Document:

a5750729ex10_8.htm

    EXHIBIT 10.8

     

    
      AGENCY
AGREEMENT

       

      June 3,
2008

      

      Legend
International Holdings, Inc.

      Level 8,
580 St. Kilda Road

      Melbourne
VIC 3004 Australia

      

      Attention:  Mr. Joseph Gutnick,
President, Chief Executive Officer and Director

       

      Dear
Joseph:

       

      BMO
Nesbitt Burns Inc. (“BMO”), Wellington West Capital Markets Inc. and BBY Ltd.
(together, the “Agents”) understand that Legend International Holdings, Inc.
(“Legend” or the “Company”) proposes to issue up to 42,000,000 shares of common
stock (the “Common Shares”), at a price of U.S. $2.50 (the “Offering Price”) per
Common Share.

       

      Subject to
the terms and conditions hereof, the Agents agree to act and the Company by this
agreement appoints the Agents, as exclusive Agents of the Company to solicit, on
a best efforts basis, offers to purchase the Common Shares.  It is
understood and agreed that the Agents are under no obligation to purchase as
principal any Common Shares offered hereunder.

       

      The
following are the terms and conditions of the agreement between the Company and
the Agents:

       

      Section
1.              Definitions
and Interpretation

       

      A.           In
this agreement:

       

      “Accredited
Investor” means an “accredited investor,” as defined in Rule 501(a) of
Regulation D under the U.S. Securities Act;

       

      “Agency”
means any domestic or foreign court, tribunal, federal, state, provincial or
local government or governmental agency or authority or other regulatory
authority or administrative agency or commission or any elected or appointed
public official;

       

      “Agents’
Commission” has the meaning given to that term in Section 2.B;

       

      “Agents”
has the meaning given to that term in the first paragraph of this
agreement;

       

      “Applicable
Securities Laws” means all applicable securities laws and rules, regulations,
notices, orders and policies applicable in the Jurisdictions;

       

      “business
day” means any day other than a Saturday, Sunday or statutory or civic holiday
in the City of Toronto, Ontario;

       

      “Broker
Warrants” has the meaning given to it in Section 2.B;

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      “Canadian
Securities Laws” means, collectively, all applicable securities laws of each of
the provinces of Canada and the respective rules and regulations under such laws
together with applicable published policy statements, blanket orders and rulings
of the Securities Commissions and all discretionary orders or rulings, if any,
of the Securities Commissions made in connection with the transactions
contemplated by this agreement;

       

      “Closing
Date” means June 3, 2008 or any other later date agreed upon by the Company and
the Agents;

       

      “Company”
has the meaning given to that term in the first paragraph of this
agreement;

       

      “Common
Shares” has the meaning given to that term in the first paragraph of this
agreement;

       

      “Contract”
means, with respect to a Person, any contract, instrument, permit, concession,
franchise, licence, loan or credit agreement, note, bond, mortgage, indenture,
lease or other property agreement, partnership or joint venture agreement or
other legally binding agreement, arrangement or understanding, whether written
or oral, to which the person is a party or by which the person or its property
and assets is bound or affected;

       

      “Documents”
has the meaning given to it in Section 6.A(4);

       

      “Employee”
means a director, officer or employee of the Company or any Subsidiary of the
Company or a Person providing services to the Company or any Subsidiary of the
Company;

       

      “Engagement
Letter” means the letter signed by the Company inviting the Agents to act as
exclusive Agents for the Offering;

       

      “Environmental
Laws” means, with respect to the Company and its Subsidiaries, all applicable
Laws aimed at development, reclamation or restoration of the Mineral Projects;
abatement of pollution; protection of the environment; protection of wildlife,
including endangered species; ensuring public safety from environmental hazards;
management, storage or control of hazardous materials and substances; releases
or threatened releases of pollutants, contaminants, chemicals or industrial,
toxic or hazardous substances as wastes into the environment, including ambient
air, surface water and groundwater; and all other applicable Laws relating to
the manufacturing, processing, distribution, use, treatment, storage, disposal,
handling or transport of pollutants, contaminants, chemicals or industrial,
toxic or hazardous substances or wastes;

       

      “Environmental
Liabilities” means, with respect to the Company and its Subsidiaries, any and
all claims, actions, causes of action, damages, losses, liabilities,
obligations, penalties, judgments, amounts paid in settlement, assessments,
costs, disbursements, or expenses (including attorney’s fees and costs, experts’
fees and costs, and consultants’ fees and costs) of any kind or of any nature
whatsoever that are asserted by any entity (including any Agency), alleging
liability (including liability for studies, testing or investigatory costs,
cleanup costs, response costs, removal costs, remediation costs, containment
costs, restoration costs, corrective action costs, closure costs, reclamation
costs, property damages, business losses, personal injuries, penalties or fines)
arising out of, based on or resulting from (a) the presence, release, threatened
release, discharge or emission into the environment of any hazardous materials
or substances existing or arising on, beneath or above the Mineral Projects
and/or emanating or migrating and/or threatening to emanate or migrate from the
Mineral Projects to off-site properties, (b) physical disturbance of the
environment, or (c) the violation or alleged violation of any Environmental
Laws;

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      “GAAP”
means United States generally accepted accounting principles;

       

      “Gutnick
Group” has the meaning given to that term in Section 6.F of this
agreement;

       

      “Hazardous
Substance” means any and all dangerous substances, hazardous substances, toxic
substances, hazardous wastes, special wastes, controlled wastes, oils, petroleum
products and hazardous chemicals (including without limitation any solid,
liquid, gas, odour, heat, sound, radiation and vibration) which may be harmful
to human health or the environment and which are or may be at any time regulated
or controlled under Environmental Laws;

       

      “Indemnified
Party” has the meaning given to that term in Section 13.A of this
agreement;

       

      “Investment
Company Act” has the meaning given to that term in Section 8.X of this
agreement;

       

      “Jurisdictions”
has the meaning given to that term in Section 2.A of this
agreement;

       

      “Laws”
means all laws, statutes, by-laws, rules, regulations, orders, decrees,
ordinances, protocols, codes, guidelines, policies, notices, directions and
judgments or other requirements of any Agency applicable to the Company, a
Subsidiary or the Mineral Projects;

       

      “Lien”
means any mortgage, charge, pledge, hypothecation, security interest,
assignment, lien (statutory or otherwise), charge, title retention agreement or
arrangement, restrictive covenant or other encumbrance of any nature, or any
other arrangement or condition which, in substance, secures payment or
performance of an obligation;

       

      “Lock-Up
Agreement” has the meaning given to that term in Section 6.F of this
agreement;

       

      “Materially
Adverse” means a fact, circumstance, change, effect, occurrence, event or term
that is or could reasonably be expected to (a) materially and adversely affect
the financial condition, profitability, business, assets (including the Mineral
Projects), capital or prospects of the Company and its Subsidiaries, taken as a
whole, or (b) prevent the Company from performing its obligations under this
agreement or consummating the transactions contemplated herein;

       

      “Mineral
Projects” means the mineral exploration projects described in Appendix “C”
hereto;

       

      “Mining
Rights” has the meaning given in Section 8.M(2);

       

      “Offering”
means the offering of the Common Shares as set out in this agreement and in the
Subscription Agreements;

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      “Offering
Price” has the meaning given to that term in the first paragraph of this
agreement;

       

      “Options”
means all options, warrants, puts, calls, rights, commitments, agreements,
arrangements or undertakings of any kind to which the Company is a party or by
which the Company is bound relating to the issued or unissued capital stock of
the Company, or obligating the Company to issue, transfer, grant, sell or pay
for or repurchase any shares of capital stock or other equity interests in, or
securities convertible or exchangeable for any capital stock or other equity
interests in, the Company or obligating the Company to issue, grant, extend or
enter into any such options, warrants, puts, calls, rights, commitments,
agreements, arrangements or undertakings;

       

      “Permit”
means all certificates, franchises, licences, permits, grants, easements,
covenants, certificates, orders, authorizations and approvals issued or granted
by Agencies or third parties to the Company, including pursuant to any
Environmental Laws, necessary for the Company and/or its Subsidiaries to conduct
its business in relation to the Mineral Projects as presently
conducted;

       

      “Person”
means and includes any individual, sole proprietorship, partnership, joint
venture, unincorporated association, unincorporated syndicate, unincorporated
organization, trust, body corporate, a trustee, executor, administrator or other
legal representative and any governmental agency or instrumentality
thereof;

       

      “PKF”
means PKF Certified Public Accountants, a Professional Corporation;

       

      “Purchasers”
means the persons who, as purchasers or beneficial purchasers, acquire Common
Shares by duly completing, executing and delivering Subscription Agreements and
any other required documentation and permitted assignees or transferees of such
persons from time to time;

       

      “Registration
Rights Agreement” has the meaning given that term in Section 6.H of this
Agreement;

       

      “Regulation
“D” has the meaning given to that term in Appendix “A” to this
agreement;

       

      “Regulation
“S” has the meaning given to that term in Appendix “A” to this
agreement;

       

      “SEC” has
the meaning given to that term in Section 8.V to this Agreement;

       

      “SEC
Reports” has the meaning given to that term in Section 8.V to this
Agreement;

       

      “Securities
Commissions” means collectively, the applicable securities commission or
securities regulatory authority in each of the Jurisdictions;

       

      “Subscription
Agreements” means the subscription agreements (including the schedules attached
thereto) to be entered into between the Purchasers and the Company;

       

      “Subsidiary”
or “Subsidiaries” means the entities list on Schedule 8.B hereto;

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      “Tax
Returns” means all returns, reports and forms (including schedules thereto)
required to be filed by the Company or any Subsidiary with any Agency of any
jurisdiction responsible for the imposition or collection of Taxes;

       

      “Taxes”
means all income taxes (including any tax on or based upon net income, gross
income, income as specially defined, earnings profits or selected items of
income, earnings or profits) and all capital taxes, gross receipts taxes,
environmental taxes, sales taxes, use taxes, ad valorem taxes, value added
taxes, transfer taxes, franchise taxes, license taxes, withholding taxes or
other withholding obligations, payroll taxes, employment taxes, pension plan
premiums, excise, severance, social security premiums, workers’ compensation
premiums, unemployment insurance or compensation premiums, stamp taxes,
occupation taxes, premium taxes, property taxes, windfall profits taxes,
alternative or add on minimum taxes, goods and services tax, customs duties or
other taxes of any kind whatsoever, together with any interest and any penalties
or additional amounts (including all duties and rents) imposed by any taxing
authority (domestic or foreign) on the Company or any Subsidiary or for which
the Company or any Subsidiary is responsible, and any interest, penalties,
additional taxes, additions to tax or other amounts imposed with respect to the
foregoing;

       

      “Time of
Closing” means 12:00 p.m. (Toronto time) on the Closing Date;

       

      “U.S.
Exchange Act” has the meaning given to that term in Section 8.V of this
Agreement;

       

      “U.S.
Securities Act” means the United States Securities Act of 1933, as amended;
and

       

      “United
States” means the United States of America, its territories and possessions, any
state of the United States and the District of Columbia;

       

      B.           The
division of this agreement into sections, subsections, paragraphs and other
subdivisions and the insertion of headings are for convenience of reference only
and shall not affect the construction or interpretation of this
agreement.  Unless something in the subject matter or context is
inconsistent therewith, references herein to sections, subsections, paragraphs
and other subdivisions are to sections, subsections, paragraphs and other
subdivisions of this agreement.

       

      C.           Unless
otherwise specified, all amounts expressed herein in terms of money refer to
lawful currency of the United States and all payments to be made hereunder shall
be made in such currency.

       

      D.           When
used in this agreement, “knowledge” means the knowledge of the Company’s board
of directors after due and reasonable inquiries.

       

      E.           Unless
otherwise specified, all defined terms may be used in the singular or the
plural.  When used in the singular preceded by “a”, “an”, or “any”,
such term shall be taken to indicate one or more members of the relevant
class.  When used in the plural, such term shall be taken to indicate
all members of the relevant class.  The words “include,” “includes”
and “including” shall be deemed to be followed by the phrase “without
limitation.”

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      Section
2.              The
Offering

       

      A.           The
Agents may offer for sale, and seek Purchasers for, Common Shares in each
province of Canada and in the United States, and jurisdictions outside the
United States and Canada provided that no prospectus filing, offering
memorandum, registration requirement or comparable obligation arises in such
jurisdictions as a result of such offer for sale (collectively, the
“Jurisdictions”). The offering and sale of the Common Shares hereunder shall be
conducted in accordance with all Applicable Securities Laws and in such a manner
so as not to require registration or authorization thereof or filing or approval
of a prospectus, offering memorandum or similar document with respect thereto
under such Laws.

       

      B.           The
Company agrees to pay to the Agents a cash commission (the “Agents’ Commission”)
equal to 5% of the gross proceeds of the Offering.  In addition, the
Agents will receive on closing of the Offering broker warrants exercisable for
an amount of Common Shares equal to 2% of the total Common Shares sold under the
Offering (the “Broker Warrants”). Such Broker Warrants shall be exercisable for
a period of 24 months after the Closing Date. The Agents’ Commission is payable,
in consideration of the services to be rendered by the Agents in connection with
the Offering. The Broker Warrants will be delivered by the Company at the Time
of Closing and the Agents’ Commission will be paid by the Company to the Agents
at the Time of Closing on the Closing Date by the Agents withholding the Agents’
Commission from the gross proceeds of the Offering completed on the Closing
Date.

       

      Section
3.              Due
Diligence

       

      During the
period prior to the Time of Closing on the Closing Date, the Agents shall have
the right to conduct a due diligence investigation of the Company and the
Mineral Projects. The Company will make available to the Agents and their legal
counsel, on a timely basis, all corporate and operating records, material
contracts, reserve reports, technical reports, financial information, budgets,
and other relevant information necessary and available in order to complete the
due diligence investigation of the business, properties and affairs of the
Company.  The Company will also make available its respective
directors, officers, employees and legal and accounting advisers. The Company
agrees that during the term of this agreement, the Agents will be informed of
all material business and financial developments affecting the Company and the
Mineral Projects, whether or not requested by the Agents or its legal
counsel.  The Agents will rely on information prepared or supplied by
the Company or other sources believed by the Agents to be reliable and will
apply reasonable standards of diligence to any such work.  The Agents
are entitled to rely on and assume no obligation to verify the accuracy or
completeness of such information and under no circumstances will be liable to
the Company or its security holders for any damages arising out of the
inaccuracy or incompleteness of such information except as required by
Law.

       

      Section
4.              United
States Offering Restrictions

       

      In
connection with the offer and sale of the Common Shares in the United
States:

       

      (1)           the
Company makes the representations, warranties and covenants applicable to it
contained in Appendix “A” attached hereto, which representations, warranties and
covenants shall be deemed to be a part of this agreement;

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (2)           the
Agents make the representations, warranties and covenants applicable to it
contained in Appendix “A” attached hereto, which representations, warranties and
covenants shall be deemed to be a part of this agreement; and

       

      (3)           the
Company and the Agents agree that the Common Shares will not be offered or sold
in the United States or to, or for the account of, U.S. Persons (as defined in
Appendix “A” hereto) except to Accredited Investors (as defined in Appendix “A”
hereto) pursuant to the exemption from the registration requirements contained
in Rule 506 of Regulation D under the U.S. Securities Act.

       

      Section
5.              Canadian
Offering Restrictions

       

      In
connection with the offer and sale of the Common Shares to purchasers resident
in Canada:

       

      (1)           the
Company makes the representations, warranties and covenants applicable to it in
Appendix “D” attached hereto, which representations, warranties and covenants
shall be deemed to be part of this agreement; and

       

      (2)           the
Agents make the representations, warranties and covenants applicable to them in
Appendix “D” attached hereto, which representations, warranties and covenants
shall be deemed to be part of this agreement.

       

      Section
6.              Conditions
of Closing

       

      The
obligations of the Agents under this agreement, and of Purchasers under the
Subscription Agreements, are subject to the accuracy, in all material respects,
of the representations and warranties of the Company contained in this agreement
as of the date of this agreement and as of the Time of Closing on the Closing
Date, the performance of the Company of its obligations under this agreement and
to the satisfaction of each of the following conditions:

       

      A.           United
States Legal Opinion.  The Agents receiving at the Time of Closing on
the Closing Date legal opinions addressed to the Agents, in form and substance
acceptable to the Agents and its counsel, acting reasonably, by Phillips Nizer
LLP, United States counsel to the Company (who may rely, to the extent
appropriate in the circumstances, on the opinions of local counsel acceptable to
counsel to the Company and counsel to the Agents as to matters governed by the
laws of local jurisdictions and on certificates of officers of the Company)
that:

       

      (1)           each
of this Agreement and the Registration Rights Agreement constitute a legal,
valid and binding obligation of, and is enforceable against, the Company in
accordance with its terms (subject to bankruptcy, insolvency, or other laws
affecting the rights of creditors generally, general equitable principles
including the availability of equitable remedies and the qualification that no
opinion need be expressed as to rights to indemnity or
contribution);

       

      (2)           the
issuance and sale of the Common Shares pursuant to the terms of this agreement
being exempt from the registration requirements of the U.S. Securities
Act;

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (3)           the
Company being a company validly existing under the laws of the State of
Delaware;

       

      (4)           the
Company having the corporate power and capacity to execute and deliver this
agreement and the Registration Rights Agreement (collectively, this agreement
and the Registration Rights Agreement constitute the “Documents”), to perform
its obligations under the Documents and to create and issue the Common
Shares;

       

      (5)           as
to the authorized capital of the Company;

       

      (6)           the
execution and delivery of the Documents and the performance of the transactions
contemplated thereby (including the creation, issuance and sale of the Common
Shares) do not and will not result in a breach of, and do not create a state of
facts which, after notice or lapse of time or both, will result in a breach of
and do not and will not conflict with, any of the terms, conditions or
provisions of the constitutional documents of the Company;

       

      (7)           all
necessary corporate action having been taken by the Company to authorize the
execution and delivery by it of each of the Documents and the performance of its
obligations thereunder;

       

      (8)           all
necessary corporate action having been taken by the Company to authorize the
creation, issue and sale of the Common Shares;

       

      (9)           the
Common Shares have been validly issued by the Company and, upon the Company
receiving payment of the offering price therefor, the Common Shares will be
validly created and validly issued and outstanding as fully paid and
non-assessable Common Shares; and

       

      (10)           such
other matters as the Agents may reasonably request in connection with the
Offering.

       

      B.           Australian
Title Opinion.  The Agents receiving at the Time of Closing on the
Closing Date, a favorable legal opinion on title to the Mineral Projects from
Australian legal counsel in form and substance  acceptable in all
reasonable respects to the Agents and its counsel.

       

      C.           Subscription
Agreements. The Subscription Agreements and the certificates representing the
Common Shares, shall have been executed or endorsed, as applicable, and
delivered by the parties in form and substance satisfactory to the Agents and
their counsel, acting reasonably.

       

      D.           Bring
Down Certificate. The Company delivering to the Agents, at the Time of Closing
on the Closing Date, a certificate dated the Closing Date addressed to the
Agents and signed by the chief executive officer and chief financial officer (or
persons acting in a similar capacity) of the Company, in a form satisfactory to
the Agents and their counsel, acting reasonably, certifying, to the best of the
knowledge, information and belief of such officers after due inquiry, on behalf
of the Company and not in their personal capacities that:

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (1)           the
Company has complied with all the covenants and satisfied all the terms and
conditions of this agreement to be complied with and satisfied at or prior to
the Time of Closing on the Closing Date; and

       

      (2)           the
representations and warranties of the Company contained in this agreement are
true and correct, as at the Time of Closing on the Closing Date, with the same
force and effect as if made on and as at the Time of Closing on the Closing
Date, after giving effect to the transactions contemplated by this
agreement.

       

      E.           Secretary
Certificate. The Company delivering to the Agents, at the Time of Closing on the
Closing Date, a certificate dated the Closing Date addressed to the Agents and
signed by the corporate secretary of the Company, in a form satisfactory to the
Agents and their counsel, acting reasonably, with respect to the constitutional
documents of the Company, all resolutions of the Company’s board of directors
relating to the Offering, the incumbency and specimen signatures of signing
officers and such other matters as the Agents may reasonably
request.

       

      F.           Lock-Up.  Each
of Joseph Gutnick, Renika Pty Ltd, Chabad House of Caulfield Pty Ltd and any
entities that are “affiliates” (as such term is defined under the U.S.
Securities Act) of Joseph Gutnick, Renika Pty Ltd or Chabad House of Caulfield
Pty Ltd which hold securities of the Company (collectively, the “Gutnick Group”)
agreeing to a prohibition on the sale of Common Shares of the Company by
executing and delivering the agreement set forth on Appendix “B” (such
agreement, a “Lock-Up Agreement”).

       

      G.           Regulatory
Approvals. Prior to the Closing Date, the Company having obtained all necessary
approvals of any regulatory authority required in connection with the
Offering.

       

      H.           Registration
Rights Agreement.  The Registration Rights Agreement between the
Company and the Agents dated of even date herewith (the “Registration Rights
Agreement”) shall have been executed.

       

      Section
7.              Representations
and Warranties of the Agents

       

      Each of
the Agents hereby represents and warrants to the Company as of the date hereof
and as of the Time of Closing on the Closing, intending that the same may be
relied upon by the Company that:

      (1)           it
is a valid and subsisting corporation under the law of the jurisdiction in which
it was incorporated and has good and sufficient power and authority to enter
into this Agreement and complete the transactions under this Agreement on the
terms and conditions set forth herein;

       

      (2)           it
is a broker or dealer properly registered under the Applicable Securities Laws
where the nature of its business requires such registration; and

       

      (3)           its
warranties and representations in this section are true and correct and will
remain so as of the Closing Date.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Section
8.              Representations
and Warranties of the Company

       

      The
Company hereby represents and warrants to the Agents as of the date hereof and
as of the Time of Closing on the Closing Date, intending that the same may be
relied upon by the Agents that:

       

      
        	
                 
      

              	
                A.

