Document:

Golden Queen Mining Co. Ltd. - Exhibit 10.3 - Filed by newsfilecorp.com

PLEDGE AGREEMENT 

            THIS
PLEDGE AGREEMENT (this “Agreement”) dated as of December 31, 2014 is made
by GOLDEN QUEEN MINING CO. LTD., a British Columbia corporation (the
“Borrower”), and GOLDEN QUEEN MINING HOLDINGS, INC., a California
corporation (“Holdings” and, together with the Borrower, the
“Pledgors” and each a “Pledgor”), in favor of THE LANDON T. CLAY
2009 IRREVOCABLE TRUST DATED MARCH 6, 2009 (“LTC Lender”) and
HARRIS CLAY, an individual (together with LTC Lender, the “Lenders”).

            WHEREAS,
the Borrower has requested that the Lenders make a term loan to the Borrower
pursuant to a Term Loan Agreement of even date herewith (the “Loan
Agreement”); 

           
WHEREAS, Holdings will issue its Guaranty of even date herewith (the
“Guaranty”) guaranteeing the Borrower’s obligations under the Loan
Agreement and certain promissory notes of even date herewith to be issued by the
Borrower pursuant to the Loan Agreement (such notes and Guaranty, together with
this Agreement and the Loan Agreement, the “Loan Documents”); 

           
WHEREAS, the Loan Agreement requires the execution and delivery of the
Consent under the GQ California LLC Agreement (the “GQ California
Consent”); WHEREAS, each Pledgor will receive substantial direct and
indirect benefits from the execution, delivery, and performance of the Loan
Agreement and each is, therefore, willing to enter into this Agreement; 

           
WHEREAS, the willingness of the Lenders to enter into the Loan Agreement
and to make the loan thereunder is subject to the condition, among others, that
the Pledgors execute and deliver this Agreement to the Lenders; and 

           
WHEREAS, on the date hereof the Lenders and Gauss LLC (“Gauss”)
are entering into an Option Agreement (the “Gauss Option Agreement”)
pursuant to with the Lenders grant Gauss the option to purchase the Pledged
Securities (defined below), on the terms and conditions set forth in the Gauss
Option Agreement, in the event of the exercise by the Lenders of remedies
hereunder.

            NOW
THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged by
each party hereto, the Pledgors and the Lenders agree as follows: 

           
1.        DEFINITIONS.

                          1.1       
Unless otherwise defined herein or in the Loan Agreement, terms used herein that
are defined in the UCC shall have the meanings assigned to them in the UCC.
However, if a term is defined in Article 9 of the UCC differently than in
another article of the UCC, the term has the meaning specified in Article 9.

                         
1.2        The following terms have the
following meanings: 

                    
Additional Securities. See Section 4. 

                    
Agreement. See the Preamble. 

                    
Borrower. See the Preamble. 

                    
Company. Golden Queen Mining Company, LLC, a California limited liability
company. 

                    
Company Interests. The Pledged Securities consisting of Equity Interests
in the Company. 

                    
Distributions. See Section 2. 

                    
Equity Interests. Any and all shares, interests, participations or other
equivalents (however designated) of capital stock of a corporation or membership
interests of a limited liability company, any and all equivalent ownership (or
profit) interests in a Person (other than a corporation or limited liability
company), securities convertible into or exchangeable for shares of capital
stock or membership interests of (or other ownership or profit interest in) such
Person, and any and all warrants, rights or options to purchase any of the
foregoing, whether voting or nonvoting, and whether or not such shares,
warrants, options, rights or other interests are authorized or otherwise
existing on any date of determination. 

                    
Event of Default. Has the meaning assigned thereto in the Loan Agreement.

                    
Federal Securities Laws. See Section 7.2. 

                    
GQ California Consent. See the Recitals.

                    
GQ California LLC Agreement. The Amended and Restated Limited Liability
Company Agreement of GQ California dated as of September 15, 2014. 

                    
Guaranty. See the Recitals. 

                    
Loan Agreement. See the Recitals. Loan Documents. See the
Recitals. 

                    
Obligations. Collectively, (i) “Obligations” as defined in the Loan
Agreement, and (ii) all liabilities and obligations of Holdings under the
Guaranty. 

                    
Organizational Documents. The operating agreement, certificate of
formation, certificate of incorporation and/or by-laws or any comparable
formation documents of any entity. 

                    
Pledged Collateral. See Section 2. 

