Document:

Unassociated Document

    Exhibit
10.25

     

    THIS
WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT
HAVE BEEN ACQUIRED FOR INVESTMENT PURPOSES ONLY AND MAY NOT BE TRANSFERRED UNTIL
(i) A REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “1933
ACT”) SHALL HAVE BECOME EFFECTIVE WITH RESPECT THERETO OR
(ii) RECEIPT BY THE COMPANY OF AN OPINION OF COUNSEL REASONABLY
SATISFACTORY TO THE COMPANY TO THE EFFECT THAT REGISTRATION UNDER THE 1933 ACT
IS NOT REQUIRED IN CONNECTION WITH SUCH PROPOSED TRANSFER NOR IS SUCH TRANSFER
IN VIOLATION OF ANY APPLICABLE STATE SECURITIES LAWS.  THIS LEGEND
SHALL BE ENDORSED UPON ANY WARRANT ISSUED IN EXCHANGE FOR THIS WARRANT OR ANY
SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT.

     

    WARRANT
TO PURCHASE COMMON STOCK

     

    OF

     

    VECTOR
INTERSECT SECURITY ACQUISITION CORP.

     

    W101508-1

     

    This is
to Certify That, FOR VALUE RECEIVED, Catalyst Private Equity Partners
(Israel) II, LP or its assigns (“Holder”), is entitled
to purchase, subject to the provisions of this Warrant, from Vector Intersect
Security Acquisition Corp., a Delaware corporation (the “Company”), 118,750
shares of fully paid, validly issued and nonassessable shares of the common
stock of the Company (“Common Stock”) at a
price of $8.00 per share. The number of shares of Common Stock to be received
upon the exercise of this Warrant and the price to be paid for each share of
Common Stock may be adjusted from time to time as hereinafter set
forth.  The shares of Common Stock deliverable upon such exercise, and
as adjusted from time to time, are hereinafter sometimes referred to as “Warrant Shares” and
the exercise price of a share Common Stock in effect at any time and as adjusted
from time to time is hereinafter sometimes referred to as the “Exercise
Price.”

     

    (a) EXERCISE
OF WARRANT.

     

    (1) This
Warrant may be exercised in whole or in part at any time or from time to time
from the date the Company consummates a Business Combination (as defined in the
Company ’s certificate of incorporation) up to and including October 15, 2013
(the “Exercise
Period”); provided, however, that (i) if either such day is a day on
which banking institutions in the State of New York are authorized by law to
close, then on the next succeeding day which shall not be such a day, and
(ii) in the event of any merger, consolidation or sale of substantially all
the assets of the Company as an entirety, resulting in any distribution to the
Company’s stockholders, prior to termination of the Exercise Period, the Holder
shall have the right to exercise this Warrant commencing at such time through
the termination of the Exercise Period into the kind and amount of shares of
stock and other securities and property (including cash) receivable by a holder
of the number of shares of Common Stock into which this Warrant might have been
exercisable immediately prior thereto.  This Warrant may be exercised
by presentation and surrender hereof to the Company at its principal office with
the Purchase Form annexed hereto duly executed and accompanied by payment of the
Exercise Price for the number of Warrant Shares specified in such
form.  As soon as practicable after each such exercise of this
Warrant, but not later than seven (7) days following the receipt of good and
available funds, the Company shall issue and deliver to the Holder a certificate
or certificates for the Warrant Shares issuable upon such exercise, registered
in the name of the Holder or its designee.  If this Warrant should be
exercised in part only, the Company shall, upon surrender of this Warrant for
cancellation, execute and deliver a new Warrant evidencing the rights of the
Holder thereof to purchase the balance of the Warrant Shares purchasable
hereunder.  As of the end of business on the date of receipt by the
Company of this Warrant at its office in proper form for exercise, the Holder
shall be deemed to be the holder of record of the shares of Common Stock
issuable upon such exercise, notwithstanding that the stock transfer books of
the Company shall then be closed or that certificates representing such shares
shall not then be physically delivered to the Holder.

