
      
	 	 	 	 	 	 
	
              Radius
      Interim

            	
              1.
      Radius Interim needs to be implemented in the C code of the PHP radius
      extension

              2.
      Add Interim messages to the port bouncing daemon or radius_update.php (
      radtmp  can store the last_interim timestamps) + Support
      for   Acct-Interim-Interval  attribute

              3.
      Implement Radius fall back ( secondary radius )

              4.
      Implementing Radius Stop (
      Acct-Terminate-Cause   )

            	 
      	
              7.00

            	 
      	 
      
	 	 	 	 	 	 
	
              Re-Authentication

            	
              Reauthentication
      needs to be added to the toolbar code (?) and to the port hopping daemon
      to extend automatically the subscriptions before a user is disconnected,
      if more time became available.

            	
            	 
      	 
      	
              2.00

            
	 	 	 	 	 	 
	
              Shaper

            	
              1)
      We will modify the existing code to use dynamic classes with configurable
      guaranteed speeds and implement the AVPAIR bandwidth-level as priority
      (4hr)

            	
              0.50

            	 
      	 
      	 
      
	 	 	 	 	 	 
	
              VBN

            	
              Add
      ARP ping at GC time to keep clients alive when they are
    idle

            	
              0.50

            	 
      	 
      	 
      
	 	 	 	 	 	 
	
              SNMP

            	
              Need
      to add a OID to return the number of connected users and other MIBs.
      Please view the addinital Mibs.XLS  file

            	 
      	
              6.00

            	 
      	 
      
	 	 	 	 	 	 
	
              Login
      Page

            	
              Complete
      the remaining parameter list

            	 
      	
              1.00

            	 
      	 
      
	 	 	 	 	 	 
	
              MAMA
      LDAP

            	
              LDAP
      authentication with the Swisscom User DB : only the username and password
      is verified through the LDAP. If the user exists in LDAP but not in MAMA
      its created from a default template.

            	 
      	 
      	 
      	
              1.50

            
	 	 	 	 	 	 
	
              Marco
      trick

            	
              Trick
      to reach unreachable ( no gateway, same IP ) devices from the
      internet

            	 
      	 
      	
              0.50

            	 
      
	 	 	 	 	 	 
	
              Updates

            	
              Merge
      packages and SIMS updates, provide an API for it.

            	 
      	 
      	
              5.00

            	 
      
	 	 	 	 	 	 
	
              AP

            	
              Symbol,
      Colubris AP need to be certified with SIMS

            	
              1.00

            	 
      	 
      	 
      
	 	 	 	 	 	 
	
              PMS

            	
              SHS
      billing interface ( TCP/Bidirectional )

            	 
      	 
      	 
      	
                     5.00

            
	 
      	
              Days

            	
              7.00

            	
              20.00

            	
              15.50

            	
              12.50

            
	 	 	 	 	 	 
	 
      	
              Hrs

            	
              56.00

            	
              160.00

            	
              124.00

            	
              100.00

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    ANNEX
1

     

    TIMELINES

    

     

    
      	
              1.  

            	
              LOI
      executed on 1 October, 2006

            

    

    
      	
              2.  

            	
              Pilot
      Period begins upon signature of the LoI and lasts until 20 November
      2006.

            

    

    
      	
              3.  

            	
              MLA
      is executed on the Effective Date.

            

    

    
      	
              4.  

            	
              Delivery
      Date is 1 week after the Effective
Date.

            

    

    
      	
              5.  

            	
              Trial
      Period begins on the Effective Date and lasts for a period of eight
      weeks.

            

    

    
      	
              6.  

            	
              Acceptance
      Date is the day following the expiration of the Trial Period, but no later
      than 60 days after the Effective Date or otherwise agreed between the
      Parties.

            

    

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    ANNEX
2

     

    TERMS
AND CONDITIONS FOR EUROPE

     

    
      	
              1.  

            	
              The Territory. As
      defined in Section 1.11 of the
Agreement.

            

    

    
      	
              2.  

            	
              Swisscom Right of
      Refusal. Superclick shall introduce to Swisscom each proposed
      installation for North American brands under contract with Superclick that
      it desires to sell into the Territory and Swisscom shall retain the right
      to:

            

    

    
      	
              a.  

            	
              Deny
      Superclick the right to sell its proprietary SIMS, MAMA and MDS
      based-products into the Territory through the proposed installation and
      offer its own proprietary Licensed Products-based solution into the
      Territory; or

            

    

    
      	
              b.  

            	
              Grant
      Superclick the right to sell its proprietary SIMS, MAMA and MDS
      based-products into the Territory under its own terms and conditions of
      selling and compensation.

            

    

    
      	
              3.  

            	
              Compensation and
      Commissions.

            

    

    
      	
              a.  

            	
              North
      American Brand-Driven Installations. The compensation and commission
      structure for North American brand-driven installations brought by
      Superclick shall be:

            

    

    
      	
              i.  

            	
              If
      Swisscom installs its own proprietary Licensed Product Swisscom shall pay
      to Superclick a referral fee of $500 per property that installs the
      Licensed Products.

            

    

    
      	
              ii.  

            	
              If
      Swisscom decides to promote any Superclick advertising offering, Swisscom
      and Superclick shall net revenue-share on a 50/50 basis on all advertising
      revenue Superclick generates on the Licensed
  Products.

            

    

    
      	
              4.  

            	
              Right to Sell
      Advertising. In the instances of 2(b), Superclick shall retain the
      right to sell advertising on the Licensed Products in the
      Territory.

            

    

     

     

    
      	
                    
                Place
      / Date:

              

            	
            

    

     

    
      	
                    
                Hospitality
      Services Plus SA

              

            	
            

    

     

    
      	
              By:
      ___________________

            	
              By :
      ___________________

            

    

     

    
      	
              Name:  ________________

            	
              Name:
      _________________

            

    

     

    
      	
                    
                Place
      / Date:

              

            	
            

    

     

    
      	
              Superclick
      Inc.

            	 

    

     

    
      	
                    
                By:
      ___________________

              

            	
            

    

     

    
      	
                    
                Name:  _________________

              

            	
            

    

     

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    ANNEX
3

     

    TERMS
AND CONDITIONS FOR NORTH AMERICA AND THE WORLD

     

    
      	
              1.   
       

            	
              North America. “North
      America” shall mean Mexico, the United States and
  Canada.

            

    

    
      	
              2.   
       

            	
              The World. “The World”
      shall mean all states and countries outside of the Territory and excluding
      North America.

            

    

    
      	
              3.   
       

            	
              Installations and Compensation
      in North America:

            

    

    3.1. Installations in existing Swisscom
properties. Swisscom will be allowed to install the Licensed Products in
Swisscom properties (“Existing Swisscom Properties”) under contract at the
Effective Date. Swisscom shall supply a complete list of the Existing Swisscom
Properties in Annex 9.

     

    3.2. Compensation and Commissions.
Swisscom shall pay to Superclick $500 per Swisscom property for the installation
of Licensed Products installed in North America.

     

    3.3. 18 Months Reprieve in North America.
Subject to the Swisscom Excepted Brand defined in Annex 4, Swisscom shall
not install Licensed Products in any North American property in addition to
those defined under section 3.1 above and Annex 9 without Superclick’s written
authorization for the first Eighteen (18) months of the Initial Term of the
MLA.

     

    4. Installations and Compensation in The
World:

     

    Swisscom
shall be free to install the Licensed Products in the World subject to the
following conditions:

     

    
      	 	a.	      
              Swisscom
      shall adhere to the pricing as set forth in Annex 5, which shall be
      subject to change at Superclick’s sole discretion for any installations in
      the World throughout the Term of the Agreement.

            
	
               
      

            	
              b.

            	
              Most
      Favored Customer Status. Superclick represents, warrants, and covenants
      that: (a) all fees and other amounts charged to or payable by Swisscom
      (including variable unit or other incremental costs or charges) will be as
      low as those charged for similar services that Superclick or any of its
      affiliates charges to its or their most favored customer; and (b) the
      terms and conditions under which such service or product is provided are
      no less favorable to those under which Superclick or any of its affiliates
      provides services or products to its or their most favored customer,
      regardless of industry or geography (“MFC Terms and Pricing”). For greater
      certainty, fees and other amounts charged to or payable by, and the terms
      and conditions under which products or services are provided will at no
      time be less favorable than those with, any other customer of Superclick
      or its affiliates for similar products or services. Once each year, the
      Chief Financial Officer of Superclick will provide a written certificate
      to Swisscom attesting to compliance of with this Section. If Superclick
      breaches this Section 4(b), Swisscom will either be retroactively
      reimbursed by Superclick to the date Superclick offered a more favorable
      price and/or will be entitled to amend the terms and conditions to the
      more favorable terms and conditions otherwise
  offered.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

                                                                                        

    
      	Place
      / Date: 	Place
      / Date:
	 	 
	
              Hospitality
      Services Plus SA

            	
              Superclick
      Inc.

            
	 	 
	By:
      ________________Name: ________________	      
              By:
      ___________________

            
	 	 
	By:  _______________
      Name: ________________	      
              Name:  ________________

            

    

     

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    ANNEX
4

     

    TERMS
AND CONDITIONS FOR CERTAIN NORTH AMERICAN BRAND-DRIVEN INSTALLATIONS
(INTERCONTINENTAL HOTEL GROUP, DOLCE INTERNATIONAL AND WESTMOUNT E.U. IN THE
CASE OF SUPERCLICK AND HILTON HOTEL GROUP IN THE CASE OF SWISSCOM)

     

    
      	
              1.  

            	
              Territory. As defined in
      Section 1.11 of the Agreement.

            

    

    
      	
              2.  

            	
              Superclick Excepted Brands in
      Europe.

            

    

    
      	
               
      

            	
              Superclick
      intends to install its proprietary SIMS, MAMA and MDS product in hotels in
      the Territory under the InterContinental Hotel Group, Dolce International
      and Westmount E.U. brands (the “Superclick Excepted Brands”). The
      Superclick Excepted Brands and their properties shall be excluded from
      section 2(a) of Annex 2.

            
	 	 
	
              3.  
      

            	      
              Swisscom Excepted Brands in
      North America. Swisscom intends to install its proprietary products
      embedded with the Licensed Products in Hilton Hotel Group properties
      throughout North American. Swisscom shall be excepted from the 18 month
      reprieve as defined in section 3.3. of Annex
  3.

            

    

     

    
      	
               
      

            	
              Subject
      to the applicability of the provisions in Annex 6, it is the understanding
      of both Parties that no additional compensation shall be due by either
      Party in relation to Sections 2 and 3 of this Annex
  4.

            

    

     

    
      	
                    
                Place
      / Date:

              

            

    

     

    
      	
                    
                Hospitality
      Services
Plus  SA

              

            

    

     

    
      	
                    
                By:
      ______________  Name:______________

              

            

    

     

    
      	
                    
                By:
      ______________ Name:
  ______________

              

            

    

     

     

    
      	
                    
                Place
      / Date:

              

            

    

     

    
      	
              Superclick
      Inc.

            	
              :

            

    

     

    
      	
                    
                By:
      ___________________

              

            

    

     

    
      	
                    
                Name:  ________________

              

            

    

     

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    ANNEX
5

     

    PRICE
LIST (as of today, subject to changes)

     

    

    
      N.
AMERICAN PRICE LIST

       

    

    
      
        	 
      	 
      	 	
                US

              	 
	
                Item
      No.

              	
                Item
      Description

              	 	
                Price

              	 
	 
      	
                SUPPORT

              	 	 	 
	 	 	 	 	 
	
                SCRC00

              	
                Instruction
      Cards Wired/Wireless/both - Lang. 1 or 2 Eng/FR/SP(Pack of
    50)

              	 	$	50	 
	 	 	 	 	 	 
	
                SC-INST-E1

              	
                Installation
      Ethernet switches, WAPs

              	 	$	325	 
	 	 	 	 	 	 
	
                SC-INST-D1

              	
                Installation
      DSLAM, Splitter, cables and in-room devices; per room

              	 	$	125	 
	 	 	 	 	 	 
	
                SC-PSS

              	
                Superclick
      Switch/WAP Programming

              	 	$	100	 
	 	 	 	 	 	 
	
                SCHD04

              	
                BRONZE
      - 24/7/365 HELP DESK / GUEST ROOM

              	 	$	1.50	 
	 	 	 	 	 	 
	
                SCHD03

              	
                SILVER
      - 24/7/365 HELP DESK / GUEST ROOM (Help Desk, NOC )

              	 	$	2.00	 
	 	 	 	 	 	 
	
                SCHD02

              	
                GOLD
      - 24/7/365 HELP DESK / GUEST ROOM(HELP DESK, NOC,
Software)

              	 	$	2.50	 
	 	 	 	 	 	 
	
                SCHD01

              	
                PLATINUM
      - 24/7/365 HELP DESK / GUEST ROOM (HELP DESK, NOC, Software, Hardware 1st
      yr )

              	 	$	3.50	 
	 	 	 	 	 	 
	
                SCDM

              	
                Decorative
      desktop module;1 RJ45 Cat5 Cord,1 RJ 11Satin RJ11 Tel-Cord

              	 	$	10	 
	 	 	 	 	 	 
	 
      	
                SERVERS

              	 	 	 	 
	 	 	 	 	 	 
	
                SC
      SMB Server

              	
                Replacement
      SMB VBN GATEWAY SERVER; 1 TO 150 ROOMS

              	 	$	1,271	 
	 	 	 	 	 	 
	
                SC
      ENT Server

              	
                Replacement
      ENTREPRISE TOWER VBN GATEWAY SERVER; 151+ RMS

              	 	$	2,119	 
	 	 	 	 	 	 
	
                SC
      SMB 50

              	
                SIMS
      SMB VBN GATEWAY SERVER; 1 TO 50 ROOMS

              	 	$	2,072	 
	 	 	 	 	 	 
	
                SC
      SMB 150

              	
                SIMS
      SMB VBN GATEWAY SERVER; 51 TO 150 ROOMS

              	 	$	3,631	 
	 	 	 	 	 	 
	
                SC
      ENT 250T

              	
                SIMS
      ENTREPRISE TOWER VBN GATEWAY SERVER; 151 TO 250 RMS

              	 	$	5,186	 
	 	 	 	 	 	 
	
                SC
      ENT 250R

              	
                SIMS
      ENTREPRISE RACK VBN GATEWAY SERVER; 151 TO 250 ROOMS

              	 	$	5,186	 
	 	 	 	 	 	 
	
                SC
      ENT 500T

              	
                SIMS
      ENTREPRISE TOWER VBN GATEWAY SERVER; 250+ ROOMS

              	 	$	6,746	 
	 	 	 	 	 	 
	
                SC
      ENT 500R

              	
                SIMS
      ENTRPRISE VBN GATEWAY SERVER; 250+ ROOMS

              	 	$	6,746	 
	 	 	 	 	 	 
	
                SC
      SSL01

              	
                SIMS  ANNUAL
      SOFTWARE LICENSE 20% OF SERVER VALUE

              	 	 	20	%
	 	 	 	 	 	 
	 
      	
                Options
      and Accessories

              	 	 	 	 
	 	 	 	 	 	 
	
                Billing
      Interface

              	
                Billing
      Interface

              	 	$	1,818	 

      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

               

    
    

    ANNEX
6

     

    TERMS
AND CONDITIONS ON SUPERCLICK ADVERTISING PROMOTION BY SWISSCOM

     

    
      	
              1.  

