Document:

ex4-1.htm

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
4.1

    Pacific
Alliance Corporation

    Form
8-K

    File No.
000-51777

    EXECUTION
COPY

    

    NEITHER
THIS WARRANT NOR THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, OR ANY APPLICABLE STATE SECURITIES
LAWS.  AS A RESULT, THIS WARRANT AND SUCH SECURITIES MAY NOT BE SOLD,
OFFERED FOR SALE, PLEDGED, HYPOTHECATED, OR OTHERWISE TRANSFERRED IN THE ABSENCE
OF SUCH REGISTRATION OR EVIDENCE SATISFACTORY TO THE COMPANY OF AN APPLICABLE
EXEMPTION FROM REGISTRATION UNDER THE ACT OR COMPLIANCE WITH RULE 144 UNDER SUCH
ACT.  THE TRANSFER OF THIS WARRANT IS FURTHER RESTRICTED AS PROVIDED
HEREIN.

    

    

    WARRANT
TO PURCHASE SHARES

    OF
COMMON STOCK

    OF
PACIFIC ALLIANCE CORPORATION

    

    

    EXERCISABLE
ON OR BEFORE, AND VOID AFTER

    5:00 P.M.
UTAH TIME ON JUNE 30, 2014

    

    

    This
Certifies That Sycamore ventures, LLC, SERIES 1 a Utah limited liability company
(the “Holder”),
or registered assigns, is entitled to subscribe for and purchase from PACIFIC
ALLIANCE CORPORATION, a Delaware corporation (the “Company”), at any
time permitted hereunder after July 1, 2009, and through June 30, 2014 (subject
to the terms and provisions of this Warrant), up to 500,000 shares of the
Company’s common stock at an exercise price of $0.05 per share, subject to
adjustment as provided herein (as adjusted, the “Purchase
Price”).

    

    The
shares that may be acquired upon exercise of this Warrant are referred to herein
as the “Warrant
Shares.”  As used herein, the term “Holder” means the Holder
identified in the paragraph above and any party who acquires all or a part of
this Warrant as a registered transferee of such Holder.  The term
“Convertible
Securities” means any stock or other securities convertible into, or
exchangeable for, Company common stock. This Warrant is subject
to the following terms and conditions:

    

    1.           Exercise.  The
rights represented by this Warrant may be exercised by the Holder, in whole or
in part (but not as to a fractional share of common stock), by written Notice of
Exercise (in the form attached hereto) delivered to the Company at its principal
office prior to the expiration of this Warrant and accompanied or preceded by
the surrender of this Warrant, along with a check in payment of the Purchase
Price multiplied by
the number of Warrant Shares being purchased hereunder (unless this Warrant is
being exercised pursuant to Section 9 below).  The right to exercise
this Warrant shall vest only upon a change in control of the Company, which
shall be deemed to occur upon any of the following:  (a) an
acquisition by one or more individuals, entities or associations of effective
control (whether through legal or beneficial ownership of capital stock, by
contract or otherwise) of more than 33% of the voting securities of the Company,
or (b) a merger, acquisition or consolidation of the Company or any of its
affiliates (specifically including but not limited to a subsidiary), with or
into any other entity or association, or the merger or consolidation of any
other entity or association with or into the Company or any of its affiliates
(specifically including but not limited to a subsidiary).

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    As used
herein, the term “affiliates” shall have the meaning ascribed to such term under
the Securities Act of 1933.

    

    2.           Exchange and
Replacement.  Upon receipt by the Company of evidence
reasonably satisfactory to it of the loss, theft, destruction, or mutilation of
this Warrant, the Company will make and deliver a new Warrant of like tenor, in lieu of
this Warrant.  This Warrant shall be promptly canceled by the Company
upon the surrender hereof in connection with any exchange or
replacement.

    

    3.           Issuance of the Warrant
Shares.

    

    (a)           Subject
to the provisions of paragraph (b) below, certificates for the Warrant Shares
purchased hereunder shall be delivered to the Holder within a reasonable time,
not exceeding five business days, after the rights represented by this Warrant
shall have been exercised in accordance with the requirements hereof, and,
unless this Warrant has expired, a new Warrant
representing the right to purchase the number of Warrant Shares, if any, with
respect to which this Warrant shall not then have been exercised shall also be
delivered to the Holder within such time.

    

    (b)           Notwithstanding
the foregoing, the Company shall not be required to
recognize any exercise, or deliver any certificate for Warrant Shares upon
attempted exercise, of this Warrant except in accordance with exemptions from
the applicable securities, registration requirements or registrations under
applicable securities laws.  The Company shall not be obligated to
effect a registration of the Warrant Shares under federal or state securities
laws unless specifically so provided herein.  The Holder agrees to
execute such documents and make such representations, warranties and agreements
as may be required solely to comply with the exemptions relied upon by the
Company, or the registrations made, for the issuance of the Warrant Shares or
their later resale pursuant to a registration statement filed by the
Company.

