Document:

Restrictive Covenant Agreement - Patrick M. Murphy

 Exhibit 10.6 
  
 RESTRICTIVE COVENANT AGREEMENT 
  
 THIS RESTRICTIVE COVENANT AGREEMENT (this “Agreement”) is made and entered into as of the
7th day of July, 2005, by and between Patrick M. Murphy (“Consultant”) and Zhone Technologies,
Inc., a Delaware Corporation (“Zhone”). 
  
 W I
T N E S S E T H: 
  
 WHEREAS, Zhone has entered into an
Agreement and Plan of Merger (the “Merger Agreement”) by and among Zhone, Parrot Acquisition Corp., a Delaware corporation and wholly owned subsidiary of Zhone (“Merger Sub”) and Paradyne Networks, Inc., a Delaware
corporation (“Paradyne”), dated as of the date hereof, pursuant to which Merger Sub will merge with and into Paradyne and Paradyne will become a wholly owned subsidiary of Zhone (the “Merger”); 
  
 WHEREAS, the Consultant holds shares of common stock and options to
purchase common stock of Paradyne and as a result of the Merger will become vested in the options and will receive consideration for the purchase of Paradyne from Zhone; 
  
 WHEREAS, concurrently with the execution of this Agreement, Consultant and Zhone have entered into a Consulting
Agreement dated as of the date hereof (the “Consulting Agreement”), but effective upon the Merger; and 
  
 WHEREAS, the execution and delivery of this Agreement are conditions precedent to the Consulting Agreement, as well as the Merger; 
  
 NOW, THEREFORE, for and in consideration of the mutual covenants and
agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by each of the parties hereto, the parties hereby agree as follows: 
  

	 	1.	Exposure to Proprietary Information. 

  
 (a) As used in this Agreement, “Proprietary Information” means all information of a business or technical nature that
relates to Zhone, Paradyne and/or their affiliates (the “Companies”) including, without limitation, all information about their businesses, clients, potential clients, marketing plans, advertising, contracts, potential contracts,
strategies, forecasts, pricing, methods, practices, techniques, business plans, financial plans, research, development, purchasing, accounting, know-how, technical data, processes, product development, and trade secrets (as defined by the Uniform
Trade Secrets Act, as amended), and any information regarding any client or customer of the Companies or any other information that the Companies are required to keep confidential. Notwithstanding the preceding sentence, the term “Proprietary
Information” does not include information that is or becomes publicly available through no fault of Consultant. 
  

 (b) Consultant acknowledges that the Proprietary Information constitutes a legitimate
protectable business interest of the Companies, and covenants and agrees that at all times he will not, directly or indirectly, disclose, furnish, make available or utilize any of the Proprietary Information, other than in the proper performance of
his duties for the Companies. Consultant’s obligations under this Section with respect to particular Proprietary Information will survive expiration or termination of his services as a Consultant and will terminate only at such time (if any) as
the Proprietary Information in question becomes generally known to the public other than through a breach of Consultant’s obligations under this Section. 
  

(c) Consultant acknowledges that all records, documents, and tangible embodiments containing Proprietary Information prepared by
Consultant or which came into his possession by virtue of his employment by Paradyne or consulting to the Companies are and will remain the property of the Companies. 
  
 (d) The parties acknowledge and agree that this Agreement is not intended to, and does not, alter any of the
Companies’ rights or Consultant’s obligations under any state or federal statutory or common law regarding trade secrets and unfair trade practices. 
  

2. Nonsolicitation of Clients. Consultant acknowledges and agrees that the relationship that the Companies have with their customers constitutes
a valuable asset of the Companies. Accordingly, Consultant agrees that during the Consulting Period (as defined in the Consulting Agreement) and for a period of two years thereafter (together with the Consulting Period, the “Restricted
Period”) he will not, directly or indirectly, call upon, solicit or otherwise contact any clients, customers or potential clients and customers of Paradyne with whom he had contact during the twelve months ending upon his termination of
employment with Paradyne or clients, customers or potential customers of the Companies with whom he had contact during the Consulting Period for the purpose of providing or selling DSLAMS and Broadband Loop Carriers to service providers in the telco
space inclusive of incumbent telcos and CLECS, as such terms are commonly used in the Companies’ industry. 
  
