Document:

TurboSonic Technologies, Inc.: Exhibit 10.4 - Prepared by TNT Filings
Inc.

  

Exhibit 10.4

Execution Copy

GUARANTY

THIS GUARANTY, dated as of April 21, 2008, is made by TURBOSONIC TECHNOLOGIES, INC. (the “Guarantor”) in favor of CANADIAN IMPERIAL BANK OF COMMERCE, as lender (the “Lender”).

WHEREAS, it is a condition precedent to the Lender extending credit to the Borrower, under that certain Banking Agreement, dated January 14, 2008 (said agreement including all schedules attached thereto, as amended, amended and restated, supplemented or otherwise modified from time to time, being the “Banking Agreement”), between Turbosonic Inc. (the “Borrower”) and the Lender, that the Guarantor execute and deliver to the Lender this guaranty;
 

WHEREAS, the Guarantor wishes to guaranty the Borrower’s obligations to the Lender under or in respect of the Banking Agreement as provided herein; and

WHEREAS, contemporaneously with this Guaranty, the Guarantor will also enter into a Security Agreement, dated as of the date hereof, in favor of the Lender to secure the Guarantor’s obligations hereunder;

NOW, THEREFORE, the Guarantor hereby agrees with the Lender as follows:

1.

Definitions.  Capitalized terms used herein, and not otherwise defined herein, shall have the meanings ascribed to such terms in the Banking Agreement.

2.

Guaranty of Payment and Performance.  Guarantor hereby absolutely and unconditionally guarantees to the Lender the full and punctual payment when due (whether at stated maturity, by required pre-payment, by acceleration or otherwise), of all advances to, and debts, liabilities, obligations, covenants and duties of, the Borrower, including all such which would become due but for the operation of the automatic stay pursuant to §362(a) of the Federal Bankruptcy Code and the operation of §§502(b) and 506(b) of the Federal Bankruptcy Code (the “Obligations”).  This Guaranty is an absolute, unconditional and continuing guaranty of the full and punctual payment of all of the Obligations and not of their collectibility only and is in no way conditioned upon any requirement that the Lender first attempt to collect any of the Obligations from the Borrower or resort to any collateral security or other means of obtaining payment.  Should the Borrower default in the payment of any of the Obligations, the obligations of the Guarantor hereunder with respect to such Obligations in default shall, upon demand by the Lender, become immediately due and payable to the Lender, without any other demand or notice of any nature, all of which are expressly waived by Guarantor.  Payments by the Guarantor hereunder may be required by the Lender on any number of occasions.  All payments by Guarantor hereunder shall be made to the Lender in the manner and at the place of payment specified therefor in the Banking Agreement.

3.

Guarantor’ Agreement to Pay Enforcement Costs, etc.  Guarantor agrees, as a principal obligor and not as a guarantor only, to pay to the Lender , within ten (10) Business Days after receiving a written demand therefor, all reasonable out-of-pocket costs and expenses (including court costs and legal expenses) incurred or expended by the Lender in connection with the Obligations, this Guaranty and the enforcement thereof, together with interest on amounts recoverable under this §3 from the time when such amounts become due until payment, whether before or after judgment provided that if such interest exceeds the maximum amount permitted to be paid under applicable law, then such interest shall be reduced to such maximum permitted amount.

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4.

Waivers by Guarantor; Lender’s Freedom to Act.  Guarantor agrees that the Obligations will be paid and performed strictly in accordance with their respective terms, regardless of any law, regulation or order now or hereafter in effect in any jurisdiction affecting any of such terms or the rights of the Lender with respect thereto.  To the extent permitted by law, Guarantor waives promptness, diligence, presentment, demand, protest, notice of acceptance, notice of any Obligations incurred and all other notices of any kind, all defenses which may be available by virtue of any valuation, stay, moratorium law or other similar law now or hereafter in effect, any right to require the marshalling of assets of the Borrower or any other entity or other person primarily or secondarily liable with respect to any of the Obligations, and all suretyship defenses generally.  Without limiting the generality of the foregoing, Guarantor agrees to the provisions of any instrument evidencing, securing or otherwise executed in connection with any Obligation and agrees that the obligations of Guarantor hereunder shall not be released or discharged, in whole or in part, or otherwise affected by (i) the failure of the Lender to assert any claim or demand or to enforce any right or remedy against the Borrower or any other entity or other person primarily or secondarily liable with respect to any of the Obligations; (ii) any extensions, compromise, refinancing, consolidation or renewals of any Obligation; (iii) any change in the time, place or manner of payment of any of the Obligations or any rescissions, waivers, compromise, refinancing, consolidation or other amendments or modifications of any of the terms or provisions of the Banking Agreement or any other agreement evidencing, securing or otherwise executed in connection with any of the Obligations; (iv) the addition, substitution or release of any entity or other person primarily or secondarily liable for any Obligation; (v) the adequacy of any rights which the Lender may have against any collateral security or other means of obtaining repayment of any of the Obligations; (vi) the impairment of any collateral securing any of the Obligations, including without limitation the failure to perfect or preserve any rights which the Lender might have in such collateral security or the substitution, exchange, surrender, release, loss or destruction of any such collateral security; or (vii) any other act or omission which might in any manner or to any extent vary the risk of Guarantor or otherwise operate as a release or discharge of Guarantor, all of which may be done without notice to Guarantor.  To the fullest extent permitted by law, Guarantor hereby expressly waives any and all rights or defenses arising by reason of (A) any “one action” or “anti-deficiency” law which would otherwise prevent the Lender from bringing any action, including any claim for a deficiency, or exercising any other right or remedy (including any right of set-off), against Guarantor before or after the Lender’s commencement or completion of any foreclosure action, whether judicially, by exercise of power of sale or otherwise, or (B) any other law which in any other way would otherwise require any election of remedies by the Lender.