              	
                Organization,
      Standing and Corporate Power

              

      

       

      (1)           Each
of the Company and its Subsidiaries is a company or corporation duly organized,
validly existing and in good standing under the laws of the jurisdiction in
which it is organized and has the requisite power and authority to own its
assets and conduct its business as currently owned and conducted.

       

      (2)           Each
of the Company and its Subsidiaries is duly qualified or licensed to do business
and is in good standing in each jurisdiction in which the nature of its business
or the ownership or leasing of its property and assets makes such qualification
or licensing necessary.

       

      (3)           The
Company has made available for review by the Agents complete and correct copies
of its constitutional documents and those of its Subsidiaries, in each case
together with amendments (if any) up to the date of this agreement.

       

      (4)           Neither
the Company nor its Subsidiaries are in violation of any provision of its
constitutional documents.

       

      
        	
                 
      

              	
                B.

              	
                The
      Subsidiaries

              

      

       

      (1)           Schedule
8.B lists each Subsidiary and the ownership or interest therein of the
Company.

       

      (2)           All
the outstanding shares in the capital of the Subsidiaries have been validly
issued and are fully paid and non-assessable and are directly or indirectly
owned by the Company free and clear of all Liens and no person has any option or
right to acquire any of them.

       

      (3)           Except
for the shares of the Subsidiaries, the Company does not own, directly or
indirectly, any capital stock or other ownership interest in any Person, except
for one share in AXIS Consultants Pty Ltd.

       

      
        	
                 
      

              	
                C.

              	
                The
      Company’s Capital and Options

              

      

       

      (1)           The
maximum number of shares that the Company is authorized to issue and the number
of issued shares of the Company is as set out in Schedule 8.C(1).

       

      (2)           The
outstanding Common Shares have been duly authorized, validly issued and are
outstanding as fully paid and non-assessable.

       

      (3)           Except
as set forth in Schedule 8.C(1), there are no shares or other voting securities
of the Company issued, reserved for issuance or outstanding.

       

      (4)           There
are no bonds, debentures, notes or other indebtedness of the Company having the
right to vote (or convertible into, or exchangeable for, securities having the
right to vote) on any matters on which shareholders of the Company are entitled
to vote.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (5)           Except
as set forth in Schedule 8.C(5) neither the Company nor its Subsidiaries has any
outstanding Options.

       

      (6)           Schedule
8.C(5) sets out the names of all the Company’s holders of Options, the number of
the Company’s Options held by them and the exercise price and vesting schedule
of the Company’s Options held by them.

       

      (7)           There
are no outstanding contractual obligations or other requirements of the Company
or  the Subsidiaries to repurchase, redeem or otherwise acquire any
shares of the Company or any of its Subsidiaries, or provide funds to or make
any investment (in the form of a loan, capital contribution or otherwise) in,
any Subsidiaries or any other person.

       

      (8)           There
are no stock appreciation rights, phantom equity or similar rights, agreements,
arrangements or commitments based upon the book value, income or any other
attribute of the Company or the Subsidiaries.

       

      
        	
                 
      

              	
                D.

              	
                Authority;
      Non-Contravention

              

      

       

      (1)           The
Company has all requisite corporate power and corporate authority to undertake
the Offering and to carry out all its obligations and transactions contemplated
in connection with the Offering, including entering into, executing and
delivering the Documents and carrying out its obligations
thereunder.

       

      (2)           The
execution and delivery of the Documents by the Company and the performance by
the Company of its obligations under the Documents, have been duly authorized by
all necessary corporate action on the part of the Company including its current
holders of outstanding Common Shares.  No other corporate proceedings
on the part of the Company or its Subsidiaries are necessary in connection
therewith.

       

      (3)           This
agreement has been duly executed and delivered by the Company and constitutes a
valid and binding obligation of the Company, enforceable by the Agents against
the Company in accordance with its terms, subject to the availability of
equitable remedies and the enforcement of creditors’ rights
generally.

       

      (4)           The
execution and delivery of this agreement does not, and compliance with the
provisions of this agreement and the Subscription Agreements and the
Registration Rights Agreement will not, conflict with, or result in any
violation of, or default (with or without notice or lapse of time, or both)
under, or give rise to a right of consent, termination, purchase, cancellation
or acceleration of any obligation or to loss of any property, rights or benefits
under, or result in the imposition of any additional obligation under, or result
in the creation of any Lien upon any of the properties or assets of the Company
or a Subsidiary under:

       

      a.           the
constitutional documents of the Company or its Subsidiaries;

       

      b.           any
contracts of the Company or its Subsidiaries; or

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      c.           subject
to reports of trades to be filed under Applicable Securities Laws, any Law
applicable to the Company or its Subsidiaries or their respective property and
assets.

       

      (5)           The
entering into and the performance of the transactions contemplated
herein:

       

      a.           do
not require any consent, approval, authorization or order of any court or
Agency;

       

      b.           will
not contravene any Law which is binding on the Company or its Subsidiaries;
and

       

      c.           will
not result in the breach of, or be in conflict with, or constitute a default
under, or create a state of facts which, after notice or lapse of time, or both,
would constitute a default under any term or provision of the constitutional
documents, by-laws or resolutions of the Company or any mortgage, note,
indenture, contract or agreement (written or oral), instrument, lease or other
document to which the Company or its Subsidiaries is a party, or any judgment,
decree or order or any term or provision thereof, which breach, conflict or
default would be Materially Adverse;

       

      d.           all
Permits that have been issued to the Company or any Subsidiary are validly held
by the Company or its Subsidiaries, and the Company and its Subsidiaries have
complied in all respects with all terms and conditions thereof;

       

      e.           all
Permits that have been issued to the Company or any Subsidiary
will  not be subject to suspension, modification, revocation or
non-renewal as a result of the execution and delivery of this agreement or the
consummation of the transactions contemplated herein;

       

      f.           with
respect to all Permits that have been issued to the Company or any Subsidiary,
neither the Company nor its Subsidiaries have received any written notice,
notice of violation or probable violation, notice of revocation or other written
communication from or on behalf of any Agency, alleging

       

      (i)           any
violation of such Permit, or

       

      (ii)           that
the Company or its Subsidiaries require any additional amendments or
modifications to such Permit; and

       

      g.           with
respect to any Permit not currently issued to the Company, to the knowledge of
the Company, the Company has no reason to believe that any such Permit will not
be issued in the ordinary course and the Company has not received and
communication or correspondence from any Agency that it will not issue any such
permit to the Company or a Subsidiary.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	E.	
                      
                  Creation of Common
Shares

                

              

      

       

      All
necessary corporate action has been taken to authorize the creation, issue and
sale of, and the delivery of certificates representing, the Common Shares, upon
payment of the requisite consideration therefore, will be validly issued as
fully paid and non-assessable Common Shares.

       

      
        	
                 
      

              	
                F.

              	
                Undisclosed
      Liabilities

              

      

       

      The
Company does not have any liabilities or obligations of any nature, whether
known or unknown, absolute, accrued, contingent or otherwise and whether due or
to become due, that, individually or in the aggregate, have been or would
reasonably be expected to be Materially Adverse.

       

      
        	
                 
      

              	
                G.

              	
                Absence
      of Certain Changes or Events

              

      

       

      (1)           To
the knowledge of the Company after due inquiry, other than the transactions
contemplated herein, since March 31, 2008, the Company has conducted, and caused
its Subsidiaries to conduct, its business only in the ordinary course
and:

       

      a.           there
has not been any event, change, effect or development (including any decision to
implement such a change made by the board of directors of the Company or its
Subsidiaries in respect of which senior management believes that confirmation of
the board of directors is probable), which, individually or in the aggregate,
has been, or would reasonably be expected to be, Materially
Adverse;

       

      b.           there
has not been any declaration, setting aside or payment of any dividend or other
distribution (whether in cash, stock or property) with respect to any of the
Company’s Common Shares;

       

      c.           neither
the Company nor its Subsidiaries has engaged in any action which, if done after
the date of this agreement, would violate this Section 8; and

       

      d.           no
liability or obligation of any nature (whether absolute, accrued, contingent or
otherwise) that is Materially Adverse, has been incurred, other than in the
ordinary course of business consistent with past practice.

       

      
        	
                 
      

              	
                H.

              	
                Taxes

              

      

       

      All Taxes
due and payable or required to be collected or withheld and remitted, by the
Company or its Subsidiaries have been paid, collected or withheld and remitted
as applicable, except for where the failure to pay such Taxes would not be
Materially Adverse.

       

      
        	
                 
      

              	
                I.

              	
                Disclosure

              

      

       

      (1)           To
the knowledge of the Company after due inquiry, the Company has not failed to
disclose to the Agents in writing or otherwise any information known to the
Company regarding any event or circumstance or any action taken or failed to be
taken that would reasonably be expected to be Materially
Adverse.  Without limiting the generality of the
foregoing:

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      a.           neither
the Company nor its Subsidiaries or any of their property and assets are the
subject of a judgement, order or decree that is Materially Adverse;
and

       

      b.           to
the knowledge of the Company, the data or information made available to the
Agents by the Company with respect to the Company, its Subsidiaries and the
Mineral Projects, was complete and, to the knowledge of the Company, correct in
all material respects for the period of and matter to which it relates, and to
the knowledge of the Company, did not contain any untrue statement of material
fact or omit to state a material fact necessary in order to make the statements
contained therein not misleading in the circumstances.

       

      
        	
                 
      

              	
                J.

              	
                Compliance

              

      

       

      (1)           Except
for any conflicts, defaults or violations that could not, individually or in the
aggregate (taking into account the impact of any cross-defaults), reasonably be
expected to be Materially Adverse, each of the Company and its Subsidiaries has
complied with, and is not in conflict with, or in default (including cross
defaults) under or in violation of:

       

      a.           its
constitutional documents;

       

      b.           any
Law or Permit applicable to it, its business or operations or by which any of
its property and assets is bound or affected; or

       

      c.           any
Contract to which it or its business or operations, or by which any of its
property and assets, is bound or affected.

       

      (2)           As
of the Closing Date, each of the Company and its Subsidiaries has or will have
complied with each of its covenants and obligations under this
agreement.

       

      
        	
                 
      

              	
                K.

              	
                Pre-Emptive
      Rights

              

      

       

      No holder
of outstanding securities of the Company is entitled to any pre-emptive or any
similar rights to subscribe for Common Shares or other securities of the
Company.

       

      
        	
                 
      

              	
                L.

              	
                Change
      in Law

              

      

       

      Neither
the Company nor its Subsidiaries are aware of any pending or contemplated change
to any applicable Law that could be Materially Adverse, or could reasonably be
expected to have a Materially Adverse effect.

       

      
        	
                 
      

              	
                M.

              	
                Title
      to Mineral Projects

              

      

       

      (1)           To
the knowledge of the Company after due inquiry, the Company has delivered to or
made available for inspection by the Agents all existing data regarding the
Mineral Projects in its possession or control, and true and correct copies of
all material leases, licenses, permits or other Contracts relating to the
Mineral Projects.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (2)           The
Company or its Subsidiaries:

       

      a.           have
title to the Mineral Projects through the mining titles, permits, licenses,
claims, concessions and like interests (including mining conventions) listed on
Schedule 8.M(2) (“Mining Rights”);

       

      b.           such
Mining Rights are free and clear of Liens except Liens as set forth on Schedule
8.M(2); and

       

      c.           there
are no conflicting mining claims that could constitute a material defect in the
Company’s title to any of the Mining Rights, except for a claim from a driller
for unpaid drilling fees in the amount of A$95,000 which the Company
disputes.

       

      (3)           There
are no pending or, to the Company’s knowledge, threatened, suits, claims,
actions, proceedings or investigations of any nature affecting the Company, its
Subsidiaries or the Mineral Projects or the Mining Rights.

       

      (4)           The
Mining Rights are in good standing, are valid and enforceable, are free and
clear of any material Liens or charges (other than as disclosed on the Schedules
attached hereto) and no material royalty is payable in respect of any of them,
other than as set forth on Schedule 8.M(2). There are no material restrictions
on the use, transfer or ability to otherwise exploit any such property rights,
except as required by applicable Laws and the mining conventions.

       

      (5)           The
Mining Rights are the only material prospecting, exploration, retention and/or
mining licences owned or held by the Company or its Subsidiaries (or for their
benefit) or in respect of which the Company or its Subsidiaries have any
interest.

       

      (6)           Neither
the Company nor any Subsidiary has received notice from any governmental
licensing authority of any proposal or intention to withdraw, revoke, amend or
terminate any of the Mining Rights.

       

      (7)           All
material obligations in respect of the Mining Rights have been complied with at
all times, and the Company is currently in compliance with the obligations
required of it under the Mining Rights, and no action, claim, demand, dispute or
liability in respect of the same is outstanding or, to the best of the
knowledge, information and belief of the Company, threatened.

       

      
        	
                 
      

              	
                N.

              	
                Mineral
      Projects Reports

              

      

       

      To the
best of the Company’s knowledge, information and belief, all completed and final
reports relating to the Company’s Mineral Projects made available to the Agents
by the Company relating to the Mineral Projects, are accurate in all material
respects, and do not contain a misrepresentation.

       

      
        	
                 
      

              	
                O.

              	
                Employment
      Matters

              

      

       

      (1)           Neither
the Company nor its Subsidiaries had or has any collective bargaining agreements
with respect to its Employees.  There is no labour strike, dispute,
slowdown or stoppage pending or, to the knowledge of the Company after due
inquiry, threatened, against the Company or its Subsidiaries, and neither the
Company nor its Subsidiaries has experienced any labour strike, dispute,
slowdown or stoppage or other labour difficulty involving its
Employees.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (2)           Neither
the Company nor its Subsidiaries are subject to any litigation, (actual or, to
the knowledge of the Company after due inquiry, threatened) relating to
employment or termination of employment of its Employees, other than those
claims or litigation as would, individually or in the aggregate, not be
Materially Adverse.

       

      (3)           The
Company and its Subsidiaries have operated in accordance with all applicable
Laws with respect to employment and labour, including employment and labour
standards, occupational health and safety, employment equity, pay equity,
workers’ compensation, human rights and labour relations and there are no
current, pending or, to the knowledge of the Company after due inquiry,
threatened proceedings before any Agency with respect thereto.

       

      
        	
                 
      

              	
                P.

              	
                Books
      and Records

              

      

       

      The
corporate minute books of the Company and its Subsidiaries contain minutes of
all meetings and resolutions of the directors and shareholders held, and full
access thereto has been provided to the Agents and its counsel.

       

      
        	
                 
      

              	
                Q.

              	
                Non-arm’s
      Length Transactions

              

      

       

      Except as
disclosed on Schedule 8.Q, there are no Contracts or other transactions
currently in place between the Company or its Subsidiaries and:

       

      a.           any
officer or director of the Company or its Subsidiaries;

       

      b.           any
holder of the Company’s Common Shares or other securities; or

       

      c.           any
associate of the foregoing.

       

      
        	
                 
      

              	
                R.

              	
                Litigation

              

      

       

      There is
no suit, action or proceeding pending or, to the knowledge of the Company after
due inquiry, threatened, against the Company or its Subsidiaries that,
individually or in the aggregate, if adversely determined, would reasonably be
expected to be Materially Adverse or delay or prevent the Offering, and there is
not any judgement, decree, injunction, rule or order of any Agency or arbitrator
outstanding against the Company or its Subsidiaries which is, or which would
reasonably be expected to be Materially Adverse, or prevent or delay the
Offering.

       

      
        	
                 
      

              	
                S.

              	
                Environmental
      Matters

              

      

       

      (1)           To
the knowledge of the Company after due inquiry with respect to the Mineral
Projects:

       

      a.           the
Company and its Subsidiaries are and have been in material compliance with all
applicable Environmental Laws;

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      b.           neither
the Company nor its Subsidiaries have caused or permitted the release of any
Hazardous Substances at, in, on, under or from the Mineral Projects, except in
compliance in all material respects with all Environmental Laws;

       

      c.           all
Hazardous Substances handled, recycled, disposed of, treated or stored on or off
site of the Mineral Projects have been handled, recycled, disposed of, treated
and stored in compliance in all material respects with all Environmental
Laws;

       

      d.           there
are no Hazardous Substances at, in, on, under or migrating from the Mineral
Projects, except in compliance in all material respects with all Environmental
Laws;

       

      e.           neither
the Company nor its Subsidiaries have caused or permitted the release of any
hazardous substances on the Mineral Projects in such a manner as:

       

      (i)           would
be reasonably likely to impose Environmental Liabilities for cleanup, natural
resource damages, loss of life, personal injury, nuisance or damage to other
property; or

       

      (ii)           would
be reasonably likely to result in imposition of a Lien on any of the Mineral
Projects or the assets of the Company or its Subsidiaries;

       

      f.           Neither
the Company nor its Subsidiaries have contractually assumed any Environmental
Liabilities or obligations of another person under or relating to Environmental
Laws that in any case would reasonably be expected to be Materially Adverse;
and

       

      g.           Except
as to matters otherwise disclosed, the Company has not received inquiry from or
notice of a pending investigation from any Agency or of any administrative or
judicial proceeding concerning the violation of any applicable Laws or any
Environmental Liabilities with respect to the Mineral Projects.

       

      
        	
                 
      

              	
                T.

              	
                No
      Other Commissions

              

      

       

      Other than
the Agents, there are no persons acting or purporting to act at the request or
on behalf of the Company, that are entitled to any brokerage or finder’s fee in
connection with the transactions contemplated by this agreement.

       

      
        	
                 
      

              	
                U.

              	
                No
      Unlawful Payments

              

      

       

      No
payments or inducements were made or given, directly or indirectly, to any
officials (foreign or domestic) by the Company or any of its Subsidiaries, or by
any of their officers, directors, employees or Agents, or any associates of any
of the foregoing, in connection with any opportunity, agreement, licence,
permit, certificate, consent, order, approval, waiver or other authorization
related to the business of the Company or any of its Subsidiaries, except for
such payments or inducements that were lawful under the laws, rules and
regulations of the country in which they were made. Neither the Company nor any
of its Subsidiaries has used any corporate funds for any unlawful contribution,
gift, entertainment or other unlawful expense relating to political activity,
made any direct or indirect unlawful payment to any foreign or domestic
government official or employee from corporate funds, or made any other unlawful
payment.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                V.

              	
                Accuracy
      of Reports and Information

              

      

       

      The
Company’s common stock is registered pursuant to Section 12(g) of the Securities
Exchange Act of 1934, as amended (the “ U.S. Exchange Act”).  All
reports required to be filed by the Company with the Securities and Exchange
Commission (the “SEC”) during the 12 months preceding the date of this agreement
pursuant to Section 13(a) or 15(d) of the U.S. Exchange Act (collectively, as
such documents have since the time of their filing been amended or supplemented,
and including any such document filed with the SEC subsequent to the date
hereof, the “SEC Reports”), have been duly filed, and as of their respective
dates (if amended or superseded by a filing prior to the  date of the
Agreement or the Closing Date, then the date of such filing) were prepared in
accordance with the applicable requirements of the U.S. Exchange
Act.  The Company will continue to file all reports required to be
filed under the U.S. Exchange Act.  At the time they were filed (if
amended or superseded by a filing prior to the date of this Agreement or the
Closing Date, then as of the date of such filing), the SEC Reports did not
contain any untrue statement of a material fact or omit to state a material fact
necessary to make the statements made therein, in the light of the circumstances
under which they were made, not misleading.

       

      
        	
                 
      

              	
                W.

              	
                Absence
      of Certain Developments

              

      

       

      Except as
disclosed in the SEC Reports and as contemplated by this Agreement, since March
31, 2008, there has not been:

       

      (1)           any
material adverse change in the business, condition (financial or otherwise),
results of operations or prospects of the Company;

       

      (2)           any
damage, destruction or loss, whether covered by insurance or not, having a
material adverse effect on the business or financial condition of the
Company;

       

      (3)           any
issuance of capital stock or of other rights to acquire capital stock or
securities convertible into capital stock, or any agreements relating to such
issuance;

       

      (4)           any
redemption, repurchase or other acquisition of common stock or any declaration
of any payment of any dividend or other distribution in cash, stock or property
with respect to the common stock, or any amendment to the articles of
incorporation or bylaws of the Company.

       

      (5)           any
entry into any material contract or transaction, including without limitation,
any borrowing, repayment of indebtedness, capital expenditure or business
combination, other than in the ordinary course of business consistent with past
practice or as contemplated by the agreements.

       

      (6)           any
transfer of or rights granted under any material leases, licenses, agreements,
patents, trademarks, trade names or copyrights other than those transferred or
granted in the ordinary course of business; any change by the Company in
accounting principles or methods except insofar as may have been required by a
change in generally accepted accounting principles.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (7)           any
contract, agreement, commitment or arrangement with respect to any of the
foregoing; or

       

      (8)           any
pending or, to the knowledge of the Company, threatened litigation, proceeding
(administrative or otherwise) or investigation against the Company which
individually or in the aggregate would result in any material adverse change in
the business, condition (financial or otherwise), or results of operations of
the Company.

       

      
        	
                 
      

              	
                X.

