Document:

ex10_2.htm

[TRANSCANADA LOGO]

 

 

April 6th, 2011

 

Quicksilver Resources Canada Inc.

One Palliser Square

2000, 125-9th Avenue SE

Calgary, AB T2G 0P8

 

Attention:   Tony Kuehne

     Marketing Manager

 

Dear Mr. Kuehne:

 

	
Re:

	
Commitment Letter Agreement (the “Commitment Letter Agreement”) to Support the Proposed Installation of the Horn River Mainline (Komie North Section) from a-66-A/94-O-15 to d-64-J/94-P-4 (the “Pipeline Project”)

 

NOVA Gas Transmission Ltd. (“NGTL”) and Quicksilver Resources Canada Inc. (the “Customer”) have had discussions regarding the Horn River Mainline (Komie North Section). Customer has requested that NGTL construct the Horn River Mainline (Komie North Section). NGTL has, subject to certain terms and conditions, agreed to construct the Horn River Mainline (Komie North Section), however, NGTL must ensure the supply forecast used in the Horn River drainage area as set out in Schedule A (“Horn River Drainage Area”) justifies the need, necessity, and long term economics of the Horn River Mainline (Komie North Section). Customer has agreed to support NGTL and the Horn River Mainline (Komie North Section) as described in the Project and Expenditure Authorization dated April 6th, 2011 between NGTL and Customer (the “PEA”), and provide NGTL with a commitment that proprietary natural gas production from the Horn River Drainage Area will connect to a NGTL receipt point on the Horn River Mainline (Komie North Section) on the following terms and conditions:

 

	
1.  

	
Subject to paragraph 2, Customer hereby agrees that, commencing on the in-service date of the Pipeline Project:

 

 

	
a.  

	
proprietary natural gas production from the Horn River Drainage Area shall be delivered to NGTL at a NGTL receipt point on the Horn River Mainline (Komie North Section), excluding such gas that is currently subject to a firm gas transportation contract with Spectra Energy Corp. and Westcoast Energy Inc. (collectively, “Third Party Contracts”); and

 

 

	
b.  

	
future proprietary natural gas production from the Horn River Drainage Area, shall be delivered to NGTL at a NGTL receipt point on the Horn River Mainline (Komie North Section) commencing May 1, 2014 and ending the earlier of:

 

 

	
i.  

	
the date the cumulative revenue for the receipt services at receipt points on the Horn River Mainline (Komie North Section) exceeds the cost of the Facilities (as defined in the PEA) (the “Facilities End Date”); and

 

 

	
ii.  

	
the date the cumulative volume of natural gas received by NGTL through meter stations connected to the Horn River Mainline (Komie North Section) equals 1 TcF (the “TcF End Date”).

 

 

If NGTL determines that it does not have sufficient pipeline capacity on either the Horn River Mainline (Komie North Section) or on downstream mainline facilities for natural gas production from the Horn River Drainage Area such that NGTL is unable to provide firm service receipt transportation service and NGTL advises Customer in writing of such determination, then Customer may transport such gas on alternative pipelines for the period of time that such firm service receipt transportation service is not available.

 

 

	
2.  

	
Upon expiration of Customer’s Third Party Contracts, Customer agrees that all Customer volumes of gas produced from the Horn River Drainage Area shall be delivered to NGTL at a NGTL receipt point on the Horn River Mainline (Komie North Section) until the earlier of the Facilities End Date or the Tcf End Date.

 

 

	
3.  

	
Notwithstanding paragraphs 1 and 2, if Customer renews existing Third Party Contracts or executes new firm gas transportation contracts with other third party service providers for volumes of gas produced from the Horn River Drainage Area, and, if at least one year prior to the end of the term of the Schedules of Service attached as Schedule “B” to the PEA (the “SOS”) neither the Facilities End Date nor the TcF End Date have occurred, then Customer shall renew the SOS in accordance with the NOVA Gas Transmission Ltd. Gas Transportation Tariff, on an annual basis (the “Renewal SOS”) until the Facilities End Date or the TcF End Date has been reached. The Renewal SOS shall be for the minimum volumes of 106 mmcf/d.

 

 

	
4.  

	
NGTL shall provide to Customer, at Customer’s request, but not more often than annually, a reporting of the volumes received from Customer at NGTL receipt points on the Horn River Mainline (Komie North Section).

 

 

	
5.  

	
If at any time Customer sells, assigns or transfers all or a portion of Customer’s interests in the Horn River Drainage Area, Customer covenants and agrees that such sale, assignment or transfer shall be subject to Customer assigning its rights and obligations under this Commitment Letter Agreement in whole or on a proportional basis, as applicable, to the new party, provided NGTL has provided its written consent to such assignment, such consent not to be unreasonably withheld. NGTL agrees that if NGTL provides its consent, Customer shall have no further liability or obligation under this Commitment Letter Agreement as of and after the effective date of the sale, assignment or transfer in respect of such Customer’s interest that has been sold, assigned or transferred. Customer agrees that Customer shall be liable to and shall pay to NGTL within 5 business days of receipt of an invoice an amount equal to the loss of profits or revenues NGTL may sustain or incur as a result of Customer’s failure to comply with this provision.  

 

 

	
6.  

	
In the event that Customer elects to flow natural gas production from lands that it acquires that are proximate or adjacent to, but not part of, the Horn River Drainage Area, on the Horn River Mainline (Komie North Section), those volumes and the NGTL receipt service revenue associated with those volumes will contribute to the Tcf End Date or the Facilities End Date, as applicable.

 

 

	
7.  

	
This Commitment Letter Agreement shall terminate and be of no force and effect if the PEA terminates for any reason, other than termination under Paragraph 13 (Completion of Work) of that agreement.

 

 

	
8.  