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                          Pledged
Securities. Collectively, with respect to each Pledgor, (i) all of the
Equity Interests described in Exhibit A hereto and issued by the
issuers named therein, together with all claims, rights, privileges, authority
and powers of such Pledgor relating to such Equity Interests in each such issuer
or under any Organizational Document of each such issuer, and the certificates,
instruments and agreements (other than Organizational Documents) representing
such Equity Interests, (ii) all additional Equity Interests of whatever class of
any such issuer described in Exhibit A from time to time acquired
by or issued to such Pledgor in any manner, together with all claims, rights
(but none of the obligations), privileges, authority and powers of such Pledgor
relating to such Equity Interests or under any Organizational Document of any
such issuer, and the certificates, instruments and agreements (other than
Organizational Documents) representing such Equity Interests, from time to time
acquired by such Pledgor in any manner, and (iii) all Equity Interests issued by
any issuer in respect of the Equity Interests referred to in clause (i) or (ii)
upon any consolidation or merger of any such issuer and all Equity Interests of
any successor issuer owned by such Pledgor (unless such Pledgor is the surviving
entity) formed by or resulting from any consolidation or merger in which any
Person listed in Exhibit A hereof is not the surviving entity.

                    
Pledgor. See the Preamble. 

                    
UCC. The Uniform Commercial Code as in effect in The State of New York.

            2.       
PLEDGE AND SECURITY INTEREST GRANT. As collateral security for the
payment and performance in full of the Obligations, each Pledgor hereby pledges
and assigns to the Lenders and hereby grants to the Lenders a continuing lien
and security interest in: (i) all Pledged Securities, (ii) to the extent not
covered by clause (i) of this Section 2, all Additional Securities, (iii)
to the extent not covered by clause (i) of this Section 2, all income,
interest, dividends, and distributions (“Distributions”) accruing with
respect to such Pledged Securities (other than Additional Securities), together
with any books, records, or certificates evidencing the foregoing, and (iv) all
proceeds of the foregoing (all of the foregoing as more fully described on
Exhibit A attached hereto, the “Pledged Collateral”).

            3.       
REGISTRATION, ETC. OF PLEDGED COLLATERAL. All Pledged Collateral
that consists of Equity Interests hereunder may, at any time after the
occurrence and during the continuation of any Event of Default, and at the
option of the Lenders exercised by written notice to the Pledgors, be registered
in the name of the Lenders or their nominee, as pledgee. Except during the
continuance of an Event of Default, the Pledgors shall retain and have the
exclusive right to exercise any rights or options in connection with the Pledged
Collateral, in a manner not in conflict with the terms of this Agreement or any
of the other Loan Documents. At any time after the occurrence or during the
continuance of an Event of Default, the Lenders may, without further notice and
as applicable, exercise all voting and other rights at any meeting of the
equityholders of the issuer of the Pledged Collateral, and exercise any and all
rights of conversion, exchange, subscription or any other rights, privileges or
options pertaining to the Pledged Collateral as if they were the absolute owner
thereof including, without limitation, the right to exchange, at their
discretion, any and all of the Pledged Collateral upon the merger,
consolidation, reorganization, recapitalization or other readjustment of the issuer thereof, all without liability
except to account for property actually received, but the Lenders shall have no
duty to exercise any of the aforesaid rights, privileges or options and shall
not be responsible for any failure to do so or delay in so doing. 

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            4.       
RIGHTS WITH RESPECT TO PLEDGED COLLATERAL.

                          4.1       
If any Pledgor shall, at any time be entitled to receive or shall receive (i)
stock or unit certificates as a dividend, payment, or distribution in connection
with the Pledged Collateral, (ii) any options, warrants, or rights in connection
with the Pledged Collateral, or (iii) any additions to, substitutions or
exchanges for, the Pledged Collateral whether as a result of a stock or unit
split, recapitalization, a change in capital structure of the issuer, or for any
other reason (the foregoing, collectively, the “Additional Securities”),
each Pledgor agrees that the same shall be delivered directly to the Lenders, to
be held by the Lenders subject to the terms hereof, as further security for the
Obligations, and to take all steps necessary to arrange for such delivery. If
any Pledgor receives any Additional Securities directly, it hereby agrees to
hold such Additional Securities in trust for the benefit of the Lenders, and to
turn over such Additional Securities to the Lenders immediately. The Lenders
shall have all of the rights set forth in this Agreement with respect thereto.

                          4.2       
If any Pledgor shall, at any time following the occurrence and during the
continuance of an Event of Default, be entitled to or shall receive any
Distributions, each Pledgor agrees that such Distributions shall, upon demand by
the Lenders, be delivered directly and immediately to the Lenders, to be held or
applied by the Lenders in accordance with the terms hereof.