    

    4.           Covenants of the
Company.  The Company covenants and agrees that during the
period within which the rights represented by this Warrant may be exercised, the
Company will at all times have authorized for the purpose of issue or transfer
upon exercise of the subscription rights evidenced by this Warrant a sufficient
number of shares of common stock to provide for the exercise of the rights
represented by this Warrant.

    

    5.           Purchase Price and Warrant
Share Adjustments. The provisions of this
Warrant are subject to adjustment as provided in this Section 5.

    

    (a)            Subject
to paragraph (b) below, in case the Company shall hereafter:  (i) pay
any dividends on any class of stock of the Company payable in common stock or
Convertible Securities; (ii) subdivide its then-outstanding shares of common
stock into a greater number of shares; or (iii) combine outstanding shares of
common stock, by reclassification or otherwise; then, in any such event, the
Purchase Price in effect immediately prior to such event shall (until adjusted
again pursuant hereto) be adjusted immediately after such event to a price
(calculated to the nearest full cent) determined by dividing (A) the number of
shares of common stock outstanding immediately prior to such event, multiplied
by the then-existing Purchase Price, by (B) the total number of shares of common
stock outstanding immediately after such event (including in each case the
maximum number of shares of common stock issuable in respect of any Convertible
Securities), and the resulting quotient shall be the adjusted Purchase
Price.

    
      
         

      

      
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    An
adjustment made pursuant to this paragraph shall become effective immediately
after the record date in the case of a dividend or distribution and shall become
effective immediately after the effective date in the case of a subdivision,
combination or reclassification.  All calculations under this
paragraph shall be made to the nearest cent or to the nearest 1/100 of a share,
as the case may be.

    

    (b)            In
case of any consolidation or merger to which the Company is a party other than a
merger or consolidation in which the Company is the surviving corporation, or in
case of any sale or conveyance to another corporation of the property of the
Company as an entirety or substantially as an entirety, or in the case of any
statutory exchange of securities with another corporation (including any
exchange effected in connection with a merger of a third corporation into the
Company), there shall be no adjustment under paragraph (a) above but the Holder
of this Warrant then outstanding shall have the right thereafter to convert this
Warrant into the kind and amount of shares of stock and other securities, and any other property,
which he, she or it would have owned or have been entitled to receive
immediately after such consolidation, merger, statutory exchange sale or
conveyance had such Warrant been converted immediately prior to the effective
date of such consolidation, merger, statutory exchange, sale or
conveyance.  The provisions of this paragraph shall similarly apply to
successive consolidations, mergers, statutory exchanges, sales or
conveyances.

    

    6.           No Voting
Rights.  This Warrant by itself shall not entitle the Holder to
any voting rights or other rights as a stockholder of the Company.

    

    7.           Notice of Transfer of
Warrant or Resale of the Warrant Shares.

    

    (a)            By
acceptance hereof, the Holder agrees to give written notice to the Company
before transferring this Warrant or transferring any Warrant Shares of such
Holder’s intention to do so, describing briefly the manner of any proposed
transfer.  If in the opinion of counsel to the Company the proposed
transfer may be effected without registration or qualification (under any
federal and state securities laws), the Company, as promptly as practicable,
shall notify the Holder of such opinion, whereupon the Holder shall be entitled
to transfer this Warrant or to dispose of Warrant Shares received upon the
previous exercise of this Warrant, all in accordance with the terms of the notice
delivered by the Holder to the Company; provided, however, that an appropriate
legend may be endorsed on this Warrant or the certificates for such Warrant
Shares respecting restrictions upon transfer thereof necessary or advisable in
the opinion of counsel and satisfactory to the Company to prevent further
transfers which would be in violation of Section 5 of the Securities Act of 1933
(the “Securities
Act”) and applicable state securities laws; and provided further that the
prospective transferee or purchaser shall execute such documents and make such
representations, warranties, and agreements as may be required solely to. comply
with the exemptions relied upon by the Company for the transfer of disposition
of the Warrant or Warrant Shares.

    

    (b)            If,
in the opinion of counsel referred to in this Section 7, the proposed transfer
or disposition of this Warrant or such Warrant Shares described in the written
notice given pursuant to this Section 7 may not be effected without registration
or qualification of this Warrant or such Warrant Shares the Company shall
promptly give written notice thereof to the Holder, and the Holder will limit
its activities in respect to such transfer or disposition as, in the opinion of
both such counsel, are permitted by law.