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    (2) At any
time during the Exercise Period, the Holder may, at its option, exercise this
Warrant on a cashless basis by exchanging this Warrant, in whole or in part (a
“Warrant
Exchange”), into the number of Warrant Shares determined in accordance
with this Section (a)(2), by surrendering this Warrant at the principal
office of the Company or at the office of its stock transfer agent, accompanied
by a notice stating such Holder’s intent to effect such exchange, the number of
Warrant Shares to be exchanged and the date on which the Holder requests that
such Warrant Exchange occur (the “Notice of
Exchange”).  The Warrant Exchange shall take place on the date
specified in the Notice of Exchange or, if later, the date the Notice of
Exchange is received by the Company (the “Exchange
Date”).  Certificates for the shares issuable upon such Warrant
Exchange and, if this Warrant should be exercised in part only, a new Warrant
evidencing the rights of the Holder thereof to purchase the balance of the
Warrant Shares purchasable hereunder, shall be issued as of the Exchange Date
and delivered to the Holder within seven (7) days following the Exchange
Date.  In connection with any Warrant Exchange, this Warrant shall
represent the right to subscribe for and acquire the number of Warrant Shares
equal to (i) the number of Warrant Shares specified by the Holder in its
Notice of Exchange (the “Total Number”) less
(ii) the number of Warrant Shares equal to the quotient obtained by
dividing (A) the product of the Total Number and the existing Exercise
Price by (B) Fair Market Value of a share of Common
Stock.  "Fair Market Value"
shall equal the 5 trading day average closing trading price of the Common Stock
on the relevant market or exchange for the 5 trading days preceding the date of
determination or, if the Common Stock is not listed or admitted to trading on
any market or exchange, and the average price cannot be determined as
contemplated above, the Fair Market Value of the Common Stock shall be as
reasonably determined in good faith by the Company’s Board of Directors with the
concurrence of the Holder.

     

    (b) RESERVATION
OF SHARES.  The Company shall at all times reserve for issuance and/or
delivery upon exercise of the this Warrant such number of shares of Common Stock
as shall be required for issuance and delivery upon exercise of this
Warrant.

     

    (c) FRACTIONAL
SHARES.  No fractional shares or scrips representing fractional shares
shall be issued upon the exercise of this Warrant.  With respect to
any fraction of a share called for upon any exercise hereof, the Company shall
pay to the Holder an amount in cash equal to such fraction multiplied by the
current market value of a share of Common Stock, as defined in Section (a)(2)
above.

     

    (d) LOSS OR
DESTRUCTION OF WARRANT.  Upon receipt by the Company of evidence
satisfactory to it of the loss, theft, destruction or mutilation of this
Warrant, and (in the case of loss, theft or destruction) of reasonably
satisfactory indemnification, and upon surrender and cancellation of this
Warrant, if mutilated, the Company will execute and deliver a new Warrant of
like tenor and date.  Any such new Warrant executed and delivered
shall constitute an additional contractual obligation on the part of the
Company, whether or not this Warrant so lost, stolen, destroyed, or mutilated
shall be at any time enforceable by anyone.

     

    (e) RIGHTS OF
THE HOLDER.  The Holder shall not, by virtue hereof, be entitled to
any rights of a shareholder in the Company, either at law or equity, and the
rights of the Holder are limited to those expressed in this Warrant and are not
enforceable against the Company except to the extent set forth
herein.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    (f) ANTI-DILUTION
PROVISIONS.  In case the Company shall hereafter (i) declare a
dividend or make a distribution on its outstanding Common Stock in shares of
Common Stock, (ii) subdivide or reclassify its outstanding Common Stock into a
greater number of shares, or (iii) combine or reclassify its outstanding Common
Stock into a smaller number of shares, the Exercise Price in effect at the time
of the record date for such dividend or distribution or of the effective date of
such subdivision, combination or reclassification shall be adjusted so that it
shall equal the price determined by multiplying the Exercise Price by a
fraction, the denominator of which shall be the number of shares of Common Stock
outstanding after giving effect to such action, and the numerator of which shall
be the number of shares of Common Stock outstanding immediately prior to such
action.  The number of shares of Common Stock that the Holder shall
thereafter, on the exercise hereof, be entitled to receive shall be adjusted to
a number determined by multiplying the number of shares of Common Stock that
would otherwise (but for the provisions of this –Section (f)) be issuable
on such exercise by a fraction of which (a) the numerator is the Exercise Price
that would otherwise (but for the provisions of this Section (f)) be in effect,
and (b) the denominator is the Exercise Price in effect on the date of such
exercise (taking into account the provisions of this Section
(f)).  Notwithstanding the foregoing, in no event shall the Exercise
Price be less than the par value of the Common Stock.  Adjustment
pursuant to this Section shall be made successively whenever any event listed
above shall occur.

