Document:

White Mountain Titanium Corp.: Exhibit 10.2 - Filed by newsfilecorp.com

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED, OR REGISTERED OR QUALIFIED UNDER ANY APPLICABLE STATE
SECURITIES LAWS. IT MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED
IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, AND REGISTRATION OR QUALIFICATION UNDER ANY APPLICABLE
STATE SECURITIES LAWS OR (B) AN OPINION OF COUNSEL IN FORM AND SUBSTANCE
SATISFACTORY TO THE BORROWER THAT SUCH REGISTRATION AND QUALIFICATION ARE NOT
REQUIRED PURSUANT TO AN EXEMPTION UNDER SUCH ACT AND SECURITIES LAWS. 

WHITE MOUNTAIN TITANIUM CORPORATION 
(A NEVADA
CORPORATION) 

7% SENIOR CONVERTIBLE PROMISSORY NOTE 

	USD $2,000,000.00 	March 16, 2016 

FOR VALUE RECEIVED, WHITE MOUNTAIN TITANIUM CORPORATION,
a Nevada corporation (the “Borrower”), hereby unconditionally promises to
pay to the order of NEXO WMTM HOLDINGS, LLC, a Delaware limited liability
company (the “Holder”), the principal sum of TWO MILLION U.S. Dollars
(the “Principal Amount”), together with accrued and unpaid interest
thereon (as provided below). 

This Note is made and issued by the Borrower pursuant to the
terms of a Loan Agreement between the Borrower and the Holder dated March 16,
2016 (the “Loan Agreement”) which is expressly incorporated herein.
Capitalized terms used herein and not otherwise defined shall have the meanings
set forth in the Loan Agreement. 

In no event shall any interest charged, collected or reserved
under this Note exceed the maximum rate then permitted by applicable law and if
any such payment is paid by the Borrower, then such excess sum shall be credited
by the Holder as a payment of principal.

AS AN IMPORTANT NOTICE, THIS CONVERTIBLE PROMISSORY NOTE
CONTAINS A CONFESSION OF JUDGMENT PROVISION WHICH CONSTITUTES A WAIVER OF
IMPORTANT RIGHTS THE BORROWER MAY HAVE AS A DEBTOR AND FURTHER ALLOWS THE LENDER
OR ITS SUCCESSOR IN INTEREST TO OBTAIN A JUDGMENT AGAINST THE BORROWER WITHOUT
FURTHER NOTICE. 

1.     Interest Rate
and Repayment of Principal Amount. The Principal Amount
outstanding under this Note shall accrue interest at the rate of SEVEN PERCENT
(7%) per annum (“Standard Interest Rate”) beginning on March 16, 2016
(“Issuance Date”). Interest shall be calculated on the basis of a year of
365 days regardless of the total days the loan is outstanding. The Principal
Amount and all then-accrued and unpaid interest shall be payable two years after
the Issuance Date, on March 16, 2018 (the “Maturity Date”). Following any
Event of Default, the Principal Amount and all then-accrued and unpaid interest
shall immediately begin to accrue interest at the increased rate of TWENTY-FIVE
PERCENT (25%) per annum (“Default Interest Rate”). 

2.     Repayment
Extension. If any payment of principal or interest shall be due
on a Saturday, Sunday or any other day on which banking institutions in the
State of Utah are required or permitted to be closed, such payment shall be made
on the next succeeding business day and such extension of time shall be included
in computing interest under this Note. 

3.     Manner and
Application of Payments. All payments due hereunder shall be paid
in lawful money of the United States of America which shall be legal tender in
payment of all debts and dues, public and private, in immediately available
funds, without offset, deduction or recoupment. Any payment by check or draft
shall be subject to the condition that any receipt issued therefor shall be
ineffective unless the amount due is actually received by the Holder. Each
payment shall be applied first to the payment of any and all costs, fees and
expenses incurred by or payable to the Holder in connection with the collection
or enforcement of this Note, second to the payment of all unpaid late charges
(if any), third, to the payment of all accrued and unpaid interest hereunder and
fourth, to the payment of the unpaid Principal Amount, or in any other manner
which the Holder may, in its sole discretion, elect from time to time. 

4.     Senior Status of
Note. So long as this Note remains outstanding, neither the
Borrower nor any subsidiary of the Borrower shall, without the prior written
consent of the Holder, or the Holders holding a majority of the aggregate
outstanding principal amount of this Note, incur or otherwise become liable with
respect to any indebtedness that would rank senior or pari passu to this
Note in order of payment, other than (i) indebtedness in existence on the date
hereof, (ii) secured indebtedness used solely to finance the purchase or lease
of assets (provided that such debt may only be secured by the purchased or
leased assets and not by any other assets of the Borrower), or (iii)
indebtedness to trade creditors in the ordinary course of business. 