              	
                Investment
      Company Act

              

      

       

      Neither
the Company nor any subsidiary is, and after giving effect to the offer and sale
of the Common Shares and the application of the proceeds therefrom, none of them
will be, (i) an “investment company” within the meaning of such term under the
Investment Company Act of 1940, as amended (the “Investment Company Act”), and
the rules and regulations of the SEC thereunder or (ii) a “business development
company” (as defined in Section 2(a)(48) of the Investment Company
Act).

       

      
        	
                 
      

              	
                Y.

              	
                No
      Voting Agreements

              

      

       

      The
Company is not party to any agreement, nor is the Company aware of any
agreement, which in any way affects the voting control of the securities of the
Company.

       

      
        	
                 
      

              	
                Z.

              	
                Sarbanes-Oxley

              

      

       

      (1)           The
Company and each of its Subsidiaries (i) make and keep accurate books and
records and (ii) maintain and has maintained effective internal control over
financial reporting as defined in Rule 13a-15 under the U.S. Exchange Act and a
system of internal accounting controls sufficient to provide reasonable
assurance that (A) transactions are executed in accordance with management’s
general or specific authorization, (B) transactions are recorded as necessary to
permit preparation of the Company’s financial statements in conformity with
accounting principles generally accepted in the United States and to maintain
accountability for its assets, (C) access to the Company’s assets is permitted
only in accordance with management’s general or specific authorization and (D)
the recorded accountability for the Company’s assets is compared with existing
assets at reasonable intervals and appropriate action is taken with respect to
any differences.

       

      (2)           The
Company and each of its subsidiaries have established and maintain disclosure
controls and procedures (as such term is defined in Rule 13a-15 under the U.S.
Exchange Act), (ii) such disclosure controls and procedures are designed to
ensure that the information required to be disclosed by the Company and its
subsidiaries in the reports they will file or submit under the U.S. Exchange Act
is accumulated and communicated to management of the Company and its
subsidiaries, including their respective principal executive officers and
principal financial officers, as appropriate, to allow timely decisions
regarding required disclosure to be made and (iii) such disclosure controls and
procedures are effective in all material respects to perform the functions for
which they were established.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (3)           Since
the date of the most recent balance sheet of the Company and its consolidated
subsidiaries reviewed or audited by PKF and the audit committee of the board of
directors of the Company, (i) the Company has not been advised of (A) any
significant deficiencies in the design or operation of internal controls that
could adversely affect the ability of the Company and each of its subsidiaries
to record, process, summarize and report financial data, or any material
weaknesses in internal controls and (B) any fraud, whether or not material, that
involves management or other employees who have a significant role in the
internal controls of the Company and each of its subsidiaries, and (ii) since
that date, there have been no significant changes in internal controls or in
other factors that could significantly affect internal controls, including any
corrective actions with regard to significant deficiencies and material
weaknesses.

       

      (4)           There
is and has been no failure on the part of the Company and any of the Company’s
directors or officers, in their capacities as such, to comply with the
provisions of the Sarbanes-Oxley Act of 2002 and the rules and regulations
promulgated in connection therewith.

       

      Section
9.              Covenants
of the Company

       

      The
Company covenants with the Agents that:

       

      (1)           it
will use its best efforts to fulfill all legal requirements to permit the
creation, issuance, offering and sale of the Common Shares, as contemplated in
this agreement (including, without limitation, filing or causing to be filed,
all forms or undertakings required in connection with the Offering pursuant to
Applicable Securities Laws so that the distribution of the Common Shares may be
conducted without a prospectus, registration statement or offering memorandum in
the Jurisdictions), and duly, punctually and faithfully perform all the
obligations to be performed by it under the Subscription
Agreements;

       

      (2)           it
will use its best reasonable efforts to obtain the necessary regulatory consents
for the Offering on such terms as are mutually acceptable to the Agents and the
Company, acting reasonably;

       

      (3)           it
will promptly inform the Agents in writing during the period prior to the
completion of the Offering of the Common Shares of the full particulars of any
material change (whether actual, anticipated, contemplated or proposed by, or
threatened against, the Company or its Subsidiaries) in the assets (including
the Mineral Projects), liabilities (contingent or otherwise), business, affairs,
prospects, operations, cash flow or capital of the Company and the Subsidiaries,
as the case may be;

       

      (4)           it
will, in good faith, discuss with the Agents any change, event or fact which is
of such a nature that there may be reasonable doubt as to whether notice should
be given to the Agents under Section 9(3) of this agreement;

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (5)           it
will not, for a period commencing as of the date hereof, issue or sell any
Common Shares of the Company or financial instruments convertible or
exchangeable into Common Shares or enter any agreement or arrangement under
which the Company may acquire or transfer to another, in whole or in part, any
of the economic consequences of ownership of Common Shares, or other securities
or cash, or agree to become bound to do so, or disclose to the public any
intention to do so until 90 days following the Closing Date without the prior
consent of the Agents;

       

      (6)           the
Company will use its commercially reasonable efforts to provide the Agents with
the opportunity to review any press release relating to the Offering prior to
its release.  In addition, the Agents will have the right following
the Closing Date to disseminate any press release pre-approved by the Company to
such Canadian news services as they see fit. The Company agrees, subject to
Applicable Securities Laws, if so requested by the Agents, to include a
reference to the Agents and the Agents’ role in any press release or other
public communication issued by the Company with respect to the
Offering;

       

      (7)           the
net proceeds from the Offering will be used to adequately advance the phosphate
Mineral Projects that the Company has identified to a feasibility stage and for
general working capital purposes;

       

      (8)           the
Company shall comply with its expenditure obligations under its agreements with
King Eagle Resources Pty Limited.

       

      (9)           it
will use its best endeavors to obtain the grant of title to the Mining Rights
relating to the Mineral Projects for which it has made application for in
compliance with all applicable Laws;

       

      (10)           it
will not remove, surrender or abandon any application for the grant of title to
the Mining Rights related to the Mineral Projects for which it has
applied.

       

      Section
10.            Closing

       

      At the
Time of Closing on the Closing Date, subject to the terms and conditions
contained in this agreement, the Company shall deliver to the Agents a
certificate or certificates representing the Common Shares issued on such date
registered as directed by the Agents comprising the Offering against delivery of
the net proceeds of the Offering.

       

      Section
11.            Post-Closing
Covenants

       

      A.           The
Company covenants that following the Closing Date, the Company agrees not to
directly or indirectly issue any Common Shares or securities or other financial
instruments convertible into or having the right to acquire Common Shares (other
than pursuant to rights or obligations under securities or instruments
outstanding) or enter into any agreement or arrangement under which the Company
acquires or transfers to another, in whole or in part, any of the economic
consequences of ownership of Common Shares, whether that agreement or
arrangement may be settled by the delivery of Common Shares or other securities
or cash, or agree to become bound to do so, or disclose to the public any
intention to do so, for a period from the Closing Date until 120 days following
the Offering without BMO’s prior written consent, which consent will not be
unreasonably withheld.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      B.           BMO
and the Company shall, upon mutual agreement in good faith, appoint two
additional directors to the Company’s board of directors and appoint the
Company’s Chief Operating Officer.

       

      C.           The
Company shall use its reasonable best efforts to cause the Company’s Common
Shares to be listed on the American Stock Exchange within 6 months from the
Closing Date.

       

      D.           The
Company agrees that, upon completion of the Offering, and for a term of 24
months subsequent to the Closing of the Offering:

       

      (1)           BMO
shall be entitled to participate as sole bookrunner and lead manager of any
subsequent public offering of the securities of the Company with a minimum right
to participate of 60% of the deal’s economics; or

       

      (2)           in
the event of the proposed sale of all or a substantially portion of the assets
of the Company or its Subsidiaries, or any business combination involving the
Company in which all or a substantially portion of the outstanding securities of
the Company are acquired by a third party, in lieu of a transaction, BMO shall
be entitled to participate as financial advisor to the Company in relation to
such transaction; and

       

      (3)           in
the case of (1) or (2) above, such engagement shall be contained in one or more
separate agreements and the fees for such services will be negotiated separately
and in good faith and be consistent with the fees paid to investment banks in
North America for similar services in comparable situations.

       

      Section
12.            Termination
Rights

       

      A.           Due
Diligence Out.  In the event that the due diligence investigations
performed by the Agents and/or the Agents’ representatives reveal any material
information or fact which, in the sole opinion of BMO, is Materially Adverse, or
adversely affects the price or value of the Common Shares, BMO shall be entitled
at its sole option, in accordance with Section 12.H of this agreement, to
terminate the obligations of the Agents under this agreement (and the
obligations of the Purchasers under the Subscription Agreements) by written
notice to that effect given to the Company prior to the Time of
Closing.

       

      B.           Litigation.  If
any inquiry, action, suit, investigation or proceeding whether formal or
informal (including matters of regulatory transgression or unlawful conduct) is
commenced, announced or threatened in relation to the Company or a Subsidiary,
or any of their respective officers, directors or shareholders, BMO shall be
entitled, at its sole option and in accordance with Section 12.H of this
agreement, to terminate the obligations of the Agents under this agreement (and
the obligations of the Purchasers under the Subscription Agreements) by written
notice to that effect given to the Company any time prior to the Time of Closing
on the Closing Date provided such inquiry, suit, investigation or proceeding,
would, if determined in a manner adverse to the Company or the Subsidiary,
reasonably be expected to be Materially Adverse, or adversely affects the price
or value of the Common Shares.

       

      C.           Disaster
Out.  If there should develop, occur or come into effect any event of
any nature, including terrorism, accident, or other condition or major financial
occurrence of national or international consequence, which, in the sole opinion
of BMO, is Materially Adverse, or has a materially adverse effect on the
financial markets generally, or the price or value of the Common Shares, BMO
shall be entitled at its sole option, in accordance with Section 12.H of this
agreement, to terminate the obligations of the Agents under this agreement (and
the obligations of the Purchasers under the Subscription Agreements) by written
notice to that effect given to the Company prior to the Time of Closing on the
Closing Date.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      D.           Change
in Material Fact.  In the event that prior to the Time of Closing on
the Closing Date, the Agents and/or the Agents’ representatives, through their
due diligence investigations, or otherwise discover or there should occur a
material change or a change in any material fact or new material fact shall
arise, which, in the sole opinion of BMO, has or could be expected to be
Material Adverse, or materially adversely affects the market price or value of
the Common Shares, the Agents shall be entitled, at their sole option, in
accordance with Section 12.H, to terminate the obligations of the Agents under
this agreement (and the obligations of the Purchasers under the Subscription
Agreements) by written notice to that effect given to the Company prior to the
Time of Closing on the Closing Date.

       

      E.           Regulatory
Out.  In the event that any Law, is promulgated or changed which, in
the sole opinion of BMO, is Materially Adverse, or has a materially adverse
effect on the financial markets generally, or materially adversely affects the
price or value of the Common Shares, BMO shall be entitled at its sole option,
in accordance with Section 12.H of this agreement, to terminate the obligations
of the Agents under this agreement (and the obligations of the Purchasers under
the Subscription Agreements) by written notice to that effect given to the
Company prior to the Time of Closing on the Closing Date.

       

      F.           Market
Out.  In the event that the state of the financial markets becomes
such that, in the sole opinion of BMO the Common Shares cannot be marketed
profitably, BMO shall be entitled at its sole option, in accordance with Section
12.H of this agreement, to terminate the obligations of the Agents under this
agreement (and the obligations of the Purchasers under the Subscription
Agreements) in respect of Common Shares, by written notice to that effect given
to the Company prior to the Time of Closing on the Closing Date.

       

      G.           Non-Compliance
with Conditions. The Company agrees that all terms, conditions and covenants in
this agreement shall be construed as conditions and complied with so far as the
same relate to acts to be performed or caused to be performed by the Company, as
applicable, that it will use its best efforts to cause such conditions to be
complied with, and any breach or failure by the Company to comply with any of
such conditions or in the event that any representation or warranty given by the
Company becomes false (other than representations and warranties given as of a
specific time which need only be true as of such time) and is not rectified as
at the Time of Closing on the Closing Date, shall entitle BMO, at its sole
option in accordance with Section 12.H, to terminate the obligations of the
Agents under this agreement (and the obligations of the Purchasers under the
Subscription Agreements) by written notice to that effect given to the Company
at or prior to the Time of Closing on the Closing Date. The Agents may waive, in
whole or in part, or extend the time for compliance with, any terms and
conditions without prejudice to their rights in respect of any other of such
terms and conditions or any other or subsequent breach or non-compliance,
provided that any such waiver or extension shall be binding upon the Agents only
if the same is in writing and signed by them.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      H.           Exercise
of Termination Rights.  The rights of termination contained in Section
12.A, B, C, D, E, F and G may be exercised by the Agents, or BMO, as applicable,
and are in addition to any other rights or remedies the Agents, or BMO, as
applicable, may have in respect of any default, act or failure to act or
non-compliance by the Company in respect of any of the matters contemplated by
this agreement or otherwise. In the event of any such termination by the Agents,
there shall be no further liability on the part of the Agents to the Company
under this agreement or on the part of the Company to the Agents under this
agreement except in respect of any obligation or liability of the Company to the
Agents which has or may have arisen prior to such termination under Section 13,
Section 14 and Section 15.

       

      Section
13.            Indemnity

       

      A.           The
Company agrees to protect, indemnify and save harmless the Agents and their
respective affiliates, directors, officers, partners, agents and employees and
each other person, if any, controlling any of the Agents (each an “Indemnified
Party” and collectively, the “Indemnified Parties”) from and against any and all
losses (other than loss of profits), claims, actions, causes of action, demands,
costs, damages, expenses or liabilities in connection with the distribution of
the Common Shares (including the reasonable fees and expenses of the Agents’
counsel) in any way caused or incurred by, or arising directly or indirectly
from or in consequence of:

       

      (1)           any
misrepresentation or alleged misrepresentation contained herein or made by the
Company in writing or otherwise in connection with the issuance and sale of the
Common Shares;

       

      (2)           the
non-compliance or alleged (by any applicable regulatory or governmental body)
non-compliance by the Company with any applicable Laws (including Applicable
Securities Laws), regulatory requirements or stock exchange rules in connection
with the transactions herein contemplated;

       

      (3)           the
omission or alleged omission to state in this Agreement or any documents of the
Company delivered hereunder or pursuant hereto, any material fact required to be
stated therein or necessary to make any statement therein not misleading in
light of the circumstances under which it was made (other than omissions
relating solely to the Agents);

       

      (4)           any
misrepresentation or alleged misrepresentation (except any made by the Agents
and for which the Agents did not rely on any information provided by the Company
or anyone acting on its behalf) relating to the Offering, whether oral or
written and whether made during and in connection with the Offering, where such
misrepresentation or alleged misrepresentation may give or gives rise to any
other liability under any statute in any jurisdiction which is in force on the
date of this Agreement; or

       

      (5)           any
breach of any representation or warranty of the Company contained herein or the
failure of the Company to comply with any of its respective covenants or other
obligations hereunder in any material respect.

       

      B.           To
the extent that any Indemnified Party is not a party to this agreement, the
Agents shall obtain and hold the right and benefit of the above-noted indemnity
in trust for and on behalf of such Indemnified Party.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      C.           If
any matter or thing contemplated by this Section 13 shall be asserted against
any Indemnified Party in respect of which indemnification is or might reasonably
be considered to be provided, such Indemnified Party will notify the Company as
soon as possible of the nature of such claim (provided that omission to so
notify the Company will not relieve the Company of any liability which it may
otherwise have to the Indemnified Party hereunder, except to the extent the
Company is materially prejudiced by such omission) and the Company shall be
entitled (but not required) to assume the defence of any suit brought to enforce
such claim; provided, however, that the defence shall be through legal counsel
reasonably acceptable to such Indemnified Party and that no settlement may be
made by the Company or such Indemnified Party without the prior written consent
of the other, such consent not to be unreasonably withheld.

       

      D.           In
any such claim, such Indemnified Party shall have the right to retain separate
legal counsel to act on such Indemnified Party’s behalf, provided that the fees
and disbursements of such other legal counsel shall be paid by such Indemnified
Party, unless: (i) the Company and such Indemnified Party mutually agree to
retain other legal counsel; or (ii) the Indemnified Party has been advised by
counsel that the representation of the Company and such Indemnified Party by the
same legal counsel would be inappropriate due to actual or potential conflicting
interests, in which event such fees and disbursements shall be paid by the
Company to the extent that they have been reasonably incurred, provided that in
no circumstances will the Company be required to pay the fees and expenses of
more than one set of legal counsel for all Indemnified Parties.

       

      E.           The
indemnity provided herein will remain in full force and effect until all
possible liability of the Indemnified Parties arising out of the transactions
contemplated by this agreement is extinguished by the operation of law and will
not be limited to or affected by any other indemnity obtained by the Indemnified
Persons from any other person.

       

      Section
14.            Contribution

       

      If, for
any reason, the indemnity provided for in Section 13 hereof is illegal or
unenforceable, the Agents and the Company shall contribute to the aggregate of
all losses, claims, costs, damages, expenses or liabilities (except loss of
profits in connection with the sale of Common Shares) of the nature provided for
in Section 13 hereof such that the Agents shall be responsible for that portion
represented by the percentage that the Agents’ Commission bears to the gross
proceeds from the Offering and the Company shall be responsible for the
balance.  Notwithstanding the foregoing, (i) a person who has been
found by a court of competent jurisdiction in a final judgment to have caused
losses, claims, costs, damages, expenses or liabilities referred to above as a
result of such person’s negligence or wilful misconduct shall not be entitled to
contribution from any other party hereunder, and (ii) in the event that a court
of competent jurisdiction determines in a final judgment that the losses,
claims, costs, damages, expenses or liabilities referred to above resulted from
the negligence or wilful misconduct of the Agents, the portion for which the
Agents are responsible shall not be limited to the proportion indicated above,
but rather the Company and the Agents shall be responsible for such proportion
as a court of competent jurisdiction determines.  Any party entitled
to contribution will, promptly after receiving notice of commencement of any
claim, action, suit or proceeding against such party in respect of which a claim
for contribution may be made against another party or parties under this Section
14, notify such party or parties from whom contribution may be sought of the
nature of such claim, action, suit or proceeding (provided that any failure to
so notify or delay in so notifying shall not relieve or reduce the liability of
any party from whom contribution may be sought under this Section 14 except to
the extent that such party has been prejudiced as a result of such failure or
delay).  The right to contribution provided in this Section 14 shall
be in addition to and not in derogation of any other right to contribution which
the Agents may have by statute or otherwise by law.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      Section
15.            Expenses

       

      The
Company will be responsible for all reasonable expenses of the Offering,
including, without limitation, the reasonable fees and disbursements of legal
counsel and consultants to the Agents, whether or not the Offering is
completed.  The fees and disbursements payable shall not exceed
US$200,000 without the prior written consent of the Company.

       

      Section
16.            Governing
Law; Time of Essence

       

      This
agreement shall be governed by and construed in accordance with the laws of the
Province of Ontario and the federal laws of Canada applicable therein and time
shall be of the essence hereof.

       

      Section
17.            Survival
of Warranties, Representations, Covenants and Agreements

       

      Except as
expressly provided, all warranties, representations, covenants (including,
without limitation the covenants in Section 11) and agreements of the Company
and the Agents herein contained or contained in documents submitted or required
to be submitted pursuant to this agreement shall survive the purchase of the
Common Shares and shall continue in full force and effect, regardless of the
closing of the sale of the Common Shares and regardless of any investigation
which may be carried on by the Agents.

       

      Section
18.            Notices

       

      All
notices or other communications by the terms hereof required or permitted to be
given by one party to another shall be given in writing by personal delivery or
by facsimile delivered to such other party as follows:

       

      
        	
                (a)

              	
                to
      the Company at:

              

      

      Legend
International Holdings, Inc.

      
        	
                 
      

              	
                Level
      8, 580 St. Kilda Road

              

      

      Melbourne
VIC 3004

      Australia

      Attention:  Joseph
Gutnick

      Facsimile
No.:  613-8532-2805

       

      with a
copy (which shall not constitute notice) to:

       

      Phillips
Nizer LLP

      666 Fifth
Avenue

      New York,
New York  10103

      Attention:  Brian
Brodrick, Esq.

      Facsimile
No.: 212-262-5152

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        	
                 
      

              	
                (b)

              

      

      to the
Agents at:

      

      BMO
Nesbitt Burns Inc.

      1 First
Canadian Place

      100 King
Street West, 4th Floor

      Toronto,
Ontario M5X 1H3

      Canada

      Attention:  Jason
Attew

      Facsimile
No.:  416-359-4459

       

      Wellington
West Capital Markets Inc.

      145 King
Street West, Suite 700

      Toronto,
Ontario M5H 1J9

      Attention:  Josh
Enchin

      Facsimile
No.:  416-642-1910

       

      BBY
Ltd.

      Level 38,
Rialto South Tower

      525
Collins Street

      Melbourne,
Victoria 3000

      Australia

      Attention:  Glenn
Rosewell

      Facsimile
No.:  61-3-9226-0000

       

      with a
copy (which shall not constitute notice) to:

       

      Goodwin
Procter LLP

      The New
York Times Building

      620 Eighth
Avenue

      New York,
New York

      Attention:  Martin
Glass, Esq.

      Facsimile
No.  212-355-3333

       

      or at such
other address or facsimile number as may be given by either of them to the other
in writing from time to time and such notices or other communications shall be
deemed to have been received when delivered or, if facsimile, on the next
business day after such notice or other communication has been facsimile (with
receipt confirmed).

       

      Section
19.            Counterpart
Signature

       

      This
agreement may be executed in one or more counterparts (including counterparts by
facsimile) which, together, shall constitute an original copy hereof as of the
date first noted above.