     

    (g) NOTICES
TO WARRANT HOLDERS.  So long as this Warrant shall be outstanding,
(i) if the Company shall pay any dividend or make any distribution upon the
Common Stock or (ii) if the Company shall offer to the holders of Common
Stock for subscription or purchase by them any share of any class or any other
rights or (iii) if any capital reorganization of the Company,
reclassification of the capital stock of the Company, consolidation or merger of
the Company with or into another corporation, sale, lease or transfer of all or
substantially all of the property and assets of the Company to another
corporation, or voluntary or involuntary dissolution, liquidation or winding up
of the Company shall be effected, then in any such case, the Company shall cause
to be mailed to the Holder, at least fifteen days prior the date specified in
(x) or (y) below, as the case may be, a notice containing a brief
description of the proposed action and stating the date on which (x) a
record is to be taken for the purpose of such dividend, distribution or rights,
or (y) such reclassification, reorganization, consolidation, merger,
conveyance, lease, dissolution, liquidation or winding up is to take place and
the date, if any is to be fixed, as of which the holders of Common Stock or
other securities shall receive cash or other property deliverable upon such
reclassification, reorganization, consolidation, merger, conveyance,
dissolution, liquidation or winding up.

     

    (h) RECLASSIFICATION,
REORGANIZATION OR MERGER.  In case of any reclassification, capital
reorganization or other change of outstanding Common Stock of the Company, or in
case of any consolidation or merger of the Company with or into another
corporation (other than a merger with a subsidiary in which merger the Company
is the continuing corporation and which does not result in any reclassification,
capital reorganization or other change of outstanding Common Stock of the class
issuable upon exercise of this Warrant) or in case of any sale, lease or
conveyance to another corporation of the property of the Company as an entirety,
the Company shall, as a condition precedent to such transaction, cause effective
provisions to be made so that the Holder shall have the right thereafter by
exercising this Warrant at any time prior to the expiration of the Warrant, to
purchase the kind and amount of shares of stock and other securities and
property receivable upon such reclassification, capital reorganization and other
change, consolidation, merger, sale or conveyance by a holder of the number of
shares of Common Stock that might have been purchased upon exercise of this
Warrant immediately prior to such reclassification, change, consolidation,
merger, sale or conveyance.  Any such provision shall include
provision for adjustments which shall be as nearly equivalent as may be
practicable to the adjustments provided for in this Warrant.  The
foregoing provisions of this Section (h) shall similarly apply to
successive reclassifications, capital reorganizations and changes of Common
Stock and to successive consolidations, mergers, sales or
conveyances.  In the event that in connection with any such capital
reorganization or reclassification, consolidation, merger, sale or conveyance,
additional shares of Common Stock shall be issued in exchange, conversion,
substitution or payment, in whole or in part, for a security of the Company
other than Common Stock, any such issue shall be treated as an issue of Common
Stock covered by the provisions of Section (f) hereof.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    (i) No Net-Cash
Settlement.  In no event will the Holder be entitled to receive
a net-cash settlement or other consideration in lieu of physical settlement in
securities.

     

    (j) MODIFICATION
OF AGREEMENT.  The provisions of this Warrant may from time to time be
amended, modified or waived, by the Company and the holder of this
Warrant.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    Dated:
October ___, 2008

     

    

     

    VECTOR
INTERSECT SECURITY ACQUISITION CORP.

     

    By:           ___________________________________________

    Name:

    Title:

    

    Holder:

    

    Catalyst
Private Equity Partners (Israel) II, LP

    

    By:
_________________________

    Name:

    Title:

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    PURCHASE
FORM

     

    Dated
____________________

     

    (1)           The
undersigned hereby irrevocably elects to exercise the within Warrant to the
extent of purchasing shares of Common Stock of Vector Intersect Security
Acquisition Corp. (or such number of shares of Common Stock or other securities
or property to which the undersigned is entitled in lieu thereof or in addition
thereto under the provisions of the Warrant).

     

    (2)  The
undersigned hereby elects to make payment (Please check one):

     

    ___ on a
cashless basis pursuant to the provisions of Section (a)(2) of the
Warrant.

     

    ___ with
the enclosed bank draft, certified check or money order payable to the Company
in payment of the exercise price determined under, and on the terms specified
in, the Warrant.

