Document:

EMC Metals Corp. - Exhibit 10.1 - Filed by newsfilecorp.com

 

(FORMERLY GOLDEN PREDATOR MINES INC.) 

STOCK OPTION PLAN 

March 4, 2008 
Amended April 10, 2008 

TABLE OF CONTENTS 

		 	PAGE 
		 	  
	ARTICLE I 	1 
	 	 	 
	DEFINITIONS AND INTERPRETATION 	1 
	 	 	 
	1.1	Definitions 	1 
	1.2	Choice of Law 	3 
	1.3	Headings 	3 
	 	 	 
	ARTICLE II 	3 
	 	 	 
	PURPOSE AND PARTICIPATION 	3 
	 	 	 
	2.1	Purpose 	3 
	2.2	Participation 	3 
	2.3	Notification of Award 	4 
	2.4	Copy of Plan 	4 
	2.5	Limitation 	4 
	 	 	 
	ARTICLE III 	4 
	 	 	 
	TERMS AND CONDITIONS OF OPTIONS 	4 
	 	 	 
	3.1	Board to Allot Shares 	4 
	3.2	Number of Shares 	4 
	3.3	Exercise Price 	4 
	3.4	Term of Option 	5 
	3.5	Termination of Option 	5 
	3.6	Vesting 	6 
	3.7	Effect of a Take-Over Bid 	6 
	3.8	Acceleration of Expiry Date 	7 
	3.9	Effect of a Change of Control 	7 
	3.10	Assignment of Options 	7 
	3.11	Adjustments 	7 
	 	 	 
	ARTICLE IV 	7 
	 	 	 
	EXERCISE OF OPTION 	7 
	 	 	 
	4.1	Exercise of Option 	7 
	4.2	Issue of Share Certificates 	8 
	4.3	Condition of Issue 	8 
	 	 	 
	ARTICLE V 	8 
	 	 	 
	STOCK APPRECIATION RIGHTS 	8 
	 	 	 
	5.1	Stock Appreciation Rights 	8 
	5.2	Stock Appreciation Rights Tied to Options 	8 
	5.3	Terms of Stock Appreciation Rights 	8 
	5.4	Exercise of Stock Appreciation Rights 	8 

- 2 – 

	ARTICLE VI 	9 
		 	 
	BONUSES 	9 
		 	 
	6.1	Grant of Bonus 	9 
	6.2	Number of Shares 	9 
		 	 
	ARTICLE VII 	9 
		 	 
	ADMINISTRATION 	9 
		 	 
	7.1	Administration 	9 
	7.2	Interpretation 	9 
		 	 
	ARTICLE VIII 	10 
		 	 
	AMENDMENT AND TERMINATION 	10 
		 	 
	8.1	Prospective Amendment 	10 
	8.2	Retrospective Amendment 	10 
	8.3	Termination 	10 
	8.4	Agreement 	10 
		 	 
	ARTICLE IX 	10 
		 	 
	APPROVALS REQUIRED FOR PLAN 	10 
		 	 
	9.1	Substantive Amendments to Plan 	10 

STOCK OPTION PLAN 

ARTICLE I 

DEFINITIONS AND INTERPRETATION 

1.1                   
Definitions 

As used herein, unless anything in the subject matter or
context is inconsistent therewith, the following terms shall have the meanings
set forth below: 

	 	(a) 	
      “Administrator” means, initially, the secretary of the
      Company and thereafter shall mean such director or other senior officer or
      employee of the Company as may be designated as Administrator by the Board
      from time to time;

	 	 	 	 
	 	(b) 	
      “affiliate” has the meaning ascribed thereto in the
      Securities Act (British Columbia);

	 	 	 	 
	 	(c) 	
      “associate” has the meaning ascribed thereto in the
      Securities Act (British Columbia);

	 	 	 	 
	 	(d) 	
      “Award Date” means the date on which the Board grants and
      announces a particular Option;

	 	 	 	 
	 	(e) 	
      “Board” means the board of directors of the
    Company;

	 	 	 	 
	 	(f) 	
      “Change of Control” means the acquisition by any person
      or by any person and a joint actor, whether directly or indirectly, of
      voting securities of the Company, which, when added to all other voting
      securities of the Company at the time held by such person or by such
      person and a joint actor, totals for the first time not less than fifty
      percent (50%) of the outstanding voting securities of the Company or the
      votes attached to those securities are sufficient, if exercised, to elect
      a majority of the board of Directors of the Company;

	 	 	 	 
	 	(g) 	
      “Company” means EMC Metals Corp. (formerly Golden
      Predator Mines Inc.);

	 	 	 	 
	 	(h) 	
      “Consultant” means an individual or Consultant Company,
      other than an Employee or a Director of the Company, that:

	 	 	 	 
	 		(i) 	
      is engaged to provide services to the Company or to an
      affiliate of the Company, other than services provided in relation to a
      distribution; and

	 	 	 	 
	 		(ii) 	
      spends or will spend a significant amount of time and
      attention on the affairs and business of the Company or an affiliate of
      the Company;

	 	 	 	 
	 	(i) 	
      “Consultant Company” means, for an individual consultant,
      a company which the individual consultant is an employee or
      shareholder;

	 	 	 	 
	 	(j) 	
      “Director” means any individual holding the office of
      director or officer of the Company or an affiliate of the
  Company;

	 	 	 	 
	 	(k) 	
      “Employee” means:

- 2 - 

	 	(i) 	
      an individual who is considered an employee of the
      Company or its subsidiary under the Income Tax Act (Canada) (i.e.
      for whom income tax, employment insurance and CPP deductions must be made
      at source);

	 	 	 
	 	(ii) 	
      an individual who works full-time for the Company or its
      subsidiary providing services normally provided by an employee and who is
      subject to the same control and direction by the Company over the details
      and methods of work, as an employee of the Company, but for whom income
      tax deductions are not made at source; or

	 	 	 
	 	(iii) 	
      an individual who works part-time for the Company or its
      subsidiary on a continuing and regular basis providing services normally
      provided by an employee and who is subject to the same control and
      direction by the Company over the details and methods of work as an
      employee of the Company, but for whom income tax deductions are not made
      at source;

	 	(l) 	
      “Exchange” means such exchange or quotation system on
      which the Shares may be listed or quoted for trading;

	 	 	 	 
	 	(m) 	
      “Exercise Notice” means the notice respecting the
      exercise of an Option, in the form set out as Schedule “B” hereto, duly
      executed by the Option Holder;

	 	 	 	 
	 	(n) 	
      “Exercise Period” means the period during which a
      particular Option may be exercised and is the period from and including
      the Award Date through to and including the Expiry Date, subject to the
      provisions of the Plan relating to the vesting of Options;

	 	 	 	 
	 	(o) 	
      “Exercise Price” means the price at which an Option may
      be exercised as determined in accordance with paragraph 3.3;

	 	 	 	 
	 	(p) 	
      “Expiry Date” means the date determined in accordance
      with paragraphs 3.4 and 3.8 and after which a particular Option cannot be
      exercised;

	 	 	 	 
	 	(q) 	
      “insider” has meaning ascribed thereto in the
      Securities Act (British Columbia);

	 	 	 	 
	 	(r) 	
      “Option” means an option to acquire Shares, awarded to a
      Director, Employee or Consultant pursuant to the Plan;

	 	 	 	 
	 	(s) 	
      “Option Certificate” means the certificate, substantially
      in the form set out as Schedule “A” hereto, evidencing an
Option;

	 	 	 	 
	 	(t) 	
      “Option Holder” means a Director, Employee or Consultant,
      or a former Director, Employee or Consultant, who holds an unexercised and
      unexpired Option or, where applicable, the Personal Representative of such
      person;

	 	 	 	 
	 	(u) 	
      “Plan” means this EMC Metals Corp. (Golden Predator Mines
      Inc.) stock option plan dated April 10, 2008;

	 	 	 	 
	 	(v) 	
      “Personal Representative” means:

	 	 	 	 
	 		(i) 	
      in the case of a deceased Option Holder, the executor (or
      the administrator of the deceased duly appointed by a court or public
      authority having jurisdiction to do so); and

- 3 - 

	 	(ii) 	
      in the case of an Option Holder who for any reason is
      unable to manage his or her affairs, the person entitled by law to act on
      behalf of such Option Holder;

	 	(w) 	
      “Securities Act” means the Securities Act,
      R.S.B.C. 1996, c.418, as amended, as at the date hereof; and

	 	 	 
	 	(x) 	
      “Share” or “Shares” means, as the case may be, one or
      more common shares without par value in the capital of the
  Company.

1.2                    Choice
of Law 

The Plan is established under and the provisions of the Plan
shall be interpreted and construed in accordance with the laws of the Province
of British Columbia. 

1.3                    Headings

The headings used herein are for convenience only and are not
to affect the interpretation of the Plan. 

ARTICLE II 

PURPOSE AND PARTICIPATION 

2.1                   
Purpose 

The purpose of the Plan is to provide the Company with a
share-related mechanism to attract, retain and motivate qualified Directors,
Employees and Consultants, to reward such of those Directors, Employees and
Consultants as may be awarded Options under the Plan by the Board from time to
time for their contributions toward the long term goals of the Company and to
enable and encourage such Directors, Employees and Consultants to acquire Shares
as long term investments. 

2.2                   
Participation 

The Board shall, from time to time, in its sole discretion
determine those Directors, Employees and Consultants, if any, to whom Options
are to be awarded. If the Board elects to award an Option to a Director, the
Board shall, in its sole discretion but subject to paragraph 3.2, determine the
number of Shares to be acquired on the exercise of such Option. If the Board
elects to award an Option to an Employee or Consultant, the number of Shares to
be acquired on the exercise of such Option shall be determined by the Board in
its sole discretion, and in so doing the Board may take into account the
following criteria: 

	 	(a) 	
      the remuneration paid to the Employee or Consultant as at
      the Award Date in relation to the total remuneration payable by the
      Company to all of its Employees and Consultants as at the Award
    Date;

	 	 	 
	 	(b) 	
      the length of time that the Employee or Consultant has
      been employed or engaged by the Company; and

	 	 	 
	 	(c) 	
      the quality of work performed by the Employee or
      Consultant.

- 4 - 

2.3                    Notification
of Award 

Following the approval by the Board of the awarding of an
Option, the Administrator shall notify the Option Holder of the award and may
provide the Option Holder with an Option Certificate representing the Option so
awarded. 

2.4                    Copy
of Plan 

Each Option Holder, concurrently with the notice of the award
of the Option, shall be provided with a copy of the Plan, unless a copy has been
previously provided to the Option Holder. A copy of any amendment to the Plan
shall be promptly provided by the Administrator to each Option Holder. 

2.5                   
Limitation 

The Plan does not give any Option Holder that is a Director the
right to serve or continue to serve as a Director of the Company nor does it
give any Option Holder that is an Employee or Consultant the right to be or to
continue to be employed or engaged by the Company. 

ARTICLE III 

TERMS AND CONDITIONS OF OPTIONS 

3.1                   Board
to Allot Shares 

The Shares to be issued to Option Holders upon the exercise of
Options shall be allotted and authorized for issuance by the Board prior to the
exercise thereof. 

3.2                   
Number of Shares 

The maximum number of Shares issuable under the Plan shall not
exceed 15% of the Shares outstanding from time to time. Additionally, if at any
time the Company is subject to restrictions on stock option grants prescribed by
applicable securities laws or by an Exchange, the Company shall not grant
Options which exceed such restrictions. Further, in no case shall: 

	 	(b) 	
      the aggregate number of options awarded within any
      one-year period to insiders under the Plan or any previously established
      and outstanding stock option plans or grants, exceed 10% of the issued
      Shares of the Company (calculated at the time of award); or

	 	 	 
	 	(c) 	
      the aggregate number of Shares reserved at any time for
      issuance to insiders upon the exercise of Options awarded under the Plan
      or any previously established and outstanding stock option plans or
      grants, exceed 10% of the issued Shares of the Company (calculated at the
      time of award).

If any Option is exercised or expires or otherwise terminates
for any reason, the number of Shares in respect of which the Option is exercised
or expired or terminated shall again be available for the purposes of the Plan.

3.3                   
Exercise Price 

The Exercise Price shall be that price per share, as determined
by the Board in its sole discretion as of the Award Date, at which an Option
Holder may purchase a Share upon the exercise of an Option, and shall not be
less than: 

- 5 - 

	 	(a) 	
      if the Company’s Shares are not listed for trading on an
      Exchange at the Award Date, the last price at which the Company’s Shares
      were issued prior to the Award Date; or

	 	 	 
	 	(b) 	
      if the Company’s Shares are listed for trading on an
      Exchange at the Award Date, the closing price of the Company’s Shares on
      the day immediately preceding the Award Date.

3.4                   
Term of Option 

Subject to paragraph 3.5, the Expiry Date of an Option shall be
the date so fixed by the Board at the time the particular Option is awarded,
provided that such date shall not be later than the fifth anniversary of the
Award Date of the Option. 

3.5                   
Termination of Option 

An Option Holder may, subject to any vesting provisions
applicable to Options hereunder, exercise an Option in whole or in part at any
time or from time to time during the Exercise Period provided that, with respect
to the exercise of part of an Option, the Board may at any time and from time to
time fix a minimum or maximum number of Shares in respect of which an Option
Holder may exercise part of any Option held by such Option Holder. Any Option or
part thereof not exercised within the Exercise Period shall terminate and become
null, void and of no effect as of 5:00 p.m. local time in Vancouver, British
Columbia, on the Expiry Date. The Expiry Date of an Option shall be the earlier
of the date so fixed by the Board at the time the Option is awarded and the date
established, if applicable, in sub-paragraphs (a) to (c) below (the “Early
Termination Date”): 

	 	(a) 	
      Death

	 	 	 	 
	 		
      In the event that the Option Holder should die while he
      or she is still a Director (if he or she holds his or her Option as
      Director) or Employee or Consultant (if he or she holds his or her Option
      as Employee or Consultant), the Early Termination Date shall be twelve
      (12) months from the date of death of the Option Holder; or

	 	 	 	 
	 	(b) 	
      Ceasing to hold Office

	 	 	 	 
	 		
      In the event that the Option Holder holds his or her
      Option as Director of the Company and such Option Holder ceases to be a
      Director of the Company other than by reason of death, the Early
      Termination Date of the Option shall be 90 days from the date the Option
      Holder ceases to be a Director of the Company unless the Option Holder
      ceases to be a Director of the Company but continues to be engaged by the
      Company as an Employee, in which case the Expiry Date shall remain
      unchanged, or unless the Option Holder ceases to be a Director of the
      Company as a result of:

	 	 	 	 
	 		(i) 	
      ceasing to meet the qualifications set forth in the
      Business Corporations Act (British Columbia); or

	 	 	 	 
	 		(ii) 	
      a resolution having been passed by the shareholders of
      the Company pursuant to the Business Corporations Act (British
      Columbia) removing the Director as such; or

	 	 	 	 
	 		(iii) 	
      by order of any securities commission or the Exchange or
      any other regulatory body having jurisdiction to so
  order, in which case the Early Termination Date shall be the
  date the Option Holder ceases to be a Director of the Company.