       

      Section
20.            Enforceability

       

      If one or
more provisions contained herein shall, for any reason, be held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provision of this agreement, but
this agreement shall be construed as if such invalid, illegal or unenforceable
provision or provisions had never been contained herein.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      Section
21.            Successors
and Assigns

       

      The terms
and provisions of this agreement will be binding upon and enure to the benefit
of the Company and the Agents and their respective successors and assigns;
provided that, except as otherwise provided in this agreement, this agreement
will not be assignable by any party without the written consent of the others
and any purported assignment without that consent will be invalid and of no
force and effect.

       

      Section
22.            No
Advisory or Fiduciary Relationship

       

      The
Company acknowledges and agrees that (a) the purchase and sale of the Common
Shares pursuant to this Agreement, including the determination of the offering
price of the Common Shares and any related discounts and commissions, is an
arm's-length commercial transaction between the Company, on the one hand, and
the Agents, on the other hand, (b) in connection with the offering contemplated
hereby and the process leading to such transaction each Agent is and has been
acting solely as a principal and is not the agent or fiduciary of the Company,
or its stockholders, creditors, employees or any other party, (c) no Agent has
assumed or will assume an advisory or fiduciary responsibility in favor of the
Company with respect to the offering contemplated hereby or the process leading
thereto (irrespective of whether such Agent has advised or is currently advising
the Company on other matters) and no Agent has any obligation to the Company
with respect to the offering contemplated hereby except the obligations
expressly set forth in this agreement, (d) the Agents and their respective
affiliates may be engaged in a broad range of transactions that involve
interests that differ from those of the Company, and (e) the Agents have not
provided any legal, accounting, regulatory or tax advice with respect to the
offering contemplated hereby and the Company has consulted its own legal,
accounting, regulatory and tax advisors to the extent it deemed
appropriate.

       

      Section
23.            Entire
Agreement

       

      This
agreement constitutes the entire agreement between the Agents and the Company
relating to the subject matter hereof and supersedes all prior agreements
between the Agents and the Company.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      Section
24.           
Acceptance

       

      If this
offer accurately reflects the terms of the transaction which we are to enter
into and if such terms are agreed to by the Company, please communicate your
acceptance by executing where indicated below and returning by facsimile one
copy and returning by courier one originally executed copy to BMO Nesbitt Burns
Inc. (Attention: Mr. Jason Attew).

       

      Yours very truly,

       

      BMO NESBITT BURNS INC.

       

      

       

      By:_______________________

      Authorized Signatory

       

       WELLINGTON WEST CAPITAL MARKETS
INC.

       

      By:_______________________

      Authorized Signatory

       

      BBY
LTD.

       

      

       

      By:_______________________

      Authorized Signatory

       

      

       

      

       

      The
foregoing accurately reflects the terms of the transaction that we are to enter
into and such terms are agreed to.

       

      ACCEPTED
at __________ as of this ____ day of June, 2008.

       

      LEGEND INTERNATIONAL HOLDINGS,
INC.

       

      By:________________________

       

      Name:  Joseph
Gutnick

       

      Title:    President,
Chief Executive Officer and Director

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      SCHEDULE
8.B

       

      LEGEND
INTERNATIONAL HOLDINGS, INC. SUBSIDIARIES

       

      
        
          	
                  Name
      of Subsidiary

                	
                  Jurisdiction
      of Incorporation

                	
                  Ownership
      Interest

                
	 
      	 
      	 
      
	
                  Teutonic
      Minerals Pty Ltd

                	
                  Western
      Australia

                	
                  100%

                

        

      

       

      The
Company formerly had a subsidiary known as Legend Consolidated Group, Inc., a
Delaware corporation (“Legend Consolidated”), which has been forfeited (i.e.,
administratively dissolved).  Prior to its dissolution, Legend
Consolidated did not have any assets or operations.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      SCHEDULE
8.C(1)

       

      AUTHORIZED
AND ISSUED CAPITAL

       

      

       

      
        	
                Authorized
      Capital:

              	
                320,000,000
      shares consisting of 300,000,000 shares of common stock having a par value
      of $0.001 per share and 20,000,000 preferred stock having a par value of
      $0.001 per share.

              

      

       

      
        	
                Issued:

              	
                178,328,682
      shares of common stock having a par value of $0.001 per
    share

              

      

       

      
        	
                Reserved
      for Issuance:

              	
                19,649,630
      Options

              

      

       

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    SCHEDULE
8.C(5)

     

    OPTIONS

     

     

    
      
        	 
      	
                LEGEND
      INTERNATIONAL HOLDINGS INC

              	 
	 
      	
                2006
      EQUITY INCENTIVE PLAN

              	 
	 
      	
                OPTIONS
      ON ISSUE

              	 
	 
      	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	 
      	 	
                Note

              	 	 	
                Exercisable

              	 	 	
                Exercisable

              	 	 	
                Exercisable

              	 	 	
                Total

              	 
	 
      	 
      	 	 	 	 	
                @US$0.444

              	 	 	
                @US$1.00

              	 	 	
                @US$2.00

              	 	 	 	 
	 
      	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	
                Joseph
      Gutnick

              	 	 	1	 	 	 	 	 	 	2,250,000	 	 	 	5,000,000	 	 	 	7,250,000	 
	 
      	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	
                Mordi
      Gutnick

              	 	 	2	 	 	 	562,500	 	 	 	2,562,500	 	 	 	 	 	 	 	3,125,000	 
	 
      	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	
                Peter
      Lee

              	 	 	3	 	 	 	787,500	 	 	 	1,787,500	 	 	 	 	 	 	 	2,575,000	 
	 
      	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	
                Craig
      Michael

              	 	 	4	 	 	 	150,000	 	 	 	1,400,000	 	 	 	 	 	 	 	1,550,000	 
	 
      	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	
                Jonathon
      Herzog

              	 	 	5	 	 	 	 	 	 	 	900,000	 	 	 	 	 	 	 	900,000	 
	 
      	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	
                Robyn
      Hilliard

              	 	 	6	 	 	 	150,000	 	 	 	150,000	 	 	 	 	 	 	 	300,000	 
	 
      	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	
                Pat
      Breen

              	 	 	7	 	 	 	56,250	 	 	 	56,250	 	 	 	 	 	 	 	112,500	 
	 
      	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	
                Ros
      Groves

              	 	 	8	 	 	 	56,250	 	 	 	56,250	 	 	 	 	 	 	 	112,500	 
	 
      	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	
                Adam
      Wright

              	 	 	9	 	 	 	56,250	 	 	 	56,250	 	 	 	 	 	 	 	112,500	 
	 
      	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	
                Jim
      Wright

              	 	 	10	 	 	 	150,000	 	 	 	150,000	 	 	 	 	 	 	 	300,000	 
	 
      	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	
                Mark
      Edwards

              	 	 	11	 	 	 	150,000	 	 	 	350,000	 	 	 	 	 	 	 	500,000	 
	 
      	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	
                Gemma
      McGoldrick

              	 	 	12	 	 	 	 	 	 	 	112,500	 	 	 	 	 	 	 	112,500	 
	 
      	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	
                Louisa
      van Bureen

              	 	 	13	 	 	 	 	 	 	 	112,500	 	 	 	 	 	 	 	112,500	 
	 
      	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	
                Simon
      Lee

              	 	 	14	 	 	 	 	 	 	 	400,000	 	 	 	 	 	 	 	400,000	 
	 
      	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	
                Menachem
      Vorchheimer

              	 	 	15	 	 	 	 	 	 	 	250,000	 	 	 	 	 	 	 	250,000	 
	 
      	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	
                Anna
      Maria Papatheodorou

              	 	 	16	 	 	 	 	 	 	 	112,500	 	 	 	 	 	 	 	112,500	 
	 
      	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	 
      	 	 	 	 	 	 	2,118,750	 	 	 	10,706,250	 	 	 	5,000,000	 	 	 	17,825,000	 

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        	 
      	 
      
	
                1

              	
                2,250,000
      options issued September 19, 2006 vest 1/3rd after 12 months, 1/3rd after
      24 months and 1/3rd after 36 months

              
	 
      	
                5,000,000
      options issued February 7, 2008 vest 1/3rd after 12 months, 1/3rd after 24
      months and 1/3rd after 36 months

              
	 
      	 
      
	
                2

              	
                562,500
      options issued September 19, 2006 vest 1/3rd after 12 months, 1/3rd after
      24 months and 1/3rd after 36 months

              
	 
      	
                 with
      an exercise price of US$0.444.

              
	 
      	
                562,500
      options issued September 19, 2006 vest 1/3rd after 12 months, 1/3rd after
      24 months and 1/3rd after 36 months

              
	 
      	
                with
      an exercise price of US$1.00.

              
	 
      	
                2,000,000
      options issued December 28, 2007 vest 1/3rd after 12 months, 1/3rd after
      24 months and 1/3rd after 36 months

              
	 
      	
                 with
      an exercise price of US$1.00.

              
	 
      	 
      
	
                3

              	
                787,500
      options issued September 19, 2006 vest 1/3rd after 12 months, 1/3rd after
      24 months and 1/3rd after 36 months

              
	 
      	
                 with
      an exercise price of US$0.444.

              
	 
      	
                787,500
      options issued September 19, 2006 vest 1/3rd after 12 months, 1/3rd after
      24 months and 1/3rd after 36 months

              
	 
      	
                with
      an exercise price of US$1.00.

              
	 
      	
                1,000,000
      options issued December 28, 2007 vest 1/3rd after 12 months, 1/3rd after
      24 months and 1/3rd after 36 months

              
	 
      	
                with
      an exercise price of US$1.00.

              
	 
      	 
      
	
                4

              	
                150,000
      options issued September 10, 2007 vest 1/3rd after 12 months, 1/3rd after
      24 months and 1/3rd after 36 months

              
	 
      	
                 with
      an exercise price of US$0.444.

              
	 
      	
                150,000
      options issued September 10, 2007 vest 1/3rd after 12 months, 1/3rd after
      24 months and 1/3rd after 36 months

              
	 
      	
                 with
      an exercise price of US$1.00.

              
	 
      	
                1,250,000
      options issued December 28, 2007 vest 1/3rd after 12 months, 1/3rd after
      24 months and 1/3rd after 36 months

              
	 
      	
                 with
      an exercise price of US$1.00.

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        	 
      	 
      
	
                5

              	
                150,000
      options issued September 19, 2006 vest 1/3rd after 12 months, 1/3rd after
      24 months and 1/3rd after 36 months

              
	 
      	
                 with
      an exercise price of US$0.444.

              
	 
      	
                150,000
      options issued September 19, 2006 vest 1/3rd after 12 months, 1/3rd after
      24 months and 1/3rd after 36 months

              
	 
      	
                 with
      an exercise price of US$1.00.

              
	 
      	 
      
	
                6

              	
                112,500
      options issued September 19, 2006 vest 1/3rd after 12 months, 1/3rd after
      24 months and 1/3rd after 36 months

              
	 
      	
                 with
      an exercise price of US$0.444.

              
	 
      	
                112,500
      options issued September 19, 2006 vest 1/3rd after 12 months, 1/3rd after
      24 months and 1/3rd after 36 months

              
	 
      	
                with
      an exercise price of US$1.00.

              
	 
      	
                37,500
      options issued May 18, 2007 vest 1/3rd after 12 months, 1/3rd after 24
      months and 1/3rd after 36 months

              
	 
      	
                with
      an exercise price of US$0.444.

              
	 
      	
                37,500
      options issued May 18, 2007 vest 1/3rd after 12 months, 1/3rd after 24
      months and 1/3rd after 36 months

              
	 
      	
                 with
      an exercise price of US$1.00.

              
	 
      	 
      
	
                7

              	
                56,250
      options issued September 19, 2006 vest 1/3rd after 12 months, 1/3rd after
      24 months and 1/3rd after 36 months

              
	 
      	
                 with
      an exercise price of US$0.444.

              
	 
      	
                56,250
      options issued September 19, 2006 vest 1/3rd after 12 months, 1/3rd after
      24 months and 1/3rd after 36 months

              
	 
      	
                 with
      an exercise price of US$1.00.

              
	 
      	 
      
	
                8

              	
                56,250
      options issued September 19, 2006 vest 1/3rd after 12 months, 1/3rd after
      24 months and 1/3rd after 36 months

              
	 
      	
                 with
      an exercise price of US$0.444.

              
	 
      	
                56,250
      options issued September 19, 2006 vest 1/3rd after 12 months, 1/3rd after
      24 months and 1/3rd after 36 months

              
	 
      	
                with
      an exercise price of US$1.00.

              
	 
      	 
      
	
                9

              	
                56,250
      options issued September 19, 2006 vest 1/3rd after 12 months, 1/3rd after
      24 months and 1/3rd after 36 months

              
	 
      	
                 with
      an exercise price of US$0.444.

              
	 
      	
                56,250
      options issued September 19, 2006 vest 1/3rd after 12 months, 1/3rd after
      24 months and 1/3rd after 36 months

              
	 
      	
                 with
      an exercise price of US$1.00.

              
	 
      	 
      
	
                10

              	
                150,000
      options issued May 18, 2007 vest 1/3rd after 12 months, 1/3rd after 24
      months and 1/3rd after 36 months

              
	 
      	
                 with
      an exercise price of US$0.444.

              
	 
      	
                150,000
      options issued May 18, 2007 vest 1/3rd after 12 months, 1/3rd after 24
      months and 1/3rd after 36 months

              
	 
      	
                 with
      an exercise price of US$1.00.

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        	 
      	 
      
	
                11

              	
                150,000
      options issued December 19, 2007 vest 1/3rd after 12 months, 1/3rd after
      24 months and 1/3rd after 36 months

              
	 
      	
                 with
      an exercise price of US$0.444.

              
	 
      	
                150,000
      options issued December 19, 2007 vest 1/3rd after 12 months, 1/3rd after
      24 months and 1/3rd after 36 months

              
	 
      	
                with
      an exercise price of US$1.00.

              
	 
      	
                200,000
      options issued December 28, 2007 vest 1/3rd after 12 months, 1/3rd after
      24 months and 1/3rd after 36 months

              
	 
      	
                with
      an exercise price of US$1.00.

              
	 
      	 
      
	
                12

              	
                112,500
      options issued December 28, 2007 vest 1/3rd after 12 months, 1/3rd after
      24 months and 1/3rd after 36 months

              
	 
      	
                 with
      an exercise price of US$1.00.

              
	 
      	 
      
	
                13

              	
                112,500
      options issued December 28, 2007 vest 1/3rd after 12 months, 1/3rd after
      24 months and 1/3rd after 36 months

              
	 
      	
                with
      an exercise price of US$1.00.

              
	 
      	 
      
	
                14

              	
                400,000
      options issued February 18, 2008 vest 1/3rd after 12 months, 1/3rd after
      24 months and 1/3rd after 36 months

              
	 
      	
                with
      an exercise price of US$1.00.

              
	 
      	 
      
	
                15

              	
                250,000
      options issued May 29, 2008 vest 1/3rd after 12 months, 1/3rd after 24
      months and 1/3rd after 36 months

              
	 
      	
                 with
      an exercise price of US$1.00.

              
	 
      	 
      
	
                16

              	
                112,500
      options issued May 29, 2008 vest 1/3rd after 12 months, 1/3rd after 24
      months and 1/3rd after 36 months

              
	 
      	
                 with
      an exercise price of US$1.00.

              

      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      
        	
                LEGEND
      INTERNATIONAL HOLDINGS, INC

              
	 
      
	
                REGISTER
      OF OPTION HOLDERS AS AT MAY 31,
2008

              

      

    

     

    
      
        	
                Name

              	 	
                Options

              	 
	 
      	 	
                Held

              	 
	 
      	 	 	 
	 
      	 	 	 
	
                Pinchas
      T Althaus

              	 	 	230,100	 
	 
      	 	 	 	 
	
                Curtiss
      H Borglund SR

              	 	 	45,000	 
	 
      	 	 	 	 
	
                Ray
      G Buckles

              	 	 	9,000	 
	 
      	 	 	 	 
	
                Patrick
      Connolly

              	 	 	18,000	 
	 
      	 	 	 	 
	
                Betty
      Jean Cowan

              	 	 	9,000	 
	 
      	 	 	 	 
	
                Neill
      M Dalrymple JR

              	 	 	9,000	 
	 
      	 	 	 	 
	
                Jeff
      Deell

              	 	 	22,500	 
	 
      	 	 	 	 
	
                E*Trade
      Clearing LLC

              	 	 	196,650	 
	 
      	 	 	 	 
	
                Walter  H
      Ebert

              	 	 	27,000	 
	 
      	 	 	 	 
	
                Carl
      J Fleigelman

              	 	 	9,000	 
	 
      	 	 	 	 
	
                Brett
      Glavich

              	 	 	9,000	 
	 
      	 	 	 	 
	
                David
      Glavich

              	 	 	105,000	 
	 
      	 	 	 	 
	
                Joshua
      Glavich

              	 	 	9,000	 
	 
      	 	 	 	 
	
                Norman
      Goldman

              	 	 	9,000	 
	 
      	 	 	 	 
	
                Goldman
      Sachs Execution & Clearing LP

              	 	 	2,250	 
	 
      	 	 	 	 
	
                Martin
      Hagenson

              	 	 	9,000	 
	 
      	 	 	 	 
	
                Harold
      A Havekotte

              	 	 	45,000	 
	 
      	 	 	 	 
	
                Walter
      Ho & Helen Ho

              	 	 	9,000	 
	 
      	 	 	 	 
	
                John
      A Hudak

              	 	 	9,000	 
	 
      	 	 	 	 
	
                John
      R Ingram

              	 	 	9,000	 
	 
      	 	 	 	 
	
                Ms
      Suo Lee

              	 	 	22,500	 
	 
      	 	 	 	 
	
                Merrill
      Lynch Pierce Fenner & Smith Inc

              	 	 	54,000	 

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        	 
      	 	 	 	 
	
                Morgan
      Stanley DW Inc

              	 	 	2,250	 
	 
      	 	 	 	 
	
                National
      Financial Services LLC

              	 	 	20,250	 
	 
      	 	 	 	 
	
                National
      Investor Services Corp

              	 	 	9,000	 
	 
      	 	 	 	 
	
                Kumar
      Patel

              	 	 	9,000	 
	 
      	 	 	 	 
	
                Penson
      Financial Services, Inc

              	 	 	87,750	 
	 
      	 	 	 	 
	
                Preston
      Family Trust

              	 	 	18,000	 
	 
      	 	 	 	 
	
                Monica
      Preston

              	 	 	9,000	 
	 
      	 	 	 	 
	
                Jeffery
      Puckett

              	 	 	54,000	 
	 
      	 	 	 	 
	
                RBC
      Dain Rauscher Inc

              	 	 	179,460	 
	 
      	 	 	 	 
	
                Joel
      H Robinson

              	 	 	9,000	 
	 
      	 	 	 	 
	
                Gregory
      A Sablic

              	 	 	18,000	 
	 
      	 	 	 	 
	
                Dinesh
      V Sheth

              	 	 	9,000	 
	 
      	 	 	 	 
	
                Richard
      Slade

              	 	 	27,000	 
	 
      	 	 	 	 
	
                Duane
      A Smith

              	 	 	9,000	 
	 
      	 	 	 	 
	
                Southwest
      Securities Inc

              	 	 	1,350	 
	 
      	 	 	 	 
	
                Darian
      S Tenace

              	 	 	45,000	 
	 
      	 	 	 	 
	
                UBS
      Financial Services Inc CDN FBO

              	 	 	37,800	 
	 
      	 	 	 	 
	
                Union
      Valoren AG

              	 	 	67,500	 
	 
      	 	 	 	 
	
                Vernon
      Wong

              	 	 	18,000	 
	 
      	 	 	 	 
	
                CMS
      Capital

              	 	 	251,400	 
	 
      	 	 	 	 
	
                Ameritrade,
      Inc

              	 	 	75,870	 
	 
      	 	 	 	 
	 
      	 	 	1,824,630	 

      

    

     

    
      The
options were issued as a bonus issue on the basis of two options for every one
share of common stock held. Exercise price US$0.111. Latest exercise date
December 31, 2012. No vesting.