	
The terms and conditions of this Commitment Letter Agreement (the "Confidential Information") shall be kept confidential by the Customer and NGTL, and no party shall be permitted to disclose the Confidential Information without the prior written consent of the non-disclosing party (which consent may be withheld in the sole discretion of each non-disclosing party). Such prohibition does not prevent the disclosure of such Confidential Information:

 

	
i.  

	
to Affiliates (as that term is defined in the PEA) and representative engaged by any of the parties in connection with this Commitment Letter Agreement and who are made aware of the confidential nature of the Confidential Information;

 

	
ii.  

	
customers of a party where such disclosure is reasonably required under contracts with customers and who are made aware of the confidential nature of the Confidential Information;

 

	
iii.  

	
which is ordered or required to be disclosed by a party pursuant to any  law, statute, regulation, rule, official directive, guideline, ordinance, order or directive enacted or issued by any governmental authority and includes the provisions and conditions of any permit, license or other governmental or regulatory authorization having jurisdiction over the parties, or the subject matter of this Commitment Letter Agreement; or

 

	
iv.  

	
that is already generally available to the public through publication or otherwise.

 

 

	
9.  

	
This Commitment Letter Agreement shall be governed by and construed in accordance with the laws of the Province of Alberta applicable therein, and each of the parties irrevocably submit to the jurisdiction of the courts of Alberta for the interpretation and enforcement hereof.

 

 

	
10.  

	
Each of NGTL and Customer agree to comply with all laws, regulations, rules and orders applicable to the observance or performance of their respective obligations under this Commitment Letter Agreement.

 

 

	
11.  

	
Each of NGTL and Customer will, at the request of the other party and without further consideration, do all further acts and execute and deliver all further documents reasonably required to carry out the terms of this Commitment Letter Agreement.

 

 

	
12.  

	
If any provision of this Commitment Letter Agreement is restricted, prohibited or unenforceable, such provision shall be ineffective only to the extent of such restriction, prohibition or unenforceability without invalidating the remaining provisions of this Commitment Letter Agreement

 

 

	
13.  

	
This Commitment Letter Agreement may be executed in counterpart and a complete set of counterpart pages shall be provided to each party.  A facsimile signature shall be deemed to be an original.

 

Please indicate your agreement to the terms and conditions of this Commitment Letter Agreement below. If you have any questions or would like to discuss this further, please call Rob Swart, Customer Account Manager, at (403) 920-5590.

Yours truly,

	
NOVA GAS TRANSMISSION LTD.

	
 

	  
	  By:   	
/s/ Stephen M.V. Clark

	  	

Name:Stephen M.V. Clark

	  	Title: Vice President, Commercial
	  	  
	
By:   

	 /s/ Karl Johannson
	  	
Name:Karl Johannson

	  	
Title: President

The terms and conditions of this Commitment Letter Agreement are hereby agreed to this 12th day of April, 2011 by:

 

	
QUICKSILVER RESOURCES CANADA INC.

	
 

	  
	 Per:   	 /s/ Philip Cook
	  	
Name: /s/ Philip Cook

	  	
Title: Vice President--Finance

	  	  
	  	  
	
 

	  
	  	
 

	  	
 

 

  

  

  

 

Schedule A

Horn River Drainage Area for Horn River Mainline (Komie North Section)

[see attached]Sonora Resources Corp.: Exhibit 4.13 - Filed by newsfilecorp.com

THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE
SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE AND
HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), AND, ACCORDINGLY, MAY NOT
BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER
THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A
TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT
AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.

STOCK OPTION AGREEMENT
 (U.S. Persons)

This AGREEMENT is entered into as of the <>th day of
<>, <> (the “Date of Grant”).

BETWEEN:

SONORA RESOURCES COPR., a
company incorporated pursuant to the laws of the State of Nevada, with an office
at 3120 S. Durango Drive, Suite 305, Las Vegas, Nevada 89117-4454

(the “Company”)

AND:

<>, a businessman with an
address at <> 

(the “Optionee”) 

WHEREAS:

A. The Company’s board of directors (the “Board”) has approved
and adopted a 2010 Stock Option Plan (the “Plan”), whereby the Board is
authorized to grant stock options to purchase shares of common stock of the
Company to the directors, officers, employees and consultants of the Company and
its subsidiaries; 

B. The Optionee is a director, officer, employee or consultant
of the Company or subsidiary of the Company; and

C. The Company wishes to grant stock options to purchase a
total of <>[INSERT NUMBER OF OPTIONS] Optioned Shares (as defined
herein) to the Optionee, as follows:

__________________________ Incentive
Stock Options

__________________________ Non
Qualified Stock Options

NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of
the covenants and agreements set forth herein and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties hereto agree as follows:

1. DEFINITIONS

1.1 In this Agreement, the following terms shall have the
following meanings:

	 	(a) 	
      “Common Stock” means the shares of common stock of
      the Company;

	 	 	 
	 	(b) 	
      “Exercise Price” means $<> per
  share;

	 	 	 
	 	(c) 	
      “Expiry Date” means <>,
  <>;

2

	 	(d) 	
      “Notice of Exercise” means a notice in writing
      addressed to the Company at its address first recited hereto (or such
      other address of which the Company may from time to time notify the
      Optionee in writing), substantially in the form attached as Schedule “D”
      hereto, which notice shall specify therein the number of Optioned Shares
      in respect of which the Options are being exercised;

	 	 	 
	 	(e) 	
      “Options” means the irrevocable right and option
      to purchase, from time to time, all, or any part of the Optioned Shares
      granted to the Optionee by the Company pursuant to Section 2.1 of this
      Agreement;

	 	 	 
	 	(f) 	
      “Optioned Shares” means the shares of Common Stock
      that are issued pursuant to the exercise of the Options;

	 	 	 
	 	(g) 	
      “Securities” means, collectively, the Options and
      the Optioned Shares;

	 	 	 
	 	(h) 	
      “Shareholders” means holders of record of the
      shares of Common Stock;

	 	 	 
	 	(i) 	
      “U.S. Person” shall have the meaning ascribed
      thereto in Regulation S under the 1933 Act, and for the purpose of the
      Agreement includes any person in the United States; and

	 	 	 
	 	(j) 	
      “Vested Options” means the Options that have
      vested in accordance with Section 2.2 of this
Agreement.

