Document:

ex10-3.htm

     

     

    EXHIBIT
10.3

     

    

     

    WEYERHAEUSER COMPANY

     

    SALARIED EMPLOYEES

     

    SUPPLEMENTAL RETIREMENT PLAN

     

    As
Amended and Restated Effective January 1, 2009

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Table
of Contents

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                      
                                                                        
                                                                          
                                                                            
                                                                              
                                                                                
                                                                                  
                                                                                    
                                                                                      
                                                                                        
                                                                                          
                                                                                            
                                                                                              
                                                                                                
                                                                                                  
                                                                                                    
                                                                                                      
                                                                                                        
                                                                                                          
                                                                                                            
                                                                                                              
                                                                                                                
                                                                                                                  	
                                                                                                                          Topic

                                                                                                                        	 
      	
                                                                                                                          Page

                                                                                                                        
	 	 
	
                                                                                                                          Article
      I:  DEFINITIONS

                                                                                                                        	
                                                                                                                          2

                                                                                                                        
	 	 
	
                                                                                                                          Article
      II: SERVICE

                                                                                                                        	
                                                                                                                          7

                                                                                                                        
	
                                                                                                                          2.1

                                                                                                                        	
                                                                                                                          Years
      of Credited Service

                                                                                                                        	
                                                                                                                          7

                                                                                                                        
	
                                                                                                                          2.2

                                                                                                                        	
                                                                                                                          Years
      of Vesting Service

                                                                                                                        	
                                                                                                                          7

                                                                                                                        
	 	 
	
                                                                                                                          Article
      III: ELIGIBILITY AND PARTICIPATION

                                                                                                                        	
                                                                                                                          8

                                                                                                                        
	
                                                                                                                          3.1

                                                                                                                        	
                                                                                                                          Conditions
      to Becoming an SRP Participant

                                                                                                                        	
                                                                                                                          8

                                                                                                                        
	
                                                                                                                          3.2

                                                                                                                        	
                                                                                                                          Prior
      Participants in MB Supplemental Plan

                                                                                                                        	
                                                                                                                          8

                                                                                                                        
	
                                                                                                                          3.3

                                                                                                                        	
                                                                                                                          Continuation
      of SRP Participant Status

                                                                                                                        	
                                                                                                                          8

                                                                                                                        
	
                                                                                                                          3.4

                                                                                                                        	
                                                                                                                          Individual
      Agreements

                                                                                                                        	
                                                                                                                          8

                                                                                                                        
	 	 
	
                                                                                                                          Article
      IV: PENSION BENEFITS

                                                                                                                        	
                                                                                                                          9

                                                                                                                        
	
                                                                                                                          4.1

                                                                                                                        	
                                                                                                                          Earnings
      Based Pension Benefits

                                                                                                                        	
                                                                                                                          9

                                                                                                                        
	
                                                                                                                          4.2

                                                                                                                        	
                                                                                                                          Special
      Rules for Certain Merged Plans

                                                                                                                        	
                                                                                                                          11

                                                                                                                        
	
                                                                                                                          4.3

                                                                                                                        	
                                                                                                                          Benefit
      Calculations Not Involving Offset of Prior Accrued
Benefits

                                                                                                                        	
                                                                                                                          14

                                                                                                                        
	
                                                                                                                          4.4

                                                                                                                        	
                                                                                                                          Rules
      Against Cutback of Benefit Amounts

                                                                                                                        	
                                                                                                                          14

                                                                                                                        
	
                                                                                                                          4.5

                                                                                                                        	
                                                                                                                          Normal
      Retirement Benefit

                                                                                                                        	
                                                                                                                          14

                                                                                                                        
	
                                                                                                                          4.6

                                                                                                                        	
                                                                                                                          Early
      Retirement Benefit

                                                                                                                        	
                                                                                                                          15

                                                                                                                        
	
                                                                                                                          4.7

                                                                                                                        	
                                                                                                                          Disability
      Retirement Benefit

                                                                                                                        	
                                                                                                                          16

                                                                                                                        
	
                                                                                                                          4.8

                                                                                                                        	
                                                                                                                          Enhanced
      Vested Retirement Benefit

                                                                                                                        	
                                                                                                                          16

                                                                                                                        
	 	 
	
                                                                                                                          Article
      V: VESTING

                                                                                                                        	
                                                                                                                          16

                                                                                                                        
	 	 
	
                                                                                                                          Article
      VI: FORMS OF BENEFIT AND TIMING OF PAYMENTS

                                                                                                                        	
                                                                                                                          17

                                                                                                                        
	
                                                                                                                          6.1

                                                                                                                        	
                                                                                                                          Benefit
      Payment Events

                                                                                                                        	
                                                                                                                          17

                                                                                                                        
	
                                                                                                                          6.2

                                                                                                                        	
                                                                                                                          Form
      of Benefit

                                                                                                                        	
                                                                                                                          18

                                                                                                                        
	
                                                                                                                          6.3

                                                                                                                        	
                                                                                                                          Applicable
      Interest Rate

                                                                                                                        	
                                                                                                                          19

                                                                                                                        
	 	 
	
                                                                                                                          Article
      VII: PRE-COMMENCEMENT DEATH BENEFITS

                                                                                                                        	
                                                                                                                          19

                                                                                                                        
	 	 
	
                                                                                                                          Article
      VIII: CODE LIMITATIONS DO NOT APPLY

                                                                                                                        	
                                                                                                                          19

                                                                                                                        
	 	 
	
                                                                                                                          Article
      IX: MISCELLANEOUS PROVISIONS

                                                                                                                        	
                                                                                                                          19

                                                                                                                        
	
                                                                                                                          9.1

                                                                                                                        	
                                                                                                                          No
      Right to Continued Employment

                                                                                                                        	
                                                                                                                          19

                                                                                                                        
	
                                                                                                                          9.2

                                                                                                                        	
                                                                                                                          Construction
      of Plan

                                                                                                                        	
                                                                                                                          19

                                                                                                                        
	
                                                                                                                          9.3

                                                                                                                        	
                                                                                                                          No
      Assignment of Benefits

                                                                                                                        	
                                                                                                                          20

                                                                                                                        

                                                                                                                   

                                                                                                                   

                                                                                                                  
                                                                                                                    
                                                                                                                       

                                                                                                                    

                                                                                                                    
                                                                                                                      - i
-

                                                                                                                      
                                                                                                                        

                                                                                                                      

                                                                                                                    

                                                                                                                    
                                                                                                                       

                                                                                                                    

                                                                                                                  

                                                                                                                   

                                                                                                                   

                                                                                                                  	
                                                                                                                          9.4

                                                                                                                        	
                                                                                                                          Taxes

                                                                                                                        	
                                                                                                                          20

                                                                                                                        
	
                                                                                                                          9.5

                                                                                                                        	
                                                                                                                          Participant's
      Cooperation

                                                                                                                        	
                                                                                                                          20

                                                                                                                        
	
                                                                                                                          9.6

                                                                                                                        	
                                                                                                                          Successors
      and Assigns

                                                                                                                        	
                                                                                                                          20

                                                                                                                        
	
                                                                                                                          9.7

                                                                                                                        	
                                                                                                                          Governing
      Law

                                                                                                                        	
                                                                                                                          20

                                                                                                                        
	
                                                                                                                          9.8

                                                                                                                        	
                                                                                                                          Former
      Willamette SBP Provision Not Applicable After February 11,
      2002

                                                                                                                        	
                                                                                                                          21

                                                                                                                        
	
                                                                                                                          9.9

                                                                                                                        	
                                                                                                                          Compliance
      with Code Section 409A

                                                                                                                        	
                                                                                                                          21

                                                                                                                        
	 	 
	
                                                                                                                          Article
      X: ADMINISTRATION OF THE PLAN

                                                                                                                        	
                                                                                                                          21

                                                                                                                        
	
                                                                                                                          10.1

                                                                                                                        	
                                                                                                                          Plan
      Administrator

                                                                                                                        	
                                                                                                                          21

                                                                                                                        
	
                                                                                                                          10.2

                                                                                                                        	
                                                                                                                          Benefit
      Administrator

                                                                                                                        	
                                                                                                                          22

                                                                                                                        
	
                                                                                                                          10.3

                                                                                                                        	
                                                                                                                          Claims
      and Appeal Procedure

                                                                                                                        	
                                                                                                                          22

                                                                                                                        
	 	 
	
                                                                                                                          Article
      XI: UNFUNDED PLAN

                                                                                                                        	
                                                                                                                          23

                                                                                                                        
	 	 
	
                                                                                                                          Article
      XII: AMENDMENT AND TERMINATION

                                                                                                                        	
                                                                                                                          23

                                                                                                                        

                                                                                                                

                                                                                                                 

                                                                                                              

                                                                                                            

                                                                                                          

                                                                                                        

                                                                                                      

                                                                                                    

                                                                                                  

                                                                                                

                                                                                              

                                                                                            

                                                                                          

                                                                                        

                                                                                      

                                                                                    

                                                                                  

                                                                                

                                                                              

                                                                            

                                                                          

                                                                        

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    
      
         

      

      
        - ii
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    WEYERHAEUSER COMPANY

     

    SALARIED EMPLOYEES SUPPLEMENTAL RETIREMENT PLAN

     

    As
Amended and Restated Effective January 1, 2009

     

    PURPOSE

     

    This
Weyerhaeuser Company Salaried Employees Supplemental Retirement Plan ("SRP" or
the "Plan") is established as an unfunded pension plan primarily for the purpose
of providing deferred compensation for a select group of management or highly
compensated employees within the meaning of Sections 201, 301 and 401 of
ERISA (and
DOL Regulation Section 2520.104-23).  In particular, this Plan
provides nonqualified retirement pension benefits which supplement the benefits
provided under the Qualified Salaried Plan.

     

    This Plan
is hereby amended and restated effective January 1, 2009.  Unless
otherwise stated, the provisions included in this restatement are effective for
Separations from Service on or after January 1, 2009.  Separations
from Service on and after January 1, 2005 and prior to January 1, 2009
shall be subject to the provisions of the Plan in place on December 31, 2004, as
modified by the operations of the SRP in accordance with Code Section 409A and
then applicable IRS guidance (including transition relief).

     

    
      
         

      

      
        - 1
-

        
          

        

      

      
         

      

    

     

     

    
      Article I:
Definitions

       

    

    Capitalized
terms in this Plan document which are not in italics shall have the respective
meaning stated in this Article I.  Capitalized terms in
italics shall have the meaning stated in Article I of the Qualified
Salaried Plan, except that any reference to the "Plan" which is contained in any
such definition shall be deemed to refer to this Plan, where the context so
requires.

     

    
      	
              1.1

            	
              Adjusted
      Earnings

            

    

     

    For any
calendar year, an SRP Participant's "Adjusted Earnings" shall be equal to the
annualized amount of his or her compensation that would have been recognized as
Earnings
if such Earnings
were not subject to the Code Section 401(a)(17) limitations on includible
compensation.  The five highest consecutive years of combined
Adjusted Earnings
that are taken into account under this Plan may be a different set of years than
the five highest
consecutive years taken into account for purposes of Final Average Monthly Earnings under the Qualified
Salaried Plan. For
an SRP Participant who, prior to January 1, 2003, was a member of the Willamette
SBP, Adjusted Earnings under this Plan shall be based solely on any Adjusted
Earnings payable to him or her on or after January 1, 2003.

     

    
      	
              1.2

            	
              Administrative
      Committee

            

    

     

    "Administrative
Committee" means Weyerhaeuser's Administrative Committee.

     

    
      	
              1.3

            	
              Appeals
      Administrator

            

    

     

    "Appeals
Administrator" means the committee charged with the duty of acting on behalf of
this Plan as the administrator of appeals of denied claims. As of the Effective
Date, the Appeals Administrator is the Compensation Committee.

     

    
      	
              1.4

            	
              Code

            

    

     

    "Code"
shall mean the Internal Revenue Code of 1986, as amended, including all
regulations and other guidance promulgated thereunder.

     

    
      	
              1.5

            	
              Compensation
      Committee

            

    

     

    "Compensation Committee"
means the Compensation Committee of the Board of Directors of
Weyerhaeuser, or any individual or group of individuals delegated
discretionary or ministerial authority by the Compensation Committee with
respect to this Plan, including but not limited to Weyerhaeuser's Administrative
Committee.

     

    
      
         

      

      
        - 2
-

        
          

        

      

      
         

      

    

     

    
      	
              1.6

            	
              Disability or
      Disabled

            

    

     

    "Disabled",
or "Disability" and similar terms mean (or refer to) a medical condition in
which an SRP Participant is either entitled to total and permanent disability
benefits under the Social Security Act or judged to be totally and permanently
disabled by the Administrative Committee or any person or committee delegated by
the Administrative Committee to make such
determinations.  Notwithstanding the foregoing, any such determination
shall be made under guidelines no less restrictive than the minimum requirements
found in Treasury Regulation Section 1.409A-3(i)(4).

     

    
      	
              1.7

            	
              Effective
      Date

            

    

     

    The
"Effective Date" of this restated Plan document shall be January 1, 2009, that
being the date as of which the terms and conditions of this amended and restated
Plan document are effective, except to the extent that a different effective
date is expressly stated herein.

     

    
      	
              1.8

            	
              Employee

            

    

     

    "Employee"
means any person who is employed by an Employer as a common law employee
determined from appropriate personnel records of the employing company, but
excluding any such person who is reclassified as a common law employee by a
court proceeding or governmental agency (through judgment, audit, settlement or
otherwise).  Except to the extent specifically provided to the
contrary in this Plan, the term "Employee" does not include a "leased employee"
(within the meaning of Code Section 414(n)) or a nonresident alien with no U.S.
source income.

     

    
      	
              1.9

            	
              Employer

            

    

     

    "Employer"
means, as of a date, Weyerhaeuser and all companies which, with Weyerhaeuser,
are treated as a single company under Code Section 414(b), (c), (m) or (o) as of
that date (or, depending on the context, any one of such
companies).  Notwithstanding the foregoing, Employer shall mean
Weyerhaeuser and all companies which, with Weyerhaeuser, are treated as a single
company under Code Sections 414(b) and 414(c) but not 414(m) or 414(o) when used
in the definition of Specified Employee and for determining whether an SRP
Participant has had a Separation from Service.

     

    
      	
              1.10

            	
              Eligible Key
      Management Member

            

    

     

    "Eligible
Key Management Member" means an individual who was designated as a member of the
key management group by the Chief Executive Officer of Weyerhaeuser as of
September 1990, and whose letter of designation specifically outlines
that he or she is eligible for benefits under the Unreduced At 60 provision of
this Plan.

     

    
      	
              1.11

            	
              ERISA

            

    

     

    "ERISA"
means the Employee Retirement Income Security Act of 1974, as amended, and all
regulations and other guidance promulgated thereunder.

     

    
      
         

      

      
        - 3
-

        
          

        

      

      
         

      

    

     

    
      	
              1.12

            	
              Former Member of the
      Willamette SBP

            

    

     

    "Former
Member of the Willamette SBP" means an individual who, on December 31, 2002, was
an "Active Member", "Inactive Member" or "Retired Member" of the Willamette
SBP.

     

    
      	
              1.13

            	
              Former Participant in
      the Supplemental MB Plan

            

    

     

    "Former
Participant in the Supplemental MB Plan" means an individual who, on December
31, 2000, was an active participant in – or a terminated participant entitled to
receive benefits from – the Supplemental MB Plan.

     

    
      	
              1.14

            	
              Individual
      Agreement

            

    

     

    An
"Individual Agreement" is an agreement between the Employer and an SRP
Participant that provides supplemental benefits under this Plan in addition to
or in place of those benefits provided pursuant to the terms and conditions of
this Plan.  Individual Agreements are identified on Exhibit A
hereto.

     

    
      	
              1.15

            	
              Plan

            

    

     

    "Plan"
means this Weyerhaeuser Company Salaried Employees Supplemental Retirement Plan,
as originally adopted as of February 10, 1987, and as it may be amended from
time to time.  Unless otherwise specified herein, the terms of this
amended and restated Plan shall apply to the Target Accrued Benefit accrued on
and after the Effective Date.

     

    
      	
              1.16

            	
              Plan
      Year

            

    

     

    "Plan
Year" means the calendar year.

     

    
      	
              1.17

            	
              Qualified MB
      Plan

            

    

     

    "Qualified
MB Plan" means the Retirement Plan for Salaried Employees of MacMillan Bloedel
of America Inc. and Subsidiary, Associated and Affiliated
Companies.  If and when there is a termination of the Qualified MB
Plan, any reference to a benefit under the Qualified MB Plan shall mean the
benefit earned under that plan prior to its termination, whether paid from the
plan or from an annuity contract resulting from the plan
termination.

     

    
      	
              1.18

            	
              Qualified Salaried
      Plan

            

    

     

    "Qualified
Salaried Plan" means the Weyerhaeuser Company Retirement Plan for Salaried
Employees, restated as of January 1, 2005, and as it may be amended from time to
time; provided, however, that for purposes of this Plan, amendments to the
Qualified Salaried Plan will be recognized to the extent permitted by Code
Section 409A and to the extent any such amendment increases benefits, adds a
subsidized or ancillary benefit or removes subsidized or ancillary benefits
under the Qualified Salaried Plan.

     

    
      
         

      

      
        - 4
-

        
          

        

      

      
         

      

    

     

    
      	
              1.19

            	
              Separation from
      Service

            

    

     

    "Separation from Service"
means the date on which an SRP Participant retires or otherwise has a
termination of employment with the Employer in accordance with Treasury
Regulation Section 1.409A-1(h)(1)(i).  For purposes of
determining whether a Separation from Service has occurred, the applicable
percentages for the tests under Code Sections 414(b) and (c) (and Code Section
1563(a), as applicable) as applied to determine the "service recipient" and/or
the "employer" shall remain unchanged to the extent allowed in Treasury
Regulation Section 1.409A-1(h)(3).

     

    
      	
              1.20

            	
              Specified
      Employee

            

    

     

    "Specified
Employee" means a "key employee" (as defined in Code Section 416(i) without
regard to Code Section 416(i)(5)) of the Employer if any stock of the Employer
is traded on an established securities market or otherwise.  For
purposes of this Plan, an SRP Participant is a key employee if he or she meets
the requirements of Code Section 416(i)(1)(A)(i), (ii), or (iii) (applied in
accordance with the regulations thereunder and disregarding Code Section
416(i)(5)) at any time during the 12-month period ending on a "Specified
Employee Identification Date."  If an SRP Participant is a key
employee as of the Specified Employee Identification Date, he or she is treated
as a Specified Employee for the 12-month period beginning on the "Specified
Employee Effective Date."  The Administrative Committee may designate
any date in a calendar year as the Specified Employee Identification Date
provided that it uses the same date with respect to all arrangements, and any
change to the date may not be effective for a period of 12 months.  If
no date is so designated, the Specified Employee Identification Date is December
31.  The Administrative Committee may designate any date in a calendar
year as the Specified Employee Effective Date provided that it uses the same
date with respect to all arrangements, and any change to the date may not be
effective for a period of 12 months.  If no date is designated, first
day of the fourth month following the Specified Employee Identification Date is
the Specified Employee Effective Date.

     

    
      	
              1.21

            	
              SRP
      Administrator

            

    

     

    "SRP
Administrator" means the Administrative Committee.

     

    
      	
              1.22

            	
              SRP Benefit
      Commencement Date

            

    

     

    "SRP
Benefit Commencement Date" means the date on which Supplemental Accrued Benefits
become payable under this Plan in accordance with Section 6.1.

     

    
      	
              1.23

            	
              SRP
      Participant

            

    

     

    "SRP
Participant" means an individual who satisfies the eligibility requirements
stated in Section 3.1.

     

    
      
         

      

      
        - 5
-

        
          

        

      

      
         

      

    

     

    
      	
              1.24

            	
              Supplemental Accrued
      Benefit

            

    

     

    Subject
to certain further rules and exceptions stated in Article IV of this Plan,
"Supplemental Accrued Benefit" means, in general, the difference of (a) an SRP
Participant's Target Accrued Benefit under this Plan, minus (b) his or her Accrued
Benefit under the Qualified Salaried Plan, to the extent that an SRP
Participant has a Vested
benefit under this Plan.  For purposes of this calculation, the
SRP Participant's Accrued
Benefit under the Qualified Salaried Plan shall include all amounts
awarded to any alternate payee(s).  The Supplemental Accrued Benefit
is expressed as the monthly amount of a Single Life Annuity
commencing as of the Normal
Retirement Date.

     

    
      	
              1.25

            	
              Supplemental Benefit
      in the Normal Form

            

    

     

    An SRP
Participant's "Supplemental Benefit in the Normal Form" means the dollar amount
of the monthly benefit that is payable as a Single Life Annuity to an SRP
Participant from this Plan, commencing as of his or her SRP Benefit Commencement
Date. The amount of the Supplemental Benefit in the Normal Form shall take
account of all applicable rules stated in Article IV of this Plan, and in
Article IV (or any Attachment) of the Qualified Salaried Plan, for determining
any applicable adjustment based on an SRP Benefit Commencement Date that is
either (a) prior to the Normal
Retirement Date, or (b) later than April 1 following the year in which
the SRP Participant attains age 70-1/2.

     

    
      	
              1.26

            	
              Supplemental MB
      Plan

            

    

     

    "Supplemental
MB Plan" means the MacMillan Bloedel Companies Supplemental Retirement Income
Plan.

     

    
      	
              1.27

            	
              Target Accrued
      Benefit

            

    

     

    "Target
Accrued Benefit" means an SRP Participant's target level of overall monthly
pension benefit described by the terms of Section 4.1 of this
Plan.  The amount of the Target Accrued Benefit is expressed as the
monthly amount of a Single
Life Annuity commencing as of the Normal
Retirement Date.

     

    
      	
              1.28

            	
              Unreduced At
      60

            

    

     

    The term
"Unreduced At 60" means the provision of this Plan which provides that should
the benefit under the Qualified Salaried Plan be reduced for Eligible Key
Management Members because of early commencement of benefits after age 60, then
an additional benefit equal to the amount that the benefit was reduced because
of early commencement will be paid from this Plan.

     

    
      	
              1.29

            	
              Weyerhaeuser

            

    

     

    "Weyerhaeuser"
means Weyerhaeuser Company, which is the company that originally adopted this
Plan and which continues to act as its sponsor.

     

    
      
         

      

      
        - 6
-

        
          

        

      

      
         

      

    

     

     

    
      Article II:
Service

    

     

    
      	
              2.1

            	
              Years of Credited
      Service

            

    

     

    (a)           As Defined in the Qualified
Salaried Plan

     

    For
purposes of determining the Target Accrued Benefit under this Plan, an SRP
Participant shall be deemed to have accrued, as of a given date, the number of
whole and fractional Years
of Credited Service which are credited to him or her as of the same date
under the Qualified Salaried Plan.

     

    (b)           Willamette Benefit
Credits

     

    For an
SRP Participant who, prior to January 1, 2003, was a member of the Willamette
Salaried Plan and who, on or after January 1, 2003, has at least an Hour
of Service as an SRP
Participant, his or her whole and fractional Willamette
Bridgeable Benefit Credits shall be credited as an equal number of whole
and fractional Years
of Credited Service for purposes of determining a Target Accrued Benefit
under Article IV of this Plan. However,
any Willamette
Frozen Benefit Credits shall not be treated as Years
of Credited Service hereunder; instead, the Target Accrued Benefit for
such an SRP Participant with Willamette
Frozen Benefit Credits shall be determined as described in Section 4.2(a)(i)(B)
of this Plan.

     

    (c)           MacMillan Bloedel Years of
Benefit Credits

     

    For an
SRP Participant who, prior to January 1, 2001, had earned service for benefit
accrual purposes under the Qualified MB Plan and who, on or after January 1,
2001, has at least an Hour
of Service as a Participant
in the Qualified Salaried Plan, his or her whole and fractional Years
of Credited Service for purposes of this Plan shall be as stated in
Section 4.3(b) of the Qualified Salaried Plan, and shall therefore be equal to
the sum of such benefit accrual service earned under the Qualified MB Plan prior
to January 1, 2001, plus Years
of Credited Service earned on and after January 1, 2001 under the
Qualified Salaried Plan.

     

    
      	
              2.2

            	
              Years of Vesting
      Service

            

    

     

    For
purposes of becoming 100% Vested
under this Plan, an SRP Participant shall be deemed
to have, as of a given date, the number of whole and fractional Years
of Vesting Service which are credited to him or her as of the same date
under the Qualified Salaried Plan. The
provisions of Section 2.2(c)(ii) of the Qualified Salaried Plan, which provide
for reciprocal vesting credit and other rules pertaining to vesting and
forfeiture of service for any individual who was formerly a member of a
qualified pension plan sponsored by Willamette Industries, Inc. shall likewise
apply for purposes of determining Years of Vesting Service
under this Plan.

     

    
      
         

      

      
        - 7
-

        
          

        

      

      
         

      

    

     

    Article III: ELIGIBILITY AND
PARTICIPATION

     

    
      	
              3.1

            	
              Conditions to Becoming
      an SRP Participant

            

    

     

    An
individual who satisfies both the first condition under subsection (a) below and
the second condition under subsection (b) below shall be an SRP Participant
under this Plan.

     

    (a)           First
Condition

     

    An
individual must be either (i) a Participant
in the Qualified Salaried Plan, (ii) a Former Member of the Willamette
SBP, or (iii) a Former Participant in the Supplemental MB Plan.

     

    (b)           Second
Condition

     

    An
individual satisfies this subsection if his or her Accrued Benefit under
the Qualified Salaried Plan is limited by either the maximum benefit
restrictions of Code Section 415 or the maximum includible Earnings
restrictions of Code Section 401(a)(17).

     

    
      	
              3.2

            	
              Prior Participants in
      MB Supplemental Plan

            

    

     

    If an
individual had accrued a retirement income benefit under the Supplemental MB
Plan on December 31, 2000, but did not become eligible to participate in this
Plan under Section 3.1 above, the individual shall have a vested right under
this Plan to receive a Target Accrued Benefit equal to the benefit accrued under
the Supplemental MB Plan through December 31, 2000.

     

    
      	
              3.3

            	
              Continuation of SRP
      Participant Status

            

    

     

    An individual who once
becomes an SRP Participant under the terms of this Article III shall remain an
SRP Participant until Separation from Service without regard to whether
he or she is entitled to a benefit under this Plan at any given time, including
but not limited to the effective date of Separation from Service.

     

    
      	
              3.4

            	
              Individual
      Agreements

            

    

     

    The
Company is authorized to establish Individual Agreements with certain SRP
Participants in order to supplement the benefits, rights and features of such
SRP Participants under this Plan.  Such an Individual Agreement shall
be considered part of this Plan and is subject to the terms herein to the extent
such terms do not conflict with the terms of the Individual
Agreement.  To the extent the terms of the Individual Agreement
conflict with the terms of this Plan, the terms of the Individual Agreement
shall control.

     

    
      
         

      

      
        - 8
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    Article IV: PENSION BENEFITS

     

    
      	
              4.1

            	
              Earnings Based Pension
      Benefits

            

    

     

    (a)Target Accrued
Benefit

     

    Subject
to other applicable terms of Article IV of this Plan, for an individual with one
or more Hours of
Service on or after January 1, 2003 as an SRP Participant, the amount of
his or her Target Accrued Benefit under this Plan shall be equal to the Accrued
Benefit that would be determined under the provisions of Article IV of
the Qualified Salaried Plan if the following modifications were
made:

     

    
      	
               
      

            	
              (i)

            	
              The
      maximum benefit limitations under Code Section 415 were eliminated;
      and

            

    

     

    
      	
               
      

            	
              (ii)

            	
              The
      limit on includible Earnings under Code
      Section 401(a)(17) was eliminated.

            

    

     

    The
combined effect of clauses (i) through (iii) above, as applied, for example, to
the pension formula of Section 4.1(a) of the Qualified Salaried Plan, is to
calculate the Target Accrued Benefit under this Plan by substituting an SRP
Participant's Adjusted Earnings instead of his or her Final
Average Monthly Earnings wherever the Final
Average Monthly Earnings would otherwise be taken into account under
Article IV of the Qualified Salaried Plan.

     

    (b)           Special Rules Regarding Past
Service Benefits

     

    
      	
               
      

            	
              (i)

            	
              Special Rule for Past
      Service Benefits Added to Accrued
      Benefit

            

    

     

    For an
SRP Participant who has a right under the Qualified Salaried Plan to receive any
Past
Service Benefit (as described in Notes F, G or H of Attachment 3 of such
plan) which are payable as an additional benefit over and above the benefit
determined under the Accrued
Benefit pension formulas of Sections 4.1 through 4.5 of such plan, then
the Supplemental Accrued Benefit under this Plan shall be equal to (a) the
Target Accrued Benefit without taking into account any such Past Service Benefit
that is additive in character, minus (b) the Accrued
Benefit under Sections 4.1 through 4.5 of the Qualified Salaried Plan
without taking into account any such Past Service Benefit which is
additive in character.

     

    Notwithstanding
the foregoing, for an SRP Participant who is entitled to receive a Past
Service Benefit consisting of a Cavenham
Frozen Accrued Benefit (as described in Note H-2 of the Qualified
Salaried Plan), the Supplemental Accrued Benefit under this Plan shall be equal
to (a) the Target Accrued Benefit taking into account any such Cavenham
Frozen Accrued
Benefit, minus (b) the Accrued
Benefit under Sections 4.1 through 4.5 of the Qualified Salaried Plan
taking into account any such Cavenham
Frozen Accrued Benefit.

     

     

    
      
         

      

      
        - 9
-

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (ii)

            	
              Special Rule for Past
      Service Benefits Offset from Accrued
      Benefit

            

    

     

    The terms
and conditions of this subsection (ii) shall determine the Supplemental Accrued
Benefit for an SRP Participant who is entitled to receive a Past Service Benefit under
Section 4.3 of the Qualified Salaried Plan, which involves (A) imputed Years of Credited Service
(for the period of service with a prior employer or prior plan), and (B) an
offset from the Accrued
Benefit under the Qualified Salaried Plan to take account of the benefit
earned under the prior qualified plan.

     

    In such a
case, the Supplemental Accrued Benefit under this Plan shall be the difference
of (A) and (B), as follows:

     

    
      	
               
      

            	
              (A)

            	
              the
      Target Accrued Benefit under this Plan, which shall be based on all Years of Credited
      Service taken into account for calculation of the "Wrap-Around"
      benefit (as defined in Section 4.3(b)(ii)(A) of the Qualified Salaried
      Plan), minus

            

    

     

    
      	
               
      

            	
              (B)

            	
              the
      sum of (1) the Accrued
      Benefit under the Qualified Salaried Plan and (2) the Benefit
      Under Prior Plan (as defined in Section 4.3(b)(ii)(B) of the
      Qualified Salaried Plan).

            

    

     

    Provided,
however, in the case of an SRP Participant with a prior benefit under the
Qualified MB Plan, the terms of subsections (A) and (B) above shall not apply
and, instead, the Supplemental Benefit in the Normal Form under this Plan shall
be calculated by (a) determining the difference of the Target Accrued Benefit
for all "Wrap
Around" years
(as defined above), minus the Qualified Salaried Plan benefit for all such "Wrap Around" years, and then
(b) adjusting that difference to reflect any applicable early commencement
factor under the terms of this Plan.

     

    In
addition, for all SRP Participants subject to this subsection (ii), including
but not limited to individuals with a prior benefit under the MB Qualified Plan,
the following comparison calculation shall apply instead in the event that it
results in a greater benefit than the above provisions.  The
comparison calculation is as follows.  The Supplemental Accrued
Benefit under this Plan shall be the difference between (a) the Target Accrued
Benefit based solely on Years
of Credited Service with the Employer (without reference to any imputed
service with the prior employer), minus (b) the Accrued Benefit based solely
on those same Years of
Credited Service with the Employer.  In that event, any
applicable adjustment for benefit commencement prior to age 65 shall be based
solely on the terms of this Plan.

     

    
      
         

      

      
        - 10
-

        
          

        

      

      
         

      

    

     

    
      	
              4.2

            	
              Special Rules for
      Certain Merged Plans

            

    

     

    (a)           SRP Participants with Prior
Willamette Accrued Benefits

     

    This
subsection (a) shall not apply to any individual who was not an active, inactive
or retired member of the Willamette SBP as of December 31, 2002, which is the
date the Willamette SBP was merged with and into this Plan.

     

    
      	
               
      

            	
              (i)

            	
              Transition Rules for
      Willamette SBP Benefits

            

    

     

    
      	
               
      

            	
              (A)

            	
              Willamette Bridgeable
      Accrued Benefits

            

    

     

    For an
SRP Participant with Willamette
Bridgeable Benefit Credits and at least one Hour
of Service as an Employee on
or after January 1, 2003, the Supplemental Benefit in the Normal Form under this
Plan shall be the difference between (i) the largest of the three adjusted
Target Accrued Benefit amounts stated in subsections (1) through (3) below,
minus (ii) the largest of the three adjusted benefit amounts determined under
Section 4.1(c)(iii)(A) through (C) of the Qualified Salaried Plan. For purposes
of clause (i) of the preceding sentence, the three alternatives are as
follows:

     

    
      	
               
      

            	
              (1)

            	
              A
      Target Accrued Benefit equal to the SRP Participant's Willamette Minimum
      Target Accrued Benefit (as defined in Section 4.2(b) of this Plan), with
      any applicable adjustment for an SRP Benefit Commencement Date prior to
      age 65 being determined according to the Early
      Retirement factors (or, if applicable, early Vested
      Benefit
      adjustment factors) of the Willamette
      Salaried Plan;

            

    

     

    
      	
               
      

            	
              (2)

            	
              A
      Target Accrued Benefit equal to the SRP Participant's Willamette Minimum
      Target Accrued Benefit, with any applicable adjustment for an SRP Benefit
      Commencement Date prior to age 65 being determined according to the Early
      Retirement factors (or, if applicable, early Vested
      Benefit
      adjustment factors) of the Qualified Salaried Plan;
    or

            

    

     

     

    
      
         

      

      
        - 11
-

        
          

        

      

      
         

      

    

     

     

    
      	
               
      

            	
              (3)

            	
              A
      Target Accrued Benefit equal to the SRP Participant's Target Accrued
      Benefit accrued through the date of SRP Participant's Separation from
      Service, under Section 4.1(a) of this Plan and the pension formula of
      Section 4.1(a) of the Qualified Salaried Plan, with any applicable
      adjustment for an SRP Benefit Commencement Date prior to age 65 being
      determined according to the Early
      Retirement factors (or, if applicable, early Vested
      Benefit adjustment factors) of the Qualified Salaried
      Plan.

            

    

     

    (B)           Willamette Frozen Accrued
Benefits

     

    The
provisions of this subsection (B) shall be applied under this Plan in like
manner as stated in Section 4.1(c)(iv) of the Qualified Salaried
Plan.  For an SRP Participant with Willamette
Frozen Benefit Credits and at least one Hour
of Service as an Employee on
or after January 1, 2003, the Supplemental Accrued Benefit shall be equal to the
sum of (1) and (2) as follows:

     

    
      	
               
      

            	
              (1)

            	
              the
      difference of (a) the "Unrestricted Benefit" under the Willamette SBP that
      is based on his or her Willamette
      Frozen
      Benefit Credits, minus (b) the Willamette
      Frozen Accrued
      Benefit (ignoring any Past
      Service Benefits); plus

            

    

     

    
      	
               
      

            	
              (2)

            	
              the
      difference of (a) the Target Accrued Benefit based on the formula of
      Section 4.1(a) of the Qualified Salaried Plan for any Years
      of Credited Service accrued on or after January 1, 2003, minus (b)
      the Accrued
      Benefit under the Qualified Salaried Plan for Years
      of Credited Service on or after January 1,
  2003.

            

    

     

    In such a
case, the Supplemental Benefit in the Normal Form shall be determined in two
parts, as follows. The portion of the Supplemental Accrued Benefit described in
clause (1) above shall be adjusted for any applicable early commencement (as of
the SRP Benefit Commencement Date), in accordance with the more favorable of the
early commencement reduction factors under the Willamette
Salaried Plan or the Qualified Salaried Plan, and the portion described
in clause (2) shall be adjusted in accordance with the factors under the
Qualified Salaried Plan.

     

     

    
      
         

      

      
        - 12
-

        
          

        

      

      
         

      

    

     

    (b)           Willamette Minimum Target
Accrued Benefit

     

    For a
Former Member of the Willamette SBP who was an active Employee on
December 31, 2002, the Target Accrued Benefit under this Plan on or after
January 1, 2003, shall not be less than the "Willamette Minimum Target Accrued
Benefit", which means:

     

    
      	
               
      

            	
              (i)

            	
              his
      or her "Unrestricted Benefit" as defined under Section 3.2 of the
      Willamette SBP as of December 31, 2002;
or

            

    

     

    
      	
               
      

            	
              (ii)

            	
              for
      a Former Member of the Willamette SBP who, as of December 31, 2002, was
      potentially eligible for the "Change-in-Control Benefit" under Section
      7.4(e) of the Willamette SBP (after taking into account the terms of any
      written agreement that may be in force as of that date between the
      participant and his or her employer), the Willamette Minimum Target
      Accrued Benefit shall be the amount of such participant's Unrestricted
      Benefit determined according to the terms of said Section 7.4(e) as
      accrued through December 31, 2002 (but with additional imputed months of
      service and age in accordance with the terms of said Section 7.4(e)), but
      only if the participant Separates from
      Service prior to the applicable 24 or 36 months described in
      Section 7.4 of the Willamette SBP, other than for "Cause" (as defined in
      Section 7.4(e) of the Willamette SBP) as of a date that satisfies the
      conditions for such Change-In-Control
Benefit.

            

    

     

    No
benefit that accrues under this Plan on or after January 1, 2003 shall be
eligible to be taken into account when determining the Willamette Minimum Target
Accrued Benefit under subsection (ii) above. Furthermore, where (ii) applies, in
the case of an SRP Benefit Commencement Date prior to age 65, the additional 24
or 36 months of age (whichever is applicable) that are imputed under Section
7.4(e) shall be taken into account under Sections 4.2(a)(i)(A) and (B) of this
Plan when determining the more favorable early reduction factor to apply to the
Willamette Minimum Target Accrued Benefit as determined under either the
Willamette Salaried Plan or the Qualified Salaried Plan.

     

    (c)           Former Participants in the
Supplemental MB Plan

     

    Notwithstanding
any other Plan provision, the Supplemental Accrued Benefit for a Former
Participant in the Supplemental MB Plan shall in no case be less than the
individual's accrued benefit (expressed as a Single Life Annuity commencing at
age 65) under the Supplemental MB Plan on December 31, 2000.  For a
Former Participant in the Supplemental MB Plan who terminated employment on or
before December 31, 2000, his or her accrued benefit (expressed as a Single Life
Annuity commencing at age 65) shall be calculated under the terms of the version
of the Supplemental MB Plan that was in effect on December 31,
2000.

     

    
      
         

      

      
        - 13
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              4.3

            	
              Benefit Calculations
      Not Involving Offset of Prior Accrued
  Benefits

            

    

     

    In a case
in which the circumstances described in Section 4.4 of the Qualified Salaried
Plan apply to an SRP Participant, then the methods for benefit calculation, as
described in that Section of the Qualified Salaried Plan, will likewise be
applied to the calculation of the SRP Participant's Target Accrued Benefit under
this Plan.

     

    
      	
              4.4

            	
              Rules Against Cutback
      of Benefit Amounts

            

    

     

    To
safeguard against a reduction in an SRP Participant's Target Accrued Benefit
which may be caused by certain amendments of this Plan which became effective on
January 1 of 2001, 2002 and 2003, the rules stated in the following table shall
apply.

     

    
      
        	
                
                  For
      an SRP Participant

                  with
      an Hour of Service

                  on
      or after:

                

              	
                
                  The
      Target Accrued Benefit

                  at
      Termination shall not be less

                  than
      the Target Accrued Benefit

                  under
      this Plan as of:

                

              
	
                January
      1, 2001

              	
                December
      31, 2000

              
	
                January
      1, 2002

              	
                December
      31, 2001

              
	
                January
      1, 2003

              	
                December
      31, 2002

              

      

    

    

     

    Provided,
however, that the anti-cutback rules for Hours of Service after
January 1 of 2001 and 2002 shall only apply to an individual who was then an
active SRP Participant, and not to an individual who was then a Member of the
Willamette SBP.

     

    
      	
              4.5

            	
              Normal Retirement
      Benefit

            

    

     

    The terms
of Section 4.6 of the Qualified Salaried Plan, which describe a Normal
Retirement benefit under such Plan, shall likewise apply to the
calculation of the Target Accrued Benefit under this Plan for an SRP
Participant who meets the eligibility conditions for Normal
Retirement as stated in the Qualified
Salaried Plan.

     

     

    
      
         

      

      
        - 14
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              4.6

            	
              Early Retirement
      Benefit

            

    

     

    (a)           Incorporating the Provisions
of the Qualified Salaried Plan

     

    The terms
and conditions of Section 4.7, Early Retirement Benefit,
under the Qualified Salaried Plan are incorporated by reference for purposes of
calculating the adjustment for early commencement of the Supplemental Accrued
Benefit, in the case of an Early
Retirement of an SRP Participant under this Plan.  For purposes
of such calculation, to the extent a SRP Participant becomes entitled to
severance benefits pursuant to Weyerhaeuser's Executive Change in Control
Agreement (Tier I), he or she shall receive an additional three years of service
and three years of age as provided under the terms of such Agreement, and such
additional years of age shall also be used for purposes of determining
eligibility for and any reduction factors applicable to the Early Retirement
Benefit.  Two years shall be substituted for three years in
each place it appears in the foregoing sentence with respect to a SRP
Participant who becomes entitled to severance benefits pursuant to
Weyerhaeuser's Executive Change in Control Agreement (Tier II).

