Document:

Exhibit
10.56

 

OPTION AGREEMENT UNDER THE 

FIRST WIND HOLDINGS INC. 2010 LONG TERM INCENTIVE PLAN

 

OPTION
AGREEMENT (this “Agreement”) granted effective as of [·], 2010, by First Wind Holdings Inc., a corporation
organized under the laws of the State of Delaware (the “Company”), to                                             (the
“Grantee”), who has been designated as a participant under and in
accordance with the terms of the First Wind Holdings Inc. 2010 Long Term
Incentive Plan (such plan, as it may be amended from time to time, to be
referenced as the “Plan”).

 

W I T N E S S E T H:

 

WHEREAS,
the Company has adopted the Plan, which provides for the grant of stock options
in respect of shares of the Company’s Stock (as later defined) to those
individuals selected by the Committee;

 

WHEREAS,
the Committee has determined that the Grantee is eligible under the Plan and
that it is to the advantage and interest of the Company to grant the stock
options provided for herein to the Grantee as an incentive for Grantee to
remain in the service of the Company or one of its Subsidiaries or Affiliates,
and to provide Grantee an incentive to increase the value of the Class A
Common Stock, $0.001 par value per share, of the Company (the “Stock”).

 

NOW,
THEREFORE:

 

SECTION 1.                                Stock
Option Grant.

 

The
Company hereby grants to the Grantee effective as of the date of this Agreement
stock options to purchase [·] shares of
Stock (the “Options”), subject to the terms and conditions hereinafter
set forth.  The option price of each such
Option is $[·] per share
(which is the Fair Market Value of the Stock on the date hereof) (the “Option
Price”).  The Options shall vest and
become exercisable [in            
equal installments on each of the first through            
anniversaries of the Grant Date]; provided that in no event shall the
Options be exercisable in whole or in part ten (10) years from the date
hereof (the “Option Term”).  Once
vested in accordance with the provisions of this Agreement, the Options may be
exercised, in whole or in part, at any time and from time to time prior to the
date such Options terminate.  The Options
are not intended to be incentive stock options under the Code.

 

 

SECTION 2.                                Options
Subject to Plan.

 

The
Options shall be subject to all the terms and provisions of the Plan and the
Grantee shall abide by and be bound by all rules, regulations and
determinations of the Committee now or hereafter made in connection with the
administration of the Plan.  If there is
any inconsistency between this Agreement and the terms of the Plan, the terms
of the Plan shall govern.  Capitalized
terms not otherwise defined herein shall have the meanings set forth for such
terms in the Plan.

 

SECTION 3.                                Exercise.

 

Subject
to the provisions of Section 4, vested Options may be exercised in whole
or in part at any time during the Option Term, by giving written notice of
exercise to the Company specifying the number of shares of Stock as to which
the Option is being exercised.  Without limiting
the generality of the foregoing, payment of the Option Price with respect any
portion of any Option being exercised may be made: (i) in cash or
its equivalent; (ii) by exchanging shares of Stock owned by the
Grantee (which are not the subject of any pledge or other security interest); (iii) through
an arrangement with a broker approved by the Company whereby payment of the
exercise price is accomplished with the proceeds of the sale of Stock; or (iv) by
any combination of the foregoing, provided that the combined value of all cash
and cash equivalents paid and the Fair Market Value of any such Stock so
tendered to the Company, valued as of the time of such tender, is at least
equal to such Option Price multiplied by the number of shares of Stock for
which the Option is being exercised.  In
addition, the Committee may permit any Option to be exercised without payment
of the purchase price, in which case the Company’s sole obligation shall be to
issue to the Grantee the same number of shares of Stock as would have been
issued had such Option been Stock Appreciation Rights in respect of an
identical number of shares of Stock.  A
Grantee shall not have any rights to dividends or other rights of a shareholder
with respect to shares subject to the Option until the Grantee has exercised
such Option by paying for the shares being exercised (or the Company has
elected to net settle such Option) in accordance with this Section 3.