1.2 Capitalized terms not otherwise defined herein shall have
the meanings ascribed thereto in the Plan.

2. THE OPTIONS

2.1 The Company hereby grants to the Optionee, on the terms and
conditions set out in this Agreement and in the Plan, Options to purchase a
total of <>Optioned Shares at the Exercise Price.

2.2 The Options will vest in accordance with Schedule “A” to
this Agreement. The Options may be exercised immediately after vesting.

2.3 The Options shall, at 5:00 p.m. (Pacific time) on the
Expiry Date, expire and be of no further force or effect whatsoever.

2.4 The Company shall not be obligated to cause the issuance,
transfer or delivery of a certificate or certificates representing Optioned
Shares to the Optionee, until provision has been made by the Optionee, to the
satisfaction of the Company, for the payment of the aggregate Exercise Price for
all Optioned Shares for which the Options shall have been exercised, and for
satisfaction of any tax withholding obligations associated with such
exercise.

2.5 The Optionee shall have no rights whatsoever as a
shareholder in respect of any of the Optioned Shares (including any right to
receive dividends or other distribution therefrom or thereon) except in respect
of which the Options have been properly exercised in accordance with the terms
of this Agreement.

2.6 The Options will terminate in accordance with the
provisions of the Plan.

2.7 Subject to the provisions of this Agreement and the Plan
and subject to compliance with any applicable securities laws, the Options shall
be exercisable, in full or in part, at any time after vesting, until
termination; provided, however, that if the Optionee is subject to the reporting
and liability provisions of Section 16 of the Securities Exchange Act of
1934, as amended, with respect to the Common Stock, the Optionee shall be
precluded from selling, transferring or otherwise disposing of any Common Stock
underlying any of the Options during the six months immediately following the
grant of the Options. If less than all of the shares included in the vested
portion of any Options are purchased, the remainder may be purchased at any
subsequent time prior to the Expiry Date. Only whole shares may be issued
pursuant to the exercise of any Options, and to the extent that any Option
covers less than one (1) share, it is not exercisable.

2.8 Each exercise of the Options shall be by means of delivery
of a Notice of Exercise (which may be in the form attached hereto as Schedule
“D”) to the President of the Company at its principal executive office,
specifying the number of Optioned Shares to be purchased and accompanied by
payment in cash or by certified check or cashier’s check in the amount of the
full Exercise Price for the Common Stock to be purchased. In addition to payment
in cash or by certified check or cashier’s check and if agreed to in advance by the
Company, the Optionee or transferee of the Options may pay for all or any
portion of the aggregate Exercise Price by complying with one or more of the
following alternatives:

3

	 	(a) 	
      by delivering to the Company shares of Common Stock
      previously held by the Optionee, or by the Company withholding shares of
      Common Stock otherwise deliverable pursuant to the exercise of the
      Options, which shares of Common Stock received or withheld shall have a
      fair market value at the date of exercise (as determined by the Board)
      equal to the aggregate exercise price to be paid by the Optionee upon such
      exercise; or

	 	 	 
	 	(b) 	
      by complying with any other payment mechanism approved by
      the Board at the time of exercise.

2.9 It is a condition precedent to the issuance of Optioned
Shares that the Optionee execute and/or deliver to the Company all documents and
withholding taxes required in accordance with applicable laws.

2.10 Nothing in this Agreement shall obligate the Optionee to
purchase any Optioned Shares except those Optioned Shares in respect of which
the Optionee shall have exercised the Options in the manner provided in this
Agreement or the Plan.

2.11 Reference is made to the Plan for particulars of the
rights and obligations of the Optionee and the Company in respect of:

	 	(a) 	
      the terms and conditions on which the Options are
      granted; and,

	 	 	 
	 	(b) 	
      a consolidation or subdivision of the Company’s share
      capital or an amalgamation or merger;

all to the same effect as if the provisions of the Plan were
set out in this Agreement and to all of which the Optionee assents.

2.12 By accepting the Options, the Optionee represents and
agrees that none of the Optioned Shares purchased upon exercise of the Options
will be distributed in violation of applicable federal and state laws and
regulations. The Optionee further represents and agrees to provide the Company
with any other document reasonably requested by the Company or the Company’s
Counsel.

3. DOCUMENTS REQUIRED FROM OPTIONEE

3.1 The Optionee must complete, sign and return to the
Company:

	 	(a) 	
      an executed copy of this Agreement; and

	 	 	 
	 	(b) 	
      one of two questionnaires in the forms attached hereto as
      Schedule “B” and Schedule “C”, whichever applies.

3.2 The Optionee shall complete, sign and return to the Company
as soon as possible, on request by the Company, any documents, questionnaires,
notices and undertakings as may be required by regulatory authorities, and
applicable law.

4. SUBJECT TO STOCK OPTION PLAN

The terms of the Options will be subject to the Plan, as may
from time to time be amended, and any inconsistencies between this Agreement and
the Plan, as the same may be from time to time amended, shall be governed by the
provisions of the Plan. A copy of the Plan will be delivered to the Optionee,
and will be available for inspection at the principal offices of the
Company.

5. ACKNOWLEDGEMENTS OF THE OPTIONEE

5.1 The Optionee acknowledges and agrees that:

	 	(a) 	
      the Securities have not been registered under the 1933
      Act or under any state securities or “blue sky” laws of any state of the
      United States, and are being offered only in a transaction not involving
      any public offering within the meaning of the 1933 Act, and, unless
      so registered, may not be offered or sold in the United States or to U.S.
      Persons, except pursuant to an effective registration statement under the
      1933 Act, or pursuant to an exemption from, or in a transaction not
      subject to, the registration requirements of the 1933 Act, and in each
  case only in accordance with applicable state securities laws;

4

	 	(b) 	
      the Company will refuse to register any transfer of the
      Securities not made in accordance with the provisions of Regulation S,
      pursuant to an effective registration statement under the 1933 Act or
      pursuant to an available exemption from, or in a transaction not subject
      to, the registration requirements of the 1933 Act;