     

    Furthermore,
the terms and conditions of Section 6.3 ("Early Retirement") of the Willamette
Salaried Plan (as amended through December 31, 2002) are incorporated by
reference for purposes of performing the comparisons stated in Section
4.2(a)(i)(A) and (B) of this Plan.

     

    (b)           Benefit Unreduced At
60

     

    
      	
               
      

            	
              (i)

            	
              Amount of Supplemental
      Accrued Benefit

            

    

     

    If the
SRP Participant satisfies the requirements stated in subsection (ii) below for
an Unreduced At 60 benefit, and if the Supplemental Accrued Benefit commences
prior to the Normal Retirement
Date as defined in the Qualified Salaried Plan, the Supplemental Accrued
Benefit payable under this Plan shall be equal to the excess of (A) the Target
Accrued Benefit (without reduction for early commencement), over (B) the benefit
payable from the Qualified Salaried Plan after such benefit under the Qualified
Salaried Plan has been reduced for early commencement.

     

    
      	
               
      

            	
              (ii)

            	
              Eligibility for
      Unreduced At 60

            

    

     

    An SRP
Participant shall be eligible for an Unreduced At 60 benefit under subsection
(i) above if he or she meets all of the following conditions:

     

    
      	
               
      

            	
              (A)The
      individual is an Eligible Key Management Member,
  and

            

    

     

     

    
      
         

      

      
        - 15
-

        
          

        

      

      
         

      

    

     

     

    
      	
               
      

            	
              (B)The
      Benefit
      Commencement Date under the Qualified Salaried Plan occurs on or
      after the date he or she attains age 60,
and

            

    

     

    
      	
               
      

            	
              (C)The
      individual is eligible for an Early
      Retirement benefit under the Qualified Salaried
    Plan.

            

    

     

    
      	
              4.7

            	
              Disability Retirement
      Benefit

            

    

     

    The terms
of Section 4.8(b)(i) and (ii) of the Qualified Salaried Plan, which describe a
Disability
Retirement benefit under that plan, shall likewise apply to the
calculation of the Target Accrued Benefit under this Plan for a Disabled SRP
Participant.  The lump-sum value under this Plan that is due to an SRP
Participant upon his or her becoming Disabled shall be made in accordance with
Section 6.1.

     

    
      	
              4.8

            	
              Enhanced Vested
      Retirement Benefit

            

    

     

    (a)           Rule of 65 Involuntary
Termination Prior to Early Retirement

     

    This
Section 4.8 applies to an SRP Participant who, as of the date of his or her
involuntary Termination
Without Cause prior to becoming eligible for Early
Retirement (i) has at least 10 Years
of Vesting Service, and (ii) the sum of his or her attained age and Years
of Vesting Service is at least 65.  If such an SRP Participant
is at least age 55 but not yet age 65, then, in place of the Actuarial reduction factors
applicable to the early commencement of a Vested
Retirement benefit, the Early
Retirement
Benefit Commencement Percentages stated in Section 4.7(c) (except
4.7(c)(ii)) of the Qualified Salaried Plan shall apply.  Notwithstanding the
foregoing, a Highly
Compensated Employee who (i) was nominated to
this Plan as of January 1, 2006 or prior; or (ii) is salary grade 45 or
higher, is in each case eligible to receive Rule of 65 benefits under this
Plan as of the date of his or her involuntary Termination
Without Cause (except as provided
otherwise by the Qualified Plan) and prior to becoming eligible for Early
Retirement.

     

    (b)           Amount of Supplemental
Accrued Benefit

     

    In the
case of a Termination Without
Cause as
described in subsection (a), the Supplemental Accrued Benefit payable under this
Plan shall be equal to the difference between (i) the Target Accrued Benefit
reduced for early commencement using the Early
Retirement Benefit Commencement
Percentages specified in subsection (a) above, minus (ii) the benefit
payable from the Qualified Salaried Plan after such benefit has been Actuarially
reduced for early commencement in accordance with provisions of that
Plan.

     

    
      Article V:
Vesting

    

     

    No
benefit shall be payable under this Plan unless the SRP Participant is Vested in his or her Target
Accrued Benefit under this Plan at the time of, or as a result of, his or her
Separation from Service.  The Vested status of an SRP
Participant's Target Accrued Benefit and the Supplemental Accrued Benefit under
this Plan shall be determined by the Vesting status of his or her
Accrued
Benefit in accordance with Article V of the Qualified Salaried
Plan.  An SRP Participant who becomes entitled to severance benefits
under Weyerhaeuser's Executive Change in Control Agreement (Tier I) or its
Executive Change in Control Agreement (Tier II), shall be 100% Vested in his or her benefits
under this Plan.

     

    
      
         

      

      
        - 16
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    Article VI: FORMS OF BENEFIT AND TIMING OF PAYMENTS

     

    
      	
              6.1

            	
              Benefit Payment
      Events

            

    

     

    (a)           General

     

    Benefits
under this Plan become payable on the earliest to occur of the following payment
events:

     

    
      	
               
      

            	
              (i)

            	
              Separation
      from Service;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              death;
      or

            

    

     

    
      	
               
      

            	
              (iii)

            	
              Disability.

            

    

     

    (b)           Separation from
Service

     

    An SRP
Participant's SRP Benefit Commencement Date shall be determined in accordance
with the following schedule.

     

    
      	
               
      

            	
              (i)

            	
              If
      an SRP Participant is age 65, or at least age 55 and has earned 10 or more
      Years of Vesting
      Service, at the time of his or her Separation from Service, the
      Supplemental Accrued Benefit shall commence within 90 days after such
      Separation from Service.

            

    

     

    
      	
               
      

            	
              (ii)

            	
              If
      an SRP Participant is younger than age 55 and has earned 10 or more Years of Vesting
      Service at the time of his or her Separation from Service, the Supplemental
      Accrued Benefit shall commence within 90 days after the SRP Participant's
      attainment of age 55.

            

    

     

    
      	
               
      

            	
              (iii)

            	
              If
      an SRP Participant has not earned 10 or more Years of Vesting
      Service at the time of his or her Separation from Service, the Supplemental
      Accrued Benefit shall commence within 90 days after the SRP Participant
      attains age 65.

            

    

     

    (c)           Death

     

    Upon the
SRP Commencement Date, the SRP Participant may designate a beneficiary who may
or may not be the same beneficiary designated under the Qualified Salaried
Plan.  Such designation must be made in accordance with the rules and
procedures established by the SRP Administrator.  In the event of the
SRP Participant's death after the SRP Commencement Date but before all payments
have been made, all remaining payments shall be paid to the SRP Participant's
beneficiary, so
designated, pursuant to the same schedule.  If no beneficiary has been
so designated, the remaining payments shall be paid to the SRP Participant's
Beneficiary as
designated under the Qualified Salaried Plan.  Should the SRP
Participant die before the SRP Commencement Date, Article VII
applies.

     

    
      
         

      

      
        - 17
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    (d)           Disability

     

    An SRP
Participant with 10 or more Years of Vesting Service
shall receive the Supplemental Accrued Benefit as determined under Section 4.6
of this Plan payable within 90 days of the date on which the SRP Participant is
determined to be Disabled by the Administrative Committee.  The
lump-sum payment will be distributed to the SRP Participant in accordance with
Section 6.2(a). 

     

    (e)           Required Delay for Specified
Employees

     

    Notwithstanding
anything to the contrary above, if an SRP Participant is a Specified Employee as
of the date of his or her Separation from Service and payments under this Plan
are due to be made in accordance with Section 6.1(b), all such payments shall be
delayed to and payable on the earlier of (i) the date of the SRP
Participant's death and (ii) the later of the following dates:

     

    
      	
               
      

            	
              (A)

            	
              the
      first day of the seventh month following his or her date of Separation
      from Service; and

            

    

     

    
      	
               
      

            	
              (B)

            	
              his
      or her SRP Benefit Commencement
Date.

            

    

     

    No
interest shall accrue on the delayed payments.

     

    
      	
              6.2

            	
              Form of
      Benefit

            

    

     

    The
Supplemental Accrued Benefit (expressed as an annuity) will be converted to a
lump-sum value upon the SRP Participant's becoming eligible for
payment.  The calculation of the lump-sum value shall be based on the
same interest and mortality assumptions used for lump-sum conversions under the
Qualified Salaried Plan at the time the payment is calculated, subject to
Section 6.3 of this Plan.  The applicable interest rate will be that
which is in effect as of the end of the month prior to the SRP Benefit
Commencement Date.  The lump-sum value shall be distributed to the SRP
Participant (or his or her Beneficiary) either as a
single payment or in a series of annual installments in accordance with the
following schedule:

     

    
      
        	
                
                  Lump-Sum
      Value:

                

              	
                
                  Distribution
      Form:

                

              
	
                Less
      than $10,000

              	
                Single
      payment

              
	
                $10,000
      or more

              	
                Five
      annual installments

              

      

    

    

     

     

    
      
         

      

      
        - 18
-

        
          

        

      

      
         

      

    

     

    
      	
              6.3

            	
              Applicable Interest
      Rate

            

    

     

    The
Applicable Interest Rate referred to in Sections 6.2(e)(ii)(B) and 6.2(e)(ii)(D)
of the Qualified Salaried Plan shall be defined as an interest rate as
determined by the Compensation Committee during the first quarter of each year.
Such Compensation Committee rate shall be used for calculating payments payable
as of April of the Plan Year through March of the following year.

     

    Article VII: PRE-COMMENCEMENT
DEATH BENEFITS

     

    If an SRP
Participant dies before benefits under this Plan commence, a survivor's benefit
will be calculated based on the SRP Participant's Supplemental Accrued
Benefit.  Such benefit will be converted to a lump-sum based on the
Actuarial Equivalencies
in Attachment 1 of the Qualified Salaried Plan, using interest and
mortality assumptions in effect as of the end of the month of the SRP
Participant's death.  The lump-sum value will be paid to the SRP
Participant's Beneficiary, as designated
under the Qualified Salaried Plan, in a single lump-sum payment or installment
payments, in accordance with the schedule set forth in Section 6.2 of this Plan,
within 90 days of the Administrative Committee's receipt of the death
certificate.

     

    Article VIII: CODE LIMITATIONS DO NOT APPLY

     

    The
limitations on benefits which are stated in Article VIII of the Qualified
Salaried Plan shall not be applicable to the Target Accrued Benefit under this
Plan.

     

    Article IX: MISCELLANEOUS PROVISIONS

     

    
      	
              9.1

            	
              No Right to Continued
      Employment

            

    

     

    The
existence of this Plan does not confer a right of continued employment on any
person.

     

    
      	
              9.2

            	
              Construction of
      Plan

            

    

     

    Nothing
in this Plan shall be construed to give any Employee (or any other person) any
right to receive awards or any other type of compensation from the
Company.  No Participant or beneficiary shall have any right to
receive a payment under the Plan except in accordance with the terms of the
Plan.  Nothing contained in the Plan shall constitute a guarantee by
the Company or any other person or entity that the assets of the Company will be
sufficient to pay any benefits under the Plan.  If any provision of
the Plan is held to be invalid or illegal for any reason, such invalidity or
illegality shall not affect the remaining parts of the Plan, but the Plan shall
be construed as if the invalid or illegal provision had never been included in
the Plan.  Unless some other meaning or intent is apparent from the
context, the plural includes the singular and vice versa; and masculine,
feminine and neuter words are used interchangeably.  Any headings used
herein are included for ease of reference only, and are not to be construed so
as to alter the terms hereof.

     

    
      
         

      

      
        - 19
-

        
          

        

      

      
         

      

    

     

    
      	
              9.3

            	
              No Assignment of
      Benefits

            

    

     

    No SRP
Participant or surviving spouse shall have the power to transfer, assign,
anticipate, modify, or otherwise encumber in advance any of the payments that
may become due hereunder; nor shall any such payments be subject to attachment,
garnishment, or execution, or be transferable by operation of law in the event
of bankruptcy, insolvency, or otherwise.  This Plan does not provide
for or allow any transfer, assignment, attachment, garnishment, execution, or
the like, either pursuant to or in connection with a domestic relations
order.

     

    
      	
              9.4

            	
              Taxes

            

    

     

    The
Company or any other payor may withhold from a benefit payment under the Plan or
from any other compensation payable by the Company to the Participant any
federal, state or local taxes required by law to be withheld with respect to a
deferral, payment or accrual under the Plan, and will report such payments and
other Plan-related information to the appropriate governmental agencies as
required under applicable law.  None of the Company, the Committee or
any other person guaranties any particular federal or state income, payroll,
personal property or other tax consequence will occur because of participation
in the Plan. A Participant should consult with professional tax advisors
regarding all questions relative to the tax consequences arising from
participation in the Plan.

     

    
      	
              9.5

            	
              Participant's
      Cooperation

            

    

     

    A
Participant shall cooperate with the Company by furnishing any and all
information requested by the Committee in order to facilitate the administration
of the Plan or the payment of benefits hereunder. If the Participant refuses to
cooperate, the Company shall have no further obligation to the Participant under
the Plan.

     

    
      	
              9.6

            	
              Successors and
      Assigns

            

    

     

    The terms
and conditions of the Plan, as amended and in effect from time to time, will be
binding on the Company's successors and assigns, including, without limitation,
any entity into which the Company may be merged or with which the Company may be
consolidated.

     

    
      	
              9.7

            	
              Governing
      Law

            

    

     

    This Plan
and any amendments shall be construed, administered, and governed in all
respects in accordance with applicable federal law and, to the extent not
preempted, by the laws of the state of Washington without giving effect to the
choice or conflicts of law provisions thereof.  If the Company or any
Participant or beneficiary initiates litigation related to the Plan, the venue
for such action will be King County, Washington.

     

    
      
         

      

      
        - 20
-

        
          

        

      

      
         

      

    

     

    
      	
              9.8

            	
              Former Willamette SBP
      Provision Not Applicable After February 11,
    2002

            

    

     

    This
Plan, as restated as of January 1, 2009, contains no special provision
pertaining to any change in control which may occur on or after that date. The
provisions of Section 4.3 of the Willamette SBP that applied to the
February 11, 2002 change in control are hereby amended to state that they shall
not apply to any potential change in control which may occur on or after that
date.

     

    
      	
              9.9

            	
              Compliance with Code
      Section 409A

            

    

     

    This Plan
is intended to comply with the requirements of Code Section 409A and any
official guidance issued thereunder.  Notwithstanding any provision to
the contrary herein, this Plan, including terms incorporated herein yet defined
in the Qualified Salaried Plan, shall be interpreted, operated and administered
in a manner consistent with this intention to the extent the Committee deems
necessary to comply with the requirements of Code Section 409A and any official
guidance issued, so as to avoid the predistribution inclusion in income of
amounts deferred under this Plan and the imposition of any additional tax or
interest.  In addition, this Plan shall be deemed to be amended, and
any deferrals and distributions hereunder shall be deemed to be modified, to the
extent necessary to comply with such requirements of Code Section 409A,
including but not limited to any limitations on the linkage between qualified
and nonqualified plans.  Notwithstanding the foregoing, no provision
of this Plan shall be interpreted or construed to transfer any liability for
failure to comply with Code Section 409A from any SRP Participant or any
other individual to the Employer or any of its affiliates.

     

    Article X: ADMINISTRATION OF THE
PLAN

     

    
      	
              10.1

            	
              Plan
      Administrator

            

    

     

    (a)           Role of Administrative
Committee

     

    This Plan
shall be administered by the Administrative Committee. The Administrative
Committee shall have all of the duties, authority, powers and responsibilities
with respect to this Plan as are recited in Section 10.1(a) of the Qualified
Salaried Plan for the Administrative Committee under that Plan.

     

    (b)           Avoidance of Conflict of
Interest

     

    If any
SRP Participant is a voting member of the Claims Administrator
or the Appeals Administrator,
or has any role in the administration of benefits under this Plan,
he or she shall
be disqualified from voting on, or exercising control over, any decision or
action of any
such committees or administrators that is specifically directed to the
calculation of, or
a decision pertaining to a claim or dispute involving, that individual SRP
Participant's benefit
(or his or her Beneficiary's benefit) under
this Plan.

     

    
      
         

      

      
        - 21
-

        
          

        

      

      
         

      

    

     

    
      	
              10.2

            	
              Benefit
      Administrator

            

    

     

    The
administrator of the day-to-day benefit application and calculation process
under this Plan shall be The Vanguard Group, Inc., or any entity or person which
may subsequently be appointed to perform that function by Director of Employee
Benefits with the concurrence of the Administrative Committee.

     

    
      	
              10.3

            	
              Claims and Appeal
      Procedure

            

    

     

    (a)           Procedures as Stated in
Qualified Salaried Plan

     

    Subject
to subsections (b), (c) and (d) below, this Plan incorporates by reference the
terms of Section 10.4 ("Claims and Appeal Procedure") of the Qualified Salaried
Plan; provided, however, that references in that Section 10.4 to the "Plan"
shall be deemed to be references to this Plan.

     

    (b)           Claims
Administrator

     

    Notwithstanding
the terms of the Qualified Salaried Plan, any reference to "Claims
Administrator" in the text of Section 10.4 of that Plan shall be deemed to mean
the Weyerhaeuser Employee Benefits Appeals Committee or any entity or person
which may subsequently be appointed to perform that function for this Plan by
the Compensation Committee.

     

    (c)           Appeals
Administrator

     

    Notwithstanding
the terms of the Qualified Salaried Plan, the Appeals Administrator under this
Plan shall be the Compensation Committee, or any committee or entity to which
the Compensation Committee may delegate that responsibility.

     

    (d)           Delegation of Discretion to
Claims and Appeals Administrators

     

    This Plan
hereby delegates full and complete discretion to the Claims Administrator and
the Appeals Administrator (as those terms are defined in subsections (b) and (c)
above):

     

    
      	
               
      

            	
              (i)

            	
              to
      make findings of fact pertaining to a claim or
  appeal;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              to
      interpret the terms of this Plan and apply such interpretations to the
      facts; and

            

    

     

    
      	
               
      

            	
              (iii)

            	
              to
      decide all issues which the said Claims and/or Appeals Administrators
      determine are presented by the claim or appeal, whether any such issue is
      expressly raised by the claimant or
not.

            

    

     

     

    
      
         

      

      
        - 22
-

        
          

        

      

      
         

      

    

     

    
      Article XI: Unfunded
Plan

       

    

    This Plan
is unfunded within the meaning of Title I of ERISA.  Benefits are
payable only from the general assets of the Employer or
from a rabbi trust which may be maintained by Weyerhaeuser as
grantor, the assets of which are available to the general creditors of the Employer. The Employer makes
no representation that any other assets will be set aside to provide benefits
under this Plan. SRP Participants and Beneficiaries
have no interest in any assets of the Employer.  SRP
Participants have no rights other than the unsecured promise of the Employer to
pay benefits in the future. An SRP Participant's rights are no greater than the
rights of any unsecured general creditor of the Employer. Nothing
contained herein shall be deemed to create a trust of any type that would be
considered a "funded" trust for the "exclusive benefit" of SRP Participants and
Beneficiaries
within the meaning of Title I of ERISA.

     

    Article XII: AMENDMENT AND TERMINATION

     

    The Chief
Executive Officer of Weyerhaeuser shall
have the right to amend this Plan at any time, to the extent that any such
amendment would not cause an increase in the cost of this Plan to Weyerhaeuser.  The
Board of Directors and the Compensation Committee of Weyerhaeuser shall
each have the right to amend or terminate this Plan at any time, provided that
any payments in the event of Plan termination shall be made in accordance with
Treasury Regulation Section 1.409A-3(j)(4)(ix).

     

    * *
*

     

    
      
         

      

      
        - 23
-

        
          

        

      

      
         

      

    

    SIGNATURE PAGE

     

    IN
WITNESS WHEREOF, Weyerhaeuser Company has caused this Plan to be duly executed
on the date set forth below.

     

    WEYERHAEUSER
COMPANY

    Date:

     

    By:

      
        

      

    

    Name:

    Title:

     

                                           

    
      
         

      

      
        - 24
-

        
          

        

      

      
         

      

    

     

    Exhibit
A

     

    Individual
Agreements

    As
of January 1, 2009

     

    Ernesta
Ballard

     

    William
Corbin

     

    Rory
Johnson

     

    Paul
Leuzzi

     

    Steve
Rogel

     

    [Susan
Wagner]

     

     

     

     

    - 1
-Unassociated Document

    EXHIBIT
10.1

    
      

       

    

    Agreement

     

    Apollo
Gold Corporation: Black Fox Gold Project

    

    Bridge Facility
Agreement

    

    Apollo
Gold Corporation

     

    RMB
Australia Holdings Limited

     

    Macquarie
Bank Limited

     

    RMB
Resources Inc.

    

    
      
        	
                

                 

              
	 
      	
                QV.1
      Building 250 St Georges Terrace Perth WA 6000 Australia 

                GPO
      Box U1942 Perth WA 6845 Australia

                 

                Sydney  Melbourne  Perth  Brisbane  Singapore

              	
                Telephone
      +61 8 9211 7777  Facsimile +61 8 9211 7878 

                www.freehills.com  DX
      104 Perth

                 

                Correspondent
      offices in Hanoi  Ho Chi Minh
      City  Jakarta

              

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Contents

    

    
      
        
          
            	 
      	
                    Table
      of contents

                  
	 
      	 
      	 
      
	 
      	
                    The
      agreement

                  	
                    1

                  
	 
      	 
      	 
      
	
                    1

                  	
                    Definitions
      and interpretations

                  	
                    2

                  
	 
      	 
      	 
      	 
      
	 
      	
                    1.1

                  	
                    Definitions

                  	
                    2

                  
	 
      	
                    1.2

                  	
                    Interpretations

                  	
                    21

                  
	 
      	
                    1.3

                  	
                    Inclusive
      expressions

                  	
                    22

                  
	 
      	
                    1.4

                  	
                    Business
      Day

                  	
                    22

                  
	 
      	
                    1.5

                  	
                    Accounting
      Standards

                  	
                    22

                  
	 
      	 
      	 
      
	
                    2

                  	
                    Conditions
      precedent

                  	
                    22

                  
	 
      	 
      	 
      	 
      
	 
      	
                    2.1

                  	
                    Conditions
      precedent to the Funding Portion

                  	
                    22

                  
	 
      	
                    2.2

                  	
                    Certified
      copies

                  	
                    24

                  
	 
      	
                    2.3

                  	
                    Benefit
      of conditions precedent

                  	
                    24

                  
	 
      	 
      	 
      
	
                    3

                  	
                    Commitment,
      purpose and availability of the Facility

                  	
                    25

                  
	 
      	 
      	 
      	 
      
	 
      	
                    3.1

                  	
                    Provision
      of Commitment

                  	
                    25

                  
	 
      	
                    3.2

                  	
                    Several
      obligations and rights of the Financiers

                  	
                    25

                  
	 
      	
                    3.3

                  	
                    Purpose

                  	
                    25

                  
	 
      	
                    3.4

                  	
                    Voluntary
      prepayment

                  	
                    25

                  
	 
      	 
      	 
      
	
                    4

                  	
                    Funding
      and rate setting procedures

                  	
                    25

                  
	 
      	 
      	 
      	 
      
	 
      	
                    4.1

                  	
                    Delivery
      of Funding Notice

                  	
                    25

                  
	 
      	
                    4.2

                  	
                    Requirements
      for a Funding Notice

                  	
                    26

                  
	 
      	
                    4.3

                  	
                    Irrevocability
      of Funding Notice

                  	
                    26

                  
	 
      	
                    4.4

                  	
                    Selection
      of Interest Periods

                  	
                    26

                  
	 
      	
                    4.5

                  	
                    Determination
      of Funding Rate

                  	
                    26

                  
	 
      	 
      	 
      
	
                    5

                  	
                    Facility

                  	
                    26

                  
	 
      	 
      	 
      	 
      
	 
      	
                    5.1

                  	
                    Provision
      of Funding Portions

                  	
                    26

                  
	 
      	
                    5.2

                  	
                    Repayment

                  	
                    27

                  
	 
      	
                    5.3

                  	
                    Repayment
      of other Secured Moneys

                  	
                    27

                  
	 
      	
                    5.4

                  	
                    Interest

                  	
                    27

                  
	 
      	
                    5.5

                  	
                    Calculation
      of per annum interest rate

                  	
                    27

                  
	 
      	
                    5.6

                  	
                    Maximum
      interest payable

                  	
                    28

                  
	 
      	 
      	 
      
	
                    6

                  	
                    Payments

                  	
                    28

                  
	 
      	 
      	 
      	 
      
	 
      	
                    6.1

                  	
                    Manner
      of payment

                  	
                    28

                  
	 
      	
                    6.2

                  	
                    Payments
      on a Business Day

                  	
                    28

                  
	 
      	
                    6.3

                  	
                    Payments
      in gross

                  	
                    28

                  
	 
      	
                    6.4

                  	
                    Additional
      payments

                  	
                    28

                  
	 
      	
                    6.5

                  	
                    Taxation
      deduction procedures

                  	
                    29

                  
	 
      	
                    6.6

                  	
                    Tax
      Credit

                  	
                    29

                  
	 
      	
                    6.7

                  	
                    Tax
      affairs

                  	
                    29

                  
	 
      	
                    6.8

                  	
                    Amounts
      payable on demand

                  	
                    29

                  
	 
      	
                    6.9

                  	
                    Appropriation
      of payments

                  	
                    30

                  
	 
      	
                    6.10

                  	
                    Distribution
      by Agent

                  	
                    30

                  
	 
      	
                    6.11

                  	
                    Non-receipt
      of funds by Agent

                  	
                    30

                  
	 
      	
                    6.12

                  	
                    Redistribution
      of payments

                  	
                    30

                  
	 
      	
                    6.13

                  	
                    Rounding

                  	
                    31

                  
	 
      	
                    6.14

                  	
                    Currency
      exchanges

                  	
                    31

                  

          

        

      

    

     

    
      
        
          	
                  Bridge
      Facility Agreement

                	
                  Contents
      1

                

        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
Contents

     

    
      
        
          
            	
                    7

                  	
                    Conversion

                  	
                    31

                  
	 
      	 
      	 
      	 
      
	 
      	
                    7.1

                  	
                    Interest
      Conversion

                  	
                    31

                  
	 
      	
                    7.2

                  	
                    Issue
      of Shares

                  	
                    32

                  
	 
      	
                    7.3

                  	
                    Current
      Market Price

                  	
                    32

                  
	 
      	 
      	 
      
	
                    8

                  	
                    Issue
      of Warrants

                  	
                    32

                  
	 
      	 
      	 
      	 
      
	 
      	
                    8.1

                  	
                    Warrants

                  	
                    33

                  
	 
      	
                    8.2

                  	
                    Issue
      of Warrants

                  	
                    33

                  
	 
      	
                    8.3

                  	
                    Exercise
      of Warrants

                  	
                    33

                  
	 
      	
                    8.4

                  	
                    Ranking
      of Shares and Warrants

                  	
                    33

                  
	 
      	
                    8.5

                  	
                    Registration
      under US Securities Laws

                  	
                    33

                  
	 
      	 
      	 
      
	
                    9

                  	
                    Representations
      and warranties

                  	
                    34

                  
	 
      	 
      	 
      	 
      
	 
      	
                    9.1

                  	
                    General
      representations and warranties

                  	
                    34

                  
	 
      	
                    9.2

                  	
                    Project
      representations and warranties

                  	
                    37

                  
	 
      	
                    9.3

                  	
                    Survival
      and repetition of representations and warranties

                  	
                    39

                  
	 
      	
                    9.4

                  	
                    Reliance
      by Finance Parties

                  	
                    39

                  
	 
      	 
      	 
      
	
                    10

                  	
                    Undertakings

                  	
                    39

                  
	 
      	 
      	 
      	 
      
	 
      	
                    10.1

                  	
                    Conduct
      of Project

                  	
                    39

                  
	 
      	
                    10.2

                  	
                    Project
      Covenants

                  	
                    39

                  
	 
      	
                    10.3

                  	
                    Environmental
      issues

                  	
                    40

                  
	 
      	
                    10.4

                  	
                    Mining
      Rights

                  	
                    40

                  
	 
      	
                    10.5

                  	
                    Corporate
      budget

                  	
                    41

                  
	 
      	
                    10.6

                  	
                    Provision
      of information and reports

                  	
                    41

                  
	 
      	
                    10.7

                  	
                    Proper
      accounts

                  	
                    42

                  
	 
      	
                    10.8

                  	
                    Notices
      to the Agent

                  	
                    42

                  
	 
      	
                    10.9

                  	
                    Corporate
      existence

                  	
                    43

                  
	 
      	
                    10.10

                  	
                    Compliance

                  	
                    43

                  
	 
      	
                    10.11

                  	
                    Maintenance
      of capital

                  	
                    43

                  
	 
      	
                    10.12

                  	
                    Compliance
      with laws and Authorisations

                  	
                    44

                  
	 
      	
                    10.13

                  	
                    Payment
      of debts, outgoings and Taxes

                  	
                    44

                  
	 
      	
                    10.14

                  	
                    Project
      Documents

                  	
                    44

                  
	 
      	
                    10.15

                  	
                    Direct
      Agreements

                  	
                    45

                  
	 
      	
                    10.16

                  	
                    Amendments
      to constitution

                  	
                    45

                  
	 
      	
                    10.17

                  	
                    Negative
      pledge and disposal of assets

                  	
                    45

                  
	 
      	
                    10.18

                  	
                    No
      change to business

                  	
                    46

                  
	 
      	
                    10.19

                  	
                    Financial
      accommodation and Financial Indebtedness

                  	
                    46

                  
	 
      	
                    10.20

                  	
                    Arm’s
      length transactions

                  	
                    46

                  
	 
      	
                    10.21

                  	
                    No
      new Subsidiaries

                  	
                    46

                  
	 
      	
                    10.22

                  	
                    Restrictions
      on Distributions and fees

                  	
                    47

                  
	 
      	
                    10.23

                  	
                    Undertakings
      regarding Secured Property

                  	
                    47

                  
	 
      	
                    10.24

                  	
                    Insurance

                  	
                    48

                  
	 
      	
                    10.25

                  	
                    Subordination
      of Inter-Company Claims

                  	
                    50

                  
	 
      	
                    10.26

                  	
                    Share
      Qualification

                  	
                    51

                  
	 
      	
                    10.27

                  	
                    Taxes
      and Charges on Conversion

                  	
                    51

                  
	 
      	
                    10.28

                  	
                    Continued
      Listing

                  	
                    51

                  
	 
      	
                    10.29

                  	
                    Registrations

                  	
                    51

                  
	 
      	
                    10.30

                  	
                    Convertible
      Debenture

                  	
                    51

                  
	 
      	
                    10.31

                  	
                    Term
      of undertakings

                  	
                    51

                  
	 
      	 
      	 
      
	
                    11

                  	
                    Market
      Disruption Event

                  	
                    52

                  
	 
      	 
      	 
      	 
      
	 
      	
                    11.1

                  	
                    Market
      Disruption

                  	
                    52

                  
	 
      	
                    11.2

                  	
                    Alternative
      basis of interest or funding

                  	
                    52

                  

          

        

      

    

    
      
      

    

     

    
      	
              Bridge
      Facility Agreement

            	
              Contents
      2

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Contents

     

    
      
        
          
            	
                    12

                  	
                    Proceeds
      Account

                  	
                    52

                  
	 
      	 
      	 
      	 
      
	 
      	
                    12.1

                  	
                    Establishment
      of Proceeds Accounts

                  	
                    52

                  
	 
      	
                    12.2

                  	
                    Proceeds
      Account

                  	
                    53

                  
	 
      	
                    12.3

                  	
                    Limits
      on withdrawals

                  	
                    53

                  
	 
      	 
      	 
      
	
                    13

                  	
                    Events
      of Default

                  	
                    54

                  
	 
      	 
      	 
      	 
      
	 
      	
                    13.1

                  	
                    Events
      of Default

                  	
                    54

                  
	 
      	
                    13.2

                  	
                    Effect
      of Event of Default

                  	
                    56

                  
	 
      	
                    13.3

                  	
                    Transaction
      Parties to continue to perform

                  	
                    57

                  
	 
      	
                    13.4

                  	
                    Enforcement

                  	
                    57

                  
	 
      	
                    13.5

                  	
                    Review
      event

                  	
                    57

                  
	 
      	 
      	 
      
	
                    14

                  	
                    Increased
      costs and illegality

                  	
                    58

                  
	 
      	 
      	 
      	 
      
	 
      	
                    14.1

                  	
                    Increased
      costs

                  	
                    58

                  
	 
      	
                    14.2

                  	
                    Illegality

                  	
                    58

                  
	 
      	
                    14.3

                  	
                    Reduction
      of Commitment

                  	
                    58

                  
	 
      	 
      	 
      
	
                    15

                  	
                    Indemnities
      and Break Costs

                  	
                    59

                  
	 
      	 
      	 
      	 
      
	 
      	
                    15.1

                  	
                    General
      indemnity

                  	
                    59

                  
	 
      	
                    15.2

                  	
                    Break
      Costs

                  	
                    59

                  
	 
      	
                    15.3

                  	
                    Foreign
      currency indemnity

                  	
                    59

                  
	 
      	
                    15.4

                  	
                    Conversion
      of currencies

                  	
                    60

                  
	 
      	
                    15.5

                  	
                    Continuing
      indemnities and evidence of Loss

                  	
                    60

                  
	 
      	 
      	 
      
	
                    16

                  	
                    Fees,
      Tax, costs and expenses

                  	
                    60

                  
	 
      	 
      	 
      	 
      
	 
      	
                    16.1

                  	
                    Arrangement
      fee

                  	
                    60

                  
	 
      	
                    16.2

                  	
                    Tax

                  	
                    60

                  
	 
      	
                    16.3

                  	
                    Costs
      and expenses

                  	
                    61

                  
	 
      	 
      	 
      
	
                    17

                  	
                    Interest
      on overdue amounts

                  	
                    61

                  
	 
      	 
      	 
      	 
      
	 
      	
                    17.1

                  	
                    Payment
      of interest

                  	
                    61

                  
	 
      	
                    17.2

                  	
                    Accrual
      of interest

                  	
                    61

                  
	 
      	
                    17.3

                  	
                    Rate
      of interest

                  	
                    61

                  
	 
      	 
      	 
      
	
                    18

                  	
                    Relations
      between Agent and Financiers

                  	
                    62

                  
	 
      	 
      	 
      	 
      
	 
      	
                    18.1

                  	
                    Appointment
      of Agent

                  	
                    62

                  
	 
      	
                    18.2

                  	
                    Agent’s
      capacity

                  	
                    62

                  
	 
      	
                    18.3

                  	
                    Agent’s
      obligations

                  	
                    62

                  
	 
      	
                    18.4

                  	
                    Agent’s
      powers

                  	
                    62

                  
	 
      	
                    18.5

                  	
                    Instructions
      to Agent

                  	
                    63

                  
	 
      	
                    18.6

                  	
                    Assumptions
      as to authority

                  	
                    63

                  
	 
      	
                    18.7

                  	
                    Agent’s
      liability

                  	
                    63

                  
	 
      	
                    18.8

                  	
                    Delegation

                  	
                    64

                  
	 
      	
                    18.9

                  	
                    Agent
      entitled to rely

                  	
                    64

                  
	 
      	
                    18.10

                  	
                    Provision
      of information

                  	
                    64

                  
	 
      	
                    18.11

                  	
                    Indemnity
      by Financiers

                  	
                    64

                  
	 
      	
                    18.12

                  	
                    Independent
      appraisal by Financiers

                  	
                    65

                  
	 
      	
                    18.13

                  	
                    Resignation
      and removal of Agent

                  	
                    65

                  
	 
      	
                    18.14

                  	
                    Institution
      of actions by Financiers

                  	
                    65

                  
	 
      	
                    18.15

                  	
                    Identity
      of Financiers

                  	
                    65

                  
	 
      	
                    18.16

                  	
                    Electronic
      transmission of notices

                  	
                    66

                  
	 
      	 
      	 
      
	
                    19

                  	
                    Assignment

                  	
                    66

                  
	 
      	 
      	 
      	 
      
	 
      	
                    19.1

                  	
                    Assignment
      by Transaction Party

                  	
                    66

                  
	 
      	
                    19.2

                  	
                    Assignment
      by Finance Party

                  	
                    66

                  

          

        

      

    

     

    
      	
              Bridge
      Facility Agreement

            	
              Contents
      3

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Contents

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    	 
      	
                                            19.3

                                          	
                                            Substitution
      agreement

                                          	
                                            66

                                          
	 
      	
                                            19.4

                                          	
                                            Assist

                                          	
                                            67

                                          
	 
      	
                                            19.5

                                          	
                                            Participation
      not permitted

                                          	
                                            67

                                          
	 
      	
                                            19.6

                                          	
                                            Lending
      Office

                                          	
                                            67

                                          
	 
      	
                                            19.7

                                          	
                                            No
      increase in costs

                                          	
                                            67

                                          
	 
      	
                                            19.8

                                          	
                                            Anti-Money
      Laundering

                                          	
                                            67

                                          
	 
      	 
      	 
      
	
                                            20

                                          	
                                            Saving
      provisions

                                          	
                                            68

                                          
	 	 	 
	 
      	
                                            20.1

                                          	
                                            No
      merger of security

                                          	
                                            68

                                          
	 
      	
                                            20.2

                                          	
                                            Exclusion
      of moratorium

                                          	
                                            68

                                          
	 
      	
                                            20.3

                                          	
                                            Conflict

                                          	
                                            68

                                          
	 
      	
                                            20.4

                                          	
                                            Consents

                                          	
                                            68

                                          
	 
      	
                                            20.5

                                          	
                                            Principal
      obligations

                                          	
                                            69

                                          
	 
      	
                                            20.6

                                          	
                                            Non-avoidance

                                          	
                                            69

                                          
	 
      	
                                            20.7

                                          	
                                            Set-off
      authorised

                                          	
                                            69

                                          
	 
      	
                                            20.8

                                          	
                                            Agent’s
      certificates and approvals

                                          	
                                            69

                                          
	 
      	
                                            20.9

                                          	
                                            No
      reliance or other obligations and risk assumption

                                          	
                                            69

                                          
	 
      	
                                            20.10

                                          	
                                            Power
      of attorney

                                          	
                                            70

                                          
	 
      	 
      	 
      
	
                                            21

                                          	
                                            General

                                          	
                                            70

                                          
	 	 	 
	 
      	
                                            21.1

                                          	
                                            Confidential
      information

                                          	
                                            70

                                          
	 
      	
                                            21.2

                                          	
                                            Transaction
      Party to bear cost

                                          	
                                            70

                                          
	 
      	
                                            21.3

                                          	
                                            Notices

                                          	
                                            71

                                          
	 
      	
                                            21.4

                                          	
                                            Governing
      law and jurisdiction

                                          	
                                            71

                                          
	 
      	
                                            21.5

                                          	
                                            Prohibition
      and enforceability

                                          	
                                            71

                                          
	 
      	
                                            21.6

                                          	
                                            Waivers

                                          	
                                            72

                                          
	 
      	
                                            21.7

                                          	
                                            Variation

                                          	
                                            72

                                          
	 
      	
                                            21.8

                                          	
                                            Cumulative
      rights

                                          	
                                            72

                                          
	 
      	
                                            21.9

                                          	
                                            Attorneys

                                          	
                                            72

                                          
	 
      	
                                            21.10

                                          	
                                            Counterparts

                                          	
                                            72

                                          
	 
      	 
      	 
      
	 
      	
                                            Schedules

                                          	 
      
	 
      	 
      	 
      
	 
      	
                                            Notice
      Details

                                          	
                                             

                                          
	 
      	 
      	 
      
	 
      	
                                            Commitment

                                          	
                                             

                                          
	 
      	 
      	 
      
	 
      	
                                            Conversion
      Notice

                                          	
                                             

                                          
	 
      	 
      	 
      
	 
      	
                                            Securities

                                          	
                                             

                                          
	 
      	 
      	 
      
	 
      	
                                            Officer’s
      certificate

                                          	
                                             

                                          
	 
      	 
      	 
      
	 
      	
                                            Funding
      Notice

                                          	
                                             

                                          
	 
      	 
      	 
      
	 
      	
                                            Form
      of Warrant Certificate

                                          	
                                             

                                          
	 
      	 
      	 
      
	 
      	
                                            Permitted
      Encumbrances

                                          	
                                             

                                          
	 
      	 
      	 
      
	 
      	
                                            Project
      Area

                                          	
                                             

                                          
	 
      	 
      	 
      
	 
      	
                                            Group
      Structure Diagram

                                          	
                                             

                                          
	 
      	 
      	 
      
	 
      	
                                            Unpatented
      Mining Claims

                                          	
                                             

                                          
	 
      	 
      	 
      
	 
      	
                                            Royalties

                                          	
                                             

                                          
	 
      	 
      	 
      
	 
      	
                                            Existing
      Registrations

                                          	
                                             

                                          
	 
      	 
      	 
      
	 
      	
                                            Guarantee
      Assumption Agreement

                                          	 
      
	 
      	 
      	 
      
	 
      	
                                            Substitution
      Agreement

                                          	 
      
	 
      	 
      
	 
      	
                                            Freehills
      owns the copyright in this document and using it without permission is
      strictly
prohibited.