- 6 - 

	 	(c) 	
      Ceasing to be Employed or a Consultant

	 	 	 	 
	 		
      In the event that the Option Holder holds his or her
      Option as an Employee or Consultant of the Company and such Option Holder
      ceases to be an Employee or Consultant of the Company other than by reason
      of death, the Early Termination Date of the Option shall be 90 days from
      the date the Option Holder ceases to be an Employee or Consultant of the
      Company unless the Option Holder ceases to be an Employee or Consultant of
      the Company as a result of:

	 	 	 	 
	 		(i) 	
      termination for cause or, in the case of a Consultant,
      breach of contract; or

	 	 	 	 
	 		(ii) 	
      by order of any securities commission or the Exchange or
      any other regulatory body having jurisdiction to so order,

	 	 	 	 
	 			
      in which case the Early Termination Date shall be the
      date the Option Holder ceases to be an

	 	 	 	 
	 		
      Employee or Consultant of the
Company.

3.6                    Vesting

All Options granted pursuant to the Plan will be subject to
such vesting requirements as may be prescribed by the Exchange, if applicable,
or as may be imposed by the Board. 

3.7                    Effect
of a Take-Over Bid 

If a bona fide offer (an “Offer”) for Shares is made to
an Option Holder or to shareholders of the Company generally or to a class of
shareholders which includes the Option Holder, which Offer, if accepted in whole
or in part, would result in the offeror becoming a control person of the
Company, within the meaning of the Securities Act, the Company shall,
immediately upon receipt of notice of the Offer, notify each Option Holder of
full particulars of the Offer, whereupon all Shares subject to Options will
become vested and the Options may be exercised in whole or in part by each
Option Holder so as to permit each Option Holder to tender the Shares received
upon exercise of his Options, pursuant to the Offer. However, if: 

	 	(a) 	
      the Offer is not completed within the time specified
      therein; or

	 	 	 
	 	(b) 	
      all of the Shares acquired by the Option Holder on the
      exercise of his Option and tendered pursuant to the Offer are not taken up
      or paid for by the offeror in respect thereof,

then the Shares received upon the exercise of such Options, or
in the case of clause (b) above, the Shares that are not taken up and paid for,
may be returned by each Option Holder to the Company and reinstated as
authorized but unissued Shares and with respect to such returned Shares, the
Options shall be reinstated as if they had not been exercised and the terms upon
which such Shares were to become vested pursuant to paragraph 3.6 shall be
reinstated. If any Shares are returned to Company under this paragraph 3.7, the
Company shall immediately refund the exercise price to the Option Holder for
such Shares.

- 7 - 

3.8                    Acceleration
of Expiry Date 

If at any time when an Option granted under the Plan remains
unexercised and an Offer is made by an offeror, the Directors may, upon
notifying each Option Holder of full particulars of the Offer, declare all
Shares issuable upon the exercise of Options granted under the Plan, vested,
and, notwithstanding paragraphs 3.4 and 3.5, may declare that the Expiry Date
for the exercise of all unexercised Options granted under the Plan is
accelerated so that all Options will either be exercised or will expire prior to
the date upon which Shares must be tendered pursuant to the Offer. 

3.9                   
Effect of a Change of Control 

If a Change of Control occurs, all Shares subject to each
outstanding Option will become vested, whereupon all Options may be exercised in
whole or in part by the Option Holders. 

3.10                  Assignment
of Options 

Options may not be assigned or transferred, provided however
that the Personal Representative of an Option Holder may, to the extent
permitted by paragraph 4.1, exercise the Option within the Exercise Period. 

3.11                 
Adjustments 

If prior to the complete exercise of any Option the Shares are
consolidated, subdivided, converted, exchanged or reclassified or in any way
substituted for (collectively the “Event”), an Option, to the extent that it has
not been exercised, shall be adjusted by the Board in accordance with such Event
in the manner the Board deems appropriate. No fractional Shares shall be issued
upon the exercise of any Option and accordingly, if as a result of the Event, an
Option Holder would become entitled to a fractional Share, such Option Holder
shall have the right to purchase only the next lowest whole number of Shares and
no payment or other adjustment will be made with respect to the fractional
interest so disregarded. Additionally, no lots of Shares in an amount less than
500 Shares shall be issued upon the exercise of the Option unless such amount of
Shares represents the balance left to be exercised under the Option. 

ARTICLE IV 

EXERCISE OF OPTION 

4.1                   
Exercise of Option 

An Option may be exercised only by the Option Holder or the
Personal Representative of any Option Holder. An Option Holder or the Personal
Representative of any Option Holder may exercise an Option in whole or in part
at any time or from time to time during the Exercise Period up to 5:00 p.m.
local time in Vancouver, British Columbia on the Expiry Date by delivering to
the Administrator an Exercise Notice, the applicable Option Certificate and a
certified cheque or bank draft payable to the Company in an amount equal to the
aggregate Exercise Price of the Shares to be purchased pursuant to the exercise
of the Option. 

- 8 - 

4.2                   
Issue of Share Certificates 

As soon as practicable following the receipt of the Exercise
Notice, the Administrator shall cause to be delivered to the Option Holder a
certificate for the Shares purchased pursuant to the exercise of the Option. If
the number of Shares purchased is less than the number of Shares subject to the
Option Certificate surrendered, the Administrator shall forward a new Option
Certificate to the Option Holder concurrently with delivery of the aforesaid
share certificate for the balance of Shares available under the Option. 

4.3                    Condition
of Issue 

The issue of Shares by the Company pursuant to the exercise of
an Option is subject to this Plan and compliance with the laws, rules and
regulations of all regulatory bodies applicable to the issuance and distribution
of such Shares and to the listing requirements of any stock exchange or
exchanges on which the Shares may be listed. The Option Holder agrees to comply
with all such laws, rules and regulations and agrees to furnish to the Company
any information, report and/or undertakings required to comply with and to fully
cooperate with the Company in complying with such laws, rules and regulations.

ARTICLE V 

STOCK APPRECIATION RIGHTS 

5.1                    Stock
Appreciation Rights 

Any Option granted under this Plan may include a stock
appreciation right, either at the time of grant or by adding it to an existing
Option; subject, however, to the grant of such stock appreciation right being in
compliance with the applicable regulations and policies of the Exchange. 

5.2                    Stock
Appreciation Rights Tied to Options 

A stock appreciation right which may be granted pursuant to
this Plan shall be exercisable to the extent, and only to the extent, the Option
with which it is included is exercisable. To the extent that a stock
appreciation right included in or attached to an Option granted hereunder is
exercised, the Option to which it is included or attached shall be deemed to
have been exercised to a similar extent. 

5.3                    Terms
of Stock Appreciation Rights 

A stock appreciation right granted pursuant to this Plan shall
entitle the Option Holder to elect to surrender to the Company, unexercised, the
Option with which it is included, or any portion thereof, and to receive from
the Company in exchange therefor that number of Shares, disregarding fractions,
having an aggregate value equal to the excess of the value of one Share over the
purchase price per Share specified in such Option, times the number of Shares
called for by the Option, or portion thereof, which is so surrendered. The value
of a Share shall be determined for these purposes, unless otherwise specified or
permitted by applicable regulatory policies, based on the weighted average
trading price per Share for the five trading days immediately preceding the date
the notice provided for in section 5.1 hereof is received by the Company on the
Exchange. 

5.4                    Exercise
of Stock Appreciation Rights 

Subject to the provisions of the Plan, a stock appreciation
right granted hereunder may be exercised from time to time by delivering to the
Company the Exercise Notice. 

- 9 - 

ARTICLE VI 

BONUSES 

6.1                   
Grant of Bonus 

The Board shall have the right to determine and to grant
Options to any Director or Employee, together with a corresponding right to be
paid, in cash, an amount equal to the exercise price of such Options, subject to
such provisos and restrictions as the Board may be determine, and subject to any
applicable Exchange or other approvals, if required. 

6.2                    Number
of Shares 

The Options granted as part of the bonus provided in section
6.1 shall be included in, and are not in addition to, the maximum number of
Options which may be granted under this Plan from time to time.

ARTICLE VII 

ADMINISTRATION 

7.1                    Administration

The Plan shall be administered by the Administrator on the
instructions of the Board. The Board may make, amend and repeal at any time and
from time to time such regulations not inconsistent with the Plan as it may deem
necessary or advisable for the proper administration and operation of the Plan
and such regulations shall form part of the Plan. The Board may delegate to the
Administrator or any Director, officer or employee of the Company such
administrative duties and powers as it may see fit. 

7.2                    Interpretation

The interpretation by the Board of any of the provisions of the
Plan and any determination by it pursuant thereto shall be final and conclusive
and shall not be subject to any dispute by any Option Holder. No member of the
Board or any person acting pursuant to authority delegated by it hereunder shall
be liable for any action or determination in connection with the Plan made or
taken in good faith and each member of the Board and each such person shall be
entitled to indemnification with respect to any such action or determination in
the manner provided for by the Company. 

- 10 - 

ARTICLE VIII 

AMENDMENT AND TERMINATION 

8.1                    Prospective
Amendment 

Subject to applicable regulatory and, if required by any
relevant law, rule or regulation applicable to the Plan, to shareholder
approval, the Board may from time to time amend the Plan and the terms and
conditions of any Option thereafter to be granted and, without limiting the
generality of the foregoing, may make such amendment for the purpose of meeting
any changes in any relevant law, rule or regulation applicable to the Plan, any
Option or the Shares or for any other purpose which may be permitted by all
relevant laws, rules and regulations provided always that any such amendment
shall not alter the terms or conditions of any Option or impair any right of any
Option Holder pursuant to any Option awarded prior to such amendment.
Notwithstanding the foregoing, the Board may, subject to the requirements of the
Exchange, amend the terms upon which each Option shall become vested with
respect to Shares without further approval of the Exchange, other regulatory
bodies having authority over the Company or the Plan or the shareholders. 

8.2                    Retrospective
Amendment 

Subject to applicable regulatory approval and, if required by
any relevant law, rule or regulation applicable to the Plan, to shareholder
approval, the Board may from time to time retrospectively amend the Plan and,
with the consent of the affected Option Holders, retrospectively amend the terms
and conditions of any Options which have been previously granted. 

8.3                    Termination

The Board may terminate the Plan at any time provided that such
termination shall not alter the terms or conditions of any Option or impair any
right of any Option Holder pursuant to any Option awarded prior to the date of
such termination. Notwithstanding the termination of the Plan, the Company,
Options awarded under the Plan, Option Holders and Shares issuable under Options
awarded under the Plan shall continue to be governed by the provisions of the
Plan. 

8.4                    Agreement

The Company and every person to whom an Option is awarded
hereunder shall be bound by and subject to the terms and conditions of the Plan.
This Plan repeals and replaces any stock option plan adopted by the Company
prior to the date hereof and any options awarded under a prior plan, option
holders and shares issuable under options awarded under a prior plan shall
hereafter be governed by the provisions of this Plan. 

ARTICLE IX 

APPROVALS REQUIRED FOR PLAN 

9.1             
       Substantive Amendments to Plan 

Any substantive amendments to the Plan shall be subject to the
Company first obtaining the approvals, if required, of: 

	 	(a) 	
      the shareholders or disinterested shareholders, as the
      case may be, of the Company at general meeting where required by the rules
      and policies of the Exchange, or any stock exchange on which the Shares
      may then be listed for trading; and

 

SCHEDULE “A” 

EMC METALS CORP.

STOCK OPTION PLAN 

OPTION CERTIFICATE 

This Certificate is issued pursuant to the provisions of EMC
Metals Corp. (formerly Golden Predator Mines Inc.) (the “Company”) Stock Option
Plan (the “Plan”) and evidences that _______________________ (the “Holder”) is
the holder of an option (the “Option”) to purchase up to _________________common
shares (the “Shares”) in the capital stock of the Company at a purchase price of
$ ____________ per Share. Subject to the provisions of the Plan: 

	 	(a) 	
      the Award Date of this Option is
      _______________________________________; and

	 	 	 
	 	(b) 	
      the Expiry Date of this Option is
      ________________________________________.

The right to purchase Shares under the Option will vest in the
Holder in increments over the term of the Option as follows: 

	Date 	Cumulative Number of Shares which may be
      Purchased 
	  	 
	 	 
	 	 
	 	 

This Option may be exercised in accordance with its terms at
any time and from time to time from and including the Award Date through to and
including up to 5:00 local time in Vancouver, British Columbia on the Expiry
Date, by delivery to the Administrator of the Plan an Exercise Notice, in the
form provided in the Plan, together with this Certificate and a certified cheque
or bank draft payable to the Company in an amount equal to the aggregate of the
Exercise Price of the Shares in respect of which the Option is being exercised.
If the Optionee is an employee or consultant, the Optionee confirms that it is a
bona fide employee or consultant, as the case may be. 

The foregoing Option has been awarded this _____day of
__________________________________. 

EMC METALS CORP.

 

Per: ____________________________________

SCHEDULE “B” 

EXERCISE NOTICE 

	TO: 	The Administrator, Stock Option Plan 
	  	c/o EMC METALS CORP. 
	  	Suite 1100, 888 Dunsmuir Street 
	  	Vancouver, BC V6C 3K4 

1.            
          EXERCISE OF OPTION 

The undersigned hereby irrevocably gives notice, pursuant to
the EMC Metals Corp. (the “Company”) Stock Option Plan (the “Plan”), of the
exercise of the Option to acquire and hereby subscribes for (cross out
inapplicable item): 

	(a) 	
      all of the Shares; or

	 	 
	(b) 	
      ________________________  of the Shares, which are
      the subject of the option certificate attached
hereto.

Calculation of total Exercise Price: 

	(i) 	number of Shares to be acquired on exercise:	 	____________ shares 	 
	 	 	 	 	 
	(ii) 	times the Exercise Price per Share: 	$	 	 
	 	 	 	 	 
	  	Total Exercise Price, as enclosed herewith: 	$	 	 

The undersigned tenders herewith a cheque or bank draft (circle
one) in the amount of $ ___________________, payable to the Company in an amount
equal to the total Exercise Price of the Shares, as calculated above. 

	2. 	
      EXERCISE OF STOCK APPRECIATION RIGHT
      (Complete only if exercising stock appreciation
      rights]

The undersigned hereby irrevocably gives notice, pursuant to
the Plan, of the exercise of the stock appreciation right provided under the
Plan and accordingly, wishes to receive such number of Shares as calculated in
accordance with the Plan. As consideration for the Shares, the undersigned
hereby agrees to cancel [cross out inapplicable item]: 

	(a) 	
      all of the Rights; or

	 	 
	(b) 	
      ________________________ of the
Rights.

2.            
          DELIVERY OF SHARE
CERTIFICATE 

The Company is directed to deliver the share certificate
evidencing the number of Shares to be issued to the undersigned pursuant to this
Exercise Notice, to the undersigned at the following address: 

____________________________________________________________________________________

____________________________________________________________________________________

All the capitalized terms, unless otherwise defined in this
Exercise Notice, will have the meaning provided in the Plan. 

DATED the ____ day of ____________________________________.