	 	 	 
	 	(c) 	
      the decision to execute this Agreement and acquire the
      Securities hereunder has not been based upon any oral or written
      representation as to fact or otherwise made by or on behalf of the Company
      and such decision is based solely upon a review of publicly available
      information regarding the Company that is available on the website of the
      United States Securities and Exchange Commission (the “SEC”) at
      www.sec.gov (the “Company Information”);

	 	 	 
	 	(d) 	
      there are risks associated with an investment in the
      Securities;

	 	 	 
	 	(e) 	
      the Optionee and the Optionee’s advisor(s) (if
      applicable) have had a reasonable opportunity to ask questions of and
      receive answers from the Company in connection with the distribution of
      the Securities hereunder, and to obtain additional information, to the
      extent possessed or obtainable without unreasonable effort or expense,
      necessary to verify the accuracy of the information about the
    Company;

	 	 	 
	 	(f) 	
      the books and records of the Company were available upon
      reasonable notice for inspection, subject to certain confidentiality
      restrictions, by the Optionee during reasonable business hours at its
      principal place of business, and all documents, records and books in
      connection with the distribution of the Securities hereunder have been
      made available for inspection by the Optionee, the Optionee’s attorney
      and/or advisor(s) (if applicable);

	 	 	 
	 	(g) 	
      the Company and others are entitled to rely upon the
      truth and accuracy of the acknowledgements, representations, warranties,
      statements, answers, covenants and agreements contained in this Agreement
      and agrees that if any of such acknowledgements, representations,
      warranties, statements, answers, covenants, and agreements are no longer
      accurate or have been breached, the Optionee shall promptly notify the
      Company, and the Optionee will hold harmless the Company from any loss or
      damage it may suffer as a result of the Optionee’s failure to correctly
      complete this Agreement;

	 	 	 
	 	(h) 	
      the Optionee has been advised to consult its own legal,
      tax and other advisors with respect to the merits and risks regarding the
      exercise of the Options and the issuance of the Optioned Shares and with
      respect to applicable resale restrictions and it is solely responsible
      (and the Company is in not any way responsible) for compliance with
      applicable resale restrictions;

	 	 	 
	 	(i) 	
      the Optionee will indemnify and hold harmless the Company
      and, where applicable, its directors, officers, employees, agents,
      advisors and shareholders, from and against any and all loss, liability,
      claim, damage and expense whatsoever (including, but not limited to, any
      and all fees, costs and expenses whatsoever reasonably incurred in
      investigating, preparing or defending against any claim, lawsuit,
      administrative proceeding or investigation whether commenced or
      threatened) arising out of or based upon any representation or warranty of
      the Optionee contained herein or in any document furnished by the Optionee
      to the Company in connection herewith being untrue in any material respect
      or any breach or failure by the Optionee to comply with any covenant or
      agreement made by the Optionee to the Company in connection
    therewith;

	 	 	 
	 	(j) 	
      the Securities are not listed on any stock exchange or
      automated dealer quotation system and no representation has been made to
      the Optionee that any of the Securities will become listed on any stock
      exchange or automated dealer quotation system, except that currently
      certain market makers make market in the shares of the Company’s common
      stock on the OTC Bulletin Board;

	 	 	 
	 	(k) 	
      neither the SEC nor any other securities commission or
      similar regulatory authority has reviewed or passed on the merits of the
      Securities;

5

	 	(l) 	
      no documents in connection with this Agreement have been
      reviewed by the SEC or any state securities administrators;

	 	 	 
	 	(m) 	
      there is no government or other insurance covering any of
      the Securities; and

	 	 	 
	 	(n) 	
      this Agreement is not enforceable by the Optionee unless
      it has been accepted by the Company.

6. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE
OPTIONEE

The Optionee hereby represents and warrants to and covenants
with the Company (which representations, warranties and covenants shall survive
the closing) that:

	 	(a) 	
      the Optionee is a director, officer, employee or
      consultant of the Company or subsidiary of the Company;

	 	 	 	 
	 	(b) 	
      if the Optionee is an employee or consultant of the
      Company or subsidiary of the Company, the Optionee is a bona fide employee
      or consultant of the Company or subsidiary of the Company;

	 	 	 	 
	 	(c) 	
      the Optionee is a U.S. Person;

	 	 	 	 
	 	(d) 	
      the Optionee has received and carefully read this
      Agreement and the Company Information;

	 	 	 	 
	 	(e) 	
      the Optionee has received a brief description of the
      Securities and the use of proceeds from the distribution of the
      Securities;

	 	 	 	 
	 	(f) 	
      the Optionee has duly executed and delivered this
      Agreement and it constitutes a valid and binding agreement of the Optionee
      enforceable against the Optionee in accordance with its terms;

	 	 	 	 
	 	(g) 	
      the Optionee has concurrently executed and delivered the
      questionnaire in the form attached as Schedule “B” or Schedule “C” and the
      representations and warranties contained in such questionnaire are true
      and correct;

	 	 	 	 
	 	(h) 	
      the Optionee has the legal capacity and competence to
      enter into and execute this Agreement and to take all actions required
      pursuant hereto and, if the Optionee is a corporation, it is duly
      incorporated and validly subsisting under the laws of its jurisdiction of
      incorporation and all necessary approvals by its directors, shareholders
      and others have been obtained to authorize execution and performance of
      this Agreement on behalf of the Optionee;

	 	 	 	 
	 	(i) 	
      the Optionee:

	 	 	 	 
	 		(i) 	
      has adequate net worth and means of providing for its
      current financial needs and possible personal contingencies,

	 	 	 	 
	 		(ii) 	
      has no need for liquidity in this investment,
  and

	 	 	 	 
	 		(iii) 	
      is able to bear the economic risks of an investment in
      the Securities for an indefinite period of time, and can afford the
      complete loss of such investment;

	 	(j) 	
      the Optionee has the requisite knowledge and experience
      in financial and business matters as to be capable of evaluating the
      merits and risks of the investment in the Securities and the Company, and
      the Optionee is providing evidence of such knowledge and experience in
      these matters through the information requested in this
  Agreement;