5.

Unenforceability of Obligations Against Borrower; Severability.  

5.1.

Unenforceability of Obligations Against Borrower.  If for any reason the Borrower has no legal existence or is under no legal obligation to discharge any of the Obligations, or if any of the Obligations have become irrecoverable from the Borrower by reason of the Borrower’s insolvency, bankruptcy or reorganization or by other operation of law or for any other reason, this Guaranty shall nevertheless be binding on Guarantor to the same extent as if Guarantor at all times had been the principal obligor on all such Obligations.  In the event that acceleration of the time for payment of any of the Obligations is stayed upon the insolvency, bankruptcy or reorganization of the Borrower, or by operation of law or for any other reason, all such amounts otherwise subject to acceleration under the terms of the Banking Agreement, this Guaranty or the Security Agreement (the “Loan Documents”) or any other agreement evidencing, securing or otherwise executed in connection with any Obligation shall be immediately due and payable by the Guarantor.

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5.2.

Severability, etc.  It is the intention and agreement of Guarantor and the Lender that the obligations of Guarantor under this Guaranty shall be valid and enforceable against Guarantor to the maximum extent permitted by applicable law.  Accordingly, if any provision of this Guaranty creating any obligation of Guarantor in favor of the Lender shall be declared to be invalid or unenforceable in any respect or to any extent, it is the stated intention and agreement of Guarantor and the Lender that any balance of the obligation created by such provision and all other obligations of Guarantor to the Lender created by other provisions of this Guaranty shall remain valid and enforceable.  Likewise, if by final order a court of competent jurisdiction shall declare any sums which the Lender may be otherwise entitled to collect from Guarantor under this Guaranty to be in excess of those permitted under any law (including any federal or state fraudulent conveyance or like statute or rule of law) applicable to Guarantor’s obligations under this Guaranty, it is the stated intention and agreement of Guarantor and the Lender that all sums not in excess of those permitted under such applicable law shall remain fully collectible by the Lender from Guarantor.

6.

Subrogation; Subordination.  

6.1.

Waiver of Rights Against Borrower.  Until the final payment and performance in full of all of the Obligations (other than inchoate unasserted indemnification liabilities arising under the Loan Documents): (i) Guarantor shall not exercise and hereby waives any rights against the Borrower arising as a result of payment by Guarantor hereunder, by way of subrogation, reimbursement, restitution, contribution or otherwise, and will not prove any claim in competition with the Lender in respect of any payment hereunder in any bankruptcy, insolvency or reorganization case or proceedings of any nature; (ii) Guarantor will not claim any setoff, recoupment or counterclaim against the Borrower in respect of any liability of Guarantor to the Borrower; and (iii) Guarantor waives any benefit of and any right to participate in any collateral security which may be held by the Lender.

6.2.

Subordination.  The payment of any amounts due with respect to any indebtedness of the Borrower for money borrowed or credit received now or hereafter owed to Guarantor is hereby subordinated to the prior payment in full of all of the Obligations.  Guarantor agrees that, after the occurrence of any default in the payment or performance of any of the Obligations, Guarantor will not demand, sue for or otherwise attempt to collect any such indebtedness of the Borrower to Guarantor until all of the Obligations shall have been paid in full (other than inchoate unasserted indemnification liabilities arising under the Loan Documents).  If, notwithstanding the foregoing sentence, Guarantor shall collect, enforce or receive any amounts in respect of such indebtedness while any Obligations are still outstanding, such amounts shall be collected, enforced and received by Guarantor as trustee for the Lender and be paid over to the Lender, on account of the Obligations without affecting in any manner the liability of Guarantor under the other provisions of this Guaranty.

6.3.

Provisions Supplemental.  The provisions of this § shall be supplemental to and not in derogation of any rights and remedies of the Lender under any separate subordination agreement which the Lender may at any time and from time to time enter into with Guarantor for the benefit of the Lender.

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7.

Setoff.  Regardless of the adequacy of any collateral security or other means of obtaining payment of any of the Obligations, the Lender is hereby authorized without notice to Guarantor (any such notice being expressly waived by the Guarantor) and to the fullest extent permitted by law, when any amount is due and payable by the Guarantor hereunder, to set off and apply such deposits and other sums against the obligations of Guarantor under this Guaranty, whether or not the Lender shall have made any demand under this Guaranty.

8.

Further Assurances.  Guarantor agrees that it will from time to time, at the reasonable request of the Lender, do all such things and execute all such documents as the Lender may consider reasonably necessary or desirable to give full effect to this Guaranty and to perfect and preserve the rights and powers of the Lender hereunder.  Guarantor acknowledges and confirms that Guarantor itself has established its own adequate means of obtaining from the Borrower on a continuing basis all information desired by Guarantor concerning the financial condition of the Borrower and that Guarantor will look to the Borrower and not to the Lender in order for Guarantor to keep adequately informed of changes in the Borrower’s financial condition.

9.