	 	 	 
	Witness 	 	Signature of Option Holder 
	 	 	 
	Name of Witness (Print) 	 	Name of Option Holder (Print)EMC Metals Corp. - Exhibit 10.2 - Filed by newsfilecorp.com

_____________________________________________________

 

 

WARRANT INDENTURE 

 

 

_____________________________________________________

 

Dated as of August 15, 2008 

 

between 

 

GOLDEN PREDATOR MINES INC. 

 

- and - 

 

OLYMPIA TRUST COMPANY 

 

Providing for the issue of 

Common Share Purchase Warrants 

 

Vancouver, British Columbia

TABLE OF CONTENTS 

	ARTICLE 1.      INTERPRETATION
      	6 
	1.1	1.1 Definitions 	6 
	1.2	1.2 Plurals and Gender 	8 
	1.3	1.3 Saturdays, Sundays, Holidays, etc. 	8 
	1.4	1.4 Governing Law 	8 
	ARTICLE 2.      BENEFICIARIES
      	9 
	2.1	2.1 Beneficiaries 	9 
	ARTICLE 3.      ISSUE AND DELIVERY
      OF WARRANTS 	9 
	3.1	3.1 Authorized Number of Warrants 	9 
	3.2	3.2 Terms of Warrants 	9 
	3.3	3.3 Form of Warrant Certificates 	10 
	3.4	3.4 Fractional Warrants 	10 
	3.5	3.5 Execution of Warrant Certificates 	10 
	3.6	3.6 Certification of Warrant Agent 	10 
	3.7	3.7 Warrants To Rank Pari Passu 	10 
	3.8	3.8 Ownership of Warrants 	11 
	3.9	3.9 Mutilation, Loss, Theft or Destruction of Warrants 	11 
	3.10	3.10 Exchange of Warrant Certificates 	11 
	3.11	3.11 Replacement Warrant Certificates 	12 
	3.12	3.12 Warrant Holder not a Shareholder 	12 
	3.13	3.13 Warrant Registers and Transfer of Warrants 	12 
	ARTICLE 4.      EXERCISE OF
      WARRANTS 	13 
	4.1	4.1 Method of Exercise 	13 
	4.2	4.2 Restrictions on Exercise and U.S. Restrictive Legend
      	13 
	4.3	4.3 Effect of Exercise of Warrants 	15 
	4.4	4.4 Subscription for Less than Entitlement 	15 
	4.5	4.5 Expiration of Warrants 	15 
	4.6	4.6 Adjustment of Subscription Rights 	15 
	4.7	4.7 Notice of Adjustment 	19 
	4.8	4.8 Delay of Delivery in Certain Cases 	19 
	4.9	4.9 Fractional Common Shares 	19 
	4.10	4.10 Protection of the Warrant Agent 	20 
	ARTICLE 5.      COVENANTS OF
      THE CORPORATION 	20 
	5.1	5.1 General Covenants 	20 
	5.2	5.2 Warrant Agent's Remuneration and Expenses 	21 
	ARTICLE 6.      ENFORCEMENT
      	21 
	6.1	6.1 Suits by Warrant Holders 	21 
	6.2	6.2 Warrant Agent May Institute All Proceedings 	22 
	6.3	6.3 Immunity of Shareholders, etc. 	22 
	6.4	6.4 Waiver of Default 	22 
	ARTICLE 7.      MEETINGS OF
      WARRANT HOLDERS 	23 
	7.1	7.1 Right to Convene Meeting 	23 
	7.2	7.2 Notice 	23 
	7.3	7.3 Chairman 	23 
	7.4	7.4 Quorum 	23 
	7.5	7.5 Power to Adjourn 	24 
	7.6	7.6 Show of Hands 	24 
	7.7	7.7 Poll 	24 
	7.8	7.8 Voting 	24 
	7.9	7.9 Regulations 	24 
	7.10	7.10 Corporation and Warrant Agent may be Represented 	25 
	7.11	7.11 Powers Exercisable by Extraordinary Resolution 	25 
	7.12	7.12 Meaning of "Extraordinary Resolution" 	27 
	7.13	7.13 Powers Cumulative 	27 

	7.14	Minutes 	27 
	7.15	Instruments in Writing 	28 
	7.16	Binding Effect of Resolutions 	28 
	7.17	Holdings By Corporation Disregarded 	28 
	ARTICLE 8.      CONCERNING THE
      WARRANT AGENT 	28 
	8.1	Conditions Precedent to Warrant Agent's Obligations to Act
      	28 
	8.2	Duty of Warrant Agent 	29 
	8.3	Evidence 	29 
	8.4	Experts and Advisers 	30 
	8.5	Warrant Agent Not Required to Give Security 	30 
	8.6	Protection of Warrant Agent 	30 
	8.7	Replacement of Warrant Agent 	32 
	8.8	Consolidation or Change of Name of Warrant Agent 	32 
	8.9	Acceptance of Trust 	33 
	8.10	Conflict of Interest 	33 
	8.11	Warrant Agent Not Appointed Receiver 	33 
	ARTICLE 9.      GENERAL
      	33 
	9.1	Supplemental Indentures 	33 
	9.2	Documents, Moneys, etc. Held by Warrant Agent 	34 
	9.3	Cancellation of Warrant Certificates 	34 
	9.4	Satisfaction and Discharge 	35 
	9.5	Notice to the Corporation 	35 
	9.6	Notice to the Warrant Agent 	35 
	9.7	Notice to Warrant Holders 	35 
	9.8	Mail Service Interruption 	36 
	9.9	Sole Benefit of Parties and Warrant Holders 	37 
	9.10	Third Party Interests 	37 
	9.11	Privacy Matters 	37 
	9.12	Counterparts 	37 
	9.13	Time of Essence 	37 
	SCHEDULE “A” 	  

WARRANT INDENTURE 

                                  
This Warrant Trust Indenture is made as of the 15th day of August,
2008,

B E T W E E N: 

  
    
      
        GOLDEN PREDATOR MINES INC. a corporation incorporated
          pursuant to the laws of British Columbia (hereinafter referred to as
          the "Corporation") 

      

    

  

- and - 

  
    
      
        OLYMPIA TRUST COMPANY, a trust company
          authorized to carry on business in the provinces of British Columbia
          and Alberta, Canada (hereinafter referred to as the "Warrant Agent")
        

      

    

  

                                  
WHEREAS the Corporation's authorized capital currently consists
of an unlimited amount of Common Shares ; 

                                  
AND WHEREAS the Corporation and Fury Explorations Ltd. (“Fury”)
have entered into to a business combination by way of plan of arrangement
pursuant to Sections 288 through 299 of the BCBCA, in which (1) the Corporation
will issue 1/3 of a Common Share and 1/2 of a Warrant for every one common share
in the capital of Fury held, and (2) Fury shall become a wholly owned subsidiary
of the Corporation.

                                  
AND WHEREAS each whole Warrant shall entitle the registered
holder thereof to acquire one Common Share at a cost of CAD$3.35 for a period of
three years from the Closing Date upon the terms and conditions herein set
forth; 

                                  
AND WHEREAS all things necessary have been done and performed
to make the Warrants legal, valid and binding upon the Corporation with the
benefits and subject to the terms and conditions of this Indenture; 

                                  
AND WHEREAS the Corporation desires the Warrant Agent to act on
behalf of the Corporation, and the Warrant Agent is willing to act, in
connection with the issuance of Warrants and other matters as provided herein;

                                  
NOW THEREFORE, THIS INDENTURE WITNESSES that for good and
valuable consideration mutually given and received, the receipt and sufficiency
of which is hereby acknowledged, the parties hereto agree as follows: 

ARTICLE
1.              
INTERPRETATION 

1.1       
Definitions

In this Indenture, including the recitals and schedules hereto
and in all indentures supplemental hereto, the expressions below shall have the
following meanings: 

- 4 - 

	 	(a) 	
      “Arrangement” the business combination of the
      Corporation and Fury pursuant to Sections 288 through 299 of the BCBCA and
      the Pre-Arrangement Agreement whereby on the Closing Date, the Corporation
      issues 1/3 of a Common Share and 1/2 of a Warrant for every one common
      share in the capital of Fury held, and Fury becomes a wholly owned
      subsidiary of the Corporation.

	 	 	 
	 	(b) 	
      “BCBCA” means the Business Corporations Act
      (British Columbia);

	 	 	 
	 	(c) 	
      "Business Day" means a day which is not a
      Saturday, Sunday or civic or statutory holiday in Vancouver, British
      Columbia;

	 	 	 
	 	(d) 	
      "Close of Business" means 4:30 p.m., Vancouver,
      British Columbia time;

	 	 	 
	 	(e) 	
      “Closing Date” means the effective date of the
      Arrangement, being a date as may be agreed to by the Corporation and
      Fury;

	 	 	 
	 	(f) 	
      "Common Share Certificate" means a certificate
      evidencing Common Shares issued and outstanding in the share capital of
      the Corporation;

	 	 	 
	 	(g) 	
      "Common Shares" means the common shares in the
      capital of the Corporation, as such shares exist at the Close of Business
      on the Closing Date of the Arrangement; provided that in the event of a
      change or a subdivision, redivision, reduction, combination or
      consolidation thereof, or successive such changes, subdivisions,
      redivisions, reductions, combinations or consolidations then, subject to
      adjustments, if any, having been made in accordance with the provisions of
      Section 4.6, "Common Shares" shall thereafter mean the shares resulting
      from such change, subdivision, redivision, reduction, combination or
      consolidation;

	 	 	 
	 	(h) 	
      "Corporation" means Golden Predator Mines
    Inc.;

	 	 	 
	 	(i) 	
      "counsel" means a barrister or solicitor or firm
      of barristers or solicitors (who may be counsel to the Corporation)
      acceptable to the Warrant Agent;

	 	 	 
	 	(j) 	
      "Current Market Price" per Common Share at any
      date shall be the simple average closing price per Common Share for such
      Common Shares for any 20 consecutive trading days (such 20 consecutive
      trading days being selected by the Corporation) ending not more than five
      trading days preceding such date on the TSX (or, if the Common Shares are
      not listed on such stock exchange, on such stock exchange on which such
      Common Shares are listed as may be selected for such purpose by the
      directors of the Corporation, or if such Common Shares are not listed on
      any stock exchange then on the over the counter market). If such Common
      Shares are not listed on any stock exchange or traded on an over the
      counter market, the Current Market Price shall be determined in good faith
      by the directors of the Corporation.

	 	 	 
	 	(k) 	
      "Dividends Paid in the Ordinary Course" means cash
      dividends declared payable on the Common Shares in any fiscal year of the
      Corporation to the extent that such cash dividends do not exceed, in the
      aggregate, the greatest of: (i) 200% of the aggregate amount of cash
      dividends declared payable by the Corporation on the Common Shares in its
      immediately preceding fiscal year; (ii) 300% of the arithmetic mean of the
      aggregate amounts of cash dividends declared payable by the Corporation on
      the Common Shares in its three immediately preceding fiscal years and;
      (iii) 100% of the aggregate consolidated net income of the Corporation, before
  extraordinary items, for its immediately preceding fiscal year;

- 5 - 

	 	(l) 	
      "Exercise Price" means the amount required to
      purchase Common Shares on the exercise of Warrants pursuant to the terms
      hereof being, subject to Article 5, the sum of CAD$3.35 per Common
      Share;

	 	 	 
	 	(m) 	
      "Expiry Date" means the date which is three years
      from the Closing Date;

	 	 	 
	 	(n) 	
      "Extraordinary Resolution" has the meaning given
      in Section 7.12;

	 	 	 
	 	(o) 	
      "Holder" or "Warrant Holder" means the
      registered holder for the time being of any of the Warrants;

	 	 	 
	 	(p) 	
      "Officers' Certificate" means a certificate signed
      by the President, Chief Financial Officer, Secretary or a duly authorized
      director of the Corporation;

	 	 	 
	 	(q) 	
      "Pre-Arrangement Agreement" means the agreement
      dated July 8, 2008 between the Corporation and Fury respecting the
      business combination of the companies pursuant to the
  Arrangement;

	 	 	 
	 	(r) 	
      “TSX” means the Toronto Stock Exchange;

	 	 	 
	 	(s) 	
      "Warrant Agent" means Olympia Trust Company or its
      successor and permitted assigns from time to time;

	 	 	 
	 	(t) 	
      "Warrants" means warrants issued, or authorized to
      be issued, hereunder for the purchase of Common Shares evidenced by
      Warrant Certificates;

	 	 	 
	 	(u) 	
      "Warrant Certificate" means a certificate
      evidencing Warrants issued and certified hereunder and substantially in
      the form set out in Schedule “A”;

	 	 	 
	 	(v) 	
      "Warrant Holders' Request" means an instrument in
      writing signed, or signed in counterparts, by the holders of not less than
      25% of the aggregate number of Warrants outstanding at that time
      requesting the Warrant Agent to take some action or proceeding specified
      therein;

	 	 	 
	 	(w) 	
      "written order of the Corporation" means a written
      order, request, consent, or certificate and any other document signed in
      the name of the Corporation by any director or officer of the Corporation,
      and may consist of one or more instruments so executed; and

	 	 	 
	 	(x) 	
      "this Indenture", "hereto", "herein", "hereby",
      "hereunder", "hereof" and similar expressions mean or refer to this
      Indenture and any indenture, deed or instrument supplemental or ancillary
      hereto; and the expressions "Article", "Section", "subsection" and
      "clause" followed by a number mean and refer to the specified Article,
      Section, subsection and clause of this Indenture;

- 6 - 

1.2        Plurals
and Gender

Words importing the singular number only shall include the
plural and vice versa and words importing the masculine gender shall include the
feminine gender and words importing persons shall include firms and corporations
and vice versa. 

1.3       
Saturdays, Sundays, Holidays, etc.

If the date for the taking of any action under this Indenture
falls on a Saturday, Sunday or a legal holiday, such action may be taken on the
next succeeding day that is not a Saturday, Sunday or legal holiday, with the
same force and effect as if made on the nominal date. 

1.4       
Governing Law

This Indenture and the Warrants shall be governed by the laws
of the Province of British Columbia and the laws of Canada applicable therein
and shall be treated in all respects as a British Columbia contract. 

ARTICLE
2.              
BENEFICIARIES 

2.1       
Beneficiaries

This Indenture is entered into with the Warrant Agent for the
benefit of, and the Warrant Agent declares that it holds this Indenture and all
rights, interests and benefits of this Indenture for, such persons, firms and
corporations, and each of them, as become Holders of Warrants from time to time.

ARTICLE
3.              
ISSUE AND DELIVERY OF WARRANTS 

3.1       
Authorized Number of Warrants

There are hereby authorized, created and issued an aggregate
total of up to _____________________Warrants in connection with the Arrangement,
such Warrant Certificates shall be executed by the Corporation and certified by
or on behalf of the Warrant Agent, upon the written order of the Corporation,
and delivered by the Warrant Agent to the Corporation in accordance with the
written direction of the Corporation. 