	 	 	 
	 	(k) 	
      the Optionee is aware that an investment in the Company
      is speculative and involves certain risks, including the possible loss of
      the investment, and the Optionee has carefully read and considered the
      matters set forth under the caption “Risk Factors” appearing in the
      Company’s various disclosure documents, filed with the
  SEC;

6

	 	(l) 	
      the entering into of this Agreement and the transactions
      contemplated hereby do not result in the violation of any of the terms and
      provisions of any law applicable to, or, if applicable, the constating
      documents of, the Optionee, or of any agreement, written or oral, to which
      the Optionee may be a party or by which the Optionee is or may be
      bound;

	 	 	 	 
	 	(m) 	
      the Optionee is purchasing the Securities for its own
      account for investment purposes only and not for the account of any other
      person and not for distribution, assignment or resale to others, and no
      other person has a direct or indirect beneficial interest is such
      Securities, and the Optionee has not subdivided his interest in the
      Securities with any other person;

	 	 	 	 
	 	(n) 	
      the Optionee is not an underwriter of, or dealer in, the
      shares of the Company’s common stock, nor is the Optionee participating,
      pursuant to a contractual agreement or otherwise, in the distribution of
      the Securities;

	 	 	 	 
	 	(o) 	
      the Optionee understands and agrees that the Company and
      others will rely upon the truth and accuracy of the acknowledgements,
      representations, statements, answers and agreements contained in this
      Agreement, and agrees that if any of such acknowledgements,
      representations, statements, answers and agreements are no longer accurate
      or have been breached, the Optionee shall promptly notify the
    Company;

	 	 	 	 
	 	(p) 	
      the Optionee has made an independent examination and
      investigation of an investment in the Securities and the Company and has
      depended on the advice of its legal and financial advisors and agrees that
      the Company will not be responsible in anyway whatsoever for the
      Optionee’s decision to acquire the Securities;

	 	 	 	 
	 	(q) 	
      if the Optionee is acquiring the Securities as a
      fiduciary or agent for one or more investor accounts, the Optionee has
      sole investment discretion with respect to each such account, and the
      Optionee has full power to make the foregoing acknowledgements,
      representations and agreements on behalf of such account;

	 	 	 	 
	 	(r) 	
      the Optionee is not aware of any advertisement of any of
      the Securities and is not acquiring the Securities as a result of any form
      of general solicitation or general advertising including advertisements,
      articles, notices or other communications published in any newspaper,
      magazine or similar media or broadcast over radio or television, or any
      seminar or meeting whose attendees have been invited by general
      solicitation or general advertising; and,

	 	 	 	 
	 	(s) 	
      no person has made to the Optionee any written or oral
      representations:

	 	 	 	 
	 		(i) 	
      that any person will resell or repurchase any of the
      Securities,

	 	 	 	 
	 		(ii) 	
      that any person will refund the purchase price of any of
      the Securities,

	 	 	 	 
	 		(iii) 	
      as to the future price or value of any of the Securities,
      or

	 	 	 	 
	 		(iv) 	
      that any of the Securities will be listed and posted for
      trading on any stock exchange or automated dealer quotation system or that
      application has been made to list and post any of the Securities of the
      Company on any stock exchange or automated dealer quotation system, except
      that currently certain market makers make market in the shares of the
      Company’s common stock on the OTC Bulletin Board.

7. ACKNOWLEDGEMENT AND WAIVER

The Optionee has acknowledged that the decision to purchase the
Securities was solely made on the basis of publicly available information
contained in the Company Information. The Optionee hereby waives, to the fullest
extent permitted by law, any rights of withdrawal, rescission or compensation
for damages to which the Optionee might be entitled in connection with the
distribution of any of the Securities.

7

8. PROFESSIONAL ADVICE

The acceptance of the Options and the sale of Common Stock
issued pursuant to the exercise of Options may have consequences under federal
and state tax and securities laws which may vary depending upon the individual
circumstances of the Optionee. Accordingly, the Optionee acknowledges that he or
she has been advised to consult his or her personal legal and tax advisor in
connection with this Agreement and his or her dealings with respect to Options.
Without limiting other matters to be considered with the assistance of the
Optionee’s professional advisors, the Optionee should consider: (a) whether upon
the exercise of Options, the Optionee will file an election with the Internal
Revenue Service pursuant to Section 83(b) of the Code and the implications of
alternative minimum tax pursuant to the Code; (b) the merits and risks of an
investment in the underlying Optioned Shares; and (c) any resale restrictions
that might apply under applicable securities laws.

9. LEGENDING OF SUBJECT SECURITIES

9.1 The Optionee hereby acknowledges that that upon the
issuance thereof, and until such time as the same is no longer required under
the applicable securities laws and regulations, the certificates representing
any of the Securities will bear a legend in substantially the following
form:

  
    
      THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES
        AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE AND HAVE BEEN
        ISSUED IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT
        OF 1933, AS AMENDED (THE “1933 ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR
        SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
        ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT
        TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
        APPLICABLE STATE SECURITIES LAWS.

    

  

9.2 The Optionee hereby acknowledges and agrees to the Company
making a notation on its records or giving instructions to the registrar and
transfer agent of the Company in order to implement the restrictions on transfer
set forth and described in this Agreement.

10. RESALE RESTRICTIONS

Resale restrictions may apply. Any resale of the Optioned
Shares received upon exercising any Options will be subject to resale
restrictions contained in the securities legislation applicable to the Optionee.
The Optionee acknowledges and agrees that the Optionee is solely responsible
(and the Company is not in any way responsible) for compliance with applicable
resale restrictions.

11. NO EMPLOYMENT RELATIONSHIP

The grant of an Option shall in no way constitute any form of
agreement or understanding binding on the Company or any related company,
express or implied, that the Company or any related company will employ or
contract with an Optionee, for any length of time, nor shall it interfere in any
way with the Company’s or, where applicable, a related company’s right to
terminate Optionee’s employment at any time, which right is hereby reserved.

12. GOVERNING LAW

This Agreement is governed by the laws of the State of
Nevada.