     

    (3)  The
undersigned hereby irrevocably directs that the said shares be issued and
delivered as follows:

    
       

      
        
          	
                  
                     

                    Name(s)
      in Full

                  

                	 	
                  
                     

                    Address(es)

                  

                	 	
                  
                     

                    Number
      of Shares

                  

                	 	
                  
                     

                    S.S.
      or IRS #

                  

                
	 
      	 	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      	 	 
      

        

         

      

    

    (4)  If
the Warrant was not exercised in full, please check the following:
___

     

    The
undersigned hereby irrevocably directs that any remaining portion of the warrant
be issued and delivered as follows:

     

    
      
        	
                
                   

                  Name(s)
      in Full

                

              	 	
                
                   

                  Address(es)

                

              	 	
                
                   

                  Number
      of Shares

                

              	 	
                
                   

                  S.S.
      or IRS #

                

              
	 
      	 	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      	 	 
      

      

    

     

     ____________________________

     

    Signature
of Holder

     

    _____________________________

     

    Print
Name

     

    
      
         

      

      
        6Unassociated Document

    Exhibit
10.29

     

     

    SEVERANCE
AGREEMENT

     

    THIS AGREEMENT is dated as of
November 7, 2006.

     

    BETWEEN:

     

    WESTERN GOLDFIELDS (CANADA) INC.,
a corporation incorporated under the laws of the Province of Ontario
(hereinafter called the "Corporation")

    

    OF THE
FIRST PART

    

    - and
-

    

    RANDALL OLIPHANT (hereinafter
called the "Executive")

     

    OF THE
SECOND PART

     

    WHEREAS the Executive is an
employee of the Corporation and is considered by the Board of Directors of the
Corporation to be a valued employee that has devoted his ability, time, effort
and energy to the affairs of the Corporation;

    

    AND WHEREAS the Corporation
considers the continuance of a sound and vital management to be essential to
protecting and enhancing the best interests of the Corporation and its
shareholders;

     

    AND WHEREAS the Corporation
desires to assure itself of retaining the services of the Executive (including
his services without distraction by uncertainties and risks in the event of a
proposed change of control of the Corporation) and to reward the Executive for
his valuable, dedicated service to the Corporation, should his service terminate
under the circumstances hereinafter described;

     

    NOW THEREFORE THIS AGREEMENT
WITNESSETH that in consideration of the mutual covenants herein contained
and in consideration of the Executive remaining in the employment of the
Corporation at the present time, it is hereby agreed as follows:

    

    
      	
              1.

            	
              Definitions

            

    

     

    
      	
            	
              (a)

            	
              "Agreement" means this
      Agreement as amended from time to
time;

            

    

    

    
      
        	
              	
                (b)

              	
                "Annual Compensation"
      shall mean an amount equal to Executive's annual base salary at the
      annual rate in effect at his Date of Termination, the Target Bonus plus
      all benefits, quantified as 10% of the Executive's annual base salary,
      paid or payable.

              

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    - 2 -

     

    
      
        	
                (c)

              	
                “Board of Directors”
      means the board of directors of the Corporation as at the date of
      this Agreement.

              

      

      

      
        	
                (d)

              	
                “Cause” shall mean
      termination of Executive’s employment by the Corporation or any subsidiary
      thereof or successor thereto, by reason of
  Executive’s:

              

      

      

      
        	
              	
                (i)

              	
                gross
      negligence in the performance of his
duties;

              

      

      

      
        	
              	
                (ii)

              	
                wilful
      and continued failure to substantially perform his duties determined on a
      historic basis prior to a Change of Control with the
      Corporation;

              

      

      

      
        
          	
                	
                  (iii)

                	
                  wilful
      engagement in conduct which is materially injurious to the Corporation or
      its subsidiaries (monetarily or otherwise);
or

                

        

      

      

      
        	
              	
                (iv)

              	
                conviction
      of a criminal offence involving moral
turpitude.

              

      

      

      For
purposes of this subparagraph 1(d) no act, or failure to act, on Executive’s
part shall be considered “wilful” unless done intentionally, or intentionally
omitted by Executive not in good faith and without reasonable belief that his
action or omission was in the best interests of the Corporation.