            5.       
REPRESENTATIONS, WARRANTIES AND COVENANTS. Each Pledgor hereby
represents and warrants to and covenants with the Lenders that: 

                         
5.1        Such Pledgor is the sole legal and
equitable owner of the Pledged Collateral owned by such Pledgor, and holds good
title to the same free and clear of all liens, charges, encumbrances and
security interests or rights of others of every kind and nature whatsoever
(except as set forth in the GQ California LLC Agreement), and shall not assign
any interest in the Pledged Collateral, or any part thereof, or otherwise
pledge, encumber, or grant any option with respect to the Pledged Collateral, or
any part thereof, except in favor of the Lenders. Such Pledgor has good right
and legal authority to create a security interest in the Pledged Collateral
owned by such Pledgor in the manner hereby provided. Except as set forth in the
GQ California LLC Agreement, the Pledged Collateral owned by such Pledgor is not
subject to any restriction on transfer contained in any agreement to which such
Pledgor is a party or by which such Pledgor is bound which would prohibit or
restrict the pledge or assignment of the Pledged Collateral hereunder, except
for the Organizational Documents of such Pledgor or otherwise contemplated in
the GQ California Consent.

                          5.2       
Except for the GQ California Consent, no consent, authorization, approval or
other action by, and no notice to or filing with, any party that has not been
obtained, given or filed on or prior to the date hereof is required of such
Pledgor for the grant by such Pledgor of the security interest granted hereby or
for the execution, delivery or performance of this Agreement by such Pledgor.

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                          5.3       
Such Pledgor shall not consent to any amendment to the Organizational Documents
of any issuer of the Pledged Securities owned by such Pledgor in contravention
of the this Agreement or any of the Loan Documents. Such Pledgor shall not
withdraw as a member or partner of any issuer of the Pledged Securities that is
a limited liability company or partnership, as applicable. Such Pledgor hereby
covenants that it will not sell, convey or otherwise dispose of any of the
Pledged Collateral or create, incur or permit to exist any other pledge, lien,
encumbrance or security interest whatsoever with respect to any of the Pledged
Collateral or the proceeds thereof except in favor of the Lenders. 

                          5.4       
Exhibit A sets forth a complete and accurate list of all Pledged
Securities held by such Pledgor as of the date hereof. 

                          5.5       
All certificates or other instruments representing or evidencing the Pledged
Securities owned by such Pledgor in existence on the date hereof have been
delivered to the Lenders in suitable form for transfer by delivery or
accompanied by duly executed instruments of transfer or assignment in blank and
(assuming continuing possession by the Lenders of all such Pledged Securities)
the Lenders have a perfected first priority security interest therein. Such
Pledgor hereby agrees that all certificates or instruments representing or
evidencing the Pledged Securities acquired by such Pledgor after the date hereof
shall immediately upon receipt thereof by such Pledgor be held by or on behalf
of and delivered to the Lenders in suitable form for transfer by delivery or
accompanied by duly executed instruments of transfer or assignment in blank, all
in form and substance satisfactory to the Lenders. 

                          5.6       
Such Pledgor shall at all times do, make, execute and deliver all such
additional and further reasonable acts and instruments as the Lenders may at any
time request to carry into effect the provisions and intent of this Agreement.

            6.       
DEFAULT. 

                          6.1       
Upon the occurrence of an Event of Default and during the continuance thereof,
the Lenders are hereby authorized and empowered in their discretion to exercise
all rights and powers in respect of the Pledged Securities as a member, partner,
shareholder, or other equityholder of the issuer of the Pledged Securities, and
each Pledgor hereby consents to the admission of each Lender or any designee
thereof as a member, partner, shareholder or other equityholder of the issuer of
the Pledged Securities and the exercise by each Lender of the voting rights of
such Pledgor with respect to the Pledged Securities owned by such Pledgor, in
each case if such Lender so elects, and to any sale of the Pledged Collateral by
the Lenders in accordance with the UCC, other applicable law and this Agreement.

                          6.2       
(a)        Upon the occurrence of an Event of
Default and during the continuation thereof, without limiting the generality of
this Section and without notice, the Lenders may, in their sole discretion,
exercise in respect of the Pledged Securities, in addition to all other rights
and remedies provided for herein or otherwise available to them, all the rights
and remedies of a secured party on default under the UCC, other applicable
Uniform Commercial Code, or other applicable laws as in effect in any relevant
jurisdiction (whether or not the Uniform Commercial Code applies to the affected
Pledged Securities), and the Lenders may also in their sole discretion sell the Pledged Securities
or any part thereof in one or more parcels at public or private sale, at any
exchange or broker’s board or at any of the Seller’s offices or elsewhere, for
cash, on credit or for future delivery, at such time or times and at such price
or prices and upon such other terms as the Lenders may deem commercially
reasonable, irrespective of the impact of any such sales on the market price of
the Pledged Securities. The Lenders may be the purchaser of any or all of the
Pledged Securities at any such sale, and the Lenders shall be entitled, for the
purpose of bidding and making settlement or payment of the purchase price for
all or any portion of the Pledged Securities sold at any such sale, to credit
bid all or any portion of the Obligations as a credit on account of the purchase
price for any Pledged Securities payable by the Lenders at such sale. Each
purchaser at any such sale shall hold Pledged Securities sold free from any
claim or right of the Pledgors, and the Pledgors hereby waive (to the extent
permitted by applicable law) all rights of redemption, stay and/or appraisal
which it now has or may at any time in the future have under any rule of law or
statute now existing or hereafter enacted. The Lenders shall not be obligated to
make any sale of Pledged Securities regardless of notice of sale having been
given. The Lenders may adjourn any public or private sale from time to time by
announcement at the time and place fixed therefor, and such sale may, without
further notice, be made at the time and place to which it was so adjourned.