    

    8.           No Fractional
Shares.  No fractional shares will be issued upon the exercise
hereof.

    
      
         

      

      
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    9.           Net Issue
Exercise.  In lieu of exercising this Warrant pursuant to
Section 1 hereof, the Holder may elect to receive, without the payment of any
additional consideration, a number of Warrant Shares equal to the value (as
determined below) of this Warrant (or the portion thereof being exercised) by
surrender of this Warrant to the Company together with a duly executed Notice of
Exercise (in the form attached hereto) in which the appropriate alternative is
initialed by the Holder.  In such event, the Company shall issue to
the Holder the number of Warrant Shares computed by applying the following
formula:

    

    X = Y (A-B)

               
 A

    

    Where:

    

    
      	 
      	
              X

            	
              =

            	
              the
      number of Warrant Shares to be issued to the Holder;

               

            
	 
      	
              Y

            	
              =

            	
              the
      number of Warrant Shares subject to this warrant (or, if only a portion of
      this Warrant is being exercised, the number of Warrant Sharessubject to
      the portion of this Warrant being exercised);

               

            
	 
      	
              A

            	
              =

            	
              the
      Fair Market Value of one Warrant Share (at the date of such exercise);
      and

               

            
	 
      	
              B

            	
              =

            	
              the
      Purchase Price, as adjusted to the date of such
    calculation.

            

    

    

    For
purposes of the above, the “Fair Market Value” of
one share shall equal the average of the closing sale prices of the common stock
quoted on a Nasdaq Stock Market, the AMEX, or NYSE (collectively, a “Stock Exchange”), or
listed in the Over-The-Counter Bulletin Board (or the Pink Sheets) or the
closing price quoted on any national securities exchange on which such
securities are listed, whichever is applicable, for the ten consecutive trading
days immediately prior to the date of determination of Fair Market Value (or, if
no sales take place on any such trading day, the average of the closing bid and
asked prices on such trading day).  If, however, the common stock is
not traded on a Stock Exchange or the Over-The-Counter Bulletin Board or Pink
Sheets, the Fair Market Value of a Warrant Share shall be determined in good
faith by the Company’s board of directors.

    

    10.           Registration
Rights.

    

    (a)           Subject
to paragraph (d) of this Section, each time the Company shall determine to
proceed with the actual preparation and filing of a registration statement under
the Securities Act, in connection with the proposed offer and sale for money of
any of its securities by it (other than a registration on Form S-8, S-4 or any
successor forms or other inappropriate forms), the Company will give written
notice of its determination to Holder.  Upon the written request of
Holder given within 30 days after receipt of any such notice from the Company,
the Company will, except as herein provided, cause all Warrant Shares with
respect to which Holder has requested registration to be included in such
registration statement, all to the extent requisite to permit the sale or other
disposition by Holder of the shares to be so registered; provided, however, that
nothing herein shall prevent the Company from, at any time, abandoning or
delaying any such registration initiated by it.  If any such
registration pertains to an underwritten offering in whole or in part, the
Company may require that the shares requested for inclusion by Holder pursuant
to this section be included in the underwritten offering on the same terms and
conditions as the securities otherwise being sold through the
underwriters.

    

    
      
         

      

      
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    If, in
the good faith judgment of the managing underwriter of such underwritten
offering, the inclusion of all of the Warrant Shares originally covered by a
request for registration made by Holder would reduce the amount of securities to
be offered by the Company or interfere with the successful marketing of the
securities to be offered by the Company, the number of Warrant Shares owned by
or issuable to Holder and otherwise to be included in the underwritten offering
may be reduced.  Any Warrant Shares which are thus excluded from the
underwritten offering shall be withheld from the market by Holder for a period,
not to exceed 180 days, that the managing underwriter reasonably determines is
necessary in order to effect the underwritten offering.

    

    (b)           If
and whenever the Company is required by the provisions of Section 10(a) to
effect the registration of any Warrant Shares under the Securities Act, the
Company will:

    

    (i)           prepare
and file with the Securities and Exchange Commission (“SEC”) a registration
statement with respect to such shares, and use reasonable commercial efforts to
cause such registration statement to become and remain effective for such period
as may be reasonably necessary to effect the sale of such shares, not to exceed
two years from the date of issuance of the covered Warrant Shares;

    

    (ii)           prepare
and file with the SEC such amendments to such registration statement and
supplements to the prospectus contained therein as may be necessary to keep such
registration statement effective for such period as may be reasonably necessary
to effect the sale of such securities, not to exceed two years from the date of
issuance of the covered Warrant Shares;

    

    (iii)           furnish
to Holder and to the underwriters of the securities being registered such
reasonable number of copies of the registration statement, preliminary
prospectus, final prospectus and such other documents as Holder and underwriters
may reasonably request in order to facilitate the public offering of such
securities;

    

    (iv)           use
reasonable commercial efforts to register or qualify the securities covered by
such registration statement under such state securities or blue sky laws of such
jurisdictions as the underwriters may reasonably request within 20 days
following the original filing of such registration statement, except that the
Company shall not for any purpose be required to execute a general consent to
service of process or to qualify to do business as a foreign corporation in any
jurisdiction wherein it is not so qualified; and

    

    (v)           prepare
and promptly file with the SEC any amendment or supplement to such registration
statement or prospectus as may be necessary to correct any statements or
omissions if, at the time when a prospectus relating to such securities is
required to be delivered under the Securities Act, any event shall have occurred
as the result of which any such prospectus or any other prospectus as then in
effect would include an untrue statement of a material fact or omit to state any
material fact necessary to make the statements therein, in the light of the
circumstances in which they were made, not misleading.