      

      
        	
                (e)

              	
                “Change of Control”
      means the occurrence of any one or more of the following
      events:

              

      

       

      
        	
              	
                (i)

              	
                the
      Corporation shall not be the surviving entity in a merger, amalgamation or
      other reorganization (or survives only as a subsidiary of an entity other
      than a previously wholly-owned subsidiary of the
    Corporation);

              

      

       

      
        
          	
                	
                  (ii)

                	
                  the
      Corporation sells, leases or exchanges greater than 35% of its assets to
      any other person or entity (other than a wholly-owned subsidiary of the
      Corporation);

                

        

      

      

      
        	
              	
                (iii)

              	
                the
      Corporation is to be dissolved and
liquidated;

              

      

      

      
        
          	
                	
                  (iv)

                	
                  any
      person, entity or group of persons or entities acting jointly or in
      concert acquires or gains ownership or control (including, without
      limitation, the power to vote) more than 35% of the Corporation’s
      outstanding voting securities;
or

                

        

      

      

      
        
          	
                	
                  (v)

                	
                  as
      a result of or in connection with: (A) the contested election of
      directors, or; (B) a transaction referred to in subparagraph 1(e)(i)
      above, the persons who were directors of the Corporation before such
      election shall cease to constitute a majority of the Board of
      Directors.

                

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      - 3 -

       

      
        	
                (f)

              	
                “Date of Termination”
      means:

              

      

       

      
        	
              	
                (i)

              	
                if
      Executive’s employment is terminated by the Executive following a
      Triggering Event, the date specified in the Notice of Termination provided
      by the Executive to the Corporation;
and

              

      

       

      
        
          	
                	
                  (ii)

                	
                  if
      Executive’s employment is terminated for any other reason, the date
      specified in the Notice of Termination provided by the Corporation to the
      Executive, and shall mean termination from active employment, and shall
      not include any notice
period.

                

        

      

      

      
        	
                (g)

              	
                “Disability” means
      incapacity due to physical or mental illness, which shall have caused
      Executive to have been absent from, or unable to perform, the Executive’s
      duties with the Corporation on a full-time basis for six consecutive
      months.

              

      

      

      
        
          	
                  (h)

                	
                  “Notice of Termination”
      shall mean notice which shall indicate the specific termination
      provisions in this Agreement relied upon and shall set forth in reasonable
      detail the facts and circumstances claimed to provide a basis for
      termination of Executive’s employment under the provisions so
      indicated.

                

        

      

      

      
        	
                (i)

              	
                “Severance Amount” shall
      mean an amount equal to 2 times the Executive’s Annual
      Compensation.

              

      

      

      
        	
                (j)

              	
                “Target Bonus” shall
      mean an amount equal to the previous year’s bonus granted to the
      Executive, but shall not exceed 25% of the Executive’s annual base
      salary.

              

      

       

      
        	
                (j)

              	
                “Triggering Event” means
      any one of the following events which occurs without the express agreement
      in writing of the Executive:

              

      

       

      
        	
              	
                (i)

              	
                a
      material adverse change in the salary or benefits of the Executive as they
      exist immediately prior to the Change of
  Control;

              

      

      

      
        
          	
                	
                  (ii)

                	
                  a
      removal of the designation of Chairman in the title of the Executive
      immediately prior to the Change of Control or a material adverse change in
      the responsibilities, duties, powers, rights and discretion associated
      with such title;

                

        

      

       

      
        	
              	
                (iii)

              	
                a
      change in the person or body to whom the Executive reports immediately
      prior to the Change of Control, except if such person or body is of
      equivalent rank or stature or such change is as a result of the
      resignation or removal of such person or the persons comprising such body,
      as the case may be, provided that this shall not include a change
      resulting from a promotion in the normal course of business;
      or

              

      

      

      
        
          	
                	
                  (iv)

                	
                  a
      change in the location at which the Executive is regularly required
      immediately prior to the Change of Control to carry out the terms of his
      employment with the Corporation, which is of a distance greater than 50
      kilometers from the City of Toronto, unless the terms of employment of the
      Executive include the obligation to receive geographic transfers from time
      to time in the normal course of business, or unless the Executive consents
      to the change.

                

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        - 4 -

      

      
         

        
          	
                  2.

                	
                  Term

                

        

      

       

      The term
of this Agreement shall commence on the date hereof and continue for an
indefinite term.

      

      
        	
                3.