Termination; Reinstatement.  This Guaranty shall remain in full force and effect until the Obligations (other than inchoate unasserted indemnification liabilities arising under the Loan Documents) have been indefeasibly paid in full in cash, all of the credit commitments under the Banking Agreement and Loan Documents have been terminated and the Banking Agreement and the Loan Documents shall have been terminated.  This Guaranty shall continue to be effective or be reinstated, if at any time any payment made or value received with respect to any Obligation is rescinded or must otherwise be returned by the Lender upon the insolvency, bankruptcy or reorganization of the Borrower, or otherwise, all as though such payment had not been made or value received.

10.

Successors and Assigns.  This Guaranty shall be binding upon Guarantor, its successors and assigns, and shall inure to the benefit of the Lender and, in accordance with the term of the Banking Agreement, their respective successors, transferees and assigns.  Without limiting the generality of the foregoing sentence, the Lender may assign or otherwise transfer the Banking Agreement, the other Loan Documents or any other agreement or note held by it evidencing, securing or otherwise executed in connection with the Obligations, to any other entity or other person, and such other entity or other person shall thereupon become vested, to the extent set forth in the agreement evidencing such assignment or transfer, with all the rights in respect thereof granted to the Lender herein, all in accordance with the Banking Agreement.  Guarantor may not assign any of its obligations hereunder.

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11.

Amendments and Waivers.  No amendment to or waiver of any provision of this Guaranty, nor consent to any departure by Guarantor herefrom, shall in any event be effective unless the same shall be in writing and signed by the Lender and, in the case of an amendment, the Guarantor, and then any such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.  No act, failure or delay by the Lender shall constitute a waiver of its rights and remedies hereunder or otherwise.  No single or partial waiver by the Lender of any default or right or remedy that it may have (i) shall operate as a waiver of any other default, right or remedy or of the same default, right or remedy on a future occasion or (ii) shall preclude the Lender from any further exercise of any such right or remedy.

12.

Notices. All notices and other communications provided for herein or given pursuant hereto shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by telecopier as follows:

(a)

if to the Guarantor, to the address or telecopier number specified on below Guarantor’s name on the signature page hereto; and

(b)

if to the Lender , at the address for notices set forth in the Banking Agreement,

or in either case at such other address as either party may designate by notice in writing to the other.

13.

Governing Law; Consent to Jurisdiction.  

13.1.

Governing Law.  THIS GUARANTY SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW, BUT OTHERWISE WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES.

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13.2.

Jurisdiction.  GUARANTOR AND, BY ACCEPTANCE OF THIS GUARANTY, THE LENDER, IRREVOCABLY AND UNCONDITIONALLY SUBMIT, FOR THEMSELVES AND THEIR PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS GUARANTY, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE GUARANTOR AND, BY ACCEPTANCE OF THIS GUARANTY, THE LENDER, IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT.  GUARANTOR AND, BY ACCEPTANCE OF THIS GUARANTY, THE LENDER, AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.  NOTHING IN THIS GUARANTY SHALL AFFECT ANY RIGHT THAT THE LENDER MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS GUARANTY AGAINST GUARANTOR OR ITS RESPECTIVE PROPERTIES IN THE COURTS OF ANY JURISDICTION.  GUARANTOR IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS GUARANTY IN ANY COURT REFERRED TO IN THIS §13.2.  GUARANTOR HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.  GUARANTOR IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN THIS GUARANTY.  NOTHING IN THIS GUARANTY WILL AFFECT THE RIGHT OF GUARANTOR OR BENEFICIARY OF THIS GUARANTY TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

14.

Waiver of Jury Trial.  GUARANTOR, AND BY ACCEPTANCE OF THIS GUARANTY, THE LENDER, IRREVOCABLY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT ANY OF THEM MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATED TO THIS GUARANTY OR THE TRANSACTIONS CONTEMPLATED HEREBY, OR IN ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE PARTIES TO THE BANKING AGREEMENT AGAINST ANY OTHER PARTY OR ANY PARTICIPANT OR ASSIGNEE, WHETHER WITH RESPECT TO CONTRACT CLAIMS, TORT CLAIMS, OR OTHERWISE.  GUARANTOR, AND BY ACCEPTANCE OF THIS GUARANTY, THE LENDER, AGREES THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE TRIED BY A COURT TRIAL WITHOUT A JURY.  WITHOUT LIMITING THE FOREGOING, GUARANTOR, AND BY ACCEPTANCE OF THIS GUARANTY, THE LENDER, FURTHER AGREES THAT THEIR RIGHT TO A TRIAL BY JURY IS WAIVED BY OPERATION OF THIS §14 AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF THIS GUARANTY OR ANY PROVISION HEREOF.  THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS GUARANTY.

15.

Miscellaneous.  This Guaranty constitutes the entire agreement of the Guarantor with respect to the matters set forth herein.  The rights and remedies herein provided are cumulative and not exclusive of any remedies provided by law or any other agreement, and this Guaranty shall be in addition to any other guaranty of or collateral security for any of the Obligations.  The invalidity or unenforceability of any one or more sections of this Guaranty shall not affect the validity or enforceability of its remaining provisions.  Captions are for the ease of reference only and shall not affect the meaning of the relevant provisions.  The meanings of all defined terms used in this Guaranty shall be equally applicable to the singular and plural forms of the terms defined.

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16.

Counterparts; Integration; Effectiveness.  This Guaranty may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  This Guaranty and the other Loan Documents constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof.  Delivery of an executed counterpart of a signature page of this Guaranty by telecopy or other electronic transmission shall be effective as delivery of a manually executed counterpart of this Guaranty.