13. COSTS

The Optionee acknowledges and agrees that all costs and
expenses incurred by the Optionee (including any fees and disbursements of any
special counsel retained by the Optionee) relating to the acquisition of the
Securities shall be borne by the Optionee.

8

14. SURVIVAL

This Agreement, including without limitation the
representations, warranties and covenants contained herein, shall survive and
continue in full force and effect and be binding upon the parties hereto
notwithstanding the completion of the purchase of the shares underlying the
Options by the Optionee pursuant hereto.

15. ASSIGNMENT

This Agreement is not transferable or assignable.

16. CURRENCY

Unless explicitly stated otherwise, all funds in this Agreement
are stated in United States dollars.

17. SEVERABILITY

The invalidity or unenforceability of any particular provision
of this Agreement shall not affect or limit the validity or enforceability of
the remaining provisions of this Agreement.

18. COUNTERPARTS AND ELECTRONIC MEANS

This Agreement may be executed in several counterparts, each of
which will be deemed to be an original and all of which will together constitute
one and the same instrument. Delivery of an executed copy of this Agreement by
electronic facsimile transmission or other means of electronic communication
capable of producing a printed copy will be deemed to be execution and delivery
of this Agreement as of the date first above written.

19. ENTIRE AGREEMENT

This Agreement is the only agreement between the Optionee and
the Company with respect to the Options, and this Agreement and the Plan, once
approved, supersede all prior and contemporaneous oral and written statements
and representations and contain the entire agreement between the parties with
respect to the Options.

IN WITNESS WHEREOF the parties hereto have duly executed
this Agreement as of the date first above written.

SONORA RESOURCES CORP.

	Per: 		 
	 	Authorized Signatory 	 

	WITNESSED BY: 	) 	 
	  	) 	 
	  	) 	 
	  	) 	 
	  	) 	 
	Name 	) 	 
	  	) 	<>[NAME
      OF OPTIONEE] 
	  	) 	 
	Address 	) 	 
	  	) 	 
	  	) 	 
	  	) 	 
	  	) 	 
	Occupation 	) 	 

SCHEDULE “A”

VESTING SCHEDULE

Incentive Stock Options

	Date 	Number of Options to Vest
	 	 
	 	 
	 	 
	 	 

Non Qualified Stock Options

	Date 	Number of Options to Vest
	 	 
	 	 
	 	 
	 	 

SCHEDULE “B”

ACCREDITED INVESTOR QUESTIONNAIRE

All capitalized terms herein, unless otherwise defined, have
the meanings ascribed thereto in the Stock Option Agreement.

The Optionee covenants, represents and warrants to the Company
that he or she satisfies one or more of the categories of “Accredited
Investors”, as defined by Regulation D promulgated under the Securities Act of
1933 (the “Securities Act”), as indicated below: (Please initial in the space
provide those categories, if any, of an “Accredited Investor” which the Optionee
satisfies)

		________ Category 1 	
      An organization described in Section 501(c)(3) of the
      United States Internal Revenue Code, a corporation, a Massachusetts or
      similar business trust or partnership, not formed for the specific purpose
      of acquiring the Securities, with total assets in excess of US $5,000,000;
      

	 	  	
       

		________ Category 2 	
      A natural person whose individual net worth, or joint net
      worth with that person’s spouse, on the date of grant or exercise exceeds
      US $1,000,000 excluding the value of the primary residence of such
      person(s) and the related amount of indebtedness secured by the primary
      residence up to its fair market value. 

	 	  	
       

		________ Category 3 	
      A natural person who had an individual income in excess
      of US $200,000 in each of the two most recent years or joint income with
      that person’s spouse in excess of US $300,000 in each of those years and
      has a reasonable expectation of reaching the same income level in the
      current year; 

	 	  	
       

		________ Category 4 	
      A “bank” as defined under Section (3)(a)(2) of the
      Securities Act or savings and loan association or other institution as
      defined in Section 3(a)(5)(A) of the Securities Act acting in its
      individual or fiduciary capacity; a broker dealer registered pursuant to
      Section 15 of the Securities Exchange Act of 1934 (United States);
      an insurance company as defined in Section 2(13) of the Securities Act; an
      investment company registered under the Investment Company Act of
      1940 (United States) or a business development company as defined in
      Section 2(a)(48) of such Act; a Small Business Investment Company licensed
      by the U.S. Small Business Administration under Section 301(c) or (d) of
      the Small Business Investment Act of 1958 (United States); a
      plan with total assets in excess of US $5,000,000 established and
      maintained by a state, a political subdivision thereof, or an agency or
      instrumentality of a state or a political subdivision thereof, for the
      benefit of its employees; an employee benefit plan within the meaning of
      the Employee Retirement Income Security Act of 1974 (United States)
      whose investment decisions are made by a plan fiduciary, as defined in
      Section 3(21) of such Act, which is either a bank, savings and loan
      association, insurance company or registered investment adviser, or if the
      employee benefit plan has total assets in excess of US $5,000,000, or, if
      a self- directed plan, whose investment decisions are made solely by
      persons that are accredited investors; 

	 	  	
       

		________ Category 5 	
      A private business development company as defined in
      Section 202(a)(22) of the Investment Advisers Act of 1940 (United
      States); 

	 	  	
       

	 	________ Category 6 	
      A director or executive officer of the Company;
  

- 2 -

		________ Category 7 	
      A trust with total assets in excess of US $5,000,000, not
      formed for the specific purpose of acquiring the Securities, whose
      purchase is directed by a sophisticated person as described in Rule
      506(b)(2)(ii) under the Securities Act; 

	 	  	
       

		________ Category 8 	
      An entity in which all of the equity owners satisfy the
      requirements of one or more of the foregoing categories;

Note that the Optionee claiming to satisfy one of the above
categories of Accredited Investor may be required to supply the Company with a
balance sheet, prior years’ federal income tax returns or other appropriate
documentation to verify and substantiate the Optionee’s status as an Accredited
Investor.