 

SECTION 4.                                Termination
of Options.

 

The
Options shall immediately terminate and may no longer be exercised if (i) the
Grantee ceases to provide services to the Company or one of its Subsidiaries;
or (ii) the Grantee becomes an employee of an entity that does not
qualify as a Subsidiary under the Plan; or (iii) the Grantee takes
a leave of absence without reinstatement rights, unless otherwise agreed in
writing between the Company or one of its Subsidiaries and the Grantee; except
that

 

(a)                                  If the Grantee’s
service with the Company (or any Subsidiary) terminates by reason of death, the
vesting of the Options shall be accelerated and the Options shall 

 

2

 

remain
exercisable until (i) the eighteenth (18th) month anniversary of the Participant’s death or (ii) the
expiration of the Option Term, whichever is earlier;

 

(b)                                 If the Grantee’s
service with the Company (or any Subsidiary) terminates by reason of
Disability, the Options shall continue to vest in accordance with their terms
and any vested Options may be exercised, in each case, until (i) the
eighteenth (18th) month
anniversary of the Participant’s termination of service or (ii) the
expiration of the Option Term, whichever is earlier; provided, however,
that if the Grantee dies after such termination due to Disability and during
the period specified in this Section 4(b), the vesting of the Options
shall be accelerated and the Options shall remain exercisable until the later
of (x) the date otherwise determined under this Section 4(b) or
(y) the first anniversary of the date of the Grantee’s death;

 

(c)                                  If the Grantee’s
service with the Company (or any Subsidiary) terminates by reason of Normal or
Early Retirement, the Options shall continue to vest in accordance with their
terms and any vested Options may be exercised, in each case, until (i) eighteen
(18) moths following the Participant’s termination of service or (ii) the
expiration of the Option Term, whichever is earlier; provided, however,
that in the event the Grantee’s service terminates by reason of Early or Normal
Retirement during the period specified in this Section 4(c) and the
Grantee violates his obligations under Section 7(a) hereof, the
Company reserves the right, upon notice to the Grantee, to declare that the
Options shall be forfeited and of no further validity; and provided, further,
that if the Grantee dies after Retirement and during the period specified in
this Section 4(c), the vesting of the Options shall be accelerated and
Options shall remain exercisable until the later of (x) the date
otherwise determined under this Section 4(c) or (y) the
first anniversary of the date of the Grantee’s death;

 

(d)                                 If the Grantee’s
service with the Company and each Subsidiary to which Grantee provides services
is involuntarily terminated by the Company and each such Subsidiary without
Cause, any unvested Options shall thereupon terminate and any vested Options
may thereafter be exercised, to the extent they were exercisable at the time of
termination, (i) for a period of ninety (90) days from the date of such
termination of service or (ii) until the expiration of the Option Term,
whichever period is shorter; and

 

(e)                                  In the event of
a Change in Control of the Company, the Options shall become exercisable in
accordance with the Plan.

 

SECTION 5.                                Adjustments
in Common Stock.

 

In
the event of a merger, reorganization, consolidation, recapitalization, stock
dividend, stock split, extraordinary cash dividend, other change in corporate
structure affecting the Stock, or other event or transaction of a similar
nature that results in a material change in the value of the Stock, appropriate
adjustments may be made by the 

 

3

 

Committee
in the number of shares, class or classes of securities and the Option Price
applicable in respect to the Options subject to this Agreement.

 

SECTION 6.                                Non-Transferability
of Options.

 

Unless
the Committee shall permit (on such terms and conditions as it shall
establish), the Options may not be transferred except by will or the laws of
descent and distribution to the extent provided herein.  During the lifetime of the Grantee the
Options may be exercised only by him or her (unless otherwise determined by the
Committee).

 

SECTION 7.                                Restrictive
Covenants; Release.