 3. Noncompetition. Consultant acknowledges and agrees that the Companies have a legitimate protectable interest in their customers and Proprietary
Information. Accordingly in order to protect the Companies interests in their customers and their Proprietary Information Consultant agrees that during the Restricted Period, he shall not, in any manner, directly or indirectly, individually or in
conjunction with any other individual, corporation, partnership, limited liability company or other entity (“Person”) or by assisting any other Person, engage in or have an equity or profit interest in, render services (of an
employee, marketing, manufacturing, research and development, administrative, financial, consulting or other nature) or lend money to, any Person that develops, manufactures or distributes broadband network access products, such as DSLAMS for
location in central offices and multi-dwelling units, as such terms are commonly used in the Companies’ industry (the “Business”), provided that Consultant shall not be deemed to be in violation of this Section 3 solely due to
(i) his ownership of any beneficial interest in one percent (1%) or less of any publicly held corporation whose stock is traded on a national securities exchange or in the over-the-counter market, or (ii) his providing services to the Companies
pursuant to the Consulting Agreement. 
  

 2 

 4. Nonsolicitation of Employees. During the Restricted Period, Consultant shall not solicit or
attempt to solicit (or assist others to solicit) for employment any person who is, or at any time prior to or during the Restricted Period was, an officer, manager, employee, or consultant of any of the Companies. Public advertisements shall not be
considered to be soliciting in breach of this Agreement. 
  
 5.
Compensation for Covenants. As compensation for Consultant’s agreements and covenants set forth in Sections 1-4 of this Agreement, Zhone shall pay Consultant Two Hundred Forty Thousand Dollars ($240,000) for each year of the Restricted
Period (the “Covenant Compensation”). 
  
 6.
Remedy for Breach. Any remedy at law for any breach of the provisions contained in this Agreement shall be inadequate and Consultant hereby consents to injunctive or other equitable relief and waives any requirement of a bond or other surety
in connection therewith. In addition and not in lieu of any other remedies available, as liquidated damages for any breach of this Agreement, Consultant agrees to repay to Zhone all of the Covenant Compensation paid to him during the period
Consultant was in breach of this Agreement and shall forfeit the right to any future Covenant Compensation. 
  
 7. Acknowledgments. Consultant acknowledges and agrees that: 
  
 (a) The restrictions and covenants contained herein, and the rights and remedies conferred upon Zhone and
the Companies, are necessary to protect the goodwill and other value of the Business and the benefits bargained for by Zhone under the Merger Agreement; and 
  
 (b) The restrictions placed upon Consultant hereunder are narrowly drawn, are fair and reasonable in time and territory and place no
greater restraint upon Consultant than is reasonably necessary to secure the goodwill and other value of the Business, and the benefits bargained for by Zhone under the Merger Agreement. 
  
 8. Severability. In the event a determination is made that any provision of this Agreement constitutes an
unreasonable or otherwise unenforceable restriction against Consultant, the provisions of this Agreement shall be rendered void only to the extent that such judicial or arbitral determination finds such provisions to be unreasonable or otherwise
unenforceable with respect to Consultant. In this regard, any authority construing this Agreement shall be empowered to sever any prohibited business activity or any time period from the coverage of this Agreement, to impose geographic or other
restrictions and to apply the provisions of this Agreement to the remaining business activities and the remaining time period not so severed. The time period during which the prohibitions set forth in this Agreement shall apply shall be tolled and
suspended for a period equal to the aggregate time during which Consultant violates such prohibitions in any respect. 
  
 9. Governing Law; Amendment. This Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of
Florida without regard to conflict of law principles that would result in the application of any law other the laws 

  

 3 

 
of the State of Florida. This Agreement may not be amended, modified or supplemented except by written agreement of the parties. 
  
 10. Arbitration. Notwithstanding anything herein to the contrary, in
the event that there shall be a dispute among the parties arising out of or relating to this Agreement, or the breach thereof, the parties agree that such dispute shall be resolved by final and binding arbitration administered by the American
Arbitration Association (the “AAA”), in accordance with AAA’s Employment ADR Rules. The arbitrator’s decision shall be final and binding upon the parties, and may be entered and enforced in any court of competent
jurisdiction by either of the parties. The arbitrator shall have the power to grant temporary, preliminary and permanent relief, including without limitation, injunctive relief and specific performance. Unless otherwise ordered by the arbitrator
pursuant to Section 10 of this Agreement, the arbitrator’s fees and expenses shall be paid equally by the parties. 
  