5.    
Conversion.

(a)     Voluntary Conversion.
Subject to and in compliance with, the provisions contained herein, the Holder
is entitled, at its option, at any time prior to the Maturity Date, or in case
this Note or some portion hereof shall have been called for prepayment prior to
such date, then, in respect of this Note or such portion hereof, until and
including, but not after, the close of business within 30 days of the date of
notice of prepayment, to convert the original principal amount of this Note (or
any portion thereof), together with accrued but unpaid interest thereon, into
fully paid and nonassessable shares (calculated as to each conversion to the
nearest share) of Series A Shares by surrender of this Note, duly endorsed (if
so required by the Borrower) or assigned to the Borrower or in blank, to “White
Mountain Titanium Corporation” at its offices, accompanied by written notice to
the Borrower, in the form set forth below, that the holder hereof selects to
convert this Note or, if less than the entire principal amount hereof is to be
converted, the portion hereof to be converted. Such conversion shall be effected
at the rate of $0.12 per Share. No fractions of Shares will be issued on
conversion. 

(b)     Mandatory Conversion. If (i)
the Borrower at any time successfully raises US$8,000,000 through the effectors
of the Holder, or otherwise, that are specifically earmarked for the Qualified
Financings Milestones (as defined below), or (ii) the Borrower and the Holder
obtain (A) a legally binding offtake agreement with a third party for water
arising from the Borrower’s desalination plant for its Cerro Blanco Project
which is (B) for an offtake volume and price that is mutually satisfactory to
the parties, then all principal and accrued interest shall automatically convert
into Series A Shares at a conversion price equal to $0.12 per share upon the
completion of the Qualified Financing or execution of the offtake agreement,
whichever first occurs. For purposes of this Section 5(b), “Qualified
Financing Milestones” means the following tasks occurring during the
designated periods: 

Year 1: Qualified Financing Milestones: In addition to the
monies represented by this Note, the Borrower shall successfully raise an
additional US$2,700,000 which are earmarked and spent effectuating the
following: 

	 	• 	Necessary drilling to update resource statement
      for issuance of NI 43-101; 
	 	• 	Appoint reputable engineering firm to oversee
      bankable feasibility study; and 
	 	• 	Begin the needed resettlement of families
      (beginning phases). 

2 

Year 2: Qualified Financing Milestones: In addition to the
monies raised for completion of Year 1 Qualified Financing Milestones, the
Borrower shall successfully raise an additional US$5,300,000 which are earmarked
and spent effectuating the following: 

	 	• 	Completion of bank feasibility study; 
	 	• 	Completion of land purchase for resettlement;
      and 
	 	• 	Commencement of technical training for project
      personnel. 

6.    
Prepayment. This Note is subject to prepayment, in
whole or in part, at any time upon not less than 30 days’ notice at the election
of the Borrower. Prepayment shall be effected by paying the amount equal to the
outstanding principal amount of this Note, plus all interest accrued to the date
of prepayment. During the 30 days following the date of any notice of
prepayment, the holder shall have the right to convert this Note on the terms
and conditions provided for in paragraph 5 above. 

7.     Change of
Control. In the event that the Borrower enters into a Change in Control
transaction, the Holder will be entitled to immediately demand repayment of all
amounts due and owing on this Note with a premium equal to 25% of all amounts
due and owing. For the purposes of this Note, a “Change in Control” means
the sale of all or substantially all the assets of the Borrower; any merger,
consolidation or acquisition of the Borrower with, by or into another
corporation, entity or person; or any change in the ownership of more than fifty
percent (50%) of the voting capital stock of the Borrower in one or more related
transactions.

8.    
Remedies. 

(a)     Remedies. Upon the
occurrence of an Event of Default (as defined in the Loan Agreement), and
without demand or notice of any kind: (i) all outstanding amounts under this
Note (including the outstanding Principal Amount plus any accrued and unpaid
interest less any principal payments previously made) shall become immediately
due and payable; and (ii) the Holder may exercise any and all rights and
remedies available to it at law, in equity or otherwise. 

(b)     Remedies Cumulative. Each
right, power and remedy of the Holder hereunder shall be cumulative and
concurrent, and the exercise or beginning of the exercise of any one or more of
them shall not preclude the simultaneous or later exercise by the Holder of any
or all such other rights, powers or remedies. No failure or delay by the Holder
to insist upon the strict performance of any one or more provisions of this Note
or to exercise any right, power or remedy consequent upon a breach thereof or
default hereunder shall constitute a waiver thereof or preclude the Holder from
exercising any such right, power or remedy. By accepting full or partial payment
after the due date of any amount of principal of or interest on this Note, or
other amounts payable on demand, the Holder shall not be deemed to have waived
the right either to require prompt payment when due and payable of all other
amounts of principal of or interest on this Note or other amounts payable on
demand, or to exercise any rights and remedies available to it in order to
collect all such other amounts due and payable under this Note. 

(c)     Costs of Collection.
If this Note is placed in the hands of an attorney for collection following
the occurrence of an Event of Default hereunder for reasons not included within
the Confession of Judgment below, the Borrower agrees to pay to the Holder upon
demand all reasonable costs and expenses, including, without limitation, all
reasonable attorneys’ fees and court costs incurred by the Holder in connection
with the enforcement or collection of this Note (whether or not any action has
been commenced by the Holder to enforce or collect this Note) or in successfully
defending any counterclaim or other legal proceeding brought by the Borrower
contesting the Holder’s right to collect the outstanding Principal Amount and/or
interest thereon. All of such costs and expenses shall bear interest at the higher of the rate of interest provided herein
(i.e., Default Interest Rate) from the date of payment by the Holder until
repaid in full. 