    

    
      
         

      

      
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    (c)           With
respect to any registration of shares pursuant to Section 10(a), the Company
shall bear the following fees, costs and expenses:  all registration,
filing and NASD fees, printing expenses, fees and disbursements of counsel and
accountants for the Company, fees and disbursements of counsel for the
underwriter or underwriters of such securities (if the Company and/or selling
security holders are required to bear such fees and disbursements), all internal
Company expenses, the premiums and other costs of policies of insurance against
liability arising out of the public offering, and all legal fees and
disbursements and other expenses of complying with state securities or blue sky
laws of any jurisdictions in which the securities to be offered are to be
registered or qualified.  Fees and disbursements of counsel and
accountants for Holder, underwriting discounts and commissions and transfer
taxes for Holder and any other expenses incurred by Holder not expressly
included above shall be borne by Holder.

    

    (d)           Notwithstanding
anything to the contrary herein, the Company shall not be obligated to register
the resale of any Warrant Shares purchased for cash  or purchased to
Section 9 which have been outstanding for more than one year.

    

    In
Witness Whereof, the Company has caused this Warrant to be signed by its duly
authorized officer.

    

    PACIFIC
ALLIANCE CORPORATION:

    

    

    By:                                                           

    Mark A. Scharmann,
President

    

    

    

    

    

    
      
         

      

      
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    NOTICE
OF EXERCISE

    

    (To be
signed upon exercise of Warrant)

    

    The
Undersigned, the holder of the within Warrant, hereby irrevocably elects to
exercise the purchase right represented by such Warrant for, and to purchase
thereunder, of the shares of common stock of Pacific Alliance Corporation to
which such Warrant relates and herewith makes payment of $______________________
therefor in cash or by certified check (unless the Warrant is being exercised
pursuant to Section 9, in which case the box below indicating such fact is
checked), and requests that the certificate for such shares be issued in the
name of, and be delivered to, _____________________the address for which is set
forth below the signature of the undersigned.

    

    
      	
              

            	
              The
      undersigned is exercising the Warrant pursuant to the Net Issue Exercise
      provisions of Section 9.

            

    

    

    Dated:
_______________________, 20____

    

    

    
      	 
      	 
      
	 
      	
              Signature

               

               

               

            
	 
      	
              Name

               

               

               

            
	 
      	
              Address

               

               

               

            
	 
      	
              City,
      State, Zip Code

               

               

               

            
	 
      	
              Social
      Security or Tax Identification No.

            

    

    

    

    

    
      
         

      

      
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    ASSIGNMENT
FORM

    

    (To be
signed only upon authorized transfer of Warrant)

    

    For Value
Received, the undersigned hereby sells, assigns, and transfers unto
_______________________________ the right to purchase the securities of PACIFIC
ALLIANCE CORPORATION, a Delaware corporation, to which the within Warrant
relates and appoints ______________________, attorney, to transfer said right on
the books of PACIFIC ALLIANCE CORPORATION with full power of substitution in the
premises.

    

    Dated:
_______________________, 20____

    

    
      	 
      	 
      
	 
      	
              Signature

               

               

               

            
	 
      	
              Name

               

               

               

            
	 
      	
              Address

               

               

               

            
	 
      	
              City,
      State, Zip Code

               

               

               

            
	 
      	
              Social
      Security or Tax Identification No.

            

    

    

    

    

    

    

    

    

    

    

    

     

    
      
         

      

      
        8leaseagreement.htm

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXPLORATION
AND MINING LEASE

    

    (ND Claims - Elko County,
Nevada)

    

    THIS MINING LEASE is made
effective this second (11th) day of August
2008,
by and between
ALTAIR
MINERALS, INC.,
a Nevada corporation (hereinafter referred to as “Owner”); and BRAEDEN
VALLEY MINES INC.., a Nevada corporation
(hereinafter referred to as “Lessee”).

    

    RECITALS

    

    A. Owner
owns and possesses various unpatented lode mining claims in Elko County, Nevada.
The location, nature, and extent of these real property interests are more
particularly described on Exhibit A attached hereto. These property rights,
together with all ores, minerals, and mineral rights (except those expressly
reserved in patents and other documents of record), and the right to explore
for, mine, and remove the same, and improvements, easements, licenses,
rights-of-way and other interests appurtenant thereto, shall be referred to
collectively as the “Property”.