- 5 - 

                          (b)       
Pledgors and Lenders acknowledge and agree that for purposes of determining
whether a disposition of Pledged Securities which consists solely of Company
Interests has been made in a commercially reasonable manner, the fair market
value of the Company Interests may be determined by an independent appraisal of
the value of the Company. Pledgors and Lenders further agree that Lenders shall
be entitled to commission a valuation of the Company from Mine Development
Associates, or another independent mine valuation company selected by the
Lenders, and may rely upon such valuation as a basis for determining the value
of the Company Interests, and that the cost of such valuation is a commercially
reasonable expense of the disposition and shall be paid by Pledgors and
constitute an Obligation under the Loan Agreement secured by the lien and
security interest created hereby. In the case of all sales of Pledged Collateral
or any part thereof by the Lenders in accordance with this Agreement and
applicable law, including the UCC, during the continuance of an Event of
Default, the Pledgors shall pay all reasonable out of pocket costs and expenses
of every kind of the Lenders in connection therewith (including, without
limitation, reasonable attorneys’ fees and disbursements, court costs,
litigation and other expenses), and after deducting such costs and expenses from
the proceeds of sale, the Lenders shall apply any remainder to the payment of
the other Obligations and the Borrower shall remain liable for any deficiency.
The Pledgors shall be jointly and severally liable for the payment of any such
costs and expenses of the Lenders. 

                          6.3       
Because of present or future circumstances, a question may arise under the
Securities Act of 1933, as amended, as now or hereafter in effect, or any
similar statute hereafter enacted analogous in purpose or effect (such Act and
any such similar statute as from time to time in effect being hereinafter called
the “Federal Securities Laws”) with respect to any disposition of the
Pledged Collateral pledged hereunder. Each Pledgor understands that compliance
with the Federal Securities Laws may very strictly limit the course of conduct
of the Lenders if the Lenders were to attempt to dispose of all or any part of
the Pledged Collateral and may also limit the extent to which or the manner in
which any subsequent transferee of the Pledged Collateral or any part thereof may dispose of the same.
There may be other legal restrictions or limitations affecting the Lenders in
any attempts to dispose of all or any part of the Pledged Collateral under
applicable blue sky or other state securities laws or similar laws analogous in
purpose or effect. To the extent permitted by applicable law, each Pledgor
covenants and agrees that the Lenders shall not incur any liability as a result
of the sale of the Pledged Collateral or any part thereof at any private sale
that is commercially reasonable and otherwise in accordance with this Agreement
and applicable law. To the extent permitted by applicable law, each Pledgor
hereby waives any claims against the Lenders arising by reason of the fact that
the price at which the Pledged Collateral or any part thereof may have been sold
at such a private sale was less than the price which might have been obtained at
a public sale or was less than the aggregate amount of the Obligations, even if
the Lenders accept the first offer received and do not offer the Pledged
Collateral, as the case may be, to more than one possible purchaser. 

- 6 - 

                          6.4       
NOTWITHSTANDING ANYTHING IN THE FOREGOING PROVISIONS OF THIS SECTION 6 TO
THE CONTRARY, DURING THE CONTINUANCE OF AN EVENT OF DEFAULT, AT THE SOLE
DISCRETION OF THE LENDERS, ANY AMOUNTS DUE TO THE PLEDGORS WITH RESPECT TO THE
PLEDGED COLLATERAL SHALL BE PAYABLE IMMEDIATELY TO THE LENDERS AS IF THE LENDERS
WERE IN THE PLEDGORS’ POSITION UNDER THE APPLICABLE ORGANIZATIONAL DOCUMENTS.
EACH PLEDGOR SHALL TAKE ALL STEPS TO MAKE THE PLEDGED COLLATERAL AVAILABLE TO
THE LENDERS AS REQUIRED BY THIS AGREEMENT. EACH PLEDGOR SHALL ACT ON BEHALF OF
THE LENDERS WITH RESPECT TO ANY OTHER NECESSARY AGREEMENTS OR DOCUMENTS
CONSENTING TO SUCH ARRANGEMENT. 

