Document:

Exhibit 10.03

 

EXECUTION COPY

 

In Canada, unless permitted
under securities legislation, the holder of this security must not trade the
security before the date that is 4 months and a day after the later of (i) September 2,
2010, and (ii) the date the issuer became a reporting issuer in any
province or territory.

 

These securities and the
securities issuable upon the conversion or exercise thereof have not been
registered under the United States Securities Act of 1933, as amended (the “1933
Act”) and may not be offered or sold except pursuant to an effective
registration statement under the 1933 Act, or pursuant to an exemption from the
registration requirements of the 1933 Act, or outside the United States in
accordance with Regulation S under the 1933 Act.

 

CONVERTIBLE GRID PROMISSORY
NOTE

 

	
  USD$750,000.00

  	
  DATE: SEPTEMBER 2, 2010

  

 

1.                                      Promise to Pay

 

FOR VALUE RECEIVED American Lithium Minerals, Inc.
(together with its successors, the “Borrower”)
unconditionally promises to pay to 2245393 Ontario Inc. (the “Lender”), its successors (including any successor by reason
of amalgamation) and assigns, or to its order in lawful money of the United
States of America, the amount of SEVEN HUNDRED AND FIFTY THOUSAND DOLLARS
($750,000.00) (the “Principal Amount”)
together with interest on the Principal Amount outstanding from time to time
under this promissory note (this “Note”), all as
recorded by the Lender on the grid attached hereto as Schedule 1 and, if
applicable, on any grids attached hereto as subsequently numbered Schedules
(collectively, the “Grid”). The
Principal Amount outstanding together with accrued and unpaid interest shall be
due and be paid on August 31, 2015 (the “Maturity
Date”). Capitalized terms used but not defined herein have the
meanings given in the Investment Agreement (as defined herein).

 

2.                                      Interest

 

The Principal Amount outstanding at any time
and from time to time shall bear interest from and including the date hereof to
but excluding the Maturity Date at the rate of 4% per annum (calculated on the
basis of a year of 365 days). Such interest shall be calculated and accrue
daily and shall be payable (without compounding) each and every six months in
arrears, with the first payment of interest due and payable on February 28,
2011.

 

Following the occurrence of an Event of
Default, the Principal Amount outstanding at any time and from time to time and
any accrued but unpaid interest shall bear interest at the rate equal to 12%
per annum (calculated on the basis of a year of 365 days).  Such interest shall accrue daily and shall be
payable on demand.

 

3.                                      Criminal Rate of Interest

 

In no event shall the aggregate “interest” (as
defined in Section 347 (the “Criminal Code Section”) of the Criminal Code (Canada), payable to the Lender under this
Note exceed the effective annual rate of interest lawfully permitted under the
Criminal Code Section.  Further, if any
payment, collection or demand pursuant to this Note in respect of such “interest”
is determined to be contrary to the provisions of the Criminal Code Section,
such payment, collection, or demand shall be deemed to have been made by mutual
mistake of the Lender and 

 

 

the Borrower and such “interest” shall be
deemed to have been adjusted with retroactive effect to the maximum amount or
rate of interest, as the case may be, as would not be so prohibited by law or
so result in the receipt by the Lender of interest at a rate not in
contravention of the Criminal Code Section.

 

4.                                      Interest Act (Canada)

 

Each interest rate which is calculated under
this Note on any basis other than a full calendar year (the “deemed interest
period”) is, for the purposes of the Interest Act
(Canada), equivalent to a yearly rate calculated by dividing such interest rate
by the actual number of days in the deemed interest period, then multiplying
such result by the actual number of days in the calendar year (365 or 366).

 

5.                                      Prepayment

 

The Borrower shall be entitled to prepay all or
any portion of the Principal Amount outstanding, provided that the Borrower has
first provided at least 30 days’ prior written notice to the Holder (as defined
below). For greater certainty, the Holder shall be entitled to elect to
exercise the right of conversion provided for in this Note during such 30-day
notice period. Any payments in respect of amounts due under this Note shall be
applied first in satisfaction of any accrued and unpaid interest, and then to
the Principal Amount outstanding.

 

6.                                      Conversion

 

The Lender may, at the Lender’s option,  at any time and from time to time prior to
the close of business of the Borrower on the fifth business day prior to the
Maturity Date, elect to convert, in whole or in part, the Principal Amount
outstanding and accrued but unpaid interest into common shares in the capital
of the Borrower (“Common Shares”).
Each Common Share so issued will for these purposes be valued based on a
conversion price of US$0.54 per Common Share (the “Conversion
Price”).

 

The Lender, or the current holder of this Note
(the “Holder”), shall give a minimum of five
business days prior written notice (“Notice of Conversion”)
to the Borrower at its address for purposes of notice under Section 13
together with the Conversion Form attached hereto as Schedule B exercising
the right to convert this Note in accordance with the provisions hereof.
Thereupon the Holder shall be entitled to be entered in the books of the
Borrower as at the date of conversion as the holder of the number of Common
Shares into which this Note (or the portion converted) is convertible in
accordance with the provisions of this Section and, as soon as practicable
thereafter and upon surrender of this Note to the Borrower, the Borrower shall
deliver to the Holder a certificate or certificates for such Common Shares.

 

If the Lender provides a Notice of Conversion
to the Borrower with respect to the conversion of a portion of the principal
amount outstanding under this Note, the Borrower shall issue to the Lender a
new convertible promissory note, having the same terms and conditions as this
Note, representing the principal amount of the Note not converted.

 

For the purposes of this Section, this Note
shall be deemed to be surrendered for conversion on the date (herein called “Conversion Date”) which is five business days following the
date on which Notice of Conversion is received by the Borrower, provided that
if this Note is 

 

2

 

surrendered for conversion on a day on which
the register of Common Shares is closed, the Holder shall become the holder of
record of such Common Shares as at the date on which such register is next
re-opened.

 

The Borrower shall not be required to issue
fractional Common Shares upon the exercise of any conversion right. In lieu of
fractional Common Shares, the number of Common Shares issuable on conversion
shall be rounded up or down, as the case may be, to the nearest whole Common
Share. For greater certainty, no cash payments shall be made by the Borrower in
lieu of issuing any fractional interest in a Common Share.

 

The Borrower covenants that it will issue and
deliver to the Lender certificates evidencing such number of Common Shares as
shall then be issuable upon the conversion of this Note or such portion of it
as is specified in the Notice of Conversion. 
The Borrower covenants that all Common Shares which shall be so issuable
shall be duly and validly issued as fully paid and non-assessable. The Borrower
acknowledges that such certificates may bear legends regarding applicable
restrictions on transfers of the Common Shares under applicable Canadian and
U.S. securities laws. The Borrower represents and warrants that a sufficient
number of Common Shares are authorized and have been reserved for issuance to
satisfy the Borrower’s obligations on conversion of the Note.

 

The Borrower shall not declare or pay dividends
in respect of the Common Shares following receipt by the Borrower of the Notice
of Conversion, until after the Conversion Date.

 

7.                                      Anti-Dilution Protection

 

(a)                                  Definitions:  For the purposes of this Section 7,
unless there is something in the subject matter or context inconsistent
therewith, the words and terms defined below shall have the respective meanings
specified therefor in this Section 7:

 

(i)                                   “Adjustment Period” means the period
commencing on the date of issue of the Note and ending at the Maturity Date;

 

(ii)                                “Current Market Price” of the Common
Shares at any date means the price per share equal to the weighted average
price at which the Common Shares have traded on the Over-the-Counter Bulletin
Board or such other stock exchange or over-the-counter market as may be
selected by the directors of the Borrower for such purpose during the period of
any twenty consecutive trading days ending not more than five business days
before such date; provided that the weighted average price shall be determined
by dividing the aggregate sale price of all Common Shares sold on the said
exchange or market, as the case may be, during the said twenty consecutive
trading days by the total number of Common Shares so sold; and provided further
that if the Common Shares are not then listed on any stock exchange or traded
in the over-the-counter market, then the Current Market Price shall be
determined by a firm of independent chartered accountants selected by the
directors of the Borrower;

 

(iii)                             “director” means a director of the
Borrower for the time being and, unless otherwise specified herein, a reference
to action “by the directors” means action 

 

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by
the directors of the Borrower as a board or, whenever empowered, action by the
executive committee of such board; and

 

(iv)                            “trading  day” with respect to a stock exchange or
over-the-counter market means a day on which such stock exchange or market is
open for business.