    B. The
parties now desire to enter into an agreement giving Lessee the exclusive right
to explore, develop, and mine the Property.

    

    THEREFORE,
the parties have agreed as follows:

    

    

    SECTION ONE

    

    Lease Term and
Royalties

    

    1.1 Term of Lease. Owner hereby
leases the Property to Lessee for an initial term of fifteen (15) years. The Lease shall
be extended for so long thereafter as there is production of minerals from the
Property. The Effective Date of this Agreement shall be the fifteenth (15th) day of
May 2008.

    

    1.2 Advance Minimum
Royalty. In consideration for this Agreement, Lessee shall be required to
complete cash payments on account of advance minimum royalties in accordance
with the following schedule:

    

    

    
      	
              a.  

            	
              FIVE
      THOUSAND UNITED STATES DOLLARS (US $5,000.00) upon execution of this
      Agreement to hold the Property for one year from the Effective Date to be
      delivered to the Owner.

            

    

    

    
      	
              b.  

            	
              TEN
      THOUSAND UNITED STATES DOLLARS (US $10,000.00) on the first anniversary of
      the Effective Date.

            

    

    

    
      	
              c.  

            	
              FIFEEN
      THOUSAND UNITED STATES DOLLARS (US $ 15,000.00) on the second anniversary
      of the Effective Date.

            

    

    

    
      	
              d.  

            	
              TWENTYFIVE
      THOUSAND UNITED STATES DOLLARS (US $ 25,000.00) on the third and each
      subsequent anniversary of the Effective Date, so long as this Agreement
      remains in effect.

            

    

    

    The term
“Advance Minimum Royalty” shall mean that Owner will receive no production
royalties (Section 1.3 below) until Lessee has recaptured all advance royalty
payments previously made to Owner under this Agreement. However, payments made
to Owner in any given lease year in which production occurs shall not be less
than the advance minimum royalty payable in that year had no production
occurred. After recapture, Lessee shall pay production royalties in excess of
the annual advance minimum royalties paid to Owner.

    These
advance minimum royalty payments shall be in lieu of any obligation on the part
of Lessee, express or implied, to explore, develop, mine, or perform any work on
or in connection with the Property.

    

    1.3 Production Royalties.
Upon commencing production of valuable minerals from the Property, Lessee shall
pay Owner a royalty on production equal to four percent (4 %) of net smelter
returns. The term “net smelter returns” shall mean the gross value of ores or
concentrates shipped to a smelter or other processor (as reported on the smelter
settlement sheet) less the following expenses actually incurred and borne by
Lessee:

    a.           Sales,
use, gross receipts, severance, and other taxes, if any, payable with respect to
severance, production, removal, sale or disposition of the minerals from the
Property, but excluding any taxes on net income;

    b.           Charges
and costs, if any, for transportation of concentrates from the mine or mill to
places where the minerals are smelted, refined and/or sold; and

    c.           Charges,
costs (including assaying and sampling costs specifically related to smelting
and/or refining), and all penalties, if any, for smelting and/or
refining.

    

    In the
event smelting or refining are carried out in facilities owned or controlled, in
whole or in part, by Lessee, charges, costs and penalties for such operations
shall mean the amount Lessee would have incurred if such operations were carried
out at facilities not owned or controlled by Lessee then offering comparable
services for comparable products on prevailing terms.

    Payment
of production royalties shall be made not later than thirty (30) days after
receipt of payment from the smelter. All payments shall be accompanied by a
statement explaining the manner in which the payment was
calculated.

    

    1.4             Royalty Purchase. Lessee shall have the right
at any time to purchase up to two of the four royalty percentage points, and
thus reduce the Production Royalty from 4.0% to 2.0%, by paying to Owner the sum
of US$1,000,000 for the first royalty percentage point purchased, and by paying
to Owner the sum of US$ 2,000,000 for the second royalty percentage point
purchased.

    

    1.5           Notice of
Purchase. Lessee
shall exercise its right of purchase hereunder by delivering a written notice to
Owner setting forth the portion of the Production Royalty on which it is
exercising its right of purchase, together with a bank draft or certified check
or such other form of payment as is acceptable to Owner for the purchase price
of the portion of the Production Royalty being purchased.

    

    1.6 Delivery of Data.
Upon execution of this Agreement Owner shall deliver to Lessee copies of all
maps, deeds, and other documents in his possession, which pertain to the
Property title and boundaries, prior workings, production history, and so
forth.

    

    1.7 Lesser Interest. If
Owner holds a lesser interest in any part of the Property, the advance and
production royalties specified in Sections 1.3 and 1.4 shall be reduced
proportionally on an acreage basis or ownership percentage basis to reflect the
actual ownership of the Owner.