[Remainder of Page Left Intentionally Blank; Signature Page Follows]

 

 

 

 

 

 

 

 

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IN WITNESS WHEREOF, Guarantor has caused this Guaranty to be executed and delivered as of the date first above written.

	 	TURBOSONIC
    TECHNOLOGIES, INC.
	 	 
	 	
By:  /s/ Edward
F. Spink

Name: Edward F. Spink

Title: Chief Executive Officer

Address:

550 Parkside Dr., Suite A-14

Waterloo, ON N2L 5V4

Facsimile number: (519) 885-6992

    

Accepted and agreed to as of 

the date first written above by:

CANADIAN IMPERIAL BANK OF COMMERCE

By:  /s/ Mark Berlingieri

Name: Mark Berlingieri

Title:  Authorized Signatoryex4_1.htm

    2007
STOCK OPTION PLAN OF

    

    Ivany
Mining Inc.

    

    A
Delaware Corporation

    

    

    October
18, 2007

    

    

    

    STOCK
OPTION PLAN OF

    Ivany
Mining Inc.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    TABLE
OF CONTENTS

    

    Page No.

    

    

    
      	
               
      

            	PURPOSE
      OF THE PLAN	
              1

            

    

    

    
      	
               
      

            	TYPES
      OF STOCK OPTIONS	
              1

            

    

    

    
      	
               
      

            	DEFINITIONS	
              1

            

    

    

    
      	
               
      

            	ADMINISTRATION
      OF THE PLAN	
              2

            

    

    

    
      	
               
      

            	GRANT
      OF OPTIONS	
              3

            

    

    

    
      	
               
      

            	STOCK
      SUBJECT TO PLAN	
              4

            

    

    

    
      	
               
      

            	TERMS
      AND CONDITIONS OF OPTIONS	
              4

            

    

    

    
      	
               
      

            	TERMINATION
      OR AMENDMENT OF THE PLAN 	
              9

            

    

    

    
      	
               
      

            	INDEMNIFICATION	
              9

            

    

    

    
      	
               
      

            	EFFECTIVE
      DATE AND TERM OF THE PLAN	
              10

            

    

    

    
      	
               
      

            	MISCELLANEOUS	
              10

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    STOCK
OPTION PLAN OF

    Ivany
Mining Inc.

    

    A
Delaware Corporation

    

    
      	
              1.  

            	
              PURPOSE
      OF THE PLAN

            

    

    

    The
purpose of this Plan is to strengthen Ivany Mining Inc. (hereinafter the
“Company”) by providing incentive stock options as a means to attract, retain
and motivate key corporate personnel, through ownership of stock of the Company,
and to attract individuals of outstanding ability to render services to and
enter the employment of the Company or its subsidiaries.

    

    
      	
              2.  

            	
              TYPES
      OF STOCK OPTIONS

            

    

    

    There
shall be two types of Stock Options (referred to herein as "Options" without
distinction between such different types) that may be granted under this Plan:
(1) Options intended to qualify as Incentive Stock Options under Section 422 of
the Internal Revenue Code (“Qualified Stock Options”), and (2) Options not
specifically authorized or qualified for favorable income tax treatment under
the Internal Revenue Code (“Non-Qualified Stock Options”).

    

    
      	
              3.  

            	
              DEFINITIONS

            

    

    

    The
following definitions are applicable to the Plan:

    

    
      	
              (1)  

            	
              Board.  The
      Board of Directors of the Company.

            

    

    

    
      	
              (2)  

            	
              Code.  The
      Internal Revenue Code of 1986, as amended from time to
    time.

            

    

    

    
      	
              (3)  

            	
              Common
      Stock. The shares of Common Stock of the
  Company.

            

    

    

    
      	
              (4)  

            	
              Company.
      Ivany Mining Inc., a Delaware
corporation.

            

    

    

    
      	
              (5)  

            	
              Consultant.
      An individual or entity that renders professional services to the Company
      as an independent contractor and is not an employee or under the direct
      supervision and control of the
Company.

            

    

    

    
      	
              (6)  

            	
              Disabled
      or Disability.  For the purposes of Section 7, a disability of
      the type defined in Section 22(e)(3) of the Code. The determination of
      whether an individual is Disabled or has a Disability is determined under
      procedures established by the Plan Administrator for purposes of the
      Plan.

            

    

    

    
      	
              (7)  

            	
              Fair
      Market Value. For purposes of the Plan, the “fair market value" per share
      of Common Stock of the Company at any date shall be: (a) if the Common
      Stock is listed on an established stock exchange or exchanges or the
      NASDAQ National Market, the closing price per share on the last trading
      day immediately preceding such date on the principal exchange on which it
      is traded or as reported by NASDAQ; or (b) if the Common Stock is not then
      listed on an exchange or the NASDAQ National Market, but is quoted on the
      NASDAQ Small Cap Market, the NASDAQ electronic bulletin board or the
      National Quotation Bureau pink sheets, the average of the closing bid and
      asked prices per share for the Common Stock as quoted by NASDAQ or the
      National Quotation Bureau, as the case may be, on the last trading day
      immediately preceding such date; or (c) if the Common Stock is not then
      listed on an exchange or the NASDAQ National Market, or quoted by NASDAQ
      or the National Quotation Bureau, an amount determined in good faith by
      the Plan Administrator.