                                          

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      	
              Bridge
      Facility Agreement

            	
              Contents
      4

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    The
agreement

     

    
      Bridge
Facility Agreement

      
        
          

        

      

    

     

    Date  December
10, 2008

     

    
      
        
          
            
              
                	
                        Between
      the parties

                         

                      	 
      
	
                         

                        Borrower

                      	
                         

                        Apollo
      Gold Corporation

                         

                        a
      corporation existing under the laws of the Yukon Territory,
      Canada

                         

                        of
      5655 South Yosemite Street, Suite 200 Greenwood Village, Colorado
      80111-3220, United States of America

                         

                        (Borrower)

                         

                      
	
                         

                        Financier

                      	
                         

                        RMB
      Australia Holdings Limited

                         

                        a
      company incorporated under the laws of Australia

                         

                        of
      Level 13, 60 Castlereagh Street, Sydney, New South Wales 2000,
      Australia

                         

                        Macquarie
      Bank Limited

                         

                        ACN
      008 583 542 of Level 1, No. 1 Martin Place, Sydney NSW 2000,
      Australia

                         

                      
	
                         

                        Agent
      and Security Agent

                      	
                         

                        RMB
      Resources Inc.

                         

                        a
      company incorporated under the laws of Delaware, United States of
      America

                         

                        of
      Suite 900, 143 Union Boulevard, Lakewood, Colorado, United States of
      America

                         

                        (both the Agent and the Security
      Agent)

                         

                      
	
                         

                        Background

                      	
                         

                        the
      Financiers have agreed to provide the Facility to the Borrower on the
      terms of this agreement.

                         

                      
	
                         

                        The
      parties agree

                      	
                         

                        as
      set out in the operative part of this agreement, in consideration of,
      among other things, the mutual promises contained in this
      agreement.

                         

                      

              

            

          

        

      

    

     

    
      
        
          	
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      Facility Agreement

                	
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      1

                

        

      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
       

      
        	 	
                 

              

      

       

    

    
      
        
          	
                  1

                	
                  Definitions
      and interpretations

                

        

      

       

    

    
      	
              1.1

            	
              Definitions

            

    

     

    The
meanings of the terms used in this document are set out below.

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          	
                                                                   

                                                                  Term

                                                                   

                                                                	
                                                                   

                                                                  Meaning

                                                                
	
                                                                   

                                                                  Accounting
      Standards

                                                                	
                                                                   

                                                                  generally accepted accounting principles in
      Canada.

                                                                
	
                                                                   

                                                                  Affiliate

                                                                	
                                                                   

                                                                  With
      respect to a Person:

                                                                   

                                                                
	 
      	
                                                                  1

                                                                	
                                                                  any
      partner, officer, ten percent (10%) or more shareholder, manager,
      director, employee or managing agent of that Person or that Person’s
      Affiliates;

                                                                
	 	 	 
	 
      	
                                                                  2

                                                                	
                                                                  any
      spouse, parent, siblings, children or grandchildren (by birth or adoption)
      of that Person; and

                                                                
	 	 	 
	 
      	
                                                                  3

                                                                	
                                                                  any
      other Person (other than a Subsidiary):

                                                                
	 	 	 
	 
      	 
      	
                                                                  ·

                                                                	
                                                                  that
      directly or indirectly through one or more intermediaries, controls, or is
      controlled by, or is under common control with, that
    Person;

                                                                
	 	 	 	 
	 
      	 
      	
                                                                  ·

                                                                	
                                                                  that
      directly or indirectly beneficially owns or holds 10% or more of any class
      of voting stock or partnership or other voting interest of that Person or
      any Subsidiary of that Person; or

                                                                
	 	 	 	 
	 
      	 
      	
                                                                  ·

                                                                	
                                                                  10%
      or more of the voting stock or partnership or other voting interest of
      which is directly or indirectly beneficially owned or held by that Person
      or a Subsidiary of that Person.

                                                                
	 
      	 
      	 
      	 
      
	 	 
	
                                                                  AGI

                                                                	
                                                                  Apollo
      Gold Inc., a corporation existing under the laws of Delaware, United
      States of America of 5655 South Yosemite Street, Suite 200 Greenwood
      Village, Colorado, 80111-3220, United States of
America.

                                                                
	 	 
	 	 
	
                                                                  AMEX

                                                                	
                                                                  the
      NYSE Alternext U.S. exchange, formerly known as the American Stock
      Exchange.

                                                                
	 	 
	 	 
	
                                                                  AMEX
      Approval

                                                                	
                                                                  the
      approval of the AMEX in connection with the transactions contemplated in
      the Transaction Documents, including:

                                                                
	 	 
	 
      	
                                                                  1

                                                                	
                                                                  the
      listing of Shares required to be issued for Conversion;
  and

                                                                
	 	 	 
	 
      	
                                                                  2

                                                                	
                                                                  the
      issuance and listing of Shares issuable on the exercise of a
      Warrant.

                                                                
	 	 	 
	 	 
	
                                                                  Associate

                                                                	
                                                                  a
      Subsidiary or a Holding Company of a person or any other Subsidiary of
      that Holding Company.

                                                                
	 	 
	 	 
	
                                                                  Attorney

                                                                	
                                                                  an
      attorney appointed under a Transaction Document.

                                                                
	 	 

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      	
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      Facility Agreement

            	
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      2

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
       

      
        	 	
                 

              

      

       

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                      
                                                                        
                                                                          
                                                                            
                                                                              
                                                                                
                                                                                  
                                                                                    
                                                                                      
                                                                                        
                                                                                          	
                                                                                                  Term

                                                                                                   

                                                                                                	
                                                                                                  Meaning

                                                                                                
	 	 	 
	
                                                                                                  Authorisation

                                                                                                	
                                                                                                  1

                                                                                                	
                                                                                                  any
      consent, registration, filing, agreement, notice of non-objection,
      notarisation, certificate, licence, approval, permit, authority or
      exemption; or

                                                                                                
	 	 	 
	 
      	
                                                                                                  2

                                                                                                	
                                                                                                  in
      relation to anything which a Government Agency may prohibit or restrict
      within a specific period, the expiry of that period without intervention
      or action or notice of intended intervention or action.

                                                                                                
	 	 	 
	 	 
	
                                                                                                  Availability
      Period

                                                                                                	
                                                                                                  the
      period commencing on the satisfaction of the conditions precedent in
      clause 2.1 and ending on the earlier
      of:

                                                                                                
	 	 	 
	 
      	
                                                                                                  1

                                                                                                	
                                                                                                  the
      date on which the Commitment is cancelled in full under this
      agreement;

                                                                                                
	 	 	 
	 
      	
                                                                                                  2

                                                                                                	
                                                                                                  30
      June 2009; or

                                                                                                
	 	 	 
	 
      	
                                                                                                  3

                                                                                                	
                                                                                                  the
      date the first drawing is made under any Project
  Facility.

                                                                                                
	 	 
	 	 
	
                                                                                                  Beneficiary

                                                                                                	
                                                                                                  has
      the meaning given to that term under the Security Agent
      Agreement.

                                                                                                
	 	 
	 	 
	
                                                                                                  Break
      Costs

                                                                                                	
                                                                                                  for
      any repayment or prepayment the amount (if any) by
  which:

                                                                                                
	 	 	 
	 
      	
                                                                                                  1

                                                                                                	
                                                                                                  the
      interest on the amount repaid or prepaid which a Financier should have
      received under this agreement (had the repayment or prepayment not
      occurred),

                                                                                                
	 	 
	 
      	
                                                                                                  exceeds:

                                                                                                
	 	 	 
	 
      	
                                                                                                  2

                                                                                                	
                                                                                                  the
      return which that Financier would be able to obtain by placing the amount
      repaid or prepaid to it on deposit with a Reference
  Bank,

                                                                                                
	 	 
	 
      	
                                                                                                  in
      each case for the period from the date of repayment or prepayment until
      the last day of the then current Interest Period applicable to the repaid
      or prepaid amount.

                                                                                                
	 	 	 
	 	 	 
	
                                                                                                  Business
      Day

                                                                                                	
                                                                                                  1

                                                                                                	
                                                                                                  for
      the purposes of clause 21.3, a day on which banks are open for business in
      the city where the notice or other communication is received excluding a
      Saturday, Sunday or public holiday; and

                                                                                                
	 	 	 
	 
      	
                                                                                                  2

                                                                                                	
                                                                                                  for
      all other purposes, a day on which banks are open for business in Sydney,
      Australia, Denver, United States of America and Toronto, Canada, excluding
      a Saturday, Sunday or public holiday.

                                                                                                
	 	 
	 	 
	
                                                                                                  C$
      and Canadian
      Dollars

                                                                                                	
                                                                                                  the
      lawful currency of Canada.

                                                                                                
	 	 
	 	 
	
                                                                                                  C$
      Equivalent Amount

                                                                                                	
                                                                                                  in
      respect of an amount on a day, means the amount of Canadian Dollars
      converted from another currency at the noon spot rate for the purchase of
      Canadian Dollars with that currency quoted by the Bank of Canada on that
      day.

                                                                                                
	 	 
	 	 
	
                                                                                                  Canadian
      Dollars Proceeds Account

                                                                                                	
                                                                                                  the
      Canadian Dollars Proceeds Account to be established in accordance with
      clause 12.1(a).

                                                                                                
	 	 
	 	 
	
                                                                                                  Cashflow
      Model

                                                                                                	
                                                                                                  the
      cashflow model prepared by the Borrower and approved by the Agent to be
      provided in accordance with clause 2.1(g).

                                                                                                
	 	 

                                                                                        

                                                                                      

                                                                                    

                                                                                  

                                                                                

                                                                              

                                                                            

                                                                          

                                                                        

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      	
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      Facility Agreement

            	
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      3

            

    

    
      
      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
       

      
        	 	
                 

              

      

       

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                      
                                                                        
                                                                          	
                                                                                  Term

                                                                                   

                                                                                	
                                                                                  Meaning

                                                                                
	 	 
	
                                                                                  Caterpillar
      Master Lease 

                                                                                  Agreement

                                                                                	
                                                                                  the
      Caterpillar Master Lease Agreement to be entered into between Caterpillar
      Financial Services Corporation and the Borrower.

                                                                                
	 	 
	 	 
	
                                                                                  Certificate

                                                                                	
                                                                                  a
      share certificate or other document (which conforms with the Listing
      Rules) evidencing legal ownership of a share listed on the TSX and the
      AMEX.

                                                                                
	 	 
	 	 
	
                                                                                  Change
      in Law

                                                                                	
                                                                                  any
      present or future law, regulation, treaty, order or official directive or
      request (which, if not having the force of law, would be complied with by
      a responsible financial institution) which:

                                                                                
	 	 	 
	 
      	
                                                                                  1

                                                                                	
                                                                                  commences,
      is introduced, or changes, after the date of this agreement;
      and

                                                                                
	 	 	 
	 
      	
                                                                                  2

                                                                                	
                                                                                  does
      not relate to a change in the effective rate at which Tax is imposed on
      the overall net income of a Finance Party.

                                                                                
	 	 
	 	 
	
                                                                                  Civil
      and Earthworks Contract

                                                                                	
                                                                                  the
      civil and earthworks contract to be entered into between the Borrower and
      749496 Ontario Limited operating as CMS Mechanical Timmins
      Division.

                                                                                
	 	 
	 	 
	
                                                                                  Collateral
      Security

                                                                                	
                                                                                  any
      present or future Encumbrance, Surety Obligation or other document or
      agreement created or entered into by a Transaction Party or any other
      person as security for, or to credit enhance, the payment of any of the
      Secured Moneys, including any further security granted under clause
      10.23(b).

                                                                                
	 	 
	 	 
	
                                                                                  Commitment

                                                                                	
                                                                                  the
      maximum aggregate amount agreed to be provided by the Financiers under the
      Facility, being US$15,000,000, as reduced or cancelled in accordance with
      this agreement.

                                                                                
	 	 
	 	 
	
                                                                                  Contamination

                                                                                	
                                                                                  in
      respect of a property, the presence of Pollutants:

                                                                                
	 	 	 
	 
      	
                                                                                  1

                                                                                	
                                                                                  in,
      on or under the property; or

                                                                                
	 	 	 
	 
      	
                                                                                  2

                                                                                	
                                                                                  in
      the ambient air and emanating from the property.

                                                                                
	 	 
	 	 
	
                                                                                  Contested
      Tax

                                                                                	
                                                                                  a
      Tax payable by a Transaction Party where the Transaction Party is
      contesting its liability to pay that Tax, and has reasonable grounds to do
      so, and in respect of which there has been set aside a reserve (segregated
      to the extent required by Accounting Standards) in an amount which is
      adequate.

                                                                                
	 	 
	 	 
	
                                                                                  Control

                                                                                	
                                                                                  of
      a Person, includes the possession directly or indirectly of the power,
      whether or not having statutory, legal or equitable force, and whether or
      not based on statutory, legal or equitable rights, directly or indirectly,
      to do any of the following:

                                                                                
	 	 	 
	 
      	
                                                                                  1

                                                                                	
                                                                                  where
      the word Control is used in the context of a Review Event, to control 20%
      or more of the total votes which might be cast at a general meeting of
      that Person;

                                                                                
	 	 	 

                                                                        

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
      

    

    
      	
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      Facility Agreement

            	
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      4

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
       

      
        	 	
                 

              

      

       

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    	
                                                                            Term

                                                                             

                                                                          	
                                                                            Meaning

                                                                          
	 	 	 
	 
      	
                                                                            2

                                                                          	
                                                                            where
      the word Control is used elsewhere in this agreement, to control 50% or
      more of the total votes which might be cast at a general meeting of that
      Person;

                                                                          
	 	 	 
	 
      	
                                                                            3

                                                                          	
                                                                            to
      elect or appoint a majority of the board of directors or other governing
      body of that Person; or

                                                                          
	 	 	 
	 
      	
                                                                            4

                                                                          	
                                                                            to
      direct or cause the direction of the management and policies of that
      company whether by means of trusts, agreements, arrangements,
      understandings, the ownership of any interest in shares or stock of that
      company or otherwise.

                                                                          
	 	 
	 	 
	
                                                                            Conversion

                                                                          	
                                                                            a
      conversion of the interest on a Funding Portion to Shares in accordance
      with clause 7.1, and Convert and like words
      have corresponding meanings.

                                                                          
	 	 
	 	 
	
                                                                            Conversion
      Date

                                                                          	
                                                                            the
      Quarterly Date on which a Finance Party is to Convert the interest on a
      Funding Portion to Shares in accordance with clause
7.1.

                                                                          
	 	 
	 	 
	
                                                                            Conversion
      Notice

                                                                          	
                                                                            a
      notice substantially in the form of Schedule 3.

                                                                          
	 	 
	 	 
	
                                                                            Convertible
      Debenture

                                                                          	
                                                                            the
      obligation of the Borrower to repay an aggregate of US$8,580,000
      principal amount, together with interest and other monies owing
      as specified pursuant to the terms of the debenture certificates issued on
      February 23, 2007, pursuant to the terms and conditions of an agency
      agreement between the Borrower and Regent Securities Capital Corporation
      and pursuant to the terms and conditions of an agency agreement between
      the Borrower and Shoreline Pacific LLC, each debenture having a two year
      term maturing on February 23, 2009 and bearing interest at the rate
      of 1% per month for the first 12 months and increasing to 1.5% per
      month for the next 12 months until maturity or conversion. The debentures
      are convertible at any time prior to maturity by the holders into common
      shares of the Borrower at a conversion rate of US$0.50 per common
      share.

                                                                          
	 	 
	 	 
	
                                                                            Corporate
      Budget

                                                                          	
                                                                            the
      consolidated corporate budget for non-Project expenditures of the Borrower
      and Group through the end of 2009 to be provided in accordance with clause
      2.1(e).

                                                                          
	 	 
	 	 
	
                                                                            Current
      Market Price

                                                                          	
                                                                            on
      a Conversion Date, the price determined in accordance with clause
      7.3.

                                                                          
	 	 	 
	 	 	 
	
                                                                            Default

                                                                          	
                                                                            1

                                                                          	
                                                                            an
      Event of Default; or

                                                                          
	 	 	 
	 
      	
                                                                            2

                                                                          	
                                                                            a
      Potential Event of Default.

                                                                          
	 	 	 
	 	 	 
	
                                                                            Direct
      Agreements

                                                                          	
                                                                            1

                                                                          	
                                                                            Direct
      Agreement - Model Services Agreement to be made between the Agent, the
      Borrower and GBM Minerals Engineering Consultants
  Limited;

                                                                          
	 	 	 

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
      

    

     

    
      	
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      Facility Agreement

            	
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      5

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
       

      
        	 	
                 

              

      

       

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  	
                                                                          Term

                                                                           

                                                                        	
                                                                          Meaning

                                                                        
	 	 	 
	 
      	
                                                                          2

                                                                        	
                                                                          Direct
      Agreement – Genivar Agreements to be made between the Agent, the Borrower
      and Genivar;

                                                                        
	 	 	 
	 
      	
                                                                          3

                                                                        	
                                                                          Direct
      Agreement - Mazuma Master Lease Agreement to be made between the Agent,
      the Borrower and Mazuma Capital Corp;

                                                                        
	 	 	 
	 
      	
                                                                          4

                                                                        	
                                                                          Direct
      Agreement - Open Pit Stripping Contract Agreement to be made between the
      Agent, the Borrower and Leo Alarie and Sons Construction
    Ltd;

                                                                        
	 	 	 
	 
      	
                                                                          5

                                                                        	
                                                                          Direct
      Agreement – Holding Ponds Contract Agreement to be made between the Agent,
      the Borrower and Leo Alarie and Sons Construction Ltd

                                                                        
	 	 	 
	 
      	
                                                                          6

                                                                        	
                                                                          Direct
      Agreement - Caterpillar Master Lease Agreement to be made between the
      Agent, the Borrower and Caterpillar Financial Services
      Corporation;

                                                                        
	 	 	 
	 
      	
                                                                          7

                                                                        	
                                                                          Direct
      Agreement - Transportation Agreement to be made between the Agent, the
      Borrower and the transportation contractor for the
  Project;

                                                                        
	 	 	 
	 
      	
                                                                          8

                                                                        	
                                                                          Direct
      Agreement - Power Supply Agreement to be made between the Agent, the
      Borrower and Ontario Hydro;

                                                                        
	 	 	 
	 
      	
                                                                          9

                                                                        	
                                                                          Direct
      Agreement – Civil and Earthworks Contract to be made between the Agent,
      the Borrower and 749496 Ontario Limited operating as CMS Mechanical
      Timmins Division; and

                                                                        
	 	 	 
	 
      	
                                                                          10

                                                                        	
                                                                          any
      other direct agreement entered into by the Borrower in accordance with
      clause 10.14(c).

                                                                        
	 	 
	 
      	 
      
	
                                                                          Dispose

                                                                        	
                                                                          in
      relation to any asset, property or right, means to sell, transfer, assign,
      surrender, convey, lease, licence, lend, farm-out or otherwise dispose of
      any interest in the asset, property or right.

                                                                        
	 	 
	 	 
	
                                                                          Distribution

                                                                        	
                                                                          any
      dividend, distribution or other amount declared or paid by a Transaction
      Party on any Marketable Securities issued by it.

                                                                        
	 	 
	 	 
	
                                                                          Documents

                                                                        	
                                                                          the
      Transaction Documents and the Project Documents.

                                                                        
	 	 	 
	 	 	 
	
                                                                          Encumbrance

                                                                        	
                                                                          1

                                                                        	
                                                                          any
      mortgage, agreement to secure debt, agreement of trust, lien, pledge,
      charge, capital lease, conditional sale or other title retention
      agreement, or other security interest, security title or encumbrance of
      any kind in respect of any property of that Person or upon the income and
      profits therefrom, whether that interest is based on the common law,
      statute or contract; and

                                                                        
	 	 	 
	 
      	
                                                                          2

                                                                        	
                                                                          any
      arrangement, express or implied, under which any property of that Person
      is transferred, sequestered or otherwise identified for the purpose of
      subjecting the same to the payment of Financial Indebtedness or
      performance of any other obligation in priority to the payment of the
      general, unsecured creditors of that Person.

                                                                        
	 	 
	 	 
	
                                                                          Environmental
      Approvals

                                                                        	
                                                                          all
      consents, approvals, licences or other Authorisations of any kind required
      by Environmental Law.

                                                                        
	 	 
	 	 
	
                                                                          Environmental
      Law

                                                                        	
                                                                          any
      law of Canada or the Province of Ontario that relates to the protection of
      the environment or health and safety or manages Pollutants, including laws
      concerning land use or the rehabilitation of any land, development,
      Contamination, conservation of natural or cultural resources and resource
      allocation (including any law of Canada or the Province of Ontario
      relating to the exploration for, and development or exploitation of, any
      natural resource).

                                                                        
	 	 

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      	
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      Facility Agreement

            	
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                                                                              Term

                                                                               

                                                                            	
                                                                              Meaning

                                                                            
	 	 
	
                                                                              Event
      of Default

                                                                            	
                                                                              Any
      event specified in clause 13.1.

                                                                            
	 	 
	 	 
	
                                                                              Excluded
      Tax

                                                                            	
                                                                              a
      Tax imposed by any jurisdiction on the net income of a Finance Party but
      not a Tax:

                                                                            
	 	 	 
	 
      	
                                                                              1

                                                                            	
                                                                              calculated
      on, on account of, or by reference to the gross amount of any payment
      (without allowance for any deduction) derived by a Finance Party under a
      Transaction Document or any other document referred to in a Transaction
      Document; or

                                                                            
	 	 	 
	 
      	
                                                                              2

                                                                            	
                                                                              imposed
      as a result of a Finance Party being considered a resident of or organised
      or doing business in that jurisdiction solely as a result of it being a
      party to a Transaction Document or any transaction contemplated by a
      Transaction Document.

                                                                            
	 	 
	 	 
	
                                                                              Expiry
      Date

                                                                            	
                                                                              the
      date 48 months after the Warrants are to be issued to a Financier or a
      Financier’s nominee in accordance with clauses 2.1(o) and
      8.1;

                                                                            
	 	 
	 	 
	
                                                                              Facility

                                                                            	
                                                                              the
      facility made available by the Financiers to the Borrower under clause 3.1
      of this agreement.

                                                                            
	 	 
	 	 
	
                                                                              Finance
      Party

                                                                            	
                                                                              each
      of:

                                                                            
	 	 	 
	 
      	
                                                                              1

                                                                            	
                                                                              the
      Agent;

                                                                            
	 	 	 
	 
      	
                                                                              2

                                                                            	
                                                                              the
      Security Agent;

                                                                            
	 	 	 
	 
      	
                                                                              3

                                                                            	
                                                                              the
      Financiers; and

                                                                            
	 	 	 
	 
      	
                                                                              4

                                                                            	
                                                                              each
      other Beneficiary,

                                                                            
	 	 
	 
      	
                                                                              and
      Finance Parties
      means all of them.

                                                                            
	 	 
	 	 
	
                                                                              Financial
      Indebtedness

                                                                            	
                                                                              any
      debt or other monetary liability in respect of moneys borrowed or raised
      or any financial accommodation including under or in respect of
      any:

                                                                            
	 	 	 
	 
      	
                                                                              1

                                                                            	
                                                                              bill,
      bond, debenture, note or similar instrument;

                                                                            
	 	 	 
	 
      	
                                                                              2

                                                                            	
                                                                              acceptance,
      endorsement or discounting arrangement;

                                                                            
	 	 	 
	 
      	
                                                                              3

                                                                            	
                                                                              Surety
      Obligation;

                                                                            
	 	 	 
	 
      	
                                                                              4

                                                                            	
                                                                              finance
      or capital Lease;

                                                                            
	 	 	 
	 
      	
                                                                              5

                                                                            	
                                                                              agreement
      for the deferral of a purchase price or other payment in relation to the
      acquisition of any asset or service;

                                                                            
	 	 	 
	 
      	
                                                                              6

                                                                            	
                                                                              obligation
      to deliver goods or provide services paid for in advance by any of the
      Financiers; or

                                                                            
	 	 	 

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      	
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                                                                                                  Term

                                                                                                   

                                                                                                	
                                                                                                  Meaning

                                                                                                
	 	 	 
	 
      	
                                                                                                  7

                                                                                                	
                                                                                                  agreement
      for the payment of capital or premium on the redemption of any preference
      shares,

                                                                                                
	 	 
	 
      	
                                                                                                  and
      irrespective of whether the debt or liability:

                                                                                                
	 	 	 
	 
      	
                                                                                                  8

                                                                                                	
                                                                                                  Is
      present or future;

                                                                                                
	 	 	 
	 
      	
                                                                                                  9

                                                                                                	
                                                                                                  Is
      actual, prospective, contingent or otherwise;

                                                                                                
	 	 	 
	 
      	
                                                                                                  10

                                                                                                	
                                                                                                  Is
      at any time ascertained or unascertained;

                                                                                                
	 	 	 
	 
      	
                                                                                                  11

                                                                                                	
                                                                                                  Is
      owed or incurred alone or severally or jointly or both with any other
      person; or

                                                                                                
	 	 	 
	 
      	
                                                                                                  12

                                                                                                	
                                                                                                  comprises
      any combination of the above.

                                                                                                
	 	 
	 	 
	
                                                                                                  Financial
      Report

                                                                                                	
                                                                                                  in
      relation to an entity, the following financial statements and information
      in relation to the entity (or the equivalent financial statements or
      information in the jurisdiction of the entity), prepared for its financial
      quarter, financial half-year or financial year:

                                                                                                
	 	 	 
	 
      	
                                                                                                  1

                                                                                                	
                                                                                                  a
      statement of financial performance;

                                                                                                
	 	 	 
	 
      	
                                                                                                  2

                                                                                                	
                                                                                                  a
      statement of financial position; and

                                                                                                
	 	 	 
	 
      	
                                                                                                  3

                                                                                                	
                                                                                                  a
      statement of cashflows.

                                                                                                
	 	 	 
	 	 	 
	
                                                                                                  Force
      Majeure Event

                                                                                                	
                                                                                                  1

                                                                                                	
                                                                                                  an
      act of God;

                                                                                                
	 	 	 
	 
      	
                                                                                                  2

                                                                                                	
                                                                                                  war,
      revolution, an act of terrorism, or any other unlawful act against public
      order or authority;

                                                                                                
	 	 	 
	 
      	
                                                                                                  3

                                                                                                	
                                                                                                  a
      restraint by a Government Agency; and

                                                                                                
	 	 	 
	 
      	
                                                                                                  4

                                                                                                	
                                                                                                  any
      other event which a reasonable person could not foresee or reasonably make
      provision for or insure against,

                                                                                                
	 	 
	 
      	
                                                                                                  which
      wholly or partially prevents, hinders, obstructs, delays or interferes
      with the development or operation of the Project or the sale of
      Product.

                                                                                                
	 	 
	 	 
	
                                                                                                  Funding
      Date

                                                                                                	
                                                                                                  the
      date on which a Funding Portion is provided, or is to be provided, to the
      Borrower under this agreement.

                                                                                                
	 	 
	 	 
	
                                                                                                  Funding
      Notice

                                                                                                	
                                                                                                  a
      notice given under clause 4.1.

                                                                                                
	 	 
	 	 
	
                                                                                                  Funding
      Portion

                                                                                                	
                                                                                                  the
      portion of the Commitment provided under this
agreement.

                                                                                                
	 	 
	 	 
	
                                                                                                  Funding
      Rate

                                                                                                	
                                                                                                  in
      respect of an Interest Period, the aggregate of:

                                                                                                
	 	 	 
	 
      	
                                                                                                  1

                                                                                                	
                                                                                                  LIBOR
      for that Interest Period; and

                                                                                                
	 	 	 
	 
      	
                                                                                                  2

                                                                                                	
                                                                                                  The
      Margin.

                                                                                                
	 	 
	 	 
	
                                                                                                  Genivar
      Agreements

                                                                                                	
                                                                                                  each
      of the following agreements between Genivar and the
    Borrower:

                                                                                                
	 	 	 
	 
      	
                                                                                                  1

                                                                                                	
                                                                                                  engineering
      agreement for the conveyor feeding the primary ball mill at the Project
      dated 26 November 2008;

                                                                                                
	 	 	 

                                                                                        

                                                                                      

                                                                                    

                                                                                  

                                                                                

                                                                              

                                                                            

                                                                          

                                                                        

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
       

      
        	
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                                                                                    Term

                                                                                     

                                                                                  	
                                                                                    Meaning

                                                                                  
	 	 	 
	 
      	
                                                                                    2

                                                                                  	
                                                                                    agreement
      to develop the design and contract administration of some of the
      components in the startup of a new mine dated 8 October
    2008;

                                                                                  
	 	 	 
	 
      	
                                                                                    3

                                                                                  	
                                                                                    agreement
      to carry out the detailed engineering and design documents for the civil
      foundation and structural work at the Project dated 4 November 2008;
      and

                                                                                  
	 	 	 
	 
      	
                                                                                    4

                                                                                  	
                                                                                    additional
      scope of work for the infrastructure moves and underground preparation
      work at the Project dated 18 November 2008.

                                                                                  
	 	 
	 	 
	
                                                                                    Good
      Industry Practice

                                                                                  	
                                                                                    the
      degree of care and skill, diligence, prudence (financial and operational),
      foresight and operating practice which would reasonably and ordinarily be
      expected from a skilled operator engaged in the same type of undertaking
      as the Project under the same or similar circumstances.

                                                                                  
	 	 
	 	 
	
                                                                                    Government
      Agency

                                                                                  	
                                                                                    any
      government or any governmental, semi-governmental, administrative, fiscal
      or judicial body, department, commission, authority, tribunal, agency or
      entity.

                                                                                  
	 	 
	 	 
	
                                                                                    Group

                                                                                  	
                                                                                    each
      of the companies in the Group Structure Diagram and any company which
      becomes a Subsidiary of the Borrower after the date of this agreement, and
      Group Member means
      any one of them.

                                                                                  
	 	 
	 	 
	
                                                                                    Group
      Structure Diagram

                                                                                  	
                                                                                    the
      group structure diagram in Schedule 10,
      as amended or updated by the delivery of a new diagram to the Agent under
      clause 10.6(h).

                                                                                  
	 	 
	 	 
	
                                                                                    Guarantee
      Assumption Agreement

                                                                                  	
                                                                                    an
      agreement in the form of attachment 1.

                                                                                  
	 	 
	 	 
	
                                                                                    Guarantor

                                                                                  	
                                                                                    any
      person who has executed a Guarantee Assumption
  Agreement.

                                                                                  
	 	 
	 	 
	
                                                                                    Holding
      Company

                                                                                  	
                                                                                    of
      any other person, means a company in respect of which that other person is
      a Subsidiary.

                                                                                  
	 	 
	 	 
	
                                                                                    Hedging
      Agreement

                                                                                  	
                                                                                    each
      interest rate transaction, foreign exchange transaction, equity or equity
      index option, bond option, commodity swap, commodity option, commodity
      forward sale, cap transaction, currency swap transaction, cross-currency
      swap rate transaction or any other hedge or derivative agreement entered
      into by a Transaction Party, including any master agreement and any
      transaction or confirmation under it.

                                                                                  
	 	 
	 	 
	
                                                                                    Holding
      Pond Contract Agreement

                                                                                  	
                                                                                    the
      Holding Pond Contract Agreement dated 22 October 2008 between Leo Alarie
      and Sons Construction Limited.

                                                                                  
	 	 

                                                                          

                                                                        

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      	
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      Facility Agreement

            	
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                                                                                        Term

                                                                                         

                                                                                      	
                                                                                        Meaning

                                                                                      
	 	 
	
                                                                                        Initial
      Transaction Costs

                                                                                      	1 	all
      Taxes and registration fees payable on or with respect to the Transaction
      Documents;
	 	 	 
	 
      	
                                                                                        2

                                                                                      	
                                                                                        the
      arrangement fee described in clause 16.1;

                                                                                      
	 	 	 
	 
      	
                                                                                        3

                                                                                      	
                                                                                        the
      reasonable legal fees in relation to the preparation, negotiation and
      completion of the Transaction Documents and all related matters;
      and

                                                                                      
	 	 	 
	 
      	
                                                                                        4

                                                                                      	
                                                                                        all
      other fees, costs and expenses (including travel costs and other
      disbursements) of the Finance Parties.

                                                                                      
	 	 
	 	 
	
                                                                                        Inter-Company
      Claims

                                                                                      	
                                                                                        all
      debts and liabilities of each Group Member to any other Group Member on
      any account and in any capacity, irrespective of whether the debts and
      liabilities:

                                                                                      
	 	 	 
	 
      	
                                                                                        1

                                                                                      	
                                                                                        are
      present or future;

                                                                                      
	 	 	 
	 
      	
                                                                                        2

                                                                                      	
                                                                                        are
      actual, prospective, contingent or otherwise;

                                                                                      
	 	 	 
	 
      	
                                                                                        3

                                                                                      	
                                                                                        are
      at any time ascertained or unascertained;

                                                                                      
	 	 	 
	 
      	
                                                                                        4

                                                                                      	
                                                                                        are
      owed or incurred by or on account of a Group Member alone severally or
      jointly with another person;

                                                                                      
	 	 	 
	 
      	
                                                                                        5

                                                                                      	
                                                                                        are
      owed to or incurred for the account of a Group Member alone, or severally
      or jointly with another person;

                                                                                      
	 	 	 
	 
      	
                                                                                        6

                                                                                      	
                                                                                        are
      owed to another person as agent (whether disclosed or not) for or on
      behalf of a Group Member;

                                                                                      
	 	 	 
	 
      	
                                                                                        7

                                                                                      	
                                                                                        are
      owed or incurred as principal, interest, fees, charges, taxes, duties or
      other imposts, damages (whether for breach of contract or tort or incurred
      on another ground), losses, costs or expenses, or on any other
      account;

                                                                                      
	 	 	 
	 
      	
                                                                                        8

                                                                                      	
                                                                                        are
      owed to or incurred for the account of a Group Member before or after the
      date of this agreement; or

                                                                                      
	 	 	 
	 
      	
                                                                                        9

                                                                                      	
                                                                                        comprise
      a combination of the above.

                                                                                      
	 	 
	 	 
	
                                                                                        Interest
      Conversion Amount

                                                                                      	
                                                                                        with
      respect to a Conversion under clause 7.1, the C$ Equivalent Amount of
      interest which the Borrower has elected to capitalise on the relevant
      Quarterly Date to which that Conversion relates and which is to be
      Converted under that clause.

                                                                                      
	 	 
	 	 
	
                                                                                        Interest
      Payment Date

                                                                                      	
                                                                                        the
      last day of each Interest Period.

                                                                                      
	 	 
	 	 
	
                                                                                        Interest
      Period

                                                                                      	
                                                                                        a
      period selected or determined under clause 4.4.

                                                                                      
	 	 	 
	 	 	 
	
                                                                                        Key
      Personnel

                                                                                      	
                                                                                        1

                                                                                      	
                                                                                        R.
      David Russell (President and Chief Executive Officer of the Borrower);
      and

                                                                                      
	 	 	 
	 
      	
                                                                                        2

                                                                                      	
                                                                                        Melvyn
      Williams (Chief Financial Officer; Senior Vice President - Finance and
      Corporate Development of the Borrower).

                                                                                      
	 	 
	 	 
	
                                                                                        Lease

                                                                                      	
                                                                                        a
      lease, sale lease-back, synthetic lease or any other agreement under which
      any property is or may be used or operated by a person other than the
      owner.

                                                                                      
	 	 

                                                                              

                                                                            

                                                                          

                                                                        

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      	
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      Facility Agreement

            	
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      10

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      
         

        
          	 	
                   

                

        

         

      

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              	
                                                      Term

                                                       

                                                    	
                                                      Meaning

                                                    
	 
      	 
      
	
                                                      Lending
      Office

                                                    	
                                                      In respect of a Financier, the
      office of that Financier set out opposite its name in Schedule 1
      or any other office
      notified by that Financier under this agreement.

                                                    
	 
      	 
      
	
                                                      LIBOR01
      Page

                                                    	
                                                      the
      page entitled “LIBOR01” on the Reuters Monitor Money Rates Service or any
      other page which may replace the LIBOR01 page for the purpose of
      displaying offered rates for United States Dollar
  deposits.

                                                    
	 
      	 
      
	 	 
	
                                                      LIBOR

                                                    	
                                                      in
      relation to an Interest Period for a Funding Portion, the rate per cent
      per annum determined by the Agent to be:

                                                    
	 
      	 
      
	 
      	
                                                      1

                                                    	
                                                      the
      average of the rates quoted on the LIBOR01 Page as being the rate per
      annum at which United States Dollar deposits are offered for a period
      equivalent to the Interest Period at about 11.00 am (London time) on the
      Value Date, eliminating the highest and lowest rates and rounding up the
      resultant figure to 4 decimal places;

                                                    
	 
      	 
      	 
      
	 
      	
                                                      2

                                                    	
                                                      where
      2 or fewer rates are quoted for the relevant period on the LIBOR01 Page at
      the relevant time, the average of the rates notified to the Agent by each
      Reference Bank to be the rate per annum at which United States Dollar
      deposits are offered to that Reference Bank for a period equivalent to the
      Interest Period at about 11.00 am (London time) on the Value Date,
      rounding up the resultant figure to 4 decimal places;
or

                                                    
	 
      	 
      	 
      
	 
      	
                                                      3

                                                    	
                                                      if
      LIBOR cannot be determined in accordance with paragraphs 1 or 2 of this
      definition, the rate most nearly approximating the rate that would
      otherwise have been calculated by the Agent in accordance with paragraphs
      1 or 2 having regard to comparable indices then available in the financial
      markets.

                                                    
	 
      	 
      	 
      
	 	 
	
                                                      LIBOR
      Business Day

                                                    	
                                                      a
      day on which banks are open for business in Toronto, London and New York
      excluding a Saturday, Sunday or public holiday.

                                                    
	 
      	 
      
	 	 
	
                                                      Listing
      Rules

                                                    	
                                                      the
      listing rules of the TSX and the AMEX together with any agreement between
      the Borrower and the TSX and any agreement between the Borrower and the
      AMEX in connection with the listing of the Shares or the
      Warrants.

                                                    
	 
      	 
      
	 	 
	
                                                      Loss

                                                    	
                                                      any
      claim, action, damage, loss, liability, cost, charge, expense, outgoing or
      payment.

                                                    
	 
      	 
      
	 	 
	
                                                      Margin

                                                    	
                                                      10.00%
      per annum.

                                                    
	 
      	 
      
	 	 	 
	
                                                      Marketable
      Securities

                                                    	
                                                      1

                                                    	
                                                      debentures,
      stocks, shares or bonds of any government, of any local Government Agency,
      or of any body corporate, association or society, and includes any right
      or option in respect of shares in any body corporate;

                                                    
	 
      	 
      	 
      
	 
      	
                                                      2

                                                    	
                                                      any
      unit (whatever called) in a trust estate which represents a legal or
      beneficial interest in any of the income or assets of a trust estate and
      includes, but is not limited to, any option to acquire any unit as
      described in this paragraph 2;

                                                    
	 	 	 

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

      
        	
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                                                  Term

                                                   

                                                	
                                                  Meaning

                                                
	 
      	 
      
	 
      	
                                                  3

                                                	
                                                  any
      option or right in respect of an unissued share;

                                                
	 
      	 
      	 
      
	 
      	
                                                  4

                                                	
                                                  any
      convertible note; and

                                                
	 
      	 
      	 
      
	 
      	
                                                  5

                                                	
                                                  any
      instrument or security which is a combination of any of the
      above.

                                                
	 
      	 
      	 
      
	 	 
	
                                                  Market
      Disruption Event

                                                	
                                                  any event specified in clause
      11.

                                                
	 
      	 
      
	 	 
	
                                                  Material
      Adverse Effect

                                                	
                                                  a
      material adverse effect on:

                                                
	 
      	 
      
	 
      	
                                                  1

                                                	
                                                  any
      Transaction Party’s ability to perform any of its obligations under any
      Transaction Document;

                                                
	 
      	 
      	 
      
	 
      	
                                                  2

                                                	
                                                  the
      rights of the Finance Parties under, or the enforceability of, a
      Transaction Document;

                                                
	 
      	 
      	 
      
	 
      	
                                                  3

                                                	
                                                  the
      assets, business or operations of the Borrower (including the Project and
      the Project Assets); or

                                                
	 
      	 
      	 
      
	 
      	
                                                  4

                                                	
                                                  the
      assets, business or operations of the Transaction Parties on a
      consolidated basis.

                                                
	 
      	 
      	 
      
	 	 
	
                                                  Material
      Agreement

                                                	
                                                  an
      agreement to which a Transaction Party is a party, that is, in the
      reasonable opinion of the Financiers, material to the development,
      construction, ramp-up or operation of the Project.

                                                
	 
      	 
      
	 	 
	
                                                  Mazuma
      Master Lease Agreement

                                                	
                                                  the
      Mazuma Master Lease Agreement dated 6 October 2008 between Mazuma Capital
      Corp and the Borrower.