    

    1.8 After-Acquired
Interests. If at any time during the term of this Lease, lessee directly
or indirectly stakes or otherwise acquires any interest in mineral claims or
other forms of mineral tenure located wholly or partly within two (2) miles of
the boundary of the Property as it existed at the Effective Date, then Lessee
shall forthwith give notice to the Owner of such staking or acquisition, the
costs thereof and all details in its possession with respect to the nature of
the claims, or other forms of tenure and the known
mineralization.  Upon delivery of such notice, the Owner may elect by
notice to Lessee to require that Lessee’s interest in such mineral claims or
other forms of tenure be included in and thereafter form part of the
Property.  The staking or acquisition costs of any interest as
aforesaid shall not constitute minimum advance royalties under section 1.2
hereof. Any ownership interests, possessory interests, or other property and
royalty interests pertaining to the Property acquired by Owner following
execution of this Agreement shall become subject to the terms and provisions of
this Agreement.

    SECTION TWO

    Exploration and Mining
Operations

    

    2.1 Right to Explore. Develop and
Mine. Upon execution of this Agreement, Lessee shall have the right to
make geological investigations and surveys, to drill on the Property by any
means, and to have all the rights and privileges incident to ownership of the
Property, including without limitation the right to mine underground or on the
surface, extract by leaching in place or any other means, remove, save, mill,
concentrate, treat, and sell or otherwise dispose of ores, concentrates,
mineral-bearing earth and rock and other products therefrom.

    

    2.2 Conduct of Work. Lessee shall
perform its mining activities on the Property in accordance with good mining
practice, shall comply with the applicable laws and regulations relating to the
performance of mining operations on the Property, and shall comply with the
applicable worker’s compensation laws of the State of Nevada.

    

    2.3 Liability and
Insurance. During the term of the Agreement, Lessee shall indemnify and
hold Owner harmless from any claims, demands, liabilities or liens arising out
of Lessee’s activities on the Property. To that end, Lessee shall immediately
obtain and carry a policy of public liability insurance in the amount of
$1,000,000.00 or more for personal injury and $100,000.00 for property damage,
protecting Owner against any claims for injury to persons or damage to property
resulting from Lessee’s operations.

    

    2.4 Liens. Lessee shall
keep the Property free and clear from any and all mechanics’ or laborers’ liens
arising from labor performed on or material furnished to the Property at
Lessee’s request. However, a lien on the Property shall not constitute a default
if Lessee, in good faith, disputes the validity of the claim, in which event the
existence of the lien shall constitute a default thirty (30) days after the
validity of the lien has been adjudicated adversely to Lessee.

    

    2.5 Installation of Equipment. Lessee may
install, maintain, replace, and remove during the term of this Agreement any and
all mining machinery, equipment, tools, and facilities, which it may desire to
use in connection with its mining activities on the Property. Upon termination
of this Agreement for any reason, Lessee shall have a period of six (6) months
following such termination during which it may remove all or part of the above
items at its sole cost and expense. Owner may, at Owner’s discretion, require
Lessee to remove all of Lessee’s equipment from the Property upon termination.
Any equipment remaining on the Property after six (6) months shall become the
property of Owner.

    

    2.6 Acquisition of Permits. Lessee shall
acquire all federal, state, and county permits

    required
for its operations. Lessee shall be responsible for reclamation of only those
areas disturbed by Lessee’s activities. In the event that Lessee is required to
post a reclamation bond, the bond will revert to Lessee upon satisfactory
completion of the reclamation program.

    

    2.7 Commingling of Ore. Lessee shall
have the right to commingle ores from the Property with ores from other
properties provided that Lessee weighs and samples Owner’s ores in accordance
with sound mining and metallurgical practices and accounts for Owner’s share of
production.

    

    2.8 Drill Logs. Assays, and
Maps. Copies (including digital copies) of all drill logs, exploration
information, assays, maps, metallurgical studies, and other factual information
shall be furnished by Lessee to Owner annually, and upon the expiration or
termination of this Agreement.

    

    2.9 Reports. Lessee shall
keep Owner reasonably informed as to the progress and nature of Lessee’s
operations on the Property.

    

    SECTION THREE

    Inspection by
Owner

    

    3.1 Inspection of Property Owner, or
its authorized agents or representatives, shall be permitted to enter upon the
Property at all reasonable times for the purpose of inspection, but shall enter
upon the Property at its own risk and so as not to hinder unreasonably the
operations of Lessee. Owner shall indemnify and hold Lessee harmless from any
damage, claim, or demand by reason of injury to Owner or its agents or
representatives on the Property or the approaches thereto.