 

(b)                                 Adjustments:  Subject to Section 7(5), the Conversion
Price shall be subject to adjustment from time to time in the events and in the
manner provided as follows:

 

(i)                                     If at any time during the Adjustment Period the Borrower shall:

 

(A)                              fix a record date for the issue of, or issue, Common Shares to the
holders of all or substantially all of the outstanding Common Shares by way of
a stock dividend;

 

(B)                                fix a record date for the distribution to, or make a distribution to,
the holders of all or substantially all of the outstanding Common Shares
payable in Common Shares or securities exchangeable for or convertible into
Common Shares;

 

(C)                                subdivide the outstanding Common Shares into a greater number of Common
Shares; or

 

(D)                               consolidate the outstanding Common Shares into a smaller number of
Common Shares,

 

(any of such events in subsections (i), (ii), (iii) and
(iv) above being herein called a “Common
Share Reorganization”), the Conversion Price shall be adjusted on
the earlier of the record date on which holders of Common Shares are determined
for the purposes of the Common Share Reorganization and the effective date of
the Common Share Reorganization to the amount determined by multiplying the
Conversion Price in effect immediately prior to such record date or effective
date, as the case may be, by a fraction:

 

(1)                                  the numerator of which shall be the number of Common Shares outstanding
on such record date or effective date, as the case may be, before giving effect
to such Common Share Reorganization; and

 

(2)                                  the denominator of which shall be the number of Common Shares which will
be outstanding immediately after giving effect to such Common Share
Reorganization (including in the case of a distribution of securities
exchangeable for or convertible into Common Shares the number of Common Shares
that would have been outstanding had such securities been exchanged for or
converted into Common Shares on such date).

 

To the extent that any adjustment in the
Conversion Price occurs pursuant to this Section 7(b)(i) as a result
of the fixing by the Borrower of a record date for the 

 

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distribution of securities exchangeable for or
convertible into Common Shares, the Conversion Price shall be readjusted
immediately after the expiry of any relevant exchange or conversion right to
the Conversion Price which would then be in effect based upon the number of
Common Shares actually issued and remaining issuable after such expiry and
shall be further readjusted in such manner upon the expiry of any further such
right.

 

(ii)                                  If at any time during the Adjustment Period the Borrower shall fix a
record date for the issue or distribution to the holders of all or
substantially all of the outstanding Common Shares of rights, options or
warrants pursuant to which such holders are entitled, during a period expiring
not more than forty-five days after the record date for such issue (such period
being the “Rights Period”), to
subscribe for or purchase Common Shares or securities exchangeable for or
convertible into Common Shares at a price per share to the holder (or in the
case of securities exchangeable for or convertible into Common Shares, at an
exchange or conversion price per share) at the date of issue of such securities
of less than the Current Market Price of the Common Shares on such record date
(any of such events being called a “Rights
Offering”), the Conversion Price shall be adjusted effective
immediately after the record date for such Rights Offering to the amount
determined by multiplying the Conversion Price in effect on such record date by
a fraction:

 

(A)                              the numerator of which shall be the aggregate of

 

(1)                                  the number of Common Shares outstanding on the record date for the
Rights Offering, and

 

(2)                                  the quotient determined by dividing

 

A.                                   either (a) the product of the number of Common Shares offered
during the Rights Period pursuant to the Rights Offering and the price at which
such Common Shares are offered, or, (b) the product of the exchange or
conversion price of the securities so offered and the number of Common Shares
for or into which the securities offered pursuant to the Rights Offering may be
exchanged or converted, as the case may be, by

 

B.                                     the Current Market Price of the Common Shares as of the record date for
the Rights Offering; and

 

(B)                                the denominator of which shall be the aggregate of the number of Common
Shares outstanding on such record date and the number of Common Shares offered
pursuant to the Rights Offering (including in the case of the issue or
distribution of securities exchangeable for or convertible into Common Shares
the number of Common Shares for or into which such securities may be exchanged
or converted).

 

5

 

If by the terms of the rights, options, or
warrants referred to in this Section 7(b)(ii), there is more than one
purchase, conversion or exchange price per Common Share, 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, shall be calculated for purposes of the
adjustment on the basis of the lowest purchase, conversion or exchange price
per Common Share, as the case may be. 
Any Common Shares owned by or held for the account of the Borrower shall
be deemed not to be outstanding for the purpose of any such calculation.  To the extent that any adjustment in the
Conversion Price occurs pursuant to this Section 7(b)(ii) as a result
of the fixing by the Borrower of a record date for the issue or distribution of
rights, options or warrants referred to in this Section 7(b)(ii), the
Conversion Price shall be readjusted immediately after the expiry of any
relevant exchange, conversion or exercise right to the Conversion Price which
would then be in effect based upon the number of Common Shares actually issued
and remaining issuable after such expiry and shall be further readjusted in
such manner upon the expiry of any further such right.

 

(iii)                               If at any time during the Adjustment Period the Borrower shall fix a
record date for the issue or distribution to the holders of all or
substantially all of the outstanding Common Shares of:

 

(A)                              shares of the Borrower of any class other than Common Shares;

 

(B)                                rights, options or warrants to acquire Common Shares or securities
exchangeable for or convertible into Common Shares (other than rights, options
or warrants pursuant to which holders of Common Shares are entitled, during a
period expiring not more than forty-five days after the record date for such
issue, to subscribe for or purchase Common Shares or securities exchangeable
for or convertible into Common Shares at a price per share (or in the case of
securities exchangeable for or convertible into Common Shares at an exchange or
conversion price per share) at the date of issue of such securities to the
holder of at least the Current Market Price of the Common Shares on such record
date);

 

(C)                                evidences of indebtedness of the Borrower; or

 

(D)                               any property or assets of the Borrower;

 

and if such issue or distribution does not
constitute a Common Share Reorganization or a Rights Offering (any of such
non-excluded events being herein called a “Special
Distribution”), the Conversion Price shall be adjusted effective
immediately after the record date for the Special Distribution to the amount
determined by multiplying the Conversion Price in effect on the record date for
the Special Distribution by a fraction:

 

(1)                                  the numerator of which shall be the difference between

 

6

 

A.                                   the product of the number of Common Shares outstanding on such record
date and the Current Market Price of the Common Shares on such record date, and

 

B.                                     the fair value, as determined in good faith by the directors of the Borrower,
to the holders of Common Shares of the shares, rights, options, warrants,
evidences of indebtedness or property or assets to be issued or distributed in
the Special Distribution, and

 

(2)                                  the denominator of which shall be the product obtained by multiplying
the number of Common Shares outstanding on such record date by the Current
Market Price of the Common Shares on such record date.

 

Any Common Shares owned by or held for the
account of the Borrower shall be deemed not to be outstanding for the purpose
of such calculation.  To the extent that
any adjustment in the Conversion Price occurs pursuant to this Section 7(b)(iii) as
a result of the fixing by the Borrower of a record date for the issue or
distribution of rights, options or warrants to acquire Common Shares or
securities exchangeable for or convertible into Common Shares referred to in
this Section 7(b)(iii), the Conversion Price shall be readjusted
immediately after the expiry of any relevant exercise, exchange or conversion
right to the amount which would then be in effect based upon the number of
Common Shares issued and remaining issuable after such expiry and shall be
further readjusted in such manner upon the expiry of any further such right.