                                                
	 
      	 
      
	 	 	 
	
                                                  Mining
      Rights

                                                	
                                                  1

                                                	
                                                  all
      entitlements of the Borrower or any other Transaction Party under the
      provisions of the Mining Law to conduct exploration or mining activities
      in any part of the Project Area;

                                                
	 
      	 
      	 
      
	 
      	
                                                  2

                                                	
                                                  any
      present or future interest from time to time held by or on behalf of the
      Borrower or any Transaction Party in any present or future right
      (including, without limitation, water rights), mining lease, mining
      concession, profit-a-prendre, joint venture, mining licence, mining claim
      (including without limitation the Unpatented Mining Claims), permit,
      rights-of-way, rights of access, inurements or other authority which
      confers or may confer a right to prospect or explore for or mine any
      minerals or ores in any part of the Project Area;

                                                
	 
      	 
      	 
      
	 
      	
                                                  3

                                                	
                                                  any
      present or future renewal, extension, modification, substitution,
      amalgamation or variation of any of the mining rights described above
      (whether extending over the same or a greater or lesser
    area);

                                                
	 
      	 
      	 
      
	 
      	
                                                  4

                                                	
                                                  any
      present or future application for or an interest in any of the above which
      confers or which, when operated, will confer the same or similar rights in
      relation to the Project; and

                                                
	 
      	 
      	 
      
	 
      	
                                                  5

                                                	
                                                  any
      other present or future interest held by or on behalf of the Borrower or
      any Transaction Party in minerals, ores and mines, whether on or under
      land, necessary for the Borrower to construct, develop or operate the
      Project.

                                                
	 
      	 
      	 
      
	 	 
	
                                                  Mining
      Law

                                                	
                                                  any
      law, including the relevant laws of Ontario or otherwise, whether or not
      deriving from statute, concerning the acquisition by any allowed means of
      interests in public lands or private lands for the purpose of conducting
      mining exploration, mine development, mining operations, reclamation and
      related operations on that land, together with the rights necessary to
      conduct those activities, including but not limited to laws relating to
      public land use, development, conservation of natural or cultural
      resources and resource allocation and includes any laws concerning
      permits, licences and authorisations required to be received before
      conducting any of those activities and includes any and all rules,
      regulations or ordinances promulgated under or in respect of those
      laws.

                                                
	 	 

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

      
        	
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                                                  Term

                                                   

                                                	
                                                  Meaning

                                                
	 
      	 
      
	
                                                  Model
      Services Agreement

                                                	
                                                  the
      model services agreement dated 28 November 2008 between the Borrower and
      GBM Minerals Engineering Consultants Limited.

                                                
	 
      	 
      
	 	 
	
                                                  Montana
      Tunnels Facility Agreement

                                                	
                                                  the
      facility agreement dated 12 October 2007 between Montana Tunnels Mining,
      Inc., AGI, the Borrower, RMB Australia Holdings Limited and RMB Resources
      Inc., as amended, restated or modified from time to
  time.

                                                
	 
      	 
      
	 	 
	
                                                  Mortgage

                                                	
                                                  collectively,
      one or more charges/mortgages of land dated on or about or after the date
      of, and relating to, this agreement between the Security Agent and the
      Borrower.

                                                
	 
      	 
      
	 	 	 
	
                                                  Officer

                                                	
                                                  1

                                                	
                                                  in
      relation to a Transaction Party, a director, secretary, chief executive
      officer, chief financial officer, president or vice president or a person
      notified to be an authorised officer, of the Transaction Party;
      or

                                                
	 
      	 
      	 
      
	 
      	
                                                  2

                                                	
                                                  in
      relation to a Finance Party, a director, secretary or any person whose
      title includes the word ‘Director’, ‘Managing Director’, ‘Manager’,
      ‘President’ or ‘Vice President’, and any other person appointed by that
      Finance Party to act as its authorised officer for the purposes of this
      agreement.

                                                
	 
      	 
      	 
      
	 	 
	
                                                  Ontario
      Securities Law

                                                	
                                                  all
      applicable securities laws in the province of Ontario, Canada and the
      respective regulations and rules under those laws together with applicable
      published policy statements of the securities regulatory authorities in
      Ontario, Canada.

                                                
	 
      	 
      
	 	 
	
                                                  Open
      Pit Stripping Contract 

                                                  Agreement

                                                	
                                                  the
      Open Pit Stripping Contract Agreement dated 22 October 2008 between Leo
      Alarie and Sons Construction Ltd and the Borrower.

                                                
	 
      	 
      
	 	 
	
                                                  Overdue
      Rate

                                                	
                                                  the
      aggregate of:

                                                
	 
      	 
      
	 
      	
                                                  1

                                                	
                                                  the
      Margin applying to Funding Portions; and

                                                
	 
      	 
      	 
      
	 
      	
                                                  2

                                                	
                                                  LIBOR on the relevant date on
      which the Overdue Rate is calculated under clause 17, as determined by the Agent in
      accordance with the definition of LIBOR in this clause 1.1 except that in making the
      determination all references in that definition
  to:

                                                
	 
      	 
      	 
      
	 
      	
                                                  ·

                                                	
                                                  “Interest
      Period” are references to a period of 30 days;

                                                
	 
      	 
      	 
      
	 
      	
                                                  ·

                                                	
                                                  “Value
      Date” are to the relevant date on which the Overdue Rate is calculated
      under clause 17; and

                                                
	 	 	 

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

      
        	
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                                              Term

                                               

                                            	
                                              Meaning

                                            
	 
      	 
      
	 
      	
                                              ·

                                            	
                                              “Funding
      Portion” are to the relevant overdue amount,

                                               

                                              or,
      if clause 11 applies, the rate determined under clause
      11.1(a)(2).

                                            
	 
      	 
      	 
      
	 	 
	
                                              Payment
      Currency

                                            	
                                              the
      currency in which any payment is actually made.

                                            
	 
      	 
      
	 	 
	
                                              Permitted
      Encumbrance

                                            	
                                              each
      Encumbrance listed in Schedule 8.

                                            
	 
      	 
      
	 	 
	
                                              Permitted
      Financial Accommodation

                                            	
                                              any
      financial accommodation or any Surety Obligation provided by a Transaction
      Party in respect of financial accommodation:

                                            
	 
      	 
      
	 
      	
                                              1

                                            	
                                              under
      the Transaction Documents;

                                            
	 
      	 
      	 
      
	 
      	
                                              2

                                            	
                                              in
      the ordinary course of business up to a maximum aggregate amount for all
      Transaction Parties of US$250,000;

                                            
	 
      	 
      	 
      
	 
      	
                                              3

                                            	
                                              which
      can be characterised as an Inter-Company Claim;

                                            
	 
      	 
      	 
      
	 
      	
                                              4

                                            	
                                              in
      connection with the Montana Tunnels Facility Agreement;
  or

                                            
	 
      	 
      	 
      
	 
      	
                                              5

                                            	
                                              with
      the Agent’s prior written consent.

                                            
	 
      	 
      	 
      
	 	 	 
	
                                              Permitted
      Financial Indebtedness

                                            	
                                              1

                                            	
                                              any
      liability of a Transaction Party under any agreement entered into in the
      ordinary course of business for the acquisition of any asset or service
      where payment for the asset or service is deferred for a period of not
      more than 90 days;

                                            
	 
      	 
      	 
      
	 
      	
                                              2

                                            	
                                              any
      Financial Indebtedness incurred or permitted to be incurred under any
      Transaction Document;

                                            
	 
      	 
      	 
      
	 
      	
                                              3

                                            	
                                              any
      Inter-Company Claims;

                                            
	 
      	 
      	 
      
	 
      	
                                              4

                                            	
                                              Financial
      Indebtedness incurred in connection with the Montana Tunnels Facility
      Agreement;

                                            
	 
      	 
      	 
      
	 
      	
                                              5

                                            	
                                              Financial
      Indebtedness incurred in connection with each Convertible
      Debenture;

                                            
	 
      	 
      	 
      
	 
      	
                                              6

                                            	
                                              subject
      to clause 10.14(b), Financial Indebtedness incurred in connection with
      capital equipment leases to be entered into by APG in respect of the
      Project, up to an aggregate amount of all capital equipment leases of
      US$12,000,000;

                                            
	 
      	 
      	 
      
	 
      	
                                              7

                                            	
                                              Financial
      Indebtedness incurred in connection with operating leases to be entered
      into by APG in respect of the Project, up to an aggregate amount of all
      operating leases of US$1,000,000;

                                            
	 
      	 
      	 
      
	 
      	
                                              8

                                            	
                                              Financial
      Indebtedness incurred in connection with the margin loan, with a balance
      of US$900,000, which is secured by auction rate securities, as described
      in the Borrower’s quarterly report on form 10-Q filed with the U.S.
      Securities and Exchange Commission for the calendar quarter ending 30
      September 2008; or

                                            
	 
      	 
      	 
      
	 
      	
                                              9

                                            	
                                              any
      other Financial Indebtedness approved by the Agent.

                                            
	 
      	 
      	 
      
	 	 
	
                                              Person

                                            	
                                              an
      individual, corporation, limited liability company, partnership,
      association, trust or unincorporated organization, or a government or any
      agency, division, department, or political subdivision a
      government.

                                            
	 	 

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

      
        	
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                                                              Term

                                                               

                                                            	
                                                              Meaning

                                                            
	 
      	 
      
	
                                                              Pollutant

                                                            	
                                                              a
      pollutant, contaminant, dangerous, toxic or hazardous substance, petroleum
      or petroleum product, chemical, solid, special liquid, industrial or other
      waste.

                                                            
	 	 
	 
      	 
      
	
                                                              Potential
      Event of Default

                                                            	
                                                              any
      thing which would become an Event of Default on the giving of notice
      (whether or not notice is actually given), the expiry of time, the
      satisfaction or non-satisfaction of any condition, or any combination of
      the above.

                                                            
	 
      	 
      
	 	 
	
                                                              Power

                                                            	
                                                              any
      right, power, authority, discretion or remedy conferred on a Finance
      Party, a Receiver or an Attorney by any Transaction Document or any
      applicable law.

                                                            
	 
      	 
      
	 	 
	
                                                              Power
      Supply Agreement

                                                            	
                                                              the
      Power Supply Agreement to be entered into by the Borrower in respect of
      supplying power to the Project.

                                                            
	 
      	 
      
	 	 
	
                                                              Principal
      Outstanding

                                                            	
                                                              at
      any time, the sum of the outstanding Funding Portion drawn under the
      Facility at that time.

                                                            
	 
      	 
      
	 	 
	
                                                              Proceeds
      Accounts

                                                            	
                                                              each
      account established under clause 12.1(a).

                                                            
	 
      	 
      
	 	 
	
                                                              Product

                                                            	
                                                              the
      present and future right, title and interest of a Transaction Party in and
      to all gold (including without limitation, gold bearing material, dore
      bullion and refined gold), and other metals a nd minerals mined,
      extracted, and derived from the Project Area and the
    Project.

                                                            
	 
      	 
      
	 	 
	
                                                              Project

                                                            	
                                                              the
      project known as the Black Fox Project located in northern Ontario,
      Canada, which includes without limitation the Project
  Area.

                                                            
	 
      	 
      
	 	 	 
	
                                                              Project
      Area

                                                            	
                                                              1

                                                            	
                                                              the
      real property described in Schedule 9; and

                                                            
	 
      	 
      	 
      
	 
      	
                                                              2

                                                            	
                                                              the
      Unpatented Mining Claims and all real property to which they
      relate.

                                                            
	 
      	 
      	 
      
	 	 
	
                                                              Project
      Assets

                                                            	
                                                              all
      the right, title and interest both present and future of any Transaction
      Party which is attributable to the Project and includes all the right,
      title and interest both present and future of a Transaction Party in, to,
      under or derived from:

                                                            
	 
      	 
      
	 
      	
                                                              1

                                                            	
                                                              the
      Mining Rights;

                                                            
	 
      	 
      	 
      
	 
      	
                                                              2

                                                            	
                                                              the
      Product;

                                                            
	 
      	 
      	 
      
	 
      	
                                                              3

                                                            	
                                                              the
      Project Area, including any title to or interest in land in the Project
      Area now or at a later time held by a Transaction
Party;

                                                            
	 	 	 

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

      
        	
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                                    Term

                                     

                                  	
                                    Meaning

                                  
	 
      	 
      
	 
      	
                                    4

                                  	
                                    Authorisations
      in relation to the Project;

                                  
	 
      	 
      	 
      
	 
      	
                                    5

                                  	
                                    the
      Project Documents and any other contract, agreement, permit, lease,
      licence, consent, easement, right of way and other rights or interests in
      land, which relate to the construction, operation or maintenance of the
      Project, or to the mining production, transportation, storage, treatment,
      processing or marketing of the Product;

                                  
	 
      	 
      	 
      
	 
      	
                                    6

                                  	
                                    all
      exploration and mining information, documents, maps, reports, records,
      studies and other written data, including all data stored on magnetic
      tapes, disks or diskettes or any other computer storage media, relating to
      geological, geochemical and geophysical work, feasibility studies and
      other operations conducted with respect to the Project
    Area;

                                  
	 
      	 
      	 
      
	 
      	
                                    7

                                  	
                                    all
      buildings, improvements, structures, systems, fixtures, plant, machinery,
      equipment, tools and other personal property at any time used or intended
      for use in connection with or incidental to the exploration, mining,
      storage, transporting and processing of Product, and all associated
      facilities and infrastructure (including any treatment or processing
      plant); and

                                  
	 
      	 
      	 
      
	 
      	
                                    8

                                  	
                                    every
      contract for the use by any third party of any of the assets described in
      paragraphs 1 to 7 inclusive.

                                  
	 	 	 
	 
      	 
      	 
      
	
                                    Project
      Costs

                                  	
                                    the
      capital costs of planning, design, construction, development and
      commissioning in respect of the Project.

                                  
	 
      	 
      
	 	 	 
	
                                    Project
      Documents

                                  	
                                    1

                                  	
                                    Model
      Services Agreement;

                                  
	 
      	 
      	 
      
	 
      	
                                    2

                                  	
                                    each
      Genivar Agreement;

                                  
	 
      	 
      	 
      
	 
      	
                                    3

                                  	
                                    Open
      Pit Stripping Contract Agreement;

                                  
	 
      	 
      	 
      
	 
      	
                                    4

                                  	
                                    Holding
      Pond Contract Agreement;

                                  
	 
      	 
      	 
      
	 
      	
                                    5

                                  	
                                    Mazuma
      Master Lease Agreement;

                                  
	 
      	 
      	 
      
	 
      	
                                    6

                                  	
                                    Caterpillar
      Master Lease Agreement;

                                  
	 
      	 
      	 
      
	 
      	
                                    7

                                  	
                                    Transportation
      Agreement;

                                  
	 
      	 
      	 
      
	 
      	
                                    8

                                  	
                                    Power
      Supply Agreement;

                                  
	 
      	 
      	 
      
	 
      	
                                    9

                                  	
                                    each
      Refining Agreement;

                                  
	 
      	 
      	 
      
	 
      	
                                    10

                                  	
                                    the
      Civil and Earthworks Contract;

                                  
	 
      	 
      	 
      
	 
      	
                                    11

                                  	
                                    all
      instruments and indicia of title to the Mining Rights and all other
      documentation and agreements under which the Borrower derives the right to
      conduct mining or exploration for Product;

                                  
	 
      	 
      	 
      
	 
      	
                                    12

                                  	
                                    each
      other Material Agreement;

                                  
	 
      	 
      	 
      
	 
      	
                                    13

                                  	
                                    any
      other document executed from time to time by any person in respect of the
      documents described in paragraphs 1 to 12 inclusive or which is
      collateral, supplementary or related to those documents;
    and

                                  
	 
      	 
      	 
      
	 
      	
                                    14

                                  	
                                    any
      other document that the Agent and the Borrower agree in writing to be a
      Project Document.

                                  
	 
      	 
      	 
      
	 
      	
                                    For
      the avoidance of doubt a reference to a “Project Document” or “Document”
      in this definition does not, at a particular time, include a document
      described in the paragraphs above that has not been entered into at that
      time.

                                  
	 	 

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

      
        	
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                                                                      Term

                                                                       

                                                                    	
                                                                      Meaning

                                                                    
	 
      	 
      
	
                                                                      Project
      Facility

                                                                    	
                                                                      any
      facility or other financing arrangement, including any equity or
      quasi-equity arrangement, entered into between the Borrower and the
      Finance Parties or other lenders for the development of the Project. For
      the avoidance of doubt, ‘Project Facility’ does not include this
      agreement.

                                                                    
	 	 
	 
      	 
      
	
                                                                      Pro
      Rata Share

                                                                    	
                                                                      in
      respect of a Financier, the Commitment of that Financier expressed as a
      percentage of the total Commitment.

                                                                    
	 	 
	 
      	 
      
	
                                                                      Proved
      Reserves and

                                                                      Probable
      Reserves

                                                                    	
                                                                      “Proved
      Ore Reserves” and “Probable Ore Reserves” as construed, reported and
      calculated in accordance with the Canadian Institute of Mining (CIM)
      Definitions Standards on Mineral Resources and Mineral Reserves adopted by
      the CIM Council on 14 November 2004 and included by reference in Canadian
      National Instrument 43-101 (as amended from time to
  time).

                                                                    
	 	 
	 
      	 
      
	
                                                                      Quarter

                                                                    	
                                                                      the
      period of 3 months preceding a Quarterly Date.

                                                                    
	 	 
	 
      	 
      
	
                                                                      Quarterly
      Date

                                                                    	
                                                                      each
      of 31 December, 31 March, 30 June and 30 September each
    year.

                                                                    
	 	 
	 
      	 
      
	
                                                                      Receiver

                                                                    	
                                                                      a
      receiver or receiver and manager appointed under a Security, or a person
      acting in an equivalent role.

                                                                    
	 	 
	 
      	 
      
	
                                                                      Reference
      Banks

                                                                    	
                                                                      1

                                                                    	
                                                                      the
      principal London offices of Barclays Bank plc, JP Morgan Chase & Co.
      and National Westminster Bank plc; or

                                                                    
	 
      	 
      	 
      
	 
      	
                                                                      2

                                                                    	
                                                                      other
      banks as the Agent and the Borrower may agree.

                                                                    
	 
      	 
      	 
      
	 	 	 
	
                                                                      Refining
      Agreement

                                                                    	
                                                                      any
      agreement entered into for the refining or treatment of Product, including
      any contract, agreement or arrangement for the sale, transfer or other
      disposal of Product, or any contract, agreement or arrangement for any
      agency for sale, exchange, transfer or other disposal, of Product
      including any sale arrangements between Transaction
    Parties.

                                                                    
	 	 
	 
      	 
      
	
                                                                      Relevant
      Currency

                                                                    	
                                                                      the
      currency in which a payment is required to be made under the Transaction
      Documents and, if not expressly stated to be another currency, is United
      States Dollars.

                                                                    
	 	 
	 
      	 
      
	
                                                                      Repayment
      Date

                                                                    	
                                                                      the
      earlier of 30 June 2009 and the date of the first drawing under the
      Project Facility, or any other date determined to be the Repayment Date in
      accordance with this agreement.

                                                                    
	 	 
	 
      	 
      
	
                                                                      Retiring
      Financier

                                                                    	
                                                                      a
      Financier which substitutes a Substitute Financier under clause 19.3 for
      any of its Commitment.

                                                                    
	 	 

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

      
        	
                Bridge
      Facility Agreement

              	
                page
      17

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
         

        
          	 	
                   

                

        

         

      

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                      
                                                                        
                                                                          
                                                                            
                                                                              
                                                                                
                                                                                  
                                                                                    
                                                                                      
                                                                                        
                                                                                          
                                                                                            
                                                                                              
                                                                                                
                                                                                                  
                                                                                                    
                                                                                                      
                                                                                                        
                                                                                                          
                                                                                                            
                                                                                                              
                                                                                                                
                                                                                                                  
                                                                                                                    
                                                                                                                      
                                                                                                                        
                                                                                                                          
                                                                                                                            
                                                                                                                              
                                                                                                                                
                                                                                                                                  
                                                                                                                                    
                                                                                                                                      
                                                                                                                                        
                                                                                                                                          
                                                                                                                                            
                                                                                                                                              
                                                                                                                                                
                                                                                                                                                  
                                                                                                                                                    
                                                                                                                                                      
                                                                                                                                                        
                                                                                                                                                          
                                                                                                                                                            
                                                                                                                                                              	
                                                                                                                                                                      Term

                                                                                                                                                                       

                                                                                                                                                                    	
                                                                                                                                                                      Meaning

                                                                                                                                                                    
	 
      	 
      
	
                                                                                                                                                                      Review
      Event

                                                                                                                                                                    	
                                                                                                                                                                      an
      event described in clause 13.5(a).

                                                                                                                                                                    
	 	 
	 
      	 
      
	
                                                                                                                                                                      Sales
      Proceeds

                                                                                                                                                                    	
                                                                                                                                                                      moneys
      received from the sale of Product, including moneys received under any
      Refining Agreement.

                                                                                                                                                                    
	 	 
	 
      	 
      
	
                                                                                                                                                                      Same
      Day Funds

                                                                                                                                                                    	
                                                                                                                                                                      immediately
      available and freely transferable funds.

                                                                                                                                                                    
	 	 
	 
      	 
      
	
                                                                                                                                                                      Secured
      Moneys

                                                                                                                                                                    	
                                                                                                                                                                      all
      debts and monetary liabilities of each Transaction Party to the Finance
      Parties under or in relation to any Transaction Document and in any
      capacity, irrespective of whether the debts or
  liabilities:

                                                                                                                                                                    
	 
      	 
      
	 
      	
                                                                                                                                                                      1

                                                                                                                                                                    	
                                                                                                                                                                      are
      present or future;

                                                                                                                                                                    
	 
      	 
      	 
      
	 
      	
                                                                                                                                                                      2

                                                                                                                                                                    	
                                                                                                                                                                      are
      actual, prospective, contingent or otherwise;

                                                                                                                                                                    
	 
      	 
      	 
      
	 
      	
                                                                                                                                                                      3

                                                                                                                                                                    	
                                                                                                                                                                      are
      at any time ascertained or unascertained;

                                                                                                                                                                    
	 
      	 
      	 
      
	 
      	
                                                                                                                                                                      4

                                                                                                                                                                    	
                                                                                                                                                                      are
      owed or incurred by or on account of any Transaction Party alone, or
      severally or jointly with any other person;

                                                                                                                                                                    
	 
      	 
      	 
      
	 
      	
                                                                                                                                                                      5

                                                                                                                                                                    	
                                                                                                                                                                      are
      owed to or incurred for the account of any Finance Party alone, or
      severally or jointly with any other person;

                                                                                                                                                                    
	 
      	 
      	 
      
	 
      	
                                                                                                                                                                      6

                                                                                                                                                                    	
                                                                                                                                                                      are
      owed to any other person as agent (whether disclosed or not) for or on
      behalf of any Finance Party;

                                                                                                                                                                    
	 
      	 
      	 
      
	 
      	
                                                                                                                                                                      7

                                                                                                                                                                    	
                                                                                                                                                                      are
      owed or incurred as principal, interest, fees, charges, Taxes, damages
      (whether for breach of contract or tort or incurred on any other ground),
      losses, costs or expenses, or on any other account;

                                                                                                                                                                    
	 
      	 
      	 
      
	 
      	
                                                                                                                                                                      8

                                                                                                                                                                    	
                                                                                                                                                                      are
      owed to or incurred for the account of any Finance Party directly or as a
      result of:

                                                                                                                                                                    
	 
      	 
      	 
      
	 
      	 
      	
                                                                                                                                                                      ·

                                                                                                                                                                    	
                                                                                                                                                                      the
      assignment or transfer to any Finance Party of any debt or liability of
      any Transaction Party (whether by way of assignment, transfer or
      otherwise); or

                                                                                                                                                                    
	 
      	 
      	 
      	 
      
	 
      	 
      	
                                                                                                                                                                      ·

                                                                                                                                                                    	
                                                                                                                                                                      any
      other dealing with any such debt or liability;

                                                                                                                                                                    
	 
      	 
      	 
      	 
      
	 
      	
                                                                                                                                                                      9

                                                                                                                                                                    	
                                                                                                                                                                      are
      owed to or incurred for the account of a Finance Party before the date of
      this agreement or before the date of any assignment of this agreement to
      any Finance Party by any other person or otherwise; or

                                                                                                                                                                    
	 
      	 
      	 
      
	 
      	
                                                                                                                                                                      10

                                                                                                                                                                    	
                                                                                                                                                                      comprise
      any combination of the above.

                                                                                                                                                                    
	 
      	 
      	 
      
	 	 
	
                                                                                                                                                                      Secured
      Property

                                                                                                                                                                    	
                                                                                                                                                                      the
      property subject to a Security.

                                                                                                                                                                    
	 
      	 
      
	 	 
	
                                                                                                                                                                      Securities
      Laws

                                                                                                                                                                    	
                                                                                                                                                                      in
      respect of a Transaction Party, all securities, companies and corporations
      laws, together with all regulations, rules and policy statements under
      those laws, which are applicable to that Transaction
  Party.

                                                                                                                                                                    
	 
      	 
      
	 	 	 
	
                                                                                                                                                                      Security

                                                                                                                                                                    	
                                                                                                                                                                      1

                                                                                                                                                                    	
                                                                                                                                                                      each
      of the security documents described in Schedule 4; and

                                                                                                                                                                    
	 
      	 
      	 
      
	 
      	
                                                                                                                                                                      2

                                                                                                                                                                    	
                                                                                                                                                                      each
      Collateral Security, and Securities means all of
      them.

                                                                                                                                                                    
	 
      	 
      	 
      

                                                                                                                                                            

                                                                                                                                                          

                                                                                                                                                        

                                                                                                                                                      

                                                                                                                                                    

                                                                                                                                                  

                                                                                                                                                

                                                                                                                                              

                                                                                                                                            

                                                                                                                                          

                                                                                                                                        

                                                                                                                                      

                                                                                                                                    

                                                                                                                                  

                                                                                                                                

                                                                                                                              

                                                                                                                            

                                                                                                                          

                                                                                                                        

                                                                                                                      

                                                                                                                    

                                                                                                                  

                                                                                                                

                                                                                                              

                                                                                                            

                                                                                                          

                                                                                                        

                                                                                                      

                                                                                                    

                                                                                                  

                                                                                                

                                                                                              

                                                                                            

                                                                                          

                                                                                        

                                                                                      

                                                                                    

                                                                                  

                                                                                

                                                                              

                                                                            

                                                                          

                                                                        

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

      
         

        
          	
                  Bridge
      Facility Agreement

                	
                  page
      18

                

        

         

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                Term

                 

              	
                Meaning

              
	 
      

      

      
        
          	
                  Security
      Provider

                	
                  a
      person who has granted a Security.

                
	 
      	 
      
	 	 
	
                  Shares

                	
                  the
      fully paid common shares in the capital of the Borrower listed on the TSX
      and the AMEX.

                
	 
      	 
      
	 	 
	
                  Subsidiary

                	
                  an
      entity of which a person has direct or indirect Control or owns directly
      or indirectly more than 50% of the voting capital or similar right of
      ownership.

                
	 
      	 
      
	 	 
	
                  Substitute
      Financier

                	
                  a
      person substituted by a Financier under clause 19.3 for any of the
      Financier’s Commitment.

                
	 
      	 
      
	 	 
	
                  Surety
      Obligation

                	
                  any
      guarantee, suretyship, letter of credit, letter of comfort or any other
      obligation:

                
	 
      	 
      
	 
      	
                  1

                	
                  to
      provide funds (whether by the advance or payment of money, the purchase of
      or subscription for shares or other securities, the purchase of assets or
      services, or otherwise) for the payment or discharge
of;

                
	 
      	 
      	 
      
	 
      	
                  2

                	
                  to
      indemnify any person against the consequences of default in the payment
      of; or

                
	 
      	 
      	 
      
	 
      	
                  3

                	
                  to
      be responsible for,

                
	 
      	 
      	 
      
	 
      	
                  any
      debt or monetary liability of another person or the assumption of any
      responsibility or obligation in respect of the insolvency or the financial
      condition of any other person.

                
	 
      	 
      
	 	 	 
	
                  Tax

                	
                  1

                	
                  any
      tax, levy, charge, impost, duty, fee, deduction, compulsory loan or
      withholding including goods and services tax or other sales or use tax;
      or

                
	 
      	 
      	 
      
	 
      	
                  2

                	
                  any
      income, capital, stamp or transaction duty, tax or
  charge,

                
	 
      	 
      	 
      
	 
      	
                  which
      is assessed, levied, imposed or collected by any Government Agency and
      includes any interest, fine, penalty, charge, fee or other amount imposed
      on or in respect of any of the above, whether contested or
      not.

                
	 
      	 
      
	 	 
	
                  Title
      Document

                	
                  any
      original, duplicate or counterpart certificate or document of
      title.

                
	 
      	 
      
	 	 	 
	
                  Trading
      Period

                	
                  1

                	
                  for
      the purposes of determining the Current Market Price referred to in a
      Conversion Notice, means the period of 5 TSX Business Days ending on the
      TSX Business Day immediately preceding the Quarterly Date referred to in
      that Conversion Notice; and

                
	 
      	 
      	 
      
	 
      	
                  2

                	
                  for
      the purposes of determining the Warrant Exercise Price, means the period
      of 5 TSX Business Days ending on the TSX Business Day immediately
      preceding the date of this agreement.

                
	 	 	 

        

      

       

      
        	
                Bridge
      Facility Agreement

              	
                page
      19

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
         

        
          	 	
                   

                

        

         

      

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  	
                                                          Term

                                                           

                                                        	
                                                          Meaning

                                                        
	 
      	 
      
	
                                                          Transaction
      Document

                                                        	
                                                          1

                                                        	
                                                          this
      agreement;

                                                        
	 
      	 
      	 
      
	 
      	
                                                          2

                                                        	
                                                          each
      Security;

                                                        
	 
      	 
      	 
      
	 
      	
                                                          3

                                                        	
                                                          the
      deposit account control agreement between the Finance Parties, the
      Borrower and U.S. Bank National Association in relation to the Proceeds
      Accounts;

                                                        
	 
      	 
      	 
      
	 
      	
                                                          4

                                                        	
                                                          each
      Direct Agreement;

                                                        
	 
      	 
      	 
      
	 
      	
                                                          5

                                                        	
                                                          any
      document or agreement entered into or given under any of the above;
      and

                                                        
	 
      	 
      	 
      
	 
      	
                                                          6

                                                        	
                                                          any
      other document that the Agent and the Borrower agree in writing to be a
      Transaction Document.

                                                        
	 
      	 
      	 
      
	 	 	 
	
                                                          Transaction
      Party

                                                        	
                                                          1

                                                        	
                                                          the
      Borrower;

                                                        
	 
      	 
      	 
      
	 
      	
                                                          2

                                                        	
                                                          each
      Guarantor; and

                                                        
	 
      	 
      	 
      
	 
      	
                                                          3

                                                        	
                                                          any
      other person that the Borrower and the Agent agree is a Transaction
      Party.

                                                        
	 
      	 
      	 
      
	 	 
	
                                                          Transportation
      Agreement

                                                        	
                                                          the
      Transportation Agreement to be entered into by the Borrower in respect of
      the provision of transport services for the Project.

                                                        
	 
      	 
      
	 	 
	
                                                          TSX

                                                        	
                                                          the
      Toronto Stock Exchange.

                                                        
	 
      	 
      
	 	 
	
                                                          TSX
      Approval

                                                        	
                                                          the
      approval of the TSX in connection with the transactions contemplated in
      the Transaction Documents, including:

                                                        
	 
      	 
      
	 
      	
                                                          1

                                                        	
                                                          the
      provision of the Facility;

                                                        
	 
      	 
      	 
      
	 
      	
                                                          2

                                                        	
                                                          the
      issuance of Shares on Conversion;

                                                        
	 
      	 
      	 
      
	 
      	
                                                          3

                                                        	
                                                          the
      listing of the Shares required to be available for Conversion;
      and

                                                        
	 
      	 
      	 
      
	 
      	
                                                          4

                                                        	
                                                          the
      issuance and listing of Shares on the exercise of a
    Warrant.

                                                        
	 
      	 
      	 
      
	 	 
	
                                                          TSX
      Business Days

                                                        	
                                                          days
      on which trading of securities takes place on the TSX.

                                                        
	 
      	 
      
	 	 
	
                                                          Unpatented
      Mining Claims

                                                        	
                                                          the
      unpatented mining claims held by the Borrower and listed in Schedule
      11.

                                                        
	 
      	 
      
	 	 
	
                                                          US$
      and United States
      Dollars

                                                        	
                                                          the
      lawful currency of the United States of America.

                                                        
	 
      	 
      
	 	 
	
                                                          US
      Securities Law

                                                        	
                                                          all
      applicable securities laws in the United States of America and the
      respective regulations and rules under those laws together with applicable
      published policy statements of the securities regulatory authorities in
      the United States of America.

                                                        
	 	 

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

      
        	
                Bridge
      Facility Agreement

              	
                page
      20

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
         

        
          	 	
                   

                

        

         

      

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  	
                                          Term

                                           

                                        	
                                          Meaning

                                        
	 
      	 
      
	
                                          Value
      Date

                                        	
                                          the
      date 2 LIBOR Business Days before the first day of an Interest
      Period.

                                        
	 
      	 
      
	 	 
	
                                          Volume
      Weighted Average 

                                          Trading
      Price or VWATP

                                        	
                                          the
      price per Share calculated in accordance with clause
    7.3(b).

                                        
	 
      	 
      
	 	 
	
                                          Warrant
      Exercise Price

                                        	
                                          the
      lesser of:

                                        
	 
      	 
      
	 
      	
                                          1

                                        	
                                          25
      Canadian cents; and

                                        
	 
      	 
      	 
      
	 
      	
                                          2

                                        	
                                          135%
      of the Volume Weighted Average Trading Price of Shares traded on the TSX
      during the 5 consecutive TSX Business Days immediately preceding the date
      of this agreement.

                                        
	 
      	 
      	 
      
	 	 
	
                                          Warrant
      Share

                                        	
                                          each
      Share received by a Financier or a Financier’s Affiliate on the exercise
      of the Warrant.

                                        
	 
      	 
      
	 	 
	
                                          Warrants

                                        	
                                          the
      warrants to purchase Shares to be issued to a Financier or a Financier’s
      Affiliate in accordance with clause 8.1.

                                        
	 	 

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

      
        
        

      

      
        
          
            	
                    1.2

                  	
                    Interpretations

                  

          

        

      

       

      In this
agreement headings and bold type are for convenience only and do not affect the
interpretation of this agreement and, unless the context requires
otherwise:

       

      
        
          
            	
                    (a)

                  	
                    words indicating the
      singular include the plural and vice
      versa;

                  

          

        

      

      
        
          
            
              
                
                

              

            

          

        

      

       

      
        
          
            	
                    (b)

                  	
                    words indicating a
      gender include any
gender;

                  

          

        

      

      
        
          
          

        

      

       

      
        
          
            	
                    (c)

                  	
                    other
      parts of speech and grammatical forms of a word or phrase defined in this
      agreement have a corresponding
meaning;

                  

          

        

      

      
        
          
          

        

      

      

        
          
            	
                    (d)

                  	
                    an
      expression suggesting or referring to a natural person or an entity
      includes any company, partnership, joint venture, association, corporation
      or other body corporate and any Government
  Agency;

                  

          

        

      

      
        
          
          

        

      

       

      
        
          
            	
                    (e)

                  	
                    a
      reference to any thing (including any right) includes a part of that thing
      but nothing in this clause 1.2(e) implies that performance of part
      of an obligation constitutes performance of the
  obligation;

                  

          

        

      

      
        
          
          

        

      

       

      
        
          
            	
                    (f)

                  	
                    a
      reference to a clause, party, annexure, exhibit or schedule is a reference
      to a clause of, and a party, annexure, exhibit and schedule to, this
      agreement and a reference to this agreement includes any annexure, exhibit
      and schedule;

                  

          

        

      

      
        
          
          

        

      

       

      
        
          
            	
                    (g)

                  	
                    a
      reference to a statute, regulation, proclamation, ordinance or by-law
      includes all statutes, regulations, proclamations, ordinances or by-laws
      amending, consolidating or replacing it, whether passed by the same or
      another Government Agency with legal power to do so, and a reference to a
      statute includes all regulations, proclamations, ordinances and by-laws
      issued under that
statute;

                  

          

        

      

      
        
          
          

        

      

       

      
        
          
            	
                    (h)

                  	
                    a
      reference to a document includes all amendments or supplements to, or
      replacements or novations of, that
document;

                  

          

        

      

      
        
          
          

        

      

       

      
        
          
            	
                    (i)

                  	
                    a
      reference to liquidation includes official management, appointment of an
      administrator, compromise, arrangement, merger, amalgamation,
      reconstruction, winding up, dissolution, deregistration, assignment for
      the benefit of creditors, scheme, composition or arrangement with
      creditors, insolvency, bankruptcy, or a similar procedure or, where
      applicable, changes in the constitution of any partnership or person, or
      death;

                  

          

        

      

      
        
          
          

        

      

      
         

        
          	
                  Bridge
      Facility Agreement

                	
                  page
      21

                

        

         

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

    

    
      
      

       

      
        	 	
                 

              

      

       

      
        	
                (j)

              	
                a
      reference to a party to any document includes that party’s successors and
      permitted assigns;

              

      

       

      
        	
                (k)

              	
                a
      reference to an agreement other than this agreement includes an
      undertaking, agreement or legally enforceable arrangement or understanding
      whether or not in writing;

              

      

       

      
        	
                (l)

              	
                a
      reference to an asset includes all property of any nature, including a
      business, and all rights, revenues and
benefits;

              

      

       

      
        	
                (m)

              	
                a
      reference to a document includes any agreement in writing, or any
      certificate, notice, agreement, instrument or other document of any
      kind;

              

      

       

      
        	
                (n)

              	
                no
      provision of this agreement may be construed adversely to a party solely
      on the ground that the party was responsible for the preparation of this
      agreement or that provision;

              

      

       

      
        	
                (o)

              	
                a
      reference to a body, other than a party to this agreement (including an
      institute, association or authority), whether statutory or
      not:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                which
      ceases to exist; or

              

      

       

      
        	
                 
      

              	
                (2)

              	
                whose
      powers or functions are transferred to another
  body,

              

      

       

      is a
reference to the body which replaces it or which substantially succeeds to its
powers or functions; and

       

      
        	
                (p)

              	
                references
      to time and dates are references to time and dates in Denver,
      Colorado.

              

      

       

      
        	
                1.3

              	
                Inclusive
      expressions

              

      

       

      Specifying
anything in this agreement after the words “include” or “for example” or similar
expressions does not limit what else is included unless there is express wording
to the contrary.

       

      
        	
                1.4

              	
                Business
      Day

              

      

       

      Except
where clause 6.2 applies, where the day on or by which any thing is to be
done is not a Business Day, that thing must be done on or by the preceding
Business Day.

       

      
        	
                1.5

              	
                Accounting
      Standards

              

      

       

      Unless
there is express wording to the contrary, any accounting practice or concept
relevant to this agreement is to be construed or determined in accordance with
the Accounting Standards.