            	
              Right to Sell
      Advertising.:

            

    

    

     

    
      	
              a.  

            	
              Definition
      : For the purposes of this Annex 6, advertising and marketing inventory
      shall mean any and all ad insertions, ad content, ad partners and brands
      that Superclick has presented to the Hotel  in agreement with
      Swisscom.

            

    

    
      	
              b.  

            	
               In
      accordance with Swissom’s standards and policies, as well as those of its
      customers, Superclick shall retain the right to sell advertising on the
      Swisscom Licensed Products in North America and the
  World.

            

    

    
      	
              c.  

            	
              For
      a period of Eighteen (18) months, and under the condition that Swisscom
      has an existing agreement with the hotel, Swisscom cannot make use of the
      existing advertising and marketing inventory that Superclick has
      introduced to the hotel and that the hotel has distributed through the
      Licensed Products.

            

    

    
      	
              2.  

            	
              Compensation:

            

    

    
      	
              a.  

            	
              IF
      Swisscom decides to promote the Superclick Advertising offering , Swisscom
      and Superclick shall net revenue-share on a 50/50 basis on all advertising
      revenue Superclick generates on the Licensed
  Products

            

    

    

    
      	
              Place
      / Date:

            

    

     

    
      	
              Hospitality
      Services Plus SA

            

    

     

    
      	
              By:
      ________________  Name:
  ________________

            

    

     

    
      	
              By:
      _______________    Name:
      ___________________

            

    

    

     

     

    
      	
              Place
      / Date:

            

    

     

     

    
      	
              Superclick
      Inc.

            	
              :

            

    

     

    
      	
              By:
      ___________________

            

    

     

    
      	
              Name:  ___________________

            

    

     

     

     

     

    
 

    ANNEX
7

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    DOCUMENTATION

     

     

    SIMS
Manual – Located in SIMS Install CD.

     

     

    This
manual is an overview of SIMSä and is designed to
help you understand the features of this product.  The chapters of this
manual contain the following information:

     

     

    
      	
              Chapter
      1

            	
              Overview

            
	
              Chapter
      2

            	
              General
      Use

            
	
              Chapter
      3

            	
              Configuration
      Menu

            
	
              Chapter
      4

            	
              Room
      and Billing Settings Menu

            
	
              Chapter
      5

            	
              Status
      and Logs Menu

            
	
              Chapter
      6

            	
              Traffic
      and Reports Menu

            
	
              Chapter
      7

            	
              Other
      Tools Menu

            

    

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    MAMA
Manual –

     

    This
manual is an overview of MaMAä and is designed to
help you understand the features of this product.  The chapters of this
manual contain the following information:

     

    
      	
              Chapter
      1

            	
              Overview

            
	
              Chapter
      2

            	
              General
      Use

            
	
              Chapter
      3

            	
              Configuring
      MaMA

            
	
              Chapter
      4

            	
              Monitoring
      the Network

            
	
              Chapter
      5

            	
              Generating
      Reports

            

    

    

    MAMAv3
developer manual (In creation will be ready end January 2007)

     

    
      	
              ·  

            	
                 
      MAMAv3 Database

            

    

    
      	
              ·  

            	
                 
      MAMAv3 support system

            

    

    
      	
              ·  

            	
                 
      MAMAv3 monitoring system

            

    

    
      	
              ·  

            	
                 
      MAMAv3 reporting system

            

    

    
      	
              ·  

            	
                 
      MAMA backup system

            

    

     

    SIMS
developer manual

     

    
      	
              ·  

            	
                 
      SIMS database

            

    

    
      	
              ·  

            	
                 
      SIMS web management interface

            

    

    
      	
              ·  

            	
                 
      SIMS proxy subsystem and
redirectors

            

    

    
      	
              ·  

            	
                 
      SIMS room mapping

            

    

    
      	
              ·  

            	
                 
      VBN kernel module

            

    

    
      	
              ·  

            	
                 
      SIMS firewall

            

    

    
      	
              ·  

            	
                 
      SIMS traffic shaper

            

    

    
      	
              ·  

            	
                 
      SIMS v2 disclaimer pages and API

            

    

    
      	
              ·  

            	
                 
      SIMS billing interface

            

    

    
      	
              ·  

            	
                 
      SIMS MAMA interfaces

            

    

    
      	
              ·  

            	
                 
      SIMS utilities

            

    

    
      	
              ·  

            	
                 
      SIMS printing interfaces

            

    

    
      	
              ·  

            	
                 
      SIMS Linux Kernel

            

    

    
      	
              ·  

            	
                 
      SIMS Installation CD howto

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    As
of October 27, 2006 software features sets.

     

    
      	
              Features:

            	
              Superclick        SIMS

            	
              MAMA

            	
              SIMS
      Helpdesk

            
	 
      	 
      	 
      	 
      
	
              Server
      Platform

            	 
      	 
      	 
      
	
              Operating
      System

            	
              Linux

            	
              Linux

            	
              Linux

            
	
              Configuration
      Backup & Restore

            	
              Y

            	
              Y

            	
              Y

            
	
              Flash-Based
      RTOS, No Moving Parts

            	
              N

            	
              N

            	
              N

            
	
              Hardened
      Against Viruses & Hackers

            	
              Y

            	
              Y

            	
              Y

            
	
              Modular
      Software Design for Flexibility

            	
              Y

            	
              Y

            	
              Y

            
	
              Per
      User OS License Fees

            	
              N

            	
              Y

            	
              Y

            
	
              Private
      Label Option

            	
              Y

            	
              Y

            	
              Y

            
	
              Redundant
      Power Supplies

            	
              N/A

            	
              N/A

            	
              N/A

            
	
              Redundant
      RAID Hard Disk Drives

            	
              N/A

            	
              N/A

            	
              N/A

            
	
              Ethernet
      Ports

            	
              N/A

            	
              N/A

            	
              N/A

            
	
              Expansion
      Slots

            	
              N/A

            	
              N/A

            	
              N/A

            
	
              Weight

            	
              N/A

            	
              N/A

            	
              N/A

            
	
              120/240
      AC autosensing

            	
              N/A

            	
              N/A

            	
              N/A

            
	
              Power

            	
              N/A

            	
              N/A

            	
              N/A

            
	
              Third
      Party Helpdesl Software intergration

            	
              N

            	
              Y

            	
              Y

            
	
              Competative
      VBN Import tools

            	
              Y

            	
              -

            	
              -

            
	 
      	 
      	 
      	 
      
	
              Alarm
      Notification & Helpdesk

            	 
      	 
      	 
      
	
              Email

            	
              Y

            	
              Y

            	
              -

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

    
      
        	
                Features:

              	
                Superclick        SIMS

              	
                MAMA

              	
                SIMS
      Helpdesk

              
	 
      

      

    

    
      	
              SMS

            	
              Y

            	
              Y

            	
              -

            
	
              Pager

            	
              Y

            	
              Y

            	
              -

            
	
              Multi
      Level Alarm notification

            	
              Y

            	
              Y

            	
              -

            
	
              Destinct
      alarm notification

            	
              Y

            	
              Y

            	
              -

            
	
              Automatic  Scheduled
      system status

              reporting CPE link
      errors

            	
              Y

            	
              Y

            	
              -

            
	
              Realtime
      Room Status

            	
              Y

            	
              Y

            	
              Y

            
	
              Online
      Device Login status

            	
              Y

            	
              N

            	
              Y

            
	
              Helpdesk
      Ticket system

            	
              N

            	
              N

            	
              Y

            
	
              Historical
      Room Knowledge base

            	
              N

            	
              N

            	
              Y

            
	
              Historical
      MAC knowledge base

            	
              N

            	
              N

            	
              Y

            
	
              Helpdesk
      Reporting system by Category

            	
              N

            	
              N

            	
              Y

            
	
              Assign
      Real IP realtime

            	
              Y

            	
              N

            	
              Y

            
	 
      	 
      	 
      	 
      
	
              Server
      Management

            	 
      	 
      	 
      
	
              24/7
      Monitoring

            	
              Y

            	
              Y

            	
              Y

            
	
              24/7
      Tier 1 Multiple Language Guest

              & Hotels staff Phone
      support

            	
              Y
      (1)

            	
              -

            	
              Y

            
	
              24/7
      Tier 2 Partners Phone & Email support

            	
              Y

            	
              -

            	
              Y

            
	
              Centralized
      Management

            	
              Y

            	
              Y

            	
              Y

            
	
              Configuration
      Backup and Restore

            	
              Y

            	
              Y

            	
              -

            
	
              Front
      & Edge Device Montoring system

            	
              Y

            	
              Y

            	
              -

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
       

      
        	
                Features:

              	
                Superclick        SIMS

              	
                MAMA

              	
                SIMS
      Helpdesk

              
	 
      

      

    

    
      	
              IP
      Climate Control device

            	
              Y

            	
              Y

            	
              -

            
	
              IP
      Minibar

            	
              Y

            	
              Y

            	
              -

            
	
              IP
      Video on Demand

            	
              Y

            	
              Y

            	
              -

            
	
              IP
      Phones

            	
              Y

            	
              Y

            	
              -

            
	
              CPE
      device & Swithces (xDSL, LRE, Cable)

            	
              Y

            	
              Y

            	
              -

            
	
              Ethernet
      Switches

            	
              Y

            	
              Y

            	
              -

            
	
              Wireless
      Access Points

            	
              Y

            	
              Y

            	
              -

            
	
              Management
      Reporting

            	
              Y

            	
              Y

            	
              Y

            
	
              Iinternet
      Usage & Traffic Report

            	
              Y

            	
              Y

            	
              -

            
	
              Centralized
      Multi Property Management Reporting

            	
              -

            	
              Y

            	
              -

            
	
              Centralized
      Multi Property Internet Usage Reports

            	
              -

            	
              Y

            	
              -

            
	
              Port
      Forwarding

            	
              Y

            	
              Y

            	
              -

            
	
              Port
      Montioring

            	
              Y

            	
              Y

            	
              -

            
	
              Remote
      Updates & Module Upgrades

            	
              Y

            	
              Y

            	
              -

            
	
              Web-Based
      GUI

            	
              Y

            	
              Y

            	
              -

            
	
              Internet
      Access Applications

            	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
              High
      Speed Ethernet (xDSL, Cable, LRE)

            	
              Y

            	
              -

            	
              -

            
	
              High
      Speed Wireless-Plug-N-Play

            	
              Y

            	
              -

            	
              -

            
	
              High
      Speed Conference Rooms-Plug-N-Play

            	
              Y

            	
              -

            	
              -

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
       

      
        	
                Features:

              	
                Superclick        SIMS

              	
                MAMA

              	
                SIMS
      Helpdesk

              
	 
      

      

    

    
      	
              High
      Speed Administration/Back Office

            	
              Y

            	
              -

            	
              -

            
	
              Dorm
      Rooms-Plug-N-Play

            	
              Y

            	
              -

            	
              -

            
	
              Video
      Conferencing (Devices without browsers)

            	
              Y

            	
              -

            	
              -

            
	
              Video
      On Demand Support

            	
              Y

            	
              -

            	
              -

            
	
              SMTP/Email
      Support

            	
              Y

            	
              Y

            	
              Y

            
	
              Email
      Hosting

            	
              Y

            	
              Y

            	
              -

            
	
              Web
      Hosting

            	
              Y

            	
              Y

            	
              -

            
	
              Adult
      Content Restriction

            	
              Y

            	
              -

            	
              -

            
	 
      	 
      	 
      	 
      
	
              VBN
      Server

            	 
      	 
      	 
      
	
              Plug-N-Play
      Internet Access

            	
              Y

            	
              -

            	
              -

            
	
              1:1
      Public IP Mapping for Hardware IPsec Support

            	
              Y

            	
              -

            	
              -

            
	
              Login
      Pages & User Redirects

            	 
      	 
      	
              -

            
	
              Multiple
      Redirects by Policy Set

            	
              Y

            	
              -

            	
              -

            
	
              Turn
      on/off Login Screen and/or Redirect Screen

            	
              Y

            	
              -

            	
              -

            
	
              Web
      Server & Screens Resident on Server

            	
              Y

            	
              -

            	
              -

            
	
              Pop-Up
      screen for upgrade of service

            	
              Y

            	
              Y

            	
              -

            
	
              Scheduled
      Pop-up Screen

            	
              Y

            	
              -

            	
              -

            
	
               IP
      & URL Based Walled Garden

            	
              Y

            	
              -

            	
              -

            
	
              Multil
      Disclamier,Landing Page groups

            	 
      	
              -

            	
              -

            
	
              Billing
      Options

            	 
      	 
      	
              -

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      
        	
                Features:

              	
                Superclick        SIMS

              	
                MAMA

              	
                SIMS
      Helpdesk

              
	 
      

      

    

    
      	
              Affinity
      or Loyalty Program Support

            	
              Y

            	
              -

            	
              -

            
	
              Authorization
      Codes/PIN

            	
              Y

            	
              -

            	
              -

            
	
              Credit
      Card

            	
              Y

            	
              Y

            	
              -

            
	
              Multi
      Rate per day, session, room type

            	
              Y

            	
              -

            	
              -

            
	
              Full
      Radius Accounting & Reporting

            	
              Y

            	
              Y

            	
              -

            
	
              Full
      Wireless Support (Boingo, Gric, iPass, etc.)