 11. Parties Bound by Agreement; Successors and Assigns. The terms, conditions and obligations of this Agreement shall inure to the benefit of and
be binding upon the parties hereto and Zhone’s respective successors and assigns. This Agreement is not assignable by Consultant but is freely assignable by Zhone. 
  
 12. Counterparts. This Agreement may be executed in any number of counterparts, all of which taken together shall
constitute one instrument and delivery of the executed counterparts may be effected by a facsimile or other electronic transmission. 
  
 IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed, as of the date first above written. 
  

			
	ZHONE TECHNOLOGIES, INC.
		
	By:	 	/s/    KIRK MISAKA        

			
	Name: 	 	Kirk Misaka

			
	Title: 	 	Chief Financial Officer
	
	CONSULTANT:
	
	/s/    PATRICK M.
MURPHY        
	Patrick M. Murphy

  

 4Supplemental Warrant Indenture

 Exhibit 10.55 
 THIS SUPPLEMENTAL WARRANT INDENTURE dated as of April 15, 2005. 
  

			
	 BETWEEN:
	  	 
		
	 	  	 PERU COPPER INC.,
 a corporation incorporated
under the laws of Canada

		
	 	  	(hereinafter called the “Company”)
		
	 AND
	  	 
		
	 	  	 COMPUTERSHARE TRUST COMPANY OF CANADA,
 a trust
company incorporated under the laws of Canada

		
	 	  	(hereinafter called the “Canadian Warrant Agent”)
		
	 AND
	  	 
	 	  	 COMPUTERSHARE TRUST COMPANY, INC.,
 a trust
company incorporated under the laws of the United States

		
	 	  	(hereinafter called the “US Warrant Agent”)

  
 WHEREAS the Company
and the Canadian Warrant Agent executed a Common Share Purchase Warrant Indenture (the “Indenture”) dated as of March 18, 2004, providing for the issuance of 4,285,716 Warrants (as defined in the Indenture), and a supplemental warrant
indenture (the “First Supplement”) dated as of September 21, 2004, providing for the issuance of up to 23,485,359 Warrants under the Indenture; 
  
 AND WHEREAS the Company appointed the US Warrant Agent as co-transfer agent in the United States by resolution of the board dated November 24, 2004 in
connection with the filing of an F-1 Registration Statement under the Securities Act of 1933 (the “Registration Statement”) with the United States Securities and Exchange Commission (the “SEC”) and the making of an
application to list the Company’s common shares and Warrants on the American Stock Exchange (the “AMEX”); 
  
 AND WHEREAS the Company’s Registration Statement was declared effective by the SEC on April 15, 2005 and the Company’s common shares and
Warrants were conditionally approved for listing on the AMEX on April 5, 2005; 
  
 AND WHEREAS the Company wishes to amend the Warrants in connection with the registration and listing of such Warrants in the United States, and 

 
section 7.1(f) of the Indenture provides for the creation of indentures supplemental for the purposes of adding to or amending the provisions of the
Indenture in respect of the transfer of Warrants, making provision for the exchange of Warrants and making any modification in the form of the Warrant Certificate that does not affect the substance thereof; 
  
 NOW THEREFORE THIS INDENTURE WITNESSES that for good and valuable
consideration mutually given and received, the receipt and sufficiency of which are hereby acknowledged, it is hereby agreed and declared as follows: 
  
 1. This supplemental Indenture (the “Second Supplement”) is supplemental to the Indenture, as supplemented by the First Supplement, and the Indenture
shall henceforth be read in conjunction with the First Supplement and this Second Supplement and all of the provisions of the Indenture, except only insofar as the same may be inconsistent with the express provisions hereof, shall apply and have the
same effect as if all the provisions of the Indenture, the First Supplement and the Second Supplement were contained in one instrument and the expressions used herein shall have the same meaning as is ascribed to the corresponding expressions in the
Indenture. 
  