       

      
        
          	
                  2

                	
                  Conditions
      precedent

                

        

        
          
            

          

        

      

       

      
        	
                2.1

              	
                Conditions
      precedent to the Funding Portion

              

      

       

      A
Financier is not obliged to provide the Commitment or its Pro Rata Share of the
Funding Portion until the Agent has received all of the following in form and of
substance satisfactory to the Financiers:

       

      
        	
                (a)

              	
                officer’s certificate:
      an officer’s certificate in the form of Schedule 5 given in respect of
      each Transaction Party and dated no more than 5 Business Days before
      the Funding Date;

              

      

      
         

        
          
            
              
                	
                        Bridge Facility
      Agreement

                      	
                        Page
    22

                      

              

            

          

        

         

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	 	
                 

              

      

       

      
        	
                (b)

              	
                Transaction Documents:
      originals of each Transaction Document, other than each Direct Agreement,
      duly executed by all parties to them other than the Finance Parties and,
      where applicable:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                with
      evidence satisfactory to the Agent that all Taxes applicable to the
      Transaction Documents have been or will be duly paid;
  and

              

      

       

      
        	
                 
      

              	
                (2)

              	
                subject
      to clause 10.29, in registrable form together with all executed documents
      necessary to register them;

              

      

       

      
        	
                (c)

              	
                Direct Agreements:
      original of each Direct Agreement that has been executed, duly executed by
      all parties to them other than the Finance Parties and, where applicable,
      with evidence satisfactory to the Agent that all Taxes applicable to the
      Direct Agreements have been or will be duly
  paid;

              

      

       

      
        	
                (d)

              	
                Project Documents:
      copies of each Project Document that has been executed, showing due
      execution by all parties to them;

              

      

       

      
        	
                (e)

              	
                Corporate Budget: a copy
      of the Corporate Budget initialled by the Borrower and the Agent for
      identification purposes;

              

      

       

      
        	
                (f)

              	
                Financial Reports: a
      copy of:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                the
      audited consolidated Financial Report of the Borrower and each Subsidiary
      for the financial year ending 31 December 2007;
  and

              

      

       

      
        	
                 
      

              	
                (2)

              	
                the
      unaudited quarterly Financial Reports of the Borrower for the Quarter
      ending 30 September 2008;

              

      

       

      
        	
                (g)

              	
                Cashflow Model: a copy
      of the Cashflow Model which incorporates a life of mine plan, initialled
      by the Borrower and the Agent for identification
  purposes;

              

      

       

      
        	
                (h)

              	
                Mining Rights: evidence
      that the Borrower is the legal holder of the Mining Rights and that the
      Mining Rights are valid and in good standing and give the Borrower all
      rights required to enable the Borrower to conduct the Project in
      accordance with the Cashflow Model;

              

      

       

      
        	
                (i)

              	
                good title: evidence
      that the Borrower has good title to the Project Assets and its other
      Secured Property;

              

      

       

      
        	
                (j)

              	
                opinions:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                an
      opinion from Fogler, Rubinoff LLP in respect of Ontario
    law;

              

      

       

      
        	
                 
      

              	
                (2)

              	
                an
      opinion from Davis Graham & Stubbs LLP in respect of Colorado
      law;

              

      

       

      
        	
                 
      

              	
                (3)

              	
                an
      opinion from Lakowicz, Shier & Hoffman in respect of the corporate
      good standing and due execution of the Transaction Documents under Yukon
      law; and

              

      

       

      
        	
                 
      

              	
                (4)

              	
                an
      opinion from Fogler, Rubinoff LLP in respect of title to the real property
      described in Schedule 9;

              

      

       

      
        	
                (k)

              	
                Project Authorisations:
      evidence that all Authorisations necessary as at the date of this
      agreement have been obtained in connection with the development,
      construction and operation of the Project, including all Environmental
      Approvals and evidence that all Authorisations have been obtained in
      connection with the transactions contemplated by the
      Documents;

              

      

       

      
        	
                (l)

              	
                Environmental Bonds:
      evidence that no environmental bonds or other form of security is required
      to be taken out as at the date of this agreement in accordance with the
      requirements of any Environmental Law relating to the Project as it is
      currently being operated, or the Project
Area;

              

      

       

      
        	
                (m)

              	
                insurance: evidence that
      the Borrower has complied with
  clause 10.24;

              

      

       

      
        	
                (n)

              	
                Initial Transaction
      Costs: evidence that the Initial Transaction Costs have been or
      will be paid in full at the time that the Funding Portion is
      provided;

              

      

       

      
        
          
            
              	
                      Bridge Facility
      Agreement

                    	
                      Page
    23

                    

            

          

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	 	
                 

              

      

       

      
        	
                (o)

              	
                Warrants: the Warrants
      to be issued in accordance with clause
8.1;

              

      

       

      
        	
                (p)

              	
                TSX Approvals: evidence
      that all necessary TSX Approvals to this agreement and the transactions
      contemplated by it have been
obtained;

              

      

       

      
        	
                (q)

              	
                due diligence: evidence
      of the completion of any technical, legal and commercial due diligence
      investigations with respect to the Borrower and the Project Assets and
      other Secured Property, including detailed mining plans, layouts, plant
      flow sheets, reserve and resource estimations and a technical review of
      the open pit phase 1 mine plan and the initial underground mine
      plan;

              

      

       

      
        	
                (r)

              	
                Aboriginal matters:
      evidence that the Borrower is complying with all laws, regulations,
      Authorisations, policy statements and agreements in respect of aboriginal
      rights and aboriginal communities that relate to the development,
      construction, start-up and operation of the
  Project;

              

      

       

      
        	
                (s)

              	
                Proceeds Account:
      evidence that the Proceeds Account has been
  established;

              

      

       

      
        	
                (t)

              	
                Title Documents: each
      Title Document required to be lodged with a Finance Party under any
      Transaction Document;

              

      

       

      
        	
                (u)

              	
                title insurance:
      evidence that the Borrower has obtained title insurance with Stewart Title
      in respect of the Black Fox and St Andrews
  properties;

              

      

       

      
        	
                (v)

              	
                other approvals:
      evidence that all other approvals necessary for the transactions
      contemplated by the Transaction Documents have been obtained, other than
      matters agreed to be post-closing
items;

              

      

       

      
        	
                (w)

              	
                other matters: any other
      certificates, Authorisations, documents, matters or things which the Agent
      or a Financier reasonably requires;

              

      

       

      
        	
                (x)

              	
                Funding Notice: a
      Funding Notice delivered to the Agent requesting a Funding Portion with a
      Funding Date which is a Business Day within the Availability
      Period;

              

      

       

      
        	
                (y)

              	
                Commitment: evidence
      that the Commitment will not be exceeded by providing the Funding
      Portion;

              

      

       

      
        	
                (z)

              	
                no Default: evidence
      that no Default has occurred which is continuing and no Default will
      result from the Funding Portion being
provided;

              

      

       

      
        	
                (aa)

              	
                no Material Adverse
      Effect: evidence that since the end of the accounting period for
      the Financial Reports most recently provided under clause 10.6(a) or
      2.1(f), no event has occurred which has had, or is reasonably likely to
      have, a Material Adverse Effect;
and

              

      

       

      
        	
                (bb)

              	
                representations and
      warranties: evidence that the representations and warranties set
      out in clauses 9.1 and 9.2 are true and
correct.

              

      

       

      
        	
                2.2

              	
                Certified
      copies

              

      

       

      An
Officer of the relevant Transaction Party must certify a copy of a document
given to a Finance Party under clause 2.1 to be a true copy of the original
document. The certification must be made no more than 5 Business Days
before the date on which it is provided.

       

      
        	
                2.3

              	
                Benefit
      of conditions precedent

              

      

       

      A
condition in this clause 2 is for the benefit only of the Finance Parties
and only the Agent acting on the instructions of the Financiers may waive
it.

       

      
        
          
            
              	
                      Bridge Facility
      Agreement

                    	
                      Page
    24

                    

            

          

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	 	
                 

              

      

      
         

        
          	
                  3

                	
                  Commitment,
      purpose and availability of the
Facility

                

        

        
          
 

      

      
        	
                3.1

              	
                Provision
      of Commitment

              

      

       

      Each
Financier must make its Pro Rata Share of the Commitment set out in Schedule 2
available to the Borrower on the terms of this agreement.

       

      
        	
                3.2

              	
                Several
      obligations and rights of the
Financiers

              

      

       

      
        	
                (a)

              	
                The
      obligations and rights of the Financiers under each Transaction Document
      are several.

              

      

       

      
        	
                (b)

              	
                Failure
      of a Financier to perform its obligations under a Transaction Document
      does not relieve any other Financier from any of its obligations under a
      Transaction Document.

              

      

       

      
        	
                (c)

              	
                No
      Financier is responsible for the obligations of any other Financier under
      a Transaction Document.

              

      

       

      
        	
                (d)

              	
                Each
      Financier may separately enforce its rights under any Transaction
      Document, unless a Transaction Document provides
  otherwise.

              

      

       

      
        	
                3.3

              	
                Purpose

              

      

       

      The
Borrower must use the net proceeds of each Funding Portion only
for:

       

      
        	
                (a)

              	
                the
      funding of the development, construction and operation of the Project in
      accordance with the Cashflow Model or as approved by the Financiers in
      writing;

              

      

       

      
        	
                (b)

              	
                the
      funding of fees and costs due under the Transaction Documents;
      and

              

      

       

      
        	
                (c)

              	
                any
      other purpose that the Financiers approve in
  writing.

              

      

       

      
        	
                3.4

              	
                Voluntary
      prepayment

              

      

       

      
        	
                (a)

              	
                The
      Borrower may prepay any of the Principal Outstanding by giving the Agent
      at least 15 days’ prior notice specifying the prepayment date and the
      amount to be prepaid.

              

      

       

      
        	
                (b)

              	
                Prepayment
      of part of the Principal Outstanding may only be made in an integral
      multiple of US$500,000.

              

      

       

      
        	
                (c)

              	
                The
      Borrower must prepay the Principal Outstanding specified in the prepayment
      notice on the prepayment date specified in the notice together with all
      unpaid interest accrued to the prepayment date in respect of the prepaid
      amount.

              

      

       

      
        	
                (d)

              	
                The
      Commitment of a Financier is reduced by its Pro Rata Share of any amount
      of Principal Outstanding prepaid under this clause 3.4 and
      accordingly a prepaid amount may not be
redrawn.

              

      

       

      
        	
                (e)

              	
                A
      notice given under clause 3.4(a) is
  irrevocable.

              

      

       

      
        
          	
                  4

                	
                  Funding
      and rate setting procedures

                

        

        
          
 

      

      
        	
                4.1

              	
                Delivery
      of Funding Notice

              

      

       

      
        	
                (a)

              	
                If
      the Borrower requires the provision of a Funding Portion it must deliver
      to the Agent a Funding Notice.

              

      

       

      
        	
                (b)

              	
                A
      Funding Notice must request a single Funding Portion for the whole of the
      Commitment.

              

      

       

      
        
          
            
              	
                      Bridge Facility
      Agreement

                    	
                      Page
    25

                    

            

          

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
         

        
          	 	
                   

                

        

         

      

      
        	
                (c)

              	
                The
      Agent must notify each Financier of the contents of each Funding Notice
      and of each Financier’s Pro Rata Share of a Funding Portion requested as
      soon as reasonably practicable and in any event within 1 Business Day
      after the Agent receives the Funding
Notice.

              

      

       

      
        	
                4.2

              	
                Requirements
      for a Funding Notice

              

      

       

      A Funding
Notice to be effective must be:

       

      
        	
                (a)

              	
                in
      writing in the form of, and specifying the matters required in, Schedule
      6; and

              

      

       

      
        	
                (b)

              	
                received
      by the Agent before 11.00 am on a Business Day at least 4 Business
      Days before the proposed Funding Date (or any shorter period that the
      Agent agrees in writing).

              

      

       

      
        	
                4.3

              	
                Irrevocability
      of Funding Notice

              

      

       

      The
Borrower is irrevocably committed to draw Funding Portions from the Financiers
in accordance with each Funding Notice given to the Agent.

       

      
        	
                4.4

              	
                Selection
      of Interest Periods

              

      

       

      
        	
                (a)

              	
                Each
      Interest Period must be of 90 days or any other period that the Agent
      agrees with the Borrower.

              

      

       

      
        	
                (b)

              	
                If
      an Interest Period ends on a day which is not a Business Day, it is
      regarded as ending on the next Business Day in the same calendar month or,
      if none, the preceding Business
Day.

              

      

       

      
        	
                (c)

              	
                An
      Interest Period for a Funding Portion commences either on the first
      Funding Date for that Funding Portion or on the last day of the
      immediately preceding Interest Period for that Funding
      Portion.

              

      

       

      
        	
                (d)

              	
                Each
      Interest Period which commences prior to a Quarterly Date and would
      otherwise end after that Quarterly Date, ends on that Quarterly
      Date.

              

      

       

      
        	
                4.5

              	
                Determination
      of Funding Rate

              

      

       

      
        	
                (a)

              	
                The
      Agent must notify each Financier and the Borrower of the Funding Rate for
      an Interest Period as soon as reasonably practicable, and in any event
      within 2 Business Days, after it has made its determination of
      LIBOR.

              

      

       

      
        	
                (b)

              	
                In
      the absence of manifest error, each determination of LIBOR by the Agent is
      conclusive evidence of that rate against the
  Borrower.

              

      

       

      
        
          	
                  5

                	
                  Facility

                

        

        
          
 

      

      
        	
                5.1

              	
                Provision
      of Funding Portions

              

      

       

      If the
Borrower gives a Funding Notice, each Financier must pay into the Proceeds
Account its Pro Rata Share of each specified Funding Portion in Same Day Funds
in United States Dollars on the specified Funding Date and in accordance with
that Funding Notice.

       

      
        
          
            
              	
                      Bridge Facility
      Agreement

                    	
                      Page
    26

                    

            

          

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	 	
                 

              

      

       

      
        	
                5.2

              	
                Repayment

              

      

       

      
        	
                (a)

              	
                The
      Borrower must repay the Principal Outstanding under the Facility on the
      Repayment Date.

              

      

       

      
        	
                (b)

              	
                The
      Commitment is cancelled on the Repayment
Date.

              

      

       

      
        	
                5.3

              	
                Repayment
      of other Secured Moneys

              

      

       

      The
Borrower must repay the balance of the Secured Moneys in full on the dates
provided in the Transaction Documents, and all unpaid Secured Moneys must in all
events be paid on or before the Repayment Date for the Facility or on any other
date which the Principal Outstanding is or is required to be repaid in
full.

       

      
        	
                5.4

              	
                Interest

              

      

       

      
        	
                (a)

              	
                The
      Borrower must pay interest on the principal amount of each Funding Portion
      for each Interest Period at the Funding Rate for the Interest
      Period.

              

      

       

      
        	
                (b)

              	
                Interest
      is calculated on daily balances on the basis of a 360 day year and
      for the actual number of days elapsed from and including the first day of
      each Interest Period to, but excluding, the last day of the Interest
      Period or, if earlier, the date of prepayment or repayment of the Funding
      Portion under this agreement.

              

      

       

      
        	
                (c)

              	
                The
      Borrower must pay accrued interest in arrears to the Agent on account of
      the Financiers in respect of the Facility, on each Interest Payment
      Date.

              

      

       

      
        	
                (d)

              	
                The
      Borrower may, unless prevented from doing so under clause 5.4(e), elect by
      notice in writing to the Agent no later than 10 Business Days before a
      particular Quarterly Date not to pay interest on the principal amount of a
      Funding Portion due on that Quarterly Date, in which event
      either:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                a
      Financier may elect to Convert in accordance with clause 7.1 all of its
      Pro Rata Share of the then outstanding Interest Conversion Amount for the
      Funding Portion by giving to the Borrower (with a copy to the Agent) a
      Conversion Notice not less than 5 Business Days before the relevant
      Quarterly Date; or

              

      

       

      
        	
                 
      

              	
                (2)

              	
                if
      a Financier does not give that Conversion Notice, interest on its Pro Rata
      Share of the Funding Portion will be capitalised on the relevant Quarterly
      Date, from which time the capitalised interest will itself bear interest
      for the account of that Financier.

              

      

       

      
        	
                (e)

              	
                The
      Borrower may not without the written consent of the Agent elect to
      capitalise interest in accordance with clause 5.4(d) if in the opinion of
      the Agent any TSX Approval (other than a TSX Approval which has already
      been obtained) would be required if each Financier were to Convert the
      whole of its Pro Rata Share of the Interest Conversion Amount on the
      relevant Quarterly Date.

              

      

       

      
        	
                (f)

              	
                The
      Borrower must on the Repayment Date pay to the Agent for the account of
      each relevant Financier any interest which is capitalised in accordance
      with clause 5.4(d)(2).

              

      

       

      
        	
                5.5

              	
                Calculation
      of per annum interest rate

              

      

       

      For the
purposes of compliance with the Interest Act (Canada) and disclosure under that
act, the equivalent yearly rate of interest for a 365 (or 366) day year to any
rate expressed in this agreement based on a 360 day year is equal to that 360
day rate multiplied by 365 (or 366) divided by 360.

       

      
        
          
            
              	
                      Bridge Facility
      Agreement

                    	
                      Page
    27

                    

            

          

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	 	
                 

              

      

       

      
        	
                5.6

              	
                Maximum
      interest payable

              

      

       

      Despite
any provision of this agreement, in no event will the aggregate “interest” (as
defined in section 347 of the Criminal Code (Canada) (the “Section”)) payable under this
agreement exceed the effective annual rate of interest on the “credit advanced”
(as defined in the Section) under this agreement lawfully permitted by the
Section and if any payment collected or demanded under this agreement in respect
of “interest” is determined to be contrary to the provisions of the Section,
that payment, collection or demand is taken to have been made by mutual mistake
of the Borrower and the Finance Parties and the amount of that payment or
collection will be refunded to the Borrower. For the purposes of this agreement,
the effective annual rate of interest will be determined in accordance with
generally accepted actuarial practices and principles over the relevant term
and, in the event of a dispute, a certificate of a Fellow of the Canadian
Institute of Actuaries appointed by the Agent will be prima facie evidence of
that rate.

       

      
        
          	
                  6

                	
                  Payments

                

        

        
          

        

         

      

      
        	
                6.1

              	
                Manner
      of payment

              

      

       

      All
payments by a Transaction Party under the Transaction Documents must be
made:

       

      
        	
                (a)

              	
                in
      Same Day Funds;

              

      

       

      
        	
                (b)

              	
                in
      United States Dollars; and

              

      

       

      
        	
                (c)

              	
                no
      later than 11.00 am at the local time of the place where the account
      specified by the Agent is located, on the due
  date,

              

      

       

      to the
Agent’s account as specified by the Agent to the Borrower or in any other manner
the Agent directs from time to time. The Agent’s directions under this clause
6.1 may require payments to be made in a manner that ensure they are received by
each Financier on the Repayment Date. Any account designated by the Agent under
this clause 6.1 must be maintained with a financial institution in the United
States of America.

       

      
        	
                6.2

              	
                Payments
      on a Business Day

              

      

       

      If a
payment is due on a day which is not a Business Day, the due date for that
payment is the next Business Day in the same calendar month or, if none, the
preceding Business Day, and interest must be adjusted accordingly.

       

      
        	
                6.3

              	
                Payments
      in gross

              

      

       

      All
payments which a Transaction Party is required to make under any Transaction
Document must be without:

       

      
        	
                (a)

              	
                any
      set-off, counterclaim or condition;
or

              

      

       

      
        	
                (b)

              	
                any
      deduction or withholding for any Tax or any other reason unless the
      Transaction Party is required to make a deduction or withholding by
      applicable law.

              

      

       

      
        	
                6.4

              	
                Additional
      payments

              

      

       

      If:

       

      
        	
                (a)

              	
                any
      Transaction Party is required to make a deduction or withholding in
      respect of Tax (other than Excluded Tax) from any payment to be made to a
      Finance Party under any Transaction Document;
or

              

      

       

      
        
          
            
              	
                      Bridge Facility
      Agreement

                    	
                      Page
    28

                    

            

          

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	 	
                 

              

      

       

      
        	
                (b)

              	
                a
      Finance Party is required to pay any Tax (other than Excluded Tax) in
      respect of any payment it receives from a Transaction Party or the Agent
      under any Transaction Document,

              

      

       

      the
Transaction Party:

       

      
        	
                (c)

              	
                indemnifies
      each Finance Party against that Tax;
and

              

      

       

      
        	
                (d)

              	
                must
      pay to each Finance Party an additional amount which the Agent determines
      to be necessary to ensure that each Finance Party receives when due a net
      amount (after payment of any Tax in respect of each additional amount)
      that is equal to the full amount it would have received if a deduction or
      withholding or payment of Tax had not been
made.

              

      

       

      
        	
                6.5

              	
                Taxation
      deduction procedures

              

      

       

      If
clause 6.4(a) applies:

       

      
        	
                (a)

              	
                the
      Transaction Party must pay on a timely basis the amount deducted or
      withheld to the appropriate Government Agency as required by law;
      and

              

      

       

      
        	
                (b)

              	
                the
      Transaction Party must within 5 Business Days after receipt of NR-4
      statements documenting the amount referred to in clause 6.5(a)
      forward those statements to the Canada Revenue Agency on behalf of the
      Finance Party and deliver copies of them to the
  Agent.

              

      

       

      
        	
                6.6

              	
                Tax
      Credit

              

      

       

      If a
Transaction Party makes an additional payment under clause 6.4 for the
benefit of a Finance Party, and the Finance Party determines that:

       

      
        	
                (a)

              	
                a
      credit against, relief or remission for, or repayment of any Tax by a
      Finance Party (Tax
      Credit) is attributable to that additional payment;
    and

              

      

       

      
        	
                (b)

              	
                the
      Finance Party has obtained, utilised and retained that Tax
      Credit,

              

      

       

      then the
Finance Party must pay an amount to the Transaction Party which the Finance
Party determines, in its sole discretion, will leave it (after that payment) in
the same after Tax position as it would have been in had the additional payment
not been made by the Transaction Party, provided that the Transaction Party
agrees to repay all or a portion of the amount paid to it (plus any penalties,
interest or other charges imposed by the relevant Government Agency) to that
Finance Party if the Transaction Party is required to repay all or a portion of
the Tax Credit to which the payment made by the Finance Party under this clause
6.6 relates.

       

      
        	
                6.7

              	
                Tax
      affairs

              

      

       

      Nothing
in clause 6.6:

       

      
        	
                (a)

              	
                interferes
      with the right of any Finance Party to arrange its tax affairs in any
      manner it thinks fit;

              

      

       

      
        	
                (b)

              	
                obliges
      any Finance Party to investigate the availability of, or claim, any Tax
      Credit; or

              

      

       

      
        	
                (c)

              	
                obliges
      any Finance Party to disclose any information relating to its tax affairs
      or any tax computations.

              

      

       

      
        	
                6.8

              	
                Amounts
      payable on demand

              

      

       

      If any
amount payable by a Transaction Party under any Transaction Document is not
expressed to be payable on a specified date, that amount is payable by the
Transaction Party on demand by the Agent.

      
         

        
          
            
              
                	
                        Bridge Facility
      Agreement

                      	
                        Page
    29

                      

              

               

            

          

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	 	
                 

              

      

       

      
        	
                6.9

              	
                Appropriation
      of payments

              

      

       

      
        	
                (a)

              	
                Except
      where clause 6.9(b) applies, all payments made by a Transaction Party
      under a Transaction Document may be appropriated as between principal,
      interest and other amounts as the Agent determines or, failing any
      determination, in the following
order:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                first,
      towards reimbursement of all fees, costs, expenses, charges, damages and
      indemnity payments due and payable by the Transaction Parties under the
      Transaction Documents;

              

      

       

      
        	
                 
      

              	
                (2)

              	
                second,
      towards payment of interest due and payable under the Transaction
      Documents; and

              

      

       

      
        	
                 
      

              	
                (3)

              	
                third,
      towards repayment or prepayment of the Principal
    Outstanding.

              

      

       

      
        	
                (b)

              	
                Any
      money recovered by a Finance Party as a result of the exercise of a Power
      under a Security must be appropriated in the manner provided in that
      Security.

              

      

       

      
        	
                (c)

              	
                Any
      appropriation under clauses 6.9(a) or 6.9(b) overrides any
      appropriation made by a Transaction
Party.

              

      

       

      
        	
                6.10

              	
                Distribution
      by Agent

              

      

       

      
        	
                (a)

              	
                A
      payment received by the Agent under a Transaction Document is received by
      the Agent on account of the Financiers
unless:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                the
      payment is made to the Agent for its own account;
  or

              

      

       

      
        	
                 
      

              	
                (2)

              	
                a
      provision in a Transaction Document expressly provides
      otherwise.

              

      

       

      
        	
                (b)

              	
                The
      Agent must promptly distribute amounts received on account of the
      Financiers to the Financiers in their respective Pro Rata Shares and in
      the same type of funds as received by the
Agent.

              

      

       

      
        	
                6.11

              	
                Non-receipt
      of funds by Agent 

              

      

       

      
        	
                (a)

              	
                If:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                the
      Agent elects to make a payment (Agent Payment) to any
      party (Payee) that
      is to be made out of a payment (Payer Payment) due to
      the Agent by another party (Payer) before the Agent
      has received the Payer’s Payment;
and

              

      

       

      
        	
                 
      

              	
                (2)

              	
                the
      Payer does not in fact make the Payer’s Payment to the Agent on the due
      date,

              

      

       

      the Payee
must repay the Agent Payment to the Agent on demand.

       

      
        	
                (b)

              	
                The
      Payer indemnifies the Agent and the Payee against any Loss suffered or
      incurred by the Agent or the Payee as a result of any failure by the Payer
      to make the Payer Payment when due.

              

      

       

      
        	
                6.12

              	
                Redistribution
      of payments

              

      

       

      
        	
                (a)

              	
                If
      a Financier receives or recovers an amount from a Transaction Party under
      the Transaction Documents other than in accordance with
      clause 6.10:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                the
      Financier must advise the Agent that it has received or recovered the
      amount within 3 Business Days after the receipt or
      recovery;

              

      

       

      
        	
                 
      

              	
                (2)

              	
                the
      Financier must within 3 Business Days after demand by the Agent pay
      to the Agent the amount determined by the Agent to be equal to the amount
      (excess amount) by
      which the amount received or recovered exceeds the amount the Financier
      would have received if the amount had been paid to the Agent and
      distributed in accordance with
clause 6.10;

              

      

       

      
        
          
            
              	
                      Bridge Facility
      Agreement

                    	
                      Page
    30

                    

            

          

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	 	
                 

              

      

       

      
        	
                 
      

              	
                (3)

              	
                the
      Agent must treat the payment of the excess amount as if it were a payment
      by the Transaction Party to the Agent on account of all the Financiers and
      promptly distribute the excess amount to the Financiers in accordance with
      clause 6.10; and

              

      

       

      
        	
                 
      

              	
                (4)

              	
                as
      between each Transaction Party and the Finance Parties, the excess amount
      is to be treated as not having been paid to a Financier, but as having
      been paid to all the Financiers in accordance with their respective
      entitlements.

              

      

       

      
        	
                (b)

              	
                If
      an amount to which clause 6.12(a) applies is subsequently required to
      be repaid by the Financier who originally received or recovered it to a
      Transaction Party, each Finance Party which has received any part of it
      must repay that part to the Financier who originally received or recovered
      it, and the adjustments under clause 6.12(a)(4) will be
      reversed.

              

      

       

      
        	
                6.13

              	
                Rounding

              

      

       

      The Agent
may round amounts to the nearest unit of Relevant Currency in making any
allocation or appropriation under the Transaction Documents.

       

      
        	
                6.14

              	
                Currency
      exchanges

              

      

       

      If the
Agent receives an amount under a Transaction Document in a currency which is not
in the Relevant Currency, the Agent:

       

      
        	
                (a)

              	
                may
      convert the amount received into the Relevant Currency in accordance with
      its normal procedures; and

              

      

       

      
        	
                (b)

              	
                is
      only regarded as having received the amount that it has converted into the
      Relevant Currency.

              

      

       

      
        
          	
                  7

                	
                  Conversion

                

        

        
          
 

      

      
        	
                7.1

              	
                Interest
      Conversion

              

      

       

      
        	
                (a)

              	
                If
      a Financier elects to Convert its Pro Rata Share of an Interest Conversion
      Amount on a Quarterly Date by giving a Conversion Notice in accordance
      with clause 5.4(d), then the number of Shares that the Financier will
      receive will be determined by
dividing:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                its
      Pro Rata Share of the Interest Conversion Amount as at the relevant
      Quarterly Date; by

              

      

       

      
        	
                 
      

              	
                (2)

              	
                the
      Current Market Price discounted by the maximum discount permitted by the
      TSX in accordance with the Listing Rules of the TSX for that Current
      Market Price.

              

      

       

      
        	
                (b)

              	
                On
      or as soon as practicable after the relevant Quarterly Date, the Borrower
      will give a written notice (Interest Conversion Amount
      Notice) to the Agent specifying the Interest Conversion Amount and
      the number of Shares to be issued on Conversion of the Interest Conversion
      Amount, setting out the Borrower’s detailed calculation of the Interest
      Conversion Amount and the number of Shares to be issued on Conversion of
      the Interest Conversion Amount. If the Agent disagrees with the Interest
      Conversion Amount and the number of Shares to be issued on Conversion of
      the Interest Conversion Amount, it must notify the Borrower within 5
      Business Days, and the Borrower must, within 2 Business Days of receiving
      notice from the Agent, change or amend the Interest Conversion Amount
      Notice as instructed by the Agent.

              

      

       

      
        
          
            
              	
                      Bridge Facility
      Agreement

                    	
                      Page
    31

                    

            

          

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	 	
                 

              

      

       

      
        	
                7.2

              	
                Issue
      of Shares

              

      

       

      
        	
                (a)

              	
                If
      Conversion occurs under clause 7.1, the Borrower must issue to that
      Financier the number of Shares determined in accordance with that clause
      within 5 Business Days following the Conversion Date. In accordance with
      applicable Listing Rules of the TSX and all other applicable Ontario
      Securities Law, the Shares that may be delivered on Conversion may not be
      sold or otherwise disposed of for a period of 4 months from the date of
      this agreement in the absence of either a prospectus or an exemption from
      the prospectus requirements under the applicable Listing Rules of the TSX
      and all other applicable Ontario Securities Law. The Shares that are
      delivered on Conversion will be ‘restricted securities’ under US
      Securities Laws and may not be transferred without a valid exemption or in
      accordance with an effective registration under US Securities
      Laws.

              

      

       

      
        	
                (b)

              	
                The
      Borrower must give a Certificate or Certificates to each Financier in
      respect of that number of Shares to which that Financier is entitled under
      clause 7.1(a) within 15 Business Days of the Conversion Date. If AMEX
      Approval is received after the Conversion Date, the Borrower must give a
      Certificate or Certificates in respect of the Shares listed on AMEX to
      which that Financier is entitled under clause 7.1(a) to the Financier on
      the date AMEX Approval is received.

              

      

       

      
        	
                (c)

              	
                On
      the issue to each Financier of the Certificates referred to in clause
      7.2(b), the Interest Conversion Amount which is the subject of the
      relevant Conversion is taken to have been paid by the Borrower to the
      Financier.

              

      

       

      
        	
                (d)

              	
                The
      Borrower must take all necessary steps to ensure that all Shares to be
      issued under clause 7.1(a) are listed on the TSX and the AMEX before they
      are issued.

              

      

       

      
        	
                7.3

              	
                Current
      Market Price

              

      

       

      
        	
                (a)

              	
                The
      Current Market Price for a Conversion under clause 7.1 is the Volume
      Weighted Average Trading Price of the Shares, expressed in C$ and
      fractions of C$, sold on the TSX during the Trading Period last occurring
      before the relevant Quarterly Date in respect of which the Conversion
      Notice under clause 5.4(d)(1) is
given.

              

      

       

      
        	
                (b)

              	
                The
      Volume Weighted Average Trading Price is calculated by dividing the total
      value, as provided by the TSX, of traded Shares during the Trading Period
      by the total number of Shares traded on the TSX during the Trading
      Period.

              

      

       

      
        	
                (c)

              	
                The
      Volume Weighted Average Trading Price will be determined by reference to
      the actual prices and volumes of the Shares traded as published by the
      TSX, or if not published by the TSX, as determined by the Agent from any
      other available source.

              

      

       

      
        
          	
                  8

                	
                  Issue
      of Warrants

                

        

        
          
 

      

      
        	
                8.1

              	
                Warrants

              

      

       

      The
Borrower must on the date of this agreement:

       

      
        	
                (a)

              	
                issue
      the Warrants to each Financier or Financier’s Affiliate, and the number of
      Warrants to be issued to each Financier or Financier’s Affiliate will be
      determined by the following
formula:

              

      

       

      

       

      
        
          
            
              	
                      Bridge Facility
      Agreement

                    	
                      Page
    32

                    

            

          

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	 	
                 

              

      

       

      W is the number of Warrants to
be issued to each Financier or Financier’s Affiliate;

       

      FA is the C$ Equivalent Amount
on the date of this agreement of US$15,000,000; and

       

      
        	
                 
      

              	
                WEP is the Warrant
      Exercise Price; and

              

      

       

      
        	
                (b)

              	
                provide
      to each Financier or Financier’s Affiliate a Warrant Certificate in
      respect of its Warrants in the name of that Financier or Financier’s
      Affiliate (as applicable).

              

      

       

      
        	
                8.2

              	
                Issue
      of Warrants

              

      

       

      
        	
                (a)

              	
                All
      Warrants issued under clause 8.1 will be issued on the terms set out in
      Schedule 7 which for the avoidance of doubt, include the
      following:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                that
      each Warrant, when validly exercised, entitles each Financier or
      Financier’s Affiliate to purchase one Share at the Warrant Exercise Price
      on the terms and conditions of the Warrant;
and

              

      

       

      
        	
                 
      

              	
                (2)

              	
                that
      each Warrant may be exercised before 5.00pm Toronto time on the Expiry
      Date.

              

      

       

      
        	
                (b)

              	
                The
      Borrower must use its best endeavours to ensure the Warrants are issued in
      accordance with clauses 8.1 and
8.2(a).

              

      

       

      
        	
                (c)

              	
                The
      holding of a Warrant issued under clause 8.1 will not entitle the holder
      of that Warrant to any rights as a shareholder of the Borrower, including
      without limitation, voting rights.

              

      

       

      
        	
                (d)

              	
                All
      Warrants issued under clause 8.1 will be issued at no additional cost to
      the Financiers.

              

      

       

      
        	
                8.3

              	
                Exercise
      of Warrants

              

      

       

      
        	
                (a)

              	
                Each
      Financier or Financier’s Affiliate (as applicable) may exercise the
      Warrants, subject to any restrictions under the Listing Rules of the TSX,
      Ontario Securities Law or US Securities Law, at any time before the Expiry
      Date.

              

      

       

      
        	
                (b)

              	
                If
      requested by the Agent, the Borrower must use its best efforts to assist a
      Financier or Financier’s Affiliate (as applicable) to sell Shares obtained
      by that Person through the exercise of the
  Warrants.

              

      

       

      
        	
                (c)

              	
                The
      Borrower must ensure that all necessary TSX Approvals have been obtained
      and will be maintained in connection with the issuance of all Warrant
      Certificates, the issuance of Warrants represented thereby and the
      underlying Shares, and the listing of the Shares on the TSX and the AMEX
      on due exercise of the Warrants.

              

      

       

      
        	
                (d)

              	
                In
      accordance with the applicable Listing Rules of the TSX and all other
      applicable Ontario Securities Law, the Shares that may be delivered on the
      exercise of a Warrant may not be sold or otherwise disposed of for a
      period of 4 months from the date of this agreement in the absence of
      either a prospectus or an exemption from the prospectus requirements under
      the applicable Listing Rules of the TSX and all other applicable Ontario
      Securities Law. The Shares that are delivered on the exercise of a Warrant
      will be ‘restricted securities’ under US Securities Laws and may not be
      transferred without a valid exemption or in accordance with effective
      registration under US Securities
Laws.

              

      

       

      
        	
                8.4

              	
                Ranking
      of Shares and Warrants

              

      

       

      
        	
                (a)

              	
                Each
      Share received by a Financier or Financier’s Affiliate, either under
      clause 7.2 or on the exercise of a Warrant issued to a Financier or its
      Affiliate (as applicable) under this clause 8, ranks in all respects pari
      passu with the other then existing issued Shares, but will not in the case
      of the exercise of a Warrant carry any rights to any dividends or other
      distributions declared or paid or made on the Shares before the date that
      Warrant is exercised.

              

      

       

      
        
          
            
              	
                      Bridge Facility
      Agreement

                    	
                      Page
    33

                    

            

          

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	 	
                 

              

      

       

      
        	
                (b)

              	
                Each
      Warrant issued to a Financier or Financier’s Affiliate under this clause 8
      ranks in all respects pari passu with the other then existing issued
      Warrants, but will not carry any rights to any distributions declared or
      paid or made on the Warrants before the date those Warrants are
      issued.

              

      

       

      
        	
                8.5

              	
                Registration
      under US Securities Laws

              

      

       

      
        	
                (a)

              	
                Promptly
      following the completion of the Funding Date, the Borrower shall, at its
      expense, prepare and file with the U.S. Securities and Exchange Commission
      a Registration Statement on Form S-3 (Registration Statement)
      providing for resale by each Financier or its Affiliate (as applicable) of
      the Warrant Shares and the shares that may be issued under clause
      7.2(a).  The Borrower or its nominee shall use its best efforts
      to have the Registration Statement declared effective as soon as
      practicable following the filing, and shall maintain the effectiveness of
      the Registration Statement until the earlier of (i) the last
      occurring Expiry Date or (ii) such date as no Financier holds any of
      the Shares registered in the Registration Statement, or (iii) such
      Shares are capable of being sold without limitation under Rule 144
      under the Securities Act of 1933 (the Securities
      Act).

              

      

       

      
        	
                (b)

              	
                Each
      Financier agrees to provide such information as may be required under the
      Securities Act relating to such Financier for inclusion in the
      Registration Statement.  Each Financier further agrees that if,
      during the time that the Registration Statement is effective, the Borrower
      notifies it that the Registration Statement contains a material
      misstatement or omission, the Financier will cease resale of the Shares
      pursuant to such Registration Statement until it is notified that resales
      may be resumed. The Borrower covenants to use its best efforts to
      supplement the Registration Statement as soon as practicable to make the
      disclosures in the Registration Statement correct and
      complete.