            	
              Y

            	
              -

            	
              -

            
	
              Local
      User Name/Password Database

            	
              Y

            	
              Y

            	
              -

            
	
              PMS
      & CC Billing for VOD Systems

            	
              Y

            	
              -

            	
              -

            
	
              PMS
      Interface

            	
              Y

            	
              -

            	
              -

            
	
              Radius
      Client

            	
              Y

            	
              -

            	
              -

            
	
              Variable
      by time, bytes

            	
              Y

            	
              -

            	
              -

            
	
              XML
      for Central Billing & Reporting Integration

            	
              Y

            	
              -

            	
              -

            
	
              Security

            	 
      	 
      	 
      
	
              802.1Q
      VLAN

            	
              Y

            	
              -

            	
              -

            
	
              Firewall
      ACL's

            	
              Y

            	
              Y

            	
              Y

            
	
              Hardened
      against Virus and Hackers

            	
              Y

            	
              Y

            	
              Y

            
	
              Group
      Policies

            	 
      	 
      	
              -

            
	
              Combine
      Meeting & Guest Room policies

            	
              Y

            	
              -

            	
              -

            
	
              Conference
      Rooms Treated Differently

            	
              Y

            	
              -

            	
              -

            
	
              Guest
      Rooms Segmented and/or Grouped

            	
              Y

            	
              -

            	
              -

            
	
              Wireless
      AP for Hotspots & Roaming Agreements

            	
              Y

            	
              -

            	
              -

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
       

      
        	
                Features:

              	
                Superclick        SIMS

              	
                MAMA

              	
                SIMS
      Helpdesk

              
	 
      

      

    

    
      	
              Meeting
      Scheduler

            	 
      	 
      	
              -

            
	
              Calendar-based,
      Easy-to-Use

            	
              Y

            	
              -

            	
              -

            
	
              Customize
      Mtg & IP Info then Print/Email

            	
              Y

            	
              -

            	
              -

            
	
              Dynamic
      assignment of Public, Static IP pools

            	
              Y

            	
              -

            	
              -

            
	
              Meeting
      Setup Wizard

            	
              Y

            	
              -

            	
              -

            
	
              Policy-based
      to Differentiate Mtg's and/or Rooms

            	
              Y

            	
              -

            	
              -

            
	
              Redirect
      option

            	
              Y

            	
              -

            	
              -

            
	
              Resident
      on Gateway, Not separate software/box

            	
              Y

            	
              -

            	
              -

            
	
              Front
      Desk Web-Based GUI

            	 
      	 
      	 
      
	
              Per
      port or per user

            	
              Y

            	
              -

            	
              -

            
	
              Time
      Based Port Control

            	
              Y

            	
              -

            	
              -

            
	
              Turn
      Ports On/Off

            	
              Y

            	
              -

            	
              -

            
	
              VPN
      Support

            	 
      	 
      	 
      
	
              PPTP

            	
              Y

            	
              -

            	
              -

            
	
              Multiple
      User IPSEC/DHCP

            	
              Y

            	
              -

            	
              -

            
	
              IPSEC(Hardware
      Encryption)

            	
              Y

            	
              -

            	
              -

            
	
              Multiple
      VPN clients Connected simultaneously

            	
              Y

            	
              -

            	
              -

            
	
              Add
      Secondary IP Ranges - DHCP Scoping

            	
              Y

            	
              -

            	
              -

            
	
              Bandwidth
      Rate Control - Mac Address based

            	
              Y

            	
              -

            	
              -

            
	
              FTP
      Support

            	
              Y

            	
              -

            	
              -

            
	
              ICQ/Instant
      Messenger/NetMeeting Support

            	
              Y

            	
              -

            	
              -

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
       

      
        	
                Features:

              	
                Superclick        SIMS

              	
                MAMA

              	
                SIMS
      Helpdesk

              
	 
      

      

    

    
      	
              In
      Room Port Mapping

            	
              Y

            	
              -

            	
              -

            
	
              Multiple
      Language Support

            	
              Y

            	
              -

            	
              -

            
	
              NAT

            	
              Y

            	
              -

            	
              -

            
	
              Pass-Through
      IP support

            	
              Y

            	
              -

            	
              -

            
	
              Packet
      Shaping

            	
              Y

            	
              -

            	
              -

            
	
              URL
      tracking

            	
              Y

            	
              -

            	
              -

            
	
              WAN
      Side DHCP

            	
              Y,
      not recommended

            	
              -

            	
              -

            
	
              XML
      Support

            	
              N

            	
              -

            	
              -

            
	
              802.11
      Wireless Support

            	
              Y

            	
              -

            	
              -

            
	
              802.11a
      & 802.11b

            	
              Y

            	
              -

            	
              -

            
	
              802.1x

            	
              Y

            	
              -

            	
              -

            
	
              Web-Browser
      Authentication

            	
              Y

            	
              -

            	
              -

            
	
              Local
      User Name/Password Authentication

            	
              Y

            	
              -

            	
              -

            
	
              MAC
      Filter Lists for Access Control

            	
              Y

            	
              -

            	
              -

            
	
              Content
      delivery option via internal web pages

            	
              Y

            	
              -

            	
              -

            
	 
      	 
      	 
      	 
      
	
              Toolbar
      Buttons

            	 
      	 
      	 
      
	
              FAQ

            	
              Y

            	
              -

            	
              -

            
	
              Teleconference

            	
              Y

            	
              -

            	
              -

            
	
              Video
      Conference

            	
              Q2
      / 2005

            	
              -

            	
              -

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
       

      
        	
                Features:

              	
                Superclick        SIMS

              	
                MAMA

              	
                SIMS
      Helpdesk

              
	 
      

      

    

    
      	
              Online
      Entertaining games

            	
              Q2
      / 2005

            	
              -

            	
              -

            
	
              Online
      Gaming, Sports Books

            	
              Y

            	
              -

            	
              -

            
	
              Online
      Travel

            	
              Q2
      / 2005

            	
              -

            	
              -

            
	
              Online
      Shopping

            	
              Q2
      / 2005

            	
              -

            	
              -

            
	
              Online
      Purchase for Local venus

            	
              Y

            	
              -

            	
              -

            
	
              Online
      Printing

            	
              Y

            	
              -

            	
              -

            
	
              Online
      Chat Room

            	
              Q2
      / 2005

            	
              -

            	
              -

            
	
              Create
      Wireless Pin from a wired connection

            	
              Y

            	
              -

            	
              -

            
	
              Newspaper
      Direct

            	
              Y

            	
              -

            	
              -

            
	
              Online
      faxing

            	
              Y

            	
              -

            	
              -

            
	
              Short
      Drop down menu

            	
              Y

            	
              -

            	
              -

            
	
              Request
      Real IP link

            	
              Y

            	
              -

            	
              -

            
	
              Local
      Weather Icon

            	
              Y

            	
              -

            	
              -

            
	
              Insert
      for Brand Logo

            	
              Y

            	
              -

            	
              -

            

    

    

     

    ANNEX
8

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    TECHNICAL SUPPORT

     

    Support
times are 24/7/365 via the Superclick 1-866-847-0333 support
line.  The proper escalation procedures will the take affect. Below is
the contact information of the Superclick assigned staff to
Swisscom.

     

    Hospitality Services
Plus  SA Account Manager

     

    Director of Operations

     

    Marie-Annie d’Anjou

     

    Tel:

     

    Fax:

     

    Director Development

     

    Enrico Demarin

     

    Tel:

     

    Fax:

     

    Director of Support and
Costumer Service

     

    Mourad
Atuani

     

    Tel:

     

    Fax:

     

     

    

     

    Service
Levels and Escalation

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      	
              1.   Maintenance
      Priority Levels.  Superclick will respond to Swisscom’s
      requests for support and maintenance in accordance with the following
      priority levels:

            

    

     

    

     

    
      	
              PRIORITY

            	
              DESCRIPTION

            	
              INITIAL
      RESPONSE

            	
              TURN-AROUND

            	
              PERMANENT
      FIX

            
	 	 	 	 	 
	
              1

            	
              Software
      is unusable and the Swisscom cannot conduct business; failure of a major
      process that prevents Swisscom from conducting its normal
      business.

               

            	
              2
      Hours

              Elapsed

              Easter
      Day light business hours

            	
              8
      Hours

              Elapsed

            	
              7
      Days

            
	 	 	 	 	 
	
              2

            	
              Severe
      loss of functionality to a group of users or to a single user running a
      business-critical operation.

               

            	
              2
      Hours

              Elapsed

            	
              48
      Hours

              Elapsed

            	
              12
      Days

            
	 	 	 	 	 
	
              3

            	
              Inconvenient
      situation whereby the Software is usable, but does not provide a function
      in the most convenient or expeditious manner.

               

            	
              12
      Business Hours

            	
              Notification
      within 7 business days regarding intended action

            	
              Next
      Release

            
	 	 	 	 	 
	
              4

            	
              Minor
      Software problem that does not prevent Swisscom  from doing its
      work.

            	
              24
      Business Hours

            	
              Notification
      within 12 business days regarding intended action

            	
              N/A

            

    

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      	
              2.    Support
      and Maintenance Request Procedures.  The following process
      shall be used to address and resolve Swisscom requests for maintenance and
      support services (each a “Service
Request”).

            

    

     

    
      	
              2.1

            	
              Trouble Report
      Form.  Swisscom must complete a Superclick Trouble Report,
      transmit such completed form to Superclick via a ticket using a dedicated
      queue in the Swisscom ticketing system, and contact Superclick Customer
      Support via telephone or email.  Superclick support will use this
      mail’s header as reference for any follow up.  Work will not commence
      until a description of the suspected fault or problem has been received by
      Superclick. Swisscom will provide information available to it in respect
      of the fault or problem as requested by Superclick in its diagnosis of the
      fault or problem. Superclick assistance can be sought in the process of
      documenting the fault or in establishing dumps, traces or any other action
      necessary for documenting the
fault.

            

    

     

    
      	
              2.4

            	
              Permanent Fix. 
      Within the designated Permanent Fix period, Superclick will provide a
      software patch that corrects the condition that was the subject of the
      Service Request.  No Permanent Fix will require any change to
      Swisscom’s procedures or an environmental change (hardware, network
      interface, OS or third party
software). 

            

    

    

    
      	
              2.5
      

            	
              Turn-Around. 
      Within the designated Turn-Around period (set forth in Section 1
      above), Superclick shall
      notify Swisscom of the intended action for a temporary fix or work
      around.  If the resolution for the Turn-Around requires a temporary
      bug fix or software change, Superclick shall provide such fix or change
      within the Turn-Around period.  If the Turn-Around requires a work
      around process or environmental change (hardware, network interface, OS or
      third party software), Superclick shall advise Swisscom of the steps to be
      taken to implement the work-around process, and Swisscom will use
      reasonable efforts to effect such changes, at Superclick’s expense. 
      In addition, within the designated Turn-Around time, Superclick shall
      advise Swisscom of the intended actions for a Permanent
    Fix.

            

    

    

     

    
      	
              Escalation
      Procedure.  When a
      Service Request has missed its Initial Response or Turn-Around target, the
      escalation levels and contacts are as described as
  follows:

            

    

     

    
      	
              Step
      1: If the CSA (Customer Service Agent) cannot be reached within one
      hour or has not responded satisfactorily, the Client Support Lead of
      Superclick shall respond.  If no response within half-an-hour,
      proceed to Step 2. 

            

    

     

    
      	
              Step
      2: The Client Services Manager of Superclick shall respond.
       If no response within half-an-hour, proceed to Step
      3. 

            

    

     

    
      	
              Step
      3:  The Director of Operations of Superclick shall respond. If
      no response within half-an-hour, proceed to Step
  4. 