 

(iv)                              If at any time during the Adjustment Period there shall occur:

 

(A)                              a reclassification or redesignation of the Common Shares, any change of
the Common Shares into other shares or securities or any other capital
reorganization involving the Common Shares other than a Common Share
Reorganization;

 

(B)                                a consolidation, amalgamation, arrangement or merger of the Borrower
with or into another body corporate which results in a reclassification or
redesignation of the Common Shares or a change of the Common Shares into other
shares or securities;

 

(C)                                the transfer of the undertaking or assets of the Borrower as an entirety
or substantially as an entirety to another Company or entity;

 

(any of such events being called a “Capital Reorganization”), after the effective date of the
Capital Reorganization the Holder shall be entitled to receive, and shall
accept, for the same aggregate consideration, upon conversion of the Note, in
lieu of the number of Common Shares to which the Holder was theretofor entitled
upon the conversion of the Note, the kind and aggregate number of shares and
other securities or property 

 

7

 

resulting from the Capital Reorganization which
the Holder would have been entitled to receive as a result of the Capital
Reorganization if, on the effective date thereof, the Holder had been the
registered holder of the number of Common Shares which the Holder was
theretofore entitled to purchase or receive upon the conversion of the
Note.  If necessary, as a result of any
such Capital Reorganization, appropriate adjustments shall be made in the
application of the provisions of this Note with respect to the rights and
interests thereafter of the Holder to the end that the provisions shall
thereafter correspondingly be made applicable as nearly as may reasonably be
possible in relation to any shares or other securities or property thereafter
deliverable upon the conversion of the Note.

 

(v)                                 If at any time during the Adjustment Period any adjustment or
readjustment in the Conversion Price shall occur pursuant to the provisions of
Sections 7(b)(i), (ii), or (iii) of this Note, then the number of Common
Shares purchasable upon the subsequent conversion of the Note shall be
simultaneously adjusted or readjusted, as the case may be, by multiplying the
number of Common Shares issuable on conversion of the Note immediately prior to
such adjustment or readjustment by a fraction which shall be the reciprocal of
the fraction used in the adjustment or readjustment of the Conversion Price.

 

(c)                                  Rules:  Subject to Section 7(d), the following rules and
procedures shall be applicable to adjustments made pursuant to this Section 7:

 

(i)                                     Subject to the following sections of this Section 7(c), any
adjustment made pursuant to Section 7 shall be made successively whenever
an event referred to therein shall occur.

 

(ii)                                  No adjustment in the Conversion Price shall be required unless such
adjustment would result in a change of at least one per cent in the then
Conversion Price; provided, however, that any adjustments which except for the
provision of this subsection (ii) would otherwise have been required to be
made shall be carried forward and taken into account in any subsequent
adjustment.  Notwithstanding any other
provision of Section 7, no adjustment of the Conversion Price shall be
made which would result in an increase in the Conversion Price (except in
respect of a consolidation of the outstanding Common Shares).

 

(iii)                               If at any time during the Adjustment Period the Borrower shall take any
action affecting the Common Shares, other than an action or event described in Section 7,
which in the opinion of the directors would have a material adverse effect upon
the rights of the Holder, the Conversion Price shall, subject to any necessary
regulatory approval, be adjusted in such manner and at such time as the
directors may determine to be equitable in the circumstances, provided that no
such action shall be taken unless and until the Holder has been provided with
notice of such proposed action and the consequences thereof.

 

(iv)                              If the Borrower sets a record date to determine holders of Common Shares
for the purpose of entitling such holders to receive any dividend or
distribution or any subscription or purchase rights and shall thereafter and
before the distribution to 

 

8

 

such
holders of any such dividend, distribution or subscription or purchase rights
legally abandon its plan to pay or deliver such dividend, distribution or
subscription or purchase rights, then no adjustment in the Conversion Price
shall be required by reason of the setting of such record date.

 

(v)                                 No adjustment in the Conversion Price shall be made in respect of any
event described in Section 7 if the Holder is entitled to participate in
such event on the same terms mutatis mutandis
as if the Holder had converted the Note prior to or on the record date or
effective date, as the case may be, of such event. Any such participation by
the Holder is subject to regulatory approval.

 

(vi)                              In any case in which this Note shall require that an adjustment shall
become effective immediately after a record date for an event referred to in Section 7
hereof, the Borrower may defer, until the occurrence of such event:

 

(A)                              issuing to the Holder, to the extent that the Note is converted after
such record date and before the occurrence of such event, the additional Common
Shares issuable upon such exercise by reason of the adjustment required by such
event; and

 

(B)                                delivering to the Holder any distribution declared with respect to such
additional Common Shares after such record date and before such event;

 

provided, however, that the Borrower shall
deliver to the Holder an appropriate instrument evidencing the right of the
Holder upon the occurrence of the event requiring the adjustment, to an
adjustment in the Conversion Price or the number of Common Shares purchasable
upon the conversion of the Note and to such distribution declared with respect
to any such additional Common Shares issuable on the conversion of the Note.

 

(d)                                 Notice:  Subject to Section 7(e), at least 21
days prior to the earlier of the record date or effective date of any event
which requires or might require an adjustment in any of the rights of the
Holder under this Note, including the Conversion Price, the Borrower shall
deliver to the Holder a certificate of the Borrower specifying the particulars
of such event and, if determinable, the required adjustment and the calculation
of such adjustment.  In case any
adjustment for which a notice in this Section 7(d) has been given is
not then determinable, the Borrower shall promptly after such adjustment is
determinable deliver to the Holder a certificate providing the calculation of
such adjustment.  The Borrower hereby
covenants and agrees that the register of transfers and share transfer books
for the Common Shares will be open, and that the Borrower will not take any
action which might deprive the Holder of the opportunity of exercising the
rights of conversion contained in this Note, during such 21 day period.

 

(e)                                  Board Discretion:
Notwithstanding any of the foregoing provisions of this Section 7, the
board of directors of the Borrower may, subject to any required regulatory
approval, vary the procedures described in this Section 7 if it determines
in good faith having regard to the intentions underlying these provisions that
such procedures would yield an unintended result, provided that such varied
procedures are not prejudicial to the interests

 

9

 

of the Holder, and the Holder is provided with notice of such proposed
variation and the consequences thereof.

 

8.                                      Covenants

 

(i)                                     Corporate Existence. The Borrower shall do or cause to be done all things
necessary to preserve and keep in full force and effect its corporate
existence. The Borrower shall cause each of its subsidiaries to preserve and
keep in full force and effect its corporate, partnership or other existence, in
each case, except as would not otherwise have a material adverse effect on the
business, assets, operations, condition, financial or otherwise, of the
Borrower and its subsidiaries, taken as a whole.

 

(ii)                                  Ranking. The Borrower shall not permit any of its subsidiaries
to guarantee or otherwise be liable for, directly or indirectly, any
indebtedness for borrowed money unless such subsidiary shall provide a
guarantee of the obligations of the Borrower hereunder. The Borrower shall not
and shall not permit any of its subsidiaries to, directly or indirectly,
create, incur, assume or suffer to exist any lien that secures obligations
under any indebtedness for borrowed money (including any guarantee in respect
thereof) unless the obligations of the Borrower hereunder (and the obligations
of any subsidiary under any guarantee provided in connection herewith) rank in
subordination to this Note.

 

(iii)                               Fundamental Changes. The Borrower shall not, and shall not permit any of
its subsidiaries to, enter into any transaction whereby all or substantially
all of the assets of the Borrower and its subsidiaries (determined on a
consolidated basis) would become the property of any other person (whether by
way of reorganization, merger, amalgamation, arrangement, consolidation,
transfer, sale or otherwise).