              

      

       

      
        
          	
                  9

                	
                  Representations
      and warranties

                

        

        
          

        

         

      

      
        	
                9.1

              	
                General
      representations and warranties

              

      

       

      Each
Transaction Party represents and warrants to and for the benefit of each Finance
Party that:

       

      
        	
                (a)

              	
                registration: the
      Borrower is duly incorporated and validly existing under the laws of the
      Yukon Territory, Canada and is duly qualified to do business, and is in
      good standing, in Ontario, Canada, and it has done everything necessary to
      keep its corporate existence in good
standing;

              

      

       

      
        	
                (b)

              	
                corporate power: it has
      the corporate power to own its assets and to carry on its business as it
      is now being conducted;

              

      

       

      
        	
                (c)

              	
                authority: it has power
      and corporate authority to enter into and perform its obligations under
      the Documents to which it is expressed to be a
  party;

              

      

       

      
        	
                (d)

              	
                authorisations: it has
      taken all necessary corporate action to authorise the execution, delivery
      and performance of the Documents to which it is a
  party;

              

      

       

      
        	
                (e)

              	
                binding obligations: the
      Documents to which it is a party constitute its legal, valid and binding
      obligations and, subject to any necessary stamping and registration, are
      enforceable in accordance with their terms subject to laws generally
      affecting creditors’ rights and to principles of
  equity;

              

      

       

      
        	
                (f)

              	
                valid
      Encumbrances:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                on
      execution and delivery of a Security, that Security will be effective to
      create in favour of the Finance Parties legal, valid and enforceable
      Encumbrances on, and security interests in, all right, title and interests
      of the relevant Transaction Party (as the case may be) in and to the
      property the subject of that Security and the proceeds of that property,
      in each case not subject to any Encumbrances, other than Permitted
      Encumbrances;

              

      

       

      
        
          
            
              	
                      Bridge Facility
      Agreement

                    	
                      Page
    34

                    

            

          

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    
       

      
        	 	
                 

              

      

       

      
        	
                 
      

              	
                (2)

              	
                in
      respect of a Security where the priority of the security interest may be
      elevated by possession or control of the property the subject of that
      Security (which possession or control must be given to the Security Agent
      by the relevant Transaction Party (as the case may be) to the extent that
      it is required), after all appropriate filings or recordings are made in
      the appropriate offices as may be required under applicable law, and,
      after the Security Agent takes possession or control of the property the
      subject of that Security, that Security will constitute a fully perfected
      Encumbrance on, and first priority security interests in, all right, title
      and interest of that Transaction Party in the property the subject of that
      Security and the proceeds of that property, in each case subject to no
      Encumbrances other than Permitted Encumbrances;
  and

              

      

       

      
        	
                 
      

              	
                (3)

              	
                all
      registrations identified in Schedule 13 pertain to Permitted
      Encumbrances;

              

      

       

      
        	
                (g)

              	
                transaction permitted:
      the execution, delivery and performance by it of the Documents to which it
      is a party will not breach, or result in a contravention
    of:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                any
      law, regulation or Authorisation;

              

      

       

      
        	
                 
      

              	
                (2)

              	
                its
      memorandum and articles of association, articles of incorporation,
      articles of organization, by-laws, constitution, operating agreement, or
      other constituent or constating documents, as applicable;
    or

              

      

       

      
        	
                 
      

              	
                (3)

              	
                any
      Encumbrance or agreement which is binding on
it,

              

      

       

      and will
not result in:

       

      
        	
                 
      

              	
                (4)

              	
                the
      creation or imposition of any Encumbrance on any of its assets other than
      as permitted under a Transaction Document;
or

              

      

       

      
        	
                 
      

              	
                (5)

              	
                the
      acceleration of the date for payment of any obligation under any agreement
      which is binding on it;

              

      

       

      
        	
                (h)

              	
                no default or breach: it
      is not:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                in
      breach in a material respect of any law or
  Authorisation;

              

      

       

      
        	
                 
      

              	
                (2)

              	
                in
      breach under any Document, agreement or other document binding on it which
      breach has, or is reasonably likely to have, a Material Adverse Effect;
      or

              

      

       

      
        	
                 
      

              	
                (3)

              	
                in
      default in the payment of a material sum, or in compliance with a material
      obligation in respect of Financial
Indebtedness;

              

      

       

      
        	
                (i)

              	
                no litigation: no
      litigation, arbitration, dispute or administrative proceeding has been
      commenced, is pending or to its knowledge is threatened, which if
      adversely determined would have a Material Adverse
  Effect;

              

      

       

      
        	
                (j)

              	
                financial information:
      the most recent Financial Reports or accounts which the Borrower has
      provided to the Agent under clauses 2.1(f)
  and 10.6:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                give
      a true and fair view of the financial condition and state of affairs of
      the Borrower and the Group respectively, as at the date they were
      prepared; and

              

      

       

      
        	
                 
      

              	
                (2)

              	
                were
      prepared in accordance with the Accounting
  Standards;

              

      

       

      
        	
                (k)

              	
                no change in affairs:
      there has been no change in the Borrower’s or the Group’s state of affairs
      since the end of the accounting period for its most recent Financial
      Reports or accounts, referred to in clause 9.1(j) which has had, or
      is reasonably likely to have, a Material Adverse
  Effect;

              

      

       

      
        
          
            
              	
                      Bridge Facility
      Agreement

                    	
                      Page
    35

                    

            

          

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	 	
                 

              

      

       

      
        	
                (l)

              	
                representations true:
      each of its representations and warranties contained in the Documents is
      correct and not misleading in all material respects when made or
      repeated;

              

      

       

      
        	
                (m)

              	
                disclosure:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                no
      representation or warranty of or by a Transaction Party under a
      Transaction Document, any schedule, annexure or exhibit attached to a
      Transaction Document, contained in any certificate provided to a Finance
      Party under the provisions of a Transaction Document, contains any untrue
      statement of a material fact or omits to state a material fact necessary
      in order to make the statements in this agreement or in that Transaction
      Document, in the light of the circumstances under which they were made,
      not misleading;

              

      

       

      
        	
                 
      

              	
                (2)

              	
                it
      has fully disclosed in writing to the Finance Parties all facts relating
      to it, the Documents, the transactions contemplated by them, each
      Transaction Party, the assets, business and affairs of each Transaction
      Party and any thing in connection with them which would have had or would
      have been reasonably likely to have had a material effect on the decision
      of a prudent lender to enter into the Transaction
    Documents;

              

      

       

      
        	
                 
      

              	
                (3)

              	
                all
      filings made by the Borrower with any securities commissions or regulatory
      authorities or the TSX are at their respective dates, true and correct,
      contain or contained no misrepresentation and constitute full, true and
      plain disclosure of all material facts relating to the Borrower and the
      Borrower does not have any confidential filings with any securities
      commissions or regulatory authorities or the TSX;
  and

              

      

       

      
        	
                 
      

              	
                (4)

              	
                it
      does not have any knowledge of any material adverse information in regard
      to the current and prospective operations of any Transaction
      Party;

              

      

       

      
        	
                (n)

              	
                legal and beneficial
      owner: it is the legal and beneficial owner of or has a valid
      leasehold or other contractual interest
in:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                its
      Secured Property; and

              

      

       

      
        	
                 
      

              	
                (2)

              	
                all
      of its assets included in the latest Financial Report provided by the
      Borrower,

              

      

       

      free and
clear of all third party rights, interests and Encumbrances other than those
disclosed in those Financial Reports, or Permitted Encumbrances;

       

      
        	
                (o)

              	
                no immunity: it does
      not, nor do its assets, enjoy immunity from suit or
    execution;

              

      

       

      
        	
                (p)

              	
                not a trustee: it does
      not enter into any Document as trustee of any trust or
      settlement;

              

      

       

      
        	
                (q)

              	
                solvency: it is solvent
      and is able to pay its debts as and when they become
  due;

              

      

       

      
        	
                (r)

              	
                commercial benefit: the
      entering into and performance by it of its obligations under the Documents
      to which it is expressed to be a party is for its commercial benefit and
      is in its commercial interests;

              

      

       

      
        	
                (s)

              	
                shareholding:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                the
      Borrower is the legal and beneficial owner of all issued shares in the
      capital of AGI and in the capital of Minera Sol de Oro S.A.de C.V. (other
      than one share of Minera Sol de Oro S.A.de C.V. held by R. David Russell
      as a requirement of Mexican law);
and

              

      

       

      
        	
                 
      

              	
                (2)

              	
                AGI
      is the legal and beneficial owner of all issued shares in Mine Development
      Finance Inc. and Montana Tunnels Mining
Inc;

              

      

       

      
        	
                (t)

              	
                Group
      structure:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                its
      only Associates are listed in the Group Structure Diagram;
    and

              

      

       

      
        	
                 
      

              	
                (2)

              	
                the
      Group Structure Diagram is true and correct in all respects and does not
      omit any material information or
details;

              

      

       

      
        
          
            
              	
                      Bridge Facility
      Agreement

                    	
                      Page
    36

                    

            

          

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	 	
                 

              

      

       

      
        	
                (u)

              	
                Taxes and
      fees:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                it
      has complied in all material respects with all tax laws in all applicable
      jurisdictions (including, without limitation, withholding or remitting to
      the appropriate Government Agency any amounts on account of Taxes required
      to be withheld or deducted from payments made by it) and it has paid all
      Taxes due and payable by it (other than Contested Taxes), and no claims
      are being asserted against it in respect of any Taxes (other than
      Contested Taxes); and

              

      

       

      
        	
                 
      

              	
                (2)

              	
                it
      has paid all registration or other fees, costs and expenses in connection
      with the execution, performance and perfection of the Documents, any
      transaction contemplated by a Document and any Authorisations;
      

              

      

       

      
        	
                (v)

              	
                reporting
      issuer:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                the
      Borrower is a reporting issuer (or the equivalent) where applicable in
      good standing in each of the provinces of Canada (except Quebec) under the
      applicable Canadian Securities Laws, is not included in a list of
      defaulting reporting issuers maintained by the securities commissions (or
      similar regulatory authorities) in any of the provinces of Canada and is
      not in default of any requirement of the applicable Canadian Securities
      Laws relating to continuous disclosure and is in compliance with the
      by-laws, rules and regulations of the TSX;
and

              

      

       

      
        	
                 
      

              	
                (2)

              	
                there
      has not occurred any material adverse change (actual, anticipated,
      contemplated or threatened, whether financial or otherwise) in the
      business, affairs, operations, assets, liabilities (contingent or
      otherwise) or capital of the Borrower and its Subsidiaries (taken together
      as a whole) which has not been publicly disclosed; all the statements set
      forth in the Borrower’s public disclosure documents which have been filed
      pursuant to the requirements of the Securities Laws are true, correct, and
      complete and do not contain any misrepresentation (within the meaning of
      such Securities Laws) as of the date of the applicable document and the
      Borrower has not filed any confidential material change reports under such
      securities laws which is currently in effect;
  and

              

      

       

      
        	
                (w)

              	
                authorised Shares: the
      Borrower has reserved and kept available out of its authorised Shares (if
      the number thereof is or becomes limited) solely for the purpose of issue
      upon conversion of capitalised interest as provided under this agreement
      and upon exercise of all Warrants issued under this agreement, and has
      allotted for issue to the Financiers, who may exercise their conversion
      rights under this agreement and/or their Warrants, the number of Shares as
      are issuable upon the conversion of capitalised interest and all Warrants.
      All Shares issued upon the conversion of capitalised interest in
      accordance with the terms of this agreement and upon exercise of the
      Warrants in accordance with this agreement will be duly and validly issued
      as fully paid and non-assessable.

              

      

       

      
        	
                9.2

              	
                Project
      representations and warranties

              

      

       

      The
Transaction Parties represent and warrant to and for the benefit of each Finance
Party that:

       

      
        	
                (a)

              	
                Mining
      Rights:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                the
      Mining Rights are legal, valid and continuing, and confer on the Borrower
      all material rights required to enable it to build, construct and operate
      the Project in accordance with the Cashflow
  Model;

              

      

       

      
        	
                 
      

              	
                (2)

              	
                the
      Borrower is the legal and beneficial holder of the Mining Rights set out
      in the Security described at item 9 of Schedule 4;
  and

              

      

       

      
        	
                 
      

              	
                (3)

              	
                the
      Borrower has in all material respects complied with its obligations in
      connection with the Mining Rights to the extent required to
      date;

              

      

       

      
        
          
            
              	
                      Bridge Facility
      Agreement

                    	
                      Page
    37

                    

            

          

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	 	
                 

              

      

       

      
        	
                (b)

              	
                Project
      Authorisations:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                the
      Authorisations necessary for the development and operation of the Project
      are in place, except for any which as a matter of law or Good Industry
      Practice cannot or should not reasonably be obtained until shortly before
      the events to which they relate occur where those events are not imminent,
      and it has no reason to believe that those Authorisations which are not
      presently held will not be obtained at the appropriate time in the future;
      and

              

      

       

      
        	
                 
      

              	
                (2)

              	
                all
      fees due and payable in connection with the Authorisations referred to in
      clause 9.2(b)(1) have been paid;

              

      

       

      
        	
                (c)

              	
                Project operation: there
      has been no material change in the conduct or operation of the Project
      from that contemplated in the Cashflow
Model;

              

      

       

      
        	
                (d)

              	
                Project
      Documents:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                no
      event has occurred or condition exists which would permit the
      cancellation, termination, forfeiture or suspension of a Project Document,
      nor is any party to a Project Document in default under any term of a
      Project Document in any material
respect;

              

      

       

      
        	
                 
      

              	
                (2)

              	
                it
      has given to the Agent copies of all of the executed Project Documents,
      and all copies of the executed Project Documents and any other documents
      or agreements (including Authorisations) given by it or on its behalf to
      the Agent constitute true and complete copies and those documents and
      agreements and are in full force and
effect;

              

      

       

      
        	
                 
      

              	
                (3)

              	
                the
      executed Project Documents contain the entire agreement of the parties to
      them as to the Project and there are no other material contracts,
      agreements or arrangements entered into by a Transaction Party in
      connection with the Project (as at the date of this Agreement);
      and

              

      

       

      
        	
                 
      

              	
                (4)

              	
                the
      documents and information provided to the Agent in relation to the Project
      include all of the documents and information which a reasonable person in
      the Borrower’s position would expect the Financiers to consider material
      to the decision to enter into the Transaction Documents and do anything in
      connection with them;

              

      

       

      
        	
                (e)

              	
                aboriginal
      matters:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                the
      Borrower is complying with all laws, regulations and authorisations in
      respect of aboriginal rights, aboriginal title, treaty rights, and
      aboriginal communities that relate to the development, construction,
      start-up and operation of the Project;
and

              

      

       

      
        	
                 
      

              	
                (2)

              	
                no
      material claims or applications in connection with aboriginal matters have
      been made in respect of any of the Project Area or, if made, those claims
      have been removed or resolved on terms satisfactory to the
      Agent;

              

      

       

      
        	
                (f)

              	
                environment:
      

              

      

       

      
        	
                 
      

              	
                (1)

              	
                the
      development and operation of the Project and the Project Assets as
      contemplated by the Cashflow Model complies with all applicable
      Environmental Laws in all material
respects;

              

      

       

      
        	
                 
      

              	
                (2)

              	
                all
      Environmental Approvals necessary for the development and operation of the
      Project as it is currently being operated are in place except for any
      which as a matter of law or Good Industry Practice cannot or should not
      reasonably be obtained until shortly before the events to which they
      relate occur where those events are not imminent and it has no reason to
      believe that those Environmental Approvals which are not presently held
      will not be obtained at the appropriate time in the future;
      and

              

      

       

      
        	
                 
      

              	
                (3)

              	
                no
      environmental bond or other form of security is required to be taken out
      or lodged in accordance with the requirements of any Environmental Law
      relating to the Project as it is currently being operated or Project
      Area;

              

      

       

      
        
          
            
              	
                      Bridge Facility
      Agreement

                    	
                      Page
    38

                    

            

          

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	 	
                 

              

      

       

      
        	
                (g)

              	
                royalties: there are no
      royalties, production-based Taxes or similar levies on mineral production
      other than those identified in Schedule
12;

              

      

       

      
        	
                (h)

              	
                other business: the
      Transaction Parties are not engaged in any business other than its
      existing core businesses and operations of mineral exploration, mining or
      processing;

              

      

       

      
        	
                (i)

              	
                insurances: in respect
      of the Project and the Project Assets, the Transaction Parties have
      complied with clause 10.24 and all insurance policies entered into in
      complying with clause 10.24 are valid, binding and subsisting and all
      premiums due under those insurance policies have been paid in
      full;

              

      

       

      
        	
                (j)

              	
                Unpatented Mining
      Claims: the Unpatented Mining Claims are the only mining
      claims with respect to the Project;
and

              

      

       

      
        	
                (k)

              	
                Project Area: the
      Project does not include any real property other than the Project Area,
      and the Borrower does not have any right, title or interest in land
      (whether leasehold, freehold or otherwise) other than the Project Area.
      The only building or structure on the Project Area is the stock mill
      situated on PIN 65363-0086(LT).

              

      

       

      
        	
                9.3

              	
                Survival
      and repetition of representations and
warranties

              

      

       

      The
representations and warranties given under this agreement:

       

      
        	
                (a)

              	
                survive
      the execution of each Transaction Document;
and

              

      

       

      
        	
                (b)

              	
                are
      repeated on the date of each Funding Date and each Quarterly Date with
      respect to the facts and circumstances then subsisting
    until:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                the
      Commitment is cancelled; and

              

      

       

      
        	
                 
      

              	
                (2)

              	
                the
      Secured Moneys are unconditionally repaid in
  full,

              

      

       

      or the
Agent otherwise agrees in writing.

       

      
        	
                9.4

              	
                Reliance
      by Finance Parties

              

      

       

      Each
Transaction Party acknowledges that each Finance Party has entered into each
Transaction Document to which it is a party in reliance on the representations
and warranties given under this agreement.

      
         

        
          	
                  10

                	
                  Undertakings

                

        

        
          
            

          

        

      

       

      
        	
                10.1

              	
                Conduct
      of Project

              

      

       

      A
Transaction Party must not, without the written consent of the Agent, change the
scope or operation of the Project from that assumed in or contemplated by the
Cashflow Model and it must ensure that:

       

      
        	
                (a)

              	
                the
      Project is diligently constructed, developed, equipped, operated and
      maintained in accordance with the Cashflow Model, Good Industry Practice,
      and in accordance with Environmental Law and Authorisations in all
      material respects; and

              

      

       

      
        	
                (b)

              	
                all
      Project Assets are maintained in all material respects in good and
      efficient operating condition, reasonable wear and tear and shutdowns for
      maintenance in the ordinary course of business
  excepted.

              

      

       

      
        	
                10.2

              	
                Project
      Covenants

              

      

       

      
        	
                (a)

              	
                Project Assets: The Borrower
      must:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                own,
      lease or otherwise hold all Project
Assets;

              

      

       

      
        
          
            
              	
                      Bridge Facility
      Agreement

                    	
                      Page
    39

                    

            

          

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	 	
                 

              

      

       

      
        	
                 
      

              	
                (2)

              	
                ensure
      that no person other than itself has any right, title or interest in the
      Project Assets other than under a Permitted Encumbrance or by virtue of a
      statutory interest affecting the Mining Rights;
  and

              

      

       

      
        	
                 
      

              	
                (3)

              	
                not
      Dispose of, decrease or diminish its interest in the Project Assets
      without the prior written consent of the
Agent.

              

      

       

      
        	
                (b)

              	
                Force majeure: Each
      Transaction Party must take all action as is reasonably open to it to
      cause any Force Majeure Event affecting the Project to be remedied as soon
      as possible after that Force Majeure Event occurs, but the party affected
      is not obliged to incur expenditure to overcome the events or
      circumstances which caused the Force Majeure Event which would make
      uneconomic (in the opinion of the Agent) the continued development of the
      Project.

              

      

       

      
        	
                (c)

              	
                Access: Each Transaction
      Party must, at the request of the Agent, ensure that the Finance Parties
      and representatives of the Finance Parties on giving reasonable notice are
      allowed at all reasonable times and with reasonable frequency to have
      access to the Project Area and the Project Assets to inspect any of the
      Project Assets and to inspect any books, records, data and information
      which are in the custody or possession of a Transaction Party; provided,
      however, that the right of access and inspection must be undertaken at a
      Finance Party’s own risk in a manner that does not unreasonably disrupt
      the business of the Transaction Party and the operation of the Project,
      and must be subject to:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                the
      confidentiality provision set out in this agreement or in any other
      agreement between a Transaction Party and a Finance Party;
    and

              

      

       

      
        	
                 
      

              	
                (2)

              	
                the
      applicable health and safety laws and regulations and related policies
      adopted by a Transaction Party.

              

      

       

      
        	
                (d)

              	
                Processing of non-Project
      metal: The Borrower must not, and no Project Asset may be used to,
      mine, extract, mill or process any ore, gold, metals or concentrates which
      are mined, extracted or derived outside the Project
  Area.

              

      

       

      
        	
                (e)

              	
                Cashflow Model: The
      Borrower must not amend or vary the Cashflow Model without the prior
      written consent of the Financiers.

              

      

       

      
        	
                10.3

              	
                Environmental
      issues

              

      

       

      Each
Transaction Party must ensure that the Borrower:

       

      
        	
                (a)

              	
                complies
      in all material respects with all Environmental Laws with respect to the
      Project;

              

      

       

      
        	
                (b)

              	
                obtains
      and complies with all Environmental Approvals required in connection with
      the development and operation of the Project, except for any Environmental
      Approval which as a matter of law or Good Industry Practice cannot or
      should not reasonably be obtained until shortly before the events to which
      it relates occurs where those events are not imminent;
  and

              

      

       

      
        	
                (c)

              	
                promptly
      notifies the Agent of all material claims, complaints or notices
      concerning its compliance with Environmental Laws and Environmental
      Approvals.

              

      

       

      
        	
                10.4

              	
                Mining
      Rights

              

      

       

      Each
Transaction Party must ensure that:

       

      
        	
                (a)

              	
                the
      Borrower has and continues to have title to the Mining
    Rights;

              

      

       

      
        	
                (b)

              	
                the
      Borrower is entitled to acquire or have issued to it the Mining Rights not
      presently held by it that are necessary for the development, construction
      and operation of the Project in accordance with the Cashflow
      Model;

              

      

       

      
        
          
            
              	
                      Bridge Facility
      Agreement

                    	
                      Page
    40

                    

            

          

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
         

        
          	 	
                   

                

        

         

      

      
        	
                (c)

              	
                the
      Borrower takes, or procures to be taken, all action (including the timely
      payment of annual maintenance fees, recording of instruments, performance
      of annual assessment work, or otherwise) necessary to ensure that all
      conditions and requirements relating to the Mining Rights are observed and
      performed and that the Mining Rights remain valid and are in full force
      and effect; and

              

      

       

      
        	
                (d)

              	
                the
      Mining Rights are free of Encumbrances other than Permitted
      Encumbrances.

              

      

       

      
        	
                10.5

              	
                Corporate
      budget

              

      

       

      A
Transaction Party must not amend or change the Corporate Budget in any material
respect without the Agent’s prior written consent (not to be unreasonably
withheld or delayed).

       

      
        	
                10.6

              	
                Provision
      of information and reports

              

      

       

      Each
Transaction Party must ensure the Agent is provided with the following, which
must in the case of the information referred to in clauses 10.6(b), 10.6(c),
10.6(d), 10.6(e), and 10.6(f) be in the form and contain information
satisfactory to the Agent:

       

      
        	
                (a)

              	
                Financial
      Reports:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                as
      soon as practicable and no later than 120 days after the end of a
      financial year, copies of the consolidated annual audited Financial Report
      of the Borrower and its Subsidiaries;
and

              

      

       

      
        	
                 
      

              	
                (2)

              	
                as
      soon as practicable and no later than 45 days after each Quarterly Date,
      copies of the unaudited quarterly Financial Report of the Borrower and its
      Subsidiaries for the Quarter immediately preceding that Quarterly
      Date;

              

      

       

      
        	
                (b)

              	
                Corporate Budget: no
      later than the date which is 30 days after 31 December of each year, a
      copy of the proposed Corporate Budget for the subsequent 12 month
      period;

              

      

       

      
        	
                (c)

              	
                monthly reports: no
      later than 21 days after the end of each calendar
  month:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                a
      copy of the management reports in respect of the development of the
      Project, including cash flow and solvency
  reports;

              

      

       

      
        	
                 
      

              	
                (2)

              	
                a
      report detailing as appropriate having regard to the status of development
      of the Project:

              

      

       

      
        	
                 
      

              	
                ·

              	
                the
      development, construction, commissioning, start-up and operation of the
      Project and production statistics;

              

      

       

      
        	
                 
      

              	
                ·

              	
                actual
      and forecast operating costs and Project Costs (including capital costs);
      and

              

      

       

      
        	
                 
      

              	
                ·

              	
                the
      performance and initiatives of the Borrower with respect to safety, the
      personnel and employees of the Borrower, legal and regulatory compliance,
      and environmental compliance and
rehabilitation;

              

      

       

      
        	
                 
      

              	
                (3)

              	
                a
      copy of the monthly management accounts of the
  Borrower;

              

      

       

      
        	
                (d)

              	
                Proceeds Account report:
      no later than 21 days after the end of each calendar month, a statement
      summarising all deposits to and withdrawals from the Proceeds
      Account;

              

      

       

      
        	
                (e)

              	
                Quarterly compliance
      certificate: no later than 30 days after each Quarterly Date, a
      certificate signed by at least 1 Officer of the Borrower
      stating:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                any
      non-compliance of a Transaction Party with a covenant in the Transaction
      Documents and any Default that has occurred and is continuing;
      and

              

      

       

      
        	
                 
      

              	
                (2)

              	
                the
      full details of that non-compliance or Default and the remedial action
      being taken or proposed to cure that non-compliance or
      Default;

              

      

       

      
        	
                (f)

              	
                exploration report: no
      later than 30 days after the end of each Quarter, a report on exploration
      conducted by the Borrower;

              

      

       

      
        
          
            
              	
                      Bridge Facility
      Agreement

                    	
                      Page
    41

                    

            

          

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	 	
                 

              

      

       

      
        	
                (g)

              	
                environmental reports:
      no later than 30 days before the commencement of the Borrower’s financial
      year, a report detailing any breaches or potential breaches of
      Environmental Laws or Environmental Approvals, and any Environmental
      Liabilities;

              

      

       

      
        	
                (h)

              	
                Group Structure Diagram:
      an updated Group Structure Diagram on each occasion that the then current
      Group Structure Diagram becomes incorrect or
  misleading;

              

      

       

      
        	
                (i)

              	
                documents issued: a copy
      of all notices, circulars, documents and other written information issued
      by the Borrower to its shareholders or filed by the Borrower under
      Securities Laws or filed with the TSX or the AMEX and available to the
      public at the same time as their issue or filing;
  and

              

      

       

      
        	
                (j)

              	
                other information: any
      other information which the Agent reasonably
      requests in relation to it, any of its assets or the
    Project.

              

      

       

      
        	
                10.7

              	
                Proper
      accounts

              

      

       

      Each
Transaction Party must:

       

      
        	
                (a)

              	
                keep
      accounting records which give a true and fair view of its financial
      condition and state of affairs;

              

      

       

      
        	
                (b)

              	
                ensure
      that the accounts it provides in respect of the Borrower under
      clause 10.6 are prepared in accordance with the Accounting Standards;
      and

              

      

       

      
        	
                (c)

              	
                ensure
      that the accounts it provides in respect of the Subsidiaries of the
      Borrower under clause 10.6 are prepared in accordance with the
      generally accepted accounting principles in the country in which they are
      incorporated.

              

      

       

      
        	
                10.8

              	
                Notices
      to the Agent

              

      

       

      Each
Transaction Party must notify the Agent as soon as it becomes aware
of:

       

      
        	
                (a)

              	
                any
      Default occurring;

              

      

       

      
        	
                (b)

              	
                any
      material breach of, or material default under, any Document to which it is
      a party;

              

      

       

      
        	
                (c)

              	
                any
      material breach of any applicable license or law that may potentially
      affect the validity or good standing of the Project or the Project Assets,
      the Borrower’s legal and beneficial title to the Project Assets or the
      value of the Secured Property;

              

      

       

      
        	
                (d)

              	
                any
      event or circumstance which entitles a person to cancel, terminate or
      suspend any Mining Rights, Environmental Approvals, Authorisations or a
      Project Document;

              

      

       

      
        	
                (e)

              	
                any
      change in statutory requirements that may have a material effect on
      mining, metallurgical methods, tailings disposal, gold production or title
      with respect to the Project;

              

      

       

      
        	
                (f)

              	
                a
      revised downward estimate of Proved Reserves and Probable Reserves in
      respect of the Project, other than as a result of
  mining;

              

      

       

      
        	
                (g)

              	
                a
      material change in Key Personnel, mining or metallurgical method in
      respect of the Project;

              

      

       

      
        	
                (h)

              	
                any
      proposed changes to the Project
Documents;

              

      

       

      
        	
                (i)

              	
                any
      proposal to enter into an agreement which is material to the development,
      construction, ramp-up or operation of the
  Project;

              

      

       

      
        	
                (j)

              	
                any
      material adverse change in the position or prospects of the Project, the
      Borrower or a Transaction Party;

              

      

       

      
        	
                (k)

              	
                any
      representation, warranty, action or statement made, or taken to be made,
      by it is or becomes false, misleading or
  incorrect;

              

      

       

      
        	
                (l)

              	
                any
      intention by it to exercise any right, power or remedy under any Document
      to which it is a party as a consequence of any default under
      it;

              

      

       

      
        
          
            
              	
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                (m)

              	
                any
      breach of an Authorisation;

              

      

       

      
        	
                (n)

              	
                any
      breach of, or claim being made against a Transaction Party under, any
      Environmental Laws or Environmental
Approvals;

              

      

       

      
        	
                (o)

              	
                any
      material notices given or received by a Transaction Party under any
      Project Document;

              

      

       

      
        	
                (p)

              	
                any
      litigation, arbitration, administration or other proceeding in respect of
      it or any of its assets being commenced or threatened which is
      either:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                in
      excess of US$500,000 (or the equivalent amount in another currency);
      or

              

      

       

      
        	
                 
      

              	
                (2)

              	
                if
      adversely determined would have or be likely to have a Material Adverse
      Effect;

              

      

       

      
        	
                (q)

              	
                a
      demand under a Guarantee given by that Transaction
  Party;

              

      

       

      
        	
                (r)

              	
                any
      Encumbrance that exists over any of its
assets;

              

      

       

      
        	
                (s)

              	
                any
      dispute between a Transaction Party and a Government Agency or any
      proposal of any Government Agency to compulsorily acquire any of its
      assets;

              

      

       

      
        	
                (t)

              	
                the
      acquisition by it or any of its Subsidiaries of any interest in real
      property;

              

      

       

      
        	
                (u)

              	
                a
      proposed change in the development of the Project from that contemplated
      in the Cashflow Model and the mine plans delivered to the Agent under
      clause 2.1(g);

              

      

       

      
        	
                (v)

              	
                any
      replacement of a member of, or the addition of a member to, the senior
      operating and corporate management team which manages the operations of
      the Project or the Borrower;

              

      

       

      
        	
                (w)

              	
                any
      material land claims or other claims with respect to the Project, Project
      Area and the Project Assets and any material dispute with landowners
      located in or around the Project Area;
and

              

      

       

      
        	
                (x)

              	
                any
      Force Majeure Event.

              

      

       

      
        	
                10.9

              	
                Corporate
      existence

              

      

       

      Each
Transaction Party must ensure that it:

       

      
        	
                (a)

              	
                does
      everything necessary to maintain its corporate existence in good
      standing;

              

      

       

      
        	
                (b)

              	
                does
      not transfer its jurisdiction of incorporation without the prior written
      consent of the Agent; and

              

      

       

      
        	
                (c)

              	
                does
      not enter into any merger, amalgamation, consolidation or reconstruction
      without the Agent’s prior written consent (not to be unreasonably withheld
      or delayed).

              

      

       

      
        	
                10.10

              	
                Compliance

              

      

       

      Each
Transaction Party must: 

       

      
        	
                (a)

              	
                comply
      with all its obligations under each Document to which it is a party;
      and

              

      

       

      
        	
                (b)

              	
                ensure
      that no Event of Default occurs.

              

      

       

      
        	
                10.11

              	
                Maintenance
      of capital

              

      

       

      A
Transaction Party must not without the Agent’s prior written
consent:

       

      
        	
                (a)

              	
                call
      up or pass a resolution to call up its unpaid share
    capital;

              

      

       

      
        	
                (b)

              	
                reduce
      or pass a resolution to reduce its
capital;

              

      

       

      
        	
                (c)

              	
                buy-back
      or pass a resolution to buy-back, any of its shares;
  or

              

      

      
         

        
          
            
              
                	
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                (d)

              	
                attempt
      or take any steps to do anything which it is not permitted to do under
      clauses 10.11(a), 10.11(b) or
10.11(c).

              

      

       

      
        	
                10.12

              	
                Compliance
      with laws and Authorisations

              

      

       

      Each
Transaction Party must:

       

      
        	
                (a)

              	
                comply
      in all material respects with all laws and legal requirements, including
      each judgement, award, decision, finding or any other determination of a
      Government Agency, which applies to it or any of its
    assets;

              

      

       

      
        	
                (b)

              	
                obtain,
      maintain and comply in all material respects with all Authorisations
      required:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                for
      the enforceability against it of each Document to which it is a party, or
      to enable it to perform its obligations under each Document to which it is
      a party;

              

      

       

      
        	
                 
      

              	
                (2)

              	
                in
      relation to it or any of its assets;
and

              

      

       

      
        	
                 
      

              	
                (3)

              	
                for
      the operation of the Project;

              

      

       

      
        	
                (c)

              	
                not
      do anything which would prevent the renewal of any Authorisation referred
      to in clause 10.12(b) or cause it to be renewed on less favourable
      terms.

              

      

       

      
        	
                10.13

              	
                Payment
      of debts, outgoings and Taxes

              

      

       

      
        	
                (a)

              	
                Each
      Transaction Party must pay or cause to be paid its debts and financial
      obligations including all rates, rents and other outgoings when due and
      payable, except where that Transaction Party is contesting its liability
      to pay that financial obligation, and has reasonable grounds to do so, in
      appropriate proceedings reasonably satisfactory to the
      Financiers.

              

      

       

      
        	
                (b)

              	
                Each
      Transaction Party must pay or cause to be paid all Taxes when due, other
      than Contested Taxes, and will withhold and remit to the appropriate
      Government Agency all accounts on account of Taxes required to be withheld
      or deducted from payments made by a Transaction
  Party.

              

      

       

      
        	
                (c)

              	
                Each
      Transaction Party must set aside sufficient reserves to cover any
      Contested Taxes.

              

      

       

      
        	
                (d)

              	
                Each
      Transaction Party must pay or cause to be paid all Contested Taxes when
      the terms of any final determination or settlement require those Contested
      Taxes to be paid, unless failure to pay any Contested Taxes when due may
      have a Material Adverse Effect, in which case those the Contested Taxes
      must be paid when due.

              

      

       

      
        	
                10.14

              	
                Project
      Documents

              

      

       

      
        	
                (a)

              	
                A
      Transaction Party must not without the prior written consent of the
      Agent:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                materially
      amend or vary, or agree to a material amendment or variation
      of;

              

      

       

      
        	
                 
      

              	
                (2)

              	
                terminate,
      rescind or discharge (except by
performance);

              

      

       

      
        	
                 
      

              	
                (3)

              	
                grant
      any waiver, time or indulgence in respect of any material obligation
      under;

              

      

       

      
        	
                 
      

              	
                (4)

              	
                do
      or omit to do anything which may adversely affect the provisions or
      operation of; or

              

      

       

      
        	
                 
      

              	
                (5)

              	
                do
      or omit to do anything which would give any other person legal or
      equitable grounds to do anything in clause 10.14(a)(1) to (4) in
      respect of,

              

      

       

      any
Project Document to which it is a party.

       

      
        	
                (b)

              	
                Notwithstanding
      the definition of Permitted Financial Indebtedness, a Transaction Party
      must not enter into any agreement (other than Material Agreements existing
      as at the date of this agreement) relating to the development and
      construction of the Project, the refining or treatment of Product or any
      other agreement or contract which relates to the Project where the
      aggregate amount of payments to be made under that agreement or contract
      is anticipated to exceed US$1,000,000, without the prior written consent
      of the Agent. For the avoidance of doubt, this clause applies to capital
      equipment leases to be entered into in respect of the Project, other than
      capital equipment leases existing as at the date of this
      agreement.

              

      

       

      
        
          
            
              	
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                (c)

              	
                If
      a Transaction Party proposes to enter into a Material Agreement, the Agent
      may request the Transaction Party and each other party to the Material
      Agreement to execute a direct agreement or tripartite agreement in form
      and substance satisfactory to the
Agent.

              

      

       

      
        	
                (d)

              	
                If
      the Agent makes a request under clause 10.14(c) that a direct agreement or
      tripartite agreement be entered into in respect of a Material Agreement,
      no Transaction Party may enter into that Material Agreement unless a
      direct agreement or tripartite agreement has been executed between each of
      the parties to that Material Agreement in form and substance satisfactory
      to the Agent.

              

      

       

      
        	
                (e)

              	
                The
      parties agree that no term contained in a direct agreement affects the
      rights and obligations of the parties under any other Transaction
      Document.

              

      

       

      
        	
                (f)

              	
                Each
      Transaction Party must do all things necessary to enforce all of its
      rights, powers and remedies under each Project Document to which it is a
      party.

              

      

       

      
        	
                10.15

              	
                Direct
      Agreements

              

      

       

      As soon
as reasonably practicable after the date of this Agreement, the Borrower will
use reasonable efforts to ensure that the Direct Agreements are executed on
terms reasonably satisfactory to the Agent.

       

      
        	
                10.16

              	
                Amendments
      to constitution

              

      

       

      A
Transaction Party must not amend its memorandum and articles of association,
articles of incorporation, articles of organization, by-laws, constitution,
operating agreement, or other constating documents (as applicable) without the
Agent’s prior written consent, which consent must not be unreasonably withheld
or delayed.

       

      
        	
                10.17

              	
                Negative
      pledge and disposal of assets

              

      

       

      
        	
                (a)

              	
                A
      Transaction Party must not create or allow to exist or agree to any
      interest or Encumbrance over any of its assets other than a Permitted
      Encumbrance.

              

      

       

      
        	
                (b)

              	
                A
      Transaction Party must not acquire an asset which is, or on its
      acquisition will be, subject to an Encumbrance which is not a Permitted
      Encumbrance.

              

      

       

      
        	
                (c)

              	
                A
      Transaction Party must not without the prior written consent of the Agent
      (that consent not to be unreasonably withheld in the case of a Disposal
      which is not a Disposal of a Project Asset) Dispose of any of its assets
      other than:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                a
      Disposal (which is not a Disposal of a Project Assets) of an asset
      which:

              

      

       

      
        	
                 
      

              	
                ·

              	
                has
      a value which is less than US$250,000;
and

              

      

       

      
        	
                 
      

              	
                ·

              	
                is
      sold in the ordinary course of business and at market
    value,

              

      

       

      and the
aggregate of assets sold by all Transaction Parties in the preceding 12 month
period is less than US$500,000; or

       

      
        	
                 
      

              	
                (2)

              	
                a
      Disposal of Product; or

              

      

       

      
        	
                 
      

              	
                (3)

              	
                a
      Disposal for valuable consideration and on arm’s length commercial terms
      of assets that are no longer required for the proper and efficient
      operation of the Project because of replacement, obsolescence or
      otherwise, and where the Disposal relates to the replacement of assets,
      the asset is replaced with one or more assets having a similar function or
      comparable or superior type, value and
quality.

              

      

      
         

        
          
            
              
                	
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                (d)

              	
                A
      Transaction Party must not allow any other person to have a right or power
      to receive or claim any rents, profits, receivables, money or moneys worth
      (whether capital or income) in respect of its assets other than under a
      Permitted Encumbrance.

              

      

       

      
        	
                (e)

              	
                A
      Transaction Party must not enter into any arrangement under which money or
      the benefit of a bank or other account may be applied, set-off or made
      subject to a combination of accounts, except for a netting or set-off
      arrangement in the ordinary course of its ordinary banking arrangements
      for the purpose of netting debit and credit
  balances.

              

      

       

      
        	
                (f)

              	
                A
      Transaction Party must not enter into any arrangement which, if complied
      with, would prevent any Transaction Party from complying with its
      obligations under the Transaction
Documents.

              

      

       

      
        	
                10.18

              	
                No
      change to business

              

      

       

      Each
Transaction Party:

       

      
        	
                (a)

              	
                must
      ensure that its business is operated in accordance with the Corporate
      Budget; and

              

      

       

      
        	
                (b)

              	
                must
      not engage in any business other than, or do anything which would result
      in substantial changes to, its existing core businesses and operations of
      mineral exploration, mining or processing, except with the prior written
      consent of the Agent.

              

      

       

      
        	
                10.19

              	
                Financial
      accommodation and Financial
Indebtedness

              

      

       

      
        	
                (a)

              	
                A
      Transaction Party must not subscribe for capital in an entity, provide any
      financial accommodation, or give any Surety Obligation in respect of any
      financial accommodation, to or for the benefit of any Person, other than
      Permitted Financial Accommodation.

              

      

       

      
        	
                (b)

              	
                A
      Transaction Party must not incur any Financial Indebtedness other than
      Permitted Financial Indebtedness.

              

      

       

      
        	
                (c)

              	
                A
      Transaction Party may not enter into any Hedging Agreement without the
      consent of the Agent.

              

      

       

      
        	
                10.20

              	
                Arm’s
      length transactions

              

      

       

      A
Transaction Party must not:

       

      
        	
                (a)

              	
                enter
      into an agreement with any Person;

              

      

       

      
        	
                (b)

              	
                acquire
      or Dispose of an asset;

              

      

       

      
        	
                (c)

              	
                obtain
      or provide a service;

              

      

       

      
        	
                (d)

              	
                obtain
      a right or incur an obligation; or

              

      

       

      
        	
                (e)

              	
                implement
      any other transaction,

              

      

       

      unless it
does so on terms which are no less favourable to it than arm’s length terms.
This clause does not apply to the Permitted Financial Accommodation which can be
characterised as an Inter-Company Claim.

       

      
        	
                10.21

              	
                No
      new Subsidiaries

              

      

       

      A
Transaction Party must not incorporate any new Subsidiary (whether wholly-owned
or otherwise) without the prior written consent of the Agent unless, within 10
Business Days after the incorporation of the new Subsidiary, that
Subsidiary:

       

      
        	
                (a)

              	
                executes
      and delivers to the Agent an officer’s certificate in the form of Schedule
      5 in respect of that Subsidiary;

              

      

       

      
        	
                (b)

              	
                executes
      and delivers to the Agent a Guarantee Assumption
  Agreement;

              

      

      
         

        
          
            
              
                	
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                (c)

              	
                executes
      and delivers to the Agent any Encumbrance which the Agent requests to
      secure the Secured Moneys;

              

      

       

      
        	
                (d)

              	
                if
      required, duly stamps each document referred to in this clause 10.21;
      and

              

      

       

      
        	
                (e)

              	
                gives
      to the Agent all duly completed forms, notices and other documents
      required to register or file with the appropriate Government Agency any
      document referred to in this clause
10.21.

              

      

       

      
        	
                10.22

              	
                Restrictions
      on Distributions and fees

              

      

       

      A
Transaction Party must not:

       

      
        	
                (a)

              	
                make
      any Distribution; or

              

      

       

      
        	
                (b)

              	
                pay
      any director fees, management fees, consultancy fees or other like
      payments to any director or Associate of a Transaction Party unless those
      fees or other payments are:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                reasonable
      and are no more or less favourable than it is reasonable to expect would
      be the case if the relevant persons were dealing with each other at arm’s
      length; or

              

      

       

      
        	
                 
      

              	
                (2)

              	
                paid
      with the Agent’s prior consent.

              

      

       

      
        	
                10.23

              	
                Undertakings
      regarding Secured Property

              

      

       

      Each
Transaction Party must:

       

      
        	
                (a)

              	
                maintenance of the Secured
      Property: subject to clause
10.17:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                maintain
      and protect its Secured Property;

              

      

       

      
        	
                 
      

              	
                (2)

              	
                keep
      its Secured Property in a good state of repair and in good working order
      allowing for fair wear and tear and shutdowns for maintenance in the
      ordinary course of business;

              

      

       

      
        	
                 
      

              	
                (3)

              	
                remedy
      every material defect in its title to any part of its material Secured
      Property (including the Mining
Rights);

              

      

       

      
        	
                 
      

              	
                (4)

              	
                take
      or defend all legal proceedings to protect or recover any of its Secured
      Property; and

              

      

       

      
        	
                 
      

              	
                (5)

              	
                keep
      its Secured Property valid and subsisting and free from liability to
      forfeiture, cancellation, avoidance or
loss;

              

      

       

      
        	
                (b)

              	
                further
      security:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                do
      anything which the Agent reasonably requests to maintain the priority of
      its Security, or secures to the Finance Parties its Secured Property in a
      manner consistent with any provision of any Transaction Document, or aids
      in the exercise of any Power of a Finance Party, including, the execution
      of any document or the execution and delivery of blank
      transfers;

              

      

       

      
        	
                 
      

              	
                (2)

              	
                when
      the Agent requests, execute a legal or statutory mortgage in favour of the
      Financer over the Borrower’s right, title and interest in any real
      property acquired by it on or after the date of this agreement in form and
      substance required by the Agent, but the Agent cannot require an
      obligation which is more onerous than any obligation contained in any
      Transaction Document;

              

      

       

      
        	
                 
      

              	
                (3)

              	
                use
      its best endeavours to record any mortgage executed under
      clause 10.23(b)(2); and

              

      

       

      
        	
                 
      

              	
                (4)

              	
                if
      a Transaction Party acquires any material
  assets:

              

      

       

      
        	
                 
      

              	
                ·

              	
                promptly
      notify the Agent of that acquisition;
and

              

      

      
         

        
          
            
              
                	
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                ·

              	
                at
      the request of the Agent, procure the company that has acquired those
      assets to grant security over those assets in favour of the Finance
      Parties in form and substance required by the Agent, but the Agent cannot
      require an obligation which is more onerous than any obligation contained
      in any Transaction Document;

              

      

       

      
        	
                (c)

              	
                possession and
      control: deposit with the
      Security Agent all documents of title, chattel paper and instruments
      (other than those negotiated or proposed to be negotiated in the ordinary
      course of business) and take or cause to be taken all such actions as are
      necessary to provide the Security Agent with control over all investment
      property, in each case with respect to any such assets in which the
      Borrower now or hereafter has any right, title or
  interest;

              

      

       

      
        	
                (d)

              	
                registration and protection of
      security: ensure that its Security is registered, recorded, and
      filed in all registers in all jurisdictions in which it must be
      registered, recorded or filed to ensure the enforceability, validity and
      priority of the Security against all persons and to be effective as a
      security;

              

      

       

      
        	
                (e)

              	
                no partnership or joint
      venture: not enter into any profit sharing arrangement in relation
      to its Secured Property or any partnership or joint venture with any other
      person without the Agent’s written
consent;

              

      

       

      
        	
                (f)

              	
                no Encumbrances: cause
      any Encumbrance other than a Permitted Encumbrance which is lodged in
      respect of its Secured Property, other than an Encumbrance lodged by the
      Finance Parties, to be removed as soon as reasonably practicable but in
      any event within 15 Business Days after the date that it becomes
      aware of its existence; and

              

      

       

      
        	
                (g)

              	
                no caveats: cause any
      caveat which is lodged in respect of its Secured Property, other than a
      caveat lodged by the Finance Parties, to be removed as soon as reasonably
      practicable but in any event within 10 Business Days after the date
      that it becomes aware of its
existence.