            

    

     

    Step
4: The
President of Superclick shall respond.

     

    

     

    

     

    

     

    ANNEX
9

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    EXISTING
SWISSCOM PROPERTIES IN NORTH AMERICA

     

    

     

    

     

    ANNEX
10

     

    EXISTING
SUPERCLICK CUSTOMERS AND PARTNERS IN THE TERRITORYEXHIBIT
10.1

    CONVERTIBLE
DEBENTURE

    

    DATED:   April
27, 2009

    

    
      PRINCIPAL AMOUNT: US
$511,589.59

    

    

    INTEREST
RATE:  12.0% per annum compounded annually, not in
advance

    

    FOR
VALUABLE CONSIDERATION, WITS
BASIN PRECIOUS MINERALS INC., a Minnesota corporation (the “Corporation”), hereby
acknowledges itself indebted and promises to pay pursuant to the terms herein to
or to the order of CABO
DRILLING (AMERICA) INC., a Washington corporation formerly known as
Advanced Drilling, Inc., and its respective
successors and assigns (together, the “Lender”) the Principal Amount,
Expenses and Extension Fee at the Lender’s address as stated in Section 9.1 or
at such other place as the Lender may designate by notice in writing to the
Corporation, and to pay interest thereon from the date hereof at the Interest
Rate calculated in like money at the same place and should the Corporation at
any time make default in payment of any Principal Amount, Expenses, Extension
Fee or Interest, to pay interest on the amount in default both before and after
default and judgment at the Interest Rate in like money at the same place on the
same dates. The amounts owing under this Debenture will be payable by the
Corporation to the Lender as follows (except as otherwise specified in this
Debenture):

    

    
      	
               
      

            	
              (a)

            	
              payment
      of US$150,000.00 on the first anniversary of the date of issuance of this
      Debenture;

            

    

    

    
      	
               
      

            	
              (b)

            	
              payment
      of US$150,000.00 on the second anniversary of the date of issuance of this
      Debenture; and

            

    

    

    
      	
               
      

            	
              (c)

            	
              payment
      of the balance of any amounts owing to the Lender pursuant to this
      Debenture on the Maturity Date.

            

    

    

    The
Corporation may prepay the amounts owing to the Lender under this Debenture in
whole or in part, at any time and from time to time, without premium or penalty,
upon five (5) Banking Days notice in writing to the Lender, provided that the
Lender will continue to be entitled to exercise its conversion rights pursuant
to Article 6 hereunder during such notice period.

    

    ARTICLE
1

    INTERPRETATION

    

    1.1          Definitions.  In
this Debenture the following terms will have the following
meanings:

    

    
      	
               
      

            	
              (a)

            	
              “Available Shares” means
      the number of shares issuable to the Lender on full conversion of all
      amounts owing under this Debenture;

            

    

    

    
      	
               
      

            	
              (b)

            	
              “Banking Day” means any
      day on which banks are open for business in Vancouver, British
      Columbia;

            

    

    
      
         

      

      
         

        
          

        

      

      
         

        2

      

    

    

    
      	
               
      

            	
              (c)

            	
              “Commission” has the
      meaning set out in Section 4.1(g);

            

    

    

    
      	
               
      

            	
              (d)

            	
              “Common Shares” means
      common stock, par value $0.01 per share, of the
    Corporation;

            

    

    

    
      	
               
      

            	
              (e)

            	
              “Conversion Price Per
      Share” means US $0.20 per Common Share as adjusted by Section
      6.1(c);

            

    

    

    
      	
               
      

            	
              (f)

            	
              “Conversion Shares” has
      the meaning set out in Section
4.1(o);

            

    

    

    
      	
               
      

            	
              (g)

            	
              “Corporation” means Wits
      Basin Precious Minerals Inc., a Minnesota
  corporation;

            

    

    

    
      	
               
      

            	
              (h)

            	
              “Counsel” means an
      attorney, barrister or solicitor or firm of attorneys, barristers and
      solicitors acceptable to the
Lender;

            

    

    

    
      	
               
      

            	
              (i)

            	
              “Debenture”, “hereto, “herewith”, “hereof”, “hereby”, “hereunder” and other
      similar expressions refer to this Debenture and not any Article, Section,
      subsection or any portion thereof;

            

    

    

    
      	
               
      

            	
              (j)

            	
              “Deed of Trust” has the
      meaning set out in Section 2.2;

            

    

    

    
      	
               
      

            	
              (k)

            	
              “Demand Date” has the
      meaning set out in Section 6.2;

            

    

    

    
      	
               
      

            	
              (l)

            	
              “Environmental Laws”
      means all applicable domestic and foreign federal, state, provincial,
      municipal or local laws, statutes or ordinances pertaining to the
      environment, all applicable rules, regulations or the like promulgated
      under or pursuant to such laws, statutes or ordinances and all applicable
      Governmental Authorizations or Orders or the like issued or rendered by
      any Governmental Authorities under or pursuant to any such laws, statutes,
      ordinances, rules or regulations;

            

    

    

    
      	
               
      

            	
              (m)

            	
              “Exchange Act” has the
      meaning set out in Section 4.2(b);

            

    

    

    
      	
               
      

            	
              (n)

            	
              “Expenses” means all
      expenses reimbursable to the Lender by the Corporation pursuant to the
      terms of this Debenture, including but not limited to the amounts
      specified in Sections 4.2(b), 4.4(b) and
8.3;

            

    

    

    
      	
               
      

            	
              (o)

            	
              “Extension Fee” has the
      meaning set out in Section 6.2;

            

    

    

    
      	
               
      

            	
              (p)

            	
              “Event of Default” means
      each of the events referred to in Section
7.1;

            

    

    

    
      	
               
      

            	
              (q)

            	
              “Fundamental Change” has
      the meaning set out in Section
6.1(c);

            

    

    

    
      	
               
      

            	
              (r)

            	
              “Governmental Authority”
      means the governments of Canada and the United States, or the government
      of any state, province, municipality or other political subdivision
      thereof, and any entity exercising executive, legislative, judicial,
      regulatory or administrative functions, and any corporation or other
      entity owned or controlled (through stock or capital ownership or
      otherwise) by any of the
foregoing;

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

        3

      

    

    

    
      	
               
      

            	
              (s)

            	
              “Governmental Authorizations or
      Orders” mean all licences, permits, consents, orders, grants,
      quotas, commitments, rights, privileges, certificates, judgments, writs,
      injunctions, awards, determinations, directions, decrees, demands,
      material authorizations and approvals (including, without limitation,
      those relating to the environment, zoning, water and sewers) now in effect
      or hereafter entered into, from any and all Governmental
      Authorities;

            

    

    

    
      	
               
      

            	
              (t)

            	
              “Guarantor” means Hunter
      Bates Mining Corporation, a Minnesota
  corporation;

            

    

    

    
      	
               
      

            	
              (u)

            	
              “Guarantor Property”
      means all the property and assets of the Guarantor which at the particular
      time are subjected (or required by this Debenture to be subjected) to the
      Deed of Trust;

            

    

    

    
      	
               
      

            	
              (v)

            	
              “Hazardous Substance”
      means any substance, product, waste, pollutant, material, chemical,
      contaminant, dangerous good, constituent or other material which is or
      becomes listed, regulated, or addressed under any Environmental
      Law;

            

    

    

    
      	
               
      

            	
              (w)

            	
              “Hunter Bates Claims”
      means the lands listed in Schedule “A” attached
    hereto;

            

    

    

    
      	
               
      

            	
              (x)

            	
              “Interest” means the
      accrued and unpaid interest owing, from time to time, pursuant to this
      Debenture calculated at the Interest
Rate;

            

    

    

    
      	
               
      

            	
              (y)

            	
              “Interest Rate” means
      12.0% per annum compounded annually, not in
  advance;

            

    

    

    
      	
               
      

            	
              (z)

            	
              “Lender” means Cabo
      Drilling (America) Inc., a Washington
  corporation;

            

    

    

    
      	
               
      

            	
              (aa)

            	
              “Lien” means any
      mortgage, pledge, security interest, encumbrance, lien or charge of any
      kind, including any agreement to grant any of the foregoing, any
      conditional sale or other title retention agreement, any lease in the
      nature thereof, and the filing of or agreement to file any notice of
      security or financing statement under the applicable legislation of any
      jurisdiction in connection with any of the
  foregoing;

            

    

    

    
      	
               
      

            	
              (bb)

            	
              “Maturity Date” means
      the third anniversary of the date of issuance of this
      Debenture;

            

    

    

    
      	
               
      

            	
              (cc)

            	
              “Permitted Liens”
      means:

            

    

    

    
      	
               
      

            	
              (i)

            	
              Liens
      for taxes, assessments or governmental charges not then due and delinquent
      or in respect of which the Guarantor has furnished such security as the
      Lender may require and which are being contested in good faith by
      appropriate proceedings promptly initiated and diligently
      conducted;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              Liens
      in the nature of zoning restrictions, easements and rights and
      restrictions of record on the use of real property, which do not
      materially interfere with the conduct of the business of the Guarantor and
      do not materially affect the value of the Guarantor Property subject to
      such Liens;

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

        4

      

    

    

    
      	
               
      

            	
              (iii)

            	
              undetermined
      or inchoate Liens, including unregistered construction Liens, incidental
      to current operations of the Guarantor which have not at such time been
      filed pursuant to laws against the Guarantor and which relate to
      obligations neither due nor
delinquent;

            

    

    

    
      	
               
      

            	
              (iv)

            	
              Liens
      in the form of security given to a public utility or any Governmental
      Authority in connection with the operations of the Guarantor in the
      ordinary course of its business;
and

            

    

    

    
      	
               
      

            	
              (v)

            	
              matters
      of record as of the date hereof, itemized on Schedule “C” hereto, save and
      except for the Subordinated Liens;

            

    

    

    
      	
               
      

            	
              (dd)

            	
              “Person” means an
      individual, a partnership, a corporation, a trust, an unincorporated
      organization, a government or any department, political subdivision or
      agency thereof and the heirs, executors, administrators or other legal
      representatives of an individual;

            

    

    

    
      	
               
      

            	
              (ee)

            	
              “Pre-Conversion Condition”
      means the occurrence of either of the
  following:

            

    

    

    
      	
               
      

            	
              (i)

            	
              the
      Corporation obtaining the approval of its shareholders to the amendment of
      the Corporation’s articles of incorporation to increase the number of
      authorized shares of Common Shares available for issuance such that it is
      legally capable of issuance of the maximum number of shares of Common
      Shares issuable upon a conversion of all amounts owing under this
      Debenture;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              the
      delivery to Counsel for the Lender of an opinion from Counsel for the
      Corporation opining that the Corporation has taken such steps as are
      necessary such that on conversion of all amounts owing under this
      Debenture the Corporation will have sufficient authorized capital to
      effect issuance of the Available Shares to the
  Lender;

            

    

    

    
      	
               
      

            	
              (ff)

            	
              “Principal Amount” means
      the face amount of this Debenture;

            

    

    

    
      	
               
      

            	
              (gg)

            	
              “Securities” has the
      meaning set out in Section 5.1(e);

            

    

    

    
      	
               
      

            	
              (hh)

            	
              “Securities Act” has the
      meaning set out in Section 4.2(b);

            

    

    

    
      	
               
      

            	
              (ii)

            	
              “Subordinated Liens”
      means the Liens listed in Schedule “B” attached
  hereto;

            

    

    

    
      	
               
      

            	
              (jj)

            	
              “Trigger Date” has the
      meaning set out in Section 6.2; and

            

    

    

    
      	
               
      

            	
              (kk)

            	
              “US Dollars” means the
      lawful currency of United
States.

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

        5

      

    

    

    1.2          Interpretation Not Affected by
Headings.  The division of this Debenture into Articles,
Sections and subsections and the insertion of headings are for convenience of
reference only and will not affect the construction or interpretation of this
Debenture.

    

    1.3          Applicable
Law.  This Debenture will be construed in accordance with the
laws of the State of Colorado and the federal laws of the United States
applicable therein, and will be treated in all respects as a Colorado
contract.

    

    1.4          Currency.  Unless
otherwise specified, all statements of or references to dollar amounts (without
more) in this Debenture will mean lawful money of the United
States.

    

    1.5          Banking Day.  If the
date upon which any act or payment hereunder is required to be done or made
falls on a day which is not a Banking Day, then such act or payment will be duly
performed or made if done on the next Banking Day.