 

9.                                      Events of Default

 

All amounts due under this Note shall
immediately become due and payable without any notice, presentation, demand,
protest or other action or notice to the Borrower if any one or more of the
following events of default (an “Event of Default”)
has occurred and is continuing:

 

(i)                                     the Borrower fails to make payment when due of the Principal Amount
outstanding or of any accrued interest when due;

 

(ii)                                  any representation and warranty of the Borrower in the investment
agreement dated September 2, 2010 between the Borrower and the Lender (as
amended from time to time, the “Investment Agreement”)
or in any Collateral Document shall be inaccurate in any material respect when
made or deemed to be made;

 

(iii)                               the Borrower shall fail to perform, observe or comply with, in any
material respect, any of its covenants herein or in the Investment Agreement or
in the Collateral Documents;

 

(iv)                              the agreements contained in Section 6.4 of the Investment Agreement
shall not have been fully satisfied and performed on or before the dates
specified in such agreements;

 

10

 

(v)                                 the Borrower shall fail to perform, observe or comply with any of its
covenants contained in Section 8.6 of the Investment Agreement;

 

(vi)                              any Collateral Document after delivery thereof shall for any reason
(other than pursuant to, and in accordance with, the terms thereof) cease to
create a valid and perfected first priority lien on and security interest in
the collateral purported to be covered thereby;

 

(vii)                           the Borrower (i) becomes insolvent or generally not able to pay its
debts as they become due, (ii) admits in writing its inability to pay its
debts generally or makes a general assignment for the benefit of creditors, (iii) institutes
or has instituted against it any proceeding seeking (x) to adjudicate it a
bankrupt or insolvent, (y) liquidation, winding-up, reorganization,
arrangement, adjustment, protection, relief or composition of it or its debts
under any law relating to bankruptcy, insolvency, reorganization or relief of
debtors including any plan of compromise or arrangement or other corporate
proceeding involving its creditors, or (z) the entry of an order for
relief or the appointment of a receiver, trustee or other similar official for
it or for any substantial part of its properties and assets, and in the case of
any such proceeding or order instituted against it (but not instituted by it),
either the proceeding remains undismissed or unstayed for a period of 45 days,
or any of the actions sought in such proceeding (including the entry of an
order for relief against it or the appointment of a receiver, trustee,
custodian or other similar official for it or for any substantial part of its
assets) occurs, or (iv) takes any corporate action to authorize any of the
above actions.

 

10.                               Grid Notations

 

The undersigned agrees that the entries by the
Lender on the Grid of advances and payments shall be prima facie proof of the
matters so recorded. The failure to record any amount on the Grid, however,
shall not limit the obligation of the Borrower to repay the principal amount of
the advances under this Note together with any and all interest accruing
thereon or limit the right of the Lender to recover any amount due and payable
hereunder.

 

11.                               Application of Payments

 

Any payments in respect of amounts due under
this Note shall be applied first in satisfaction of any accrued and unpaid
interest, and then to the Principal Amount outstanding.

 

12.                               Waiver by the Borrower

 

The Borrower waives demand, presentment for
payment, notice of non-payment, notice of dishonour, notice of acceleration,
and notice of protest of this Note.

 

13.                               No Waiver by the Lender

 

Neither the extension of time for making any
payment which is due and payable under this Note at any time or times, nor the
failure, delay, or omission of the Lender to exercise or enforce any 

 

11

 

of its rights or remedies under this Note,
shall constitute a waiver by the Lender of its right to enforce any such rights
and remedies subsequently.  The single or
partial exercise of any such right or remedy shall not preclude the Lender’s
further exercise of such right or remedy or any other right or remedy.

 

14.                               Transfer

 

This Note, including all rights and obligations
associated hereunder, shall be transferable at the Holder’s option, in whole or
in part, subject to applicable securities law; provided that the Borrower shall
not be liable for any additional costs that may be associated or incurred in
connection with the transfer, including without limitation any withholding
taxes.

 

Not later than 5 business days after notice to
the Borrower from the Holder of its intention to make such transfer or exchange
is received by the Borrower and without expense to the Holder, except for any
transfer or similar tax which may be imposed on the transfer or exchange, the
Borrower shall issue in exchange therefor another note or notes for the same
aggregate principal amount as the unpaid principal amount of this Note so
surrendered, having the same maturity and rate of interest, containing the same
provisions and subject to the same terms and conditions as this Note so
surrendered. If the Holder proposes to transfer this Note in part, the Borrower
shall issue a note or notes for the aggregate principal amount to be
transferred, on the same basis noted in the preceding sentence, and issue a
replacement note for the part not transferred to the Holder. Each new Note
shall be made payable to such person or persons, or transferees, as the holder
of such surrendered Note may designate, and such transfer or exchange shall be
made in such a manner that no gain or loss of principal or interest shall
result therefrom. The Borrower may elect not to permit a transfer of this Note
if it has not obtained reasonable assurances that such transfer is exempt from
the prospectus and registration requirements under applicable securities law.

 

15.                               Notices

 

Any notice or other communication that is
required or permitted to be given pursuant to this Note shall be in writing and
will be validly given if delivered in person (including by courier service) or
transmitted by electronic delivery as follows:

 

	
  if to the Lender:

  	
  2245393 Ontario Inc.

  c/o Osler, Hoskin & Harcourt LLP

  Suite 6100, 1 First Canadian Place

  Toronto, ON M5X 1B8

  
	
   

  	
   

  	
   

  
	
   

  	
  Attention:

  	
  Emmanuel Pressman

  
	
   

  	
  Fax:

  	
  (416) 862-6666

  
	
   

  	
  E-mail:

  	
  epressman@osler.com

  

 

12

 

	
  if to the Borrower:

  	
  American Lithium Minerals, Inc.

  2850 W. Horizon Ridge Parkway, Suite 200

  Henderson, NV 89052

  
	
   

  	
   

  
	
   

  	
  Attention:

  	
  Hugh Aird

  
	
   

  	
  Fax:

  	
  (702) 430-4507

  
	
   

  	
  E-mail:

  	
  haird@americanlithium.com

  

 

Any such notice or other communication will be
deemed to have been given and received on the day on which it was delivered or
transmitted by electronic delivery (or, if such day is not a Business Day, on
the next following Business Day). Any party may at any time change its address
for service from time to time by giving notice to the other parties in
accordance with this Section.  For the
purposes of this Note, “Business Day”
means any day, other than a Saturday or Sunday, on which banks in Toronto,
Ontario are open for commercial banking business during normal banking hours.

 

16.                               Governing Law and Successors

 

This Note is made under and shall be governed
by and construed in accordance with the laws of the Province of Ontario and the
federal laws of Canada applicable in the Province of Ontario, and shall enure
to the benefit of the Lender and its successors (including any successor by
reason of amalgamation) and assigns, and shall be binding on the Borrower and
its successors (including any successor by reason of amalgamation) and
permitted assigns.

 

[Signature Page Follows]

 

13

 

	
   

  	
   

  	
  AMERICAN LITHIUM
  MINERALS, INC.,

  as Borrower

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

 

Acknowledged and agreed this 2nd day of
September, 2010.

 

	
   

  	
   

  	
  2245393 ONTARIO INC., as Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

 

SCHEDULE NO. 1 TO THE CONVERTIBLE
GRID PROMISSORY NOTE OF AMERICAL LITHIUM MINERALS, INC. TO 2245393 ONTARIO
INC.

 

DATED September 2, 2010

 

ADVANCES AND PAYMENT

 

	
  DATE

  	
   

  	
  AMOUNT

  ADVANCED

  	
   

  	
  AMOUNT PAID

  	
   

  	
  TOTAL PRINCIPAL

  OUTSTANDING

  	
   

  	
  NOTATION

  MADE BY

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  09/02/2010

  	
   

  	
  US$

  	
  500,000

  	
   

  	
  —

  	
   

  	
  US$

  	
  500,000

  	
   

  	
   

  	
   

  
												

 

 

SCHEDULE A

 

ASSIGNMENT FORM

 

TO:                                                  American Lithium Minerals, Inc.
(the “Borrower”)

 

FOR VALUE RECEIVED, the undersigned hereby
sells, assigns and transfers to the following person all rights of the
undersigned pursuant to the convertible grid promissory note issued by the
Borrower dated September 2, 2010.