 

(a)                                  Covenant
Not to Compete.  In consideration of the receipt of the
Options granted pursuant to this Agreement and of the Grantee’s privilege to
participate in the Plan, the Grantee hereby agrees that while the Grantee is
providing services to the Company or any Subsidiary and for a period of two
years after the last date of the Grantee’s service for any of the Company or
any of its Subsidiaries, the Grantee shall not compete with the wind energy
development, ownership and operation engaged in or expected to be engaged in by
the Company or any of its Subsidiaries (the “Business”), as such
Business exists at any time during the term of the Agreement, within the United
States of America (including its territories and possessions), Canada or Mexico
(the “Territories”), either directly or indirectly, whether

 

(i)                                     by conducting
or supporting a business or enterprise in the Business, whether in a
managerial, operational, financial or other manner;

 

(ii)                                  by directly or
indirectly participating in another business or enterprise in the Business;

 

(iii)                               by employment,
consultancy, serving on a board of directors or similar governing body, or any
other technical, commercial or other activity with another business or
enterprise in the Business (other than teaching or serving in an advisory,
regulatory, or legislative entity or a trade association);

 

(iv)                              by inducing any
utility, any governmental authority or any customer, supplier, licensee,
licensor, co-developer, contractor or other business relation of or with the
Company or any of its Subsidiaries to cease doing business with the Company or
any such Subsidiary, or in any way interfere with the relationship between any
such utility, governmental authority, customer, supplier, licensee, licensor,
co-developer, contractor or other business relation and the Company or any such
Subsidiary;

 

(v)                                 by soliciting
or hiring employees of the Company or any such Subsidiary for another business;
and

 

4

 

(vi)                              by challenging
any of the intellectual property rights or the know-how that is material for
the Business of the Company but not protected by registered intellectual
property rights or applications therefor;

 

provided, however, that the covenant in this Section 7(a) shall
not apply to (x) activities engaged in as a manager, officer,
director, employee, contractor, consultant, or direct or indirect equity owner
of the Company or any of its Subsidiaries (to the extent that such activities
are conducted for the benefit of the Company or any of its Subsidiaries) and
may be waived at any time by the Company for specific activities, but any such
waiver shall be restricted to the specific activity to which it expressly
relates and only for the duration of the relevant contract; or (y) the
passive holding of shares in companies listed on a stock exchange, provided
that such holding does not exceed one (1) percent of the aggregate issued
and outstanding shares of the relevant company.

 

(b)                                 Confidentiality.  The Grantee agrees that during, and at any
time after, the period during which the Grantee is providing services to the
Company or any of its Subsidiaries the Grantee shall keep in confidence and
trust all Confidential Information, and shall not use or disclose any such
Confidential Information without the prior written consent of the Company,
except as may be necessary in the ordinary course of performing the Grantee’s
duties to the Company or any of its Subsidiaries.

 

As used in this Agreement, “Confidential
Information” means non-public information belonging to the Company,
including, without limitation, financial information, reports, wind data and
energy production forecasts; inventions, improvements and other intellectual
property; trade secrets; know-how; designs, processes or formulae; software;
market or sales information or plans; customer lists; and business plans,
prospects and opportunities, in each case, whether such information is
developed by the Grantee in the course of the Grantee’s service with the
Company or any of its Subsidiaries or the Grantee had access to such
information as a result of the Grantee’s service with the Company or any of its
Subsidiaries.  Notwithstanding the
foregoing, Confidential Information shall not include information (i) in
the public domain, unless due to breach of the Grantee’s duties under this Section 7(b),
(ii) obtained by the Grantee from a third party prior to, or after
the termination of, the Grantee’s service with the Company and each of its
Subsidiaries, (iii) independently developed by the Grantee prior
to, or after the termination of, the Grantee’s service with the Company and
each of its Subsidiaries, or (iv) required to be disclosed by the
Grantee by legal or regulatory process.