    

    1.6          Number.   Words
importing the singular number only will include the plural and vice versa, words
importing the masculine gender will include the feminine and neuter genders and
words importing persons will include firms and corporations and vice
versa

    

    ARTICLE
2

    GUARANTEE

    

    2.1          Guarantee.  As an
inducement for entering into this Debenture, the Guarantor hereby guarantees
payment to the Lender of any and all indebtedness now or hereafter owing by the
Corporation to the Lender arising under this Debenture, including the Principal
Amount, the Interest, the Extension Fee and the Expenses due and owing from time
to time, and the performance of all of the obligations of the Corporation
hereunder on the following terms:

    

    
      	
               
      

            	
              (a)

            	
              the
      Lender, without exonerating in whole or in part the Guarantor, may grant
      time, renewals, extensions, indulgences, releases and discharges to, may
      take securities from and give the same and any or all existing securities,
      may abstain from taking securities from, or from perfecting securities of,
      may accept compositions from, and may otherwise deal with the Corporation
      and all other persons (including the Guarantor and any other guarantor)
      and securities, as the Lender may see fit, and that all dividends,
      compositions, and moneys received by the Lender from the Corporation or
      from any other persons or estates capable of being applied by the Lender
      in reduction of the debts and liabilities hereby guaranteed, will be
      regarded for all purposes as payments in gross, and the Lender will be
      entitled to prove against the estate of the Corporation upon any
      insolvency or winding-up in respect of the whole of said debts and
      liabilities, and the Guarantor will have no right to be subrogated to the
      Lender in respect of any such proof until the Lender will have received
      from such estate payment in full of its claim with
    interest;

            

    

    

    
      	
               
      

            	
              (b)

            	
              the
      Lender will not be obliged to give the Guarantor notice of default by the
      Corporation, and upon any default by the Corporation the Guarantor will be
      held bound directly to the Lender as principal debtor in respect of the
      payment of the amounts guaranteed
hereby;

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

        6

      

    

    

    
      	
               
      

            	
              (c)

            	
              the
      Lender will not be bound to exhaust its recourse against the Corporation
      or other parties or the securities it may hold before being entitled to
      payment from the Guarantor
hereunder;

            

    

    

    
      	
               
      

            	
              (d)

            	
              any
      change or changes in the name of the Corporation will not affect or in any
      way limit or lessen the liability of the Guarantor
    hereunder;

            

    

    

    
      	
               
      

            	
              (e)

            	
              should
      the Lender receive from the Guarantor a payment or payments in full or on
      account of the liability hereunder, the Guarantor will not be entitled to
      claim repayment against the Corporation or the Corporation's estate until
      the Lender's claims against the Corporation have been paid in full; and in
      case of liquidation, winding up or bankruptcy of the Corporation (whether
      voluntary or compulsory), the Lender will have the right to rank for its
      full claim and receive all dividends or other payments in respect thereof
      until its claim has been paid in full and the Guarantor will continue to
      be liable, up to the amount guaranteed less any payments made by the
      Guarantor, for any balance which may be owing by the Corporation to the
      Lender; and

            

    

    

    
      	
               
      

            	
              (f)

            	
              the
      Guarantor will make payment to the Lender of the amount of the debts and
      liabilities guaranteed hereby forthwith after demand therefore is made in
      writing in accordance with Article 9 and interest at a rate of 12% per
      annum, compounded annually, will accrue and be payable by the Guarantor to
      the Lender after such demand.

            

    

    

    2.2          Security.   To
secure the due payment of all amounts from time to time owing pursuant to this
Debenture and the due performance of the obligations of the Corporation and the
Guarantor contained herein but subject to the Permitted Liens, the Guarantor is
concurrently executing and delivering to the Lender a Deed of Trust to Public
Trustee, Mortgage, Security Agreement, Assignment of Production and Proceeds,
Financing Statement and Fixture Filing (the “Deed of Trust”).

    

    ARTICLE
3

    POSSESSION,
USE AND RELEASE OF THE GUARANTOR PROPERTY

    

    3.1          The Guarantor Entitled to
Possession.   Unless an Event of Default shall have
occurred, the Guarantor will be permitted to possess, use and enjoy all of the
Guarantor Property, as applicable, to take and use the moneys in any account
(subject to any other agreements it may have entered into with respect thereto)
and to receive and use the income and profits thereof including, without
limitation, amounts owed to it under accounts receivable now owned or hereafter
acquired in the ordinary course of business and for the purpose of carrying on
the same.  Notwithstanding the forgoing, the Corporation and/or the
Guarantor will not sell or dispose of any of the Guarantor Property, whether in
the ordinary course of business or otherwise, without the prior written consent
of the Lender.

    
      
         

      

      
        
        

        
          

        

      

      
         

        
          7

        

      

    

    

    3.2          Condemnation,
Expropriation.   In the event of any taking of any part of
the Guarantor Property by Governmental Authority by power of condemnation or
expropriation or other similar power or of any sale or conveyance by the
Guarantor with the prior written consent of the Lender in lieu of such taking
and in reasonable anticipation thereof where proceedings therefor might lawfully
be exercised to vest such property in the acquirer or expropriator for the same
purposes, the Lender will release the property so taken or acquired upon the
deposit with the Lender of a sum equal to the greater of (a) the net proceeds of
any such taking or exercise of such right of acquisition or in case of sale in
anticipation of such taking (which sale will require the written approval of the
Lender), the net proceeds of such sale and (b) the aggregate of the Principal
Amount, Interest, Extension Fee and Expenses owing to the Lender under this
Debenture.

    

    ARTICLE
4

    REPRESENTATIONS,
WARRANTIES AND COVENANTS OF THE CORPORATION AND THE GUARANTOR

    

    4.1          Representations and
Warranties.  The Corporation and the Guarantor jointly and
severally hereby covenant, represent and warrant to the Lender as follows (and
the Corporation and the Guarantor acknowledge that the Lender is relying upon
these covenants, representations and warranties in connection with entering into
this Debenture and the Guarantors guarantee of the Corporation’s obligations
hereunder) as at the date hereof and, with respect to paragraphs (a), (b), (d),
(e) and (o) also as long as any amounts remaining owing to the Lender pursuant
to this Debenture:

    

    
      	
               
      

            	
              (a)

            	
              Status.  The
      Corporation and the Guarantor are corporations duly incorporated and
      organized in accordance with, and are validly subsisting and in good
      standing under the laws of, each of their jurisdictions of incorporation
      respectively.

            

    

    

    
      	
               
      

            	
              (b)

            	
              Corporate
      Power.  The Corporation and the Guarantor each has the
      corporate power to own their property and assets to carry on the business
      as presently carried on or proposed to be carried on by
      them.  The Corporation and the Guarantor are each duly qualified
      or licensed and in good standing as a corporation authorized to do
      business in each jurisdiction where they respectively carry on their
      business or where the nature of the business carried on or proposed to be
      carried on or where the location of its property and assets requires to be
      so licensed or qualified.

            

    

    

    
      	
               
      

            	
              (c)

            	
              Power, Capacity, Due Execution
      and Enforceability.  The Corporation and the Guarantor
      each has full power, authority and capacity to execute, deliver and
      perform this Debenture.  This Debenture and the consummation of
      the transactions contemplated hereby by each of the Corporation and the
      Guarantor have been duly and validly authorized, executed and delivered by
      each of them.  Except as set forth on Schedule 4.1, the
      execution, delivery and performance of this Debenture and the consummation
      of the transactions contemplated hereby by each of the Corporation and the
      Guarantor (a) will not require the consent, approval or authorization of
      any Person or Governmental Authority (b) will not conflict with or result
      in a breach of the articles of incorporation or by-laws of either the
      Corporation or the Guarantor or give rise to a right to accelerate or
      terminate any contract to which either the Corporation or the Guarantor is
      a party or by which either the Corporation or the Guarantor may be bound
      or which relates to or may affect the business of either the Corporation
      or the Guarantor, (c) will not violate any law, rule, regulation, by-law,
      ordinance or Governmental Authorization or Order, (d) will not require any
      notice under any contract or to any Person or
      Governmental  Authority and (e) will not give rise to any Lien
      on any of the Guarantor Property other than Permitted
      Liens.  This Debenture constitutes (or will constitute when
      executed) a legally valid and binding obligation of each of the
      Corporation and the Guarantor in accordance with its terms subject to
      applicable bankruptcy, insolvency and other laws of general application
      affecting the enforcement of creditors’ rights generally and to general
      equitable principles.

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

        8

      

    

    

    
      	
               
      

            	
              (d)

            	
              Compliance with Laws, Permits
      and Licenses.  Each of the Corporation and the Guarantor
      has conducted and is conducting its business in material compliance with
      all applicable laws, rules, regulations, by-laws, ordinances and
      Governmental Authorizations or Orders.  Each of the Corporation
      and the Guarantor is not in material breach of such laws, regulations,
      approvals and Governmental Authorizations or Orders and each of the
      Corporation and the Guarantor is duly licensed, registered or qualified
      and duly possesses all material licenses, registrations, qualifications,
      consents, clearances and approvals, permits and quotas required in those
      jurisdictions in which the Corporation or the Guarantor, as applicable,
      carries on its business to enable such business to be carried on as now
      conducted and as now proposed to be conducted by it in the future and its
      property and assets to be owned, leased and operated.  All such
      material licenses, registrations, qualifications, consents, clearances,
      approvals, permits and quotas necessary to the conduct of each of the
      Corporation’s and the Guarantor’s business or for each of the Corporation
      and the Guarantor to own, lease and/or operate its property and assets are
      valid and subsisting and in good standing and none of the same contains or
      is subject to any term, provision, condition or limitation which may
      materially adversely change or terminate such license, registration,
      qualification, permit or quota by virtue of the completion of the
      transactions contemplated hereby and there is no proceeding, action or
      notice pending or threatened which may result in the revocation,
      cancellation, suspension or any material adverse modification
      thereof.

            

    

    

    
      	
               
      

            	
              (e)

            	
              Title to
      Assets.  The Guarantor has good and marketable title,
      free and clear of any Liens, other than Permitted Liens or Liens ranking
      subordinate to the Liens created by the Deed of Trust, to the Guarantor
      Property or any part thereof.  The Hunter Bates Claims and all
      assets located on, used in connection with, or used in any mining or
      exploration operations related to the Hunter Bates Claims are owned
      legally and beneficially by the
Guarantor.

            

    

    

    
      	
               
      

            	
              (f)

            	
              Subsidiaries.  The
      Guarantor is 100% owned by the
Corporation.

            

    

    

    
      	
               
      

            	
              (g)

            	
              No
      Guarantees.  Except as set forth on Schedule 4.1 or as
      otherwise disclosed in the Corporation’s public filings with the U.S.
      Securities and Exchange Commission (the “Commission”), the
      Corporation or the Guarantor is not a party to, or bound by, any contract
      of guarantee, indemnification, assumption or endorsement or any other like
      commitment of the obligations (contingent or otherwise) or indebtedness of
      any Person.

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

        9

      

    

    

    
      	
               
      

            	
              (h)

            	
              Absence of Undisclosed
      Liabilities or Indebtedness.  There are no liabilities or
      indebtedness of the Corporation or the Guarantor of any kind whatsoever
      whether or not accrued and whether or not determined or determinable,
      other than:

            

    

    

    
      	
               
      

            	
              (i)

            	
              liabilities
      disclosed or referred to or reflected in the Corporation’s public filings
      with the Commission; and

            

    

    

    
      	
               
      

            	
              (ii)

            	
              liabilities
      incurred in the ordinary course of business, none of which has either
      individually or in the aggregate been or will be materially adverse to the
      Corporation or the Guarantor, the results of their operations, their
      property or assets, financial condition or manner of conducting their
      business.

            

    

    

    
      	
               
      

            	
              (i)

            	
              Taxes.  The
      Corporation and the Guarantor each has filed all tax returns which are
      required to be filed by it and, except for taxes which are being contested
      and which give rise to no Liens, has paid all taxes (if any) which have
      become due as shown on such returns or any assessment received by it or
      any proposed assessment of which notice has been given to
      it.  The income tax liability of each of the Corporation and the
      Guarantor each has been paid or provided for in the accounts of each such
      corporation and there is no material outstanding matter of dispute or
      difference between the Corporation or the Guarantor and any federal,
      provincial, state, territorial or municipal taxing authority, agency or
      department.  All amounts required to be deducted or withheld by
      the Corporation and the Guarantor from employees under any applicable
      statute have been properly deducted and withheld and have been remitted to
      the appropriate authorities within the prescribed
  times.

            

    

    

    
      	
               
      

            	
              (j)

            	
              Litigation.  There
      is no action, suit or proceeding (whether or not purportedly on behalf of
      the Corporation or the Guarantor) pending or threatened in writing against
      or affecting the Corporation or the Guarantor before any court or before
      or by any Governmental Authority, in the United States, Canada or
      elsewhere, or before any arbitrator or board save and except for actions
      commenced by the Lender and/or its affiliates; and the Corporation and the
      Guarantor are each not in default with respect to any judgment, order,
      writ, injunction, decree or award of any court, arbitrator or Governmental
      Authority, in the United States, Canada or
  elsewhere.

            

    

    

    
      	
               
      

            	
              (k)

            	
              Environmental
      Matters.  To the best of the knowledge of each of the
      Corporation and the Guarantor, each of the Corporation and the Guarantor
      and all of their respective properties, assets and operations are in full
      compliance in all material respects with all Environmental
      Laws.  Neither the Corporation nor the Guarantor are aware of,
      nor has either received notice of any past, present or future conditions,
      events, activities, practices or incidents which may interfere with or
      prevent the compliance or continued compliance of the Corporation and the
      Guarantor in all material respects with all Environmental
      Laws.  The Corporation and the Guarantor are not aware that any
      Hazardous Substances exist on, about or within or have been used,
      generated, stored, transported, disposed of on, or released from any of
      the properties or assets of any of the Corporation and the Guarantor other
      than in compliance in all material respects with all Environmental
      Laws.

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

        10

      

    

    

    
      	
               
      

            	
              (l)

            	
              Condition.  Except
      as set forth on Schedule 4.1, all tangible property and assets of the
      Guarantor are in good working order, reasonable wear and tear excepted,
      and neither require nor are reasonably expected to require any special or
      extraordinary expenditures to remain in such condition and are capable of
      being used for their intended purpose in the ordinary course of business
      consistent with past practice.

            

    

    

    
      	
               
      

            	
              (m)

            	
              Full
      Disclosure.  To the best knowledge of the Corporation and
      the Guarantor, neither the Corporation nor the Guarantor has any
      information or knowledge of any material facts not disclosed to the Lender
      relating to the Corporation, the Guarantor or their business or assets
      which could reasonably be expected to individually or in the aggregate be
      material to the Lender.