 

 

Name of Assignee:

 

 

Address:

 

 

 

and the undersigned hereby irrevocably
constitutes and appoints such assignee to be the lawful attorney of the
undersigned to transfer such rights to the Note on the books of the Borrower,
with full power of substitution.

 

The undersigned hereby certifies that the
transfer of these securities is not being made in any public offering and: (a) that
the transferee is an “accredited investor”, as such term is defined in Rule 501(a) of
the United States Securities Act of 1933,
as amended, and (b) that such transferee is an “accredited investor” as
such term is defined in National Instrument 45-106 — Prospectus and
Registration Exemptions of the Canadian Securities Administrators and
specifically represents and warrants that one or more of the categories set out
in such National Instrument correctly, and in all respects, describes the
transferee.

 

	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title (if applicable):

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  

 

 

SCHEDULE B

 

CONVERSION FORM

 

TO:                 American Lithium Minerals, Inc.
(the “Borrower”)

 

The undersigned hereby irrevocably elects to
convert into common shares of the Borrower as defined in and in accordance with
the terms of said Note (check one):

 

o                               all of the Principal Amount
outstanding, together with any accrued but unpaid interest; or

 

o                               all accrued but unpaid
interest, together with US$                           principal
amount of the Note.  The Borrower shall
issue and deliver to the undersigned a note representing the balance of the
principal amount as promptly as practicable.

 

 

DATED at
                                    
this            day of
                          ,
            .

 

 

	
   

  	
  Per:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:Exhibit 10.04

 

EXECUTION COPY

 

In Canada, unless permitted
under securities legislation, the holder of this security must not trade the
security before the date that is 4 months and a day after the later of (i) September 2,
2010, and (ii) the date the issuer became a reporting issuer in any
province or territory.

 

These securities and the
securities issuable upon the conversion or exercise thereof have not been
registered under the United States Securities Act of 1933, as amended (the “1933
Act”) and may not be offered or sold except pursuant to an effective
registration statement under the 1933 Act, or pursuant to an exemption from the
registration requirements of the 1933 Act, or outside the United States in
accordance with Regulation S under the 1933 Act.

 

WARRANTS TO PURCHASE COMMON SHARES OF

AMERICAN LITHIUM MINERALS, INC.

 

	
  Warrant Certificate Number:

  	
   

  	
  Number
  of Warrants:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2010-1

  	
   

  	
  1,388,889

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  September
  2, 2010

  	
   

  

 

THIS CERTIFIES THAT,
for value received, 2245393 Ontario Inc. (the “Holder”)
is entitled, at any time prior to the Expiry Time (as hereinafter defined), to
purchase at the Exercise Price (as hereinafter defined) one fully paid, validly
issued and non-assessable Common Share (as hereinafter defined) in the capital
of American Lithium Minerals, Inc. (the “Company”),
a company existing under the laws of the State of Nevada, for each whole
Warrant (as hereinafter defined) represented by this certificate or by a
replacement certificate, by surrendering to the Company at its principal office
at 2850 W. Horizon Ridge Parkway, Suite 200, Henderson, NV  89052, this Warrant together with a
Subscription Form (as hereinafter defined), duly completed and executed
and cash or a certified cheque, money order or bank draft payable to or to the
order of the Company for an amount equal to the Exercise Price multiplied by
the number of Common Shares subscribed for, on and subject to the terms and
conditions set out below.

 

Nothing contained
herein shall confer any right upon the Holder to subscribe for or purchase any
shares of the Company at any time after the Expiry Time, and from and after the
Expiry Time these Warrants and all rights hereunder shall be void and of no
value.

 

1.             Defined
Terms

 

When used herein,
the following terms shall have the following meanings, respectively:

 

“Common Shares” means the common shares in the capital stock
of the Company, with a par value of US$0.001 per Common Share.

 

“Exercise Price” means US$0.54 per Common
Share.

 

“Expiry Time” means 5:00 p.m.
(Toronto time) on  September 2, 2011.

 

“Subscription Form” means the form of
subscription annexed hereto as Schedule “A”.

 

“Warrant” means the Common Share purchase warrants
represented by this Warrant Certificate.

 

 

2.             Exercise
of Warrants

 

The rights
represented by this Warrant may be exercised by the Holder hereof, in whole or
in part (but not as to a fractional Common Share), by the surrender of this
Warrant Certificate, with the attached Subscription Form duly executed, at
the principal office of the Company at 2850 W. Horizon Ridge Parkway, Suite 200,
Henderson, NV  89052 (or such other
office of the Company as it may designate by notice in writing to the Holder
hereof at the address of such Holder appearing on the books of the Company at
any time during the period within which the rights represented by this Warrant
Certificate may be exercised) and upon payment to it for the account of the
Company, in cash or a certified cheque, money order or bank draft, of the
purchase price for such Common Shares. 
The Company agrees that the Common Shares so purchased shall be and be
deemed to be issued to the Holder hereof as the registered owner of such Common
Shares as of the close of business on the date on which this Warrant
Certificate shall have been surrendered and payment made for such Common Shares
as aforesaid.  Certificates for the
Common Shares so purchased shall be delivered to the Holder hereof within a
reasonable time, not exceeding three business days, after the rights
represented by this Warrant Certificate shall have been so exercised and,
unless this Warrant has expired, a new Warrant Certificate representing the
number of Common Shares, if any, with respect to which this Warrant shall not
then have been exercised shall also be issued to the Holder hereof within such
time.

 

3.             Ability
to Exercise

 

The Warrants may be
exercised in whole or in part at any time prior to the Expiry Time. In the
event that the Holder subscribes for and purchases any such lesser number of
Common Shares prior to the Expiry Time, the Holder shall be entitled to receive
a replacement Warrant Certificate, without charge, representing the unexercised
balance of the Warrants. After the Expiry Time, all rights under any
outstanding Warrants evidenced hereby, in respect of which the rights of
subscription and purchase herein provided for shall not have been exercised,
shall wholly cease and terminate and such Warrants shall be void and of no
value or effect.

 

4.             No
Fractional Common Shares

 

No fractional Common
Shares will be issuable upon any exercise of the Warrants and the Holder will
not be entitled to any cash payment or compensation in lieu of a fractional
Common Share.

 

5.             Not a
Shareholder

 

The holding of the
Warrants shall not constitute the Holder a shareholder of the Company nor
entitle the Holder to any right or interest in respect thereof, except as
expressly provided in this Warrant Certificate.

 

6.             Covenants
and Representations of the Company

 

The Company hereby
agrees as follows:

 

(a)           All Common Shares which may
be issued upon the exercise of the rights represented by this Warrant will,
upon issuance, be validly issued, fully paid and non-assessable, free from all
taxes, liens and charges with respect to the issue thereof, except with respect
to any applicable withholding taxes.

 

(b)           During the period within
which the rights represented by this Warrant may be exercised, the Company will
at all times have authorized and reserved a sufficient number of its Common
Shares to provide for the exercise of the rights represented by this Warrant.

 

2

 

(c)           This Warrant Certificate is
a valid and binding obligation of the Company, enforceable against the Company
in accordance with its terms.

 

7.             Anti-Dilution
Protection

 

(1)           Definitions:  For the purposes of this Section 7,
unless there is something in the subject matter or context inconsistent
therewith, the words and terms defined below shall have the respective meanings
specified therefor in this Section 7:

 

(a)           “Adjustment
Period” means the period commencing on the date of issue of the
Warrants and ending at the Expiry Time;

 

(b)           “Current
Market Price” of the Common Shares at any date means the price per
share equal to the weighted average price at which the Common Shares have
traded on the Over-the-Counter Bulletin Board or such other stock exchange or
over-the-counter market as may be selected by the directors of the Company for
such purpose during the period of any twenty consecutive trading days ending
not more than five business days before such date; provided that the weighted
average price shall be determined by dividing the aggregate sale price of all
Common Shares sold on the said exchange or market, as the case may be, during
the said twenty consecutive trading days by the total number of Common Shares
so sold; and provided further that if the Common Shares are not then listed on
any stock exchange or traded in the over-the-counter market, then the Current
Market Price shall be determined by a firm of independent chartered accountants
selected by the directors of the Company;

 

(c)           “director”
means a director of the Company for the time being and, unless otherwise
specified herein, a reference to action “by the directors” means action by the
directors of the Company as a board or, whenever empowered, action by the
executive committee of such board; and

 

(d)           “trading  day” with
respect to a stock exchange or over-the-counter market means a day on which
such stock exchange or market is open for business.