              	
                Termination of
      Employment

              

      

      

      
        
          	
                	
                  (a)

                	
                  Termination by the Corporation
      Without Cause. The Corporation shall be entitled to terminate
      Executive’s employment at any time without Cause by giving the Executive a
      one-time payment equal to the Executive’s Annual Compensation,
      plus
      an additional one months’ worth of Annual Compensation for each completed
      year of employment to a maximum of 18 months Annual Compensation. Such
      lump sum cash payment is payable on or before the fifth day following the
      Date of Termination. In addition, subject to the receipt of all necessary
      regulatory approvals, the Corporation shall permit any vested options to
      purchase common shares in the capital of the Corporation held by
      Executives to be exercisable for 6 months after the Date of Termination.
      All options that have not vested shall expire upon the Date of
      Termination. In the event of termination of Executive’s employment without
      Cause, rights and benefits of Executive under executive benefit plans and
      programs of the Corporation, unless prohibited by the relevant plan, will
      be continued for a twelve-month
period.

                

        

      

      

      
        
          	
                	
                  (b)

                	
                  Termination by the Corporation
      for Cause. The Corporation shall be entitled to terminate the
      Executive’s employment at any time for Cause without notice and without
      any payment in lieu of notice. In the event of a termination of
      Executive’s employment for Cause, the Corporation’s obligations hereunder
      shall immediately cease and terminate and the Executive shall be
      immediately relieved of the Executive’s position and responsibilities, and
      in such an event there will be no continued salary payments by the
      Corporation to the Executive and any rights and benefits of Executive
      under executive benefit plans and programs (including medical and dental
      insurance) will terminate as of the Date of Termination in accordance with
      the terms of such plans and programs. Upon the Date of Termination all
      vested options to purchase common shares in the Capital of the Corporation
      held by the Executive shall be cancelled, and all unvested options shall
      expire.

                

        

      

       

      
        
          	
                	
                  (c)

                	
                  Termination Due to Disability.
      The Corporation shall be entitled to terminate the Executive’s
      employment at any time due to the Disability of the Executive, provided
      that such Disability has not occurred in the execution of the business of
      the Corporation. In the event of a termination of Executive’s employment
      due to Disability, the Executive shall be entitled to receive compensation
      equal to the Executive’s Annual Compensation for the first year after the
      Date of Termination, whereafter the Executive shall be entitled to receive
      such compensation, if any, as may be determined by the Corporation, within
      the Corporation’s discretion. All options shall be deemed cancelled and
      expired upon the Date of Termination, unless the Corporation, acting
      within its discretion, decides
otherwise.

                

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      - 5 -

       

      
        
          	
                	
                  (d)

                	
                  Termination following a Change
      of Control. If, following a Change of Control, the Corporation
      shall terminate Executive’s employment other than for death, Disability or
      Cause, within 18 months after the date upon which a Change of Control
      occurs, or if Executive shall terminate his employment within 6 months
      following a Triggering Event, then the Executive shall be entitled to the
      following:

                

        

      

       

      
        	
              	
                (i)

              	
                Salary
      and Benefits. The Corporation
      shall pay Executive a lump sum cash payment in an amount equal to the
      Severance Amount on or before the fifth day following the Date of
      Termination;

              

      

       

      
        
          	
                	
                  (ii)

                	
                  Equity
      Based Compensation. Subject to the
      receipt of all necessary regulatory approvals, the Corporation shall cause
      any and all outstanding options or other securities or rights to acquire
      share in the Corporation to purchase common shares in the capital of the
      Corporation held by Executive will vest and become immediately exercisable
      in full and not to lapse until the expiry of their original term;
      and

                

        

      

       

      
        	
              	
                (iii)

              	
                Legal
      Fees. The Corporation
      shall pay all reasonable legal fees and expenses incurred by Executive as
      a result of such termination (including all such fees and expenses, if
      any, incurred in contesting or disputing such termination or in seeking to
      obtain or enforce any right or benefit provided by this Agreement)
      promptly, from time to time, at Executive’s request, as such fees and
      expenses are incurred.

              

      

       

      
        	
                
                  4.

                

              	
                General

              

      

       

      
        	
              	
                (a)

              	
                Amounts
      herein not subject to
mitigation

              

      

       

      Executive
shall not be obligated to seek other employment in mitigation of the amounts
payable or arrangements made under any provision of this Agreement and the
obtaining of any such other employment shall in no event effect any reduction of
the Corporation’s obligations to make (or cause to be made), the payments and
arrangements required to be made under this Agreement.