            

    

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    
      
        	
                  

              	
                immediately
      preceding such date on the principal exchange on which it is traded or as
      reported by NASDAQ; or (b) if the Common Stock is not then listed on an
      exchange or the NASDAQ National Market, but is quoted on the NASDAQ Small
      Cap Market, the NASDAQ electronic bulletin board or the National Quotation
      Bureau pink sheets, the average of the closing bid and asked prices per
      share for the Common Stock as quoted by NASDAQ or the National Quotation
      Bureau, as the case may be, on the last trading day immediately preceding
      such date; or (c) if the Common Stock is not then listed on an exchange or
      the NASDAQ National Market, or quoted by NASDAQ or the National Quotation
      Bureau, an amount determined in good faith by the Plan
      Administrator.

              

      

    

     

    
      	
              (8)  

            	
              Incentive
      Stock Option. Any Stock Option intended to be and designated as an
      "incentive stock option" within the meaning of Section 422 of the
      Code.

            

    

    

    
      	
              (9)  

            	
              Non-Qualified
      Stock Option. Any Stock Option
      that is not an Incentive Stock
Option.

            

    

    

    
      	
              (10)  

            	
              Optionee.
      The recipient of a Stock Option.

            

    

    

    
      	
              (11)  

            	
              Plan
      Administrator. The board or the Committee designated by the Board pursuant
      to Section 4 to administer and interpret the terms of the
      Plan.

            

    

    

    
      	
              (12)  

            	
              Stock
      Option. Any option to purchase shares of Common Stock granted pursuant to
      Section 7.

            

    

    

    
      	
              4.  

            	
              ADMINISTRATION
      OF THE PLAN

            

    

    

    This Plan
shall be administered by the Board of Directors or by a Compensation Committee
(hereinafter the “Committee”) composed of members selected by, and serving at
the pleasure of, the Board of Directors (the “Plan Administrator”). Subject to
the provisions of the Plan, the Plan Administrator shall have authority to
construe and interpret the Plan, to promulgate, amend, and rescind rules and
regulations relating to its administration, to select, from time to time, among
the eligible employees and non-employee consultants (as determined pursuant to
Section 5) of the Company and its subsidiaries those employees and consultants
to whom Stock Options will be granted, to determine the duration and manner of
the grant of the Options, to determine the exercise price, the number of shares
and other terms covered by the Stock Options, to determine the duration and
purpose of leaves of absence which may be granted to Stock Option holders
without constituting termination of their employment for purposes of the Plan,
and to make all of the determinations necessary or advisable for administration
of the Plan. The interpretation and construction by the Plan Administrator of
any provision of the Plan, or of any agreement issued and executed under the
Plan, shall be final and binding upon all parties. No member of the Committee or
Board shall be liable for any action or determination undertaken or made in good
faith with respect to the Plan or any agreement executed pursuant to the
Plan.

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    If a
Committee is established, all of the members of the Committee shall be persons
who, in the opinion of counsel to the Company, are outside directors and
"non-employee directors" within the meaning of Rule 16b-3(b)(3)(i) promulgated
by the Securities and Exchange Commission.  ­From time to time,
the Board may increase or decrease the size of the Committee, and add additional
members to, or remove members from, the Committee. The Committee shall act
pursuant to a majority vote, or the written consent of a majority of its
members, and minutes shall be kept of all of its meetings and copies thereof
shall be provided to the Board. Subject to the provisions of the Plan and the
directions of the Board, the Committee may establish and follow such rules and
regulations for the conduct of its business as it may deem
advisable.

    

    At the
option of the Board, the entire Board of Directors of the Company may act as the
Plan Administrator during such periods of time as all members of the Board are
“outside directors” as defined in Treas. Regs. §1.162-27(e)(3), except that this
requirement shall not apply during any period of time prior to the date the
Company's Common Stock becomes registered pursuant to Section 12 of the
Securities Exchange Act of 1934, as amended.

    

    
      	
              5.  

            	
              GRANT
      OF OPTIONS

            

    

    

    The
Company is hereby authorized to grant Incentive Stock Options as defined in
section 422 of the Code to any employee or director (including any officer or
director who is an employee) of the Company, or of any of its subsidiaries;
provided, however, that no person who owns stock possessing more than 10% of the
total combined voting power of all classes of stock of the Company, or any of
its parent or subsidiary corporations, shall be eligible to receive an Incentive
Stock Option under the Plan unless at the time such Incentive Stock Option is
granted the Option price is at least 110% of the fair market value of the shares
subject to the Option, and such Option by its terms is not exercisable after the
expiration of five years from the date such Option is granted.

    

    An
employee may receive more than one Option under the Plan. Non-Employee Directors
shall be eligible to receive Non-­Qualified Stock Options in the discretion
of the Plan Administrator.  In addition, Non­-Qualified Stock
Options may be granted to employees, officers, directors and consultants who are
selected by the Plan Administrator.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	
              6.  

            	
              STOCK
      SUBJECT TO PLAN

            

    

    

    The stock
available for grant of Options under the Plan shall be shares of the Company's
authorized but unissued, or reacquired, Common Stock. Subject to adjustment as
provided herein, the maximum aggregate number of shares of the Company’s common
stock that may be optioned and sold under the Plan is fifteen percent (15%) of
the issued and outstanding shares of the Company’s Common Stock on the date this
Plan is adopted by the Company’s Board of Directors.  The maximum
aggregate number of shares of the Company’s Common Stock that may be optioned
and sold under the Plan will be increased effective the first day of each of the
Company’s fiscal quarters, by an amount equal to the lesser of:

    

    
      	
              (1)  

            	
              The
      number of shares which is equal to 15% of the outstanding shares of the
      Common Stock on the first day of the applicable fiscal quarter, less the
      number of shares of Common Stock which may be optioned and sold under the
      Plan prior to the first day of the applicable fiscal quarter;
      and

            

    

    

    
      	
              (2)  

            	
              a
      lesser number of shares of Common Stock determined by the board of
      directors of the Company.