 

(c)                                  Property.  The Grantee agrees that all documents,
records, data, apparatus, equipment and other physical property, whether or not
pertaining to Confidential Information, which are furnished to the Grantee by
the Company or any of its Subsidiaries or are produced by the Grantee in
connection with the Grantee’s service with the Company or any of its
Subsidiaries, shall be and remain the sole property of the Company.  The Grantee shall return to the Company all
such materials and property as 

 

5

 

and
when requested by the Company.  In any
event, the Grantee shall return all such materials and property immediately upon
termination of the Grantee’s service for any reason.  The Grantee shall not retain with the Grantee
any such material or property or any copies thereof after such
termination.  Notwithstanding the
foregoing, the Grantee shall have access to such documents and records at
reasonable times and upon reasonable notice to the Company, in the event of a
dispute between the Company and the Grantee to which such documents and records
are reasonably related.

 

(d)                                 Business
Time.  The Grantee
shall devote 100% of the Grantee’s business time to the business and affairs of
the Company.

 

(e)                                  Potential
Unenforceability of Section 7(a) and Section 7(b).  Although the Grantee and the Company consider
the restrictions contained in Section 7(a) and Section 7(b) to
be reasonable, if a final, non-appealable judicial determination is made by a
court of competent jurisdiction that the time or territory or any other
restriction contained in Section 7(a) or Section 7(b) is an
unenforceable restriction against the Grantee, neither this Agreement nor the
provisions of Section 7(a) and Section 7(b) shall be
rendered void, but shall be deemed amended as to such restriction as such court
may judicially determine or indicate to be reasonable or, if such court does
not so determine or indicate, to the maximum extent that any pertinent statute
or judicial decision may indicate to be a reasonable restriction under the
circumstances.

 

(f)                                    Specific
Performance.  Recognizing
that irreparable damage shall result to the Company in the event of a breach or
threatened breach by the Grantee of any of the covenants and assurances
contained in this Section 7, and that the Company’s remedies at law for
any such breach or threatened breach shall be inadequate, the Company and its
successors and permitted assigns, in addition to such other remedies that may
be available to them, are entitled to, and the Grantee agrees not to oppose the
propriety of the Company’s request for, an injunction (as distinct from
remedies at law), including a mandatory injunction, to be issued by any court
of competent jurisdiction ordering compliance with this Agreement or enjoining
and restraining the Grantee, and each and every person or entity acting in
concert or participation with the Grantee, from the continuation of such breach.  For the purpose of clarity, the Grantee may
oppose on the merits the Company’s request for such an injunction.  The covenants and obligations of the Grantee
set forth in this Section 7 are in addition to and not in lieu of or
exclusive of any other obligations and duties of the Grantee to the Company,
whether express or implied in fact or in law.

 

(g)                                 Prior
Covenants.  The
covenants set forth in this Section 7 shall supersede and replace any
covenants related to the same subject matter contained in any agreement entered
into prior to the date hereof between the Grantee and the Company (or any
predecessor in interest to the Company) in connection with the grant to the
Grantee of Series B Units in First Wind Holdings LLC.

 

6

 

SECTION 8.                                Miscellaneous.

 

(a)                                  General.  The Options (i) shall be binding
upon and inure to the benefit of any successor of the Company, (ii) shall
be governed by the laws of the State of Delaware, and any applicable laws of
the United States, and (iii) may not be amended without the written
consent of both the Company and the Grantee. 
Notwithstanding the foregoing, this Agreement may be amended from time
to time without the written consent of the Grantee as permitted by the Plan (or
its successor).  No contract or right of
employment or other right to provide services to or for the Company or any of
its Subsidiaries shall be implied by the Options.

 

(b)                                 Entire
Agreement.  This
Agreement, together with the Plan, constitutes the entire agreement with
respect to the Options granted hereunder.

 

(c)                                  Corporate
Reorganization.  If the
Options are assumed or new options are substituted therefor in any corporate
reorganization (including, but not limited to, any transaction of the type
referred to in Section 424(a) of the Internal Revenue Code of 1986,
as amended), service with such assuming or substituting Company or by a parent
Company or a subsidiary thereof shall be considered for all purposes of these
Options to be service with the Company.