            7.       
OBLIGATIONS OF THE LENDERS. Beyond the exercise of reasonable care
to assure the safe custody of the Pledged Collateral while any of it is held by
the Lenders hereunder, the Lenders shall have no duty or liability to anyone to
collect any sums due or other property due in respect thereof or to protect or
preserve any rights of any such party pertaining thereto, and shall be relieved
of all responsibility for the Pledged Collateral upon the surrender of the same
to the Pledgors. No course of dealing between any Pledgor and the Lenders, nor
any failure by the Lenders to exercise or delay in exercising any right, power
or privilege hereunder or under any of the obligations, shall operate as a
waiver thereof; nor shall any single or partial exercise of any right, power or
privilege hereunder or thereunder preclude any other or further exercise thereof
or the exercise of any other right, power or privilege. The rights and remedies
herein provided and provided under any of the Obligations are cumulative and are
in addition to, and not exclusive of, any rights or remedies provided by law,
including, without limitation, the rights and remedies of a secured party under
the UCC. 

            8.       
THE LENDERS AS ATTORNEYS-IN-FACT. During the continuance of any
Event of Default, the Lenders may, but are without obligation to do so, as
attorneys-in-fact for each Pledgor, demand, sue for and/or collect any money or
property at any time due, payable or receivable to which they may be entitled
hereunder, on account of or in exchange for any of the Pledged Collateral. In
connection with any sale or other disposition, in whole or in part, of Pledged
Collateral by the Lenders pursuant to this Agreement and applicable law,
including the UCC, the Lenders shall have the right, for and in the name, place
and stead of each Pledgor, as attorneys-in-fact for each Pledgor, to execute
endorsements, assignments, or other instruments of conveyance or transfer with
respect to all or any of the Pledged Collateral. Each Pledgor shall indemnify
and hold harmless the Lenders from and against any liability or damage which the
Lenders may incur in the exercise and performance, in good faith, of any of the
Lenders’ powers and duties set forth herein. 

- 7 - 

            9.       
NOTICE. All notices hereunder shall be given in the same manner as
set forth in Section 8.1 of the Loan Agreement, provided that the Borrower’s
address for notices shall constitute each other Pledgor’s address for notices,
and any notice given to Borrower in accordance with the terms of such Section
shall be deemed to be given to each Pledgor.

            10.     
WAIVERS. To the extent permitted by applicable law, each Pledgor
waives presentment, notice, protest, notice or acceptance of this Agreement,
notice of any loans made, extensions granted, collateral received or delivered
or any other action taken in reliance thereon, all demands and notices in
connection with the delivery, acceptance, performance, default or enforcement of
any of the Obligations or other evidence of indebtedness for which any of the
Pledged Collateral is pledged and all other demands and notices of any
description, and assents to any extension or postponement of the time of payment
or any other indulgence, to any substitution, exchange or release of the
Obligations and to the addition or release of any party or person primarily or
secondarily liable, except in each case for demands and notices expressly
required by this Agreement or any other Loan Document. 

            11.     
REINSTATEMENT. This Agreement shall continue to be effective, or
be reinstated, as the case may be, if at any time any amount received by the
Lenders in respect of the Obligations is rescinded or must otherwise be restored
or returned by the Lenders upon the insolvency, bankruptcy, dissolution,
liquidation or reorganization of any Pledgor or upon the appointment of any
intervenor or conservator of, or trustee or similar official for, any Pledgor,
or any substantial part of its respective properties, or otherwise, all as
though such payments had not been made. 

          12.    
 WAIVER OF JURY TRIAL. EACH PLEDGOR AND EACH LENDER HEREBY
KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THEIR RIGHT TO A JURY TRIAL WITH
RESPECT TO ANY ACTION OR CLAIM ARISING OUT OF ANY DISPUTE IN CONNECTION WITH
THIS AGREEMENT, THE NOTES OR ANY OF THE OTHER LOAN DOCUMENTS, ANY RIGHTS OR
OBLIGATIONS HEREUNDER OR THEREUNDER, THE PERFORMANCE OF SUCH RIGHTS AND
OBLIGATIONS OR ANY COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS (WHETHER
VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY INCLUDING, WITHOUT LIMITATION, ANY
COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS OR ACTIONS OF A LENDER
RELATING TO THE ADMINISTRATION OR ENFORCEMENT OF THE LOAN AND THE LOAN
DOCUMENTS, AND AGREE THAT THEY WILL NOT SEEK TO CONSOLIDATE ANY SUCH ACTION WITH
ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED.