 2. Section 1.1, Definitions, of the Indenture is hereby
amended to provided for the following revised definitions: 
  
 “‘Business Day’ means a day that is not a Saturday, Sunday, a day on which the banks are closed in the City of Toronto, Ontario, Canada or in the City of Golden, Colorado, United States, as applicable, or a civic or
statutory holiday in either city;” 
  
 “‘Warrant Agent’
means Computershare Trust Company of Canada, a trust company incorporated under the laws of Canada, or Computershare Trust Company, Inc., a trust company incorporated under the laws of the United States, as the context requires, and or lawful
successor thereto including through operation of section 8.8;” 
  
 “‘Warrant Certificates’ means the certificates representing the Warrants substantially in the form as may be approved by the Company and the Warrant Agent, from time to time, evidencing Warrants;” 
  
 3. Subsection 2.2(1) of the Indenture, under Form and Terms of Warrants, is hereby
amended to read as follows: 
  
 “(1) The Warrant
Certificates for the Warrants shall be substantially in the form as may be approved by the Company and the Warrant Agent from time to time, substantially in the form set out in Schedule “A” attached hereto, subject to the provisions of
this Indenture, with such additions, variations and changes as may be required or permitted by the terms of this Indenture, and which may from time to time be agreed upon by the Warrant Agent and the Company, and shall have such legends,
distinguishing letters and numbers as the Company may, with the approval of the Warrant Agent, prescribe. Except as hereinafter provided in this Article 2, all Warrants shall, save as to denominations, be of like tenor and effect. The Warrant
Certificates 

  

 - 2 - 

 
may be engraved, printed, lithographed, photocopied or be partially in one form or another, as the Company may determine. No change in the form of the
Warrant Certificate shall be required by reason of any adjustment made pursuant to this Article 2 in the number and/or class of securities or type of securities that may be acquired pursuant to the Warrants.” 
  
 4. Subsection 2.8(1) of the Indenture, under Registration and Transfer of Warrants, is
hereby amended to read as follows: 
  
 “(1) The Company will
cause to be kept by the Warrant Agent at the principal stock transfer office of the Warrant Agent in the City of Toronto, Ontario and in the City of Golden, Colorado:” 
  
 5. Subsection 2.8(5) of the Indenture, under Registration and Transfer of Warrants, is hereby deleted it its entirety. 
  
 6. Subsection 2.8(6) of the Indenture, under Registration and Transfer of Warrants, is
hereby amended to read as follows: 
  
 “(6) If a Warrant
Certificate tendered for transfer bears the legend set forth in section 2.20(2), the Warrant Agent shall register such transfer and issue a new Warrant Certificate which shall bear no such legend.” 
  
 7. Subsection 2.10(2) of the Indenture, under Exchange of Warrants, is hereby amended
to read as follows: 
  
 “(2) Warrant Certificates may be
exchanged only at the principal stock transfer office of the Warrant Agent in the cities of Toronto, Ontario or Golden Colorado, or at any other place that is designated by the Company with the approval of the Warrant Agent. Any Warrant Certificates
exchanged shall be surrendered to the Warrant Agent and cancelled.” 
  
 8.
Subsections 2.20(1) and 2.20(2) of the Indenture, under Legended Warrant Certificates, are hereby amended to read as follows: 
  
 “(1) The Warrant Agent understands and acknowledges that the Warrants and Common Shares issuable upon exercise of the Warrants have been registered
under the U.S. Securities Act. 
  
 (2) Each Warrant Certificate
originally issued to a U.S. Person, 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, and the certificates evidencing the Common Shares issued upon exercise of such Warrants and
all certificates issued in exchange therefor or in substitution thereof, bore the following legend: 
  
 ‘THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”). THESE SECURITIES MAY BE OFFERED, SOLD, 

  

 - 3 - 

 
PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO THE COMPANY, (B) OUTSIDE THE UNITED STATES IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE 1933 ACT, (C)
IN COMPLIANCE WITH THE EXEMPTION FROM THE REGISTRATION REQUIREMENTS UNDER THE 1933 ACT PROVIDED BY RULE 144 OR RULE 144A THEREUNDER, IF AVAILABLE, AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS, OR (D) IN A TRANSACTION THAT DOES NOT REQUIRE
REGISTRATION UNDER THE 1933 ACT OR ANY APPLICABLE STATE LAWS, AND THE HOLDER HAS, PRIOR TO SUCH SALE, FURNISHED TO THE COMPANY AN OPINION OF COUNSEL OR OTHER EVIDENCE OF EXEMPTION, IN EITHER CASE REASONABLY SATISFACTORY TO THE COMPANY. DELIVERY OF
THIS CERTIFICATE MAY NOT CONSTITUTE “GOOD DELIVERY” IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA. AT ANY TIME THE COMPANY IS A “FOREIGN ISSUER” AS DEFINED IN RULE 902 UNDER THE 1933 ACT, A NEW CERTIFICATE, BEARING
NO LEGEND, THE DELIVERY OF WHICH WILL CONSTITUTE “GOOD DELIVERY” MAY BE OBTAINED FROM THE COMPANY’S TRANSFER AGENT UPON DELIVERY OF THIS CERTIFICATE AND A DULY EXECUTED DECLARATION, IN FORM SATISFACTORY TO THE COMPANY AND THE
COMPANY’S TRANSFER AGENT TO THE EFFECT THAT THE SALE OF THE SECURITIES IS BEING MADE IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE 1933 ACT AT A TIME WHEN THE COMPANY IS A “FOREIGN ISSUER” AS DEFINED IN RULE 902 UNDER THE 1933
ACT.’ 
  