            

    

    

    The
maximum number of shares for which an Option may be granted to any Optionee
during any calendar year shall not exceed three percent (3%) of the issued and
outstanding common shares of the Company.  In the event that any
outstanding Option under the Plan for any reason expires or is terminated, the
shares of Common Stock allocable to the unexercised portion of the Option shall
again be available for Options under the Plan as if no Option had been granted
with regard to such shares.

    

    
      	
              7.  

            	
              TERMS
      AND CONDITIONS OF OPTIONS

            

    

    

    Options
granted under the Plan shall be evidenced by agreements (which need not be
identical) in such form and containing such provisions that are consistent with
the Plan as the Plan Administrator shall from time to time approve. Such
agreements may incorporate all or any of the terms hereof by reference and shall
comply with and be subject to the following terms and conditions:

    

    
      	
              (1)  

            	
              Number
      of Shares. Each Option agreement shall specify the number of shares
      subject to the Option.

            

    

    

    
      	
              (2)  

            	
              Option
      Price. The purchase price for the shares subject to any Option shall be
      determined by the Plan Administrator at the time of the grant, but shall
      not be less than 85% of Fair Market Value per share. Anything to the
      contrary notwithstanding, the purchase price for the shares subject to any
      Incentive Stock Option shall not be less than 100% of the Fair Market
      Value of the shares of Common Stock of the Company on the date the Stock
      Option is granted. In the case of any Incentive Stock Option granted to an
      employee who owns stock possessing more than 10% of the total combined
      voting power of all classes of stock of the Company, or any of its parent
      or subsidiary corporations, the Option price shall not be less than 110%
      of 

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    the Fair Market
Value per share of the Common Stock of the Company on the date the Option is
granted.  For purposes of determining the stock ownership of an
employee, the attribution rules of Section 424(d) of the Code shall apply.

     

    
      	
              (3)  

            	
              Notice
      and Payment. Any exercisable portion of a Stock Option may be exercised
      only by: (a) delivery of a written notice to the Company prior to the time
      when such Stock Option becomes unexercisable herein, stating the number of
      shares bring purchased and complying with all applicable rules established
      by the Plan Administrator; (b) payment in full of the exercise price of
      such Option by, as applicable, delivery of: (i) cash or check for an
      amount equal to the aggregate Stock Option exercise price for the number
      of shares being purchased, (ii) in the discretion of the Plan
      Administrator, upon such terms as the Plan Administrator shall approve, a
      copy of instructions to a broker directing such broker to sell the Common
      Stock for which such Option is exercised, and to remit to the Company the
      aggregate exercise price of such Stock Option (a “cashless exercise”), or
      (iii) in the discretion of the Plan Administrator, upon such terms as the
      Plan Administrator shall approve, shares of the Company's Common Stock
      owned by the Optionee, duly endorsed for transfer to the Company, with a
      Fair Market Value on the date of delivery equal to the aggregate purchase
      price of the shares with respect to which such Stock Option or portion is
      thereby exercised (a "stock-for-stock exercise"); (c) payment of the
      amount of tax required to be withheld (if any) by the Company, or any
      parent or subsidiary corporation as a result of the exercise of a Stock
      Option.  At the discretion of the Plan Administrator, upon such
      terms as the Plan Administrator shall approve, the Optionee may pay all or
      a portion of the tax withholding by: (i) cash or check payable to the
      Company, (ii) a cashless exercise, (iii) a stock-for-stock exercise, or
      (iv) a combination of one or more of the foregoing payment methods; and
      (d) delivery of a written notice to the Company requesting that the
      Company direct the transfer agent to issue to the Optionee (or his
      designee) a certificate for the number of shares of Common Stock for which
      the Option was exercised or, in the case of a cashless exercise, for any
      shares that were not sold in the cashless exercise. Notwithstanding the
      foregoing, the Company, in its sole discretion, may extend and maintain,
      or arrange for the extension and maintenance of credit to any Optionee to
      finance the Optionee's purchase of shares pursuant to the exercise of any
      Stock Option, on such terms as may be approved by the Plan Administrator,
      subject to applicable regulations of the Federal Reserve Board and any
      other laws or regulations in effect at the time such credit is
      extended.

            

    

    

    
      	
              (4)  

            	
              Terms
      of Option. No Option shall be exercisable after the expiration of the
      earliest of: (a) ten years after the date the Option is granted, (b) three
      months after the date the Optionee's employment with the Company and its
      subsidiaries terminates, or a Non-Employee Director or Consultant ceases
      to provide services to the Company, if such termination or cessation is
      for any reason other than Disability or death, (c) one year after the date
      the Optionee's employment with the Company, and its subsidiaries,
      terminates, 

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    or a
Non­-Employee Director or Consultant ceases to provide services to the
Company, if such termination or cessation is a result of death or Disability;
provided, however, that the Option agreement for any Option may provide for
shorter periods in each of the foregoing instances. In the case of an Incentive
Stock Option granted to an employee who owns stock possessing more than 10% of
the total combined voting power of all classes of stock of the Company, or any
of its parent or subsidiary corporations, the term set forth in (a) above shall
not be more than five years after the date the Option is granted.