If the Optionee is an entity which initialled the last category
in reliance upon the Accredited Investor categories above, state the name,
address, total personal income from all sources for the previous calendar year,
and the net worth (exclusive of home, home furnishings and personal automobiles)
for each equity owner of the said entity: 

______________________________________________________________________________

All information contained in this Questionnaire will be treated
as confidential. However, by signing and returning this Questionnaire, the
Optionee agrees that, if necessary, this Questionnaire may be presented to such
parties as the Company deems appropriate to establish the availability, under
the Securities Act or applicable state securities law, of exemption from
registration in connection with the issuance of the Securities hereunder.

The Optionee hereby certifies that the information contained in
this Questionnaire is complete and accurate and the Optionee will notify the
Company promptly of any change in any such information.

IN WITNESS WHEREOF, the undersigned has executed this
Questionnaire as of the _______day of __________________, 20__.

	 	X
  
	 	Signature 
	 	 
	 	Print or Type Name 
	 	 
	 	Social Security/Tax I.D. No.

SCHEDULE “C”

PROSPECTIVE INVESTOR SUITABILITY QUESTIONNAIRE

All capitalized terms herein, unless otherwise defined, have
the meanings ascribed thereto in the Stock Option Agreement.

The purpose of this Questionnaire is to assure the Company that
the Optionee will meet the standards imposed by the Securities Act of 1933 (the
“Securities Act”) and the appropriate exemptions of applicable state securities
laws. The Company will rely on the information contained in this Questionnaire
for the purposes of such determination. The Option and the Optioned Shares
(together, the “Securities”) will not be registered under the Securities Act and
has been issued in reliance upon the exemption from registration afforded by
Section 3(b) and/or Section 4(2) of the Securities Act and/or Regulation D
promulgated thereunder. This Questionnaire is not an offer of any securities of
the Company in any state other than those specifically authorized by the
Company.

Please attach additional pages if necessary to answer any
question fully.

REPRESENTATIONS OF OPTIONEE

This item is presented in alternative form. Please initial in
the space provided the applicable alternative.

	_____ 	
      ALTERNATIVE ONE: The Optionee covenants, represents and
      warrants to the Company that he or she has such knowledge and experience
      in financial and business matters that he or she is capable of evaluating
      the relative merits and risks of an investment in the Securities and
      Company and is not utilizing a purchaser representative in connection with
      evaluating such merits and risks. The Optionee is providing evidence of
      its knowledge and experience in these matters through the information
      requested below in this Questionnaire. 

	 	
       

	_____ 	
      ALTERNATIVE TWO: The Optionee covenants, represents and
      warrants to the Company that he or she has chosen to use the services of a
      purchaser representative acceptable to the Optionee in connection with the
      Optionee’s acquisition of the Securities. The Optionee hereby acknowledges
      that the person named below is his or her purchaser representative who
      will assist and advise the Optionee in evaluating the merits and risks of
      an investment in the Securities and the Company and affirms that such
      purchaser representative has previously disclosed in writing any material
      relationship that exists between the purchaser representative (or its
      affiliates) and the Company (or its affiliates) that is mutually
      understood to be contemplated, or that has existed at any time during the
      previous two years, and any compensation received or to be received as a
      result of such relationship. 

	 	
       

	 	
       

	 	
      (name of Purchaser Representative) 

	 	
       

	 	
       

	 	
      (address of Purchaser Representative) 

	 	
       

		
      If the Optionee utilizes a purchaser representative, this
      Questionnaire must be accompanied by a completed and signed purchaser
      representative Questionnaire, a copy of which can be obtained from the
      Company upon request. 

- 2 -

FOR INDIVIDUAL INVESTORS

	1. 	Name: 	         
	 	 	 
	2. 	Residential Address & Telephone Number: 	 	     
	  	  	  	  
	  	  	  	  
	 	 	 
	3. 	Length of Residence in State of
      Residence: 	     
	 	 	 	 
	4. 	U.S. Citizen: 	_____Yes      _____No  
	 	 	 
	5. 	Social Security Number: 	     
	 	 	 
	6. 	Business Address & Telephone Number: 	     
	  	  	  	  
	  	  	  	  
	 	 	 
	7. 	Preferred Mailing Address: 	_____Residence     _____ Business 
	 	 	 
	8. 	Date of Birth: 	     
	 	 	 
	9. 	Employer and Position: 	     
	 	 	 
	10. 	Name of Business: 	     
	 	 
	11. 	Business or Professional Education
      and Degrees: 
	 	 	 	 
	  	School 	Degree 	Year
      Received 
	 	 	 	 
	  	  	  	  
	  	  	  	  
	12. 	Prior Employment (last 5 years): 	  
	 	 	 	 
	  	Employer 	Nature of Duties 	Dates of Employment 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

- 3 -

	
13.		
Relationship to the Company, if any:	_____	 		 	
	 	 	 
	
14.		
Is the Optionee an officer of director of a publicly-held company?		 	
	 	 
	 		     	_____ Yes     	_____ No 
	 	 	 	 	 
	 		
If yes, specify company:		 		 		 	
	 	 
	
15.		
Does the Optionee beneficially own 10% or more of the voting securities of a publicly-held company?	
	 	 
	 		     	_____ Yes     	_____ No 
	 	 	 	 	 
	 		
If yes, specify company:		 		 		 	
	 	 
	
16.		 
Within the last 5 years, has the Optionee personally invested in investments sold by means of private
placements in reliance on exemptions from registration under the Securities Act and state securities laws?	

	 		 
	 		     	_____ Yes     	_____ No 
	 	 
	
17.		 
Prior investments by the Optionee which were purchased in reliance on exemptions from registration under
the Securities Act and State securities laws (initial the highest number applicable):
	
	 		 	 	
	 		
Amount (Cumulative)		
	 		
Real Estate:		
Up to		$50,000 to		
Over	
	 		
None:	_____	
$50,000	_____	
 $250,000	_____	
$250,000	_____
	 		
Securities:		
Up to		
 $50,000 to		
Over	
	 		
None:	_____	
$50,000	_____	
 $250,000	_____	
$250,000	_____
	 		
Other:		
Up to		
 $50,000 to		
Over	
	 		
None:	_____	
$50,000	_____	
 $250,000	_____	
$250,000	_____
	 	 	 
	
18.		
Does the Optionee consider itself to be an experienced and sophisticated investor?		 	
	 	 	 
	 		     	_____ Yes     	_____ No 	 	
	 	 	 
	 		
If so, please provide evidence of investment sophistication and/or experience:		 	
	 	 	 	 	 
	 		 		 		 		 	
	 		 		 		 		 	
	
19.					 Does the Optionee, or any person authorized to execute this Questionnaire, consider itself to have such knowledge of the Company and its business and such experience in financial and business matters to enable it to evaluate the merits and risks of an investment in the Securities and the Company, should the Optionee be given an opportunity to so invest? 