3.2        Terms
of Warrants

	 	(a) 	
      Subject to Section 3.2(b) each whole Warrant shall
      entitle the holder thereof to purchase one Common Share at any time until
      the Close of Business on the Expiry Date at a price per Common Share equal
      to the Exercise Price.

	 	 	 
	 	(b) 	
      The number of Common Shares which may be purchased
      pursuant to the Warrants and the Exercise Price shall be adjusted in the
      events and in the manner specified in ARTICLE 4.

- 7 - 

3.3        Form of
Warrant Certificates

Warrant Certificates shall be issued in registered form and
shall be substantially in the form set out in Schedule “A” hereto (except as
hereinafter provided) with such additions, variations and deletions as may be
permitted by the provisions of this Indenture and as may be agreed upon between
the Corporation and the Warrant Agent, and numbered in such manner as the
Corporation with the approval of the Warrant Agent may prescribe. All Warrant
Certificates shall be dated the date of issue of the Warrants and shall, save as
to denominations, be of like tenor and effect and when issued shall comply with
the requirements of the TSX. 

3.4       
Fractional Warrants

No Warrant Certificate evidencing any fraction of a Warrant
shall be issued. If any fraction of a Warrant would otherwise be issuable, the
number of Warrants so issued shall be rounded down to the nearest whole Warrant.

3.5       
Execution of Warrant Certificates

Warrant Certificates shall be signed by the President, Chief
Financial Officer, Secretary or a duly authorized director of the Corporation
and need not be under seal. A facsimile signature upon any of the Warrant
Certificates shall for all purposes of this Indenture be deemed to be the
signature of the person whose signature it purports to be and, notwithstanding
that a person whose signature may appear on the Warrant Certificates is not at
the date of this Indenture or at the date of the delivery of the Warrant
Certificates an officer of the Corporation as aforesaid, the Warrants
represented by such Warrant Certificates shall be valid and binding upon the
Corporation. 

3.6       
Certification of Warrant Agent

No Warrant Certificate shall be issued or, if issued, shall be
valid for any purpose whatsoever, or shall entitle the Holder thereof to any
rights, until the Warrant Certificate has been certified by the Warrant Agent,
such certificate to be substantially in the form set out in Schedule “A” or in
such other form as may be approved by the Warrant Agent. The Warrant
Certificates may be certified by an officer or agent of the Warrant Agent
appointed by it for that purpose and any such signature on a Warrant Certificate
shall be conclusive evidence that it is duly issued. The certificate of the
Warrant Agent on a Warrant Certificate shall not be construed as a
representation or warranty by the Warrant Agent as to the validity of this
Indenture or of the Warrants represented thereby or as to the carrying out by
the Corporation of its obligations under this Indenture and the Warrant Agent
shall in no respect be liable or answerable for the use made of the Warrants, or
any of them, or of the consideration therefor except as otherwise specified
herein. The certification of the Warrant Agent on a Warrant Certificate shall,
however, be a representation and warranty by the Warrant Agent that the Warrant
Certificate has been duly certified by or on behalf of the Warrant Agent
pursuant to the provisions of this Indenture. 

3.7       
Warrants To Rank Pari Passu 

All Warrants will rank pari passu, whatever may be the
actual dates of the issue of the Warrant Certificates by which the Warrants are
evidenced. 

- 8 - 

3.8       
Ownership of Warrants

The Warrant Agent and the Corporation shall be entitled to
treat the Holder of a Warrant Certificate as the absolute holder and owner of
the Warrants represented thereby and neither the Warrant Agent nor the
Corporation shall be charged with notice of or be bound to see to the execution
of any trust whether express, implied or constructive, in respect of any
Warrants. A Holder of a Warrant shall be entitled to the rights evidenced
thereby free from all equities and rights of set-off or counterclaim between the
Corporation and the original or any intermediate holder thereof and all persons
may act accordingly, and the issuance thereto in accordance with the terms
hereof will be a good discharge to the Corporation and the Warrant Agent
therefor and neither the Corporation nor the Warrant Agent will be bound to
inquire into the title of any such Holder. 

3.9       
Mutilation, Loss, Theft or Destruction of Warrants

	 	(a) 	
      In case any of the Warrant Certificates issued and
      countersigned hereunder is mutilated or lost, destroyed or stolen, the
      Corporation, in its discretion, may issue and deliver a new Warrant
      Certificate of like date and tenor in exchange for and in place of the one
      mutilated, lost destroyed or stolen and upon surrender and cancellation of
      such mutilated Warrant Certificate or in lieu of and in substitution for
      such lost, destroyed or stolen Warrant Certificate and the substituted
      Warrant Certificate entitles the holder thereof to the benefits hereof and
      ranks equally in accordance with its terms with all other Warrants issued
      hereunder.

	 	 	 
	 	(b) 	
      The Warrant Holder applying for the issue of a new
      Warrant Certificate pursuant to this section shall bear the cost of the
      issue thereof and in case of loss, destruction or theft shall, as a
      condition precedent to the issue thereof, furnish to the Corporation such
      evidence of ownership and the loss, destruction or theft of the Warrant
      Certificate so lost, destroyed or stolen as is satisfactory to the
      Corporation in its discretion. The Corporation shall require such
      applicant to furnish an indemnity and surety bond in the amount and form
      satisfactory to the Corporation and the Warrant Agent in their discretion,
      and the applicant shall pay the reasonable charges of the Corporation and
      the Warrant Agent in connection therewith.

3.10      Exchange of
Warrant Certificates

Warrant Certificates to purchase any specified number of Common
Shares may, upon compliance with the reasonable requirements of the Warrant
Agent, be exchanged for Warrant Certificates in other denominations entitling
the Holder thereof to purchase an equal aggregate number of Common Shares.
Warrant Certificates may be exchanged at the principal offices of the Warrant
Agent in Vancouver, British Columbia. Except as otherwise herein provided, the
Warrant Agent shall, charge to the Warrant Holder requesting an exchange a
reasonable sum for each new Warrant Certificate issued; and payment of such
charges and of any and all taxes or governmental or other charges required to be
paid by the Warrant Holder requesting such exchange shall be made by such Holder
as a condition precedent thereto. 

- 9 - 

3.11      Replacement
Warrant Certificates

Irrespective of any adjustments pursuant to ARTICLE 4, all
replacement and exchanged Warrant Certificates shall express the number of
Warrants evidenced thereby as if such Warrant Certificates were initially issued
pursuant to Section 3.3. 

3.12      Warrant
Holder not a Shareholder

The holding of a Warrant evidenced by a Warrant Certificate
does not make the Holder a shareholder of the Corporation nor does it entitle
the Holder to any right or interest except as is expressly provided in this
Indenture and in the Warrant Certificate. 

3.13      Warrant
Registers and Transfer of Warrants

The Corporation shall, at all times while any Warrants are
outstanding, cause to be kept (i) by and at the principal office of the Warrant
Agent in Vancouver, British Columbia, registers of Holders in which shall be
entered the names and addresses of the Holders and particulars of the Warrants
held by them respectively, and (ii) by and at the principal office of the
Warrant Agent in Vancouver, British Columbia and in such other place or places
and by the Warrant Agent or by such other registrar or registrars, if any, as
the Corporation with the approval of the Warrant Agent may designate, registers
of transfers in which shall be entered the particulars of all transfers of
Warrants. 

No transfer of a Warrant shall be valid unless made by the
Holder or his executors or administrators or other legal representatives or his
or their attorney duly appointed by an instrument in writing in form or in
accordance with the form on the Warrant Certificate, and execution satisfactory
to the Warrant Agent, upon compliance with such requirements as the Warrant
Agent or other registrar may prescribe, and unless such transfer shall have been
duly entered on one of the registers of transfers or noted on such Warrants by
the Warrant Agent or other registrar. 

The registers referred to in this Section 3.13 shall at all
reasonable times be open for inspection by the Corporation, by the Warrant Agent
and by any Warrant Holder. A Holder may at any time and from time to time have
such Warrants transferred at any of the places at which a register of transfers
is kept pursuant to the provisions of this Section 3.13, in accordance with such
reasonable regulations as the Warrant Agent may prescribe. 

Except in the case of the registers required to be kept in
Vancouver, British Columbia, the Corporation, with the approval of the Warrant
Agent, shall have power at any time to close any register of transfers and in
that event shall transfer the records thereof to another existing register or to
a new register. In the event that the register in any place is closed and the
records transferred to a register kept in another place, notice of such change
shall be given in the manner provided in Section 9.7 to the Holders registered
in the register so closed. 

The Warrant Agent shall, when requested to do so in writing by
the Corporation, furnish the Corporation with a list of names and addresses of
the Holders showing the amounts of such Warrants held by each Holder. 

- 10 - 

ARTICLE
4.              
EXERCISE OF WARRANTS 

4.1        Method
of Exercise 

	 	(a) 	
      The right to purchase Common Shares conferred by the
      Warrants may be exercised by the Holder surrendering the Warrant
      Certificate representing it, together with a duly completed and executed
      exercise form as set out on the back of the Warrant Certificate (the
      “Exercise Form”) and a certified cheque, bank draft or money order in
      lawful money of Canada payable to or to the order of the Corporation, in
      the amount of the aggregate Exercise Price in respect of the Common Shares
      subscribed for, to the Warrant Agent at its principal office in Vancouver,
      British Columbia; provided that no Warrants may be exercised after the
      Expiry Date. The Warrant Certificate and the aggregate Exercise Price
      shall be deemed to be duly surrendered pursuant to this Section 4.1 only
      upon personal delivery thereof or, if sent by mail or other means of
      transmission, upon actual receipt thereof by the Warrant Agent at its
      principal office in Vancouver, British Columbia or at such other place
      that is designated by the Corporation with the approval of the Warrant
      Agent.

	 	 	 
	 	(b) 	
      Such Exercise Form shall be signed by the Warrant Holder
      or the lawful attorney thereof and shall specify the number of Common
      Shares which the Holder desires to purchase (being not more than that
      number which the Holder is entitled to purchase pursuant to the Warrant
      Certificate surrendered), the name and address or names and addresses of
      the person or persons to whom such Common Shares are to be issued and the
      numbers of Common Shares to be issued to each such person if more than one
      person is so specified. If any of the Common Shares subscribed for are to
      be issued to a person or persons other than the Warrant Holder, the
      Warrant Holder shall pay all requisite transfer taxes or like
    charges.

4.2       
Restrictions on Exercise and U.S. Restrictive Legend

	 	(a) 	
      The Warrants may not be exercised in the United States or
      by or on behalf of a “U.S. person” (a “U.S. Person”), as such term is
      defined in Regulation S (“Regulation S”) under the U.S. Securities Act of
      1933, as amended (the “U.S. Securities Act”), unless an exemption from
      registration is available under the U.S. Securities Act and any applicable
      state securities laws and the Corporation has received an opinion of
      counsel and other evidence to such effect in form and substance
      satisfactory to the Corporation.

	 	 	 
	 	(b) 	
      Unless otherwise required by United States federal or
      state securities laws, only those certificates representing Common Shares
      originally issued to a U.S. Person or a person in the United States or a
      person for the account or benefit of a U.S. Person or a person in the
      United States, as well as all certificates issued in exchange for or in
      substitution of the foregoing securities, will bear a legend to the
      following effect:

- 11 - 

	 		
      THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN AND WILL
      NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
      AMENDED (THE “U.S. SECURITIES ACT”), OR THE LAWS OF ANY STATE OF THE
      UNITED STATES. THE HOLDER HEREOF, BY PURCHASING SUCH SECURITIES, AGREES
      FOR THE BENEFIT OF THE CORPORATION THAT SUCH SECURITIES MAY BE OFFERED,
      SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO THE CORPORATION, (B) OUTSIDE THE
      UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE U.S.
      SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE LOCAL LAWS AND
      REGULATIONS, (C) IN COMPLIANCE WITH THE EXEMPTION FROM REGISTRATION UNDER
      THE U.S. SECURITIES ACT PROVIDED BY RULE 144 OR RULE 144A THEREUNDER, IF
      AVAILABLE, AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS OR (D)
      IN ANOTHER TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE U.S.
      SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAWS AFTER THE SELLER
      FURNISHES TO THE CORPORATION AN OPINION OF COUNSEL OF RECOGNIZED STANDING
      IN FORM AND SUBSTANCE SATISFACTORY TO THE CORPORATION TO SUCH EFFECT.
      DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE “GOOD DELIVERY” IN
      SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA. IF, AT ANY TIME
      THE CORPORATION IS A “FOREIGN ISSUER” AS DEFINED IN REGULATION S UNDER THE
      U.S. SECURITIES ACT, THESE SECURITIES ARE BEING SOLD IN ACCORDANCE WITH
      RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT, A NEW CERTIFICATE
      BEARING NO LEGEND, DELIVERY OF WHICH WILL CONSTITUTE “GOOD DELIVERY,” MAY
      BE OBTAINED FROM THE CORPORATION’S TRANSFER AGENT UPON DELIVERY OF THIS
      CERTIFICATE AND A DULY EXECUTED DECLARATION, IN A FORM SATISFACTORY TO THE
      CORPORATION AND ITS TRANSFER AGENT, TO THE EFFECT THAT THE SALE OF THE
      SECURITIES REPRESENTED HEREBY IS BEING MADE IN ACCORDANCE WITH RULE 904 OF
  REGULATION S UNDER THE U.S. SECURITIES ACT.

	 	 	 
	 		
      provided, that if, at the time the Corporation is
      a “foreign issuer” as defined in Regulation S, such securities are being
      sold in accordance with the requirements of Rule 904 of Regulation S, as
      referred to above, and in compliance with local laws and regulations, the
      legend may be removed by providing a declaration to the Corporation and
      the Corporation’s transfer agent for such securities, in the form as the
      Corporation may prescribe from time to time;

	 	 	 
	 		
      notwithstanding the foregoing, the Corporation’s
      transfer agent may impose additional requirements for the removal of
      legends from securities sold in accordance with Rule 904 of Regulation S
      in the future; and

	 	 	 
	 		
      provided further, that, if any of such securities
      are being sold pursuant to Rule 144 of the U.S. Securities Act, the legend
      may be removed by delivery to the Corporation and the Corporation’s
      transfer agent of an opinion of counsel of recognized standing in form and
      substance satisfactory to the Corporation to the effect that the legend is
      no longer required under applicable requirements of the U.S. Securities
      Act or state securities laws.

	 	 	 
	 	(c) 	
      If a certificate representing Common Shares is tendered
      for transfer and bears the legend set forth in above and the holder has
      not obtained the prior written consent of the Corporation, the
      Corporation’s transfer agent shall not register such transfer unless the
      transferor has provided the certificate representing the Common Shares and
      the transfer is being made (i) to the Corporation, (ii) outside the United
      States in accordance with the requirements of Rule 904 of Regulation S and
      in compliance with applicable local laws and regulations of the
      jurisdiction(s) where such sale is made, (iii) in compliance with
    the exemption from registration under the U.S. Securities Act
provided by Rule 144 or Rule 144A thereunder, if available, and in accordance
with applicable state securities laws, or (iv) in another transaction that does
not require registration under the U.S. Securities Act or any applicable state
securities laws, and the holder has prior to such sale furnished to the
Corporation an opinion of counsel of recognized standing in form and substance
reasonably satisfactory to the Corporation to such effect. 