    

    3.2 Inspection of
Accounts. Lessee agrees to keep accurate books of account reflecting the
mining operations on the Property, and Owner shall have the right, either
personally or through a qualified accountant of its choice and at its cost, to
examine and inspect the books and records of Lessee pertaining to the mining,
milling and shipping operations of Lessee.

    

    SECTION FOUR

    Claim Maintenance
and  Fees Taxes

    

    4.1 Taxes. Lessee shall
pay all claim maintenance fees due on the property sixty (60) days prior to
their due date, and shall pay all taxes levied or assessed on any improvements
placed on the Property by Lessee. Upon termination of this Agreement for any
reason, taxes shall be apportioned between the parties on a calendar year basis
for the remaining portion of the calendar year. However, Owner shall not be
liable for taxes on any tools, equipment, machinery, facilities, or improvements
placed upon the Property unless Lessee fails to remove them within the time
provided by this Agreement.

    SECTION
FIVE

    Termination and
Default

    

    5.1 Termination. Lessee
shall have the right to terminate this Agreement at its sole discretion at any
time by giving written notice to Owner. Upon termination, Owner shall retain all
payments previously made as liquidated damages and this Agreement shall cease
and terminate. Lessee will provide Owner with all factual data, maps, assays,
and reports pertaining to the Property. Lessee will also deliver a recordable
Quitclaim Deed to Owner.

    

    5.2 Default. If Lessee
fails to perform its obligations under this Agreement, and in particular fails
to make any payment due to Owner hereunder, Owner may declare Lessee in default
by giving Lessee written notice of default which specifies the obligation(s)
which Lessee has failed to perform. If Lessee fails to remedy a default in
payment within fifteen days (15) of receiving the notice
of default, and thirty (30) days for any other default, Owner may terminate this
Agreement and Lessee shall peaceably surrender possession of the Property to
Owner. Notice of termination shall be in writing and served in accordance with
this Agreement.

    

    5.3 Obligations Following
Termination. In the event of voluntary or involuntary termination, Lessee
shall surrender possession of the Property to Owner and shall have no further
liability or obligation under this Agreement except for its obligation (1) to
pay annual maintenance fees and its apportioned share of taxes, as provided for
in Section Four; (2) to pay any production royalties then owed to Owner; (3) to
pay the cost of removal of all equipment as stated in Section 3.5; (4) to
fulfill its reclamation responsibility as stated in Section 3.6; (5) to satisfy
any accrued obligations or liabilities; and (6) to satisfy any other obligation
imposed by this agreement or by law. By surrendering the Property to Owner,
Lessee shall be released from its obligation to make any advance royalty
payments not then due or accrued.

    

    

    

    SECTION
SIX

    Notices and
Payments

    

    6.1 Notices. All notices
to Lessee or Owner shall be in writing and shall be sent by

    certified
or registered mail, return receipt requested, to the addresses below. Notices
sent by certified mail shall be effective five days after the date of mailing,
or upon actual receipt, whichever is the earlier. Notice of any change in
address shall be given in the same manner.

    

    TO
OWNER:

    Altair
Minerals, Inc.

    1611
Bradley Drive

    Eugene,
Oregon 97401

    

    TO
LESSEE:

    Braeden
Valley Mines Inc.

    29377
Rancho California

    Suite
204

    Temecula,
California

    USA
92591

    

    6.2           Payments. All
payments shall be in U.S. currency payable to Owner.

    

    

    SECTION
SEVEN

    Assignment

    7.1 Assignment. Lessee
may assign this Agreement at any time, in whole or in part, subject to the
written consent of Owner, which shall not be unreasonably withheld, and subject
to the assignee agreeing with Owner to be bound by the all of the terms of this
Agreement.

    

    SECTION
EIGHT

    Warranty of Title

    

    8.1 Warranty. Owner
warrants and represents, subject only to the superior title of the United States
of America, to the best of its knowledge and belief at the execution of this
Agreement, that it is the owner of the property interests described in Exhibit
A; that Owner has not created any liens or encumbrances affecting the Property;
and that Owner has and will continue to have the right to commit its interest in
the Property to this Agreement Owner further warrants that it is not aware of
any disputes or legal actions affecting the Property.

    

    8.2 Examination of Title Documents.
Promptly after execution of this Agreement, Owner shall deliver to Lessee copies
of all documents bearing upon Owner’s title, interest, or ownership in the
Property. Lessee may then undertake such further investigation of the title and
status of the claims as Lessee shall deem necessary. If that investigation
should reveal defects in the title, Owner agrees to proceed forthwith to cure
said title defects to the satisfaction of Lessee; and in the event it should not
do so, Lessee may cure such title defects and deduct the expense incurred,
including reasonable attorney’s fees, from any payment to be made hereunder. The
deduction in each year may not exceed one-half of the advance minimum royalty
payable to Owner.