3 

(d)     Confession of Judgment. For
the narrow reasons of Event of Default limited to and only arising out of
Section 7(a), (d), (f), (g), (i), and (l) of the Loan Agreement (collectively,
the “Stipulated Reasons for Judgment”), each of the Borrower and SCM
Subsidiary authorizes, constitutes, and appoints Ronald N. Vance or agrees to
appoint another attorney in Utah if Ronald N. Vance is not available, whose
appointment will not be reasonably withheld by the Borrower or SCM Subidiary, as
its lawful attorney-in-fact to appear for the Borrower and SCM Subsidiary, and
to confess judgment against each of the Borrower and SCM Subsidiary in favor of
the Holder for the all of its indebtedness which shall include: (i) the
Principal Amount; (ii) all accrued interest from the Issuance Date at the
Standard Interest Rate; (iii) all accrued interest from the Event of Default at
the Default Interest Rate; (iv) plus any and all collection costs; and (v)
reasonable attorney’s fees all without prior notice or opportunity of the
Borrower or SCM Subsidiary for prior hearing, without stay of execution or right
of appeal, and expressly waiving the benefit of all exemption laws, appeals,
stay of execution or supplementary proceedings, or other relief from the
enforcement or immediate enforcement of a judgment or related proceedings on a
judgment, and any irregularity or error in entering any such judgment. No single
exercise of the power to confess judgment granted in this Section shall exhaust
the power, regardless of whether such exercise is ruled invalid, void, or
voidable by any court. The power to confess judgment granted in this Section may
be exercised from time to time by the Holder as warranted by and arising from
the Stipulated Reasons for Judgment often as the Holder of this Note may elect.

9.     Subsequent
Holders. This Note is not transferrable, in whole or in part, by
its holder, except with the written consent of the Borrower, which consent shall
not be unreasonably withheld. In the event that any holder of this Note
transfers this Note for value, the Borrower agrees that except with respect to
subsequent holders with actual knowledge of a claim or defense, no subsequent
holder of this Note shall be subject to any claims or defenses which Borrower
may have against a prior holder (which claims or defenses are not waived as to
prior holders), all of which are waived as to the subsequent holder, and that
all such subsequent holders shall have all of the rights of a holder in due
course with respect to the Borrower even though the subsequent holder may not
qualify, under applicable law, absent this paragraph, as a holder in due course.

10.    
Miscellaneous. 

(a)     Notices. Any notice, demand,
request, waiver or other communication required or permitted to be given
pursuant to this Note shall be made in compliance with the notice provisions set
forth in the Loan Agreement. 

(b)     Governing Law and Venue.
This Note shall be governed by and construed in accordance with the laws of the
State of Delaware, without reference to the choice of law principals thereof.
The Parties hereto irrevocably submit to the jurisdiction of the Courts of the
State of Utah located in Salt Lake County and the United States District Court
of Utah in any action arising out of or relating to this Note, and hereby
irrevocably agree that all claims in respect of such action may be heard and
determined in such state or federal court. The Parties hereto irrevocably waive,
to the fullest extent they may effectively do so, the defense of an inconvenient
forum to the maintenance of such action or proceeding. The Parties further
agree, to the extent permitted by law, that final and unappealable judgment
against any of them in any action or proceeding contemplated above shall be
conclusive and may be enforced in any other jurisdiction within or outside the
United States by suit on the judgment, a certified copy of which shall be
conclusive evidence of the fact and amount of such judgment. To the extent any
Party hereto has or hereafter may acquire any immunity from jurisdiction of any
court or from any legal process (whether through service or notice, attachment
prior to judgment, attachment in aid of execution, execution or otherwise) with respect to itself or
its property, each of the Parties hereto hereby irrevocably waives such immunity
in respect of its obligations under this Note. 

4 

(c)     Waiver of Jury Trial. TO THE
EXTENT PERMITTED BY APPLICABLE LAW, BORROWER HEREBY WAIVES ANY RIGHT TO TRIAL BY
JURY ON ANY CLAIM, COUNTERCLAIM, SETOFF, DEMAND, ACTION OR CAUSE OF ACTION
ARISING OUT OF OR IN ANY WAY PERTAINING OR RELATING TO THIS AGREEMENT OR THE
OTHER LOAN DOCUMENTS, OR IN ANY WAY CONNECTED WITH OR PERTAINING OR RELATED TO
OR INCIDENTAL TO ANY DEALINGS OF THE PARTIES HERETO WITH RESPECT TO THIS
AGREEMENT OR THE OTHER LOAN DOCUMENTS, OR IN CONNECTION WITH THE TRANSACTIONS
RELATED THERETO OR CONTEMPLATED THEREBY OR THE EXERCISE OF ANY PARTY’S RIGHTS
AND REMEDIES THEREUNDER, IN ALL OF THE FOREGOING CASES WHETHER NOW EXISTING OR
HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE. BORROWER
AGREES THAT LENDER MAY FILE A COPY OF THIS PARAGRAPH WITH ANY COURT AS WRITTEN
EVIDENCE OF THE KNOWING, VOLUNTARY AND BARGAINED AGREEMENT OF BORROWER
IRREVOCABLY TO WAIVE ITS RIGHTS TO TRIAL BY JURY, AND THAT ANY DISPUTE OR
CONTROVERSY WHATSOEVER BETWEEN BORROWER AND LENDER SHALL INSTEAD BE TRIED IN A
COURT OF COMPETENT JURISDICTION BY A JUDGE SITTING WITHOUT A JURY. BORROWER
HEREBY ACKNOWLEDGES THAT THIS PROVISION MAY NOT BE ORALLY WAIVED AND CERTIFIES
THAT NO REPRESENTATIVE OR AGENT OF LENDER, INCLUDING LENDER’S COUNSEL, HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT LENDER WOULD NOT, IN THE EVENT OF SUCH
DISPUTE OR CONTROVERSY, SEEK TO ENFORCE THE PROVISIONS OF THIS PARAGRAPH, AND
BORROWER ACKNOWLEDGES THAT LENDER HAS, IN PART, BEEN INDUCED TO MAKE THE
EXTENSION OF CREDIT EVIDENCED BY THE NOTE IN RELIANCE ON THE PROVISIONS OF THIS
PARAGRAPH. 