- 12 - 

4.3        Effect
of Exercise of Warrants

Upon compliance with the provisions of Section 4.1 above, the
Holder shall be deemed to have become the holder of record of the Common Shares
so subscribed and paid for unless the transfer registers of the Corporation are
closed on such date, in which case the Common Shares issuable upon the exercise
of the Warrants will be deemed to have been issued and such person or persons
deemed to have become the holder or holders of record of such Common Shares, on
the date on which such transfer registers are reopened.The Warrant Agent shall
cause a certificate or certificates for the Common Shares to be issued as a
consequence of such exercise and shall thereupon, and in any event within three
business days, cause to be mailed, postage prepaid, to the person or persons in
whose name or names the Common Shares so subscribed for are to be issued as
specified in such subscription, at the address or addresses specified in such
Exercise Form. 

4.4       
Subscription for Less than Entitlement

A Warrant Holder may exercise the right to purchase Common
Shares attached to fewer Warrants than are represented by a Warrant Certificate.
In the case of the exercise of a lesser number of Warrants than are represented
by a Warrant Certificate, the Warrant Holder shall be entitled to receive a new
Warrant Certificate representing the Warrants not then exercised. Such new
Warrant Certificate shall be mailed, postage prepaid, to the Warrant Holder
exercising the right to purchase Common Shares at the address specified in the
subscription. 

4.5       
Expiration of Warrants

After the Close of Business on the Expiry Date, all Warrants in
respect of which the right of subscription and purchase has not theretofore been
exercised shall be void and of no effect and shall not thereafter be outstanding
hereunder or be entitled to the benefit of this Indenture or give the Holder
thereof any rights whatsoever against the Corporation or the Warrant Agent. 

4.6       
Adjustment of Subscription Rights

The Exercise Price in effect and the number and type of
securities purchasable under the Warrants at any date shall be subject to
adjustment from time to time as follows: 

	 	(a) 	
      If and whenever at any time prior to the Expiry Date, the
      Corporation shall (i) subdivide or re-divide the outstanding Common Shares
      into a greater number of shares, (ii) reduce, combine or consolidate the
      outstanding Common Shares into a smaller number of shares, or (iii) issue
      Common Shares (or securities convertible into or exchangeable for Common
      Shares) to the holders of all or substantially all of the outstanding
      Common Shares by way of a stock dividend (other than the issue of Common
      Shares to holders of Common Shares who have elected to receive dividends
      in the form of Common Shares in lieu of Dividends Paid in the Ordinary
      Course), the Exercise Price in effect on the effective date of any such
      event shall be adjusted immediately after such event or on the record date
      for such issue of Common Shares by way of stock dividend, as the case may
      be, so that it shall equal the amount determined by multiplying the
      Exercise Price in effect immediately prior to such event by a fraction, of
      which the numerator shall be the total number of Common Shares outstanding
      immediately prior to such event and of which the denominator shall be the
      total number of Common Shares outstanding immediately after such event
      (including the total number of Common Shares into or for which the
      securities convertible into or exchangeable for Common Shares so issued
      are convertible into or exchangeable for). Any Common Shares owned by or
      held for the account of the Corporation or any subsidiary of the
      Corporation shall be deemed not to be outstanding for the purpose of any
      such computation. The number of Common Shares which the Holder of Warrants
      is entitled to purchase for each Warrant shall be adjusted at the same
      time by multiplying the number by the inverse of the aforesaid fraction.
      Any such adjustments shall be made successively whenever any event
      referred to in this subsection (a) shall occur and any such issue of
      Common Shares (or securities convertible into or exchangeable for Common
      Shares) by way of a stock dividend shall be deemed to have been made on
      the record date for the stock dividend for the purpose of calculating the
      number of outstanding Common Shares immediately after such event under
  subsections (a) and (c) of this Section 4.6.

- 13 - 

	 	(b) 	
      If and whenever at any time prior to the Expiry Date, the
      Corporation shall fix a record date for the issuance of rights, options or
      warrants to all or substantially all of the holders of the outstanding
      Common Shares, entitling them, for a period expiring not more than 45 days
      after such record date, to subscribe for or purchase Common Shares (or
      securities convertible into or exchangeable for Common Shares) at a price
      per share (or having a conversion or exchange price per share) less than
      95% of the Current Market Price on such record date, the Exercise Price
      shall be adjusted immediately after such record date so that it shall
      equal the price determined by multiplying the Exercise Price in effect on
      such record date by a fraction, of which the numerator shall be the total
      number of Common Shares outstanding on such record date plus the number
      arrived at by dividing the aggregate price of the total number of
      additional Common Shares offered for subscription or purchase (or the
      aggregate conversion or exchange price of the convertible or exchangeable
      securities so offered) by such Current Market Price, and of which the
      denominator shall be the total number of Common Shares outstanding on such
      record date plus the total number of additional Common Shares offered for
      subscription or purchase (or into which the convertible or exchangeable
      securities so offered are convertible or exchangeable). Any Common Shares
      owned by or held for the account of the Corporation or any subsidiary of
      the Corporation shall be deemed not to be outstanding for the purpose of
      any such computation. Such adjustment shall be made successively whenever
      such a record date is fixed. To the extent that any such rights, options
      or warrants are not so issued or any such rights, options or warrants are
      not exercised prior to the expiration thereof, the Exercise Price shall
      then be re-adjusted to the Exercise Price which would then be in effect
      based upon the number and aggregate price of Common Shares (or securities
      convertible into or exchangeable for Common Shares) actually issued upon
      the exercise of such rights, options or warrants, as the case may
    be.

- 14 - 

	 	(c) 	
      If and whenever at any time prior to the Expiry Date, the
      Corporation shall fix a record date for the making of a distribution to
      all or substantially all of the holders of its outstanding Common Shares
      of (i) shares of any class other than Common Shares, other than shares
      distributed to holders of Common Shares who have elected to receive
      dividends in the form of such shares in lieu of Dividends Paid in the
      Ordinary Course and other than the issue of Common Shares (or securities
      convertible into or exchangeable for Common Shares) to the holders of all
      or substantially all of the outstanding Common Shares by way of a stock
      dividend, or (ii) rights, options or warrants (excluding those exercisable
      for 45 days or less after the record date therefor), or (iii) evidences of
      its indebtedness, or (iv) assets (excluding Dividends Paid in the Ordinary
      Course), including shares of other corporations, then, in each such case,
      the Exercise Price shall be adjusted immediately after such record date so
      that it shall equal the price determined by multiplying the Exercise Price
      in effect on such record date by a fraction, of which the numerator shall
      be the total number of Common Shares outstanding on such record date
      multiplied by the Current Market Price per Common Share on such record
      date, less the fair market value (as determined by the board of directors,
      which determination shall be conclusive) of such shares or rights, options
      or warrants or evidences of indebtedness or assets actually distributed,
      and of which the denominator shall be the total number of Common Shares
      outstanding on such record date multiplied by such Current Market Price
      per Common Share. Any Common Shares owned by or held for the account of
      the Corporation shall be deemed not to be outstanding for the purpose of
      any such computation. Such adjustment shall be made successively whenever
      such a record date is fixed. To the extent that such distribution is not
      so made, the Exercise Price shall be re-adjusted to the Exercise Price
      which would then be in effect if such record date had not been fixed or to
      the Exercise Price which would then be in effect based upon such shares or
      rights, options or warrants or evidences of indebtedness or assets
      actually distributed, as the case may be. In clause (iv) of this
      subsection 4.6(c), the term "Dividends Paid in the Ordinary Course" shall
      include the value of any securities or other property or assets
      distributed in lieu of cash Dividends Paid in the Ordinary Course at the
      option of the shareholders.

	 	 	 
	 	(d) 	
      If and whenever at any time prior to the Expiry Date,
      there is a reclassification of the Common Shares at any time outstanding
      or a change of the Common Shares into other shares or a capital
      reorganization of the Corporation not covered in subsection (a) or a
      consolidation, amalgamation or merger of the Corporation with or into any
      other corporation, or an exchange of the securities of the Corporation
      pursuant to a plan of arrangement, or a sale of the property and assets of
      the Corporation as or substantially as an entirety to any other person, a
      Holder of a Warrant which has not been exercised prior to the effective
      date of such reclassification, capital reorganization, consolidation,
      amalgamation, merger, exchange or sale shall thereafter, upon the exercise
      of such Warrants, be entitled to receive and shall accept in lieu of the
      number of Common Shares, as then constituted, to which the Holder was
      previously entitled upon exercise of the Warrants, but for the same
      aggregate consideration payable therefor, the number of shares or other
      securities or property of the Corporation or of the corporation resulting
      from such reclassification, capital reorganization, consolidation,
      amalgamation, merger, or exchange or of the person to which such sale may
      be made, as the case may be, that such Holder would have been entitled to
      receive on such reclassification, capital reorganization, consolidation,
      amalgamation, merger, exchange or sale if on the effective date thereof,
      the Holder had been the registered holder of the number of Common Shares
      to which the Holder was previously entitled upon due exercise of the
      Warrants; and in any case, if necessary, appropriate adjustment shall be
      made in the application of the provisions set forth in this Indenture with
      respect to the rights and interests thereafter of the Holders of the
      Warrants to the end that the provisions set forth in this Indenture shall
      thereafter correspondingly be made applicable, as nearly as may reasonably
      be, in relation to any shares or other securities or property to which the
      Holder of Warrants may be entitled upon the exercise of such Warrants
  thereafter.

- 15 - 

	 	(e) 	
      In any case in which this Section 4.6 shall require that
      an adjustment shall become effective immediately after a record date for
      an event referred to herein, the Corporation may, until the occurrence of
      such event, defer issuing to the Holder of any Warrant exercised after
      such record date and before the occurrence of such event the kind and
      amount of shares, other securities or property to which he would be
      entitled upon such exercise by reason of the adjustment required by such
      event; provided that the Corporation shall deliver to such Holder an
      appropriate instrument evidencing such Holder's right to receive the kind
      and amount of shares, other securities or property to which he would be
      entitled upon the occurrence of the event requiring such adjustment and
      the right to receive any distributions made or declared in favour of
      holders of record of Common Shares as constituted from time to time on and
      after such date as such Holder would, but for the provisions of this
      subsection 4.6(e), have received, or become entitled to receive, on such
      exercise.

	 	 	 
	 	(f) 	
      The adjustments provided for in this Section 4.6 are
      cumulative and shall apply to successive subdivisions, redivisions,
      reductions, combinations, consolidations, distributions, issues or other
      events resulting in any adjustment under the provisions of this Section
      4.6; provided that notwithstanding any other provision of this Section
      4.6, (i) no adjustment of the Exercise Price or number of Common Shares,
      as then constituted, purchasable shall be required unless such adjustment
      would require an increase or decrease of at least 1% in the Exercise Price
      then in effect or the number of Common Shares, as then constituted,
      purchasable, and (ii) any adjustments which by reason of this subsection
      4.6(f) are not required to be made shall be carried forward and taken into
      account in any subsequent adjustment.

	 	 	 
	 	(g) 	
      In the event of any question arising with respect to the
      adjustments provided in this Section 4.6, such question shall be
      conclusively determined by a firm of chartered accountants appointed by
      the Corporation and acceptable to the Warrant Agent (who may be the
      auditors of the Corporation). Such accountants shall have access to all
      necessary records of the Corporation and such determination shall be
      binding upon the Corporation, the Warrant Agent and the Warrant
      Holders.

	 	 	 
	 	(h) 	
      As a condition precedent to the taking of any action
      which would require an adjustment in any of the subscription rights
      pursuant to any of the Warrants, including the number of Common Shares
      which are to be received upon the exercise thereof, the Corporation shall
      take any action which may, in the opinion of counsel be necessary in order
      that the Corporation may validly and legally issue as fully paid and
      non-assessable all the Common Shares which the holders of such Warrants
      are entitled to receive on the full exercise thereof in accordance with
      the provisions hereof.

	 	 	 
	 	(i) 	
      No adjustment shall be made pursuant to this Section 4.6
      if the Warrant Holders are entitled to participate in any event described
      in this Section 4.6 on the same terms, mutatis mutandis, as if the Warrant Holders had exercised
      their Warrants prior to, or on the effective date or record date of, such
      event.

      

- 16 - 

	 	(j) 	
      In case the Corporation shall take any action affecting
      the Common Shares other than action described in this Section 4.6, which
      in the opinion of the directors of the Corporation would materially affect
      the rights of Warrant Holders, the Exercise Price and/or the number of
      Common Shares which may be acquired upon exercise of a Warrant shall be
      adjusted by action of the directors in such manner and at such time, in
      their sole discretion, as they may determine to be equitable in the
      circumstances, provided that no such adjustment will be made unless prior
      approval of all stock exchanges on which the Common Shares are listed for
      trading has been obtained. Failure of the directors to make such an
      adjustment shall be conclusive evidence that the directors have determined
      that it is equitable to make no adjustment in the
  circumstances.

4.7        Notice
of Adjustment

	 	(a) 	
      Immediately after the occurrence of any event which
      requires an adjustment pursuant to Section 4.6, in the Exercise Price or
      in any of the subscription rights pursuant to any of the Warrants,
      including the number of Common Shares, as then constituted, which are to
      be received upon the exercise thereof, the Corporation shall forthwith
      file with the Warrant Agent an Officers' Certificate specifying the
      particulars of such event and the required adjustment and the computation
      of such adjustment and the Corporation shall give at least 14 days notice
      (in the manner provided in Section 9.7 hereof) to the holders of Warrants
      of the record date or effective date of such event, as the case may be,
      and such notice shall include particulars of such event and the required
      adjustment.

4.8        Delay
of Delivery in Certain Cases

The Corporation shall not be required to deliver certificates
for Common Shares during the period when the stock transfer books of the
Corporation are closed due to an impending meeting of shareholders or a proposed
payment of dividends or for any other purpose and, in the event of a surrender
of a Warrant Certificate for the purchase of Common Shares during such period,
the delivery of certificates may be postponed for a period not exceeding 10 days
after the date of the reopening of the stock transfer books. 

4.9       
Fractional Common Shares

The Corporation shall not issue fractional Common Shares in
satisfaction of its obligations under this Indenture. No subscription for a
fractional part of a Common Share shall be accepted nor shall any cash payment
be made in respect thereof. To the extent that any Warrant Holder would
otherwise be entitled to purchase a fraction of a Common Share, such right may
be exercised only in combination with other rights which, in the aggregate,
would entitle the Holder to purchase a whole number of Common Shares. 

- 17 - 

4.10      Protection of
the Warrant Agent

The Warrant Agent shall be entitled to act and rely on any
adjustment calculation of the Corporation, its directors and auditors, and the
Warrant Agent shall not: 

	 	(a) 	
      at any time be under any duty or responsibility to any
      holder to determine whether facts exist which may require any adjustment
      contemplated by this Article, or with respect to the nature or extent of
      any such adjustment when made, or with respect to the method employed in
      making same;

	 	 	 
	 	(b) 	
      be accountable with respect to the validity or value (or
      the kind or amount) of any shares or of any other shares or securities or
      property which may at any time be issued or delivered upon the exercise or
      deemed exercise of any Warrant; or

	 	 	 
	 	(c) 	
      be responsible for any failure of the Corporation to make
      any cash payment or to issue, transfer or deliver shares or share
      certificates upon the surrender of any Warrant for the purpose of exercise
      or deemed exercise, or to comply with any of the covenants contained in
      this Article.