            

    

    

    
      	
               
      

            	
              (n)

            	
              No Act of
      Insolvency.  No proceedings or actions have been
      instituted by the Corporation or the Guarantor or any Person or threatened
      by any Person in connection with or relating to the solvency of the
      Corporation or the Guarantor.

            

    

    

    
      	
               
      

            	
              (o)

            	
              Shares Issuable Upon
      Conversion.  The Common Shares, when issued to the Lender
      upon conversion of and in accordance with this Debenture (the “Conversion Shares”),
      will be duly and validly issued, fully paid and nonassessable and in
      compliance with all applicable securities laws.  Such issuance
      will not give rise to preemptive rights, rights of first refusal or
      similar rights by any other security holders of the
      Corporation.

            

    

    

    4.2          Covenants -
Corporation.  The Corporation hereby covenants and agrees with
the Lender as follows:

    

    
      	
               
      

            	
              (a)

            	
              Payment on
      Demand.   The Corporation will duly and punctually
      pay or cause to be paid all amounts owing hereunder when
    due.

            

    

    

    
      	
               
      

            	
              (b)

            	
              To Remain a Reporting
      Corporation.  The Corporation shall cause its Common
      Shares to continue to be registered under Sections 12(b) or 12(g) of the
      Securities Exchange Act of 1934, as amended (the “Exchange Act”), to
      timely comply in all respects with its reporting and filing obligations
      under the Exchange Act, to comply with all requirements related to any
      registration statement filed pursuant to this Debenture, and to not take
      any action or file any document (whether or not permitted by the
      Securities Act of 1933, as amended (the “Securities Act”), or the
      rules promulgated thereunder) to terminate or suspend such registration or
      to terminate or suspend its reporting and filing obligations under the
      Exchange Act or Securities Act, except as permitted
  herein.

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

        11

      

    

    

    
      	
               
      

            	
              (c)

            	
              To Maintain Market for
      Securities.  The Corporation will take all action
      necessary to continue the listing or trading of its Common Shares on the
      OTC Bulletin Board or other exchange or market on which the Common Shares
      are trading.  With a view to making available to the Lender the
      benefits of Rule 144 promulgated under the Securities Act (“Rule 144”), the
      Corporation shall: (i) make and keep available adequate current public
      information, as those terms are understood and defined in Rule 144, at all
      times; (ii) use commercially reasonable efforts to file with the
      Securities and Exchange Commission (the “SEC”) in a timely manner
      all reports and other documents required of the Corporation under the
      Securities Act and the Exchange Act (at any time after the Corporation has
      become subject to such reporting requirements); (iii) take such further
      action as the Lender may reasonably request, all to the extent required
      from time to time to enable the Lender to sell the Conversion Shares
      without registration under the Securities Act within the limitation of the
      exemptions provided by Rule 144; and (iv) furnish to Lender, so long as
      the Holder owns any Conversion Shares, forthwith upon request (A) to the
      extent accurate, a written statement by the Corporation that it has
      complied with the reporting requirements of Rule 144, the Securities Act
      and the Exchange Act (at any time after the Corporation has become subject
      to such reporting requirements); (B) a copy of the most recent annual or
      quarterly report of the Corporation and such other reports and documents
      so filed by the Corporation; and (C) such other information as may be
      reasonably requested in availing the Lender of any rule or regulation of
      the SEC that permits the selling of any such securities without
      registration.

            

    

    

    
      	
               
      

            	
              (d)

            	
              Perform Covenants and
      Obligations.  The Corporation will duly and punctually
      perform or observe, as the case may be, the covenants and obligations of
      the Corporation contained in this
Debenture.

            

    

    

    
      	
               
      

            	
              (e)

            	
              Right of
      Inspection.  Without prejudice to Section 4.3(l), the
      Lender may, upon giving the Corporation two (2) Business Days notice in
      writing, examine and make copies of all books and records of the
      Corporation and the Lender may discuss the affairs, finances and accounts
      of the Corporation with the Corporation’s officers and
      accountants.

            

    

    

    
      	
               
      

            	
              (f)

            	
              Insurance.  The
      Corporation will maintain policies of insurance, including but not limited
      to general liability insurance, in the ordinary course of business
      consistent with past practice.

            

    

    

    4.3          Negative
Covenants.  Unless approved by Lender, the Corporation
covenants that, during the term of this Debenture, it will not (and it will not
permit Guarantor to):

    

    
      	
               
      

            	
              (a)

            	
              No Prior
      Liens.  Without the prior written consent of the Lender,
      create or permit to be created any Lien (other than a Permitted Lien) upon
      the Guarantor Property or any part thereof ranking or purporting to rank
      in priority to or pari passu with the Liens created by the Deed of
      Trust;

            

    

    

    
      	
               
      

            	
              (b)

            	
              No Transfer of
      Guarantor.  Sell, assign or otherwise dispose of any of
      its interest in the Guarantor;

            

    

    

    
      	
               
      

            	
              (c)

            	
              No Issuances of Shares of
      Guarantor.  Without the prior written consent of the
      Lender, issue any shares other securities in the capital of the
      Guarantor;

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

        12

      

    

    

    
      	
               
      

            	
              (d)

            	
              No Sale of
      Assets.  Except in the ordinary course of business, sell,
      lease, assign or otherwise dispose of any of the Guarantor
      Property;

            

    

    

    
      	
               
      

            	
              (e)

            	
              No Surrender of
      Assets.  Except in the ordinary course of business,
      release, surrender or abandon the Guarantor Property or any part of parts
      thereof, or move the Guarantor Property or any part or parts thereof from
      their present location or
locations;

            

    

    

    
      	
               
      

            	
              (f)

            	
              No
      Redemptions.  Apply any of the Guarantor Property to the
      redemption or acquisition of any shares in the capital of the Corporation
      or the Guarantor;

            

    

    

    
      	
               
      

            	
              (g)

            	
              No Compromise to Rights of
      Lender.  Take any actions which negatively modify, amend
      or compromise the rights of the
Lender;

            

    

    

    
      	
               
      

            	
              (h)

            	
              Amendment of Charter
      Documents/Significant Transactions.  Take any of the
      following actions if such action would negatively effect the Lender’s
      rights hereunder or under the Deed of Trust without first obtaining
      consent of the Lender, which consent will not be unreasonably
      withheld:

            

    

    

    
      	
               
      

            	
              (i)

            	
              Except
      as provided in Section 6.1, take any action which modifies or amends the
      articles of incorporation or bylaws of the Corporation or the
      Guarantor;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              Except
      as provided in Section 6.1, alter the capital structure of the Corporation
      or the Guarantor or make any changes to, or authorize any additional
      classes or series of shares in the share capital of the Corporation or the
      Guarantor, other than issuing additional Common
  Shares;

            

    

    

    
      	
               
      

            	
              (iii)

            	
              Create
      or reclassify any class of shares of the Corporation into shares with a
      preference or priority as to liquidation, dividends or assets in
      preference to the Common Shares;

            

    

    

    
      	
               
      

            	
              (iv)

            	
              Amalgamate,
      merge or consolidate with any other Person or acquire (whether through a
      stock or asset purchase) any other Person or sell, lease or convey all or
      substantially all of its assets to another
  Person;

            

    

    

    
      	
               
      

            	
              (v)

            	
              Take
      any action which would result in the sale, takeover, merger or
      reorganization or a “change in control” of the Corporation or the
      Guarantor;

            

    

    

    
      	
               
      

            	
              (vi)

            	
              Carry
      out or complete a Fundamental
Change;

            

    

    

    
      	
               
      

            	
              (i)

            	
              No
      Dividends.  At any time when the Corporation is in
      arrears of payment of principal or interest on this Debenture, the
      Corporation will not:

            

    

    

    
      	
               
      

            	
              (i)

            	
              declare
      or pay any dividends on any shares of the Corporation;
  or

            

    

    

    
      	
               
      

            	
              (ii)

            	
              call
      for redemption or purchase for cancellation or make any capital
      distribution with respect to any shares of the
  Corporation;

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

        13

      

    

    

    
      	
               
      

            	
              (j)

            	
              No
      Dissolutions.  Take any action to dissolve, liquidate or
      wind up the Corporation or the
Guarantor;

            

    

    

    
      	
               
      

            	
              (k)

            	
              No
      Continuations.  Continue or convert its corporate
      existence to another jurisdiction without first obtaining consent of the
      Lender, which consent will not be unreasonably withheld;
  or

            

    

    

    
      	
               
      

            	
              (l)

            	
              Disclosure of Material
      Non-Public Information.  Provide the Lender or its agents
      or Counsel with any information that the Corporation believes constitutes
      material non-public information, unless prior thereto the Lender shall
      have executed a written agreement regarding the confidentiality of use of
      such information (the Corporation understands and confirms that the Lender
      shall be relying on the foregoing representations in effecting
      transactions in securities of the
Corporation).

            

    

    

    4.4          Covenants -
Guarantor.  The Guarantor hereby covenants and agrees with the
Lender as follows:

    

    
      	
               
      

            	
              (a)

            	
              Maintenance of
      Properties.  The Guarantor will diligently maintain in
      its current condition with appropriate repair the real property and the
      tangible personal property and assets included in the Guarantor Property,
      reasonable wear and tear excepted, and will cause to be made all
      appropriate repairs, renewals and replacements thereof so as to preserve
      and protect such Guarantor Property in its current
    condition.

            

    

    

    
      	
               
      

            	
              (b)

            	
              Lender Empowered to Perform
      Covenants.  If the Guarantor will fail to perform any of
      the covenants or fulfil any of the conditions contained in this Debenture
      required to be performed or fulfilled by the Guarantor, the Lender may in
      its discretion, and upon giving of notice to the Guarantor, perform any of
      the said covenants or fulfil any such condition capable of being performed
      by it and, if any such covenant or condition requires the payment or
      expenditure of money, it may make such payments or expenditures out of the
      Guarantor Property or with its own funds, or with money borrowed by or
      advanced to it for such purpose, but will be under no obligation so to do;
      and all sums so expended or advanced will be at once payable by the
      Corporation, will bear interest at the rate payable hereunder until paid,
      and will be secured by the Deed of Trust, provided that any such
      performance or payment will be without prejudice to any right that the
      Lender might have as a result of such
default.

            

    

    

    
      	
               
      

            	
              (c)

            	
              To Pay Rents and
      Taxes.   The Guarantor will pay all rents, taxes,
      rates, levies, assessments and government fees or dues lawfully levied,
      assessed or imposed by any Governmental Authority in respect of the
      Guarantor Property or any part thereof as and when the same will become
      due and payable, and will provide to the Lender, when requested, evidence
      establishing such payment.

            

    

    

    
      	
               
      

            	
              (d)

            	
              Perform Covenants and
      Obligations.  The Guarantor will duly and punctually
      perform or observe, as the case may be, the covenants and obligations of
      the Guarantor contained in this
Debenture.

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

        14

      

    

    

    
      	
               
      

            	
              (e)

            	
              Environmental
      Compliance.  The Guarantor will operate all property
      owned, leased or otherwise used by it such that no material obligation,
      including a clean-up or remedial obligation, will arise under any
      Environmental Law, provided however, that if any such claim is made or any
      such obligation arises, the Guarantor will immediately satisfy or contest
      such claim or obligation at its own cost and
  expense.

            

    

    

    
      	
               
      

            	
              (f)

            	
              Right of
      Inspection.  The Lender may, upon giving the Guarantor
      two (2) Business Days notice in writing, examine and make copies of all
      books and records of the Guarantor and the Lender may discuss the affairs,
      finances and accounts of the Guarantor with the Guarantor’s officers and
      accountants and/or the Corporation’s officers and
    accountants.

            

    

    

    ARTICLE
5

    REPRESENTATIONS,
WARRANTIES AND COVENANTS OF THE LENDER

    

    5.1           Representations and
Warranties.  The Lender hereby covenants, represents and
warrants to the Corporation as follows (and the Lender acknowledges that the
Corporation is relying upon these covenants, representations and warranties and
connection with the Corporation’s issuance of this Debenture and the performance
of its obligations) as of the date hereof:

    

    
      	
               
      

            	
              (a)

            	
              Status.  The
      Lender is a corporation duly incorporated and organized in accordance
      with, and is validly subsisting and in good standing under the laws of its
      jurisdiction of incorporation.

            

    

    

    
      	
               
      

            	
              (b)

            	
              Corporate
      Power.  The Lender has the corporate power to own its
      property and assets to carry on the business as presently carried on or
      proposed to be carried on by it.  The Lender is duly qualified
      or licensed and in good standing as a corporation authorized to do
      business in each jurisdiction where it carries on its business or where
      the nature of the business carried on or proposed to be carried on or
      where the location of its property and assets requires it to be so
      licensed or qualified.

            

    

    

    
      	
               
      

            	
              (c)

            	
              Power, Capacity, Due Execution
      and Enforceability.  The Lender has the full power and
      capacity to execute, deliver and perform this Debenture.  This
      Debenture and the consummation of the transactions contemplated hereby by
      the Lender have been duly and validly authorized, executed and delivered
      by the Lender.  The execution, delivery and performance of this
      Debenture by the Lender and the consummation of the transactions
      contemplated hereby by the Lender (a) will not require the consent,
      approval or authorization of any Person or Governmental Authority (b) will
      not conflict with or result in a breach of the articles or by-laws of the
      Lender, (c) will not violate any law, rule, regulation, by-law, ordinance
      or Governmental Authorization or Order and (d) will not require any notice
      under any contract or to any Person or Governmental
    Authority.