              

      

       

      
        	
                10.24

              	
                Insurance

              

      

       

      
        	
                (a)

              	
                General requirements:
      Each Security Provider must insure and keep insured all its property
      (including, in respect of the Borrower, the Project
    Assets):

              

      

       

      
        	
                 
      

              	
                (1)

              	
                for
      amounts and against risks for which a person holding assets and carrying
      on a business similar to that of the Security Provider would prudently
      take out insurance;

              

      

       

      
        	
                 
      

              	
                (2)

              	
                against
      damage, destruction and any other risk to their full replacement
      value;

              

      

       

      
        	
                 
      

              	
                (3)

              	
                against
      workers’ compensation, public liability and business interruption;
      and

              

      

       

      
        	
                 
      

              	
                (4)

              	
                for
      any other risk to the extent and for the amounts the Agent may reasonably
      require and notify to the Security Provider from time to
    time.

              

      

       

      
        	
                (b)

              	
                Payment of premiums:
      Each Security Provider must punctually pay all premiums and other amounts
      necessary to effect and maintain in force each insurance
      policy.

              

      

       

      
        	
                (c)

              	
                Contents of insurance
      policy: Each Security Provider must use commercially reasonable
      best efforts to ensure that every insurance policy (other than worker’s
      compensation, directors’ and officers’ liability and public
      liability):

              

      

       

      
        	
                 
      

              	
                (1)

              	
                is
      taken out in the name of the Security Provider, notes each Finance Party
      as an additional insured and insures each of their insurable
      interests;

              

      

       

      
        	
                 
      

              	
                (2)

              	
                names
      the Agent as the loss payee;

              

      

       

      
        	
                 
      

              	
                (3)

              	
                cannot
      be terminated or varied by the insurer for any reason including the
      non-payment of the premium or any other amount in respect of the insurance
      policy, unless the Agent is given 30 days prior written
      notice;

              

      

       

      
        	
                 
      

              	
                (4)

              	
                provides
      that notice of any occurrence given by one insured party will be regarded
      as notice given by all insured parties and that failure by one insured
      party to observe and fulfil the conditions of the policy will not
      prejudice the rights of any other insured
party;

              

      

      
         

        
          
            
              
                	
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                (5)

              	
                insures
      each Finance Party’s interest up to the limits of the policy regardless of
      any breach or violation by the Borrower (whichever is applicable) of any
      warranties, declarations or conditions contained in that policy;
      and

              

      

       

      
        	
                 
      

              	
                (6)

              	
                includes
      any other terms and conditions which the Agent may reasonable
      require.

              

      

       

      
        	
                (d)

              	
                Reputable insurer: Each
      Security Provider must take out each insurance policy with a reputable and
      substantial insurer approved by the Agent (whose approval is not to be
      unreasonably withheld).

              

      

       

      
        	
                (e)

              	
                No prejudice: Each
      Security Provider must not do or omit to do, or allow or permit to be done
      or not done, anything which may materially prejudice any insurance
      policy.

              

      

       

      
        	
                (f)

              	
                Deliver documents: Each
      Security Provider must promptly deliver to the
  Agent:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                adequate
      evidence as to the existence and currency of the insurance required under
      this clause 10.24; and

              

      

       

      
        	
                 
      

              	
                (2)

              	
                any
      other detail with respect to the insurance which the Agent may reasonably
      require and notify to the Security Provider from time to
    time.

              

      

       

      
        	
                (g)

              	
                No change to policy: A
      Security Provider must not rescind, terminate, cancel or make a material
      change to any insurance policy without the Agent’s written consent, except
      where the variation is to increase coverage, the amount insured by the
      policy or amend the scheduled insured property where that amendment
      results from a Disposal permitted under clause
  10.17.

              

      

       

      
        	
                (h)

              	
                Assistance in recovery of
      money: Each Security Provider must do all things reasonably
      required by a Finance Party to enable that Finance Party to recover any
      money due in respect of an insurance
policy.

              

      

       

      
        	
                (i)

              	
                Notification by Security
      Provider: Each Security Provider must notify the Agent as soon as
      reasonably practicable after it becomes aware
  of:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                an
      event which in relation to its property gives rise to a claim of
      US$250,000 or more under an insurance policy;
  and

              

      

       

      
        	
                 
      

              	
                (2)

              	
                the
      cancellation or variation for any reason of any insurance policy in
      relation to its property.

              

      

       

      
        	
                (j)

              	
                Dealing with insurance policy
      proceeds:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                If
      the claim by a Transaction Party is greater than US$1,000,000, or if the
      claim by a Transaction Party is less than US$1,000,000 but the Agent
      determines that there is not sufficient business interruption insurance or
      other funds available to the Borrower to ensure that the Borrower can pay
      or repay any part of the Secured Moneys due and payable by it, the Agent
      may direct that Transaction Party with respect to a particular insurance
      claim, to irrevocably authorise, instruct and direct the insurer to pay
      the proceeds of that claim up to the amount of the Secured Moneys to the
      Financiers.

              

      

       

      
        	
                 
      

              	
                (2)

              	
                If
      an Event of Default has occurred and is continuing, the proceeds in
      respect of any insurance policy must be used to repay the Secured Moneys
      outstanding at that time or for any other purpose which the Agent
      approves.

              

      

       

      
        	
                 
      

              	
                (3)

              	
                The
      proceeds in respect of any claim under an insurance policy in respect of
      lost, destroyed or damaged property of a Transaction Party that are not
      being applied in accordance with clauses 10.24(j)(1) and 10.24(j)(2), must
      be applied towards the replacement or reinstatement of that
      property.

              

      

       

      
        	
                 
      

              	
                (4)

              	
                Clauses 10.24(j)(1),
      10.24(j)(2)and (3) do not apply to proceeds received from any workers’
      compensation or public liability policy to the extent that the proceeds
      are paid to a person entitled to be compensated under the workers’
      compensation or public liability
policy.

              

      

      
         

        
          
            
              
                	
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                (5)

              	
                Any
      amount received by the Agent in accordance with clauses 10.24(j)(1) or
      10.24(j)(2) may be applied by the Agent as a prepayment of the Principal
      Outstanding, and clause 3.4(d) will apply to the
    prepayment.

              

      

       

      
        	
                (k)

              	
                Power to take
      proceedings: If an Event of Default has occurred and is continuing
      and a Receiver has not been appointed, the Security Agent alone has full
      power to make, enforce, settle, compromise, sue on and discharge all
      claims and recover and receive all moneys payable in respect
      of:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                any
      claim under any insurance policy;
and

              

      

       

      
        	
                 
      

              	
                (2)

              	
                any
      compensation claim in respect of any injury to an employee of a Finance
      Party, Receiver or Attorney suffered while exercising or attempting to
      exercise any Power.

              

      

       

      
        	
                10.25

              	
                Subordination
      of Inter-Company Claims

              

      

       

      Each
Transaction Party must ensure that:

       

      
        	
                (a)

              	
                all
      the Inter-Company Claims of a Group Member against the Borrower and
      payment (from whatever source) of, and the rights and claims of each Group
      Member against the Borrower in respect of those Inter-Company Claims are
      subordinated and postponed and made subject in right of payment to all the
      Secured Moneys and payment (from whatever source) of, and the rights and
      claims of the Finance Parties in respect of, all the Secured
      Moneys;

              

      

       

      
        	
                (b)

              	
                until
      all the Secured Moneys have been paid in
full:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                any
      Inter-Company Claims owed by the Borrower must not (without the prior
      written consent of the Agent) be paid or repaid;
  and

              

      

       

      
        	
                 
      

              	
                (2)

              	
                a
      Group Member other than the Borrower must not receive, and the Borrower
      must not pay or repay, any of the Inter-Company Claims to, or at the
      direction of, another Group Member or any person acting, or purporting to
      act, on behalf of a Group Member;

              

      

       

      
        	
                (c)

              	
                the
      subordination effected by this clause applies at all times including if
      and while a Group Member is in
liquidation;

              

      

       

      
        	
                (d)

              	
                if
      a Group Member makes a claim against a Transaction Party, each other
      Transaction Party must indemnify the Finance Parties for any Loss they
      incur as a result of that claim by the Group
  Member;

              

      

       

      
        	
                (e)

              	
                if,
      on liquidation of a Transaction Party, there is a distribution of a
      Transaction Party’s assets including payment in cash, property or
      securities, to creditors of that Transaction Party on liquidation, all of
      the Secured Moneys must be paid in full in cash before a payment is made
      for or on account of the Inter-Company
Claims;

              

      

       

      
        	
                (f)

              	
                until
      the Secured Moneys and all moneys due or owing under the Transaction
      Documents have been paid in full, until the subordination under this
      clause has been terminated and until this agreement has been fully
      discharged, a Transaction Party must
not:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                make
      a claim or exercise a right, power or remedy against another Transaction
      Party under any agreement, document or
  otherwise;

              

      

       

      
        	
                 
      

              	
                (2)

              	
                accept,
      or ensure the grant of, or permit any Encumbrance or Guarantee from a
      Transaction Party or any surety in favour of another Transaction Party to
      exist;

              

      

       

      
        	
                 
      

              	
                (3)

              	
                exercise,
      or attempt to exercise, any right of set-off against, nor realise any
      Encumbrance from, a Transaction Party or any surety;
  or

              

      

       

      
        	
                 
      

              	
                (4)

              	
                raise
      any defence or counterclaim in reduction or discharge of any obligation
      owed by a Transaction Party to another Transaction Party or any
      surety.

              

      

      
         

        
          
            
              
                	
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                10.26

              	
                Share
      Qualification

              

      

       

      If at any
time any order, ruling, registration, notice or filing pursuant to any
securities laws of Canada or any province thereof is required to ensure that any
Shares issuable upon the conversion of capitalised interest or upon the exercise
of any Warrants, in each case on any date following the date four months
following the date hereof, are issued in compliance with all such laws or to
ensure that any such Shares, once issued, are not subject to any general
restriction as to the resale thereof under the securities laws of any province
of Canada, the Borrower must take all such action as may be necessary to make or
obtain such order, ruling, registration or filing, or give such notice as the
case may be. The Borrower shall promptly file a Form 45-106F1 with the Ontario
Securities Commission no later than the date which is 10 days following the date
hereof reporting the issuance to the applicable Financier of the conversion
rights hereunder and the issuance of the Warrants and shall pay all related
filing and reporting fees.

       

      
        	
                10.27

              	
                Taxes
      and Charges on Conversion

              

      

       

      The
Borrower will from time to time promptly pay all taxes and charges which may be
imposed by applicable laws (except income tax, if any) which shall be payable
with respect to the issuance or delivery of Shares to any Financier upon the
exercise of its right of conversion pursuant to the terms hereof or upon the
exercise of its Warrants.

       

      
        	
                10.28

              	
                Continued
      Listing

              

      

       

      The
Borrower will take all reasonable steps and actions and do all such acts and
things as may be required to:

       

      
        	
                (a)

              	
                as
      long as it meets the minimum listing requirements of such institutions,
      maintain the listing and posting for trading of the Shares on the TSX;
      and

              

      

       

      
        	
                (b)

              	
                maintain
      its status as a reporting issuer not in default of the requirements of
      applicable securities legislation of the provinces of
    Canada.

              

      

       

      
        	
                10.29

              	
                Registrations

              

      

       

      The
Borrower will use its best efforts to:

       

      
        	
                (a)

              	
                within
      45 days after the date of this agreement, obtain and deliver to the
      Security Agent in form satisfactory to it: (i) consent from the Ministry
      of Northern Development and Mining to the mortgage of the leasehold title
      arising from the conversion of Larder Lake mining claim no. 1048333 to a
      Crown lease; (ii) a further mortgage of such additional leasehold, and
      register such mortgage; and (iii) an updated title opinion and an updated
      policy of title insurance covering such additional leasehold;
      and

              

      

       

      
        	
                (b)

              	
                within
      7 days after the date of this agreement: submit the mortgage for
      recordation with the Ontario Provincial Mining Recorder’s Office against
      the Unpatented Mining Claims identified in Schedule 11; and, obtain and
      deliver to the Security Agent in form satisfactory to it an updated title
      opinion and, if applicable, an updated policy of title insurance covering
      such Unpatented Mining Claims.

              

      

       

      
        	
                10.30

              	
                Convertible
      Debenture

              

      

       

      The
Borrower will not amend or vary or agree to a material amendment or variation of
the Convertible Debenture without the prior written consent of the
Agent.

       

      
        	
                10.31

              	
                Term
      of undertakings

              

      

       

      Unless
the Agent otherwise agrees in writing, until:

       

      
        	
                (a)

              	
                the
      Commitment is cancelled; and

              

      

      
         

        
          
            
              
                	
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                (b)

              	
                the
      Secured Moneys are unconditionally repaid in full;
  and

              

      

       

      
        	
                (c)

              	
                each
      Security is discharged,

              

      

       

      each
Transaction Party must, at its own cost, comply with its undertakings in this
clause 10.

       

      
        
          	
                  11

                	
                  Market
      Disruption Event

                

        

        
          
            

          

        

      

       

      
        	
                11.1

              	
                Market
      Disruption

              

      

       

      
        	
                (a)

              	
                If
      a Market Disruption Event occurs in relation to a Funding Portion for any
      Interest Period, then the interest payable by the Borrower for the
      Interest Period will be the rate per annum which is the sum
      of:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                the
      Margin; and

              

      

       

      
        	
                 
      

              	
                (2)

              	
                the
      rate notified to the Borrower by the Agent as soon as practicable and in
      any event before interest is due to be paid in respect of that Interest
      Period, to be that which expresses as a percentage rate per annum the
      actual cost to a Financier of funding its Pro Rata Share of that Funding
      Portion from whatever source it may reasonably select. For the avoidance
      of doubt, the Agent may only give one notice to the Borrower under clause
      11.1(a)(2) during an Interest
Period.

              

      

       

      
        	
                (b)

              	
                In
      this Agreement “Market Disruption Event”
means:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                at
      or about noon in London on the Value Date for the relevant Interest Period
      the LIBOR01 Page is not available and none or only one of the Reference
      Banks supplies a rate to the Agent to determine LIBOR for the relevant
      currency and period; or

              

      

       

      
        	
                 
      

              	
                (2)

              	
                before
      close of business in London on the Value Date for the relevant Interest
      Period, the Agent receives notifications from a Financier that the cost to
      it of obtaining matching deposits on the Value Date would be in excess of
      LIBOR.

              

      

       

      
        	
                (c)

              	
                No
      Transaction Party may disclose to any person any information in relation
      to clause 11, any rates notified by a Finance Party under clause 11.1 or
      any other agreement reached under clause 11.2 without the prior written
      consent of the Financiers, except if a Transaction Party is required by
      law to do so.

              

      

       

      
        	
                11.2

              	
                Alternative
      basis of interest or funding

              

      

       

      Without
limiting clause 11.1:

       

      
        	
                (a)

              	
                if
      a Market Disruption Event occurs and the Financiers or the Borrower so
      requires, the Financiers and the Borrower shall enter into negotiations
      (for a period of not more than thirty days) with a view to agreeing a
      substitute basis for determining the rate of interest;
  and

              

      

       

      
        	
                (b)

              	
                any
      alternative basis agreed pursuant to clause 11.20 shall, with the prior
      consent of the Financiers and the Borrower, be binding on all
      parties.

              

      

      
         

        
          	
                  12

                	
                  Proceeds
      Account

                

        

        
          
 

      

      
        	
                12.1

              	
                Establishment
      of Proceeds Accounts

              

      

       

      The
Borrower covenants and agrees with the Agent:

      
         

        
          
            
              
                	
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                (a)

              	
                to
      establish and maintain a United States Dollars denominated interest
      bearing account located in the United States of America in a place and
      with a bank or financial institution reasonably acceptable to the Agent,
      that account to be called the “Black Fox Project – Proceeds Account”, and,
      if required, to establish and maintain a Canadian Dollars denominated
      interest bearing account located in Canada or the United States of America
      in a place and with a bank or financial institution reasonably acceptable
      to the Agent, that account to be called the “Black Fox Project – Canadian
      Dollars Proceeds Account’;

              

      

       

      
        	
                (b)

              	
                to
      maintain each Proceeds Account in the location and with the bank or
      financial institution at which that account was originally established and
      not change that account to another bank or financial institution without
      the Agent’s prior written consent;

              

      

       

      
        	
                (c)

              	
                to
      cause all interest and other earnings on a Proceeds Account to be credited
      to that Proceeds Account;

              

      

       

      
        	
                (d)

              	
                to
      deal with the amounts standing to the credit of each Proceeds Account in
      accordance with this clause 12 and not otherwise;
  and

              

      

       

      
        	
                (e)

              	
                before
      it opens a Canadian Dollars denominated Proceeds Account, it will use its
      reasonable best efforts to ensure that a bank account control agreement is
      entered into between the Canadian financial institution holding the
      Proceeds Account, the Security Agent and the Borrower, on terms reasonably
      satisfactory to the Agent.

              

      

       

      
        	
                12.2

              	
                Proceeds
      Account

              

      

       

      
        	
                (a)

              	
                The
      Borrower must deposit, or cause to be deposited, into the Proceeds
      Account:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                the
      proceeds of all Funding Portions;

              

      

       

      
        	
                 
      

              	
                (2)

              	
                any
      other money received in connection with the Project (including proceeds of
      sales of assets and insurance proceeds) and for any purpose
      whatsoever;

              

      

       

      
        	
                 
      

              	
                (3)

              	
                all
      proceeds of all equity raisings by the Borrower;
  and

              

      

       

      
        	
                 
      

              	
                (4)

              	
                all
      Sales Proceeds.

              

      

       

      
        	
                (b)

              	
                Subject
      to clause 12.3, all amounts deposited into the Proceeds Account must be
      applied in the following order of
priority:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                first,
      to pay the Project Costs incurred in accordance with the Cashflow Model,
      as and when those amounts fall due for
payment;

              

      

       

      
        	
                 
      

              	
                (2)

              	
                next,
      to pay any fees or Taxes payable to any Government Agency, and royalties
      payable to any Government Agency or any other Person, in respect of the
      Project, as and when those amounts fall due for
  payment;

              

      

       

      
        	
                 
      

              	
                (3)

              	
                next,
      to pay the amounts required to cover the corporate overheads of the
      Borrower in accordance with the Cashflow Model, as and when those amounts
      fall due for payment; and

              

      

       

      
        	
                 
      

              	
                (4)

              	
                next,
      on each Interest Payment Date, to pay interest to be paid by the Borrower
      under this agreement.

              

      

       

      
        	
                (c)

              	
                Subject
      to clause 12.3, all amounts remaining in the Proceeds Account on the
      Repayment Date must be applied to repay the Repayment
    Amount.

              

      

       

      
        	
                12.3

              	
                Limits
      on withdrawals

              

      

       

      
        	
                (a)

              	
                At
      all times, withdrawals from the Proceeds Account may only be made with the
      prior written approval of the Agent (acting on the instructions of all
      Financiers) or a Receiver appointed by the
  Agent.

              

      

       

      
        	
                (b)

              	
                The
      Agent will approve withdrawals from the Proceeds Account in accordance
      with clause 12.2 up to an aggregate of $6,000,000 (Withdrawal Limit). The
      Agent (acting on the instructions of all Financiers) will not approve
      withdrawals over the Withdrawal Limit unless the Borrower raises equity or
      otherwise makes other funds available in an amount and on terms
      satisfactory to the Agent (acting on the instructions of all Financiers)
      to fund the Borrower’s non-Project corporate level expenditures in
      accordance with the Corporate
Budget.

              

      

      
        
           

          
            
              
                
                  	
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                (c)

              	
                If
      the Borrower does not raise sufficient funds or otherwise makes other
      funds available in an amount and on terms satisfactory to the Agent
      (acting on the instructions of all Financiers) in accordance with clause
      12.3(b) by 28 February 2009, then on that date, the Agent will direct that
      the bank or financial institution at which the Proceeds Account is
      established to transfer the balance of the Proceeds Account as at that
      date to an account nominated by the Agent, and those proceeds will be held
      on account of the Financiers and distributed by the Agent in accordance
      with clause 6.10(b).

              

      

       

      
        	
                (d)

              	
                Any
      amounts transferred from the Proceeds Account under clause 12.3(c) will be
      applied as a prepayment of the Principal Outstanding, and clause 3.4(d)
      will apply to those amounts.

              

      

      
         

        
          	
                  13

                	
                  Events
      of Default

                

        

        
          
            

          

        

      

       

      
        	
                13.1

              	
                Events
      of Default

              

      

       

      It is an
Event of Default, whether or not it is within the control of a Transaction
Party, if:

       

      
        	
                (a)

              	
                failure to pay: a
      Transaction Party fails to pay or repay any part of the Secured Moneys
      when due and payable by it;

              

      

       

      
        	
                (b)

              	
                non-remediable failure:
      a Transaction Party fails to perform any undertaking or obligation of it
      under any Transaction Document (other than as described in paragraph
      13.1(a)) and that failure is not in the opinion of the Agent
      remediable;

              

      

       

      
        	
                (c)

              	
                remediable failure: the
      failure described in clause 13.1(b) is in the opinion of the Agent
      remediable, and the Transaction Party does not remedy the failure within
      10 Business
      Days after the Transaction Party becomes aware of that failure or receives
      a notice from the Agent specifying the failure (whichever occurs
      earliest);

              

      

       

      
        	
                (d)

              	
                Mining
      Rights:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                a
      Mineral Right is terminated or otherwise ceases to be in full force and
      effect; or

              

      

       

      
        	
                 
      

              	
                (2)

              	
                a
      Mineral Right is abandoned, terminated or otherwise determined in the
      opinion of the Agent to be invalid or owned by a person other than the
      Borrower;

              

      

       

      
        	
                (e)

              	
                Project Documents: any
      party to a Project Document fails to perform or observe in any material
      respect any of its undertakings or obligations under a Project Document
      and that party does not remedy the failure within the grace period stated
      in the Project Document or, if no grace period is stated, within 15
      Business Days;

              

      

       

      
        	
                (f)

              	
                Authorisations: the
      Borrower fails to maintain and comply in all material respects with all
      applicable Authorisations that relate to the development, construction and
      operation of the Project;

              

      

       

      
        	
                (g)

              	
                abandonment: all or any
      material part of the Project is abandoned or placed on a “care and
      maintenance” basis for more than 5 consecutive
  days;

              

      

       

      
        	
                (h)

              	
                destruction of Secured
      Property: all or a material part of its Secured Property is
      destroyed, lost or damaged beyond repair or proves to be materially
      defective in circumstances not covered fully by any insurance in favour of
      a Transaction Party;

              

      

       

      
        	
                (i)

              	
                expropriation: all or a
      material part of the Secured Property is seized, nationalised,
      compulsorily acquired or expropriated by, or by order of, a Government
      Agency or under any law or a Government Agency orders the sale, vesting or
      divesting of all or a material part of the Secured Property, or a
      restraint, restriction, prohibition, intervention, law, decree or other
      order of a Government Agency or any other matter or thing occurs which
      wholly or partially prevents or
hinders:

              

      

      
         

        
          
            
              
                	
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                (1)

              	
                the
      performance by a Transaction Party of any of its obligations under a
      Document; or

              

      

       

      
        	
                 
      

              	
                (2)

              	
                the
      construction, development or operation of the Project or the Project
      Assets;

              

      

       

      
        	
                (j)

              	
                misrepresentation: any
      representation or warranty or statement made, or taken to have been made,
      of a Transaction Party under or in connection with a Transaction Document
      is found to have been incorrect or misleading when made or repeated, or
      taken to have been made or repeated, unless rectified within 10 Business
      Days of that representation or warranty or statement having been made or
      taken to have been made;

              

      

       

      
        	
                (k)

              	
                acceleration of
      payments: a Transaction Party does anything which constitutes an
      event, whatever called, which causes or enables the acceleration of a
      payment to be made under a Document, or the enforcement or termination or
      rescission of a Document;

              

      

       

      
        	
                (l)

              	
                cross default: any
      Financial Indebtedness of a Transaction Party in an amount in excess of
      US$500,000:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                becomes
      due and payable, or becomes capable of being declared due and payable,
      before the scheduled date for payment;
or

              

      

       

      
        	
                 
      

              	
                (2)

              	
                is
      not paid when due (after taking into account any applicable grace
      period);

              

      

       

      
        	
                (m)

              	
                Encumbrance: any
      Encumbrance is enforced, or becomes capable of being enforced, against a
      material asset of a Transaction
Party;

              

      

       

      
        	
                (n)

              	
                judgment: a judgment in
      an amount exceeding US$500,000 is obtained against a Transaction Party and
      that judgement has not been paid and satisfied, vacated, discharged,
      stayed or bonded pending appeal within 10 Business Days from
      the entry of that judgment;

              

      

       

      
        	
                (o)

              	
                execution: a distress,
      attachment, execution or other process of a Government Agency is issued
      against, levied or entered upon an asset of a Transaction Party in an
      amount exceeding US$500,000 and is not set aside or satisfied within
      10 Business Days;

              

      

       

      
        	
                (p)

              	
                winding up: any of the
      following occur:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                an
      application is made by a Person other than a Transaction Party, and is not
      withdrawn, dismissed, discontinued or set aside within 10 Business
      Days;

              

      

       

      
        	
                 
      

              	
                (2)

              	
                an
      application is made by a Transaction
Party;

              

      

       

      
        	
                 
      

              	
                (3)

              	
                an
      order is made; or

              

      

       

      
        	
                 
      

              	
                (4)

              	
                a
      resolution is passed or any steps are taken to pass a
      resolution,

              

      

       

      for the
winding up of any Transaction Party;

       

      
        	
                (q)

              	
                administration, liquidation,
      receivership etc: any of the following
  occur:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                an
      administrator, liquidator, provisional liquidator, receiver, receiver and
      manager, official manager, trustee, monitor, controller or similar
      official is appointed, or any steps are taken to that appointment, except
      an application made to a court by a Person other than a Transaction Party
      for the purposes of appointing such a person which is disputed by a
      Transaction Party acting diligently and in good faith and dismissed within
      10 Business Days; or

              

      

       

      
        	
                 
      

              	
                (2)

              	
                a
      resolution to appoint an administrator, liquidator, provisional
      liquidator, receiver, receiver and manager, official manager, trustee,
      monitor, controller or similar official is passed, or any steps are taken
      to pass a resolution to that appointment, except an application made to a
      court by a Person other than a Transaction Party for the purposes of
      appointing such a person which is disputed by a Transaction Party acting
      diligently and in good faith and dismissed within 10 Business
      Days,

              

      

       

      to a
Transaction Party or over the assets of a Transaction Party;

      
         

        
          
            
              
                	
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                (r)

              	
                deregistration: a
      Transaction Party is deregistered, or any steps are taken to deregister a
      Transaction Party under any applicable
law;

              

      

       

      
        	
                (s)

              	
                suspends payment: a
      Transaction Party suspends payment of its debts
  generally;

              

      

       

      
        	
                (t)

              	
                insolvency: a
      Transaction Party:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                commits
      an act of bankruptcy under the Bankruptcy and Insolvency Act
      (Canada), or makes an assignment of its property for the general
      benefit of its creditor under the Bankruptcy and Insolvency Act
      (Canada), or makes a proposal (or files a notice of its intention
      to do so), under the Bankruptcy and Insolvency Act
      (Canada);

              

      

       

      
        	
                 
      

              	
                (2)

              	
                is
      unable to pay its debts when they are
due;

              

      

       

      
        	
                 
      

              	
                (3)

              	
                states
      that it is insolvent or unable to pay its debts when they are due;
      or

              

      

       

      
        	
                 
      

              	
                (4)

              	
                is
      presumed to be insolvent or becomes insolvent under administration as
      defined or recognised under any applicable law, or action is taken which
      could result in those events;

              

      

       

      
        	
                (u)

              	
                arrangements: a
      Transaction Party enters into or resolves to enter into any arrangement,
      composition or compromise with, or assignment for the benefit of, any of
      its creditors;

              

      

       

      
        	
                (v)

              	
                reorganisation: a Transaction
      Party implements a merger, demerger or scheme of arrangement with any
      person where the Transaction Party would not be the surviving
      party;

              

      

       

      
        	
                (w)

              	
                amendment of constituent
      documents: the memorandum and articles of association, constitution
      or other constating documents (including a by-law) of a Transaction Party
      are amended in a manner that has, or is reasonably likely to have, a
      Material Adverse Effect;

              

      

       

      
        	
                (x)

              	
                ceasing business: a
      Transaction Party ceases to carry on
business;

              

      

       

      
        	
                (y)

              	
                de-listing on TSX / reporting
      issuer status: except with the prior written consent of the Agent,
      the Borrower ceases to have its ordinary shares listed for trading on the
      TSX or ceases to be a reporting issuer under the Securities Laws of any
      province of Canada (other than
Quebec);

              

      

       

      
        	
                (z)

              	
                de-listing on the AMEX:
      except with the prior written consent of the Agent, the Borrower ceases to
      have its ordinary shares listed for trading on the
  AMEX;

              

      

       

      
        	
                (aa)

              	
                unenforceability:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                a material provision of a
      Document is illegal, void, voidable or
  unenforceable;

              

      

       

      
        	
                 
      

              	
                (2)

              	
                any
      person becomes entitled to terminate, rescind or avoid any material
      provision of any Document; or

              

      

       

      
        	
                 
      

              	
                (3)

              	
                the
      execution, delivery or performance of a Document by a Transaction Party
      breaches or results in a contravention of any
  law;

              

      

       

      
        	
                (bb)

              	
                Material Adverse Effect:
      any event occurs which has or is reasonably likely to have a Material
      Adverse Effect; or

              

      

       

      
        	
                (cc)

              	
                jurisdictional
      equivalent: anything analogous
      or having a substantially similar effect to any of the events specified in
      clauses 13.1(p), 13.1(q), 13.1(r), 13.1(s), 13.1(t), 13.1(u) or 13.1(v)
      happens under the law of any applicable
  jurisdiction.

              

      

       

      
        	
                13.2

              	
                Effect
      of Event of Default

              

      

       

      
        	
                (a)

              	
                If
      an Event of Default occurs the Agent may, at any time after its occurrence
      by notice to the Borrower declare
that:

              

      

      
        
           

          
            
              
                
                  	
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      Agreement

                        	
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                (1)

              	
                the
      Secured Moneys are immediately due and payable;
  or

              

      

       

      
        	
                 
      

              	
                (2)

              	
                the
      Commitment is cancelled,

              

      

       

      or make
each of the declarations under clauses 13.2(a)(1) and
13.2(a)(2).

       

      
        	
                (b)

              	
                The
      Borrower must immediately repay the Secured Moneys on receipt of a notice
      under clause 13.2(a)(1).

              

      

       

      
        	
                13.3

              	
                Transaction
      Parties to continue to perform

              

      

       

      
        	
                (a)

              	
                If
      the Agent makes a declaration under clause 13.2 or a gives a notice
      under clause 13.5(d):

              

      

       

      
        	
                 
      

              	
                (1)

              	
                the
      declaration or notice does not affect the obligations of a Transaction
      Party under the Transaction Documents;
and

              

      

       

      
        	
                 
      

              	
                (2)

              	
                each
      Transaction Party must continue to perform its obligations under the
      Transaction Documents as if the declaration had not been made or the
      notice had not been given, subject to any directions given by a Finance
      Party under any Transaction
Document.

              

      

       

      
        	
                (b)

              	
                Clause 13.3(a)
      does not affect the Borrower’s obligations under
      clause 13.2.

              

      

       

      
        	
                13.4

              	
                Enforcement

              

      

       

      
        	
                (a)

              	
                The
      Transaction Documents may be enforced without notice to a Transaction
      Party or any other person even if:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                a
      Finance Party accepts any part of the Secured Moneys after an Event of
      Default; or

              

      

       

      
        	
                 
      

              	
                (2)

              	
                there
      has been any other Event of
Default.

              

      

       

      
        	
                (b)

              	
                No
      Finance Party is liable to any Transaction Party for any Loss a
      Transaction Party may suffer, incur or be liable for arising out of or in
      connection with a Finance Party exercising any Power, except as a result
      of the gross negligence or wilful misconduct of a Finance Party, or to the
      extent specifically set out in a Transaction
  Document.

              

      

       

      
        	
                13.5

              	
                Review
      event

              

      

       

      
        	
                (a)

              	
                It
      is a review event if there is a change in Control;
  

              

      

       

      
        	
                (b)

              	
                Each
      Transaction Party must notify the Agent as soon as it becomes aware of the
      occurrence of a Review Event.

              

      

       

      
        	
                (c)

              	
                The
      Financiers have the right to review the Facility for a period of 30 days
      from the date on which the Agent receives a notice under clause 13.5(b) or
      becomes aware of the occurrence of a Review
  Event.

              

      

       

      
        	
                (d)

              	
                If
      the Financiers decide that they do not wish to continue to provide the
      Facility following the occurrence of a Review Event, they must give
      written notice to that effect to the Borrower within the 30 day review
      period referred to in clause 13.5(c). The notice must state a date (not
      earlier than the earlier of 90 days from the date of the service of the
      notice or the Repayment Date) by which the Secured Moneys must be paid in
      full, and the Borrower must pay the Secured Moneys to the Agent in full on
      the date nominated in the notice.

              

      

      
        
          
             

            
              
                
                  
                    	
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                  14

                	
                  Increased
      costs and illegality 

                

        

        
          
 

      

      
        	
                14.1

              	
                Increased
      costs

              

      

       

      
        	
                (a)

              	
                If
      a Financier determines that any Change in Law affecting it or any of its
      Holding Companies directly or
indirectly:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                increases
      the effective cost to that Financier of performing its obligations under
      the Transaction Documents or funding or maintaining the Commitment or its
      Pro Rata Share of the Principal
Outstanding;

              

      

       

      
        	
                 
      

              	
                (2)

              	
                reduces
      any amount received or receivable by that Financier under the Transaction
      Documents; or

              

      

       

      
        	
                 
      

              	
                (3)

              	
                in
      any other way reduces the effective return to the Financier or any
      Affiliate under the Transaction Documents or the overall return on capital
      of the Financier or any Affiliate,

              

      

       

      (each an
Increased Cost), the
Borrower must pay to the Financier on demand compensation for the Increased Cost
to the extent attributed by the Financier or Affiliate (using the methods it
considers appropriate) to the Financier’s obligations under the Transaction
Documents or the funding or maintenance of the Commitment or its Pro Rata Share
of the Principal Outstanding.

       

      
        	
                (b)

              	
                A
      claim under clause 14.1(a) in the absence of manifest error, is
      sufficient evidence of the amount to which the Finance Party is entitled
      under clause 14.1(a) unless the contrary is
  proved.

              

      

       

      
        	
                (c)

              	
                If
      the Borrower receives a demand from a Financier under clause 14.1(a),
      the Borrower may, by written notice to the Agent on or before the date
      which is 20 Business Days after the date of that demand, cancel the
      Commitment and prepay the Secured Moneys of that Financier in
      full.

              

      

       

      
        	
                (d)

              	
                A
      notice under clause 14.1(c) is irrevocable and the Borrower must, on
      the date which is 40 Business Days after the date that the notice is
      given, pay to the Agent on account of the Financier the Secured Moneys in
      full.

              

      

       

      
        	
                14.2

              	
                Illegality

              

      

       

      
        	
                (a)

              	
                If
      any Change in Law or other event makes it illegal for a Financier to
      perform its obligations under the Transaction Documents or fund or
      maintain the Commitment, the Financier may by notice to the
      Borrower:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                suspend
      its obligations under the Transaction Documents for the duration of the
      illegality; or

              

      

       

      
        	
                 
      

              	
                (2)

              	
                by
      notice to the Borrower, cancel the Commitment and require the Borrower to
      repay the Secured Moneys in full on the date which is 40 Business
      Days after the date on which the Financier gives the notice or any earlier
      date required by, or to comply with, the applicable
  law.

              

      

       

      
        	
                (b)

              	
                A
      notice under clause 14.2(a)(2) is irrevocable and the Borrower must,
      on the repayment date determined under clause 14.2(a)(2), pay to the
      Agent on account of a Financier the Secured Moneys in
  full.

              

      

       

      
        	
                14.3

              	
                Reduction
      of Commitment

              

      

       

      The
Commitment of a Financier is reduced by its Pro Rata Share of any amount of
Secured Moneys paid under this clause 14 and accordingly an amount paid under
this clause 14 may not be redrawn.

      
         

        
          
            
              
                	
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                  15

                	
                  Indemnities
      and Break Costs

                

        

        
          
 

      

      
        	
                15.1

              	
                General
      indemnity

              

      

       

      
        	
                (a)

              	
                Each
      Transaction Party indemnifies each Finance Party against any Loss which
      that Finance Party, a Receiver (whether acting as agent of the Borrower or
      of a Finance Party) or an Attorney pays, suffers, incurs or is liable for,
      in respect of any of the following:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                a
      Funding Portion required by a Funding Notice not being made for any reason
      including any failure by a Transaction Party to fulfil any condition
      precedent contained in clause 2, but excluding any default by that
      Finance Party;

              

      

       

      
        	
                 
      

              	
                (2)

              	
                the
      occurrence of any Default;

              

      

       

      
        	
                 
      

              	
                (3)

              	
                a
      Finance Party exercising its Powers consequent upon or arising out of the
      occurrence of any Default;

              

      

       

      
        	
                 
      

              	
                (4)

              	
                the
      non-exercise, attempted exercise, exercise or delay in the exercise of any
      Power;

              

      

       

      
        	
                 
      

              	
                (5)

              	
                any
      act or omission of a Security Provider or any of its employees or
      agents;

              

      

       

      
        	
                 
      

              	
                (6)

              	
                the
      occupation, use or ownership of any Secured Property by a Security
      Provider or any of its employees or
agents;

              

      

       

      
        	
                 
      

              	
                (7)

              	
                any
      workers’ compensation claim by any employee of a Security
      Provider;

              

      

       

      
        	
                 
      

              	
                (8)

              	
                any
      insurance policy in respect of all
property;

              

      

       

      
        	
                 
      

              	
                (9)

              	
                any
      compulsory acquisition or statutory or judicial divestiture of Secured
      Property;

              

      

       

      
        	
                 
      

              	
                (10)

              	
                any
      other thing in respect of a Security or any property;
  and

              

      

       

      
        	
                 
      

              	
                (11)

              	
                any
      payment made by a Financier to the Agent to indemnify the Agent for a Loss
      the Agent pays, suffers, incurs or is liable for in acting as
      Agent.

              

      

       

      
        	
                (b)

              	
                The
      indemnity in clause 15.1(a),
includes:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                the
      amount determined by a Finance Party as being incurred by reason of the
      liquidation or re-employment of deposits or other funds acquired or
      contracted for by the Finance Party to fund or maintain the Commitment;
      and

              

      

       

      
        	
                 
      

              	
                (2)

              	
                loss
      of margin,

              

      

       

      but does
not include any loss arising from the gross negligence or wilful misconduct of a
Finance Party.

       

      
        	
                15.2

              	
                Break
      Costs

              

      

       

      The
Borrower must, within 3 Business Days of demand by the Agent, pay to the
Agent for the account of each Finance Party its Break Costs attributable to all
or any part of a Funding Portion being prepaid or repaid by the Borrower on a
day other than the last day of the Interest Period for that Funding
Portion.

       

      
        	
                15.3

              	
                Foreign
      currency indemnity

              

      

       

      If, at
any time:

       

      
        	
                (a)

              	
                a
      Finance Party, a Receiver or an Attorney receives or recovers any amount
      payable by a Transaction Party
including:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                under
      any judgment or order of any Government
Agency;

              

      

       

      
        	
                 
      

              	
                (2)

              	
                for
      any breach of any Transaction
Document;

              

      

      
         

        
          
            
              
                	
                        Bridge Facility
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                (3)

              	
                on
      the liquidation or bankruptcy of the Transaction Party or any proof or
      claim in that liquidation or bankruptcy;
or

              

      

       

      
        	
                 
      

              	
                (4)

              	
                any
      other thing into which the obligations of the Transaction Party may have
      become merged; and

              

      

       

      
        	
                (b)

              	
                the
      Payment Currency is not the Relevant
Currency,

              

      

       

      the
Borrower indemnifies each Finance Party, Receiver or Attorney against any
shortfall between the amount payable in the Relevant Currency and the amount
actually or notionally received or recovered by each Finance Party, Receiver or
Attorney after the Payment Currency is converted or translated into the Relevant
Currency under clause 15.4.

       

      
        	
                15.4

              	
                Conversion
      of currencies

              

      

       

      In making
any currency conversion under clause 15.3, a Finance Party, Receiver or
Attorney may itself or through its bankers purchase one currency with another,
whether or not through an intermediate currency, whether spot or forward, in the
manner and amounts and at the times it thinks fit.