            EXCEPT
AS PROHIBITED BY LAW, EACH PLEDGOR AND EACH LENDER HEREBY WAIVE ANY RIGHT THEY
MAY HAVE TO CLAIM OR RECOVER IN ANY LITIGATION REFERRED TO IN THE PRECEDING SENTENCE ANY SPECIAL,
EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES OTHER THAN, OR IN
ADDITION TO, ACTUAL DAMAGES.

- 8 - 

            EACH
PLEDGOR (a) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF A LENDER HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT ANY LENDER WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVERS AND (b) ACKNOWLEDGES THAT EACH
LENDER HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN
DOCUMENTS TO WHICH EACH IS A PARTY BECAUSE OF, AMONG OTHER THINGS, SUCH
PLEDGOR’S WAIVERS AND CERTIFICATIONS CONTAINED HEREIN. 

            13.     
GOVERNING LAW. This Agreement and each of the other Loan Documents
are contracts under the laws of the State of New York and shall for all purposes
be construed in accordance with and governed by the laws of said State without
reference to its conflict or choice of laws principles (other than Sections
5-1401 and 5-1402 of the New York General Obligations Law, which shall apply to
this Agreement). 

           
14.      JURISDICTION; CONSENT TO SERVICE OF
PROCESS.

                          14.1       
Each Pledgor hereby irrevocably and unconditionally submits, for itself and its
property, to the nonexclusive jurisdiction of the Supreme Court of the State of
New York sitting in New York County and of the United States District Court for
the Southern District of New York, and any appellate court from any thereof, in
any action or proceeding arising out of or relating to any Loan Document, or for
recognition or enforcement of any judgment, and each of the parties hereto
hereby irrevocably and unconditionally agrees that all claims in respect of any
such action or proceeding may be heard and determined in such New York State or,
to the extent permitted by law, in such Federal court. Each of the parties
hereto agrees that a final, non-appealed judgment in any such action or
proceeding shall be conclusive and may be enforced in other jurisdictions by
suit on the judgment or in any other manner provided by law. Nothing in this
Agreement or any other Loan Document shall affect any right that the Pledgors or
the Lenders may otherwise have to bring any action or proceeding relating to
this Agreement or any other Loan Document against any other party hereto or
their properties in the courts of any jurisdiction. 

                          14.2       
Each Pledgor hereby irrevocably and unconditionally waives, to the fullest
extent it may legally and effectively do so, any objection which it may now or
hereafter have to the laying of venue of any suit, action or proceeding arising
out of or relating to this Agreement or any other Loan Document in any court
referred to in Section 14.1. Each of the parties hereto hereby
irrevocably waives, to the fullest extent permitted by law, the defense of an
inconvenient forum to the maintenance of such action or proceeding in any such
court. 

            15.     
MISCELLANEOUS. This Agreement shall be binding upon and inure to
the benefit of the parties hereto and their legal representatives, successors
and permitted assigns, and the term “the Lenders” shall be deemed to include any
other permitted holder or holders of any of the Obligations under the Loan
Agreement. This Agreement may be executed in any number of counterparts and by the different parties hereto on
separate counterparts, each of which when so executed and delivered shall be an
original, and all of which together shall constitute one instrument.

- 9 - 

      
     16.    
 TERMINATION. This Agreement, and the pledges, liens and
security interests hereunder, shall terminate concurrent with the termination of
the Loan Agreement (other than indemnification and similar obligations that
survive payment and satisfaction of the Obligations). Upon termination of this
Agreement, the Lenders shall return to each Pledgor the Pledged Collateral of
such Pledgor and shall file UCC termination statements terminating any financing
statements filed in favor of the Lenders against any Pledged Collateral. 

17.      AMENDMENTS. The
provisions of this Agreement may not be amended, modified or waived, except by
in writing signed by each Pledgor and each Lender, provided that any
amendment, modification or waiver that would adversely affect the rights of
Gauss under the Gauss Option Agreement shall also require the prior written
consent of Gauss. Gauss is hereby expressly declared to be a third party
beneficiary of the provisions of this Section 17 and shall have the right to
enforce its rights under this Section as if it were a party hereto. 

[Remainder of page intentionally left blank. The next page is
the signature page.] 

- 10 - 

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

PLEDGORS: 

GOLDEN QUEEN MINING CO. LTD. 

 

	 	By:	 /s/ Lutz Klingmann  
	 	 	Name: Lutz Klingmann
	 	 	Title:   President

 

GOLDEN QUEEN MINING HOLDINGS, INC.