(d)     Severability. If a court of
competent jurisdiction finds any provision of this Note to be invalid or
unenforceable as to either the Borrower or the Holder, such finding shall not
render that provision invalid or unenforceable as to any other Persons. If
feasible, any such offending provision shall be deemed to be modified to be
within the limits of enforceability or validity; however, if the offending
provision cannot be so modified, it shall be stricken and all other provisions
of this Note in all other respects shall remain valid and enforceable.

(e)     Waiver. Holder shall not be
deemed to have waived any rights under this Note unless such waiver is given in
writing and signed by the Holder. No delay or omission on the part of the Holder
in exercising any right shall operate as a waiver of such right or any other
right. A waiver by the Holder of a provision of this Note shall not prejudice or
constitute a waiver of the Holder’s right otherwise to demand strict compliance
with that provision or any other provision of this Note. No prior waiver by the
Holder, nor any course of dealing between the Holder and the Borrower, shall
constitute a waiver of any of the Holder’s rights or of any obligations of the
Borrower as to any future transactions. Whenever the consent of the Holder is
required under this Note, the granting of such consent by the Holder in any
instance shall not constitute continuing consent in subsequent instances where
such consent is required, and in all cases such consent may be granted or
withheld in the sole discretion of the Holder.

(f)     Amendment. Neither this Note
nor any term hereof may be amended, waived, discharged or terminated other than
by a written instrument signed by the Borrower and the Holder. 

5 

(g)     Replacement Notes. This Note
may be exchanged by Holder at any time and from time to time for a Note or Notes
with different denominations representing an equal aggregate outstanding
Principal Amount, as reasonably requested by Holder, upon surrendering the same.
No service charge will be made for such registration or exchange. In the event
that Holder notifies the Borrower that this Note has been lost, stolen or
destroyed, a replacement Note identical in all respects to the original Note
(except for registration number and Principal Amount, if different than that
shown on the original Note), shall be issued to the Holder, provided that the
Holder executes and delivers to the Borrower an agreement reasonably
satisfactory to the Borrower to indemnify the Borrower from any loss incurred by
it in connection with the Note. 

(h)     Cancellation. After all of
the Principal Amount (including accrued but unpaid interest and default payments
at any time owed on this Note) has been paid in full, this Note shall
automatically be deemed canceled and the Holder shall promptly surrender the
Note to the Borrower at the Borrower’s principal executive offices. 

[SIGNATURE PAGE FOLLOWS] 

 

 

6 

SIGNATURE PAGE TO NOTE 

IN WITNESS WHEREOF, the undersigned has executed this Note as
of the Issuance Date. 

	 	WHITE MOUNTAIN TITANIUM CORPORATION
    
	 	  
	 	  
	 	  
	 	By: 	/s/ Michael P. Kurtanjek 
	 		Michael P. Kurtanjek, Interim CEO
    

The undersigned Guarantor unconditionally guarantees payment to
Holder of all amounts owing under the Note. This Guarantee remains in effect
until the Note is paid in full. Guarantor must pay all amounts due under this
Note when Lender makes written demand upon Guarantor. Lender is required to seek
payment from Borrower before demanding payment from Guarantor. 

	 	SOCIEDAD CONTRACTUAL MINERA WHITE
  
	 	MOUNTAIN TITANIUM 
	 	  
	 	  
	 	  
	 	By: 	/s/ Michael P. Kurtanjek 
	 		Michael P. Kurtanjek, President
    

7 

NOTICE OF CONVERSION 

PSM Holdings, Inc. 

Re: Conversion of Note 

Gentlemen: 

The undersigned owner of this Note hereby irrevocably exercises
the option to convert this Note or the portion hereof designated, into shares of
common stock of PSM Holdings, Inc., in accordance with the terms of this Note,
and directs that the shares issuable and deliverable upon the conversion,
together with any check in payment for fractional shares, be issued in the name
of and delivered to the undersigned unless a different name has been indicated
below. If shares are to be issued in the name of a person other than the
undersigned, the undersigned will pay any transfer taxes payable with respect
thereto. 