 which legend may now be removed upon delivery by the Warrantholder
to the Warrant Agent of the Warrant Certificate(s).” 
  
 9. Subsection
2.20(3) of the Indenture, under Legended Warrant Certificates, is hereby deleted in its entirety. 
  
 10. Subsections 3.1(1) and 3.1(2) of the Indenture, under Method of Exercise of Warrants, are amended to read as follows: 
  
 “(1) The registered holder of any Warrant may exercise the rights thereby conferred on him to acquire all or any part
of the Subject Securities to which such Warrant entitles the holder, by surrendering the Warrant Certificate representing such Warrants to the Warrant Agent at any time on or before the Time of Expiry at its principal stock transfer office in the
City of Toronto, Ontario or in the City of Golden, Colorado (or at such additional place or places as may be decided by the Company from time to time with the approval of the Warrant Agent), with (i) a duly completed and executed subscription of the
registered holder or his executors, or administrators or other legal representative or his attorney duly appointed by an instrument in writing in the form and manner satisfactory to the Warrant Agent, substantially in the form set out in Schedule
“A” attached hereto specifying the number of Common Shares subscribed for; and (ii) a certified cheque, bank draft or money order in lawful money of the United States, payable to or to the order of the Company in an amount equal to the
Exercise Price multiplied by the number of Subject Securities subscribed for. A Warrant Certificate with the duly completed and executed subscription and payment of the 

  

 - 4 - 

 
Exercise Price shall be deemed to be surrendered only upon personal delivery thereof to, or if sent by mail or other means of transmission upon actual
receipt thereof by, the Warrant Agent. 
  
 (2) Any subscription
referred to in subsection 3.1(1) shall be signed by the Warrantholder, shall specify the person(s) in whose name such Subject Securities are to be issued, the address(es) of such person(s) and the number of Subject Securities to be issued to each
person, if more than one is so specified. If any of the Subject Securities subscribed for are to be issued to a person(s) other than the Warrantholder, the signatures set out in the subscription referred to in subsection 3.1(1) shall be guaranteed
by a Canadian chartered bank, a Canadian trust company or by a medallion signature guaranteed from a member of a recognized Signature Medallion Guarantee Program, or by a similar entity in the United States, if this transfer is executed in the
United States, or in accordance with industry standards, and the Warrantholder shall pay to the Company all applicable transfer or similar taxes and the Company shall not be required to issue or deliver certificates evidencing Subject Securities
unless or until such Warrantholder shall have paid to the Company or the Warrant Agent on behalf of the Company the amount of such tax or shall have established to the satisfaction of the Company that such tax has been paid or that no tax is
due.” 
  
 11. Section 3.7, Prohibition on Exercise by U.S. Persons;
Exceptions, of the Indenture is hereby deleted in its entirety. 
  
 12.
Section 8.4, Securities, Documents and Monies Held by Warrant Agent, of the Indenture is hereby amended to read as follows: 
  
 “Any securities, documents of title, monies or other instruments that may at any time be held by the Warrant Agent subject to the trusts hereof may
be placed in the deposit vaults of the Warrant Agent or of any Schedule I Canadian chartered bank, or of a similar entity in the United States, if such transaction is being executed in the United States, for safekeeping with the Warrant Agent or any
such bank. All interest or other income received by the Warrant Agent in respect of such deposits and investments shall belong to the Company and shall be paid to the Company upon discharge of this Indenture.” 
  
 13. Subsection 9.1(1)(a) of the Indenture, under Notice to the Company and the Warrant
Agent, is hereby amended to read as follows: 
  
 “(a) If
to the Company, to” 
  
 Peru Copper Inc.