     

    
      	
              (5)  

            	
              Exercise
      of an Option. No Option shall be exercisable during the lifetime of an
      Optionee by any person other than the Optionee. Subject to the foregoing,
      the Plan Administrator shall have the power to set the time or times
      within which each Option shall vest or be exercisable and to accelerate
      the time or times of vesting and exercise; provided, however each Option
      shall provide the right to exercise at the rate of at least 20% per year
      over five years from the date the Option is granted.  Unless
      otherwise provided by the Plan Administrator, each Option will not be
      subject to any vesting requirements. To the extent that an Optionee has
      the right to exercise an Option and purchase shares pursuant hereto, the
      Option may be exercised from time to time by written notice to the
      Company, stating the number of shares being purchased and accompanied by
      payment in full of the exercise price for such
  shares.

            

    

    

    
      	
              (6)  

            	
              No
      Transfer of Option. No Option shall be transferable by an Optionee
      otherwise than by will or the laws of descent and
      distribution.

            

    

    

    
      	
              (7)  

            	
              Limit
      on Incentive Stock Option. The aggregate Fair Market Value (determined at
      the time the Option is granted) of the stock with respect to which an
      Incentive Stock Option is granted and exercisable for the first time by an
      Optionee during any calendar year (under all Incentive Stock Option plans
      of the Company and its subsidiaries) shall not exceed
      $100,000.  To the extent the aggregate Fair Market Value
      (determined at the time the Stock Option is granted) of the Common Stock
      with respect to which Incentive Stock Options are exercisable for the
      first time by an Optionee during any calendar year (under all Incentive
      Stock Option plans of the Company and any parent or subsidiary
      corporations) exceeds $100,000, such Stock Options shall be treated as
      Non­-Qualified Stock Options.  The determination of which
      Stock Options shall be treated as Non-­Qualified Stock Options shall
      be made by taking Stock Options into account in the Order in which they
      were granted.

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      	
              (8)  

            	
              Restriction
      on Issuance of Shares.  The issuance of Options and shares shall
      be subject to compliance with all of the applicable requirements of law
      with respect to the issuance and sale of securities, including, without
      limitation, any required qualification under state securities
      laws.  If an Optionee acquires shares of Common Stock pursuant
      to the exercise of an Option, the Plan Administrator, in its sole
      discretion, may require as a condition of issuance of shares covered by
      the Option that the shares of Common Stock be subject to restrictions on
      transfer. The Company may place a legend on the share certificates
      reflecting the fact that they are subject to restrictions on transfer
      pursuant to the terms of this Section.  In addition, the
      Optionee may be required to execute a buy-sell agreement in favor of the
      Company or its designee with respect to all or any of the shares so
      acquired. In such event, the terms of any such agreement shall apply to
      the optioned shares.

            

    

    

    
      	
              (9)  

            	
              Investment
      Representation. Any Optionee may be required, as a condition of issuance
      of shares covered by his or her Option, to represent that the shares to be
      acquired pursuant to exercise will be acquired for investment and without
      a view toward distribution thereof, and in such case, the Company may
      place a legend on the share certificate(s) evidencing the fact that they
      were acquired for investment and cannot be sold or transferred unless
      registered under the Securities Act of 1933, as amended, or unless counsel
      for the Company is satisfied that the circumstances of the proposed
      transfer do not require such
registration.

            

    

    

    
      	
              (10)  

            	
              Rights
      as a Shareholder or Employee.  An Optionee or transferee of an
      Option shall have no right as a stockholder of the Company with respect to
      any shares covered by any Option until the date of the issuance of a share
      certificate for such shares.  No adjustment shall be made for
      dividends (Ordinary or extraordinary, whether cash, securities, or other
      property), or distributions or other rights for which the record date is
      prior to the date such share certificate is issued, except as provided in
      paragraph (13) below. Nothing in the Plan or in any Option agreement shall
      confer upon any employee any right to continue in the employ of the
      Company or any of its subsidiaries or interfere in any way with any right
      of the Company or any subsidiary to terminate the Optionee's employment at
      any time.

            

    

    

    
      	
              (11)  

            	
              No
      Fractional Shares. In no event shall the Company be required to issue
      fractional shares upon the exercise of an
  Option.

            

    

    

    
      	
              (12)  

            	
              Exercise
      in the Event of Death. In the event of the death of the Optionee, any
      Option or unexercised portion thereof granted to the Optionee, to the
      extent exercisable by him or her on the date of death, may be exercised by
      the Optionee's personal representatives, heirs, or legatees subject to the
      provisions of paragraph (4) above.

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      	
              (13)  

            	
              Recapitalization
      or Reorganization of the Company.  Except as otherwise provided
      herein, appropriate and proportionate adjustments shall be made (1) in the
      number and class of shares subject to the Plan, (2) to the Option rights
      granted under the Plan, and (3) in the exercise price of such Option
      rights, in the event that the number of shares of Common Stock of the
      Company are increased or decreased as a result of a stock dividend (but
      only on Common Stock), stock split, reverse stock split, recapitalization,
      reorganization, merger, consolidation, separation, or like change in the
      corporate or capital structure of the Company. In the event there shall be
      any other change in the number or kind of the outstanding shares of Common
      Stock of the Company, or any stock or other securities into which such
      common stock shall have been changed, or for which it shall have been
      exchanged, whether by reason of a complete liquidation of the Company or a
      merger, reorganization, or consolidation with any other corporation in
      which the Company is not the surviving corporation, or the Company becomes
      a wholly-owned subsidiary of another corporation, then if the Plan
      Administrator shall, in its sole discretion, determine that such change
      equitably requires an adjustment to shares of Common Stock currently
      subject to Options under the Plan, or to prices or terms of outstanding
      Options, such adjustment shall be made in accordance with such
      determination.