ARTICLE
5.              
COVENANTS OF THE CORPORATION 

5.1        General
Covenants

	 	(a) 	
      The Corporation covenants that it is duly authorized to
      create and issue the Warrants to be issued hereunder and that the Warrant
      Certificates, when issued and countersigned as herein provided, will be
      valid and enforceable against the Corporation, and that, subject to the
      provisions of this Indenture, the Corporation will cause the Common Shares
      from time to time subscribed for and purchased pursuant to this Indenture,
      and the certificates representing the Common Shares, to be duly issued. At
      all times until the Expiry Date while any of the Warrants are outstanding,
      the Corporation shall reserve and there shall remain unissued out of its
      authorized capital a number of Common Shares sufficient to satisfy the
      exercise of all Warrants then outstanding. All Common Shares issued upon
      the exercise of the Warrants shall be fully-paid and
  non-assessable.

	 	 	 
	 	(b) 	
      The Corporation will do, execute, acknowledge and deliver
      or cause to be done, executed, acknowledged and delivered, all other acts,
      deeds and assurances in law as counsel may reasonably require for the
      better accomplishing and effecting of the intentions and provisions of
      this Indenture.

	 	 	 
	 	(c) 	
      Subject to the provisions hereof, the Corporation will
      carry on and conduct and will cause to be carried on and conducted its
      business in a proper and efficient manner and will cause to be kept proper
      books of account in accordance with generally accepted accounting
      practice, provided that the Corporation or any subsidiary of the
      Corporation may cease to operate or may dispose of any business, premises,
      property or operation if in the opinion of the directors or officers of
      the Corporation it would be advisable and in the best interests of the
      Corporation to do so. Subject to the provisions hereof, the Corporation
      will do or cause to be done, all things necessary to preserve and keep in
      full force and effect its corporate existence, provided that nothing
      herein contained shall prevent the amalgamation, consolidation, merger,
      sale, winding up or liquidation of the Corporation or any subsidiary of
      the Corporation or the abandonment of any rights
and franchises of the Corporation or any subsidiary of the
      Corporation if in the opinion of the directors or officers of the
      Corporation, it would be advisable and in the best interest of the
  Corporation or of such subsidiary of the Corporation to do so.

- 18 - 

	 	(d) 	
      The Corporation shall take all such steps and actions to
      do all such things that may reasonably be necessary to maintain the
      listing and posting for trading of the Common Shares and the Warrants on
      the TSX and to maintain its status as a "reporting issuer", or the
      equivalent thereof, not in default of the requirements of the securities
      acts and regulations thereunder of each of the provinces of Canada in
      which it currently is a reporting issuer.

	 	 	 
	 	(e) 	
      The Corporation will use reasonable efforts to ensure
      that the Common Shares issuable upon the exercise of the Warrants will be
      listed and posted for trading on the TSX upon their issue.

	 	 	 
	 	(f) 	
      If the Corporation shall fail to perform any of its
      covenants contained in this Indenture, the Warrant Agent may notify the
      Warrant Holders of such failure on the part of the Corporation or may
      itself perform any of the said covenants capable of being performed by it,
      but the Warrant Agent shall be under no obligation to do so or to notify
      the Warrant Holders. All sums expended or advanced by the Warrant Agent in
      performance of its rights provided for in this subsection 5.1(f) shall be
      repayable as provided in Section 5.2. No such performance, expenditure or
      advance by the Warrant Agent shall be deemed to relieve the Corporation of
      any default hereunder or its continuing obligations
  hereunder.

5.2        Warrant
Agent's Remuneration and Expenses

The Corporation covenants and agrees that it will pay to the
Warrant Agent from time to time reasonable remuneration for its services
hereunder and will pay or reimburse the Warrant Agent upon its request for all
reasonable expenses, disbursements and advances incurred or made by the Warrant
Agent in the administration or execution of the trusts hereby created (including
the reasonable compensation and the disbursements of its counsel and all other
advisers and assistants not regularly in its employ), both before any default
hereunder and thereafter until all duties of the Warrant Agent under the trusts
hereof shall be finally and fully performed, except any such expense,
disbursement or advance as may arise from the Warrant Agent’s gross negligence
or bad faith. 

ARTICLE
6.              
ENFORCEMENT 

6.1        Suits
by Warrant Holders

Subject to subsections 7.11(f) and (g), the rights conferred
upon the Holder of a Warrant by the terms of a Warrant or this Indenture may be
enforced by the Holder by appropriate legal proceedings but without prejudice to
the right hereby conferred upon the Warrant Agent to proceed in its own name to
enforce the provisions herein contained for the benefit of all the Holders.

6.2        Warrant
Agent May Institute All Proceedings

The Warrant Agent shall also have the power at any time and
from time to time to institute and to maintain such suits and proceedings as it
may be advised shall be necessary or advisable to preserve and protect its
interests and the interests of the Warrant Holders. 

- 19 - 

6.3       
Immunity of Shareholders, etc. 

             The
Warrant Agent and, by the acceptance of the Warrant Certificates and as part of
the consideration for the issue of the Warrants, the Warrantholders, hereby
waive and release any right, cause of action or remedy now or hereafter existing
in any jurisdiction against any incorporator or any past, present or future
shareholder, director, officer, employee or agent of the Corporation or of any
“successor Corporation” on any covenant, agreement, representation or warranty
by the Corporation contained herein or in the Warrant Certificates. 

6.4        Waiver
of Default 

             Upon
the happening of any default hereunder and provided that: (i) no meeting of
Warrantholders has been called to consider waiving such default; or (ii)
Warrantholders have determined not to pass a resolution to waive any such
default: 

	 	(a) 	
      the holders of not less than 51% of the Warrants then
      outstanding shall have the power (in addition to the powers exercisable by
      Extraordinary Resolution) by requisition in writing to instruct the
      Warrant Agent to waive any default hereunder and the Warrant Agent shall
      thereupon waive the default upon such terms and conditions as shall be
      stipulated in such requisition; and

	 	 	 
	 	(b) 	
      the Warrant Agent will have power to waive any default
      hereunder upon such terms and conditions as the Warrant Agent may deem
      advisable, if in the Warrant Agent’s opinion, the same shall have been
      cured or adequate provision made therefor;

provided that no delay or omission of the Warrant Agent or of
the Warrantholders to exercise any right or power accruing upon any default will
impair any such right or power or will be construed to be a waiver of any such
default or acquiescence therein and provided further that no act or omission
either of the Warrant Agent or of the Warrantholders in the premises will extend
to or be taken in any manner whatsoever to affect any subsequent default
hereunder or the rights resulting therefrom. 

ARTICLE
7.              
MEETINGS OF WARRANT HOLDERS 

7.1        Right
to Convene Meeting

The Warrant Agent may at any time and from time to time and
shall on receipt of a written request of the Corporation or a Warrant Holders'
Request and upon being funded and indemnified to its reasonable satisfaction by
the Corporation or by the Warrant Holders signing such Warrant Holders' Request
against the costs which may be incurred in connection with the calling and
holding of such meeting, convene a meeting of the Warrant Holders. In the event
of the Warrant Agent failing within 15 days after receipt of any such request
and such funding and indemnity to give notice calling a meeting, the Corporation
or such Warrant Holders, as the case may be, may convene such meeting. Every
such meeting shall be held in Vancouver, British Columbia or at such other place
as may be approved or determined by the Warrant Agent. 

- 20 - 

7.2       
Notice

At least 21 days' notice of any meeting shall be given to the
Warrant Holders in the manner provided in Section 9.7 and a copy of the notice
of the meeting shall be sent by mail postage prepaid, or by courier to the
Warrant Agent, unless the meeting has been called by it, and to the Corporation,
unless the meeting has been called by it. Such notice shall state the time when
and the place where the meeting is to be held and shall state briefly the
general nature of the business to be transacted thereat and shall contain such
information as is reasonably necessary to enable the Warrant Holders to make a
reasoned decision on the matter, but it shall not be necessary for any such
notice to set out the terms of any resolution to be proposed or any of the
provisions of this ARTICLE 7. 

7.3       
Chairman

An individual, who need not be a Warrant Holder, nominated in
writing by the Warrant Agent shall be Chairman of the meeting and if no person
is so nominated, or if the person so nominated is not present within 15 minutes
from the time fixed for the holding of the meeting, the Warrant Holders present
in person or by proxy shall choose an individual present to be Chairman. 

7.4       
Quorum

Subject to the provisions of Section 7.12, at any meeting of
the Warrant Holders a quorum shall consist of Warrant Holders present in person
or by proxy holding at least 25% of the aggregate number of the then outstanding
Warrants. If a quorum of the Warrant Holders shall not be present within 30
minutes from the time fixed for holding any meeting, the meeting, if summoned by
the Warrant Holders or on a Warrant Holders' Request, shall be dissolved; but in
any other case the meeting shall be adjourned to the same day in the next week
(unless such day is not a Business Day in which case it shall be adjourned to
the next following Business Day thereafter) at the same time and place and no
notice shall be required to be given in respect of such adjourned meeting. At
the adjourned meeting the Warrant Holders present in person or by proxy shall
form a quorum and may transact the business for which the meeting was originally
convened notwithstanding that they may not represent 25% of the aggregate number
of the then outstanding Warrants. 

7.5        Power
to Adjourn

The Chairman of any meeting at which a quorum of the Warrant
Holders is present may, with the consent of the holders of a majority of the
Warrants represented thereat, adjourn any such meeting and no notice of such
adjournment need be given except such notice, if any, as the meeting may
prescribe. 

7.6        Show of
Hands

Every question submitted to a meeting shall be decided in the
first instance by a majority of the votes given on a show of hands except that
votes on Extraordinary Resolutions shall be given in the manner hereinafter
provided. At any such meeting, unless a poll is duly demanded as herein
provided, a declaration by the Chairman that a resolution has been carried or
carried unanimously or by a particular majority or lost or not carried by a
particular majority shall be conclusive evidence of that fact. 

21

7.7       
Poll

A poll shall be taken on every Extraordinary Resolution, and on
any other question submitted to a meeting when demanded by the Chairman or by
one or more Warrant Holders holding at least 5% of the aggregate number of
Warrants for the time being outstanding. A poll shall be taken in such manner
and either at once or after an adjournment as the Chairman shall direct.
Questions other than Extraordinary Resolutions shall, if a poll be taken, be
decided by the votes of the holders of a majority of the Warrants voted on the
poll. 

7.8       
Voting

On a show of hands every person who is present and entitled to
vote, whether as a Warrant Holder or as a proxy for one or more Warrant Holders
or both, shall have one vote. On a poll each Warrant Holder present in person or
represented by proxy shall be entitled to one vote in respect of each Warrant of
which he shall then be the Holder. The holder of a proxy need not be a Warrant
Holder. 

7.9       
Regulations

The Warrant Agent with the approval of the Corporation may from
time to time make and from time to time vary such regulations as it shall think
fit providing for and governing: 

	 	(a) 	
      the deposit of proxies at such place as the Warrant
      Agent, the Corporation or the Warrant Holders convening the meeting, as
      the case may be, may in the notice convening the meeting direct and the
      time, if any, before the holding of the meeting or any adjournment thereof
      by which the same shall be deposited;

	 	 	 
	 	(b) 	
      the deposit of proxies at some approved place or places
      other than the place at which the meeting is to be held and enabling
      particulars of such proxies to be mailed, cabled, or telecopied, before
      the meeting to the Corporation or to the Warrant Agent at the place where
      the same is to be held and for the voting of proxies so deposited as
      though the instruments themselves were produced at the meeting;

	 	 	 
	 	(c) 	
      the form of any proxy; and

	 	 	 
	 	(d) 	
      generally, for the calling of meetings of Warrant Holders
      and the conduct of business thereat.

Any regulations so made shall be binding and effective and the
votes given in accordance therewith shall be valid and shall be counted. Save as
such regulations may provide, the only persons who shall be recognized at any
meeting as the Holders of any Warrants, or as entitled to vote or be present at
the meeting in respect thereof, shall be persons who are Warrant Holders and
their duly appointed proxies or transferees of Warrants who produce Warrant
Certificates, or otherwise establish that they own the Warrants, at the meeting.

7.10      Corporation and
Warrant Agent may be Represented

The Corporation and the Warrant Agent, by their respective
officers, directors, or employees, and the legal advisers of the Corporation and
the Warrant Agent and any legal advisers of any Warrant Holders shall be
entitled to attend any meeting of the Warrant Holders but shall have no vote as
such. 

22

7.11      Powers
Exercisable by Extraordinary Resolution

In addition to all other powers conferred upon them by the
provisions of this Indenture or by law, a meeting of the Warrant Holders shall
have the following powers exercisable from time to time by Extraordinary
Resolution: 

	 	(a) 	
      power to agree to any change, modification, abrogation,
      alteration, compromise or arrangement of the rights of the Warrant Holders
      or the Warrant Agent, in that capacity (subject to the prior consent of
      the Warrant Agent) or on behalf of the Warrant Holders, against the
      Corporation, whether such rights arise under this Indenture or the
      Warrants or otherwise;

	 	 	 
	 	(b) 	
      power to assent to and authorize any modification of or
      change in or addition to or omission from the provisions in this Indenture
      which shall be agreed to by the Corporation and to authorize the Warrant
      Agent to concur in and execute any ancillary or supplemental indenture
      hereto embodying any modification, change, addition or omission;

	 	 	 
	 	(c) 	
      power to sanction any scheme for the reconstruction or
      reorganization of the Corporation or for the consolidation, amalgamation
      or merger of the Corporation with any other corporation or for the sale,
      leasing, transfer or other disposition of the undertaking, property and
      assets of the Corporation or any part thereof;

	 	 	 
	 	(d) 	
      power to direct or authorize the Warrant Agent to enforce
      any of the covenants on the part of the Corporation contained in this
      Indenture or the Warrants or to enforce any of the rights of the Warrant
      Holders in any manner specified in such Extraordinary Resolution (subject
      to receipt by the Warrant Agent of adequate funding and indemnity) or to
      refrain from enforcing any such covenant or right;

	 	 	 
	 	(e) 	
      power to waive and direct the Warrant Agent to waive any
      default on the part of the Corporation in complying with any provision of
      this Indenture or under the Warrants either unconditionally or upon any
      conditions specified in such Extraordinary Resolution;

	 	 	 
	 	(f) 	
      power to restrain any Warrant Holder from taking or
      instituting any suit action or proceeding against the Corporation for the
      enforcement of any of the covenants on the part of the Corporation
      contained in this Indenture or the Warrants or to enforce any of the
      rights of the Warrant Holders;

	 	 	 
	 	(g) 	
      power to direct any Warrant Holder who, as such, has
      brought any suit, action or proceeding to start or discontinue or
      otherwise deal with the same upon payment of the costs, charges and
      expenses reasonably and properly incurred by such Warrant Holder in
      connection therewith;

	 	 	 
	 	(h) 	
      power to assent to any compromise or arrangement with any
      creditor or creditors or any class or classes of creditors, whether
      secured or otherwise, and with holders of any shares or other securities
      of the Corporation;

	 	 	 
	 	(i) 	
      power to appoint a committee with power and authority
      (subject to such limitations, if any, as may be prescribed in the
      Extraordinary Resolution) to exercise, and to direct the Warrant Agent to
      exercise, on behalf of the Warrant Holders, such of the powers of the
      Warrant Holders as are exercisable by Extraordinary Resolution or other
      resolution as shall be included in the Extraordinary Resolution
      appointing the committee. The Extraordinary Resolution making such
      appointment may provide for payment of the expenses and disbursements of
      and compensation to such committee and the Warrant Agent. Such committee
      shall consist of such number of persons as shall be prescribed in the
      Extraordinary Resolution appointing it and the members need not be
      themselves Warrant Holders. Subject to the terms of any Extraordinary
      Resolution creating such committee, every such committee may elect its
      Chairman and may make regulations respecting its quorum, the calling of
      its meetings, the filling of vacancies occurring in its number and its
      procedure generally. Such regulations may provide that the committee may
      act at a meeting at which a quorum is present or may act by minutes signed
      by the number of members thereof necessary to constitute a quorum. All
      acts of any such committee within the authority delegated to it shall be
      binding upon all Warrant Holders. Neither the committee nor any member
      thereof nor the Warrant Agent shall be liable for any loss arising from or
      in connection with any action taken or omitted to be taken by them in good
  faith;

23

	 	(j) 	
      power to remove the Warrant Agent or its successor in
      office and to appoint a new Warrant Agent or Warrant Agents to take the
      place of the Warrant Agent so removed; and

	 	 	 
	 	(k) 	
      power to amend or repeal any Extraordinary Resolution
      previously passed by Warrant Holders.