       

      Under the
terms of the options, if the Company receive exercise notices for options during
the month, the exercise date is the end of the month. During May 2008, the
Company has received notice from option holders to exercise 231,000 options and
this exercise will occur at the end of May 2008.  Some are using the
cashless exercise feature so the Company cannot confirm the number of shares of
common stock to be issued yet. Schedule 8.C(1) and 8.C(5) are prepared as of May
29, 2008 and include the options that will be exercised at the end of the
month.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    SCHEDULE
8.M(2)

     

    MINING
RIGHTS

     

    

    
      	
              Lease

            	
              Lease
      Status

            	
              Project

            	
              State

            	
              Joint
      Venture

            	
              Comments

            
	
              EPM14905

            	
              Granted

            	
              Quita
      Creek

            	
              Queensland

            	
              King
      Eagle

            	
              Legend
      earning 80% interest in Phosphate only

            
	
              EPM14906

            	
              Granted

            	
              Highland
      Plains

            	
              Queensland

            	
              King
      Eagle

            	
              Legend
      earning 80% interest in Phosphate only

            
	
              EPM14912

            	
              Granted

            	
              Lily
      Creek

            	
              Queensland

            	
              King
      Eagle

            	
              Legend
      earning 80% interest in Phosphate only

            
	
              EPM14753

            	
              Granted

            	
              D-Tree

            	
              Queensland

            	 
      	 
      
	
              EPM17333

            	
              Application

            	
              Thorntonia

            	
              Queensland

            	 
      	 
      
	
              EPM17334

            	
              Application

            	
              Lady
      Annie

            	
              Queensland

            	 
      	 
      
	
              EPM17330

            	
              Application

            	
              Lady
      Jane

            	
              Queensland

            	 
      	 
      
	
              EPM17437

            	
              Application

            	
              West
      Thornton Creek

            	
              Queensland

            	 
      	 
      
	
              EPM17441

            	
              Application

            	
              Johnstones
      Creek

            	
              Queensland

            	 
      	 
      
	
              EPM17443

            	
              Application

            	
              East
      Galah Creek

            	
              Queensland

            	 
      	 
      
	
              EPM17446

            	
              Application

            	
              Epsom
      Creek

            	
              Queensland

            	 
      	 
      
	
              EPM17447

            	
              Application

            	
              Lady
      Annie East

            	
              Queensland

            	 
      	 
      
	
              EL22244

            	
              Granted

            	
              Foelsche

            	
              Northern
      Territory

            	 
      	 
      
	
              EL22245

            	
              Granted

            	
              Foelsche

            	
              Northern
      Territory

            	 
      	 
      
	
              EL22246

            	
              Granted

            	
              Selby

            	
              Northern
      Territory

            	 
      	 
      
	
              EL22247

            	
              Granted

            	
              Selby

            	
              Northern
      Territory

            	 
      	 
      
	
              EL22251

            	
              Granted

            	
              Selby

            	
              Northern
      Territory

            	 
      	 
      
	
              EL22252

            	
              Granted

            	
              Selby

            	
              Northern
      Territory

            	 
      	 
      
	
              EL22295

            	
              Granted

            	
              Cox

            	
              Northern
      Territory

            	 
      	 
      
	
              EL22296

            	
              Granted

            	
              Cox

            	
              Northern
      Territory

            	 
      	 
      
	
              EL22297

            	
              Granted

            	
              Cox

            	
              Northern
      Territory

            	 
      	 
      
	
              EL22351

            	
              Granted

            	
              Foelsche

            	
              Northern
      Territory

            	 
      	 
      
	
              EL23116

            	
              Granted

            	
              Abner
      Range

            	
              Northern
      Territory

            	 
      	 
      
	
              EL23117

            	
              Granted

            	
              Abner
      Range

            	
              Northern
      Territory

            	 
      	 
      
	
              EL23118

            	
              Granted

            	
              Abner
      Range

            	
              Northern
      Territory

            	 
      	 
      
	
              EL23119

            	
              Granted

            	
              Foelsche

            	
              Northern
      Territory

            	 
      	 
      
	
              EL23121

            	
              Granted

            	
              Foelsche

            	
              Northern
      Territory

            	 
      	 
      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              EL23126

            	
              Granted

            	
              Cox

            	
              Northern
      Territory

            	 
      	 
      
	
              EL23510

            	
              Granted

            	
              Foelsche

            	
              Northern
      Territory

            	 
      	 
      
	
              EL23511

            	
              Granted

            	
              Foelsche

            	
              Northern
      Territory

            	 
      	 
      
	
              EL23512

            	
              Granted

            	
              Foelsche

            	
              Northern
      Territory

            	 
      	 
      
	
              EL23513

            	
              Granted

            	
              Abner
      Range

            	
              Northern
      Territory

            	 
      	 
      
	
              EL23514

            	
              Granted

            	
              Abner
      Range

            	
              Northern
      Territory

            	 
      	 
      
	
              EL23515

            	
              Granted

            	
              Foelsche

            	
              Northern
      Territory

            	 
      	 
      
	
              EL25491

            	
              Granted

            	
              Foelsche

            	
              Northern
      Territory

            	 
      	 
      
	
              EL25616

            	
              Granted

            	
              Foelsche

            	
              Northern
      Territory

            	 
      	 
      
	
              EL25617

            	
              Granted

            	
              Foelsche

            	
              Northern
      Territory

            	 
      	 
      
	
              EL26175

            	
              Granted

            	
              Foelsche

            	
              Northern
      Territory

            	 
      	 
      
	
              EL26176

            	
              Granted

            	
              Foelsche

            	
              Northern
      Territory

            	 
      	 
      
	
              EL26177

            	
              Granted

            	
              Foelsche

            	
              Northern
      Territory

            	 
      	 
      
	
              EL26360

            	
              Granted

            	
              Selby

            	
              Northern
      Territory

            	 
      	 
      
	
              EL22294

            	
              Application

            	
              Cox

            	
              Northern
      Territory

            	 
      	 
      
	
              EL22299

            	
              Application

            	
              Cox

            	
              Northern
      Territory

            	 
      	 
      
	
              EL23127

            	
              Application

            	
              Cox

            	
              Northern
      Territory

            	 
      	 
      
	
              EL23162

            	
              Application

            	
              Cox

            	
              Northern
      Territory

            	 
      	 
      
	
              EL25486

            	
              Application

            	
              Cox

            	
              Northern
      Territory

            	 
      	 
      
	
              EL25612

            	
              Application

            	
              Cox

            	
              Northern
      Territory

            	 
      	 
      
	
              EL25613

            	
              Application

            	
              Cox

            	
              Northern
      Territory

            	 
      	 
      
	
              EL25614

            	
              Application

            	
              Cox

            	
              Northern
      Territory

            	 
      	 
      
	
              EL25615

            	
              Application

            	
              Cox

            	
              Northern
      Territory

            	 
      	 
      
	
              EL25629

            	
              Application

            	
              Cox

            	
              Northern
      Territory

            	 
      	 
      
	
              EL26406

            	
              Application

            	
              Foelsche

            	
              Northern
      Territory

            	 
      	 
      
	
              EL26495

            	
              Application

            	
              Foelsche

            	
              Northern
      Territory

            	 
      	 
      
	
              EL26507

            	
              Application

            	
              Foelsche

            	
              Northern
      Territory

            	 
      	 
      
	
              EL26509

            	
              Application

            	
              Foelsche

            	
              Northern
      Territory

            	 
      	 
      
	
              EL26514

            	
              Application

            	
              Cox

            	
              Northern
      Territory

            	 
      	 
      
	
              EL26515

            	
              Application

            	
              Cox

            	
              Northern
      Territory

            	 
      	 
      
	
              EL26528

            	
              Application

            	
              Foelsche

            	
              Northern
      Territory

            	 
      	 
      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
8.Q

     

    In
December 2004, the Company entered into an agreement with AXIS Consultants Pty
Ltd to provide geological, management and administration services to the
Company.  AXIS is affiliated through common management. We are one of
four affiliated companies.  Each of the companies has some common
Directors, officers and shareholders.  In addition, each of the
companies is substantially dependent upon AXIS for its senior management and
certain mining and exploration staff.  A number of arrangements and
transactions have been entered into from time to time between such
companies.  It has been the intention of the affiliated companies and
respective Boards of Directors that each of such arrangements or transactions
should accommodate the respective interest of the relevant affiliated companies
in a manner which is fair to all parties and equitable to the shareholders of
each. Currently, there are no material arrangements or planned transactions
between the Company and any of the other affiliated companies other than
AXIS.

    AXIS is a
company owned by its public companies (including Legend) and any profits
generated by AXIS are returned to its shareholders in the form of
dividends.

     

    AXIS is
paid by each company for the costs incurred by it in carrying out the
administration function for each such company.  Pursuant to the
Service Agreement, AXIS performs such functions as payroll, maintaining employee
records required by law and by usual accounting procedures, providing insurance,
legal, human resources, company secretarial, land management, certain
exploration and mining support, financial, accounting advice and
services.  AXIS procures items of equipment necessary in the conduct
of the business of the Company.  AXIS also provides for the Company
various services, including but not limited to the making available of office
supplies, office facilities and any other services as may be required from time
to time by the Company as and when requested by the Company.

     

    We are
required to reimburse AXIS for any direct costs incurred by AXIS for the
Company.  In addition, we are required to pay a proportion of AXIS’s
overhead cost based on AXIS’s management estimate of our utilisation of the
facilities and activities of AXIS plus a service fee of not more than 15% of the
direct and overhead costs. Amounts invoiced by AXIS are required to be paid by
us.  We are also not permitted to obtain from sources other than AXIS,
and we are not permitted to perform or provide ourselves, the services
contemplated by the Service Agreement, unless we first requests AXIS to provide
the service and AXIS fails to provide the service within one month.

     

    The
Service Agreement may be terminated by AXIS or us upon 60 days prior
notice.  If the Service Agreement is terminated by AXIS, we would be
required to independently provide, or to seek an alternative source of
providing, the services currently provided by AXIS.  There can be no
assurance that we could independently provide or find a third party to provide
these services on a cost-effective basis or that any transition from receiving
services under the Service Agreement will not have a material adverse effect on
us.  Our inability to provide such services or to find a third party
to provide such services may have a material adverse effect on our
operations.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    In
accordance with the Service Agreement AXIS provides the Company with the
services of our Chief Executive Officer, Chief Financial Officer, geologists and
clerical employees, as well as office facilities, equipment, administrative and
clerical services. We pay AXIS for the actual costs of such facilities plus a
maximum service fee of 15%.

     

    During
2006, AXIS charged the Company A$203,664 in management fees and administration
services, A$212,679 for exploration services provided to the Company, charged
interest of A$13,498 on the outstanding balance, loaned us $4,500 and the
Company repaid A$180,000. AXIS charged interest at a rate of between 9.35% and
10.10% for 2006. AXIS did not charge a service fee for 2006. The amount owed to
AXIS at December 31, 2006 was A$312,253.  During 2007, AXIS charged
the Company A$1,126,311 in management fees including salaries incurred in
relation to AXIS staff that provided services to the Company, A$834,552 for
exploration services provided to the Company, A$151,800 for asset usage,
interest of A$14,683 and we repaid A$2,432,687. AXIS charged interest at a rate
of 10.10% for 2007. The amount owed to AXIS at December 31, 2007 was
A$6,912.

     

    Wilzed Pty
Ltd, a company associated with President and CEO of the Company, Joseph Gutnick,
has paid expenses on behalf of the Company and has provided loan funds to enable
the Company to meet its liabilities. During the 2006 fiscal year, Wilzed loaned
A$324,951 and charged A$3,588 in interest, and we repaid $336,081. The amount
owed at December 31, 2006 was A$nil. Wilzed charged interest at a rate of
between 9.35% and 9.85% for 2006.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      APPENDIX
“A”

       

      TERMS
FOR OFFERING TO U.S. PURCHASERS

       

      UNITED
STATES OFFERS AND SALES

       

      As used in
this Appendix “A”, capitalized terms used herein and not defined herein shall
have the meaning ascribed thereto in the Agency Agreement to which this Appendix
is attached and the following terms shall have the meanings
indicated:

       

      (a)           “Accredited
Investor” means “accredited investor” as defined in Rule 501(a) of Regulation D
adopted pursuant to the U.S. Securities Act;

       

      (b)           “Directed
Selling Efforts” means directed selling efforts as that term is defined in
Regulation S.  Without limiting the foregoing, but for greater clarity
in this Appendix, it means, subject to the exclusions from the definition of
directed selling efforts contained in Regulation S, any activity undertaken for
the purpose of, or that could reasonably be expected to have the effect of,
conditioning the market in the United States for any of the Common Shares, and
includes the placement of any advertisement in a publication with a general
circulation in the United States that refers to the offering of the Common
Shares;

       

      (c)           “Foreign
Issuer” means a foreign issuer as that term is defined in Regulation
S.  Without limiting the foregoing, but for greater clarity in this
Schedule, it means any issuer which is (a) the government of any foreign country
or of any political subdivision of a foreign country; or (b) a corporation or
other organization incorporated under the laws of any foreign country, except an
issuer meeting the following conditions:  (1) more than 50 percent of
the outstanding voting securities of such issuer are held of record either
directly or through voting trust certificates or depositary receipts by
residents of the United States; and (2) any of the following:  (i) the
majority of the executive officers or directors are United States citizens or
residents, (ii) more than 50 percent of the assets of the issuer are located in
the United States, or (iii) the business of the issuer is administered
principally in the United States;

       

      (d)           “General
Solicitation” or “General Advertising” means “general solicitation or general
advertising”, as used under Rule 502(c) of Regulation D. Without limiting the
foregoing, but for greater clarity, General Solicitation or General Advertising
includes, but is not limited to, any advertisements, articles, notices or other
communications published in any newspaper, magazine or similar media or
broadcast over radio, internet or television, or any seminar or meeting whose
attendees had been invited by General Solicitation or General
Advertising;

       

      (e)           “Regulation
D” means Regulation D adopted by the SEC under the U.S. Securities
Act;

       

      (f)           “Regulation
S” means Regulation S adopted by the SEC under the U.S. Securities
Act;

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (g)           “SEC”
means the United States Securities and Exchange Commission;

       

      (h)           “Selling
Dealer Group” means dealers or brokers other than the Agents and their U.S.
affiliates who participate in the offer and sale of the Common Shares pursuant
to the Agency Agreement;

       

      (i)           “Substantial
U.S. Market Interest” means “substantial U.S. market interest” as that term is
defined in Regulation S;

       

      (j)           “U.S.
Exchange Act” means the United States Securities Exchange Act of 1934, as
amended;

       

      (k)           “U.S.
Person” means a U.S. Person as that term is defined in Regulation
S.

       

      (l)           “U.S.
Securities Act” means the United States Securities Act of 1933, as amended;
and

       

      (m)           “United
States” means the United States of America, its territories and possessions, any
state of the United States, and the District of Columbia.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        Representations,
Warranties and Covenants of the Agents

         

        The Agents
acknowledge that the Common Shares have not been and will not be registered
under the U.S. Securities Act or the securities laws of any state and may be
offered and sold within the United States or to, or for the account or benefit
of, U.S. Persons only in transactions exempt from or not subject to the
registration requirements of the U.S. Securities Act and any applicable state
securities laws.  Accordingly, each Agent represents, warrants and
covenants to and with the Company that:

         

        1.           It
has not offered or sold, and will not offer or sell, any Common Shares except
(a) in an offshore transaction in accordance with Rule 903 of Regulation S or
(b) within the United States as provided in paragraphs 2 through 9
below.  Accordingly, none of the Agents, its affiliates, any persons
acting on its behalf, or any member of the Selling Dealer Group have made or
will make (except as permitted in paragraphs 2 through 9 below) (i) any offer to
sell or any solicitation of an offer to buy, any Common Shares to any person or
U.S. Person in the United States, (ii) any sale of Common Shares to any
purchaser unless, at the time the buy order was or will have been originated,
the purchaser was outside the United States and not a U.S. Person, or such
Agents, affiliate or person acting on behalf of either, reasonably believed that
such purchaser was outside the United States and not a U.S. Person, or (iii) any
Directed Selling Efforts in the United States with respect to the Common
Shares.  Terms used in this paragraph have the meanings given to them
by Regulation S.

         

        2.           It
has not entered and will not enter into any contractual arrangement with respect
to the distribution of the Common Shares, except with its affiliates, any
members of the Selling Dealer Group or with the prior written consent of the
Company.

         

        3.           All
offers and sales of Common Shares in the United States shall be made through one
or more of the Agents’ U.S. registered broker-dealer affiliates in compliance
with all applicable U.S. broker-dealer requirements.

         

        4.           Offers
and sales of Common Shares in the United States shall not be made (i) by any
form of General Solicitation or General Advertising, including advertisements,
articles, notices or other communications published in any newspaper, magazine,
or similar media or broadcast over radio, television, or Internet, or any
seminar or meeting whose attendees had been invited by general solicitation or
general advertising or (ii) in any manner involving a public offering within the
meaning of Section 4(2) of the U.S. Securities Act.

         

        5.           Any
offer, sale or solicitation of an offer to buy Common Shares that has been made
or will be made in the United States was or will be made only to Accredited
Investors in accordance with the requirements of Rule 506 of Regulation D in
transactions that are exempt from registration under the U.S. Securities Act and
applicable state securities laws.

         

        6.           The
Agents acting through its U.S. registered broker-dealer affiliates, may offer
the Common Shares in the United States only to offerees they have reasonable
grounds to believe are Accredited Investors and immediately prior to making any
such offer had reasonable grounds to believe and did believe that each offeree
was an Accredited Investor, and on the date hereof, they continue to believe
that each U.S. Purchaser is an Accredited Investor.

         

        7.           Prior
to any sales of Common Shares in the United States, it shall cause each U.S.
Purchaser thereof to sign and deliver a U.S. Subscription
Agreement.

         

        8.           It
will inform, and cause its U.S. registered broker-dealer affiliate to inform,
all purchasers of the Common Shares in the United States that the Common Shares
have not been and will not be registered under the U.S. Securities Act and are
being sold to them without registration under the U.S. Securities Act in
reliance on Rule 506 of Regulation D.

         

        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

    

    Representations,
Warranties and Covenants of the Company

     

    The
Company represents, warrants, covenants and agrees that:

     

    1.           Except
with respect to offers and sales within the United States to Accredited
Investors, in reliance upon any exemption from registration under Regulation D,
neither the Company nor any of its affiliates, nor any person acting on its
behalf, has made or will make: (A) any offer to sell, or any solicitation of an
offer to buy, any Common Shares to a person or U.S. Person in the United States;
or (B) any sale of Common Shares unless, at the time the buy order was or will
have been originated, the purchaser is (i) outside the United States and not a
U.S. Person or (ii) the Company, its affiliates, and any person acting on their
behalf reasonably believes that the purchaser is outside the United States and
not a U.S. Person.

     

    2.           During
the period in which the Common Shares are offered for sale, neither it nor any
of its affiliates, nor any person acting on its or their behalf (i) has engaged
in or will engage in any form of general solicitation or general advertising (as
those terms are used in Regulation D) with respect to offers or sales of the
Common Shares in the United States, including advertisements, articles, notices
or other communications published in any newspaper, magazine or similar media,
or broadcast over radio, television, or the Internet, or any seminar or meeting
whose attendees have been invited by general solicitation or general
advertising; or (ii) has engaged in any Directed Selling Efforts with respect to
offers and sales of Common Shares in the United States.

     

    3.           The
Company has not offered or sold and will not offer or sell, any securities in a
manner that would be integrated with the offer and sale of the Common Shares and
would cause the exemption from registration set forth in Rule 506 of Regulation
D to become unavailable with respect to the offer and sale of the Common Shares
to the U.S. Purchasers.

     

    4.           The
Company is not, and will not be, as a result of the sale of the Common Shares,
an investment company that is or is required to be registered under the United
States Investment Company Act of 1940, as amended.

     

    5.           Neither
the Company nor any of its predecessors or affiliates has been subject to any
order, judgment, or decree of any court of competent jurisdiction temporarily,
preliminarily or permanently enjoining such person from reliance upon Regulation
D.

     

    6.           Neither
the Company, nor any of its affiliates, nor any person acting on its or their
behalf, has paid or will pay any commission or other remuneration, directly or
indirectly for soliciting the purchase of the Common Shares, except pursuant to
this agreement.

     

    7.           Except
with respect to the offer and sale of the Common Shares offered hereby, the
Company has not, for a period of six (6) months prior to the date hereof sold,
offered for sale or solicited any offer to buy any of its securities in the
United States in a manner that would be integrated with the offer and sale of
Common Shares and would cause the exemption from registration set forth in Rule
506 of Regulation D to become unavailable with respect to the offer and sale of
the Common Shares.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      APPENDIX
“B”

       

      LOCK-UP
AGREEMENT

       

      

       

      _____________________,
2008

       

      

       

      BMO
Nesbitt Burns Inc. (“BMO”)

      Wellington
West Capital Markets Inc.

      BBY
Ltd.  (the “Agents”)

      

      c/o BMO
Nesbitt Burns Inc.

      1 First
Canadian Place

      100 King
Street West, 4th
Floor

      Toronto,
Ontario M5X 1H3

      Canada

      

       

      Re:           Legend
International Holdings, Inc. – Lock up Agreement

       

      Ladies and
Gentlemen:

       

      The
undersigned understands that the Agents have entered into an Agency Agreement
dated June __, 2008 (the “Agency Agreement”) with Legend International Holdings,
Inc. (the “Company”) providing for an offering (the “Offering”) of Common Shares
(the “Common Shares”).  Initially capitalized terms not otherwise
defined herein shall have the meaning given to them in the Agency
Agreement.

       

      In
consideration of the benefit that the Offering will confer upon the undersigned,
and for other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the undersigned agrees that from the execution of
the Agency Agreement for a period of 360 days, the undersigned agrees that he
shall not (i) acquire, transfer or dispose of any Common Shares or other
securities of the Company over which he has beneficial ownership, or control or
direction, in whole or in part, or enter into any agreement or arrangement in
respect of the foregoing, or (ii) enter into any agreement or arrangement under
which any of the economic consequences of his ownership of Common Shares, are
transferred or acquired by another person or company, whether that agreement or
arrangement may be settled by the delivery of Common Shares or other securities
or cash, or agree to become bound to do any of the foregoing, or (iii) disclose
to the public any intention to do any of the foregoing, in each case without
BMO’s written consent.

       

      The
undersigned understands that the Agents are relying upon this Lock-Up Agreement
in proceeding toward consummation of the Offering.  The undersigned
further understands that this Lock-Up Agreement is irrevocable and shall be
binding upon the undersigned’s legal representatives, successors, and assigns,
and shall enure to the Agents and their legal representatives, successors and
assigns.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        Notwithstanding
the foregoing, the Gutnick Group shall not be prohibited from:

         

        (i) Selling Common Shares to an
industry participant such as a mining company or fertilizer manufacturer or user
in an off-market transaction;

         

        (ii)  Selling up to 2,000,000
Common Shares commencing 180 days after the Closing Date; provided that BMO
shall have the right to act as the broker for any sales that are made on market;
and

         

        (iii)  Selling Common Shares
in response to a takeover offer for all of the outstanding Common Shares of the
Company.