 

(d)                                 Withholding.  The Company may require the Grantee to remit
to the Company an amount in cash sufficient to satisfy any applicable U.S.
federal, state and local and non-U.S. tax withholding or other similar charges
or fees that may arise in connection with the grant, vesting, exercise or
purchase of the Options.

 

(e)                                  Section and
Other Headings, etc.  The section and other headings contained in
this Agreement are for reference purposes only and shall not affect the meaning
or interpretation of this Agreement.

 

(f)                                    Counterparts.  This Agreement may be executed in any number
of counterparts, each of which shall be deemed to be an original and all of
which together shall constitute one and the same instrument.

 

SECTION 9.                                Securities
Law Requirements.

 

The
Company shall not be required to issue shares of Stock upon the exercise of the
Options unless and until (a) such shares have been duly listed upon
each stock exchange on which the Company’s Stock is then registered and (b) a
registration statement under the Securities Act of 1933 with respect to such
shares is then effective.  The Committee
may require the Grantee to furnish to the Company, prior to the issuance of any
shares of Stock in connection with the exercise of the Options, an agreement,
in such form as the Committee may from time to time deem appropriate, in which
the 

 

7

 

Grantee
represents that the shares acquired by him upon such exercise are being
acquired for investment and not with a view to the sale or distribution
thereof.

 

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

 

 

	
   

  	
   

  	
  FIRST
  WIND HOLDINGS INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Grantee

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

8Canyon Copper Corp.: Exhibit 10.1 - Filed by newsfilecorp.com

LOAN AGREEMENT 

THIS AGREEMENT is dated for reference as of the 7th day
of October, 2010. 

	BETWEEN: 	
	 	CANYON COPPER
      CORP., of 
	 	1199 West Pender Street, Suite
      408 
	 	Vancouver, BC, Canada V6E 2R1
  
	 	  
	 	(the "Borrower") 
	 	OF THE FIRST PART 
	AND:	 
	 	ANTHONY HARVEY, of
    
	 	3024 Procter Avenue 
	 	West Vancouver, BC, Canada V7V
      1G1 
	 	  
	 	(the "Lender") 
	 	OF THE SECOND PART 
	 	  
	 	WHEREAS:

A.               
The Borrower has requested that the Lender lend $50,000 (USD) to the Borrower;
and 

B.              
 The Lender has agreed to lend such sum to the Borrower subject to the
terms and upon the conditions hereinafter set forth. 

NOW THEREFORE THIS AGREEMENT WITNESSES THAT in
consideration of the sum of $10.00 paid by each party to the other (the receipt
of which is hereby acknowledged), and other good and valuable consideration, the
parties hereto mutually covenant and agree as follows: 

1.              
 INTERPRETATION 

1.1              Definitions.
Where used herein or in any amendment hereto each of the following words and
phrases shall have the meanings set forth as follows: 

	 	(a) 	
      "Agreement" means this Loan Agreement including the
      Schedules hereto together with any amendments hereof;

	 	 	 
	 	(b) 	
      "Closing Date" means October 7, 2010;

	 	 	 
	 	(c) 	
      "Event of Default" means any event set forth in paragraph
      6.1;

	 	 	 
	 	(d) 	
      "Loan" means the loan of $50,000 (USD) to be made by the
      Lender to the Borrower in accordance with this Agreement;

	 	 	 
	 	(e) 	
      “Maturity” means April 1, 2012; and

	 	 	 
	 	(f) 	
      "Principal Sum" means the sum of $50,000
  (USD).

1.2             
Number and Gender. Wherever the singular or the masculine are used herein
the same shall be deemed to include the plural or the feminine or the body
politic or corporate where the context or the parties so require. 