            

    

    

    To the
extent that the foregoing adjustments relate to stock or securities of the
Company, such adjustment shall be made by the Plan Administrator, the
determination of which in that respect shall be final, binding, and conclusive.
No right to purchase fractional shares shall result from any adjustment of
Options pursuant to this Section. In case of any such adjustment, the shares
subject to the Option shall he rounded down to the nearest whole share. Notice
of any adjustment shall be given by the Company to each Optionee whose Options
shall have been so adjusted and such adjustment (whether or not notice is given)
shall be effective and binding for all purposes of the Plan.

    

    In the
event of a complete liquidation of the Company or a merger, reorganization, or
consolidation of the Company with any other corporation in which the Company is
not the surviving corporation, or the Company becomes a wholly-owned subsidiary
of another corporation, any unexercised Options granted under the Plan shall be
deemed cancelled unless the surviving corporation in any such merger,
reorganization, or consolidation elects to assume the Options under the Plan or
to issue substitute Options in place thereof; provided, however, that
notwithstanding the foregoing, if such Options would be cancelled in accordance
with the foregoing, the Optionee shall have the right exercisable during a
ten-day period ending on the fifth day prior to such liquidation, merger, or
consolidation to exercise such Option in whole or in part without regard to any
installment exercise provisions in the Option agreement.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    
      	
              (14)  

            	
              Modification,
      Extension and Renewal of Options.  Subject to the terms and
      conditions and within the limitations of the Plan, the Plan Administrator
      may modify, extend or renew outstanding options granted under the Plan and
      accept the surrender of outstanding Options (to the extent not theretofore
      exercised).  The Plan Administrator shall not, however, without
      the approval of the Board, modify any outstanding Incentive Stock Option
      in any manner that would cause the Option not to qualify as an Incentive
      Stock Option within the meaning of Section 422 of the Code.
      Notwithstanding the foregoing, no modification of an Option shall, without
      the consent of the Optionee, alter or impair any rights of the Optionee
      under the Option.

            

    

     

    
      
        	
                (15)  

              	
                Other
      Provisions. Each Option may contain such other terms, provisions, and
      conditions not inconsistent with the Plan as may be determined by the Plan
      Administrator.

              

      

       

    

    
      	
              8.  

            	
              TERMINATION
      OR AMENDMENT OF THE PLAN

            

    

    

    The Board
may at any time terminate or amend the Plan; provided that, without approval of
the holders of a majority of the shares of Common Stock of the Company
represented and voting at a duly held meeting at which a quorum is present or
the written consent of a majority of the outstanding shares of Common Stock,
there shall be (except by operation of the provisions of sections (6) or (7)(13)
above) no increase in the total number of shares covered by the Plan, no change
in the class of persons eligible to receive options granted under the Plan, no
reduction in the limits for determination of the minimum exercise price of
Options granted under the Plan, and no extension of the limits for determination
of the latest date upon which Options may be exercised; and provided further
that, without the consent of the Optionee, no amendment may adversely affect any
then outstanding Option or any unexercised portion thereof.

    

    
      	
              9.  

            	
              INDEMNIFICATION

            

    

    

    In
addition to such other rights of indemnification as they may have as members of
the Board Committee that administers the Plan, the members of the Plan
Administrator shall be indemnified by the Company against reasonable expense,
including attorney's fees, actually and necessarily incurred in connection with
the defense of any action, suit or proceeding, or in connection with any appeal
therein to which they, or any of them, may be a party by reason of any action
taken or failure to act under or in connection with the Plan or any Option
granted thereunder, and against any and all amounts paid by them in settlement
thereof (provided such settlement is approved by independent legal counsel
selected by the Company).  In addition, such members shall be
indemnified by the Company for any amount paid by them in satisfaction of a
judgment in any action, suit, or proceeding, except in relation to matters as to
which it shall have been adjudged that such member is liable for negligence or
misconduct in the performance of his or her duties, provided however that within
sixty (60) days after institution of any such action, suit, or proceeding, the
member shall in writing offer the Company the opportunity, at its own expense,
to handle and defend the same.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    
      	
              10.  

            	
              EFFECTIVE
      DATE AND TERM OF THE PLAN

            

    

    

    This Plan
shall become effective on the date of adoption by the Company’s Board of
Directors. Unless sooner terminated by the Board in its sole discretion, this
Plan will expire five calendar years from the date of its adoption.

    

    
      	
              11.  

            	
              MISCELLANEOUS

            

    

    

    Any
dispute arising out of this Plan or any provision hereof, or of any agreement
issued or executed under the Plan shall be resolved by the Plan Administrator,
and the decision of the Plan Administrator shall be final and binding upon all
parties.

    

    IN WITNESS WHEREOF, the
Company by its duly authorized officer, has caused this Plan to be executed as
of the 18th day of October, 2007.

     

    Ivany
Mining Inc.

     

    
      	 	/s/Derek Ivany
	
              By:

            	
              Derek
      Ivany

            

    

    
      	
              Its:

            	
              President
      and CEO

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