         

        Very truly yours,

         

        

         

        

        

         

        

         

        

         

        Number of
Common
Shares:                                                                ________________

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      APPENDIX
“C”

       

      MINERAL
PROJECTS DESCRIPTION

       

      The Legend
landholdings, prospective for phosphate, diamonds and base metals cover 40,525
square acres in Queensland, Australia and 4.7 million square acres in the
Northern Territory, Australia. In Queensland, Legend’s holdings are historical
phosphate deposits located in the Mt. Isa district, along the margin of the
Georgina Basin which is host to major base metal and phosphate
deposits.

      

      Legend’s
mining tenements are divided into the following project areas:

      

      
        	
                 
      

              	
                ·

              	
                Phosphate
      Projects:

              

      

      
        	
                 
      

              	
                §

              	
                the
      Queensland Phosphates &

              

      

      
        	
                 
      

              	
                §

              	
                Selby
      Project, Northern Territory.

              

      

      

      
        	
                 
      

              	
                ·

              	
                Diamond
      Projects:

              

      

      
        	
                 
      

              	
                §

              	
                The
      Foelsche Project encompassing:

              

      

      
        	
                 
      

              	
                §

              	
                McArthur
      River, Northern Territory.

              

      

      
        	
                 
      

              	
                §

              	
                Glyde
      River, Northern Territory.

              

      

      
        	
                 
      

              	
                §

              	
                Foelsche,
      Northern Territory

              

      

      
        	
                 
      

              	
                §

              	
                Abner
      Range, Northern Territory.

              

      

      
        	
                 
      

              	
                §

              	
                Cox,
      Northern Territory.

              

      

      

      
        	
                 
      

              	
                ·

              	
                All
      of these project areas are also prospective for Base
    Metals.

              

      

      

      Queensland
Projects

      

      Geological
History of the Georgina Basin of Queensland.

      

      The
Georgina Basin hosts a number of phosphorate deposits near Mt Isa. In
particular, the Beetle Creek Formation and Thorntonia Limestone contain three
key phosphatic lithologies: pelletal, microsphorite and replacement-types. The
Lady Annie, Lady Jane, D-Tree & Thorntonia phosphate deposits lie within the
Beetle Creek Formation and its lateral facies equivalents. (Howard,
1986)

      

      The Inca
Formation is the youngest unit, composed of  laminated siltstones and
shales and conformably overlies Thorntonia Limestone. The Thorntonia Limestone
is a dolomitic limestone with increasing chert bands toward top. It is the
lateral facies equivalent to the Beetle Creek Formation, with which it
intertongues. The Beetle Creek Formation hosts the phosphate deposits, composed
predominately of interbedded coarse to fine grained phosphorites, siltstone,
claystone, chert and some descrete carbonate lenses. Locally, karst-like
surfaces are filled with chalky high-grade phosphate that appear to replace the
underlying limestone. This unit conformably and gradationally overlies Mt Hendry
Formation which is a discontinuous conglomerate and sandstone. (Cook &
Elgueta, 1986)

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      All the
deposits formed under coastal, shallow marine conditions. These Cambrian
sediments are covered by up to 71m of Mesozoic claystone and sandstone and
Cainozoic alluvium and eluvium. Coarse to medium grained skeletal-ovulitic
grainstone and packstone phosphorites are thought to have formed through
reworking, transport and accumulation grains.  Phosphatic
microsphorite are thought to have formed from the suspension of very fine
grained detrital material or precipitation from the water column in very shallow
supratidal areas. (Cook & Elgueta, 1986) The replacement phosphates are
thought to have occurred due to post-depositional phosphate replacement of
carbonate, such as found at D-Tree.

      

      Exploration
History and Forward Work Program

      

      The Lady
Annie, Lady Jane, D-Tree & Thorntonia phosphate deposits are located
approximately 130km north west of Mt Isa in the Georgina Basin. The historically
published deposits lie within the same geological rock unit and their size and
tonnages are as follows:

      

      
        	
                Deposit

              	
                Classification

              	
                Estimated
      million tonnes

              	
                %
      P2O5

              
	
                Lady
      Annie

              	
                Non-reserve
      mineralized material*

              	
                293

              	
                16.6
      1

              
	
                Lady
      Jane

              	
                Non-reserve
      mineralized material*

              	
                193

              	
                17.6
      1

              

      

      

      * Such
non-reserve mineralized material would not qualify as a reserve until a
comprehensive evaluation based upon unit cost, grade, recoveries and other
material factors concludes being both legal and economic
feasibility

      

      Source of
Information

      Historically
published resources & reserves in Queensland  Minerals Mines &
Projects, 4th
Edition. From:1 1990
Freeman, M.J., Shergold, J.H., Morris, D.G., & Walter, M.R. Late Proterozoic
And Palaeozoic Basins of Central and Northern Australia- Regional Geology And
Mineralisation. 21996
Draper, J.J Phosphate- Queensland Mineral Commodity Report, Queensland
Government Mining Journal, 97 (1131) 14-25.

      

      Past
feasibility studies by BH South Ltd (Rogers J.K, 1988) occurred in 1974 on a
phosphate rock beneficiation plant and slurry pipeline to the Queensland coast.
Beneficiation test shafts and mining scale trenches were dug. A pilot plant
built in 1973 produced 34% P205 concentrate at Lady Annie from 17% P205 rock
(Cook, P.J. 1989). Feasiblity was concluded at that time at a production rate of
4-5 million tonnes per year (Cook, P.J. 1989).

      

      A thorough
Open File Historical data review has commenced. Past exploration and reserve
estimation data is being acquired and compiled into a global database for use in
re-validating the past surveys, drilling and sampling. Appropriate Heritage,
Environmental and Proposals for Works approvals are being sought. A detailed
field sampling and drilling program is being developed in full awareness of
quality control and compliance procedures to verify past data and re-establish
the volumes and percentage of phosphate in these deposits. It is anticipated
that fieldwork will commence mid 2008.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      Scoping
Study

      

      On April
16, 2008 the Company released a phosphate rock preliminary scoping study on its
phosphate projects in Queensland conducted by British Sulphur, a division of CRU
International.

      

      British
Sulphur, the leading business consultancy in the fertilizer and inorganic
chemical sector for over 50 years, have prepared initial project capital and
operating costs assuming sale prices for phosphate of US$100 per tonne fob,
US$200 per tonne fob, US$300 per tonne fob and  US$400 per tonne fob.
In March 2008, sales of Moroccan product at US$400 per tonne fob Morocco have
been recorded.

      

      The report
sets out the following gross earnings estimates (US$ millions) for the
project:

      

      
        	 
      	 	
                Current
      price case

                fob

                US$400/t
      rock

              	 	 	
                Base
      case

                fob

                 US$200/t
      rock

              	 	 	
                High
      case

                fob

                 US$300/t
      rock

              	 	 	
                Worst
      case

                fob

                 US$100/t
      rock

              	 
	
                Capital
      Cost(1)

              	 	 	826.6	 	 	 	826.6	 	 	 	826.6	 	 	 	826.6	 
	
                Annual
      Revenue

              	 	 	2,000.0	 	 	 	1,000.0	 	 	 	1,500.0	 	 	 	500.0	 
	
                Annual
      Costs

              	 	 	298.4	 	 	 	298.4	 	 	 	298.4	 	 	 	298.4	 
	
                Annual
      Gross Earnings

              	 	 	1,701.7	 	 	 	701.7	 	 	 	1,201.7	 	 	 	201.7	 

      

      
        	
                (1)

              	
                capital
      costs include a 15% contingency.

              

      

      
        	
                      
                  (2)

                

              	
                 

              

      

      

      Legend
International Holdings has historically defined phosphate deposits of 1,463
million tonnes at 16% P2O5 on its Queensland land holdings. British Sulphur has
completed the preliminary scoping study based on the following:

      

      
        	
                 
      

              	
                ·

              	
                a 10
      million tonne per year phosphate rock mine
site

              

      

       

      
        	
                 
      

              	
                ·

              	
                a
      beneficiation plant  generating 5 million tonne per year
      phosphate rock concentrate

              

      

       

      
        	
                 
      

              	
                ·

              	
                a
      300 kilometre slurry pipeline from Lady Annie to the Port of
      Karumba

              

      

       

      
        	
                 
      

              	
                ·

              	
                the
      development of a drying facility, plus loading and berthing areas at the
      Port of Karumba

              

      

       

      
        	
                 
      

              	
                ·

              	
                barge
      transfers from shallow draught barges out to larger vessels moored off the
      coast in the Karumba Roadstead waters ready to ship product to
      Asia.

              

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      The
Company will be commencing the revalidation of historical deposit estimates by
drilling a number of twin holes across representative samples throughout the
deposit zone, revalidating the metallurgical testwork by sending bench and pilot
plant scale samples to an independent external engineering company to develop a
flow sheet and final plant design, and conducting a full technical feasibility
study and environmental impact statement.

      

      Offtake
Agreement

      

      On May 5,
2008 the Company announced that it had entered into a long term offtake and
supply agreement for a minimum of 3 million tonnes annually of concentrated rock
phosphate from its Lady Annie project in Queensland, Australia, with Indian
Farmers Fertiliser Cooperative Limited (“IFFCO”). Legend and IFFCO have decided
to pursue the Project in Joint Venture, the terms of which are under
discussion.

      

      IFFCO is
India’s largest fertilizer enterprise, a cooperative with over 50 million
farmers associated with it, primarily engaged in production and marketing of
nitrogenous and phosphate fertilizers in India. IFFCO has five fertilizer plants
in India with a domestic annual capacity of producing 4.3 million tonnes of
phosphatic fertilizers and 4.2 million tonnes of nitrogenous fertilizers. In
addition to setting up the fertilizer manufacturing units in India, IFFCO has
made strategic investments in several joint ventures in India and overseas. More
details on IFFCO are available on its website www.iffco.nic.in

      

      Financing
and Joint Venture options for the capital cost of Legend’s phosphate project are
currently under discussion between the parties as is the price of the phosphate
rock. The price of the rock will be negotiated on a fair and equitable basis for
both companies based on international market prices applicable for the Indian
market with an appropriate discount. Negotiations in regards to finance options
should be concluded in coming months

      

      Mineralisation

      

      No known
mineral reserves are known on our land in Queensland, however phosphate
resources are recorded.  Our proposed program will be developed with a
view to verify existing data and prove the deposits up to deposit
grade.

      

      Northern
Territory Exploration Interests

      

      Geological
History and Kimberlite Occurrence in the McArthur River Basin.

      

      The North
Australian Craton is one of two principal tectonic domains in the Northern
Territory. The dominant tectonic episode for formation of the Craton, reworking
the Archaean (or Palaeo-Proterozoic) basement, was the Barramundi Orogeny at
1865-1850Ma. Outcrops of these older deformed and metamorphosed rocks are now
surrounded by younger basins.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    The
McArthur Group is the principal element of cover over the North Australian
Craton, composed of mildly deformed and unmetamorphosed Meso-proterozoic
(1800-570Ma) dolomitic carbonate, evaporates and sediments. The McArthur River
Basin extends over 180,000 square kilometers and its sediments host a number of
base metal occurrences including the McArthur Lead-Zinc-Silver shale-hosted
deposit; strata-bound, disseminated Lead-Zinc deposits; the Redbank Copper
deposits and Cobalt, Uranium and Iron.

    

    The
McArthur River Basin is covered by approximately 100 meters of Cambrian Bukalara
sandstone and flood basalts in the south. Widespread, young Cretaceous
sedimentation covered the region but much has been removed through erosion. One
remnant of Cretaceous sediment is host to the Merlin field which represents the
youngest volcanic event in the region.

    

    The major
structural feature in the McArthur Basin is the north to north-west trending
Batten Trough or Batten Fault Zone approximately 70 kilometres wide, to which
Legend’s holdings lie to the east. The Trough is bound on the west by the Emu
Fault which transects Legend’s holdings in the McArthur River Project. The
associated Mallapunyah and Calvert faults are approximately 50 kilometres apart
and also trend north-west.

    

    The
presence of microdiamonds across the North Australian Craton defies geological
boundaries, extending right across its heart. This wide distribution may be due
to recycling of the microdiamonds through the younger Cretaceous by fluvial
processes. However, an element of high-level fracture control is now evidenced
by the Merlin deposits. Since the discovery of the Merlin field, diamond
exploration approaches have shifted from Proterozoic mobile belts with little
consideration of regional geology, to incorporate the range of fracture zones in
the North Australian Craton. The North Australian Craton is extensively
underlain by Archaean basement and deep lithospheric, cratonic rocks may be
tapped by younger kimberlites as they intrude into these fractures. The Merlin
kimberlites are certainly younger than their Cambrian sandstone host, yet older
than their Cretaceous cover.

    

    Exploration
History and Forward Work Program

    

    Selby
Project

    

    The Selby
project is located 100km SW of the coast of the Gulf of Carpentaria in the
McArthur Basin, adjacent to the Georgina Basin which hosts Legend’s Queensland
phosphates. Historically recorded phosphate rock outcrops at surface in
recurrent lenses over a 60 kilometre strike. Uranium, which is a common
by-product of marine phosphate deposits, accounting for a significant proportion
of the world’s Uranium production, is also present.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    An
historical Open File review of the Selby region has also identified base metal
results from stream sampling adjacent to the Karns Dolomite and regional fault
systems. Historical data also reveals that the region remains prospective for
diamonds.

    

    A
multi-facetted approach to exploration of the Selby phosphate was established in
2007. Geological mapping, rock chip, stream and loam sampling, diamond and RC
drilling was undertaken. Early results from Legend’s rock chip sampling of
phosphate-bearing siltstones are as such:

    

    Geochemical
analysis of sampling will be undertaken to assist in the further development of
this program, in order to adequately delineate the extent of phosphate present.
Further work is anticipated to explore for structural or shale-hosted base
metals.

    

    McArthur
River

    

    Legend’s
base metal project is situated approximately 20 kilometres south west of
Borroloola. The Emu fault zone which runs through Legend’s tenements is a
mineralised geological feature hosting the HYC Pyritic Shale base metal prospect
and a number of known base metal deposits accounting for 8% of world base metal
(lead-zinc-silver) production.

    

    A detailed
collation and analysis of a significant amount of available historical open file
geophysical and geochemical data is underway. Tracks have been made to enable
access for a detailed geological mapping program, stream & loam sampling.
149 RC/RAB drill holes have been approved and this drilling will commence in
2008.

    

    Abner
Range

    

    The Abner
Range Plateau is approximately 300 kilometers south of Borroloola, west of The
Gulf of Carpentaria in the Northern Territory. It is host to the diamondiferous
Abner Range Kimberlite part of the Merlin diamondiferous intrusive field, only
seven kilometres north of Legend’s holdings. Past indicator mineral sampling by
Ashton and Rio Tinto has recovered macrodiamonds, microdiamonds and chromite
indicator minerals with no primary source yet determined.

    

    Airborne
Electro-Magnetic (“EM”), magnetic and gravity surveys flown in late 2006 have
identified numerous EM, gravity & magnetic anomalies and grid-based loam
samples were taken as follow up to this result and of other
targets.

    

    Geochemical
analysis of the results of the loam gridding and sampling will be used to inform
regions of high priority for ground gravity surveys. This will be conducted as a
part of the ongoing diamond core and reverse circulation drilling
program.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Glyde
Project

    

    The Glyde
River is in the Batten Trough and hosts 40 kilometres of alluvial gravels
sourced from numerous diamond bearing catchments including the entire Merlin
diamond field. The pipes in the Merlin field are located on the eastern shoulder
of the Battern Trough only six kilometres east of the Emu Fault. They have
intruded the Cambrian Bukalara sandstone and were emplaced around the time of
the Alice Springs Orogeny.

    

    The Legend
tenement is north of the HYC Pyritic Shale base metal prospect and this Member
has been intersected in several drill holes. CRAE has explored the tenement area
for kimberlite. Ashton collected two bulk samples from separate drainages and
had diamond responses. Helicopter magnetics and EM covered the northern part of
the tenement as part of Rio Tinto’s exploration around the Merlin pipe
field.

    

    An
airborne geophysical program flown in late 2006 located many targets for
drilling. Bulk sampling, stream and loam sampling and an RC drilling program was
undertaken in December 2006.

    

    The
geochemistry of drilling and sampling undertaken in 2006 will be analysed in
conjunction with geophysical and geological data in order to delineate priority
targets. The tenement covering the Glyde River to the north will be examined for
alluvial diamonds.

    

    Foelsche
Project

    

    Legend’s
Foelsche Project tenements lie east of the Glyde Project and Merlin diamond
field. They are bound by regional scale faults which act as fluid conduits for
mineralisation and have uplifted basement rocks up to lie against younger
sandstones. The area contains historical trains of kimberlite indicator minerals
in streams draining the area.

    

    In 2005,
airborne EM/magnetics were flown by Astro which identified priority geophysical
anomalies. These were investigated with ground gravity surveys and RC/diamond
drill holes in 2006. The source of the geophysical anomalies was attributed to
depressions in the Proterozoic sandstone bedrock which were infilled by younger
Cretaceous/Tertiary sediment. Similar infill sequences are known to typically
occur over kimberlites in the region.

    

    Many
exploration targets at Foelsche are not yet explored and numerous kimberlite
indicator mineral trains require follow-up. Re-appraisal of airborne
EM/magnetics, additional aeromagnetic surveys and follow-up drilling is planned
for the area.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Cox
Project

    

    The Cox
Project covers approximately 8,676.9 square kilometers and is located between
Roper Bar and Cape Crawford on the north western part of the Bauhinia Downs. In
the 1980’s indicator mineral sampling by Ashton and Rio Tinto recovered numerous
microdiamonds and three macrodiamonds. Magnetic anomalies and some chromite
indicator minerals were found but a primary source was not found by these
companies.

    

    Exploration
carried out over the Cox Project has included site investigations to verify
historical sampling results, a compilation and analysis of historic exploration
data from open-file reports and multi-client airborne magnetic data with a view
to developing an appropriate exploration strategy.

    

    A loam and
stream sampling program is being developed to chase the results observed in the
limited sampling undertaken to date. This would enable a thorough coverage of
transportation systems in the tenements.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    APPENDIX
“D”

     

    

     

    The
Company represents, warrants, covenants and agrees that:

     

    
      	
               
      

            	
              1.

            	
              The
      Company has complied with the Applicable Securities Laws of Canada in
      connection with the Offering.

            

    

     

    
      	
               
      

            	
              2.

            	
              The
      Company has not offered or sold Common Shares in Canada so as to require
      the filing or delivery of a prospectus (as such term is defined under the
      Applicable Securities Laws of
Canada).

            

    

     

    
      	
               
      

            	
              3.

            	
              The
      Company has not advertised or caused to be advertised the proposed sale of
      the Common Shares in any printed public media, radio, television or
      telecommunications, including electronic
  display.

            

    

     

    
      	
               
      

            	
              4.

            	
              The
      Company is not a “reporting issuer” (as such term is defined under the
      Applicable Securities Laws of Canada) in any province or territory of
      Canada.

            

    

     

    
      	
               
      

            	
              5.

            	
              The
      Common Shares are not listed for trading on any securities exchange in
      Canada.

            

    

     

    
      	
               
      

            	
              6.

            	
              If
      any Purchasers are resident in Canada, within 10 calendar days of the
      completion of the Offering, it shall file or cause to be filed a Form
      45-106F1, and any other documents required by applicable securities laws,
      with the applicable securities commission in Canada and shall pay the
      prescribed filing fee.

            

    

     

    
      	
               
      

            	
              7.

            	
              To
      the best of the Company’s knowledge, after giving effect to the Offering,
      residents of Canada and shareholders whose registered address is in Canada
      will not own directly or indirectly more than 10 per cent. of the issued
      and outstanding Common Shares, and such residents and shareholders will
      not represent in number more than 10 per cent of the total number of
      outstanding holders directly or indirectly of the issued and outstanding
      Common Shares.

            

    

     

    Each of
the Agents represents, warrants, covenants and agrees that:

     

    
      	
               
      

            	
              1.

            	
              It
      has complied with the Applicable Securities Laws of Canada in connection
      with the Offering.

            

    

     

    
      	
               
      

            	
              2.

            	
              It
      has not offered or sold Common Shares in Canada so as to require the
      filing or delivery of a prospectus (as such term is defined under the
      Applicable Securities Laws of
Canada).a5750729ex10_9.htm

    EXHIBIT
10.9

     

    REGISTRATION
RIGHTS AGREEMENT

     

    This
Registration Rights Agreement (this “Agreement”) is made and
entered into as of June 3, 2008, by and among Legend International Holdings,
Inc., a Delaware corporation (the “Company”), and BMO Nesbitt
Burns Inc. (“BMO”) on
behalf of the several purchasers (each a “Purchaser” and collectively,
the “Purchasers”) who
entered into Purchase Agreements (as defined below) with the Company in
connection with the Agency Agreement dated as of the date hereof (the “Agency
Agreement”) between the Company, BMO, Wellington West Capital Markets Inc. and
BBY Ltd.

     

    This
Agreement is made pursuant to the Securities Purchase Agreement, dated as of the
date hereof between the Company and the Purchasers ( collectively, the “Purchase
Agreement”).