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

        15

      

    

    

    
      	
               
      

            	
              (d)

            	
              Compliance with Laws, Permits
      and Licenses.  The Lender has conducted and is conducting
      its business in material compliance with all applicable laws, rules,
      regulations, by-laws, ordinances and Governmental Authorizations or
      Orders.  The Lender is not in material breach of such laws,
      regulations, approvals and Governmental Authorizations or Orders and the
      Lender is duly licensed, registered or qualified and duly possesses all
      material licenses, registrations, qualifications, consents, clearances and
      approvals, permits and quotas required in those jurisdictions in which the
      Lender carried on its business to enable such business to be carried on as
      now conducted.  All such material licenses, registrations,
      qualifications, consents, clearances, approvals, permits and quotas
      necessary to the conduct of Lender’s business are valid and subsisting and
      in good standing and none of the same contains or is subject to any term,
      provision, condition or limitation which may materially adversely change
      or terminate such license, registration, qualification, permit or quota by
      virtue of the completion of the transactions contemplated hereby and there
      is no proceeding, action or notice pending or threatened which may result
      in the revocation, cancellation, suspension or any material adverse
      modification thereof.

            

    

    

    
      	
               
      

            	
              (e)

            	
              Acquisition for
      Investment.  The Lender is acquiring this Debenture
      solely for its own account and not with a view to or for sale in
      connection with distribution.  The Lender does not have a
      present intention to sell this Debenture or any Common Shares issued upon
      conversion of all or any portion of this Debenture (collectively, the
      “Securities”), nor
      a present arrangement (whether or not legally binding) or intention to
      effect any distribution of any of the Securities to or through any person
      or entity; provided, however, that by making the representations herein,
      the Lender does not agree to hold the Securities for any minimum or other
      specific term and reserves the right to dispose of the Securities at any
      time in accordance with Federal and state securities laws applicable to
      such disposition.  The Lender acknowledges that it (i) has such
      knowledge and experience in financial and business matters such that
      Lender is capable of evaluating the merits and risks of Lender’s
      investment in the Corporation, (ii) is able to bear the financial risks
      associated with an investment in the Securities and (iii) has been given
      full access to such records of the Corporation and the Guarantor and to
      the officers of the Corporation and the Guarantor as it has deemed
      necessary or appropriate to conduct its due diligence
      investigation.

            

    

    

    
      	
               
      

            	
              (f)

            	
              Rule 144.  The
      Lender understands that the Securities must be held indefinitely unless
      such Securities are registered under the Securities Act or an exemption
      from registration is available.  The Lender acknowledges that it
      is familiar with Rule 144, and that the Lender has been advised that Rule
      144 permits resales only under certain circumstances.  The
      Lender understands that to the extent that Rule 144 is not available, the
      Lender will be unable to sell any Securities without either registration
      under the Securities Act or the existence of another exemption from such
      registration requirement.

            

    

    

    
      	
               
      

            	
              (g)

            	
              General.  The
      Lender understands that the Securities are being offered and sold in
      reliance on a transactional exemption from the registration requirements
      of federal and state securities laws and the Corporation is relying upon
      the truth and accuracy of the representations, warranties, agreements,
      acknowledgments and understandings of the Lender set forth herein in order
      to determine the applicability of such exemptions and the suitability of
      the Lender to acquire the Securities.  The Lender understands
      that no United States federal or state agency or any government or
      governmental agency has passed upon or made any recommendation or
      endorsement of the Securities.

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

        16

      

    

    

    
      	
               
      

            	
              (h)

            	
              No General
      Solicitation.  The Lender acknowledges that the
      Securities were not offered to the Lender by means of any form of general
      or public solicitation or general advertising, or publicly disseminated
      advertisements or sales literature, including (i) any advertisement,
      article, notice or other communication published in any newspaper,
      magazine, or similar media, or broadcast over television or radio, or (ii)
      any seminar or meeting to which the Lender was invited by any of the
      foregoing means of communications.  The Lender, in making the
      decision to acquire the Securities, has relied upon independent
      investigation made by it and has not relied on any information or
      representations made by third
parties.

            

    

    

    
      	
               
      

            	
              (i)

            	
              Accredited
      Investor.  The Lender is an “accredited investor” (as
      defined in Rule 501 of Regulation D), and the Lender has such experience
      in business and financial matters that it is capable of evaluating the
      merits and risks of an investment in the Securities.  The Lender
      is not required to be registered as a broker-dealer under Section 15 of
      the Exchange Act and the Lender is not a broker-dealer.  The
      Lender acknowledges that an investment in the Securities is speculative
      and involves a high degree of risk.

            

    

    

    
      	
               
      

            	
              (j)

            	
              Certain
      Fees.  The Lender has not employed any broker or finder
      or incurred any liability for any brokerage or investment banking fees,
      commissions, finders’ structuring fees, financial advisory fees or other
      similar fees in connection with this Debenture or the transactions
      contemplated hereby.

            

    

    

    
      	
               
      

            	
              (k)

            	
              Legend.  The
      Lender acknowledges and agrees that, until such time as the Conversion
      Shares may be sold by the Lender pursuant to Rule 144, each certificate
      representing the Conversion Shares shall be stamped or otherwise imprinted
      with a legend substantially in the following form (in addition to any
      legend required by applicable state securities or “blue sky”
      laws):

            

    

    

    THE
SECURITIES REPRESENTED BY THIS CERTIFICATE (THE “SECURITIES”) HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”)
OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE
DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE
STATE SECURITIES LAWS OR WITS BASIN PRECIOUS MINERALS INC. SHALL HAVE RECEIVED
AN OPINION OF COUNSEL THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES
ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT
REQUIRED.

    
      
         

      

      
        
        

        
          

        

      

      
         

        17

      

    

    

    
      	
               
      

            	
              (l)

            	
              Dismissal of
      Claims.  The Lender (formerly known as Advanced Drilling,
      Inc.) and its affiliates, have, on or prior to the date hereof, dismissed
      with prejudice and withdrawn or cancelled any complaint and/or notice of
      lis pendens filed relating to or pertaining any interests in the Hunter
      Bates Claims or any assets related thereto to the satisfaction of the
      Corporation and Guarantor, in their good faith
  discretion.

            

    

    

    ARTICLE
6

    CONVERSION

    

    6.1          Conversion at the Demand of
Lender.  Upon and subject to the provisions and conditions
herein contained, the Lender will have the right, at any time prior to the
Maturity Date or such time when this Debenture is fully repaid, to convert any
portion of the amounts owing under this Debenture, into Common Shares of the
Corporation at the Conversion Price Per Share subject to the
following:

    

    
      	
               
      

            	
              (a)

            	
              Procedure for
      Conversion.  If the Lender wishes to convert all or a
      portion of the amount owing under this Debenture into Common Shares (with
      the amount the Lender wishes to convert being referred to as the “Conversion Amount”), the
      Lender will deliver notice in writing to such effect (the “Conversion
      Notice”).  The Lender will indicate in the Conversion
      Notice the number of Common Shares to which the Lender is entitled upon
      conversion.  Within 10 Business Days after delivery of the
      Conversion Notice the Corporation will cause to be issued that number of
      whole Common Shares, as applicable, as equals the Conversion Amount in
      respect of which the conversion right is exercised (as specified in the
      Conversion Notice) divided by the Conversion Price Per
    Share.

            

    

    

    
      	
               
      

            	
              (b)

            	
              Mandatory
      Conversion.  If the closing market price of the Common
      Shares exceeds US $0.50 per Common Share for thirty (30) consecutive
      Business Days, then the Corporation has the option to require the
      conversion of any remaining amounts owing hereunder at the Conversion
      Price Per Share.  If the Corporation wishes to exercise its
      option to require the conversion of any remaining amounts outstanding then
      the Corporation must provide notice in writing to the Lender (the “Mandatory Conversion
      Notice”).  Within 10 Business Days after delivery of the
      Mandatory Conversion Notice the Corporation will cause to be issued that
      number of whole Common Shares, as applicable, as equals the balance then
      remaining owing under the Debenture divided by the Conversion Price Per
      Share.

            

    

    

    
      	
               
      

            	
              (c)

            	
              Adjustment of Conversion Price
      Per Share.  If and whenever at any time after the date
      this Debenture is issued, the Corporation will (i) subdivide or
      re-divide its then outstanding Common Shares into a greater number of
      Common Shares, (ii) reduce, combine or consolidate its then outstanding
      Common Shares into a lesser number of Common Shares or (iii) issue Common
      Shares (or securities exchangeable for or convertible into Common Shares)
      to the holders of all or substantially all of its then outstanding Common
      Shares by way of a stock dividend or other distribution (any of such
      events herein called a “ Fundamental Change”),
      then the Conversion Price Per Share will be adjusted effective
      immediately after the effective date of any such event in (i) or (ii)
      above or the record date at which the holders of Common Shares are
      determined for the purpose of any such dividend or distribution in (iii)
      above, as the case may be, by multiplying the Conversion Price Per Share
      by a fraction, the denominator of which will be the number of Common
      Shares outstanding immediately after giving effect to such Fundamental
      Changes including, in the case where securities exchangeable for or
      convertible into Common Shares are distributed, the number of Common
      Shares that would be outstanding if such securities were exchanged for or
      converted into Common Shares and the numerator of which will be the number
      of Common Shares outstanding on such effective date or record date, as the
      case may be, before giving effect to such Fundamental
    Changes.

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

        18

      

    

    

    
      	
               
      

            	
              (d)

            	
              No
      Restrictions.  Except as set forth in Section 5.1(f), the
      Corporation covenants that any Common Shares issued on conversion pursuant
      to this Section 6.1 will not be subject to any trading restrictions at the
      time of issuance.

            

    

    

    6.2          Capital
Alteration.  The Corporation’s issuance of Common Shares
pursuant to any voluntary or forced conversion in accordance with Section 6.1
above will be subject to satisfaction by the Corporation of the Pre-Conversion
Condition.  If the Corporation has not satisfied the Pre-Conversion
Condition as at issuance of this Debenture, then the Corporation will use its
commercially reasonable best efforts to, on or prior to the date that is ninety
(90) days after the date of issuance of this Debenture (the “Trigger Date”), satisfy the
Pre-Conversion Condition.  If the Corporation is not able to satisfy
the Pre-Conversion Condition, then on the final day of each seven (7) day period
following the Trigger Date that the Corporation is unable to satisfy the
Pre-Conversion Condition, until the date that is fifty-six (56) days after the
Trigger Date (the “Demand
Date”), the Corporation will be required to pay the Lender as liquidated
damages (and not as a penalty) an amount equal to 2% of the outstanding
Principal Amount and Interest as of such day, payable in cash or shares of
Common Shares (valued at a conversion price of Conversion Price Per Share) at
the option of the Corporation (the “Extension Fee”) and if (i) at
any time after the Trigger Date the Corporation has not paid the Extension Fee
when due and (ii) there has been no prior conversion or other payment or full
satisfaction of the amounts owing under this Debenture, then the Lender may
demand repayment by the Corporation of all of then outstanding amounts owing
under this Debenture by providing the Corporation seven (7) days written
notice.  For greater certainty, the failure of the Corporation to
satisfy payment to the Lender upon such demand being made will constitute an
Event of Default under Section 7.1 entitling the Lender to exercise any and all
remedies available to it as a consequence of such default.  If the
Pre-Conversion Condition is satisfied by obtaining shareholder approval to the
amendment of the Corporation’s articles of incorporation to increase the number
of authorized shares, then the Corporation will implement and give effect to the
increase to the number of authorized shares as soon as reasonably practicable
following obtaining shareholder approval.

    

    ARTICLE
7

    DEFAULT

    

    7.1          Events of
Default.   An Event of Default shall have occurred (and
continued through any applicable cure period) upon the occurrence of any of the
following:

    

    
      	
               
      

            	
              (a)

            	
              the
      default by the Corporation or the Guarantor in the payment of any amounts
      payable hereunder, as and when the same falls
  due;

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

        19

      

    

    

    
      	
               
      

            	
              (b)

            	
              the
      default by the Guarantor under the Deed of Trust, and such default is not
      cured (if capable of cure) within five (5) Banking Days of receiving
      written notice from the Lender in connection
  therewith;

            

    

    

    
      	
               
      

            	
              (c)

            	
              the
      Corporation will neglect to carry out or observe any other covenant or
      condition herein contained and on its part to be observed, and the
      Corporation fails to cure, or diligently commence and continue to cure to
      the satisfaction of the Lender acting reasonably, such default within five
      (5) Banking Days of receiving written notice from the Lender in connection
      therewith;

            

    

    

    
      	
               
      

            	
              (d)

            	
              the
      failure of the Corporation to satisfy the Pre-Conversion Condition on or
      before the Demand Date;

            

    

    

    
      	
               
      

            	
              (e)

            	
              the
      commission of an act of bankruptcy by the Corporation or the Guarantor, or
      the making by the Corporation or the Guarantor of a proposal or general
      assignment for the benefit of either of their creditors or other
      acknowledgement of the Corporation or the Guarantor of
      insolvency;

            

    

    

    
      	
               
      

            	
              (f)

            	
              the
      enforceability of an execution, sequestration, extent or any other process
      of any court against the Corporation or the Guarantor, or the levy of a
      distress or analogous process upon its property or assets or any part
      thereof unless the execution, sequestration, extent or other process of
      the court or distress or analogous process is in good faith disputed by
      the Corporation or the Guarantor;

            

    

    

    
      	
               
      

            	
              (g)

            	
              the
      failure by the Corporation or the Guarantor to perform or observe any of
      the covenants, conditions or agreements to be performed or observed by
      them hereunder within five (5) Banking Days of receiving written notice
      from the Lender in connection therewith;
or

            

    

    

    
      	
               
      

            	
              (h)

            	
              the
      making of any representation or warranty by the Corporation or the
      Guarantor herein which was incorrect as of the date made, and such
      representation or warranty is not cured (if capable of cure) within five
      (5) Banking Days of receiving written notice from the Lender in connection
      therewith.