       

      
        	
                15.5

              	
                Continuing
      indemnities and evidence of Loss

              

      

       

      
        	
                (a)

              	
                Each
      indemnity of a Transaction Party in a Transaction Document is a continuing
      obligation of the Transaction Party,
despite:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                any
      settlement of account; or

              

      

       

      
        	
                 
      

              	
                (2)

              	
                the
      occurrence of any other thing,

              

      

       

      and
remains in full force and effect until:

       

      
        	
                 
      

              	
                (3)

              	
                the
      Secured Moneys are fully and finally repaid;
and

              

      

       

      
        	
                 
      

              	
                (4)

              	
                each
      Security has been finally
discharged.

              

      

       

      
        	
                (b)

              	
                Each
      indemnity of a Transaction Party in a Transaction Document is an
      additional, separate and independent obligation of a Transaction Party and
      no one indemnity limits the general nature of any other
      indemnity.

              

      

       

      
        	
                (c)

              	
                Each
      indemnity of a Transaction Party in a Transaction Document survives the
      termination of any Transaction
Document.

              

      

       

      
        	
                (d)

              	
                A
      certificate given by an Officer of a Finance Party detailing the amount of
      any Loss covered by any indemnity in a Transaction Document is sufficient
      evidence unless the contrary is
proved.

              

      

      
         

        
          	
                  16

                	
                  Fees,
      Tax, costs and expenses

                

        

        
          
 

      

      
        	
                16.1

              	
                Arrangement
      fee

              

      

       

      The
Borrower must, on or before the date that the first Funding Portion is provided
under clause 5.1, pay to the Agent for the account of the Financiers in their
Pro Rata Shares a non-refundable and non-rebateable arrangement fee equal to 5%
of the Commitment, being US$750,000.

       

      
        	
                16.2

              	
                Tax

              

      

       

      
        	
                (a)

              	
                The
      Borrower must pay any Tax, other than an Excluded Tax in respect of any
      Finance Party, which is payable in respect of a Transaction Document
      (including in respect of the execution, delivery, performance, release,
      discharge, amendment or enforcement of a Transaction
      Document).

              

      

      
         

        
          
            
              
                	
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                (b)

              	
                The
      Borrower must pay any fine, penalty, interest or other cost in respect of
      a failure to pay any Tax described in clause 16.2(a) except to the
      extent that the fine, penalty, interest or other cost is caused by the
      Agent’s failure to lodge money received from the Borrower within
      5 Business Days before the due date for
  lodgement.

              

      

       

      
        	
                (c)

              	
                The
      Borrower indemnifies each Finance Party against any amount payable under
      clause 16.2(a) or 16.2(b).

              

      

       

      
        	
                16.3

              	
                Costs
      and expenses

              

      

       

      The
Borrower must pay all costs and expenses of each Finance Party in relation
to:

       

      
        	
                (a)

              	
                the
      negotiation, preparation, execution, delivery, stamping, registration,
      completion, variation and discharge of any Transaction
      Document;

              

      

       

      
        	
                (b)

              	
                the
      enforcement, protection or waiver of any rights under any Transaction
      Document;

              

      

       

      
        	
                (c)

              	
                the
      consent or approval of a Finance Party given under any Transaction
      Document; 

              

      

       

      
        	
                (d)

              	
                any
      enquiry by a Government Agency involving the
  Borrower;

              

      

       

      
        	
                (e)

              	
                one
      site visit per year by the representatives of the Finance Parties under
      clause 10.2(c);

              

      

       

      
        	
                (f)

              	
                any
      site visits by the representatives of the Finance Parties on the
      occurrence of:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                in
      the opinion of the Financiers, a material change in the Project
      development activities contemplated by the Cashflow Model;
    and

              

      

       

      
        	
                 
      

              	
                (2)

              	
                a
      Default; and

              

      

       

      
        	
                (g)

              	
                any
      administration costs of each Finance Party in relation to the matters
      described in clause 16.3(c) or
16.3(d).

              

      

       

      
        
          	
                  17

                	
                  Interest
      on overdue amounts

                

        

        
          
 

      

      
        	
                17.1

              	
                Payment
      of interest

              

      

       

      Each
Transaction Party must pay interest on:

       

      
        	
                (a)

              	
                any
      of the Secured Moneys due and payable by it, but unpaid;
    and

              

      

       

      
        	
                (b)

              	
                any
      interest payable but unpaid under this
  clause 17.

              

      

       

      
        	
                17.2

              	
                Accrual
      of interest

              

      

       

      The
interest payable under this clause 17:

       

      
        	
                (a)

              	
                accrues
      from day to day from and including the due date for payment up to the
      actual date of payment, before and, as an additional and independent
      obligation, after any judgment or other thing into which the liability to
      pay the Secured Moneys becomes merged;
and

              

      

       

      
        	
                (b)

              	
                may
      be capitalised at monthly
intervals.

              

      

       

      
        	
                17.3

              	
                Rate
      of interest

              

      

       

      The rate
of interest payable under this clause 17 on any part of the Secured Moneys
is the higher of:

       

      
        	
                (a)

              	
                the
      Overdue Rate determined by the
Agent:

              

      

      
        
           

          
            
              
                
                  	
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                (1)

              	
                on
      the date that part of the Secured Moneys becomes due and payable but is
      unpaid; and

              

      

       

      
        	
                 
      

              	
                (2)

              	
                on
      each date which is 1 month after the immediately preceding date on
      which the Overdue Rate was determined under this clause 17.3(a);
      and

              

      

       

      
        	
                (b)

              	
                the
      rate fixed or payable under a judgment or other thing referred to in
      clause 17.2(a).

              

      

      
         

        
          	
                  18

                	
                  Relations
      between Agent and Financiers

                

        

        
          
 

      

      
        	
                18.1

              	
                Appointment
      of Agent

              

      

       

      Each
Financier appoints the Agent to act as its agent under the Transaction Documents
and authorises the Agent to do the following on its behalf:

       

      
        	
                (a)

              	
                amend
      or waive compliance with any provision of the Transaction Documents in
      accordance with the Transaction Documents (including
      clause 18.5);

              

      

       

      
        	
                (b)

              	
                all
      things which the Transaction Documents expressly require the Agent to do,
      or contemplate are to be done by the Agent, on behalf of the Financiers;
      and

              

      

       

      
        	
                (c)

              	
                all
      things which are incidental or ancillary to the Powers of the Agent
      described in clauses 18.1(a) or
(b).

              

      

       

      
        	
                18.2

              	
                Agent’s
      capacity

              

      

       

      The
Agent:

       

      
        	
                (a)

              	
                if
      it acts in its capacity as a Financier, has the same obligations and
      Powers under each Transaction Document as any other Financier as though it
      were not acting as the Agent; and

              

      

       

      
        	
                (b)

              	
                may
      engage in banking or business activities with any Transaction Party which
      are not related to the Facility without having to notify or account to the
      Financiers.

              

      

       

      
        	
                18.3

              	
                Agent’s
      obligations

              

      

       

      
        	
                (a)

              	
                The
      Agent has only those duties and obligations which are expressly specified
      in the Transaction Documents.

              

      

       

      
        	
                (b)

              	
                The
      Agent is not required to:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                keep
      itself informed as to the affairs of any Transaction Party or its
      compliance with any Transaction Document;
or

              

      

       

      
        	
                 
      

              	
                (2)

              	
                review
      or check the accuracy or completeness of any document or information it
      forwards to any Financier or other
person.

              

      

       

      
        	
                18.4

              	
                Agent’s
      powers

              

      

       

      
        	
                (a)

              	
                Except
      as specifically set out in the Transaction Documents (including
      clause 18.5), the Agent may exercise its Powers under the Transaction
      Documents:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                as
      it thinks fit in the best interests of the Financiers;
  and

              

      

       

      
        	
                 
      

              	
                (2)

              	
                without
      consulting with or seeking the instructions of the
    Financiers.

              

      

       

      
        	
                (b)

              	
                The
      exercise by the Agent of any Power in accordance with this clause 18
      binds all of the Financiers.

              

      

      
        
           

          
            
              
                
                  	
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                18.5

              	
                Instructions
      to Agent

              

      

       

      The
Agent:

       

      
        	
                (a)

              	
                must
      exercise its Powers in accordance with any instructions given to it by the
      Financiers or, if specifically required to do so under a Transaction
      Document, all Financiers;

              

      

       

      
        	
                (b)

              	
                must
      not amend or waive any provision of a Transaction Document which has the
      effect of:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                increasing
      the obligations of any Financier;

              

      

       

      
        	
                 
      

              	
                (2)

              	
                changing
      the terms of payment of any amounts payable under the Transaction
      Documents;

              

      

       

      
        	
                 
      

              	
                (3)

              	
                changing
      the manner in which those payments are to be applied;
  or

              

      

       

      
        	
                 
      

              	
                (4)

              	
                increasing
      the Commitment,

              

      

       

      without
the consent of all of the Financiers;

       

      
        	
                (c)

              	
                must
      not amend or waive any other provision of any Transaction Document without
      the consent of all the Financiers unless the Agent is satisfied that the
      amendment is made to correct a manifest error or an error of a formal or
      technical nature only;

              

      

       

      
        	
                (d)

              	
                must
      not otherwise exercise any Power which the Transaction Documents specify
      are to be exercised with the consent or in accordance with the
      instructions of all the Financiers or amend any such requirement, except
      with that consent or in accordance with those instructions;
      and

              

      

       

      
        	
                (e)

              	
                may
      refrain from acting, whether in accordance with the instructions of all
      the Financiers or otherwise, until it has received security for any amount
      it reasonably believes may become payable to it by the Financiers under
      clause 18.11.

              

      

       

      
        	
                18.6

              	
                Assumptions
      as to authority

              

      

       

      Each
Transaction Party may assume, with inquiry, that any action of the Agent under
the Transaction Documents is in accordance with any required authorisations,
consents or instructions from the Financiers.

       

      
        	
                18.7

              	
                Agent’s
      liability

              

      

       

      Neither
the Agent nor any Associate of the Agent nor any of their respective directors,
officers, employees, agents or successors is responsible to the Financiers or a
Transaction Party for:

       

      
        	
                (a)

              	
                any
      recitals, statements, representations or warranties contained in any
      Transaction Document, or in any certificate or other document referred to
      or provided for in, or received by any of them under, any Transaction
      Document;

              

      

       

      
        	
                (b)

              	
                the
      value, validity, effectiveness, genuineness, enforceability or sufficiency
      of any Transaction Document (other than as against the Agent) or any other
      certificate or document referred to or provided for in, or received by any
      of them under, any Transaction
Document;

              

      

       

      
        	
                (c)

              	
                any
      failure by a Transaction Party or any Financier to perform its obligations
      under any Transaction Document; or

              

      

       

      
        	
                (d)

              	
                any
      action taken or omitted to be taken by it or them under any Transaction
      Document or in connection with any Transaction Document except in the case
      of its or their own fraud or wilful misconduct or gross negligence.

              

      

      
        
           

          
            
              
                
                  	
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                18.8

              	
                Delegation

              

      

       

      The Agent
may employ agents and attorneys.

       

      
        	
                18.9

              	
                Agent
      entitled to rely

              

      

       

      The Agent
may rely on:

       

      
        	
                (a)

              	
                any
      certificate, communication, notice or other document (including any
      facsimile transmission or telegram) it believes to be genuine and correct
      and to have been signed or sent by or on behalf of the proper person or
      persons; and

              

      

       

      
        	
                (b)

              	
                advice
      and statements of solicitors, independent accountants and other experts
      selected by the Agent with reasonable
care.

              

      

       

      
        	
                18.10

              	
                Provision
      of information

              

      

       

      
        	
                (a)

              	
                The
      Agent must forward to each
Financier:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                notice
      of the occurrence of any Default promptly after the Agent becomes actually
      aware of it; and

              

      

       

      
        	
                 
      

              	
                (2)

              	
                a
      copy of each report, notice or other document promptly after the Agent
      receives it from a Transaction Party under any Transaction
      Document.

              

      

       

      
        	
                (b)

              	
                The
      Agent is not to be regarded as being actually aware of the occurrence of a
      Default unless the Agent:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                is
      actually aware that any payment due by a Transaction Party under the
      Transaction Documents has not been made;
or

              

      

       

      
        	
                 
      

              	
                (2)

              	
                has
      received notice from a Financier or a Transaction Party stating that a
      Default has occurred describing the same and stating that the notice is a
      “Default
      Notice”.

              

      

       

      
        	
                (c)

              	
                If
      the Agent receives a Default Notice the Agent may treat that Default as
      continuing until it has received a further Default Notice from the party
      giving the original notice stating that the Default is no longer
      continuing and the Agent is entitled to rely on that second notice for all
      purposes under the Transaction
Documents.

              

      

       

      
        	
                (d)

              	
                The
      Agent is not to be regarded as having received any report, notice or other
      document or information unless it has been given to it in accordance with
      clause 21.3.

              

      

       

      
        	
                (e)

              	
                Except
      as specified in clause 18.10(a) and as otherwise expressly required
      by the Transaction Documents, the Agent has no duty or responsibility to
      provide any Financier with any information concerning the affairs of any
      Transaction Party or other person which may come into the Agent’s
      possession.

              

      

       

      
        	
                (f)

              	
                Nothing
      in any Transaction Document obliges the Agent to disclose any information
      relating to any Transaction Party or other person if the disclosure would
      constitute a breach of any law, duty of secrecy or duty of
      confidentiality.

              

      

       

      
        	
                18.11

              	
                Indemnity
      by Financiers

              

      

       

      
        	
                (a)

              	
                The
      Financiers severally indemnify the Agent (to the extent not reimbursed by
      any Transaction Party) in their Pro Rata Shares against any Loss which the
      Agent pays, suffers, incurs or is liable for in acting as Agent, except to
      the extent attributable to the Agent’s fraud, wilful misconduct or gross
      negligence.

              

      

       

      
        	
                (b)

              	
                The
      Financiers will not take any action or suit or make any claim against the
      Agent in respect of any Loss paid, suffered or incurred by the Financiers
      as a result of the Agent’s action, except to the extent the Loss was
      attributable to the Agent’s fraud, wilful misconduct or gross
      negligence.

              

      

      
        
           

          
            
              
                
                  	
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                18.12

              	
                Independent
      appraisal by Financiers

              

      

       

      Each
Financier acknowledges that it has made and must continue to make, independently
and without reliance on the Agent or any other Financier, and based on the
documents and information it considers appropriate, its own investigation into
and appraisal of:

       

      
        	
                (a)

              	
                the
      affairs of each Transaction Party;

              

      

       

      
        	
                (b)

              	
                the
      accuracy and sufficiency of any information on which it has relied in
      connection with its entry into the Transaction Documents;
    and

              

      

       

      
        	
                (c)

              	
                the
      legality, validity, effectiveness, enforceability and sufficiency of each
      Transaction Document.

              

      

       

      
        	
                18.13

              	
                Resignation
      and removal of Agent

              

      

       

      
        	
                (a)

              	
                The
      Agent may, by notice to the Borrower and the Financiers, resign at any
      time and the Financiers may, by notice to the Borrower and the Agent,
      remove the Agent from office. The resignation or removal of the Agent
      takes effect on appointment of a successor Agent in accordance with this
      clause 18.13.

              

      

       

      
        	
                (b)

              	
                When
      a notice of resignation or removal is given, the Financiers may appoint a
      successor Agent. If no successor Agent is appointed within
      20 Business Days, the Agent may appoint a successor
      Agent.

              

      

       

      
        	
                (c)

              	
                When
      a successor Agent is appointed, and executes an undertaking to be bound as
      successor Agent under the Transaction Documents, the successor Agent
      succeeds to and becomes vested with all the Powers and duties of the
      retiring Agent, and the retiring Agent is discharged from its duties and
      obligations under the Transaction
Documents.

              

      

       

      
        	
                (d)

              	
                After
      any retiring Agent’s resignation or removal, this agreement continues in
      effect in respect of any actions which the Agent took or omitted to take
      while acting as the Agent.

              

      

       

      
        	
                18.14

              	
                Institution
      of actions by Financiers

              

      

       

      
        	
                (a)

              	
                A
      Financier must not institute any legal proceedings against a Transaction
      Party to recover amounts owing to it under the Transaction Documents,
      without giving the Agent and each other Financier a reasonable opportunity
      to join in the proceedings or agree to share the costs of the
      proceedings.

              

      

       

      
        	
                (b)

              	
                If
      a Financier does not join in an action against a Transaction Party or does
      not agree to share in the costs of the action (having been given a
      reasonable opportunity to do so by the Finance Party bringing the action),
      it is not entitled to share in any amount recovered by the action until
      all the Finance Parties who did join in the action or agree to share the
      costs of the action have received in full all money payable to them under
      the Transaction Documents.

              

      

       

      
        	
                18.15

              	
                Identity
      of Financiers

              

      

       

      
        	
                (a)

              	
                A
      Financier must notify the Agent of any assignment or novation of that
      Financier’s rights or obligations under any Transaction Document in
      accordance with clause 19.

              

      

       

      
        	
                (b)

              	
                The
      Agent may treat each Financier as the absolute legal and beneficial holder
      of its rights under the Transaction Documents for all purposes, despite
      any notice to the contrary, unless otherwise required by
    law.

              

      

      
        
           

          
            
              
                
                  	
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                18.16

              	
                Electronic
      transmission of notices

              

      

       

      Commencing
on a date to be determined by the Agent and notified to the other parties to
this agreement, notices, requests, demands, consents, approvals, agreements or
other communications to or by the Agent under the Transaction
Documents:

       

      
        	
                (a)

              	
                may
      be given by means of a secure website established by the Agent, access to
      which is restricted to the parties to the Transaction Documents (and,
      where applicable, their financial and legal advisers);
  and

              

      

       

      
        	
                (b)

              	
                will
      be taken to be given or made on:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                a
      notice being posted on the secure website;
and

              

      

       

      
        	
                 
      

              	
                (2)

              	
                receipt
      by the Agent of a delivery receipt in respect of an e-mail the Agent has
      sent to the relevant party’s nominated email address (as notified to the
      Agent at least 5 days before any e-mail is sent by the Agent or
      notice posted on the secure website) advising that the notice has become
      available on the secure website.

              

      

      
         

        
          	
                  19

                	
                  Assignment

                

        

        
          
            

          

        

      

       

      
        	
                19.1

              	
                Assignment
      by Transaction Party

              

      

       

      A
Transaction Party must not assign or novate any of its rights or obligations
under a Transaction Document without the prior written consent of all of the
Financiers.

       

      
        	
                19.2

              	
                Assignment
      by Finance Party

              

      

       

      A Finance
Party may assign or novate any of its rights and obligations under a Transaction
Document to any person without the consent of the Transaction Parties or any
other Finance Party if:

       

      
        	
                (a)

              	
                any
      necessary prior Authorisation is
obtained;

              

      

       

      
        	
                (b)

              	
                the
      assignment or novation is to a person in the RMB group of companies or the
      Macquarie group of companies (as applicable) (which term includes any
      person, partnership or corporate entity in that group) or, after
      consultation with the Borrower, to a reputable bank or financial
      institution or to a combination of reputable banks and financial
      institutions; and

              

      

       

      
        	
                (c)

              	
                it
      notifies the Agent and the
Borrower.

              

      

       

      
        	
                19.3

              	
                Substitution
      agreement

              

      

       

      
        	
                (a)

              	
                If
      a Financier wishes to novate any of its rights and obligations under a
      Transaction Document to a Substitute Financier, it must notify the Agent
      at least 5 Business Days before the substitution (or such shorter
      period as the Agent approves), of the
following:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                the
      name of the Substitute Financier;

              

      

       

      
        	
                 
      

              	
                (2)

              	
                the
      proportion of its Commitment and its Principal Outstanding to be assumed
      by the Substitute Financier; and

              

      

       

      
        	
                 
      

              	
                (3)

              	
                the
      proposed date of the substitution.

              

      

       

      
        	
                (b)

              	
                The
      Retiring Financier and the Substitute Financier must execute a
      substitution agreement in the form of Attachment 2 and deliver it to the
      Agent at least 2 Business Days before the substitution (or any
      shorter period as the Agent
approves).

              

      

      
        
           

          
            
              
                
                  	
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                (c)

              	
                When
      the Agent receives a substitution agreement under clause 19.3(b) it
      is authorised to, and must:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                execute
      it on behalf of all the parties to this agreement other than the Retiring
      Financier;

              

      

       

      
        	
                 
      

              	
                (2)

              	
                notify
      each of the parties to this agreement of the substitution;
    and

              

      

       

      
        	
                 
      

              	
                (3)

              	
                deliver
      copies of it to the Borrower, the Retiring Financier and the Substitute
      Financier.

              

      

       

      
        	
                19.4

              	
                Assist

              

      

       

      Each
party must do any thing which the Agent reasonably requests including, executing
any documents or amending any Transaction Document, to effect any transfer,
assignment or novation under this clause 19.

       

      
        	
                19.5

              	
                Participation
      not permitted

              

      

       

      A Finance
Party may not grant a participation interest (being a right to share in the
financial benefits of this agreement, without any rights against a Transaction
Party) in any of that Finance Party’s rights and benefits under this agreement
to any other person without having to obtain the consent of or to notify a
Transaction Party.

       

      
        	
                19.6

              	
                Lending
      Office

              

      

       

      
        	
                (a)

              	
                A
      Financier may change its Lending Office at any
  time.

              

      

       

      
        	
                (b)

              	
                A
      Financier must promptly notify the Agent and the Borrower of the
      change.

              

      

       

      
        	
                19.7

              	
                No
      increase in costs

              

      

       

      If a
Financier assigns or novates any of its rights or obligations under any
Transaction Document or changes its Lending Office, no Transaction Party is
required to pay any net increase in the aggregate amount of costs, Taxes, fees
or charges which is a direct consequence of the transfer or assignment or change
of Lending Office.

       

      
        	
                19.8

              	
                Anti-Money
      Laundering

              

      

       

      
        	
                (a)

              	
                The
      Transaction Parties acknowledge that, pursuant to the Proceeds of Crime (Money
      Laundering) and Terrorist Financing Act (Canada) and other
      applicable anti-money laundering, anti-terrorist financing, government
      sanction and “know your client” laws, whether within Canada or elsewhere
      (collectively, including any guidelines or orders thereunder, AML Legislation), the
      Finance Parties may be required to obtain, verify and record information
      regarding the Transaction Party, its directors, authorised signing
      officers, direct or indirect shareholders or other Persons in control of a
      Transaction Party, and the transactions contemplated under the Transaction
      Documents. The Transaction Parties will promptly provide all such
      information, including supporting documentation and other evidence, as may
      be reasonably requested by any Finance Party, or any prospective assign or
      participant of a Finance Party, in order to comply with any applicable AML
      Legislation, whether now or hereafter in
  existence.

              

      

       

      
        	
                (b)

              	
                If
      the Agent has ascertained the identity of a Transaction Party or any
      authorised signatories of a Transaction Party for the purposes of
      applicable AML Legislation, then the
Agent:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                shall
      be deemed to have done so as an agent for each other Finance Party, and
      this Agreement shall constitute a “written agreement” in such regard
      between each such other Finance Party and the Agent within the meaning of
      applicable AML Legislation; and

              

      

      
        
           

          
            
              
                
                  	
                          Bridge Facility
      Agreement

                        	
                          Page
    67

                        

                

                 

              

            

          

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          	 	
                   

                

        

         

      

      
        	
                 
      

              	
                (2)

              	
                shall
      provide to each other Finance Party copies of all information obtained in
      such regard without any representation or warranty as to its accuracy or
      completeness.

              

      

       

      Notwithstanding
the preceding sentence and except as may otherwise be agreed in writing, each of
the other Finance Parties agrees that the Agent has no obligation to ascertain
the identity of a Transaction Party or any authorised signatories of a
Transaction Party on behalf of the other Finance Parties, or to confirm the
completeness or accuracy of any information it obtains from a Transaction Party
or any authorised signatory in doing so.

       

      
        
          	
                  20

                	
                  Saving
      provisions

                

        

        
          
 

      

      
        	
                20.1

              	
                No
      merger of security

              

      

       

      
        	
                (a)

              	
                Nothing
      in this agreement merges, extinguishes, postpones, lessens or otherwise
      prejudicially affects:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                any
      Encumbrance or indemnity in favour of any Finance Party;
  or

              

      

       

      
        	
                 
      

              	
                (2)

              	
                any
      Power.

              

      

       

      
        	
                (b)

              	
                No
      other Encumbrance or Transaction Document which a Finance Party has the
      benefit of in any way prejudicially affects any
  Power.

              

      

       

      
        	
                (c)

              	
                Any
      reference in any of the Transaction Documents to a Permitted Encumbrance
      is not intended to subordinate or postpone, and shall not be interpreted
      as subordinating or postponing, or as any agreement to subordinate or
      postpone, any Security to any
Encumbrance.

              

      

       

      
        	
                20.2

              	
                Exclusion
      of moratorium

              

      

       

      To the
extent not excluded by law, a provision of any legislation which directly or
indirectly:

       

      
        	
                (a)

              	
                lessens,
      varies or affects in favour of a Transaction Party any obligations under a
      Transaction Document; or

              

      

       

      
        	
                (b)

              	
                stays,
      postpones or otherwise prevents or prejudicially affects the exercise by
      any Finance Party of any Power,

              

      

       

      is
negatived and excluded from each Transaction Document and all relief and
protection conferred on a Transaction Party by or under that legislation is also
negatived and excluded.

       

      
        	
                20.3

              	
                Conflict

              

      

       

      Where any
right, power, authority, discretion or remedy conferred on a Finance Party, a
Receiver or an Attorney by any Transaction Document is inconsistent with the
powers conferred by applicable law then, to the extent not prohibited by that
law, those conferred by applicable law are regarded as negatived or varied to
the extent of the inconsistency.

       

      
        	
                20.4

              	
                Consents

              

      

       

      
        	
                (a)

              	
                Whenever
      the doing of any thing by a Transaction Party is dependent on the consent
      of a Finance Party, the Finance Party may withhold its consent or give it
      conditionally or unconditionally in its absolute discretion, unless
      expressly stated otherwise in a Transaction
  Document.

              

      

      
         

        
          
            
              
                	
                        Bridge Facility
      Agreement

                      	
                        Page
    68

                      

              

               

            

          

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	 	
                 

              

      

       

      
        	
                (b)

              	
                Any
      conditions imposed on a Transaction Party by a Finance Party under
      clause 20.4(a) must be complied with by the Transaction
      Party.

              

      

       

      
        	
                20.5

              	
                Principal
      obligations

              

      

       

      This
agreement and each Collateral Security is:

       

      
        	
                (a)

              	
                a
      principal obligation and is not ancillary or collateral to any other
      Encumbrance (other than another Collateral Security) or other obligation;
      and

              

      

       

      
        	
                (b)

              	
                independent
      of, and unaffected by, any other Encumbrance or other obligation which any
      Finance Party may hold at any time in respect of the Secured
      Moneys.

              

      

       

      
        	
                20.6

              	
                Non-avoidance

              

      

       

      If any
payment by a Transaction Party to a Finance Party is avoided for any reason
including any legal limitation, disability or incapacity of or affecting the
Transaction Party or any other thing, and whether or not:

       

      
        	
                (a)

              	
                any
      transaction relating to the Secured Moneys was illegal, void or
      substantially avoided; or

              

      

       

      
        	
                (b)

              	
                any
      thing was or ought to have been within the knowledge of any Finance
      Party,

              

      

       

      the
Transaction Party:

       

      
        	
                (c)

              	
                as
      an additional, separate and independent obligation, indemnifies each
      Finance Party against that avoided payment;
and

              

      

       

      
        	
                (d)

              	
                acknowledges
      that any liability of the Transaction Party under the Transaction
      Documents and any right or remedy of the Finance Parties under the
      Transaction Documents is the same as if that payment had not been
      made.

              

      

       

      
        	
                20.7

              	
                Set-off
      authorised

              

      

       

      If a
Transaction Party does not pay any amount when due and payable by it to any
Finance Party under a Transaction Document, the Finance Party may:

       

      
        	
                (a)

              	
                apply
      any credit balance in any currency in any account of the Transaction Party
      with the Finance Party in or towards satisfaction of that amount;
      and

              

      

       

      
        	
                (b)

              	
                effect
      any currency conversion which may be required to make an application under
      clause 20.7(a).

              

      

       

      
        	
                20.8

              	
                Agent’s
      certificates and approvals

              

      

       

      
        	
                (a)

              	
                A
      certificate signed by any Officer of the Agent in relation to any amount,
      calculation or payment under any Transaction Document is sufficient
      evidence of that amount, calculation or payment unless the contrary is
      proved.

              

      

       

      
        	
                (b)

              	
                Where
      any provision of a Transaction Document requires the Agent’s approval,
      that approval will not be effective unless and until it is provided in
      writing.

              

      

       

      
        	
                20.9

              	
                No
      reliance or other obligations and risk
  assumption

              

      

       

      Each
Transaction Party acknowledges and confirms that:

       

      
        	
                (a)

              	
                it
      has not entered into any Transaction Document in reliance on any
      representation, warranty, promise or statement made by or on behalf of any
      Finance Party;

              

      

       

      
        	
                (b)

              	
                in
      respect of the transactions evidenced by the Transaction Documents, no
      Finance Party has any obligations other than those expressly set out in
      the Transaction Documents; and

              

      

      
         

        
          
            
              
                	
                        Bridge Facility
      Agreement

                      	
                        Page
    69

                      

              

               

            

          

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
         

        
          	 	
                   

                

        

         

      

      
        	
                (c)

              	
                in
      respect of interest rates, exchange rates or commodity prices, no Finance
      Party is liable for any movement in interest rates, exchange rates or
      commodity prices or any information, advice or opinion provided by any
      Finance Party or any person on behalf of any Finance Party, even
      if:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                provided
      at the request of a Transaction Party (it being acknowledged by each
      Transaction Party that those matters are inherently
      speculative);

              

      

       

      
        	
                 
      

              	
                (2)

              	
                relied
      on by a Transaction Party; or

              

      

       

      
        	
                 
      

              	
                (3)

              	
                provided
      incorrectly or negligently.

              

      

       

      
        	
                20.10

              	
                Power
      of attorney

              

      

       

      
        	
                (a)

              	
                For
      consideration received, each Transaction Party irrevocably appoints the
      Agent and each Officer of the Agent, effective upon the occurrence and
      during the continuance of an Event of Default, as the attorney of the
      Transaction Party to:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                execute
      and deliver all documents; and

              

      

       

      
        	
                 
      

              	
                (2)

              	
                do
      all things,

              

      

       

      which are
necessary or desirable to give effect to each Transaction Document.

       

      
        	
                (b)

              	
                An
      attorney appointed under clause 20.10(a) may appoint a substitute
      attorney to perform any of its
powers.

              

      

       

      
        
          	
                  21

                	
                  General

                

        

        
          
 

      

      
        	
                21.1

              	
                Confidential
      information

              

      

       

      A Finance
Party must not disclose to any person:

       

      
        	
                (a)

              	
                any
      Transaction Document; or

              

      

       

      
        	
                (b)

              	
                any
      information about any Transaction
Party,

              

      

       

      except:

       

      
        	
                (c)

              	
                in
      connection with a permitted assignment, novation or participation under
      clause 19, where the disclosure is made on the basis that the
      recipient of the information will comply with this clause 21.1 in the
      same way that the Finance Party is required to
  do;

              

      

       

      
        	
                (d)

              	
                to
      any professional or other adviser consulted by it in relation to any of
      its rights or obligations under the Transaction
  Documents;

              

      

       

      
        	
                (e)

              	
                to
      a country’s central bank, a country’s taxation office or any Government
      Agency requiring disclosure of the
information;

              

      

       

      
        	
                (f)

              	
                in
      connection with the enforcement of its rights under the Transaction
      Documents;

              

      

       

      
        	
                (g)

              	
                where
      the information is already in the public domain, or where the disclosure
      would not otherwise breach any duty of
  confidentiality;

              

      

       

      
        	
                (h)

              	
                if
      required by applicable law or the rules of any securities exchange;
      or

              

      

       

      
        	
                (i)

              	
                otherwise
      with the prior written consent of the relevant Transaction Party (that
      consent not to be unreasonably
withheld).

              

      

       

      
        	
                21.2

              	
                Transaction
      Party to bear cost

              

      

       

      Any thing
which must be done by a Transaction Party under any Transaction Document,
whether or not at the request of any Finance Party, must be done at the cost of
the Transaction Party.

      
        
           

          
            
              
                
                  	
                          Bridge Facility
      Agreement

                        	
                          Page
    70

                        

                

                 

              

            

          

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          	 	
                   

                

        

         

      

      
        	
                21.3

              	
                Notices

              

      

       

      
        	
                (a)

              	
                Any
      notice or other communication including, any request, demand, consent or
      approval, to or by a party to any Transaction Document must be in legible
      writing and in English addressed to the party in accordance with its
      details set out in Schedule 1 or as specified to the sender by the party
      by notice.

              

      

       

      
        	
                (b)

              	
                If
      the sender is a company, any such notice or other communication must be
      signed by an Officer of the sender.

              

      

       

      
        	
                (c)

              	
                Any
      notice or other communication described in this clause 21.3 is regarded as
      being given by the sender and received by the
  addressee:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                if
      by delivery in person or by recognized overnight courier, when delivered
      to the addressee;

              

      

       

      
        	
                 
      

              	
                (2)

              	
                if
      by post, on delivery to the addressee;
or

              

      

       

      
        	
                 
      

              	
                (3)

              	
                if
      by facsimile, when received by the addressee in legible
    form,

              

      

       

      but if
the delivery or receipt is on a day which is not a Business Day or is after
4.00pm (addressee’s time) it is regarded as received at 9.00am on the following
Business Day.

       

      
        	
                (d)

              	
                Any
      notice or other communication described in this clause 21.3 can be relied
      on by the addressee and the addressee is not liable to any other person
      for any consequences of that reliance if the addressee believes it to be
      genuine, correct and authorised by the
sender.

              

      

       

      
        	
                (e)

              	
                A
      facsimile transmission is regarded as legible unless the addressee
      telephones the sender within 24 hours after the transmission is
      received or regarded as received under clause 21.3(c) and informs the
      sender that it is not legible.

              

      

       

      
        	
                21.4

              	
                Governing
      law and jurisdiction

              

      

       

      
        	
                (a)

              	
                This
      agreement is governed by the laws of the Province of Ontario and the laws
      of Canada which are applicable in the Province of Ontario, other than any
      laws which would result in the imposition of the laws of another
      jurisdiction.

              

      

       

      
        	
                (b)

              	
                Each
      Transaction Party and each Finance Party irrevocably submits to the
      non-exclusive jurisdiction of the federal courts of the Province of
      Ontario.

              

      

       

      
        	
                (c)

              	
                Each
      Transaction Party and each Finance Party irrevocably waives any objection
      to the venue of any legal process on the basis that the process has been
      brought in an inconvenient forum.

              

      

       

      
        	
                (d)

              	
                Each
      Transaction Party and each Finance Party irrevocably waives any immunity
      in respect of its obligations under this agreement that it may acquire
      from the jurisdiction of any court or any legal process for any reason
      including the service of notice, attachment before judgment, attachment in
      aid of execution or execution.

              

      

       

      
        	
                21.5

              	
                Prohibition
      and enforceability

              

      

       

      
        	
                (a)

              	
                Any
      provision of, or the application of any provision of, any Transaction
      Document or any Power which is prohibited in any jurisdiction is, in that
      jurisdiction, ineffective only to the extent of that
      prohibition.

              

      

       

      
        	
                (b)

              	
                Any
      provision of, or the application of any provision of, any Transaction
      Document which is void, illegal or unenforceable in any jurisdiction does
      not affect the validity, legality or enforceability of that provision in
      any other jurisdiction or of the remaining provisions in that or any other
      jurisdiction.

              

      

      
         

        
          
            
              
                	
                        Bridge Facility
      Agreement

                      	
                        Page
    71

                      

              

               

            

          

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	 	
                 

              

      

       

      
        	
                21.6

              	
                Waivers

              

      

       

      
        	
                (a)

              	
                Waiver
      of any right arising from a breach of this agreement or of any Power
      arising on default under this agreement or on the occurrence of an Event
      of Default must be in writing and signed by the party granting the
      waiver.

              

      

       

      
        	
                (b)

              	
                A
      failure or delay in exercise, or partial exercise,
  of:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                a
      right arising from a breach of this agreement or the occurrence of an
      Event of Default; or

              

      

       

      
        	
                 
      

              	
                (2)

              	
                a
      Power created or arising on default under this agreement or on the
      occurrence of an Event of Default,

              

      

       

      does not
result in a waiver of that right or Power.

       

      
        	
                (c)

              	
                A
      party is not entitled to rely on a delay in the exercise or non-exercise
      of a right or Power arising from a breach of this agreement or on a
      default under this agreement or on the occurrence of an Event of Default
      as constituting a waiver of that right or
Power.

              

      

       

      
        	
                (d)

              	
                A
      party may not rely on any conduct of another party as a defence to
      exercise of a right or Power by that other
  party.

              

      

       

      
        	
                (e)

              	
                This
      clause may not itself be waived except in
  writing.

              

      

       

      
        	
                21.7

              	
                Variation

              

      

       

      A
variation of any term of this agreement must be in writing and signed by the
parties.

       

      
        	
                21.8

              	
                Cumulative
      rights

              

      

       

      The
Powers are cumulative and do not exclude any other right, power, authority,
discretion or remedy of any Finance Party, Receiver or Attorney.

       

      
        	
                21.9

              	
                Attorneys

              

      

       

      Each of
the attorneys executing this agreement states that the attorney has no notice of
the revocation of the power of attorney appointing that attorney.

       

      
        	
                21.10

              	
                Counterparts

              

      

       

      
        	
                (a)

              	
                This
      agreement may be executed in any number of
  counterparts.

              

      

       

      
        	
                (b)

              	
                All
      counterparts, taken together, constitute one
  instrument.

              

      

       

      
        	
                (c)

              	
                A
      party may execute this agreement by signing any
    counterpart.

              

      

      
         

        
          
            
              
                	
                        Bridge Facility
      Agreement

                      	
                        Page
    72

                      

              

               

            

          

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	 	
                 

              

      

       

      Signing
page

       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	 	Executed as
      an agreement
	 	 
	 	 
	 
      	
                                    Borrower

                                  
	 	 
	 
      	
                                    Signed
      for

                                    Apollo
      Gold Corporation

                                    By
      its authorised signatory

                                  
	 	 
	
                                    By:

                                  	
                                    /s/
      R D Russell

                                  	 
      
	 
      	
                                    Authorised
      Signatory

                                  	 
      
	 	 	 
	
                                    print name

                                  	
                                    R
      David Russell

                                  	 
      
	
                                    title

                                  	
                                    President
      and CEO

                                  	 
      

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

      
        
          
            	 
      	
                    Agent
      and Security Agent

                  
	 
      	
                     

                    Signed
      for

                    RMB
      Resources Inc.

                    By
      its authorised officer

                     

                  
	
                    By:

                  	
                    /s/
      Richard A Winters

                  	 
      
	 
      	
                    Authorised
      Officer

                  	 
      
	 	 	 
	
                    print name

                  	
                    Richard
      A Winters

                  	 
      
	
                    title

                  	
                    President

                  	 
      

          

        

      

      
         

        
          
            
              
                	
                        Bridge Facility
      Agreement

                      	
                        Page
    73

                      

              

               

            

          

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

        
           

          
            	 	
                    Signing
      page

                  

          

        

      

      
         

      

      
        
          
            
              
                
                  
                    
                      	 
      	
                              Financier

                            
	 
      	
                               

                              Signed
      for

                              RMB
      Australia Holdings Limited

                              By

                               

                            
	
                              By:

                            	
                              /s/
      Michael P.C. Brogan

                            	 
      
	 
      	
                              Director

                            	 
      
	 	 	 
	
                              print name

                            	
                              Michael
      P.C.
      Brogan

                            	 
      
	 	 	 
	
                              By:

                            	
                              /s/
      Gregory Gay

                            	 
      
	 
      	
                              Director
      / Secretary

                            	 
      
	 	 	 
	
                              print name

                            	
                              Gregory
      Gay

                            	 
      
	
                              title

                            	
                              Director

                            	 
      

                    

                  

                

              

            

          

        

      

       

      
      

      
        
          
            
              
                	 
      	
                        
                          Financier

                        

                         

                        Signed
      for

                        Macquarie
      Bank Limited

                        by
      its attorneys

                         

                      
	
                        sign here

                      	
                        /s/
      Katie Chol

                      	 
      	
                        /s/
      Julia Mathison

                      
	 
      	
                        Attorney

                      	 
      	
                        Attorney

                      
	 	 	 	 
	
                        print name

                      	
                        Katie
      Chol, Division Director

                      	 
      	
                        Julia
      Mathison, Senior Lawyer

                      
	 
      	
                        in
      the presence of

                      
	 	 
	
                        sign here

                      	
                        /s/
      Neshaat Mirzaie

                      	 
      	
                        /s/
      Neshaat Mirzaie

                      
	 
      	
                        Witness

                      	 
      	
                        Witness

                      
	 	 	 	 
	
                        print name

                      	
                        Neshaat
      Mirzaie, Lawyer

                      	 
      	
                        Neshaat
      Mirzaie, Lawyer

                      
	 
      

              

            

          

        

      

      
         

        
          
            
              
                	
                        Bridge Facility
      Agreement

                      	
                        Page
    74

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