     

    NOW,
THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement,
and for other good and valuable consideration, the receipt and adequacy of which
are hereby acknowledged, the Company and BMO on behalf of each of the Purchasers
agree as follows:

     

    1.           Definitions.  Capitalized
terms used and not otherwise defined herein that are defined in the Purchase
Agreement shall have the meanings given such terms in the Purchase
Agreement.  As used in this Agreement, the following terms shall have
the following meanings:

     

    “Advice” shall have the
meaning set forth in Section 6(d).

     

    “Affiliate” means, with
respect to any person, any other person which directly or indirectly controls,
is controlled by, or is under common control with, such person.

     

    “Agreement” shall have the
meaning set forth in the Preamble.

     

    “Broker Warrants” shall have
the meaning set forth in the Agency Agreement.

     

    “Business Day” means a day,
other than a Saturday or Sunday, on which banks in Toronto, Ontario are open for
the general transaction of business.

     

    “Closing” has the meaning set
forth in the Purchase Agreement.

     

     “Closing Date” has the meaning
set forth in the Purchase Agreement.

     

    “Commission” means the
Securities and Exchange Commission.

     

    “Common Stock” means the
common stock of the Company, par value $.001 per share, and any securities into
which such common stock may hereinafter be reclassified.

     

    “Company” shall have the
meaning set forth in the Preamble.

     

    “Effective Date” means the
date that the Registration Statement filed pursuant to Section 2(a) is first
declared effective by the Commission.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    “Effectiveness Deadline”
means, with respect to the Initial Registration Statement or the New
Registration Statement, the 120th calendar day following the Closing Date; provided, however, that if
the Company is notified by the Commission that the Initial Registration
Statement will not be reviewed or is no longer subject to further review and
comments, the Effectiveness Deadline as to such Registration Statement shall be
the fifth (5th) Trading Day following the date on which the Company is so
notified if such date precedes the dates otherwise required above; provided, further, that if
the Effectiveness Deadline falls on a Saturday, Sunday or other day that the
Commission is closed for business, the Effectiveness Deadline shall be extended
to the next Business Day on which the Commission is open for
business.

     

    “Effectiveness Period” shall
have the meaning set forth in Section 2(b).

     

    “Event” shall have the meaning
set forth in Section 2(c).

     

    “Event Date” shall have the
meaning set forth in Section 2(c).

     

    “Exchange Act” means the
Securities Exchange Act of 1934, as amended, and the rules and regulations
promulgated thereunder.

     

    “Filing Deadline” means, with
respect to the Initial Registration Statement required to be filed pursuant to
Section 2(a), the 45th calendar day following the Closing Date, provided, however, that if
the Filing Deadline falls on a Saturday, Sunday or other day that the Commission
is closed for business, the Filing Deadline shall be extended to the next
business day on which the Commission is open for business.

     

    “Holder” or “Holders” means the holder or
holders, as the case may be, from time to time of Registrable
Securities.

     

    “Indemnified Party” shall have
the meaning set forth in Section 5(c).

     

    “Indemnifying Party” shall
have the meaning set forth in Section 5(c).

     

    “Initial Registration
Statement” means the initial Registration Statement filed pursuant to
Section 2(a) of this Agreement.

     

    “Liquidated Damages” shall
have the meaning set forth in Section 2(c).

     

    “Losses” shall have the
meaning set forth in Section 5(a).

     

    “New Registration Statement”
shall have the meaning set forth in Section 2(a).

     

     “Person” means an individual
or corporation, partnership, trust, incorporated or unincorporated association,
joint venture, limited liability company, joint stock company, government (or an
agency or subdivision thereof) or other entity of any kind.

     

    “Principal Market” means the
Trading Market on which the Common Stock is primarily listed on and quoted for
trading, which, as of the Closing Date, shall be the OTC Bulletin
Board.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    “Proceeding” means an action,
claim, suit, investigation or proceeding (including, without limitation, an
investigation or partial proceeding, such as a deposition), whether commenced or
threatened.

     

    “Prospectus” means the
prospectus included in a Registration Statement (including, without limitation,
a prospectus that includes any information previously omitted from a prospectus
filed as part of an effective registration statement in reliance upon Rule 430A
promulgated under the Securities Act), as amended or supplemented by any
prospectus supplement, with respect to the terms of the offering of any portion
of the Registrable Securities covered by a Registration Statement, and all other
amendments and supplements to the Prospectus, including post effective
amendments, and all material incorporated by reference or deemed to be
incorporated by reference in such Prospectus.

     

    “Purchase Agreement” shall
have the meaning set forth in the Recitals.

     

    “Purchaser” or “Purchasers” shall have the
meaning set forth in the Preamble.

     

    “Registrable Securities” means
the Common Stock underlying the Broker Warrants and all of the Shares, provided that Shares shall
cease to be Registrable Securities upon the earliest to occur of the following:
(A) sale pursuant to a Registration Statement or Rule 144 under the Securities
Act (in which case, only such security sold shall cease to be a Registrable
Security); or (B) becoming eligible for sale without restriction under Rule 144
by Holders who are not affiliates of the Company.

     

    “Registration Statements”
means any one or more registration statements of the Company filed under the
Securities Act that covers the resale of any of the Registrable Securities
pursuant to the provisions of this Agreement (including without limitation the
Initial Registration Statement, the New Registration Statement and any Remainder
Registration Statements), amendments and supplements to such Registration
Statements, including post-effective amendments, all exhibits and all material
incorporated by reference or deemed to be incorporated by reference in such
Registration Statements.

     

    “Remainder Registration
Statement” shall have the meaning set forth in Section 2(a).

     

     “Rule 144” means Rule 144
promulgated by the Commission pursuant to the Securities Act, as such Rule may
be amended from time to time, or any similar rule or regulation hereafter
adopted by the Commission having substantially the same effect as such
Rule.

     

    “Rule 415” means Rule 415
promulgated by the Commission pursuant to the Securities Act, as such Rule may
be amended from time to time, or any similar rule or regulation hereafter
adopted by the Commission having substantially the same effect as such
Rule.

     

    “Rule 424” means Rule 424
promulgated by the Commission pursuant to the Securities Act, as such Rule may
be amended from time to time, or any similar rule or regulation hereafter
adopted by the Commission having substantially the same effect as such
Rule.

     

    "SEC Guidance" means (i) any
publicly-available written or oral guidance, comments, requirements or requests
of the Commission staff and (ii) the Securities Act.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    “Securities Act” means the
Securities Act of 1933, as amended, and the rules and regulations promulgated
thereunder.

     

    “Shares” means the shares of
Common Stock issued or issuable to the Purchasers pursuant to the Purchase
Agreement.

     

    “Trading Day” means (i) a day
on which the Common Stock is listed or quoted and traded on its Principal Market
(other than the OTC Bulletin Board), or (ii) if the Common Stock is not listed
on a Trading Market (other than the OTC Bulletin Board), a day on which the
Common Stock is traded in the over the counter market, as reported by the OTC
Bulletin Board, or (iii) if the Common Stock is not quoted on any Trading
Market, a day on which the Common Stock is quoted in the over the counter market
as reported in the “pink sheets” by Pink Sheets LLC (or any similar organization
or agency succeeding to its functions of reporting prices); provided, that in the event
that the Common Stock is not listed or quoted as set forth in (i), (ii) and
(iii) hereof, then Trading Day shall mean a Business Day.

     

    “Trading Market” means
whichever of the New York Stock Exchange, the American Stock Exchange, the
NASDAQ Global Select Market, the NASDAQ Global Market, the NASDAQ Capital Market
or OTC Bulletin Board on which the Common Stock is listed or quoted for trading
on the date in question.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    2.          
Registration.

     

    (a)           On
or prior to the Filing Deadline, the Company shall prepare and file with the
Commission a Registration Statement covering the resale of all of the
Registrable Securities not already covered by an existing and effective
Registration Statement for an offering to be made on a continuous basis pursuant
to Rule 415 or, if Rule 415 is not available for offers and sales of the
Registrable Securities, by such other means of distribution of Registrable
Securities as the Holders may reasonably specify (the “Initial Registration
Statement”).  The Initial Registration Statement shall be an
amendment to the Company’s existing registration statement on Form S-1 (File No.
333-145082) (except if the Company is then ineligible to register for resale all
of the Registrable Securities on such Form S-1, in which case such registration
shall be on such other form available to register for resale of the Registrable
Securities as a secondary offering) subject to the provisions of Section 2(d).
Notwithstanding the registration obligations set forth in this Section 2, in the
event the Commission informs the Company that all of the Registrable Securities
cannot, as a result of the application of Rule 415, be registered for resale as
a secondary offering on a single registration statement, the Company agrees to
promptly (i) inform each of the holders thereof and use its commercially
reasonable efforts to file amendments to the Initial Registration Statement as
required by the Commission and/or (ii) withdraw the Initial Registration
Statement and file a new registration statement (a “New Registration Statement”),
in either case covering the maximum number of Registrable Securities permitted
to be registered by the Commission, on Form S-1 or such other form available to
register for resale the Registrable Securities as a secondary offering; provided, however, that prior
to filing such amendment or New Registration Statement, the Company shall be
obligated  to use its commercially reasonable efforts to advocate with
the Commission for the registration of all of the Registrable Securities in
accordance with the SEC Guidance, including without limitation, the Manual of
Publicly Available Telephone Interpretations D.29. Notwithstanding any other
provision of this Agreement and subject to the payment of liquidated damages in
Section 2(c), if any SEC Guidance sets forth a limitation on the number of
Registrable Securities permitted to be registered on a particular Registration
Statement as a secondary offering (and notwithstanding that the Company used
diligent efforts to advocate with the Commission for the registration of all or
a greater number of Registrable Securities), unless otherwise directed in
writing by a Holder as to its Registrable Securities, the number of Registrable
Securities to be registered on such Registration Statement will first be reduced
by Registrable Securities not acquired pursuant to the Purchase Agreements
(whether pursuant to registration rights or otherwise), and second by
Registrable Securities represented by Shares (applied, in the case that some
Shares may be registered, to the Holders on a pro rata basis based on the total
number of unregistered Shares held by such Holders, subject to a determination
by the Commission that certain Holders must be reduced first based on the number
of Shares held by such Holders).  In the event the Company amends the
Initial Registration Statement or files a New Registration Statement, as the
case may be, under clauses (i) or (ii) above, the Company will use its
commercially reasonable efforts to file with the Commission, as promptly as
allowed by Commission or SEC Guidance provided to the Company or to registrants
of securities in general, one or more registration statements on Form S-1 or
such other form available to register for resale those Registrable Securities
that were not registered for resale on the Initial Registration Statement, as
amended, or the New Registration Statement (the “Remainder Registration
Statements”).

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (b)           The
Company shall use its commercially reasonable efforts to cause each Registration
Statement to be declared effective by the Commission as soon as practicable and,
with respect to the Initial Registration Statement or the New Registration
Statement, as applicable, no later than the Effectiveness Deadline (including
filing with the Commission a request for acceleration of effectiveness in
accordance with Rule 461 promulgated under the Securities Act within five (5)
Business Days after the date that the Company is notified (orally or in writing,
whichever is earlier) by the Commission that such Registration Statement will
not be “reviewed,” or not be subject to further review and the effectiveness of
such Registration Statement may be accelerated), and shall use its commercially
reasonable efforts to keep each Registration Statement continuously effective
under the Securities Act until the earlier of (i) such time as all of the
Registrable Securities covered by such Registration Statement have been publicly
sold by the Holders or (ii) the date that all Registrable Securities covered by
such Registration Statement may be sold by non-affiliates without restriction
under Rule 144 as determined by counsel to the Company pursuant to a written
opinion letter to such effect, addressed and reasonably acceptable to the
Company’s transfer agent (the “Effectiveness
Period”).  The Company shall request effectiveness of a
Registration Statement as of 5:00 p.m. New York City time on a Trading
Day.  The Company shall promptly notify the Holders via facsimile or
electronic mail of a “.pdf” format data file of the effectiveness of a
Registration Statement within two (2) business days of the Effective Date. The
Company shall, by 9:30 a.m. New York City Time on the second Trading Day after
the Effective Date, file a final Prospectus with the Commission, as required by
Rule 424(b).  Failure to so notify the Holders on or before the third
Business Day after such notification or effectiveness or failure to file a final
Prospectus as aforesaid shall be deemed an Event under Section
2(c).

     

    (c)           If:
(i) the Initial Registration Statement is not filed with the Commission on or
prior to the Filing Deadline, (ii) the Initial Registration Statement or the New
Registration Statement, as applicable, is not declared effective by the
Commission (or otherwise does not become effective) for any reason on or prior
to the Effectiveness Deadline or (iii) after its Effective Date, (A) such
Registration Statement ceases for any reason (including without limitation by
reason of a stop order, or the Company’s failure to update the Registration
Statement), to remain continuously effective as to all Registrable Securities
for which it is required to be effective or (B) the Holders are not permitted to
utilize the Prospectus therein to resell such Registrable Securities, in the
case of (A) and (B), for more than an aggregate of 30 Trading Days (which need
not be consecutive) (other than during an Allowable Grace Period (as defined in
Section 2(e) of this Agreement)), (iv) a Grace Period (as defined in Section
2(e) of this Agreement) exceeds the length of an Allowable Grace Period, or (v)
after the date six months following the Closing Date, the Company fails to file
with the SEC any required reports under Section 13 or 15(d) of the 1934 Act such
that it is not in compliance with Rule 144(c)(1) as a result of which the
Holders who are not affiliates are unable to sell Registrable Securities without
restriction under Rule 144 (or any successor thereto), (any such failure or
breach in clauses (i) through (v) above being referred to as an “Event,” and,
for purposes of clauses (i), (ii) or (v), the date on which such Event occurs,
or for purposes of clause (iii), the date on which such 30 Trading Day
period  is exceeded, or for purposes of clause (iv) the date on which
such Allowable Grace Period is exceeded, being referred to as an “Event Date”), then in
addition to any other rights the Holders may have hereunder or under applicable
law, on each such Event Date and on each monthly anniversary of each such Event
Date (if the applicable Event shall not have been cured by such date) until the
applicable Event is cured, the Company shall issue to each Holder an amount of
Shares, as partial liquidated damages and not as a penalty (“Liquidated Damages”), equal
to 1.2% of the aggregate number of Shares purchased by such Holder pursuant to
the Purchase Agreement for any Registrable Securities held by such Holder on the
Event Date The Liquidated Damages pursuant to the terms hereof shall apply on a
daily pro-rata basis for any portion of a month prior to the cure of an Event,
except in the case of the first Event Date.  In the event that the
Company registers some but not all of the Registrable Securities, the 1.2% of
Liquidated Damages referred to above for any monthly period shall be reduced to
equal the percentage determined by multiplying 1.2% by a fraction, the numerator
of which shall be the number of Registrable Securities for which there is not an
effective Registration Statement at such time and the denominator of which shall
be the number of Registrable Securities at such time.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (d)           Notwithstanding
anything to the contrary herein, at any time after the Registration Statement
has been declared effective by the Commission, the Company may delay the
disclosure of material non-public information concerning the Company if the
disclosure of such information at the time is not, in the good faith judgment of
the Company, in the best interests of the Company (a “Grace Period”); provided, however, the
Company shall promptly (i) notify the Holders in writing of the existence of
material non-public information giving rise to a Grace Period (provided that the
Company shall not disclose the content of such material non-public information
to the Holders) or the need to file a post-effective amendment, as applicable,
and the date on which such Grace Period will begin, and (ii) notify the Holders
in writing of the date on which the Grace Period ends; provided, further, that no
single Grace Period shall exceed thirty (30) consecutive days, and during any
three hundred sixty-five (365) day period, the aggregate of all Grace Periods
shall not exceed an aggregate of sixty (60) days (each Grace Period complying
with this provision being an “Allowable Grace
Period”).   For purposes of determining the length of a
Grace Period, the Grace Period shall be deemed to begin on and include the date
the Holders receive the notice referred to in clause (i) above and shall end on
and include the later of the date the Holders receive the notice referred to in
clause (ii) above and the date referred to in such notice; provided, however, that no
Grace Period shall be longer than an Allowable Grace
Period.    Notwithstanding anything to the contrary, the
Company shall cause the Transfer Agent to deliver unlegended shares of Common
Stock to a transferee of a Holder in accordance with the terms of the Purchase
Agreement in connection with any sale of Registrable Securities with respect to
which a Holder has entered into a contract for sale prior to the Holder’s
receipt of the notice of a Grace Period and for which the Holder has not yet
settled.

     

    (e)           In
the event that Form S-1 is not  available for the registration of the
resale of Registrable Securities hereunder, the Company shall register the
resale of the Registrable Securities on another appropriate form reasonably
acceptable to the Holders.

     

    3.            
Registration
Procedures

     

    In
connection with the Company's registration obligations hereunder, the Company
shall:

     

    (a)           Not
less than five (5) Trading Days prior to the filing of a Registration Statement
and not less than one (1) Trading Day prior to the filing of any related
Prospectus or any amendment or supplement thereto (except for Annual Reports on
Form 10-K, and Quarterly Reports on Form 10-Q and Current Reports on Form 8-K
and any similar or successor reports), the Company shall, furnish to BMO copies
of such Registration Statement, Prospectus or amendment or supplement thereto,
as proposed to be filed, which documents will be subject to the review of BMO
(it being acknowledged and agreed that if BMO does not object to or comment on
the aforementioned documents within such five (5) Trading Day or one (1) Trading
Day period, as the case may be, then BMO shall be deemed to have consented to
and approved the use of such documents).  The Company shall not file
any Registration Statement or amendment or supplement thereto in a form to which
BMO reasonably objects in good faith, provided that, the Company is notified of
such objection in writing within the five (5) Trading Day or one (1) Trading Day
period described above, as applicable.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (b)           (i)  Prepare
and file with the Commission such amendments (including post effective
amendments) and supplements, to each Registration Statement and the Prospectus
used in connection therewith as may be necessary to keep such Registration
Statement continuously effective as to the applicable Registrable Securities for
its Effectiveness Period (except during an Allowable Grace Period); (ii) cause
the related Prospectus to be amended or supplemented by any required Prospectus
supplement (subject to the terms of this Agreement), and, as so supplemented or
amended, to be filed pursuant to Rule 424 (except during an Allowable Grace
Period); (iii) respond as promptly as reasonably practicable to any comments
received from the Commission with respect to each Registration Statement or any
amendment thereto and, as promptly as reasonably possible, provide the Holders
true and complete copies of all correspondence from and to the Commission
relating to such Registration Statement that pertains to the Holders as “Selling
Stockholders” but not any comments that would result in the disclosure to the
Holders of material and non-public information concerning the Company; and (iv)
comply with the provisions of the Securities Act and the Exchange Act with
respect to the disposition of all Registrable Securities covered by a
Registration Statement until such time as all of such Registrable Securities
shall have been disposed of (subject to the terms of this Agreement) in
accordance with the intended methods of disposition by the Holders thereof as
set forth in such Registration Statement as so amended or in such Prospectus as
so supplemented; provided,
however, that each Purchaser shall be responsible for the delivery of the
Prospectus to the Persons to whom such Purchaser sells any of the Shares
(including in accordance with Rule 172 under the Securities Act), and each
Purchaser agrees to dispose of Registrable Securities in compliance with the
plan of distribution described in the Registration Statement and otherwise in
compliance with applicable federal and state securities laws. In the case of
amendments and supplements to a Registration Statement which are required to be
filed pursuant to this Agreement (including pursuant to this Section 3(b)) by
reason of the Company filing a report on Form 10-K, Form 10-Q or Form 8-K or any
analogous report under the Exchange Act, the Company shall have incorporated
such report by reference into such Registration Statement, if applicable, or
shall file such amendments or supplements with the Commission on the same day on
which the Exchange Act report which created the requirement for the Company to
amend or supplement such Registration Statement was filed.

     

    (c)           Notify
the Holders (which notice shall, pursuant to clauses (iii) through (vi) hereof,
be accompanied by an instruction to suspend the use of the Prospectus until the
requisite changes have been made) as promptly as reasonably practicable (and, in
the case of (i)(A) below, not less than two Trading Days prior to such filing,
in the case of (iii) and (iv) below, not more than one Trading Day after such
issuance or receipt, in the case of (v) below, not less than one Trading Day
after a determination by the Company that the financial statements in any
Registration Statement have become ineligible for inclusion therein and, in the
case of (vi) below, not more than one Trading Day after the occurrence or
existence of such development) and (if requested by any such Person) confirm
such notice in writing no later than one Trading Day following the day (i)(A)
when a Prospectus or any Prospectus supplement or post effective amendment to a
Registration Statement is proposed to be filed; (B) when the Commission notifies
the Company whether there will be a “review” of such Registration Statement and
whenever the Commission comments in writing on any Registration Statement (in
which case the Company shall provide to each of the Holders true and complete
copies of all comments that pertain to the Holders as a “Selling Stockholder” or
to the “Plan of Distribution” and all written responses thereto, but not
information that the Company believes would constitute material and non-public
information); and (C) with respect to each Registration Statement or any post
effective amendment, when the same has become effective; (ii) of any request by
the Commission or any other Federal or state governmental authority for
amendments or supplements to a Registration Statement or Prospectus or for
additional information that pertains to the Holders as “Selling Stockholders” or
the “Plan of Distribution”; (iii) of the issuance by the Commission or any other
federal or state governmental authority of any stop order suspending the
effectiveness of a Registration Statement covering any or all of the Registrable
Securities or the initiation of any Proceedings for that purpose; (iv) of the
receipt by the Company of any notification with respect to the suspension of the
qualification or exemption from qualification of any of the Registrable
Securities for sale in any jurisdiction, or the initiation or threatening of any
Proceeding for such purpose; and (v) of the occurrence of any event or passage
of time that makes the financial statements included in a Registration Statement
ineligible for inclusion therein or any statement made in such Registration
Statement or Prospectus or any document incorporated or deemed to be
incorporated therein by reference untrue in any material respect or that
requires any revisions to such Registration Statement, Prospectus or other
documents so that, in the case of such Registration Statement or the Prospectus,
as the case may be, it will not contain any untrue statement of a material fact
or omit to state any material fact required to be stated therein or necessary to
make the statements therein (in the case of any Prospectus, form of prospectus
or supplement thereto, in light of the circumstances under which they were
made), not misleading.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (d)           Use
commercially reasonable efforts to avoid the issuance of, or, if issued, obtain
the withdrawal of (i) any order suspending the effectiveness of a Registration
Statement, or (ii) any suspension of the qualification (or exemption from
qualification) of any of the Registrable Securities for sale in any
jurisdiction, as soon as practicable.