 

(2)           Adjustments:  Subject to Section 7(5), the Exercise
Price and the number of Common Shares issuable to the Holder upon the exercise
of the Warrants shall be subject to adjustment from time to time in the events
and in the manner provided as follows:

 

(a)           If at any time during the
Adjustment Period the Company shall:

 

(i)            fix a record date for the
issue of, or issue, Common Shares to the holders of all or substantially all of
the outstanding Common Shares by way of a stock dividend;

 

(ii)           fix a record date for the
distribution to, or make a distribution to, the holders of all or substantially
all of the outstanding Common Shares payable in Common Shares or securities
exchangeable for or convertible into Common Shares;

 

(iii)          subdivide the outstanding
Common Shares into a greater number of Common Shares; or

 

(iv)          consolidate the outstanding
Common Shares into a smaller number of Common Shares,

 

3

 

(any of such events
in subsections (i), (ii), (iii) and (iv) above being herein called a “Common Share Reorganization”), the Exercise
Price shall be adjusted on the earlier of the record date on which holders of
Common Shares are determined for the purposes of the Common Share
Reorganization and the effective date of the Common Share Reorganization to the
amount determined by multiplying the Exercise Price in effect immediately prior
to such record date or effective date, as the case may be, by a fraction:

 

(A)          the numerator of which
shall be the number of Common Shares outstanding on such record date or
effective date, as the case may be, before giving effect to such Common Share
Reorganization; and

 

(B)           the denominator of which
shall be the number of Common Shares which will be outstanding immediately
after giving effect to such Common Share Reorganization (including in the case
of a distribution of securities exchangeable for or convertible into Common
Shares the number of Common Shares that would have been outstanding had such
securities been exchanged for or converted into Common Shares on such date).

 

To the extent that
any adjustment in the Exercise Price occurs pursuant to this Section 7(2)(a) as
a result of the fixing by the Company of a record date for the distribution of
securities exchangeable for or convertible into Common Shares, the Exercise
Price shall be readjusted immediately after the expiry of any relevant exchange
or conversion right to the Exercise Price which would then be in effect based
upon the number of Common Shares actually issued and remaining issuable after
such expiry and shall be further readjusted in such manner upon the expiry of
any further such right.

 

(b)           If at any time during the
Adjustment Period the Company shall fix a record date for the issue or
distribution to the holders of all or substantially all of the outstanding
Common Shares of rights, options or warrants pursuant to which such holders are
entitled, during a period expiring not more than forty-five days after the
record date for such issue (such period being the “Rights Period”), to subscribe for or purchase Common Shares or
securities exchangeable for or convertible into Common Shares at a price per
share to the holder (or in the case of securities exchangeable for or
convertible into Common Shares, at an exchange or conversion price per share)
at the date of issue of such securities of less than the Current Market Price
of the Common Shares on such record date (any of such events being called a “Rights Offering”), the Exercise Price shall
be adjusted effective immediately after the record date for such Rights
Offering to the amount determined by multiplying the Exercise Price in effect
on such record date by a fraction:

 

(i)            the numerator of which
shall be the aggregate of

 

(A)          the number of Common Shares
outstanding on the record date for the Rights Offering, and

 

(B)           the quotient determined by
dividing

 

(1)           either (a) the product
of the number of Common Shares offered during the Rights Period pursuant to the
Rights Offering and the price at which such Common Shares are offered, or, (b) the
product of the exchange or conversion price of the securities so offered and
the number of Common Shares for or into which the securities offered pursuant
to the Rights Offering may be exchanged or converted, as the case may be, by

 

4

 

(2)           the Current Market Price of
the Common Shares as of the record date for the Rights Offering; and

 

(ii)           the denominator of which
shall be the aggregate of the number of Common Shares outstanding on such
record date and the number of Common Shares offered pursuant to the Rights
Offering (including in the case of the issue or distribution of securities
exchangeable for or convertible into Common Shares the number of Common Shares
for or into which such securities may be exchanged or converted).

 

If by the terms of
the rights, options, or warrants referred to in this Section 7(2)(b),
there is more than one purchase, conversion or exchange price per Common Share,
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, shall be calculated for
purposes of the adjustment on the basis of the lowest purchase, conversion or
exchange price per Common Share, as the case may be.  Any Common Shares owned by or held for the
account of the Company shall be deemed not to be outstanding for the purpose of
any such calculation.  To the extent that
any adjustment in the Exercise Price occurs pursuant to this Section 7(2)(b) as
a result of the fixing by the Company of a record date for the issue or
distribution of rights, options or warrants referred to in this Section 7(2)(b),
the Exercise Price shall be readjusted immediately after the expiry of any
relevant exchange, conversion or exercise right to the Exercise Price which
would then be in effect based upon the number of Common Shares actually issued
and remaining issuable after such expiry and shall be further readjusted in
such manner upon the expiry of any further such right.

 

(c)           If at any time during the
Adjustment Period the Company shall fix a record date for the issue or
distribution to the holders of all or substantially all of the outstanding
Common Shares of:

 

(i)            shares of the Company of
any class other than Common Shares;

 

(ii)           rights, options or warrants
to acquire Common Shares or securities exchangeable for or convertible into
Common Shares (other than rights, options or warrants pursuant to which holders
of Common Shares are entitled, during a period expiring not more than
forty-five days after the record date for such issue, to subscribe for or
purchase Common Shares or securities exchangeable for or convertible into
Common Shares at a price per share (or in the case of securities exchangeable
for or convertible into Common Shares at an exchange or conversion price per
share) at the date of issue of such securities to the holder of at least the
Current Market Price of the Common Shares on such record date);

 

(iii)          evidences of indebtedness
of the Company; or

 

(iv)          any property or assets of
the Company;

 

and if such issue or
distribution does not constitute a Common Share Reorganization or a Rights
Offering (any of such non-excluded events being herein called a “Special Distribution”), the Exercise Price
shall be adjusted effective immediately after the record date for the Special
Distribution to the amount determined by multiplying the Exercise Price in
effect on the record date for the Special Distribution by a fraction:

 

5

 

(A)          the numerator of which
shall be the difference between

 

(1)           the product of the number
of Common Shares outstanding on such record date and the Current Market Price
of the Common Shares on such record date, and

 

(2)           the fair value, as
determined in good faith by the directors of the Company, to the holders of
Common Shares of the shares, rights, options, warrants, evidences of
indebtedness or property or assets to be issued or distributed in the Special
Distribution, and

 

(B)           the denominator of which
shall be the product obtained by multiplying the number of Common Shares
outstanding on such record date by the Current Market Price of the Common
Shares on such record date.

 

Any Common Shares
owned by or held for the account of the Company shall be deemed not to be
outstanding for the purpose of such calculation.  To the extent that any adjustment in the
Exercise Price occurs pursuant to this Section 7(2)(c) as a result of
the fixing by the Company of a record date for the issue or distribution of
rights, options or warrants to acquire Common Shares or securities exchangeable
for or convertible into Common Shares referred to in this Section 7(2)(c),
the Exercise Price shall be readjusted immediately after the expiry of any
relevant exercise, exchange or conversion right to the amount which would then
be in effect based upon the number of Common Shares issued and remaining
issuable after such expiry and shall be further readjusted in such manner upon
the expiry of any further such right.