1.3             
Headings. The headings to the articles, paragraphs, subparagraphs or
clauses of this Agreement are inserted for convenience only and shall not affect
the construction hereof. 

1.4             
References. Unless otherwise stated a reference herein to a numbered or
lettered article, paragraph, subparagraph or clause refers to the article,
paragraph, subparagraph or clause bearing that number or letter in this
Agreement. A reference to this Agreement or herein means this Loan Agreement,
including the Schedule hereto, together with any amendments thereof. 

2.              
 TERMS OF LOAN 

2.1             
Loan and Repayment. The Lender hereby agrees to lend to the Borrower the
Principal Sum of $50,000 (USD). The Loan shall be made in United States currency
and shall be repaid by the Borrower on or before April 1, 2012. 

2.2             
Interest. The Borrower shall pay on the amount of the Principal Sum,
interest at a rate of 15% per annum, payable annually, on Maturity. The Borrower
shall pay interest at the aforesaid rate on all overdue interest. 

2.3             
Advances. The Principal Sum shall be advanced by the lender on execution
of this Agreement, in the form of certified cheque, bank draft or wire transfer.

2.4             
Pre-Payment. The Borrower may pre-pay all or any portion of the loan at
any time. 

3.               
PROMISSORY NOTE, EXTENSIONS & WAIVER 

3.1             
Loan. To evidence the Loan, the Borrower agrees to enter into a
promissory note in the form attached hereto as Schedule “A”. 

3.2             
Extensions. The Lender may grant extensions as the Lender may see fit
without prejudice to the liability of the Borrower or to the Lender's rights
under this Agreement or under the Promissory Note. 

3.3              Waiver.
The Lender may waive any breach by the Borrower of this Agreement or of any
default by the Borrower in the observance or performance of any covenant or
condition required to be observed or performed by the Borrower hereunder or
under the Promissory Note. No failure or delay on the part of the Lender to
exercise any right, power or remedy given herein or by statute or at law or in
equity or otherwise shall operate as a waiver thereof, nor shall any single or
partial exercise of any right preclude any other exercise thereof or the
exercise of any other right, power or remedy, nor shall any waiver by the Lender
be deemed to be a waiver of any subsequent similar or other event. 

4.              
 REPRESENTATIONS AND WARRANTIES 

4.1             
Representations of the Borrower. The Borrower represents and warrants to
the Lender, and acknowledges that the Lender is relying upon such
representations and warranties in entering into this Agreement, as follows: 

	 	(a) 	
      the Borrower has the capacity to enter into this
      Agreement, and the execution of this Agreement and the completion of the
      transactions contemplated hereby shall not be in violation any agreement
      to which the Borrower is a party; and

	 	 	 
	 	(b) 	
      the Promissory Note has been duly executed by the
      Borrower and is enforceable against the Borrower in accordance with its
      terms.

5.               
CLOSING ARRANGEMENTS 

5.1             
Conditions Precedent. The Lender's obligation to advance the Principal
Sum to the Borrower shall be subject to the satisfaction of the following
conditions: 

	 	(a) 	
      the representations and warranties of the Borrower shall
      be true as of the date hereof and as of the Closing Date;
  and

2

	 	(b) 	
      the Borrower shall have complied with all of its
      obligations hereunder; and

The foregoing conditions precedent are inserted for the benefit
of the Lender and may be waived in whole or in part by the Lender at any time
prior to closing by delivering to the Borrower written notice to that effect.

5.2             
Time of Closing. The closing of the Loan shall take place on execution of
this Loan Agreement. 

5.3              Deliveries
by the Lender. On the Closing Date, the Lender shall deliver or cause to be
delivered to the Borrower a certified cheque, bank draft or solicitors' trust
cheque for the Principal Sum. 