     

    (e)           If
requested by a Holder, furnish to such Holder, without charge, at least one
conformed copy of each Registration Statement and each amendment thereto and all
exhibits to the extent requested by such Person (including those previously
furnished or incorporated by reference) promptly after the filing of such
documents with the Commission;
provided, that the Company shall have no obligation to provide any
document pursuant to this clause that is available on the Commission’s EDGAR
system.

     

    (f)           Prior
to any resale of Registrable Securities by a Holder, use its commercially
reasonable efforts to register or qualify or cooperate with the selling Holders
in connection with the registration or qualification (or exemption from the
registration or qualification) of such Registrable Securities for the resale by
the Holder under the securities or Blue Sky laws of such jurisdictions within
the United States as any Holder reasonably requests in writing, to keep each
registration or qualification (or exemption therefrom) effective during the
Effectiveness Period and to do any and all other acts or things reasonably
necessary to enable the disposition in such jurisdictions of the Registrable
Securities covered by each Registration Statement; provided, that the
Company shall not be required to qualify generally to do business in any
jurisdiction where it is not then so qualified, subject the Company to any
material tax in any such jurisdiction where it is not then so subject or file a
general consent to service of process in any such jurisdiction.

     

    (g)           If
requested by the Holders, cooperate with the Holders to facilitate the timely
preparation and delivery of certificates representing Registrable Securities to
be delivered to a transferee pursuant to the Registration Statement, which
certificates shall be free, to the extent permitted by the Purchase Agreement
and under law, of all restrictive legends, and to enable such Registrable
Securities to be in such denominations and registered in such names as any such
Holders may reasonably request.

     

    (h)           Following
the occurrence of any event contemplated by Section
3(c)(iii)-(v), as promptly as reasonably practicable (taking into account
the Company’s good faith assessment of any adverse consequences to the Company
and its stockholders of the premature disclosure of such event), prepare a
supplement or amendment, including a post effective amendment, to the affected
Registration Statements or a supplement to the related Prospectus or any
document incorporated or deemed to be incorporated therein by reference, and
file any other required document so that, as thereafter delivered, no
Registration Statement nor any Prospectus will contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein (in the case of any Prospectus, form of
prospectus or supplement thereto, in light of the circumstances under which they
were made), not misleading.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (i)           The
Company shall cooperate with the placement agent and any registered broker
dealer that is required to make a filing with Financial Industry Regulatory
Authority (“FINRA”)
pursuant to NASD Rule 2710 in connection with the resale of any Registrable
Securities by any Holder.

     

    4.           Registration
Expenses.  All fees and expenses incident to the Company’s
performance of or compliance with its obligations under this Agreement
(excluding any underwriting discounts and selling commissions and all legal fees
and expenses of legal counsel for any Holder) shall be borne by the Company
whether or not any Registrable Securities are sold pursuant to a Registration
Statement.  The fees and expenses referred to in the foregoing
sentence shall include, without limitation, (i) all registration and filing fees
(including, without limitation, fees and expenses (A) with respect to filings
required to be made with any Trading Market on which the Common Stock is then
listed for trading, (B) with respect to compliance with applicable state
securities or Blue Sky laws (including, without limitation, fees and
disbursements of counsel for the Company in connection with Blue Sky
qualifications or exemptions of the Registrable Securities and determination of
the eligibility of the Registrable Securities for investment under the laws of
such jurisdictions as requested by the Holders) (ii) printing expenses
(including, without limitation, expenses of printing certificates for
Registrable Securities and of printing prospectuses if the printing of
prospectuses is reasonably requested by the Holders of a majority of the
Registrable Securities included in the Registration Statement), (iii) messenger,
telephone and delivery expenses, (iv) fees and disbursements of counsel for the
Company, (v) Securities Act liability insurance, if the Company so desires such
insurance, and (vi) fees and expenses of all other Persons retained by the
Company in connection with the consummation of the transactions contemplated by
this Agreement.  In addition, the Company shall be responsible for all
of its internal expenses incurred in connection with the consummation of the
transactions contemplated by this Agreement (including, without limitation, all
salaries and expenses of its officers and employees performing legal or
accounting duties), the expense of any annual audit and the fees and expenses
incurred in connection with the listing of the Registrable Securities on any
securities exchange as required hereunder.  In no event shall the
Company be responsible for any underwriting, broker or similar fees or
commissions of any Holder or, except to the extent provided for in the
transaction documents related to the Purchase Agreements, any legal fees or
other costs of the Holders.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    5.           Indemnification.

     

    (a)            Indemnification by the
Company.  The Company shall, notwithstanding any termination of
this Agreement, indemnify, defend and hold harmless each Holder, the officers,
directors, agents, partners, members, managers, stockholders, Affiliates and
employees of each of them, each Person who controls any such Holder (within the
meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act)
and the officers, directors, partners, members, managers, stockholders, agents
and employees of each such controlling Person, to the fullest extent permitted
by applicable law, from and against any and all losses, claims, damages,
liabilities, costs (including, without limitation, reasonable costs of
preparation and investigation and reasonable attorneys' fees) and expenses
(collectively, “Losses”), as incurred, that
arise out of or are based upon (i) any untrue or alleged untrue statement of a
material fact contained in any Registration Statement, any Prospectus or any
form of prospectus or in any amendment or supplement thereto or in any
preliminary prospectus, or arising out of or relating to any omission or alleged
omission to state a material fact required to be stated therein or necessary to
make the statements therein (in the case of any Prospectus or form of prospectus
or supplement thereto, in light of the circumstances under which they were made)
not misleading, or (ii) any violation or alleged violation by the Company of the
Securities Act, Exchange Act or any state securities law or any rule or
regulation thereunder, in connection with the performance of its obligations
under this Agreement, except to the extent, but only to the extent, that (A)
such untrue statements, alleged untrue statements, omissions or alleged
omissions are based solely upon information regarding such Holder furnished in
writing to the Company by such Holder expressly for use therein, or to the
extent that such information relates to such Holder or such Holder's proposed
method of distribution of Registrable Securities and was reviewed and approved
by such Holder expressly for use in the Registration Statement, such Prospectus
or such form of Prospectus or in any amendment or supplement thereto, (B) in the
case of an occurrence of an event of the type specified in Section
3(c)(iii)-(v), related to the use by a Holder of an outdated or defective
Prospectus after the Company has notified such Holder in writing that the
Prospectus is outdated or defective and prior to the receipt by such Holder of
the Advice contemplated and defined in Section 6(e) below,
but only if and to the extent that following the receipt of the Advice the
misstatement or omission giving rise to such Loss would have been corrected or
(C) any such Losses arise out of the Purchaser’s (or any other indemnified
Person’s) failure to send or give a copy of the Prospectus or supplement (as
then amended or supplemented), if required, to the Persons asserting an untrue
statement or alleged untrue statement or alleged untrue statement or omission or
alleged omission at or prior to the written confirmation of the sale of
Registrable Securities to such Person if such statement or omission was
corrected in such Prospectus or supplement.  The Company shall notify
the Holders promptly of the institution, threat or assertion of any Proceeding
arising from or in connection with the transactions contemplated by this
Agreement of which the Company is aware.  Such indemnity shall remain
in full force and effect regardless of any investigation made by or on behalf of
an Indemnified Party (as defined in Section 5(c)) and
shall survive the transfer of the Registrable Securities by the
Holders.

     

    (b)            Indemnification by
Holders. Each Holder shall, severally and not jointly, indemnify and hold
harmless the Company, its directors, officers, agents and employees, each Person
who controls the Company (within the meaning of Section 15 of the Securities Act
and Section 20 of the Exchange Act), and the directors, officers, agents or
employees of such controlling Persons, to the fullest extent permitted by
applicable law, from and against all Losses, as incurred, arising out of or are
based upon any untrue or alleged untrue statement of a material fact contained
in any Registration Statement, any Prospectus, or any form of prospectus, or in
any amendment or supplement thereto or in any preliminary prospectus, or arising
out of or relating to any omission or alleged omission of a material fact
required to be stated therein or necessary to make the statements therein (in
the case of any Prospectus, or any form of prospectus or supplement thereto, in
light of the circumstances under which they were made) not misleading (i) to the
extent, but only to the extent, that such untrue statements or omissions are
based solely upon information regarding such Holder furnished in writing to the
Company by such Holder expressly for use therein or (ii) to the extent, but only
to the extent, that such information relates to such Holder or such Holder’s
proposed method of distribution of Registrable Securities and was reviewed and
approved by such Holder expressly for use in a Registration Statement, such
Prospectus or such form of Prospectus or in any amendment or supplement thereto
or (iii) in the case of an occurrence of an event of the type specified in Section
3(c)(iii)-(vi), to the extent, but only to the extent, related to the use
by such Holder of an outdated or defective Prospectus after the Company has
notified such Holder in writing that the Prospectus is outdated or defective and
prior to the receipt by such Holder of the Advice contemplated in Section
6(e).  In no event shall the liability of any selling Holder
hereunder be greater in amount than the dollar amount of the net proceeds
received by such Holder upon the sale of the Registrable Securities giving rise
to such indemnification obligation.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (c)            Conduct of Indemnification
Proceedings. If any Proceeding shall be brought or asserted against any
Person entitled to indemnity hereunder (an “Indemnified Party”), such
Indemnified Party shall promptly notify the Person from whom indemnity is sought
(the “Indemnifying
Party”) in writing, and the Indemnifying Party shall have the right to
assume the defense thereof, including the employment of counsel reasonably
satisfactory to the Indemnified Party and the payment of all reasonable fees and
expenses incurred in connection with defense thereof; provided, that the failure of
any Indemnified Party to give such notice shall not relieve the Indemnifying
Party of its obligations or liabilities pursuant to this Agreement, except (and
only) to the extent that it shall be finally determined by a court of competent
jurisdiction (which determination is not subject to appeal or further review)
that such failure shall have materially and adversely prejudiced the
Indemnifying Party.

     

    An
Indemnified Party shall have the right to employ separate counsel in any such
Proceeding and to participate in the defense thereof, but the fees and expenses
of such counsel shall be at the expense of such Indemnified Party or Parties
unless:  (1) the Indemnifying Party has agreed in writing to pay such
fees and expenses; (2) the Indemnifying Party shall have failed promptly to
assume the defense of such Proceeding and to employ counsel reasonably
satisfactory to such Indemnified Party in any such Proceeding; or (3) the named
parties to any such Proceeding (including any impleaded parties) include both
such Indemnified Party and the Indemnifying Party, and such Indemnified Party
shall have been advised by counsel that a conflict of interest exists if the
same counsel were to represent such Indemnified Party and the Indemnifying Party
(in which case, if such Indemnified Party notifies the Indemnifying Party in
writing that it elects to employ separate counsel at the expense of the
Indemnifying Party, the Indemnifying Party shall not have the right to assume
the defense thereof and such counsel shall be at the expense of the Indemnifying
Party); provided, that
the Indemnifying Party shall not be liable for the fees and expenses of more
than one separate firm of attorneys at any time for all Indemnified
Parties.  The Indemnifying Party shall not be liable for any
settlement of any such Proceeding effected without its written consent, which
consent shall not be unreasonably withheld, delayed or
conditioned.  No Indemnifying Party shall, without the prior written
consent of the Indemnified Party, effect any settlement of any pending
Proceeding in respect of which any Indemnified Party is a party, unless such
settlement includes an unconditional release of such Indemnified Party from all
liability on claims that are the subject matter of such Proceeding.

     

    Subject to
the terms of this Agreement, all fees and expenses of the Indemnified Party
(including reasonable fees and expenses to the extent incurred in connection
with investigating or preparing to defend such Proceeding in a manner not
inconsistent with this Section) shall be paid to the Indemnified Party, as
incurred, within twenty Trading Days of written notice thereof to the
Indemnifying Party; provided, that the
Indemnified Party shall promptly reimburse the Indemnifying Party for that
portion of such fees and expenses applicable to such actions for which such
Indemnified Party is finally judicially determined to not be entitled to
indemnification hereunder). The failure to deliver written notice to the
Indemnifying Party within a reasonable time of the commencement of any such
action shall not relieve such Indemnifying Party of any liability to the
Indemnified Party under this Section 5, except to the extent that the
Indemnifying Party is materially and adversely prejudiced in its ability to
defend such action.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (d)            Contribution.  If
a claim for indemnification under Section 5(a) or 5(b) is unavailable to an
Indemnified Party or insufficient to hold an Indemnified Party harmless for any
Losses, then each Indemnifying Party, in lieu of indemnifying such Indemnified
Party, shall contribute to the amount paid or payable by such Indemnified Party
as a result of such Losses, in such proportion as is appropriate to reflect the
relative fault of the Indemnifying Party and Indemnified Party in connection
with the actions, statements or omissions that resulted in such Losses as well
as any other relevant equitable considerations.  The relative fault of
such Indemnifying Party and Indemnified Party shall be determined by reference
to, among other things, whether any action in question, including any untrue or
alleged untrue statement of a material fact or omission or alleged omission of a
material fact, has been taken or made by, or relates to information supplied by,
such Indemnifying Party or Indemnified Party, and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
action, statement or omission.  The amount paid or payable by a party
as a result of any Losses shall be deemed to include, subject to the limitations
set forth in this Agreement, any reasonable attorneys' or other reasonable fees
or expenses incurred by such party in connection with any Proceeding to the
extent such party would have been indemnified for such fees or expenses if the
indemnification provided for in this Section was available to such party in
accordance with its terms.

     

    The
parties hereto agree that it would not be just and equitable if contribution
pursuant to this Section 5(d) were determined by pro rata allocation or by any
other method of allocation that does not take into account the equitable
considerations referred to in the immediately preceding
paragraph.  Notwithstanding the provisions of this Section 5(d), no
Holder shall be required to contribute, in the aggregate, any amount in excess
of the amount by which the net proceeds actually received by such Holder from
the sale of the Registrable Securities subject to the Proceeding exceeds the
amount of any damages that such Holder has otherwise been required to pay by
reason of such untrue or alleged untrue statement or omission or alleged
omission.  No person guilty of fraudulent misrepresentation (within
the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any Person who was not guilty of such fraudulent
misrepresentation.

     

    The
indemnity and contribution agreements contained in this Section are in addition
to any liability that the Indemnifying Parties may have to the Indemnified
Parties and are not in diminution or limitation of the indemnification
provisions under the Purchase Agreement.

     

    6.           Miscellaneous.

     

    (a)           Remedies.  In
the event of a breach by the Company or by a Holder of any of their obligations
under this Agreement, each Holder or the Company, as the case may be, in
addition to being entitled to exercise all rights granted by law and under this
Agreement, including recovery of damages, will be entitled to specific
performance of its rights under this Agreement.  The Company and each
Holder agree that monetary damages would not provide adequate compensation for
any losses incurred by reason of a breach by it of any of the provisions of this
Agreement and hereby further agrees that, in the event of any action for
specific performance in respect of such breach, it shall waive the defense that
a remedy at law would be adequate.

     

    (b)           No Piggyback on
Registrations.  Except for securities registered pursuant to
the Company’s existing registration statement on Form S-1 (File No.
333-145082),  neither the Company nor any of its security holders
(other than the Holders in such capacity pursuant hereto) may include securities
of the Company in a Registration Statement other than the Registrable Securities
and the Company shall not prior to the Effective Date enter into any agreement
providing any such right to any of its security holders. The Company shall not,
from the date hereof until the date that is 60 days after the Effective Date of
the Registration Statement, prepare and file with the Commission a registration
statement relating to an offering for its own account under the Securities Act
of any of its equity securities other than a registration statement on Form S-8
or, in connection with an acquisition, on Form S-4. For the avoidance of doubt,
the Company shall not be prohibited from preparing and filing with the
Commission a registration statement relating to an offering of Common Stock by
existing stockholders of the Company under the Securities Act pursuant to the
terms of registration rights held by such stockholder or from filing amendments
to registration statements filed prior to the date of this
Agreement.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (c)           No Inconsistent
Agreements.  Neither the Company nor any of its Subsidiaries
has entered, as of the date hereof, nor shall the Company or any of its
Subsidiaries, on or after the date hereof, enter into any agreement with respect
to its securities, that would have the effect of impairing the rights granted to
the Holders in this Agreement or otherwise conflicts with the provisions
hereof.

     

    (d)           Amendments and
Waivers.  The provisions of this Agreement, including the
provisions of this sentence, may not be amended, modified or supplemented, or
waived unless the same shall be in writing and signed by the Company and Holders
holding a majority of the then outstanding Registrable Securities, provided that
any party may give a waiver as to itself.  Notwithstanding the
foregoing,  a waiver or consent to depart from the provisions hereof
with respect to a matter that relates exclusively to the rights of Holders and
that does not directly or indirectly affect the rights of other Holders may be
given by Holders of all of the Registrable Securities to which such waiver or
consent relates; provided,
however, that the provisions of this sentence may not be amended,
modified, or supplemented except in accordance with the provisions of the
immediately preceding sentence.

     

    (e)           Notices.  Any
and all notices or other communications or deliveries required or permitted to
be provided hereunder shall be delivered as set forth in the Purchase
Agreement.

     

    (f)           Successors and
Assigns.  This Agreement shall inure to the benefit of and be
binding upon the successors and permitted assigns of each of the parties and
shall inure to the benefit of each Holder.  Nothing in this Agreement,
express or implied, is intended to confer upon any party other than the parties
hereto or their respective successors and assigns any rights, remedies,
obligations, or liabilities under or by reason of this Agreement, except as
expressly provided in this Agreement.  The Company may not assign its
rights (except by merger or in connection with another entity acquiring all or
substantially all of the Company’s assets) or obligations hereunder without the
prior written consent of all the Holders of the then outstanding Registrable
Securities.  Each Holder may assign its respective rights hereunder in
the manner and to the Persons as permitted under the Purchase
Agreement.

     

    (g)           Execution and
Counterparts.  This Agreement may be executed in two or more
counterparts, each of which when so executed shall be deemed to be an original
and, all of which taken together shall constitute one and the same Agreement and
shall become effective when counterparts have been signed by each party and
delivered to the other party, it being understood that both parties need not
sign the same counterpart.  In the event that any signature is
delivered by facsimile transmission or by e-mail delivery of a “.pdf” format
data file, such signature shall create a valid and binding obligation of the
party executing (or on whose behalf such signature is executed) with the same
force and effect as if such facsimile or “.pdf” signature were the original
thereof.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (h)           Governing
Law.  All questions concerning the construction, validity,
enforcement and interpretation of this Agreement shall be determined in
accordance with the provisions of the Agency Agreement.

     

    (i)           Cumulative
Remedies.  The remedies provided herein are cumulative and not
exclusive of any other remedies provided by law.

     

    (j)           Severability. If any
term, provision, covenant or restriction of this Agreement is held by a court of
competent jurisdiction to be invalid, illegal, void or unenforceable, the
remainder of the terms, provisions, covenants and restrictions set forth herein
shall remain in full force and effect and shall in no way be affected, impaired
or invalidated, and the parties hereto shall use their good faith reasonable
efforts to find and employ an alternative means to achieve the same or
substantially the same result as that contemplated by such term, provision,
covenant or restriction.  It is hereby stipulated and declared to be
the intention of the parties that they would have executed the remaining terms,
provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable.

     

    (k)           Headings.  The
headings in this Agreement are for convenience only and shall not limit or
otherwise affect  the meaning hereof.

     

    (l)           Independent Nature of
Purchasers’ Obligations and Rights.  The obligations of each
Purchaser under this Agreement are several and not joint with the obligations of
any other Purchaser hereunder, and no Purchaser shall be responsible in any way
for the performance of the obligations of any other Purchaser
hereunder.  The decision of each Purchaser to purchase the Shares
pursuant to the transaction documents related to the Purchase Agreements has
been made independently of any other Purchaser. Nothing contained herein or in
any other agreement or document delivered at any closing, and no action taken by
any Purchaser pursuant hereto or thereto, shall be deemed to constitute the
Purchasers as a partnership, an association, a joint venture or any other kind
of entity, or create a presumption that the Purchasers are in any way acting in
concert with respect to such obligations or the transactions contemplated by
this Agreement.  Each Purchaser shall be entitled to protect and
enforce its rights, including, without limitation, the rights arising out of
this Agreement, and it shall not be necessary for any other Purchaser to be
joined as an additional party in any Proceeding for such purpose.

     

    

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    SIGNATURE
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    IN WITNESS
WHEREOF, the parties have executed this Registration Rights Agreement as of the
date first written above.

     

    LEGEND
INTERNATIONAL HOLDINGS, INC.

     

    

     

    By:_________________________________

    Name:

    Title:

    

     

    BMO
NESBITT BURNS INC.

     

    for and on
behalf of the Purchasers

     

    

     

    By:_________________________________

    Name:

    Title:

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