 

(d)           If at any time during the
Adjustment Period there shall occur:

 

(i)            a reclassification or
redesignation of the Common Shares, any change of the Common Shares into other
shares or securities or any other capital reorganization involving the Common
Shares other than a Common Share Reorganization;

 

(ii)           a consolidation,
amalgamation, arrangement or merger of the Company with or into another body
corporate which results in a reclassification or redesignation of the Common
Shares or a change of the Common Shares into other shares or securities;

 

(iii)          the transfer of the
undertaking or assets of the Company as an entirety or substantially as an
entirety to another Company or entity;

 

(any of such events
being called a “Capital Reorganization”), after
the effective date of the Capital Reorganization the Warrantholder shall be
entitled to receive, and shall accept, for the same aggregate consideration,
upon exercise of the Warrants, in lieu of the number of Common Shares to which
the Warrantholder was theretofor entitled upon the exercise of the Warrants,
the kind and aggregate number of shares and other securities or property
resulting from the Capital Reorganization which the Warrantholder would have
been entitled to receive as a result of the Capital Reorganization if, on the
effective date thereof, the Warrantholder had been the registered holder of the
number of Common Shares which the Warrantholders was theretofore entitled to
purchase or receive upon the exercise of the Warrants.  If necessary, as a result of any such Capital
Reorganization, appropriate adjustments shall be made in the application of the

 

6

 

provisions of this
Warrant Certificate with respect to the rights and interests thereafter of the
Warrantholder to the end that the provisions shall thereafter correspondingly
be made applicable as nearly as may reasonably be possible in relation to any
shares or other securities or property thereafter deliverable upon the exercise
of the Warrants.

 

(e)           If at any time during the
Adjustment Period any adjustment or readjustment in the Exercise Price shall
occur pursuant to the provisions of Sections 7(2)(a), (b), or (c) of this
Warrant Certificate, then the number of Common Shares purchasable upon the
subsequent exercise of the Warrants shall be simultaneously adjusted or
readjusted, as the case may be, by multiplying the number of Common Shares
purchasable upon the exercise of the Warrants immediately prior to such
adjustment or readjustment by a fraction which shall be the reciprocal of the
fraction used in the adjustment or readjustment of the Exercise Price.

 

(3)           Rules:  Subject to Section 7(5), the following rules and
procedures shall be applicable to adjustments made pursuant to Section 7.2
of this Warrant Certificate:

 

(a)           Subject to the following
sections of this Section 7(3), any adjustment made pursuant to Section 7.2
of this Warrant Certificate shall be made successively whenever an event
referred to therein shall occur.

 

(b)           No adjustment in the Exercise
Price shall be required unless such adjustment would result in a change of at
least one per cent in the then Exercise Price and no adjustment shall be made
in the number of Common Shares purchasable or issuable on the exercise of the
Warrants unless it would result in a change of at least one one-hundredth of a
Common Share; provided, however, that any adjustments which except for the
provision of this subsection (b) would otherwise have been required to be
made shall be carried forward and taken into account in any subsequent
adjustment.  Notwithstanding any other
provision of Section 7.2 of this Warrant Certificate, no adjustment of the
Exercise Price shall be made which would result in an increase in the Exercise
Price or a decrease in the number of Common Shares issuable upon the exercise
of the Warrants (except in respect of a consolidation of the outstanding Common
Shares).

 

(c)           If at any time during the
Adjustment Period the Company shall take any action affecting the Common
Shares, other than an action or event described in Section 7.2 of this
Warrant Certificate, which in the opinion of the directors would have a
material adverse effect upon the rights of the Warrantholder, the Exercise
Price and/or the number of Common Shares purchasable under the Warrants shall,
subject to any necessary regulatory approval, be adjusted in such manner and at
such time as the directors may determine to be equitable in the circumstances,
provided that no such action shall be taken unless and until the Holder has been
provided with notice of such proposed action and the consequences thereof.

 

(d)           If the Company sets a
record date to determine holders of Common Shares for the purpose of entitling
such holders to receive any dividend or distribution or any subscription or
purchase rights and shall thereafter and before the distribution to such
holders of any such dividend, distribution or subscription or purchase rights
legally abandon its plan to pay or deliver such dividend, distribution or
subscription or purchase rights, then no adjustment in the Exercise Price or
the number of Common Shares purchasable under the Warrants shall be required by
reason of the setting of such record date.

 

7

 

(e)           No adjustment in the Exercise
Price or in the number or kind of securities purchasable on the exercise of the
Warrants shall be made in respect of any event described in Section 7 of
this Warrant Certificate if the Warrantholder is entitled to participate in
such event on the same terms mutatis mutandis
as if the Warrantholder had exercised the Warrants prior to or on the record
date or effective date, as the case may be, of such event. Any such
participation by the Warrantholder is subject to regulatory approval.

 

(f)            In any case in which this
Warrant Certificate shall require that an adjustment shall become effective
immediately after a record date for an event referred to in Section 7.2
hereof, the Company may defer, until the occurrence of such event:

 

(i)            issuing to the Warrantholder,
to the extent that the Warrants are exercised after such record date and before
the occurrence of such event, the additional Common Shares issuable upon such
exercise by reason of the adjustment required by such event; and

 

(ii)           delivering to the Warrantholder
any distribution declared with respect to such additional Common Shares after
such record date and before such event;

 

provided, however,
that the Company shall deliver to the Warrantholder an appropriate instrument
evidencing the right of the Warrantholder upon the occurrence of the event
requiring the adjustment, to an adjustment in the Exercise Price or the number
of Common Shares purchasable upon the exercise of the Warrants and to such
distribution declared with respect to any such additional Common Shares
issuable on the exercise of the Warrants.

 

(4)           Notice:  Subject to Section 7(5), at least 21
days prior to the earlier of the record date or effective date of any event
which requires or might require an adjustment in any of the rights of the
Warrantholder under this certificate, including the Exercise Price or the
number of Common Shares which may be purchased under this certificate, the
Company shall deliver to the Warrantholder a certificate of the Company
specifying the particulars of such event and, if determinable, the required
adjustment and the calculation of such adjustment.  In case any adjustment for which a notice in
this Section 7(4) has been given is not then determinable, the
Company shall promptly after such adjustment is determinable deliver to the
Warrantholder a certificate providing the calculation of such adjustment.  The Company hereby covenants and agrees that
the register of transfers and share transfer books for the Common Shares will
be open, and that the Company will not take any action which might deprive the
Warrantholder of the opportunity of exercising the rights of subscription
contained in this Warrant Certificate, during such 21 day period.

 

(5)           Board Discretion: Notwithstanding any of
the foregoing provisions of this Section 7, the board of directors of the
Company may, subject to any required regulatory approval, vary the procedures
described in this Section 7 if it determines in good faith having regard
to the intentions underlying these provisions that such procedures would yield
an unintended result, provided that such varied procedures are not prejudicial
to the interests of the Holder, and the Holder is provided with notice of such
proposed variation and the consequences thereof.

 

8.             Authorized
Shares

 

As a condition
precedent to the taking of any action which would require an adjustment
pursuant to Section 7 of this Warrant, the Company shall take any action
which may be necessary in order that the Company has issued and reserved in its
authorized capital, and may validly and legally issue as fully paid 

 

8

 

and non-assessable,
all of the Common Shares which the Holder of this Warrant is entitled to
receive on the exercise hereof.

 

9.             Mutilated
or Missing Warrant Certificate

 

Upon receipt of
evidence satisfactory to the Company of the loss, theft, destruction or
mutilation of this Warrant Certificate and, in the case of any such loss, theft
or destruction, upon delivery of a bond or indemnity satisfactory to the
Company, or, in the case of any such mutilation, upon surrender or cancellation
of this Warrant Certificate, the Company will issue to the Holder hereof a new
warrant certificate of like tenor, in lieu of this Warrant Certificate,
representing the right to subscribe for and purchase the number of Common
Shares which may be subscribed for and purchased hereunder.