Date: _________________, 201___ 

___________________________________________________________________________________
(Signature)

FILL IN FOR REGISTRATION OF SHARES 

	(Printed Name)
    	 	(Social Security or other identifying number) 
	 	 	 
	 	 	 
	(Street Address) 	 	  
	 	 	 
	 	 	 
	(City, State, and ZIP Code) 	 	Portion to be converted (if less than all)
  

8White Mountain Titanium Corp.: Exhibit 10.3 - Filed by newsfilecorp.com

THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE
SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN
RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD
EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT
OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO,
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
APPLICABLE FEDERAL OR STATE SECURITIES LAWS. HEDGING TRANSACTIONS INVOLVING THE
SECURITIES REPRESENTED HEREBY MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE
SECURITIES ACT. NOTWITHSTANDING THE FOREGOING, THESE SECURITIES MAY BE PLEDGED
IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING
ARRANGEMENT SECURED BY SUCH SECURITIES. 

WHITE MOUNTAIN TITANIUM CORPORATION 

WARRANT TO PURCHASE
COMMON STOCK 

Warrant No.: W-2016-00001 
Number of Shares: 8,333,333

Date of Issuance: March 16, 2016 (the “Issuance Date”) 

White Mountain Titanium Corporation, a Nevada corporation (the
“Company”), hereby certifies that, for good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, Nexo WMTM
Holdings, LLC, a Delaware limited liability company, the registered holder
hereof or its permitted assigns (the “Holder”), is entitled, subject to
the terms set forth below, to purchase from the Company, at the Exercise Price
(as defined below) then in effect, upon surrender of this Warrant to purchase
Common Stock (including all Warrants to purchase Common Stock issued in
exchange, transfer or replacement hereof, the “Warrant”), at any time or
times on or after the date hereof, but not after 11:59 P.M., New York Time, on
the Expiration Date (as defined below), Eight Million Three Hundred Thirty Three
Thousand (8,333,333) fully paid nonassessable shares of Common Stock (as defined
below) (the “Warrant Shares”). Except as otherwise defined herein,
capitalized terms in this Warrant shall have the meanings set forth in Section
11. This Warrant is being issued pursuant to a $2,000,000 Loan Agreement, dated
March 16, 2016, between the Company and the Holder. 

1.      EXERCISE OF WARRANT. 

(a)     Mechanics of Exercise.
Subject to the terms and conditions hereof, this Warrant may be exercised by the
Holder on any day, in whole or in part, by (i) delivery of a written notice, in
the form attached hereto as Exhibit A (the “Exercise Notice”), of
the Holder’s election to exercise this Warrant and (ii) payment to the Company
of an amount equal to the applicable Exercise Price multiplied by the number of
Warrant Shares as to which this Warrant is being exercised (the “Aggregate
Exercise Price”) in cash or wire transfer of immediately available funds.
The Holder shall not be required to deliver the original Warrant in order to
effect an exercise hereunder; provided, however, that the Holder shall
covenant in the Exercise Notice, that it will deliver the original Warrant to
the Company within five (5) Business Days of such exercise. Execution and
delivery of the Exercise Notice with respect to less than all of the Warrant
Shares shall have the same effect as cancellation of the original Warrant and
issuance of a new Warrant evidencing the right to purchase the
remaining number of Warrant Shares. On or before the first Business Day
following the date on which the Company has received each of the Exercise Notice
and the Aggregate Exercise Price (the “Exercise Delivery Documents”), the
Company shall transmit by facsimile an acknowledgment of confirmation of receipt
of the Exercise Delivery Documents to the Holder and the Company’s transfer
agent (the “Transfer Agent”). On or before the third Business Day
following the date on which the Company has received all of the Exercise
Delivery Documents (the “Share Delivery Date”), the Company shall (X)
provided that the Transfer Agent is participating in The Depository Trust
Company (“DTC”) Fast Automated Securities Transfer Program, upon the
request of the Holder, credit such aggregate number of shares of Common Stock to
which the Holder is entitled pursuant to such exercise to the Holder’s or its
designee’s balance account with DTC through its Deposit Withdrawal Agent
Commission system, or (Y) if the Transfer Agent is not participating in the DTC
Fast Automated Securities Transfer Program, issue and dispatch by overnight
courier to the address as specified in the Exercise Notice, a certificate,
registered in the name of the Holder or its designee, for the number of shares
of Common Stock to which the Holder is entitled pursuant to such exercise. Upon
delivery of the Exercise Notice and Aggregate Exercise Price referred to in
clause (ii)(A) above the Holder shall be deemed for all corporate purposes to
have become the holder of record of the Warrant Shares with respect to which
this Warrant has been exercised, irrespective of the date of delivery of the
certificates evidencing such Warrant Shares. If this Warrant is submitted in
connection with any exercise pursuant to this Section 1(a) and the number of
Warrant Shares represented by this Warrant submitted for exercise is greater
than the number of Warrant Shares being acquired upon an exercise, then the
Company shall as soon as practicable and in no event later than three (3)
Business Days after any exercise and at its own expense, issue a new Warrant (in
accordance with Section 4(d)) representing the right to purchase the number of
Warrant Shares purchasable immediately prior to such exercise under this
Warrant, less the number of Warrant Shares with respect to which this Warrant is
exercised. No fractional shares of Common Stock are to be issued upon the
exercise of this Warrant, but rather the number of shares of Common Stock to be
issued shall be rounded up to the nearest whole number. The Company shall pay
any and all taxes, including without limitation, all documentary stamp, transfer
or similar taxes, or other incidental expense that may be payable with respect
to the issuance and delivery of Warrant Shares upon exercise of this Warrant. 