7.12      Meaning of
"Extraordinary Resolution"

	 	(a) 	
      The expression “Extraordinary Resolution" when used in
      this Indenture means, subject to this Section 7.12, a resolution proposed
      to be passed as an Extraordinary Resolution at a meeting of Warrant
      Holders duly called for that purpose and held in accordance with ARTICLE 7
      at which the Holders of more than 50% of the then outstanding Warrants are
      present in person or by proxy and passed by the favourable votes of the
      Holders of not less than 66 2/3% of the aggregate number of the then
      outstanding Warrants represented at the meeting and voted on a poll upon
      such resolution.

	 	 	 
	 	(b) 	
      If at any such meeting the Holders of more than 50% of
      the outstanding Warrants are not present in person or by proxy within 30
      minutes after the time appointed for the meeting, then the meeting, if
      convened by Warrant Holders or on a Warrant Holders' Request, shall be
      dissolved; but in any other case it shall stand adjourned to such date,
      being not less than 14 or more than 60 days later, and to such place and
      time as may be appointed by the Chairman. Not less than 10 days' notice
      shall be given of the time and place of such adjourned meeting in the
      manner provided in Section 10.7. Such notice shall state that at the
      adjourned meeting the Warrant Holders present in person or by proxy shall
      form a quorum. At the adjourned meeting the Warrant Holders present in
      person or by proxy shall form a quorum and may transact the business for
      which the meeting was originally convened and a resolution proposed at
      such adjourned meeting and passed by the requisite vote as provided in
      subsection 7.12(a) shall be an Extraordinary Resolution within the meaning
      of this Indenture, notwithstanding that the Holders of more than 50% of
      the Warrants then outstanding are not present in person or by proxy at
      such adjourned meeting.

24

	 	(c) 	
      Votes on an Extraordinary Resolution shall always be
      given on a poll and no demand for a poll upon an Extraordinary Resolution
      shall be necessary.

7.13      Powers
Cumulative

Any one or more of the powers or any combination of the powers
in this Indenture stated to be exercisable by the Warrant Holders by
Extraordinary Resolution or otherwise may be exercised from time to time and the
exercise of any one or more of such powers or any combination of powers from
time to time shall not be deemed to exhaust the rights of the Warrant Holders to
exercise the same or any other power or powers or combination of powers
thereafter from time to time. 

7.14      Minutes

Minutes of all resolutions and proceedings at every meeting of
Warrant Holders shall be made and duly entered in books to be from time to time
provided for that purpose by the Warrant Agent at the expense of the
Corporation, and any such minutes, if signed by the Chairman of the meeting at
which such resolutions were passed or proceedings taken, or by the Chairman of
the next succeeding meeting of the Warrant Holders, shall be prima facie
evidence of the matters therein stated and, until the contrary is proved, every
such meeting, in respect of the proceedings of which minutes shall have been
made, shall be deemed to have been duly convened and held, and all resolutions
passed thereat or proceedings taken shall be deemed to have been duly passed and
taken. 

7.15      Instruments in
Writing

All actions which may be taken and all powers that may be
exercised by the Warrant Holders at a meeting held as provided in this ARTICLE 7
may also be taken and exercised by Warrant Holders entitled to purchase at least
66 2/3% of the aggregate number of the then outstanding Warrants by an
instrument in writing signed in one or more counterparts by Warrant Holders in
person or by attorneys duly appointed in writing, and the expression
"Extraordinary Resolution" when used in this Indenture shall include an
instrument so signed. 

7.16      Binding Effect of
Resolutions

Every resolution and every Extraordinary Resolution passed in
accordance with the provisions of this ARTICLE 7 at a meeting of Warrant Holders
shall be binding upon all the Warrant Holders, whether present at or absent from
such meeting, and each and every Warrant Holder and the Warrant Agent (subject
to the provisions for its funding and indemnity herein contained) shall be bound
to give effect accordingly to every such resolution and Extraordinary
Resolution. 

25

7.17      Holdings By
Corporation Disregarded

In determining whether Warrant Holders holding Warrant
Certificates evidencing the entitlement to purchase the required number of
Common Shares are present at a meeting of Warrant Holders for the purpose of
determining a quorum or have concurred in any consent, waiver, Extraordinary
Resolution, Warrant Holders' Request or other action under this Indenture,
Warrants owned legally or beneficially by the Corporation or any subsidiary of
the Corporation shall be disregarded. The Corporation will provide the Warrant
Agent, on request, a certificate of the Corporation detailing the registration
and amounts of any Warrants owned legally or beneficially by the Corporation or
any subsidiary of the Corporation. 

ARTICLE
8.              
CONCERNING THE WARRANT AGENT 

8.1       
Conditions Precedent to Warrant Agent's Obligations to Act

	 	(a) 	
      The Warrant Agent shall not be bound to give any notice
      or do or take any act, action or proceeding in virtue of the powers
      conferred on it hereby unless and until it shall have been required to do
      so under the terms hereof; nor shall the Warrant Agent be required to take
      notice of any default hereunder, unless and until notified in writing of
      such default, which notice shall distinctly specify the default desired to
      be brought to the attention of the Warrant Agent, and in the absence of
      any such notice the Warrant Agent may for all purposes of this Indenture
      conclusively assume that no default has been made in the observance or
      performance of any of the representations, warranties, covenants,
      agreements or conditions contained herein. Any such notice shall in no way
      limit any discretion herein given to the Warrant Agent to determine
      whether or not the Warrant Agent shall take action with respect to any
      default.

	 	 	 
	 	(b) 	
      The obligation of the Warrant Agent to commence or
      continue any act, action or proceeding for the purpose of enforcing any
      rights of the Warrant Agent or the Warrant Holders hereunder or under the
      Warrants shall be conditional upon the Warrant Holders furnishing
      sufficient funds to commence or continue such act, action or proceeding
      and an indemnity reasonably satisfactory to the Warrant Agent to protect
      and hold harmless the Warrant Agent against the costs, charges, expenses
      and liabilities to be incurred thereby and any loss and damage it may
      suffer by reason thereof.

	 	 	 
	 	(c) 	
      None of the provisions contained in this Indenture shall
      require the Warrant Agent to expend or risk its own funds or otherwise
      incur financial liability in the performance of any of its duties or in
      the exercise of any of its rights or powers unless indemnified as
      aforesaid.

	 	 	 
	 	(d) 	
      The Warrant Agent may, before commencing or at any time
      during the continuance of any such act, action or proceeding, require the
      Warrant Holders at whose instance it is acting to deposit with the Warrant
      Agent the Warrant Certificates held by them, for which Warrant
      Certificates the Warrant Agent shall issue receipts.

	 	 	 
	 	(e) 	
      Notwithstanding anything else herein contained, the
      Warrant Agent shall retain the right not to act and shall not be liable
      for refusing to act if, due to a lack of information or for any other
      reason whatsoever, the Warrant Agent, in its sole judgment, determines
      that such act might cause it to be in non-compliance with any applicable
      anti-money laundering or anti-terrorist legislation, regulation or
      guideline. Further, should the Warrant Agent, in its sole judgment,
      determine at any time that its acting under this Indenture has resulted in
      its being in non-compliance with any applicable
  anti-money laundering or anti-terrorist legislation, regulation or
guideline, then it shall have the right to resign on 10 days written notice to
the Corporation, provided that (i) the Warrant Agent's written notice shall
describe the circumstances of such non-compliance; and (ii) if such
circumstances are rectified to the Warrant Agent's satisfaction within such 10
day period, then such resignation shall not be effective. 

26

8.2        Duty of
Warrant Agent

In the exercise of the rights, duties and obligations
prescribed or conferred by the terms of this Indenture, the Warrant Agent shall
exercise that degree of care, diligence and skill that a reasonably prudent
Warrant Agent would exercise in comparable circumstances. 

8.3       
Evidence

	 	(a) 	
      Whenever it is provided in this Indenture that the
      Corporation shall deposit with the Warrant Agent resolutions,
      certificates, requests, orders or other documents, it is intended that the
      truth, accuracy and good faith on the effective date thereof of the facts
      and opinions stated in all documents so deposited shall, in each and every
      such case, be conditions precedent to the right of the Corporation to have
      the Warrant Agent take the action to be based thereon. The Warrant Agent
      may act and rely and shall be protected in acting and relying upon any
      such documents deposited with it in purported compliance with any such
      provision or for any other purpose hereof, but may in its discretion
      require further evidence before acting or relying thereon.

	 	 	 
	 	(b) 	
      The Warrant Agent may act and rely and shall be protected
      in acting and relying upon any resolution, certificate, statement
      instrument, opinion, report, notice, request, consent, order, letter,
      telecopy or other paper or document believed by it to be genuine and to
      have been signed, sent or presented by or on behalf of the proper party or
      parties.

	 	 	 
	 	(c) 	
      Proof of the execution of an instrument in writing,
      including a Warrantholders’ Request, by any Warrantholder may be made by
      the certificate of a notary public, or other officer with similar powers,
      that the person signing such instrument acknowledged to it the execution
      thereof, or by an affidavit of a witness to such execution or in any other
      manner which the Warrant Agent may consider
adequate.

8.4        Experts
and Advisers

	 	(a) 	
      The Warrant Agent may employ or retain such counsel,
      accountants, or other experts or advisers as it may reasonably require for
      the purpose of determining and discharging its duties hereunder and shall
      not be responsible for any misconduct on the part of any of them. Any
      remuneration so paid by the Warrant Agent shall be repaid to the Warrant
      Agent in accordance with Section 5.2.

	 	 	 
	 	(b) 	
      The Warrant Agent may act and rely and shall be protected
      in acting and relying in good faith on the opinion or advice of or
      information obtained from any counsel, accountant or other expert or
      adviser, whether retained or employed by the Corporation or by the Warrant
      Agent, in relation to any matter arising in the administration of the
      trusts hereof.

27

8.5        Warrant
Agent Not Required to Give Security

The Warrant Agent shall not be required to give any bond or
security in respect of the execution of the trusts and powers of this Indenture
or otherwise. 

8.6       
Protection of Warrant Agent

By way of supplement to the provisions of any law for the time
being relating to Warrant Agents and applicable to the Warrant Agent, it is
expressly declared and agreed as follows: 

	 	(a) 	
      the Warrant Agent shall not be liable for or by reason of
      any statement of fact or recital in this Indenture or in the Warrants
      (except the countersignature of the Warrant Agent thereon) or be required
      to verify the same, but all such statements or recitals are and shall be
      deemed to be made by the Corporation;

	 	 	 
	 	(b) 	
      nothing herein contained will impose on the Warrant Agent
      any obligation to see to, or to require evidence of, the registration or
      filing (or renewal thereof) of this Indenture or any instrument ancillary
      or supplementary hereto;

	 	 	 
	 	(c) 	
      the Warrant Agent shall not be bound to give notice to
      any person or persons of the execution hereof;

	 	 	 
	 	(d) 	
      the Warrant Agent shall not incur any liability or
      responsibility whatever or be in any way responsible for the consequence
      of any breach on the part of the Corporation of any of the
      representations, warranties or covenants herein contained or of any acts
      of the agents or employees of the Corporation;

	 	 	 
	 	(e) 	
      the Warrant Agent, in its personal or any other capacity,
      may buy, lend upon and deal in shares in the capital of the Corporation
      and in the Warrants and generally may contract and enter into financial
      transactions with the Corporation or any related corporation without being
      liable to account for any profit made thereby; and

	 	 	 
	 	(f) 	
      the Warrant Agent and its directors, officers, agents and
      employees will at all times be indemnified and saved harmless by the
      Corporation from and against all claims, demands, losses, actions, causes
      of actions, costs, charges, expenses, damages and liabilities whatsoever
      arising in connection with this Indenture, including, without limitation,
      those arising out of or related to actions taken or omitted to be taken by
      the Warrant Agent contemplated hereby, legal fees and disbursements on a
      solicitor and client basis, and costs and expenses incurred in connection
      with the enforcement of this indemnity, which the Warrant Agent may suffer
      or incur, whether at law or in equity, in any way caused by or arising,
      directly or indirectly, in respect of any act, deed, matter or thing
      whatsoever made, done, acquiesced in or omitted in or about or in relation
      to the execution of its duties as Warrant Agent and including any deed,
      matter or thing in relation to the execution of its duties as Warrant
      Agent and including any deed, matter or thing in relation to the
      registration, perfection, release or discharge of security. The foregoing
      provisions of this section do not apply to the extent that in any
      circumstances there has been a failure by the Warrant Agent or its
      employees or agents to act honestly and in good faith or where the Warrant
      Agent or its employees or agents have acted with gross negligence or in
      willful disregard to the Warrant Agent’s obligations hereunder. It is
      understood and agreed that this indemnification shall survive the
      termination of this indenture or the resignation of the Warrant
    Agent;

28

	 	(g) 	
      if any action or proceeding shall be brought or any claim
      shall be asserted against the Warrant Agent, in respect of which the
      Warrant Agent may claim indemnification pursuant to this Section 8.6, the
      Warrant Agent will promptly notify the Corporation in writing of such
      action, proceeding or claim (including in such written notice any facts
      relating to such action or proceeding then known to the Warrant Agent) and
      the Corporation may, but shall not be obligated to, assume the defense
      thereof, employing counsel reasonably satisfactory to it. The Warrant
      Agent will have the right to retain other counsel, at the Warrant Agent’s
      expense, to act on the Warrant Agent’s behalf, provided that if the
      Warrant Agent is advised in writing by Counsel to the Warrant Agent that a
      conflict of interest exists that makes representation by Counsel chosen by
      the Corporation not advisable, the reasonable fees and expenses of such
      other Counsel will be paid by the Corporation. Notwithstanding anything
      contained herein, neither the Warrant Agent nor the Corporation will
      settle any action, proceeding or claim in respect of which indemnity may
      be sought by the Warrant Agent hereunder, without the prior consent of the
      other, such consent not to be unreasonably
withheld.