 

10.           Legend

 

Any certificate
representing Common Shares issued upon the exercise of the Warrants shall bear
the following legend:

 

These
securities and the securities issuable upon the conversion or exercise thereof
have not been registered under the United States Securities Act of 1933, as
amended (the “1933 Act”) and may not be offered or sold except pursuant to an
effective registration statement under the 1933 Act, or pursuant to an
exemption from the registration requirements of the 1933 Act, or outside the
United States in accordance with Regulation S under the 1933 Act.

 

Any certificate
representing Common Shares issued upon the exercise of the Warrants prior to
the date which is four months and one day after the later of (i) date
hereof and (ii) the date the Company became a reporting issuer in any
province of territory of Canada will, in addition to the legend above, bear the
following legend:

 

In
Canada, unless permitted under securities legislation, the holder of this
security must not trade the security before the date that is 4 months and a day
after the later of (i) September 2, 2010, and (ii) the date the
issuer became a reporting issuer in any province or territory.

 

provided that at any
time subsequent to the date which is four months and one day after the later of
(i) the date hereof and (ii) the date the Company became a reporting
issuer in any province or territory of Canada, any certificate representing
such Common Shares may be exchanged for a certificate bearing no such legends.

 

11.           Amendment

 

This Warrant
Certificate may only be amended with the prior written consent of the Holder.

 

12.           Severability

 

If any one or more
of the provisions or parts thereof contained in this Warrant Certificate should
be or become invalid, illegal or unenforceable in any respect in any
jurisdiction, the remaining provisions or parts thereof contained herein shall
be and shall be conclusively deemed to be, as to such jurisdiction, severable
therefrom and:

 

(a)           the validity, legality or
enforceability of such remaining provisions or parts thereof shall not in any
way be affected or impaired by the severance of the provisions or parts thereof
severed; and

 

9

 

(b)           the invalidity, illegality
or unenforceability of any provision or part thereof contained in this Warrant
Certificate in any jurisdiction shall not affect or impair such provision or
part thereof or any other provisions of this Warrant Certificate in any other
jurisdiction.

 

13.           Governing
Law

 

This Warrant shall
be governed by and interpreted and enforced in accordance with the laws of the
Province of Ontario and the federal laws of Canada applicable therein.

 

14.           Transferability

 

This Warrant is
transferable and the term “Holder”
shall mean and include any successor, transferee or assignee of the current or
any future Holder.  The Warrants may be
transferred by the Holder completing and delivering to the Company the transfer
form attached hereto as Schedule “B”.

 

15.           Further
Assurances

 

The Company hereby
covenants and agrees that it will do, execute, acknowledge and deliver, or
cause to be done, executed, acknowledged and delivered, all and every such
other act, deed, assurance as the Holder shall reasonably require for the
better accomplishing and effectuating of the intentions and provisions of this
Warrant Certificate.

 

[Remainder
of this page intentionally left blank]

 

10

 

IN
WITNESS WHEREOF the Company has caused this Warrant Certificate to
be executed by its duly authorized officer dated effective as of the date first
written above.

 

 

	
   

  	
  AMERICAN
  LITHIUM MINERALS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Signing
  Officer

  

 

 

SCHEDULE
“A”

 

SUBSCRIPTION
FORM

 

TO:                          American Lithium Minerals,
Inc.

2850 W. Horizon Ridge Parkway, Suite 200

Henderson, NV  89052

U.S.A.

 

The undersigned
Holder of the within Warrant certificate hereby irrevocably subscribes for                                                  
common shares (the “Common Shares”)
of American Lithium Minerals, Inc. (the “Company”)
pursuant to the within Warrant certificate at the Exercise Price per share
specified in the said Warrant certificate and encloses herewith cash or a
certified cheque, money order or bank draft payable to or to the order of the
Company in the aggregate amount of US$                          
in payment of the subscription price therefor.

 

The undersigned
certifies as follows (check one):

 

A                                      o                                    The undersigned is an “accredited
investor”, as such term is defined in Rule 501(a) of the U.S. Securities Act,
exercising this Warrant for its own account or the account of an institutional “accredited
investor” over which it exercises sole investment discretion.

 

B                                        o                                    The undersigned has
provided to the Company an opinion of counsel of recognized standing and
reasonably satisfactory to the Company, to the effect that the issue and sale
of the Common Shares upon exercise of the Warrant is not required to be registered
under the U.S. Securities Act or state securities laws.

 

By checking box A
above, the undersigned represents that (i) it has had access to such current
public, financial and other information concerning the Company as it considered
necessary in connection with its investment decision and understands that the
Common Shares are being offered in a transaction not involving any public
offering within the United States (within the meaning of the U.S. Securities
Act of 1933, as amended, (the “U.S. Securities Act”))
and have not been and will not be registered under the U.S. Securities Act,
(ii) it has such knowledge and experience in financial and business matters
that it is capable of evaluating the merits and risks of purchasing the Common
Shares, (iii) it is not acquiring the Common Shares with a view to distribution
thereof or with any present intention of offering or selling any of the Common
Shares in violation of United States securities laws or applicable state
securities laws, and (iv) it is not purchasing the Common Shares as a result of
any general solicitation or general advertising (as such terms are defined in
Regulation D under the U.S. Securities Act), including advertisements,
articles, notices or other communications published in any newspaper, magazine
or similar media or broadcast over radio, television, or any seminar or meeting
whose attendees have been invited by general solicitation or general
advertising.  The undersigned agrees that
it will only resell the Common Shares issuable upon exercise hereof pursuant to
an effective registration statement under the U.S. Securities Act, or pursuant
to an exemption from the registration requirements of the U.S. Securities Act,
or in accordance with Regulation S under the U.S. Securities Act. The Common
Shares issuable upon exercise hereof will bear a legend to the foregoing effect
which may be removed by providing to the registrar and transfer agent for the
Common Shares an opinion of legal counsel to the effect that such legend may be
removed.

 

The undersigned
acknowledges that the Company will rely upon the above confirmations,
acknowledgements and agreements, and agrees to notify the Company promptly in
writing if any of the above representations or warranties ceases to be accurate
or complete.

 

 

DATED this         day
of                                      ,
20      .

 

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

 

	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  

 

	
  o

  	
   

  	
  Please check box
  if these Common Share certificates are to be delivered at the office where
  this Warrant certificate is surrendered, failing which the Common Share
  certificates will be mailed to the subscriber at the address set out above.

  

 

If any Warrants
represented by this certificate are not being exercised, a new Warrant
certificate will be issued and delivered to the Holder with the Common Share
certificates.

 

 

SCHEDULE
“B”

 

TRANSFER
FORM

 

TO:                          American Lithium Minerals,
Inc.

2850 W. Horizon Ridge Parkway, Suite 200

Henderson, NV  89052

U.S.A.

 

FOR VALUE RECEIVED, the undersigned hereby
sells, assigns and transfers unto                                                                                                                    (include
name and address of the transferee) Warrants exercisable for common shares of
American Lithium Minerals, Inc. (the “Company”)
registered in the name of the undersigned on the register of the Company
maintained therefor, and hereby irrevocably appoints                                                                                     
the attorney of the undersigned to transfer the said securities on the books
maintained by the Company with full power of substitution.

 

The undersigned
hereby certifies that the transfer of these securities is not being made in any
public offering and: (a) that the transferee is an “accredited investor”, as
such term is defined in Rule 501(a) of the United
States Securities Act of 1933, as amended, and (b) that such
transferee is an “accredited investor” as such term is defined in National
Instrument 45-106 — Prospectus and Registration Exemptions of the Canadian
Securities Administrators and specifically represents and warrants that one or
more of the categories set out in such National Instrument correctly, and in
all respects, describes the transferee.

 

DATED this                       day
of                                    ,
20     .

 

Signature of
Transferor guaranteed by:

 

 

	
   

  	
   

  	
   

  
	
  Name of Bank or Trust Company:

  	
   

  	
  Signature of
  Transferor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address of
  Transferor

  

 

Notes:

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