(b)     Exercise Price. For purposes
of this Warrant, “Exercise Price” means US$0.30 per share, subject to
adjustment as provided herein. 

(c)     Disputes. In the case of a
dispute as to the determination of the Exercise Price or the arithmetic
calculation of the Warrant Shares, the Company shall promptly issue to the
Holder the number of Warrant Shares that are not disputed and resolve such
dispute in accordance with terms herein. 

(d)     No Fractional Shares or
Scrip. No fractional shares or scrip representing fractional shares shall be
issued upon the exercise of this Warrant. In lieu of any fractional share to
which the Holder would otherwise be entitled, the Company shall make a cash
payment equal to the fair market value of such fractional share.

(e)     Compliance with Securities
Laws.

(i)     The Holder of this Warrant, by
acceptance hereof, acknowledges that this Warrant and the Common Stock to be
issued upon exercise hereof are being acquired solely for the Holder’s own
account and not as a nominee for any other party; and for investment, and that
the Holder will not offer, sell or otherwise dispose of this Warrant or any
Common Stock to be issued upon exercise hereof except under circumstances that
will not result in a violation of the Securities Act or any state securities
laws. Upon exercise of this Warrant, the Holder shall, if requested by the
Company, confirm in writing, in a form satisfactory to the Company, that the
Common Stock so purchased are being acquired solely for the
Holder’s own account and not as a nominee for any other party, for investment,
and not with a view toward distribution or resale.

2

(ii)     This Warrant and all Common Stock issued upon exercise
hereof unless registered under the Securities Act shall be stamped or imprinted
with a legend in substantially the following form (in addition to any legend
required by state securities laws): THESE SECURITIES HAVE NOT BEEN REGISTERED
WITH THE SECURITIES 

AND EXCHANGE COMMISSION OR THE
SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS. NOTWITHSTANDING THE FOREGOING, THESE SECURITIES MAY BE PLEDGED
IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING
ARRANGEMENT SECURED BY SUCH SECURITIES. 

2.     ADJUSTMENTS. If, prior to the
exercise of these Warrants, the Company shall have effected one or more stock
split-ups, stock dividends or other increases or reductions of the number of
shares of its Common Stock outstanding without receiving reasonable compensation
therefor in money, services, or property, the number of shares of Common Stock
subject to the Warrants shall, (i) if a net increase shall have been effected in
the number of outstanding shares of Common Stock, be proportionately increased,
and the cash consideration payable per share shall be proportionately reduced,
and, (ii) if a net reduction shall have been effected in the number of
outstanding shares of Common Stock, be proportionately reduced and the cash
consideration payable per share be proportionately increased. 

3.     WARRANT HOLDER NOT DEEMED A
STOCKHOLDER. Except as otherwise specifically provided herein, the Holder,
solely in such Person’s capacity as a holder of this Warrant, shall not be
entitled to vote or receive dividends or be deemed the holder of shares of the
Company for any purpose, nor shall anything contained in this Warrant be
construed to confer upon the Holder, solely in such Person’s capacity as the
Holder, any of the rights of a shareholder of the Company or any right to vote,
give or withhold consent to any corporate action (whether any reorganization,
issue of stock, reclassification of stock, consolidation, merger, conveyance or
otherwise), receive notice of meetings, receive dividends or subscription
rights, or otherwise, prior to the issuance to the Holder of the Warrant Shares
which such Person is then entitled to receive upon the due exercise of this
Warrant. In addition, nothing contained in this Warrant shall be construed as
imposing any liabilities on the Holder to purchase any securities (upon exercise
of this Warrant or otherwise) or as a stockholder of the Company, whether such
liabilities are asserted by the Company or by creditors of the Company.
Notwithstanding this Section 3, the Company will provide the Holder with copies
of the same notices and other information given to the stockholders of the
Company generally, contemporaneously with the giving thereof to the
stockholders. 

4.     REISSUANCE OF WARRANTS. 

(a)     Transfer of Warrant. If
this Warrant is to be transferred, the Holder shall surrender this Warrant to
the Company, whereupon the Company will forthwith issue and deliver upon the
order of the Holder a new Warrant (in accordance with Section 4(d)), registered
as the Holder may request, representing the right to purchase the number of
Warrant Shares being transferred by the Holder and, if less then the total
number of Warrant Shares then underlying this Warrant is being transferred, a
new Warrant (in accordance with Section 4(d)) to the Holder representing the
right to purchase the number of Warrant Shares not being transferred. 

3

(b)     Lost, Stolen or Mutilated
Warrant. Upon receipt by the Company of evidence reasonably satisfactory to
the Company of the loss, theft, destruction or mutilation of this Warrant, and,
in the case of loss, theft or destruction, of any indemnification undertaking by
the Holder to the Company in customary form and, in the case of mutilation, upon
surrender and cancellation of this Warrant, the Company shall execute and
deliver to the Holder a new Warrant (in accordance with Section 4(d))
representing the right to purchase the Warrant Shares then underlying this
Warrant. 