       

      
        	
              	
                (b)

              	
                Successors

              

      

       

      This
Agreement shall be binding upon and enure to the benefit of the Corporation and
any successor of the Corporation, by merger or otherwise. This Agreement shall
also be binding upon and enure to the benefit of Executive, his heirs and
personal representatives of his estate.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      - 6 -

       

      
        	
              	
                (c)

              	
                Severability

              

      

       

      Any
provision in this Agreement which is prohibited or unenforceable in any
jurisdiction by reason of applicable law shall, as to such jurisdiction, be in
effect only to the extent of such prohibition or unenforceability without
invalidating or effecting the remaining provisions hereof, and any such
prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.

       

      
        	
              	
                (d)

              	
                Time

              

      

       

      Time
shall be of the essence of this Agreement. 

       

      
        	
              	
                (e)

              	
                Currency

              

      

       

      All of
the sums of money referred to in this Agreement shall mean Canadian
funds.

       

      
        	
              	
                (f)

              	
                Governing
      Law

              

      

       

      This
Agreement shall be governed and construed in accordance with the laws of the
Province of Ontario and the federal laws of Canada applicable
therein.

       

      
        	
              	
                (g)

              	
                Entire
      Agreement

              

      

       

      This
Agreement constitutes the entire agreement and understanding between and among
the parties hereto with respect to the subject matter hereof and supersedes any
prior agreement, representation or understanding with respect
thereto.

       

      
        	
              	
                (h)

              	
                Amendments

              

      

       

      This
Agreement may not be modified, amended, altered or supplemented except upon the
execution and delivery of a written agreement executed by all of the parties
hereto.

      

      
        	
              	
                (i)

              	
                Independent
      Advice

              

      

      

      The
Executive acknowledges having been advised that he is entitled to obtain
independent legal advice with respect hereto prior to executing this
Agreement.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      - 7 -

       

      
        	
              	
                (j)

              	
                Release of
      Claims

              

      

       

      Notwithstanding
any other provisions contained in this Agreement, the Corporation shall require,
as a condition precedent to the payment of the Severance Payments to the
Executive, that the Executive execute, after his last day of employment by the
Corporation, a release and covenant in favor of the Corporation and its
stockholders, officers, employees, directors and affiliates in a form
appended hereto as Exhibit “A”. If the Executive fails to provide the required
release and covenant, or within seven days following its delivery to the
Corporation revokes the required release and covenant, and the Corporation has
not alleged just cause for termination or denied a Change in Control, the sole
obligation of the Corporation to the Executive under this Agreement shall be the
payment of the equivalent of two weeks salary calculated as at the time of
termination.

       

      
        	
              	
                (k)

              	
                Plural
      and Gender:

              

      

       

      Whenever
used in this Agreement, words importing the singular number only shall include
the plural and vice versa and words importing the masculine gender shall include
the feminine gender.

       

      
        	
              	
                (l)

              	
                Notices

              

      

       

      Any
notice, request, consent, agreement or approval which may or is required to be
given pursuant to this Agreement, shall be in writing and shall be sufficiently
given or made if delivered or telecopied in the case of :

        

      
        	
              	
                (i)

              	
                the
      Corporation, addressed as follows:

              

      

      

      Western Goldfields (Canada) Inc.

      2 Bloor
Street West 

      Suite
2102, P.O. Box 110 

      Toronto,
Ontario

      M4W
3E2

      

      Attention:
President and Chief Executive Officer

      

      
        	
              	
                Telephone:

              	
                (416)
      324-6000

              

      

      
        	
              	
                Telecopier:

              	
                (416)
      324-9494

              

      

      

      
        	
                
                

              	
                (ii)

              	
                the
      Executive (by delivery only), addressed as
  follows:

              

      

      

      Randall
Oliphant

      230 St.
Leonard’s Avenue 

      Toronto,
Ontario

      M4N
1K7

      

      
        	
              	
                Telephone:

              	
                (416)
      324-6001 (b)

              

      

      (416)
545-0070 (h)

       

      or to
such other address as the relevant party may from time to time advise by notice
in writing given pursuant to this section. The date of receipt of any such
notice, request, consent, agreement or approval shall be deemed to be the date
of delivery or telecopy (if during normal business hours or, if not, the next
business day).