 

	 	By:	 /s/ Lutz Klingmann  
	 	 	Name: Lutz Klingmann
	 	 	Title:   President

[Signature page to Pledge Agreement] 

LENDERS: 

THE LANDON T. CLAY 2009 IRREVOCABLE
TRUST DATED MARCH 6, 2009 

	 	By:	 
    /s/ Thomas M. Clay
    
	 	 	Name: Thomas M. Clay 
	 	 	Title: Trustee 

 

	 	HARRIS CLAY 
	 	 
	 	 
	 	/s/ Harris M. Clay

[Signature page to Pledge Agreement] 

EXHIBIT A 

DESCRIPTION OF PLEDGED COLLATERAL 

	Pledgor Name 	Issuer of Equity Interests 	Pledged Equity Interests 
	Golden Queen Mining Co. Ltd. 	Golden Queen Mining Holdings, Inc., a
      California corporation 	100 shares of common stock, constituting all of
      the capital stock of the issuer 
	Golden Queen Mining Holdings, Inc. 	Golden Queen Mining Company, LLC, a California
      limited liability company 	50% of the LLC membership interests, subject to
      adjustment as set forth in the Amended and Restated Limited Liability
      Company Agreement of Golden Queen Mining Company, LLCGolden Queen Mining Co. Ltd. - Exhibit 10.4 - Filed by newsfilecorp.com

REGISTRATION RIGHTS AGREEMENT 

      
     REGISTRATION RIGHTS AGREEMENT, dated as of
December 31, 2014, by and among Golden Queen Mining Co. Ltd., a British Columbia
company (the “Company”), THE LANDON T. CLAY 2009
IRREVOCABLE TRUST DATED MARCH 6, 2009 (“LTC Lender”), HARRIS CLAY
(together with LTC Lender, the “Lenders”) and the holders set forth on
Schedule A (the “Clay Family Holders”).

           
WHEREAS, the Company and the Lenders are parties to that certain Term Loan
Agreement, dated as of the date hereof (the “Term Loan
Agreement”); and 

           
WHEREAS, in consideration of the undertakings of the Lenders pursuant to the
Term Loan Agreement, the Company has agreed to provide the Holders (defined
below) certain rights as set forth herein. 

            NOW,
THEREFORE, in consideration of the premises and of the mutual covenants and
obligations hereinafter set forth (and for other good and valuable consideration
the receipt and sufficiency of which are hereby acknowledged by the Company),
the parties hereto hereby agree as follows: 

ARTICLE I 

DEFINITIONS 

            Section
1.1. Certain Defined Terms. As used herein, the following terms shall
have the following meanings: 

           
“Action” means any legal, administrative, regulatory
or other suit, action, claim, audit, assessment, arbitration or other
proceeding, investigation or inquiry. 

            “Affiliate”
shall mean, with respect to any Person, any other Person directly or indirectly
controlling, controlled by or under common control with, such Person. For
purposes of this definition, “control” when used with respect to any Person,
means the possession, directly or indirectly, of the power to cause the
direction of management and/or policies of such Person, whether through the
ownership of voting securities, by contract or otherwise. 

            “Agreement”
means this Registration Rights Agreement as it may be amended, supplemented,
restated or modified from time to time. 

            “Beneficial
Ownership” by a Person of any securities includes ownership by
any Person who, directly or indirectly, through any contract, arrangement,
understanding, relationship or otherwise, has or shares (i) voting power which
includes the power to vote, or to direct the voting of, such security; and/or
(ii) investment power which includes the power to dispose, or to direct the
disposition, of such security; and shall otherwise be interpreted in accordance
with the term “beneficial ownership” as defined in Rule 13d-3 adopted by the SEC
under the Exchange Act. The term “Beneficially Own”
shall have a correlative meaning. 

            “Business
Day” means any day, other than a Saturday, Sunday or a day on
which banking institutions in New York, New York are authorized or obligated to
close. 

           
“Common Shares” means the common shares, no par value
per share, of the Company. 

            “Exchange
Act” means the Securities Exchange Act of 1934, as amended, and
the rules and regulations promulgated by the SEC from time to time thereunder.

            “Governmental
Entity” shall mean any court, administrative agency or commission
or other governmental authority or instrumentality, whether federal, state,
local or foreign and any applicable industry self-regulatory organization. 

            “Holders”
means the Lenders, the Clay Family Holders and any Transferee of their
Registrable Securities (and “Holder” means any of such Persons).

            “Holders’
Representative” means Thomas M. Clay or any other Holder
designated by the Lenders as the Clay Holders’ Representative. 

            “Issuer
Free Writing Prospectus” means an issuer free writing prospectus,
as defined in Rule 433 under the Securities Act, relating to an offer of the
Registrable Securities. 