 475 West Georgia Street, Suite 920 
 Vancouver, British Columbia 
 V6B 4M9 
  
 Attention: Chief Executive Officer 
 Fax No.: (604) 688-0094 
  

 - 5 - 

 with a copy (which shall not constitute notice) to: 
  
 Cassels Brock & Blackwell LLP 
 Scotia Plaza, Suite 2100 
 40 King Street West 
 Toronto, Ontario M5H 3C2 
  
 Attention: Paul M. Stein 
 Fax No.: (416) 350-6949” 
  
 14. Schedule “A” and Schedule “B” attached to and forming part of the Indenture are hereby deleted in their entirety and replaced with a new Schedule
“A”, which shall read as follows: 
  
 “SCHEDULE ‘A’ 
  
 FORM OF
WARRANT CERTIFICATE 
  
 THE WARRANTS EVIDENCED HEREBY ARE EXERCISABLE ON OR
BEFORE 5:00 P.M. (TORONTO TIME) ON MARCH 18, 2006, AFTER WHICH TIME THE WARRANTS EVIDENCED HEREBY SHALL BE DEEMED TO BE VOID AND OF NO FURTHER FORCE OR EFFECT. 
  

					
	 Warrant Certificate No. W             
	  	 	  	Representing
                            
	 	  	 	  	Warrants to acquire Common Shares

  
 SHARE PURCHASE
WARRANTS 
  
 OF 
  
 PERU COPPER INC. 
  
 THIS CERTIFIES that, for value received, the registered holder hereof, (the
“holder”) is entitled at any time prior to 5:00 p.m. (Toronto time) on March 18, 2006, to subscribe for the number of Common Shares of the Company, specified above, by surrendering to Computershare Trust Company of Canada (the
“Warrant Agent”) at its principal stock transfer office in the City of Toronto, Ontario, or in the City of Golden, Colorado, this Warrant Certificate with a subscription in the form of the attached Subscription Form duly completed
and executed and accompanied by payment of US$2.00 per Common Share, subject to adjustment in certain events, (the “Exercise Price”) by certified cheque, bank draft or money order in lawful money of the United States payable to or
to the order of Peru Copper Inc. The holder of this Warrant Certificate may purchase less than the total number of Common Shares that he is entitled to purchase on the exercise of the Warrants represented by this certificate, in which event a new
Warrant Certificate representing the Warrants not then exercised will be issued to the holder. 
  

 - 6 - 

 Upon acceptance hereof the holder hereby expressly waives the right to receive any fractional Common
Shares, as the case may be, upon the exercise hereof in full or in part and further waives the right to receive any cash or other consideration in lieu thereof. The Warrants represented by this certificate shall be deemed to have been surrendered,
and payment by certified cheque, bank draft or money order shall be deemed to have been made only upon personal delivery thereof or, if sent by post or other means of transmission, upon actual receipt thereof by the Warrant Agent at its principal
stock transfer office in the City of Toronto, Ontario, or in the City of Golden, Colorado. 
  
 Upon due exercise of the Warrants represented by this Warrant Certificate and payment of the Exercise Price, the Company shall cause to be issued to the person(s) in whose name(s) the Common Shares so subscribed for
are to be issued (provided that if the Common Shares are to be issued to a person other than the registered holder of this Warrant Certificate, the holder’s signature on the Subscription Form herein shall be guaranteed by a Canadian chartered
bank, by a Canadian trust company by a medallion signature guarantee from a member of a recognized Signature Medallion Guarantee Program, or by a similar entity in the United States as applicable, and the holder shall pay to the Company or the
Warrant Agent all applicable transfer or similar taxes and the Company shall not be required to issue or deliver certificates evidencing the Common Shares, unless or until the holder shall have paid the Company or the Warrant Agent the amount of
such tax or shall have satisfied to the satisfaction of the Company that such tax has been paid or that no tax is due) the number of Common Shares to be issued to such person(s) and such person(s) shall become a holder in respect of such Common
Shares, as the case may be, with effect from the date of such exercise and upon due surrender of this Warrant Certificate the Warrant Agent shall issue a certificate(s) representing such Common Shares to be issued within five Business Days after the
exercise of the Warrants represented by this certificate. 
  