(c)     Warrant Exchangeable for
Multiple Warrants. This Warrant is exchangeable, upon the surrender hereof
by the Holder at the principal office of the Company, for a new Warrant or
Warrants (in accordance with Section 4(d)) representing in the aggregate the
right to purchase the number of Warrant Shares then underlying this Warrant, and
each such new Warrant will represent the right to purchase such portion of such
Warrant Shares as is designated by the Holder at the time of such surrender;
provided, however, that no Warrants for fractional shares of Common Stock shall
be given. 

(d)     Issuance of New Warrants.
Whenever the Company is required to issue a new Warrant pursuant to the terms of
this Warrant, such new Warrant (i) shall be of like tenor with this Warrant,
(ii) shall represent, as indicated on the face of such new Warrant, the right to
purchase the Warrant Shares then underlying this Warrant (or in the case of a
new Warrant being issued pursuant to Section 4(a) or Section 4(c), the Warrant
Shares designated by the Holder which, when added to the number of shares of
Common Stock underlying the other new Warrants issued in connection with such
issuance, does not exceed the number of Warrant Shares then underlying this
Warrant), (iii) except for new warrants issued pursuant to section 4(a), shall
have an issuance date, as indicated on the face of such new Warrant, which is
the same as the Issuance Date, and (iv) shall have the same rights and
conditions as this Warrant. 

5.     NOTICES. All notices, demands
or other communications to be given or delivered under or by reason of the
provisions of this Warrant shall be in writing and shall be deemed to have been
given when delivered personally to the recipient, sent to the recipient by
facsimile transmission, sent to the recipient by email, sent to the recipient by
reputable express courier service (charges prepaid), or three (3) Business Days
after being mailed to the recipient by certified or registered mail, return
receipt requested and postage prepaid. Such notices, demands, and other
communications will be sent to the Holder at the address or number indicated on
the records of the Company and to the principal executive offices of the
Company, or to such other address or to the attention of such other person as
the recipient party has specified by prior written notice to the sending party.

6.     AMENDMENT AND WAIVER. Except
as otherwise provided herein, the provisions of this Warrant may be amended and
the Company may take any action herein prohibited, or omit to perform any act
herein required to be performed by it, only if the Company has obtained the
written consent of the holders of these Warrants representing at least a
majority of the shares of Common Stock obtainable upon exercise of these
Warrants then outstanding; provided, however, that the Company may reduce the
Exercise Price or extend the Expiration Date without the prior consent of the
holders of these Warrants. 

7.     GOVERNING LAW; VENUE. This
Warrant shall be governed by and construed in accordance with the laws of the
State of Delaware, without reference to the choice of law principals thereof.
The Parties hereto irrevocably submit to the jurisdiction of the Courts of the
State of Utah located in Salt Lake County and the United States District
Court of Utah in any action arising out of or relating to this Warrant, and
hereby irrevocably agree that all claims in respect of such action may be heard
and determined in such state or federal court. The Parties hereto irrevocably
waive, to the fullest extent they may effectively do so, the defense of an
inconvenient forum to the maintenance of such action or proceeding. The Parties
further agree, to the extent permitted by law, that final and unappealable
judgment against any of them in any action or proceeding contemplated above
shall be conclusive and may be enforced in any other jurisdiction within or
outside the United States by suit on the judgment, a certified copy of which
shall be conclusive evidence of the fact and amount of such judgment. To the
extent any Party hereto has or hereafter may acquire any immunity from
jurisdiction of any court or from any legal process (whether through service or
notice, attachment prior to judgment, attachment in aid of execution, execution
or otherwise) with respect to itself or its property, each of the Parties hereto
hereby irrevocably waives such immunity in respect of its obligations under this
Warrant. 

4

8.     WAIVER OF JURY TRIAL. TO THE
EXTENT PERMITTED BY APPLICABLE LAW, BORROWER HEREBY WAIVES ANY RIGHT TO TRIAL BY
JURY ON ANY CLAIM, COUNTERCLAIM, SETOFF, DEMAND, ACTION OR CAUSE OF ACTION
ARISING OUT OF OR IN ANY WAY PERTAINING OR RELATING TO THIS AGREEMENT OR THE
OTHER LOAN DOCUMENTS, OR IN ANY WAY CONNECTED WITH OR PERTAINING OR RELATED TO
OR INCIDENTAL TO ANY DEALINGS OF THE PARTIES HERETO WITH RESPECT TO THIS
AGREEMENT OR THE OTHER LOAN DOCUMENTS, OR IN CONNECTION WITH THE TRANSACTIONS
RELATED THERETO OR CONTEMPLATED THEREBY OR THE EXERCISE OF ANY PARTY’S RIGHTS
AND REMEDIES THEREUNDER, IN ALL OF THE FOREGOING CASES WHETHER NOW EXISTING OR
HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE. BORROWER
AGREES THAT LENDER MAY FILE A COPY OF THIS PARAGRAPH WITH ANY COURT AS WRITTEN
EVIDENCE OF THE KNOWING, VOLUNTARY AND BARGAINED AGREEMENT OF BORROWER
IRREVOCABLY TO WAIVE ITS RIGHTS TO TRIAL BY JURY, AND THAT ANY DISPUTE OR
CONTROVERSY WHATSOEVER BETWEEN BORROWER AND LENDER SHALL INSTEAD BE TRIED IN A
COURT OF COMPETENT JURISDICTION BY A JUDGE SITTING WITHOUT A JURY. BORROWER
HEREBY ACKNOWLEDGES THAT THIS PROVISION MAY NOT BE ORALLY WAIVED AND CERTIFIES
THAT NO REPRESENTATIVE OR AGENT OF LENDER, INCLUDING LENDER’S COUNSEL, HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT LENDER WOULD NOT, IN THE EVENT OF SUCH
DISPUTE OR CONTROVERSY, SEEK TO ENFORCE THE PROVISIONS OF THIS PARAGRAPH, AND
BORROWER ACKNOWLEDGES THAT LENDER HAS, IN PART, BEEN INDUCED TO MAKE THE
EXTENSION OF CREDIT EVIDENCED BY THE NOTE IN RELIANCE ON THE PROVISIONS OF THIS
PARAGRAPH. 