	 	 
	 		
      	_____ Yes     	_____ No 	

- 4 -

	
20.		
      If the Optionee is an individual, please indicate the Optionee’s and his/her spouse’s combined gross income
    during the preceding two years (initial the highest number applicable): 

	 		 
	 		 		 	
 2009		 	
  2008	
	 		 		_____	
 Less than $75,000		_____	
  Less than $75,000	
	 		 		_____	
 $75,001 to $100,000		_____	
 $75,001 to $100,000	
	 		 		_____	
 $100,001 to $200,000		_____	
 $100,001 to $200,000	
	 		 		_____	
 $200,001 to $300,000		_____	
 $200,001 to $300,000	
	 		 		_____	
 $Over $300,000		_____	
 $Over $300,000	
	 	 
	
21.				
      If the Optionee is an individual, please indicate the Optionee’s and his/her spouse’s combined estimated net worth (exclusive of home, home furnishings and personal automobiles) (initial the highest number applicable): 	

	 	 	 	 	 	 
	 		 		_____	
 Less than $100,000		_____	
 $300,0001 to $500,000	
	 		 		_____	
 $100,001 to $200,000		_____	
 $500,001 to $1,000,000	
	 		 		_____	
 $200,001 to $300,000		_____	
  Over $1,000,000	
	 	 	 	 
	
22.		
Regardless of the amount of the proposed investment:		 	 	
	 	 
	 			
      (a)
        Will the Optionee’s proposed investment exceed 10% of its individual net worth, or the
    Optionee’s joint net worth with its spouse as determined in paragraph 22 above? 

	 	 
	 		     	_____ Yes     	_____ No 
	 	 
	 		 (b) Will the Optionee be able to bear the economic risk of its investment in this transaction? 
	 	 
	 		     	_____ Yes     	_____ No 
	 	 	 	 
	
23.		
Please provide answers to the following questions.		 	 	
	 	 
	 		 (a) State total assets of the Optionee, including cash, stocks and bonds, automobiles, real estate, and
any other assets:	
	 		 	 	 	
	 		
$		
	 	 
	 		 (b) State total liabilities of the Optionee including real estate indebtedness, accounts payable, taxes
payable and any other liabilities:	
	 		 	 	 	
	 		
$		
	 	 
	 		 (c) State annual income of the Optionee including salary, securities income, rental income and any
other income:	
	 		 	 	 	
	 		
$		
	 	 
	 		 (d) State annual expenses of the Optionee, excluding ordinary living expenses, including real estate
payments, rent, property taxes and other expenses: 

- 5 -

	  	$     
	 	 
	 	(e) Does the Optionee expect the amount
      of its assets, liabilities, income and expenses, as stated above, to be subject to significant change in the
      future: 
	 
	  	     	_____ Yes     	_____ No 
	 	 	 
	  	If yes, explain: 	  
	 	 	 
	 	 	 

All information contained in this Questionnaire will be treated
as confidential. However, by signing and returning this Questionnaire, the
Optionee agrees that, if necessary, this Questionnaire may be presented to such
parties as the Company deems appropriate to establish the availability, under
the Securities Act or applicable state securities law, of exemption from
registration in connection with the issuance of the Securities hereunder.

The Optionee hereby certifies that the information contained in
this Questionnaire is complete and accurate and the Optionee will notify the
Company promptly of any change in any such information. 

IN WITNESS WHEREOF, the undersigned has executed this
Questionnaire as of the ____ day of _____________________, 20__.

	 	X
  
	 	Signature 
	 	 
	 	Print or Type Name 
	 	 
	 	Social Security/Tax I.D. No.

SCHEDULE “D”

NOTICE OF EXERCISE

	
TO:
		
Sonora Resources Corp.	
	 

		
3120 S. Durango Drive, Suite 305	
	 

		
Las Vegas, Nevada 89117-4454	

This Notice of Exercise shall constitute a proper Notice of Exercise pursuant to section 2.8 of the Stock Option Agreement dated <>, <> (the “Agreement”), between Sonora Resources Corp. (the “Company”) and the
undersigned. The undersigned hereby elects to exercise the Optionee’s options to purchase____________________
shares of the common stock of the Company at a price of US$<> per share, for aggregate consideration of
US$
____________, on the terms and conditions set forth in the Agreement. Such aggregate consideration, in the form specified in section 2.8 of the Agreement, accompanies this notice.

The Optionee hereby represents and warrants to the Company that all representations and warranties set out in the Agreement are true as of the date of the exercise of the options under the Agreement.

The Optionee hereby further represents and warrants to the Company that the shares are being purchased only for investment and without intention to sell or distribute such shares.

The Optionee hereby directs the Company to issue, register and deliver the certificates representing the shares as follows:

	Registration Information: 	 	Delivery Instructions: 
	 	 	 
	Name to appear on
      certificates 	 	Name 
	 	 	 
	Address 	 	Address 
	 	 	 
	City, State, and Zip
      Code 	 	 
		 	 
	 	 	Telephone Number 

DATED at _____________________________, the _______day
of______________, _______.

	 	
X	
	 	
Signature	
	 	 
	 	
(Name and, if applicable, Office)	
	 	 
	 	
(Address)	
	 	 
	 	
(City, State, and Zip Code)	
	 	 
	 	
Fax Number or E-mail Address	
	 	 
	 	
Social Security/Tax I.D. No.

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