            

    

    

    ARTICLE
8

    VARIOUS
PROVISIONS

    

    8.1          Release of
Security.  Upon satisfaction by the Corporation of all amounts
owing hereunder, the Lender will release its security in accordance with section
4.1 of the Deed of Trust.

    

    8.2          No Waiver.  This
Debenture may not be amended except by a writing executed by the Lender, the
Corporation and the Guarantor. No consent or waiver by the Lender will be
effective unless made in writing and signed by an authorized officer of the
Lender.  Any indulgence or forbearance or failure by the Lender to
insist on the strict and timely performance of any provision of this Debenture
will not affect the future right of the Lender to insist on the strict and
timely performance of the same or any other provision of this Debenture
thereafter.

    
      
         

      

      
        
        

        
          

        

      

      
         

        20

      

    

    

    8.3          Costs and
Expenses.  The Corporation agrees to pay to the
Lender:

    

    
      	
               
      

            	
              (a)

            	
              all
      professional fees incurred by the lender in negotiating the terms of and
      in entering into this Debenture, including but not limited to all
      professional fees incurred in preparing and negotiating the Term Sheet
      evidencing the business terms of the Debenture, negotiating and finalizing
      the form of this Debenture, and all documents to be prepared ancillary
      thereto, together with all professional fees incurred by the Lender in
      registering a mechanics lien against the Corporation, preparing and filing
      a Complaint and Lis Pendens and discharging same, all of which
      professional fees shall be for an amount no greater than US $60,000.00;
      the parties hereby acknowledge and agree that US$60,000.00 has been
      included in the Principal Amount for the payment of such professional
      fees; and

            

    

    

    
      	
               
      

            	
              (b)

            	
              forthwith
      upon demand, all reasonable costs, charges and expenses (including legal
      fees and expenses on a solicitor and his own client basis) of or incurred
      by the Lender in connection with the administration or enforcement of its
      rights hereunder, including all such costs, charges and expenses incurred
      in connection with the taking possession, protecting, preserving,
      collecting or realizing upon all or any part of the Guarantor Property,
      which costs, charges and expenses will not be subject to any
      cap.

            

    

    

    The
Corporation also agrees to pay to the Lender interest on all appropriate
professional fees, costs, charges and expenses of or incurred by it from the
date such costs, charges and expenses occurred. All such sums payable pursuant
to this Section 8.3 will be added to the Principal Amount of the indebtedness
contemplated herein and will be paid out in accordance with the terms of this
Debenture and shall be secured by the Deed of Trust as if forming part of the
original Principal Amount contemplated herein.

    

    8.4          Remedies Subject to Applicable
Law.  All rights, remedies and powers provided herein may be
exercised or enforced only to the extent that the exercise or enforcement
thereof does not violate any applicable provision of law and all the provisions
of this Debenture are intended to be subject to all applicable mandatory
provisions of law which may be controlling in the circumstances and to be
limited to the extent necessary so that they will not render this Debenture
invalid, unenforceable or not entitled to be recorded, registered or filed under
the provisions of any applicable law. Any provision hereof contrary to
applicable law will be deemed to be ineffective and will be severable from and
not invalidate any other provision of this Debenture.

    

    8.5          No
Merger.   The acceptance and holding of this Debenture
will not constitute any merger or in any way limit or affect the rights of the
Lender under any other security held for the payment and performance of any
indebtedness or liability of the Corporation.

    

    8.6          Time of the
Essence.  Time is of the essence of the provisions of this
Debenture.

    
      
         

      

      
        
        

        
          

        

      

      
         

        21

      

    

    

    ARTICLE
9

    NOTICES

    

    9.1          Notices.  Any notice
given pursuant to the provisions of this Debenture will be in writing and will
be validly and effectively given if addressed to the Corporation
at:

    

    Wits
Basin Precious Minerals Inc.

    900 IDS
Center

    80 South
8th
Street

    Minneapolis,
MN  55402-8773

    USA

    

    Attention:
President

    Facsimile:
(612) 395-5276

    

    and to
the Guarantor at:

    

    Hunter
Bates Mining Corporation

    900 IDS
Center

    80 South
8th
Street

    Minneapolis,
MN  55402-8773

    USA

    

    Attention:
President

    Facsimile:
(612) 395-5276

    

    and to
the Lender at:

    

    Cabo
Drilling (America) Inc.

    3rd
Floor, 120 Lonsdale Avenue

    North
Vancouver, BC  V7M 2E8

    Canada

    

    Attention:
President

    Facsimile:
(604) 983-8056

    

    With a
copy to:

    

    Synergy
Business Lawyers

    Suite
2480 – 1066 West Hastings Street

    Vancouver,
BC  V6E 3X2

    Canada

    

    Attention:
Darcy L. Wray

    Facsimile:
(604) 685-8187

    

    and
delivered personally or sent by telex, telegram, telecopy or similar means of
recorded communication or mailed in Canada by registered mail and will be deemed
to have been validly and effectively given (i) when delivered personally to such
address (ii) on the first Banking Day next following the sending of such notice
by telex, telegram, telecopy or similar means of recorded communication or (iii)
72 hours following the mailing of the same. Either party may from time to time
notify the other in writing of a change of address for service in the manner set
forth herein which thereafter, until changed by like notice, will be the address
of such party for all purposes of this Debenture.

    
      
         

      

      
        
        

        
          

        

      

      
         

        22

      

    

    

    ARTICLE
10

    SUPPLEMENTAL
DOCUMENTATION

    

    10.1         Further
Assurances.  At any time and from time to time, upon the
written request of the Lender, and at the sole expense of the Corporation, the
Corporation will promptly and duly execute and deliver such further instruments
and documents and take such further action as the Lender may reasonably request
for the purpose of obtaining or preserving the full benefits of this Debenture
and of the rights and powers herein granted including, without limitation, the
filing of any copies of this Debenture or any notice with respect thereto in any
jurisdiction in connection with the perfection of the Lien created
hereby.

    

    The
Corporation further agrees that the Lender will have the right to require the
form of this Debenture be amended or supplemented (i) to reflect any changes in
the laws of any relevant jurisdiction, whether arising as a result of statutory
amendments, court decisions or otherwise; (ii) to facilitate the registration of
appropriate forms of this Debenture in all appropriate jurisdictions; or (iii)
if the Corporation amalgamates with any other Person or enters into any
corporate reorganization, permitted hereunder, in each case in order to confer
upon the Lender the Lien intended to be created hereby, except that in no event
will the Lender require that any such amendment be effected or that any such
supplementary security be granted if the result thereof would be to grant to the
Lender greater rights than is otherwise contemplated in this
Debenture.

    

    10.2         Correction of Manifest
Errors.  The parties hereto may correct typographical, clerical
and other manifest errors in this Debenture provided that such correction will,
in the opinion of the Lender, in no way prejudice the rights of the Lender
hereunder, and the parties hereto may execute all such documents as may be
necessary to correct such errors.

    

    ARTICLE
11

    MISCELLANEOUS

    

    11.1         Debenture
Legislation.  In this Section 11.1, the term “applicable
legislation” means the provisions, if any, of any statute of Colorado, and the
regulations under any such statute, relating to debentures and to the rights,
duties and obligations of trustees under trust indentures, to the extent that
such provisions are at the time in force and applicable to this
Debenture.

    

    If and to
the extent that any provision of this Debenture limits, qualifies or conflicts
with a mandatory requirement of applicable legislation, such mandatory
requirement will prevail to the extent of such limitation, qualification or
conflict without invalidating the remaining provisions of this Debenture or
affecting the validity or enforceability of such provision in any other
jurisdiction.  The Corporation and the Lender agree that each will at
all times in relation to this Debenture and any action to be taken hereunder,
observe and comply with and be entitled to the benefits of applicable
legislation.

    
      
         

      

      
        
        

        
          

        

      

      
         

        23

      

    

    

    Any
statutory declaration required by applicable legislation may be made by one or
more of the officers of the Corporation.

    

    11.2        Acknowledgment of
Receipt.  The Corporation acknowledges receipt of an executed
copy of the Debenture.

    

    11.3        Financing
Statements.  The Corporation waives all rights to receive from
the Lender a copy of any financing statement, financing change statement or
verification statement filed, issued or obtained at any time in respect of this
Debenture.

    

    11.4        Waiver.  To the full
extent permitted by law, the Corporation:

    

    
      	
               
      

            	
              (a)

            	
              waives
      all of the rights, benefits and protections given by the provisions of any
      existing or future statute which impose limitations upon the powers,
      rights or remedies of a secured party or upon the methods of realization
      of security, including any seize or sue or anti-deficiency statute or any
      similar provisions of any other statute;
and

            

    

    

    
      	
               
      

            	
              (b)

            	
              agrees
      that it will not at any time insist upon, claim, plead, or take any
      benefit or advantage of any appraisement, valuation, stay, extension,
      moratorium, redemption, or similar law now or hereafter in force in order
      to prevent, delay, or hinder the enforcement of this Debenture and the
      Corporation for itself and all who claim through it, so far as it or they
      now or in the future may lawfully do
so.

            

    

    

    11.5        Pledge of
Debenture.  This Debenture may be transferred and assigned,
deposited with and pledged by the Corporation to the Lender as a general and
collateral security for the payment and performance of its future indebtedness
and obligation and liabilities and, when redelivered to the Corporation or its
nominees, will forthwith be cancelled; but this Debenture will not be deemed to
have been redeemed by reason of the Corporation having ceased to be in debt
while this Debenture was so assigned, deposited or pledged and no payment will
reduce the amount secured under the Deed of Trust unless specifically
appropriated to and noted on this Debenture at the time of payment.

    

    11.6        Further
Advances.   Neither the issue and delivery of this
Debenture nor the advance of any funds hereunder will obligate the Lender to
advance any further funds hereunder.

    

    11.7        Security
Additional.  This security is in addition to and not in
substitution for any other security now or hereafter held by the Lender and no
payment to the Lender will constitute payment under this Debenture unless
specifically so appropriated by the Lender by notation of such payment on this
Debenture.

    

    11.8        Survival of Representations and
Warranties.  All representations and warranties made by the
Corporation and/or the Guarantor hereunder shall survive the delivery of this
Debenture so long as any amounts owing under this Debenture remain
outstanding.

    
      
         

      

      
        
        

        
          

        

      

      
         

        24

      

    

    

    11.9        Assignment.  Neither
the Corporation or the Guarantor, on one hand, or the Lender, on the other hand,
will assign this Debenture or their respective rights or obligations under this
Debenture to any person without the express written consent of the other party,
which consent may not be withheld unreasonably.

    

    11.10      Forum for
Disputes.  The parties agree that any action brought by any
party under or in relation to this Debenture, will be brought exclusively in a
court located in the State of Colorado.

    Each
party irrevocably agrees to and submits to the jurisdiction and venue of any
such court and waives any objection to venue laid therein, including any
objection based on an assertion of inconvenience of such forum or forum non
conveniens.

    
      
         

      

      
        
        

        
          

        

      

      
         

        25

      

    

    IN WITNESS WHEREOF the
Corporation has caused this Debenture to be duly executed and delivered as of
the date set out below.

    
      

      
        	 
      	
                Execution
      Date

              	 
      
	
                Officer
      Signature

                 

                ____________________________

                Signature

                ____________________________

                Print
      Name

                ____________________________

                Address

                ____________________________

                Professional
      Capacity

              	
                Y

                 

                 

                09

              	
                M

                 

                 

                04

              	
                D

                 

                 

                28

              	
                 

                WITS BASIN
      PRECIOUS

                MINERALS INC. by
      its

                Authorized
      Signatory

                 

                 

                /s/
      Mark D. Dacko

                Print
      Name

                Mark
      D. Dacko

              

      

      

      
        	
                Officer
      Signature

                 

                ____________________________

                Signature

                ____________________________

                Print
      Name

                ____________________________

                Address

                ____________________________

                Professional
      Capacity

              	
                Y

                 

                 

                09

              	
                M

                 

                 

                04

              	
                D

                 

                 

                28

              	
                 

                HUNTER BATES
      MINING

                CORPORATION by
      its

                Authorized
      Signatory

                 

                 

                /s/
      Mark D. Dacko

                Print
      Name

                Mark
      D. Dacko

              	 
      
	 
      	 
      	 
      
	
                Officer
      Signature

              	 
      	 
      
	
                 

                ____________________________

                Signature

                ____________________________

                Print
      Name

                ____________________________

                Address

                ____________________________

                Professional
      Capacity

              	
                Y

                 

                 

                09

              	
                M

                 

                 

                04

              	
                D

                 

                 

                28

              	
                 

                CABO
      DRILLING (AMERICA) INC.

                by
      its Authorized Signatory

                 

                /s/
      John Versfelt

                Print
      Name

                John
      Versfelt

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00158-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00158-of-00352.parquet"}]]