9.     CONSTRUCTION; HEADINGS. This
Warrant shall be deemed to be jointly drafted by the Company and the Holder and
shall not be construed against any person as the drafter hereof. The headings of
this Warrant are for convenience of reference and shall not form part of, or
affect the interpretation of, this Warrant. 

10.     REMEDIES, OTHER OBLIGATIONS,
BREACHES AND INJUNCTIVE RELIEF. The remedies provided in this Warrant shall
be cumulative and in addition to all other remedies available under this Warrant
at law or in equity (including a decree of specific performance and/or other
injunctive relief), and nothing herein shall limit the right of the Holder to
pursue actual damages for any failure by the Company to comply with the terms of
this Warrant. The Company acknowledges that a breach by it of its obligations
hereunder will cause irreparable harm to the holder of this Warrant and that the
remedy at law for any such breach may be inadequate. The Company therefore
agrees that, in the event of any such breach or threatened breach, the Holder
shall be entitled, in addition to all other available remedies, to an injunction restraining any breach, without the necessity
of showing economic loss and without any bond or other security being required.

5

11.     TRANSFER. This Warrant may
not be offered for sale, sold, transferred or assigned without the consent of
the Company.

12.     CERTAIN DEFINITIONS. For
purposes of this Warrant, the following terms shall have the following meanings:

(a) “Business Day” means any day other than Saturday, Sunday or other day
on which commercial banks in the State of Utah are authorized or required by law
to remain closed. 

(b)     “Common Stock” means (i) the
Company’s common stock, par value $0.001 per share, and (ii) any capital stock
into which such Common Stock shall have been changed or any capital stock
resulting from a reclassification of such Common Stock. 

(c)     “Expiration Date” means
March 16, 2019, or, if such date falls on a day other than a Business Day
or on which trading does not take place on the Principal Market (a
“Holiday”), the next date that is not a Holiday; provided that the
Warrants will expire earlier upon (i) the sale of all or substantially all of
the assets of the Company or (ii) the merger or consolidation of the Company
after which the Company’s stockholders own less than a majority of the voting
stock of the surviving entity.

(d)     “Person” means an
individual, a limited liability company, a partnership, a joint venture, a
corporation, a trust, an unincorporated organization, any other entity and a
government or any department or agency thereof. 

(e)     “Principal Market” means the
principal securities exchange or trading market on which the Common Stock is
listed and trades. 

IN WITNESS WHEREOF, the Company has caused this Warrant
to Purchase Common Stock to be duly executed as of the Issuance Date set out
above. 

	 	WHITE MOUNTAIN TITANIUM
      CORPORATION 
	 	  
	 	  
	 	By: 	/s/ Michael P. Kurtanjek 
	 		Name: 
	 		Title: 

6

EXHIBIT A 

EXERCISE NOTICE 

TO BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS

WARRANT TO PURCHASE COMMON STOCK 

WHITE MOUNTAIN TITANIUM CORPORATION 

The undersigned holder hereby exercises the right to purchase
___________of the shares of Common Stock (“Warrant Shares”) of White
Mountain Titanium Corporation, a Nevada corporation (the “Company”),
evidenced by the attached Warrant to Purchase Common Stock, Warrant No.:
W____________(the “Warrant”). Capitalized terms used herein and not
otherwise defined shall have the respective meanings set forth in the Warrant.

1. Payment of Exercise Price. The holder shall pay the
Aggregate Exercise Price in the sum of $___________________to the Company in
accordance with the terms of the Warrant. 

2. Accredited Investor. The holder is an “accredited
investor” as defined in Rule 501(a) under the Securities Act. 

3. Delivery of Warrant Shares. The Company shall deliver
to the holder __________Warrant Shares in accordance with the terms of the
Warrant. 

4. Delivery of Warrant. The Holder shall deliver the
original Warrant to the Company within five (5) Business Days from the date
hereof. 

[5. The Holder hereby represents that contemporaneous with the
delivery of this exercise notice, that the Holder has sold __________Warrant
Shares and hereby represents that it has complied with the prospectus delivery
requirements of the Securities Act asapplicable in connection with such
sale.]1 

Date: __________________, 201______

	 
       Name of Registered Holder 	 
	  	 
	  	 
	By: 	 	 
		Name: 	 
		Title: 	 

 

 

_________________________________________
1 Add
only if a contemporaneous sale has occurred pursuant to a Registration Statement

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00256-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00256-of-00352.parquet"}]]