6.               
EVENTS OF DEFAULT AND REMEDIES 

6.1             
Events of Default. Any one or more of the following events, whether or
not any such event shall be voluntary or involuntary or be effected by operation
of law or pursuant to or in compliance with any judgment, decree or order of any
court or any order, rule or regulation of any administrative or governmental
body, shall constitute an Event of Default: 

	 	(a) 	
      if the Borrower defaults in the payment of any monies due
      hereunder as and when the same is due;

	 	 	 
	 	(b) 	
      if the Borrower defaults in the observance or performance
      of any other provision hereof;

	 	 	 
	 	(c) 	
      if the Borrower commits an act of bankruptcy or makes a
      general assignment for the benefit of its creditors or otherwise
      acknowledges its insolvency; or

	 	 	 
	 	(d) 	
      if the Borrower makes default in the due payment,
      performance or observance, in whole or in part, of any debt, liability or
      obligation of the Borrower to the Lender, whether secured hereby or
      otherwise.

6.2 Remedies Upon Default. Upon the occurrence of any
Event of Default and at any time thereafter, provided that the Borrower has not
by then remedied such Event of Default, the Lender may, in its discretion, by
notice to the Borrower, declare this Agreement to be in default. At any time
thereafter, while the Borrower shall not have remedied such Event of Default,
the Lender, in its discretion, may: 

	 	(a) 	
      declare the Loan and other monies owing by the Borrower
      to the Lender to be immediately due and payable; and

	 	 	 
	 	(b) 	
      demand payment from the Borrower and exercise all
      remedies available to the Lender.

7.              
 MISCELLANEOUS 

7.1             
Notices. Any notice required or permitted to be given under this
Agreement or the Promissory Note shall be in writing and may be given by
delivering same or mailing same by registered mail or sending same by telegram,
telex, telecopier or other similar form of communication to the following
addresses: 

	 	The Borrower: 	1199 West Pender Street, Suite
      408 
	 	  	Vancouver, BC V6E 2R1 
	 	  	 
	 	The Lender: 	3024 Procter Avenue 
	 	  	West Vancouver, BC, Canada V7V
      1G1 

Any notice so given shall: 

3

	 	(a) 	
      if delivered, be deemed to have been given at the time of
      delivery;

	 	 	 
	 	(b) 	
      if mailed by registered mail, be deemed to have been
      given on the fourth business day after and excluding the day on which it
      was so mailed, but should there be, at the time of mailing or between the
      time of mailing and the deemed receipt of the notice, a mail strike,
      slowdown or other labour dispute which might affect the delivery of such
      notice by the mails, then such notice shall be only effective if actually
      delivered; and

	 	 	 
	 	(c) 	
      if sent by telegraph, telex, telecopier or other similar
      form of communication, be deemed to have been given or made on the first
      business day following the day on which it was
sent.

Any party may give written notice of a change of address in the
aforesaid manner, in which event such notice shall thereafter be given to such
party as above provided at such changed address. 

7.2              Amendments.
Neither this Agreement nor any provision hereof may be amended, waived,
discharged or terminated orally, but only by an instrument in writing signed by
the party against whom enforcement of the amendment, waiver, discharge or
termination is sought. 

7.3             
Entire Agreement. This Agreement embodies the entire agreement and
understanding between the parties hereto and supersedes all prior agreements and
undertakings, whether oral or written, pertaining to the subject matter hereof.

7.4             
Action on Business Day. If the date upon which any act or payment
hereunder is required to be done or made falls on a day which is not a business
day, then such act or payment shall be performed or made on the first business
day next following. 

7.5             
No Merger of Judgment. The taking of a judgment on any covenant contained
herein or on any covenant set forth in any other security for payment of any
indebtedness hereunder or performance of the obligations hereby secured shall
not operate as a merger of any such covenant or affect the Lender's right to
interest at the rate and times provided in this Agreement on any money owing to
the Lender under any covenant herein or therein set forth and such judgment
shall provide that interest thereon shall be calculated at the same rate and in
the same manner as herein provided until such judgment is fully paid and
satisfied. 