 This
Warrant Certificate represents Warrants issued or issuable under the provisions of the Warrant Indenture (which indenture together with all other instruments supplemental or ancillary thereto is herein referred to as the “Warrant
Indenture”) dated as of March 18, 2004 between the Company and the Warrant Agent, as Warrant Agent, which contains particulars of the rights of the holders of the Warrants and the Company and of the Warrant Agent in respect thereof and the
terms and conditions upon which the Warrants are issued and held, all to the same effect as if the provisions of the Warrant Indenture were herein set forth, to all of which the holder of this Warrant Certificate by acceptance hereof assents. A copy
of the Warrant Indenture will be available for inspection at the principal office of the Warrant Agent in the City of Toronto, Ontario and in the City of Golden, Colorado. Capitalized terms used in this Warrant Certificate and not otherwise defined
shall have the meanings ascribed thereto in the Warrant Indenture. 
  
 No transfer of any Warrant will be valid unless entered on the register of transfers, upon surrender to the Warrant Agent of the Warrant Certificate evidencing such Warrant, duly endorsed by, or accompanied by a written instrument of
transfer in form satisfactory to the Warrant Agent executed by the registered holder or his 

  

 - 7 - 

 
executors, administrators or other legal representatives or his or their attorney duly appointed by an instrument in writing in form and execution
satisfactory to the Warrant Agent. Subject to the provisions of the Warrant Indenture and upon compliance with the reasonable requirements of the Warrant Agent, Warrant Certificates may be exchanged for Warrant Certificates entitling the holder
thereof to acquire an equal aggregate number of Common Shares, subject to adjustment as provided for in the Warrant Indenture. The Company and the Warrant Agent may treat the registered holder of this Warrant Certificate for all purposes as the
absolute owner hereof. The holding of the Warrants represented by this Warrant Certificate shall not constitute the holder hereof a holder of Common Shares nor entitle him to any right or interest in respect thereof except as herein and in the
Warrant Indenture expressly provided. 
  
 The Warrant Indenture
provides for adjustment in the number of Common Shares to be delivered upon exercise of the right of purchase hereby granted and to the exercise price in certain events therein set forth. 
  
 The Warrant Indenture contains provisions making binding upon all holders of Warrants outstanding thereunder resolutions
passed at meetings of such holders held in accordance with such provisions and instruments in writing signed by Warrantholders holding a specified percentage of Warrants outstanding. 
  
 The Warrants and the Warrant Indenture shall be governed by and performed, construed and enforced in accordance with the
laws of the Province of Ontario and the federal laws applicable therein and shall be treated in all respects as Ontario contracts. Time shall be of the essence hereof and of the Warrant Indenture. 
  
 The Company may from time to time and at any time prior to 5:00 p.m. (Toronto
time) on March 18, 2006, purchase any of the Warrants by private agreement or otherwise on such terms and conditions and at such price as the Company may in its sole discretion determine. 
  
 This Warrant Certificate shall not be valid for any purpose until it has been certified by or on behalf of the Warrant Agent
for the time being under the Warrant Indenture. 
  
 IN WITNESS
WHEREOF the Company has caused this Warrant certificate to be signed by its duly authorized officer as of the              day of
            . 
  

			
	PERU COPPER INC.
		
	 By:
	 	  

	 	 	 Authorized Signing Officer

  

 - 8 - 

 This Warrant certificate represents Warrants referred to in the Warrant Indenture within mentioned. 
  
 Countersigned by: 
  

			
	COMPUTERSHARE TRUST COMPANY OF CANADA
		
	 By:
	 	  

	 	 	Authorized Signing Officer
	
	COMPUTERSHARE TRUST COMPANY, INC.
		
	 By:
	 	  

	 	 	Authorized Signing Officer
		
	 Date:
	 	  

  

 - 9 - 

 TRANSFER OF WARRANTS 
  
 FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto: 
  

	
	 
	(name)
	 
	(address)

  
                      of the Warrants registered in the name of the undersigned represented by the within certificate. 
  
 DATED this
             day of                     ,
                    . 
  

	
	 Signature of Warrantholder

	  

	 guaranteed by:

	  

	  

	 Authorized Signature Number

  
 NOTE: (1) The signature to this
transfer must correspond with the name as recorded on the Warrant certificate in every particular without alteration or enlargement or any change whatever. The signature of the person executing this transfer must be guaranteed by an authorized
officer of a Canadian chartered bank or of a major Canadian trust company or by a medallion signature guarantee from a member recognized under the Signature Medallion Guarantee Program or from a similar entity in the United States, if this transfer
is executed in the United States, or in accordance with industry standards. 
  