8.7       
Replacement of Warrant Agent

If the Warrant Agent shall resign (such resignation to become
effective not earlier than 30 days after the giving of written notice thereof to
the Corporation) or shall become incapable of acting as Warrant Agent, the
Corporation shall appoint a successor to the Warrant Agent. If the Corporation
shall fail to make such appointment within a period of 30 days after such
removal or after it has been so notified in writing of such resignation or
incapacity by the Warrant Agent or by a Holder (in the case of incapacity), then
the retiring Warrant Agent (at the Corporation's expense) or a Holder of any
Warrant may apply to any court of competent jurisdiction for the appointment of
a successor to the Warrant Agent. Pending appointment of a successor to the
Warrant Agent, either by the Corporation or by such a court, the duties of the
Warrant Agent shall be carried out by the Corporation. Any successor Warrant
Agent, whether appointed by the Corporation or by such a court, shall be a trust
company, in good standing, incorporated under the laws of Canada or any province
of Canada, qualified to do business in British Columbia and having offices in
Vancouver, British Columbia. As soon as practicable after the appointment of the
successor Warrant Agent, the Corporation shall cause written notice of the
change in the Warrant Agent to be given to the Holders as provided in Section
9.7. After its appointment the successor Warrant Agent shall be vested with the
same powers, rights, duties and responsibilities as if it had been originally
named as Warrant Agent without further act or deed; but the former Warrant Agent
(upon payment of its outstanding remuneration and expenses, if any) shall
deliver and transfer to the successor Warrant Agent any property at the time
held by it hereunder and shall execute and deliver, at the expense of the
Corporation, any further assurance, conveyance, act or deed necessary for that
purpose. Failure to give any notice provided for in this Section 8.7, however,
or any defect therein, shall not affect the legality or validity of the removal
of the Warrant Agent or the appointment of a successor Warrant Agent, as the
case may be. 

8.8       
Consolidation or Change of Name of Warrant Agent

	 	(a) 	
      Any corporation into which the Warrant Agent may be
      merged or converted or with which it may be consolidated, or any
      corporation resulting from any merger, conversion or consolidation to
      which the Warrant Agent shall be a party, or any corporation succeeding to
      the corporate trust business of the Warrant Agent, shall be the successor
      of the Warrant Agent hereunder without the execution or filing of any
      paper or any further act on the part of any of the parties hereto,
      provided that such corporation would be eligible for appointment as a successor to the Warrant
  Agent under the provisions of Section 8.7.

29

	 	(b) 	
      If at the time such successor to the Warrant Agent shall
      succeed under this Indenture any of the Warrant Certificates shall have
      been countersigned but not delivered, any such successor to the Warrant
      Agent may adopt the countersignature of the original Warrant Agent. If at
      that time any of the Warrant Certificates shall not have been
      countersigned, any successor to the Warrant Agent may countersign such
      Warrant Certificates either in the name of the predecessor Warrant Agent
      or in the name of the successor Warrant Agent. In all such cases such
      Warrant Certificates shall have the full force provided in the Warrant
      Certificates and in this Indenture.

	 	 	 
	 	(c) 	
      If at any time the name of the Warrant Agent shall be
      changed and at such time any of the Warrant Certificates shall have been
      countersigned but not delivered, the Warrant Agent whose name has changed
      may adopt the countersignature under its prior name. If at the time the
      Warrant Certificates shall not have been countersigned, the Warrant Agent
      may countersign such Warrant Certificates either in its prior name or in
      its changed name. In all such cases such Warrant Certificates shall have
      the full force provided in the Warrant Certificates and in this
      Indenture.

	 	 	 
	 	(d) 	
      Upon the appointment of a successor Warrant Agent, the
      Corporation shall promptly notify the Warrantholders thereof in the manner
      provided for in Section 9.7 hereof.

8.9       
Acceptance of Trust

The Warrant Agent hereby accepts the trusts of this Indenture
and agrees to perform the same upon the terms and conditions herein set forth or
referred to unless and until discharged therefrom by resignation or in some
other lawful way. 

8.10      Conflict of
Interest

The Warrant Agent represents to the Corporation that at the
time of execution and delivery hereof no material conflict or interest exists in
the Warrant Agent's role as a fiduciary hereunder and agrees that in the event
of a material conflict of interest arising hereafter it will, within 90 days
after ascertaining that it has such a material conflict of interest, either
eliminate the same or resign its trusts hereunder to a successor Warrant Agent
approved by the Corporation. If any such material conflict of interests exists
or hereafter shall exist, the validity and enforceability of this Indenture and
the Warrants shall not be affected in any manner whatsoever by reason thereof.

30

8.11      Warrant Agent
Not Appointed Receiver

The Warrant Agent and any person related to the Warrant Agent
will not be appointed a receiver or receiver and manager or liquidator of all or
any part of the assets or undertaking of the Corporation. 

ARTICLE
9.              
GENERAL 

9.1       
Supplemental Indentures

From time to time the Warrant Agent and, when authorized by a
resolution of its directors, the Corporation may, and they shall when required
by this Indenture, execute, acknowledge and deliver by their proper officers
deeds or indentures supplemental hereto, which thereafter shall form part
hereof, for any one or more of the following purposes: 

	 	(a) 	
      making such provisions not inconsistent with this
      Indenture as may be necessary or desirable with respect to matters or
      questions arising hereunder, including the making of any modifications in
      the form of the Warrant Certificates which do not affect the substance
      thereof, provided that the Warrant Agent, relying on the advice of
      counsel, shall be of the opinion that such provisions and modifications
      are not prejudicial to the interests of the Warrant Holders;

	 	 	 
	 	(b) 	
      evidencing the succession, or successive successions, of
      other persons to the Corporation and the covenants of and obligations
      assumed by any such successor in accordance with the provisions of this
      Indenture;

	 	 	 
	 	(c) 	
      giving effect to any Extraordinary Resolution passed as
      provided in ARTICLE 7; and

	 	 	 
	 	(d) 	
      for any other purpose not inconsistent with the terms of
      this Indenture, provided that the Warrant Agent, relying on the advice of
      counsel, shall be of the opinion that such provisions and modifications
      are not prejudicial to the interests of the Warrant Holders.

	 	 	 
	 	(e) 	
      The Warrant Agent may also, without the consent or
      concurrence of the Warrant Holders, by supplemental indenture or
      otherwise, concur with the Corporation in making any changes or
      corrections in this Indenture which it shall have been advised by counsel
      in writing (who may, but need not be, counsel for the Corporation) are
      required for the purpose of curing or correcting any ambiguity or
      defective or inconsistent provisions or clerical omission or mistake or
      manifest error contained herein or in any deed or indenture supplemental
      or ancillary hereto or are required by law or in order to comply with the
      requirements of any stock exchange on which the Common Shares or the
      Warrants are, or are proposed to be, listed.

31

9.2       
Documents, Moneys, etc. Held by Warrant Agent

Unless herein otherwise expressly provided, any of the funds
held by the Warrant Agent may be deposited in a trust account in the name of the
Warrant Agent (which may be held with the Warrant Agent or an affiliate or
related party of the Warrant Agent), which account shall be non-interest
bearing. Upon the written direction of the Corporation, the Warrant Agent shall
invest in its name such funds in investments authorized by the Corporation in
such written direction. Any direction by the Corporation to the Warrant Agent as
to the investment of the funds shall be in writing and shall be provided to the
Warrant Agent no later than 9:00 a.m. on the day on which the investment is to
be made. Any such direction received by the Warrant Agent after 9:00 a.m. or
received on a non-Business Day shall be deemed to have been given prior to 9:00
a.m. on the next Business Day. 

9.3       
Cancellation of Warrant Certificates

All Warrant Certificates exchanged for other Warrant
Certificates as provided in Section 3.10 and all Warrant Certificates delivered
to the Warrant Agent as provided in Section 4.1 shall be cancelled and held in
storage and in due course destroyed by the Warrant Agent and, if required by the
Corporation in writing, the Warrant Agent shall furnish the Corporation with a
certificate as to the destruction. 

9.4       
Satisfaction and Discharge

Upon proof being given to the reasonable satisfaction of the
Warrant Agent that all the Warrants have been exercised, that all funds have
been deposited in accordance with Section 4.1(a) and that all funds have been
delivered to the Corporation, and in any event upon the Expiry Date, and upon
payment of all costs, charges and expenses properly incurred by the Warrant
Agent in relation to this Indenture and of all interest thereon and the
remuneration of the Warrant Agent, or upon provision satisfactory to the Warrant
Agent being made therefor, the Warrant Agent shall, at the request and at the
expense of the Corporation, execute and deliver to the Corporation such deeds or
other instruments as shall be requisite to evidence the satisfaction and
discharge of this Indenture and to release the Corporation from its covenants
herein contained except those relating to the indemnification of the Warrant
Agent. 

9.5        Notice
to the Corporation

Any notice to the Corporation under the provisions hereof shall
be valid and effective if delivered by hand, courier or facsimile to the
Corporation, to the attention of the President at #789 – 999 West Hastings
Street, Vancouver, British Columbia, V6C 2W2, facsimile 604-688-6260, and any
notice so delivered shall be deemed to be validly given when delivered so long
as delivery falls on a Business Day. The Corporation may from time to time
notify the Warrant Agent of a change in address which thereafter, until changed
by like notice, shall be the address of the Corporation for all purposes of this
Indenture. 

32

9.6        Notice
to the Warrant Agent

Any notice to the Warrant Agent under the provisions hereof
shall be valid and effective if delivered by hand, courier or facsimile to the
Warrant Agent, to the attention of the Senior Account Manager, at #1900 – 925
West Georgia Street, Vancouver, British Columbia, V6C 3L2, facsimile
604-484-8638, and any notice so delivered shall be deemed to be validly given
when delivered so long as delivery falls on a Business Day. The Warrant Agent
may from time to time notify the Corporation of a change in address which
thereafter, until changed by like notice, shall be the address of the Warrant
Agent for all purposes of this Indenture. 

9.7        Notice
to Warrant Holders

	 	(a) 	
      Unless herein otherwise expressly provided, a notice to
      be given hereunder to Warrant Holders will be deemed to be validly given
      if the notice is sent by mail, postage prepaid, addressed to the holders
      at their respective addresses appearing on any of the registers of Holders
      described in Section 3.13. Any notice so mailed shall be deemed to have
      been received on the fifth Business Day following the date of the postmark
      on such notice.

	 	 	 
	 		
      Accidental error or omission in giving notice or
      accidental failure to mail notice to any Holder will not invalidate any
      action or proceeding founded thereon.

	 	 	 
	 	(b) 	
      All notices may be given to whichever one of the Warrant
      Holders (if more than one) is named first in the appropriate register
      hereinbefore mentioned, and any notice so given shall be sufficient notice
      to all Warrant Holders of and any other persons (if any) interested in
      such Warrants.

9.8        Mail
Service Interruption

	 	(a) 	
      If by reason of any interruption of mail service, actual
      or threatened, any notice to be given to the Warrant Holders, the Warrant
      Agent or the Corporation would be unlikely to reach its destination in the
      ordinary course of mail, such notice shall be valid and effective only
      if:

	 	 	 	 
	 		(i) 	
      in the case of the Warrant Agent or the Corporation,
      delivered to an officer of the party to which it is addressed or if sent
      to such party, at the appropriate address in accordance with Section 9.6
      and 9.5, respectively, by telegram, facsimile or other means of prepaid
      transmitted or recorded communication; and

	 	 	 	 
	 		(ii) 	
      in the case of Warrant Holders, if published once (a) in
      the national edition of the Globe & Mail; and (b) in such other place
      or places and manner, if any, as the Warrant Agent may require.

	 	 	 	 
	 	(b) 	
      Any notice given to Warrant Holders by publication shall
      be deemed to have been given on the last day on which publication is
      required pursuant to Section 9.8(a)(ii), above.

33

9.9        Sole
Benefit of Parties and Warrant Holders

Nothing in this Indenture or the Warrant Certificates,
expressed or implied, will give or be construed to give any person other than
the parties hereto and the Warrant Holders, as the case may be, any legal or
equitable right, remedy or claim under this Indenture or the Warrant
Certificates, or under any covenant or provision herein or therein contained,
all such covenants and provisions being for the sole benefit of the parties
hereto and the Warrant Holders. 

9.10      Third Party
Interests 

The Corporation hereby represents to the Warrant Agent that any
account to be opened by, or interest to held by, the Warrant Agent in connection
with this Indenture, for or to the credit of such party, is not intended to be
used by or on behalf of any third party. 

9.11      Privacy
Matters 

The parties acknowledge that federal and/or provincial
legislation that addresses the protection of individuals' personal information
(collectively, "Privacy Laws") applies to obligations and activities under this
Indenture. Despite any other provision of this Indenture, neither party shall
take or direct any action that would contravene, or cause the other to
contravene, applicable Privacy Laws. The Corporation shall, prior to
transferring or causing to be transferred personal information to the Warrant
Agent, obtain and retain required consents of the relevant individuals to the
collection, use and disclosure of their personal information, or shall have
determined that such consents either have previously been given upon which the
parties can rely or are not required under the Privacy Laws. The Warrant Agent
shall use commercially reasonable efforts to ensure that its services hereunder
comply with Privacy Laws. Specifically, the Warrant Agent agrees: (a) to have a
designated chief privacy officer; (b) to maintain policies and procedures to
protect personal information and to receive and respond to any privacy complaint
or inquiry; (c) to use personal information solely for the purposes of providing
its services under or ancillary to this Indenture and not to use it for any
other purpose except with the consent of or direction from the Corporation or
the individual involved; (d) not to sell or otherwise improperly disclose
personal information to any third party; and (e) to employ administrative,
physical and technological safeguards to reasonably secure and protect personal
information against loss, theft, or unauthorized access, use or modification.

9.12    
 Counterparts

This Indenture may be executed in one or more counterparts,
each of which when so executed shall be deemed to be an original and such
counterparts together shall constitute one and the same instrument and,
notwithstanding their date of execution, shall be deemed to bear date as of the
date first above written. 

9.13      Time of
Essence

Time shall be of the essence of this Indenture and of the
Warrants issued hereunder. 

34

 

Schedule “A” 

Warrant Certificate 

(see attached)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00190-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00190-of-00352.parquet"}]]