7.6             
Severability. If any one or more of the provisions of this Agreement
should be invalid, illegal or unenforceable in any respect in any jurisdiction,
the validity, legality or enforceability of such provision shall not in any way
be affected or impaired thereby in any other jurisdiction and the validity,
legality and enforceability of the remaining provisions contained herein shall
not in any way be affected or impaired thereby. 

7.7             
Successors and Assigns. This Agreement shall enure to the benefit of and
be binding upon all parties hereto and their respective heirs, personal
representatives, successors and assigns, as the case may be. 

7.8             
Governing Law. This Agreement shall be governed by and be construed in
accordance with the laws of the State of Nevada and the parties hereto agree to
submit to the jurisdiction of the courts of Nevada with respect to any legal
proceedings arising herefrom. 

7.9             
Independent Legal Advice. This Agreement has been prepared by O’Neill Law
Group PLLC acting solely on behalf of the Borrower and the Lender acknowledges
that it has been advised to obtain independent legal advice. 

7.10           
Time. Time is of the essence of this Agreement. 

7.11           
Headings. The headings of the paragraphs of this Agreement are inserted
for convenience only and do not define, limit, enlarge or alter the meanings of
any paragraph or clause herein. 

4

7.12           
Counterparts. This agreement may be executed in one or more
counter-parts, each of which so executed shall constitute an original and all of
which together shall constitute one and the same agreement. 

IN WITNESS WHEREOF the parties hereto have caused this
Agreement to be duly executed and delivered as of the day and year first written
above. 

	THE BORROWER: 	 	  
	 	 	 
	CANYON COPPER CORP. 	 	  
	by its authorized signatory: 	 	  
	 	 	 
	/s/ Kurt
      Bordian 	 	  
	KURT BORDIAN 	 	  
	 	 	 
	 	 	 
	THE LENDER: 	 	  
	 	 	 
	SIGNED, SEALED AND DELIVERED 	 	  
	BY ANTHONY HARVEY 	 	  
	in the presence of: 	 	  
	 	 	 
	/s/ Arlin
      McNeil 	 	/s/ Anthony Harvey 
	Signature 	 	ANTHONY HARVEY 
	 	 	 
	Arlin McNeil	 	  
	Name 	 	  
	 	 	 
	8738 143 A St. 	 	  
	Address 	 	  
	 	 	 
	Surrey, BC V3W
    3Y2	 	  

5

SCHEDULE “A” 

FORM OF PROMISSORY NOTE

	EXECUTED BY: 	CANYON COPPER CORP. 
	  	(the "Borrower") 
	 	 
	IN FAVOUR OF: 	ANTHONY R. HARVEY 
	  	(the "Lender") 
	 	 
	PRINCIPAL AMOUNT: 	$50,000 (USD) 
	 	 
	DATE OF EXECUTION: 	October 7, 2010 
	 	 
	PLACE OF EXECUTION: 	Vancouver, British Columbia
  

FOR VALUE RECEIVED the Borrower hereby promises to pay
to or to the order of the Lender on April 1, 2012, the principal sum of $50,000
(USD), together with interest thereon at the rate of 15% per annum, calculated
and compounded annually, both before and after maturity from the date hereof.

The Borrower waives presentment, demand, notice, protest and
notice of dishonour and all other demands and notices in connection with the
delivery, acceptance, performance, default or enforcement of this Promissory
Note. 

The Borrower agrees this Promissory Note may be negotiated,
assigned, discounted, or pledged by the Lender and in every case payment will be
made to the holder of this Promissory Note instead of the Lender upon notice
being given by the holder to the undersigned, and no holder of this Promissory
Note will be affected by the state of accounts between the undersigned and the
Lender or by any equities existing between the undersigned and the Lender and
will be deemed to be a holder in due course and for the value of the Promissory
Note held by him. 

DATED at Vancouver, British Columbia this 7th
day of October, 2010. 

CANYON COPPER CORP. 
by its authorized signatory:

 

________________________________ 
KURT BORDIAN 

6

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