 Deliver to 
  
 In Canada: 
  
 Computershare Trust Company of Canada 
 100 University Avenue, 9th Floor

 Toronto, Ontario M5J 2Y1 
  
 Or, in the United States: 
  
 Computershare Trust Company, Inc. 
 350 Indiana Street, Suite 800 
 Golden, Colorado 80401 
  

 - 10 - 

 SUBSCRIPTION FORM 
  
 Deliver to : 
  
 In Canada: 
  
 Computershare Trust Company of Canada 
 100 University Avenue, 9th Floor 
 Toronto, Ontario M5J 2Y1 
  
 Attention: Corporate Actions 
  
 Or, in the United States: 
  
 Computershare Trust Company, Inc. 
 350 Indiana Street, Suite 800 
 Golden, Colorado 80401 
  
 The undersigned holder of the within Warrants hereby irrevocably subscribes
for              Common Shares of the Company, at the Exercise Price referred to in the attached Warrant Certificate on the terms and conditions set forth in such Warrant Certificate
and the Indenture and encloses herewith a certified cheque, bank draft or money order payable in United States dollars to the order of Peru Copper Inc. in payment in full of the subscription price for the Common Shares hereby subscribed for.

  
 The undersigned hereby irrevocably directs that the said
Common Shares be issued and delivered as follows: 
  

									
	Name(s) in Full	 	 	 	Address(es)	 	 	 	Number of Common Shares
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

  
 (Please print in full the name in
which certificates are to be issued. If any of the securities are to be issued to a person or persons other than the registered Warrantholder, the Transfer of Warrants Form must be completed, the Warrantholder must pay to the Warrant Agent any and
all exigible transfer taxes or other government charges and the signature of the holder must be guaranteed by a Canadian chartered bank, a Canadian trust company or by a medallion signature guarantee from a member of a recognized Signature Medallion
Guarantee Program, or by a similar entity in the United States, if this transfer is executed in the United States, or in accordance with industry standards. 
  

 - 11 - 

 DATED this              day of
                    ,
                    . 
  

			
	  

	 	  

	 Witness
	 	Signature of Registered Warrantholder
	  

	 	

	 Witness
	 	Name of Registered Warrantholder
	 	 	  

	 	 	Address of Registered Warrantholder
	 	 	  

	 	 	Social Insurance Number of Registered Warrantholder

  
 Please check box if
the certificates are to be delivered to the office where this Warrant Certificate is surrendered for pick up by the Warrantholder, failing which the certificates will be mailed to the address shown on the register. 
  
 (The Warrant Agent may require that the signature above be guaranteed, in
which event the following must be completed.) 
  

	
	 Signature of Warrantholder

	  

	 guaranteed by:

	  

	  

	 Authorized Signature Number

  
 NOTE: 
  
 1. If the signature of the person executing this form is to be guaranteed, it must be
guaranteed by an authorized officer of a Canadian chartered bank or of a major Canadian trust company or by a medallion signature guarantee from a member recognized under the Signature Medallion Guarantee Program or from a similar entity in the
United States, if this form is executed in the United States, or in accordance with industry standards.” 
  

 - 12 - 

 15. The Indenture shall be and continue to be in full force and effect, unamended, except as provided in the First
Supplement and as provided herein, and the Company hereby confirms the Indenture in all other respects. 
  
 16. This Second Supplement shall be governed by and construed in accordance with the laws of the Province of Ontario and shall be binding upon the parties hereto and their respective successors and assigns.

  
 IN WITNESS WHEREOF the parties hereto have executed
this Second Supplement under the hands of their proper officers in that behalf. 
  

			
	PERU COPPER INC.
		
	 By:
	 	 /S/    THOMAS J. FINDLEY

	 	 	Authorized Signing Officer
	
	COMPUTERSHARE TRUST COMPANY OF CANADA
		
	 By:
	 	 /S/    PATRICIA WAKELIN

	 	 	Authorized Signing Officer
		
	 By:
	 	 /S/    ELIZABETH MEALEY

	 	 	Authorized Signing Officer
	
	COMPUTERSHARE TRUST COMPANY, INC.
		
	 By:
	 	 /S/    JOHN WAHL

	 	 	Authorized Signing Officer
		
	 By:
	 	 /S/    KELLIE GWINN

	 	 	Authorized Signing Officer

  

 - 13 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}]]