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      - 8 -

       

      
        	
              	
                (j)

              	
                Counterparts

              

      

      

      This
Agreement may be executed in one or more counterparts which together shall be
deemed to constitute one valid and binding agreement and delivery of the
counterparts may be effected by means of a telecopied transmission.

       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    	 
      	 	
                                            WESTERN
      GOLDFIELDS (CANADA) INC.

                                          
	 
      	 	 
      	 
      
	 
      	 	 
      	 
      
	 
      	 	
                                            Per: 
      

                                          	
                                            
                                              /s/
      Brian Penny

                                            

                                          
	 
      	 	 
      	 
      
	
                                            SIGNED,
      SEALED AND DELIVERED

                                          	 	
                                            )

                                          	 
      
	
                                            in
      the presence of

                                          	 	
                                            )

                                          	 
      
	 
      	 	
                                            )

                                          	 
      
	
                                            /s/
      Karen Dietrich

                                          	 	
                                            )

                                            
                                              )

                                              
                                                )

                                              

                                            

                                          	
                                            /s/
      Randall Oliphant

                                          
	
                                            Witness

                                          	 	
                                            )

                                          	
                                            RANDALL
      OLIPHANT

                                          

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      RELEASE

       

      Randall
Oliphant (hereinafter called the “Releasor”), which term includes heirs,
executors, administrators, successors and assigns, in consideration of the
payments from Western Goldfields (Canada) Inc. (hereinafter called the
“Releasee”), as described in the Severance Agreement (attached) dated November
*, 2006, the sufficiency of which is hereby expressly acknowledged, hereby
releases and forever discharges the Releasee, which term includes officers,
directors, agents, employees, members, successors and assigns and all related
and affiliated organizations and their officers, directors, agents, employees,
members, shareholders, successors and assigns, of and from all manner of action,
causes of action, claims or demands which the Releasor had, now has, or
hereafter may have, regarding any matters existing as of the date hereof,
including without limitation any claims arising out of the Releasor’s employment
or the termination of that employment with the Releasee.

       

      The
Releasor hereby specifically covenants, represents and warrants to the Releasee
that the Releasor has no further claims against the Releasee for or arising out
of the Releasor’s employment with the Releasee or the termination of such
employment, including without limiting the generality of the foregoing, any
claims for pay, notice of termination, pay in lieu of
such notice, severance pay, expenses, bonus, commission, overtime pay, interest,
benefits and/or vacation pay and specifically including any claim under The Workplace Safety and Insurance
Act, The Ontario Human Rights Code, The Employment Standards Act 2000,
and in particular payments for “severance”, “notice” and “termination
pay” under that Act’s sections 57 and 64, or other similar legislation, or the
common law. In the event that the Releasor should make hereafter any claim or
demand or commence or threaten to commence any action, proceeding or make any
claim against the Releasee in respect of any matter contemplated by this
release, this document may be raised as an estoppel and complete bar to any such
claim, demand, action, proceeding or complaint.

       

      And for
the consideration above, the Releasor further covenants and agrees to save
harmless and indemnify the Releasee from and against all claims, charges, taxes
or penalties and demands which may be made by the Minister of National Revenue
requiring the Releasee to pay income tax under the Income Tax Act (Canada) in
respect of income tax payable by the Releasor in excess of the income tax
previously withheld; and in respect of any and all claims, charges, taxes, or
penalties and demands which may be made on behalf of or related to the
Employment Insurance Commission or the Canada Pension Commission under the
applicable Statutes and Regulations.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      - 10 -

       

      It is an
express term of this release that the settlement herein is confidential, and the
Releasor hereby covenants, represents and warrants that the Releasor will not
reveal the terms of this settlement or release to any person other than the
Releasor’s immediate family, legal or financial advisors.

       

      The
Releasor acknowledges having read and understood the above release and has had
the opportunity to obtain independent legal advice with respect thereto and
understands that it contains a full and final release of all claims against the
Releasee relating to the Releasor’s employment or termination of such employment
and there is no admission of liability on the part of the Releasee, and that
such liability is denied.

       

      IN WITNESS WHEREOF, the
Releasor has duly executed this Release this 7th
day of November, 2006.

       

      
        
          
            
              
                	
                        WITNESS:

                      	 	
                        )

                      	 
      
	 
      	 	
                        )

                      	 
      
	 	 	) 	 
	
                           

                      	 	
                        )

                      	
                           

                      
	 
      	 	
                         

                      	
                        RANDALL
      OLIPHANT

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