    

    SECTION
NINE

    Force
Majeure

    

    9.1 Suspension of Obligations. If
Lessee is prevented by Force Majeure from timely performance of any of its
obligations hereunder, except the payment of money, the failure of performance
shall be excused and the period for performance shall be extended for an
additional period equal to the duration of Force Majeure. Upon the occurrence
and upon the termination of Force Majeure, Lessee shall promptly notify Owner in
writing. Lessee shall use reasonable diligence to remedy Force Majeure, but
shall not be required to contest the validity of any law or regulation or any
action or inaction of civil or military authority.

    

    9.2 Definition of Force
Majeure. “Force Majeure” means any cause beyond a party’s reasonable
control, including law or regulation; action or inaction of civil or military
authority; inability to obtain any license, permit, or other authorization that
may be required to conduct operations on or in connection with the Property;
interference with mining operations by a lessee of oil, gas, or geothermal
resources under the Property; unusually severe weather; mining casualty;
unavoidable mill shutdown; damage to or destruction of mine plant or facility;
fire; explosion; flood; insurrection; riot; labor disputes; inability after
diligent effort to obtain workmen or material; delay in transportation; and acts
of God (but excepting any obligation to pay money).

    

    9.3 Economic Force
Majeure. During the extended term of this Agreement, Lessee shall have
the right to suspend operations and hold the Property during periods of Economic
Force Majeure. “Economic Force Majeure” shall mean periods during which the
price of gold or other mineral commodities is too low to allow economic recovery
and sale of ore from the Property. However, lessee shall continue to pay advance
royalties during conditions of Economic Force Majeure.

    

    SECTION
TEN

    Miscellaneous
Provisions

    

    10.1
Binding Effect.
This Agreement shall inure to the benefit of and be binding upon the parties
hereto, their respective heirs, executors, administrators, successors, and
permitted assigns.

    

    10.2
Applicable Law.
The terms and provisions of this Agreement shall be interpreted in accordance
with the laws of the State of Nevada.

    

    10.3
Entire
Agreement. This Agreement terminates and replaces all prior agreements,
either written, oral or implied, between the parties hereto, and constitutes the
entire agreement between the parties.

    

    10.4
Recording Memorandum of Agreement. The
parties hereto agree to execute a Memorandum of this Agreement (short form) for
the purpose of recording same in the records of Elko County, Nevada so as to
give public notice, pursuant to the laws of the State of Nevada, of the
existence of this Agreement.

    

    10.5
Void or Invalid Provisions.
If any term, provision, covenant or condition of this Agreement, or any
application thereof, should be held by a court of competent jurisdiction to be
invalid, void or unenforceable, all provisions, covenants and conditions of this
Agreement, and all applications thereof not held invalid, void or unenforceable,
shall continue in full force and effect and shall in no way be affected,
impaired, or invalidated thereby.

    

    10.6
Time of the Essence. Time is
of the essence of this Agreement and each and every part thereof

    

    10.7
Confidentiality.
During the term of this agreement, all reports and data provided by Lessee to
Owner shall be held in strictest confidence, and Owner shall not disclose such
information without Lessee’s prior written consent, except as may be required by
Regulatory Authorities.

    

    10.8  No Partnership.
Nothing in this Agreement shall create a partnership between Owner and
Lessee.

    

    IN WITNESS WHEREOF the parties
hereto have executed this Agreement as of the day and year first above
written.

    

    
      	
              THE
      CORPORATE SEAL OF ALTAIR
      MINERALS INC. was hereunto affixed in the presence of:

               

              /s/ Erica E. Moreno

              Authorized
      Signatory

               

               

               

            	
              )

              )

              )

              )

              )

              )

              )

              )

              )

              )

            	
               

               

               

               

               

              c/s

            
	
              THE
      CORPORATE SEAL OF BRAEDEN
      VALLY MINES INC. was hereunto affixed in the presence
      of:

               

              /s/ G. Leigh
      Lyons                                                       

              Authorized
      Signatory

               

               

               

            	
              )

              )

              )

              )

              )

              )

              )

              )

              )

              )

            	
               

               

               

               

               

              c/s

            

    

    

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
A

    

    

    This is
Exhibit "A" to an Agreement made as of the 15th day of
May 2008 between ALTAIR
MINERALS INC. and BRAEDEN VALLEY MINES
INC..

    

    Altair
Minerals, Inc. is the owner or claimant (“Owner”) of the 4 unpatented mining
claims listed below (the “Property”), which are situated in Elko County,
Nevada.

    

    
      	
              CLAIM
      NAME

            	
              BLM
      NMC #

            	
                    Elko
      County     DOCUMENT #

            
	
              ND
      1

            	
              851630

            	
              507219

            
	
              ND
      2

            	
              851631

            	
              507220

            
	
              ND
      3

            	
              851632

            	
              507221

            
	
              ND
      4

            	
              851633

            	
              507222

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