            “Law”
means any statute, law, code, ordinance, rule or regulation of any Governmental
Entity. 

           
“Other Securities” means Common Shares other than
Registrable Securities. 

            “Person”
means any individual, corporation, limited liability company, limited or general
partnership, joint venture, association, joint stock company, trust,
unincorporated organization, government or any agency or political subdivisions
thereof or any group (within the meaning of Section 13(d)(3) of the Exchange
Act) comprised of two or more of the foregoing. 

            “Prospectus”
means the prospectus included in any Registration Statement (including a
prospectus that discloses information previously omitted from a prospectus filed
as part of an effective Registration Statement in reliance upon Rule 430A or
Rule 430B promulgated under the Securities Act), as amended or supplemented by
any prospectus supplement with respect to the terms of the offering of any
portion of the Registrable Securities covered by such Registration Statement,
any Issuer Free Writing Prospectus related thereto, and all other amendments and
supplements to such prospectus, including post-effective amendments, and all
material incorporated by reference or deemed to be incorporated by reference in
such prospectus. 

            “Registrable
Securities” means (a) all Common Shares Beneficially Owned by the
Lenders and the Clay Family Holders currently held or acquired prior to July 1,
2015, (b) any securities issued directly or indirectly with respect to such
Common Shares described in clause (a) because of stock splits, stock dividends,
reclassifications, recapitalizations, mergers, share exchanges, reorganizations,
consolidations, or similar events, and (c) any of such Common Shares or other
securities transferred to a Transferee, but excluding, as to any particular
Registrable Securities, (i) Common Shares, if any, which have been transferred
pursuant to a Registration Statement that is effective under the Securities Act,
(ii) Common Shares, owned by Holders who are not Affiliates of the Company, that are eligible for sale
without restriction pursuant to Rule 144(b)(1)(i) (or any successor provision)
under the Securities Act, (iii) Common Shares which are otherwise eligible to be
sold to the public without application of the volume restrictions pursuant to
Rule 144 (or any successor provision) under the Securities Act and (iv) Common
Shares or other securities which have been transferred to any Person who is not
a Transferee. 

2

            “Registration
Statement” means any registration statement of the Company under
the Securities Act which permits the public offering of any of the Registrable
Securities pursuant to the provisions of this Agreement, including the
Prospectus, amendments and supplements to such registration statement, including
post-effective amendments, all exhibits and all material incorporated by
reference or deemed to be incorporated by reference in such registration
statement. 

           
“Rule 144” means Rule 144 under the Securities Act (or
any successor provision). 

            “SEC” means the United
  States Securities and Exchange Commission. 

            “Securities
Act” means the Securities Act of 1933, as amended, and the rules
and regulations promulgated by the SEC from time to time thereunder. 

            “Selling
Holder” means each Holder of Registrable Securities included in a
registration pursuant to Article II. 

            “Subsidiary”
of any Person shall mean those corporations and other entities of which such
Person owns or controls more than 50% of the outstanding equity securities
either directly or through an unbroken chain of entities as to each of which
more than 50% of the outstanding equity securities is owned directly or
indirectly by its parent. 

            “Transferee”
means any Person to whom the rights and obligations hereunder have been assigned
with the prior written consent of the Company pursuant to Section 3.6 hereof.

            Section
1.2. Terms Generally. The definitions in Section 1.1 shall apply equally
to both the singular and plural forms of the terms defined. Whenever the context
may require, any pronoun shall include the corresponding masculine, feminine and
neuter forms. The words “include”, “includes” and “including” shall be deemed to
be followed by the phrase “without limitation”, unless the context expressly
provides otherwise. All references herein to Articles, Sections, paragraphs,
subparagraphs, clauses or Exhibits shall be deemed references to Articles,
Sections, paragraphs, subparagraphs or clauses of, or Exhibits to, this
Agreement, unless the context requires otherwise. Unless otherwise expressly
defined, terms defined in this Agreement have the same meanings when used in any
Exhibit hereto. Unless otherwise specified, the words “this Agreement”,
“herein”, “hereof”, “hereto” and “hereunder” and other words of similar import
refer to this Agreement as a whole (including the Exhibits) and not to any
particular provision of this Agreement. The term “or” is not exclusive. The word
“extent” in the phrase “to the extent” shall mean the degree to which a subject
or other thing extends, and such phrase shall not mean simply “if”. Unless
expressly stated otherwise, any Law defined or referred to herein means such Law
as from time to time amended, modified or supplemented, including by succession
of comparable successor Laws and references to all attachments thereto and
instruments incorporated therein. References to a Person are also to its
permitted successors and assigns. The headings contained in this Agreement are for reference purposes only and
shall not affect in any way the meaning or interpretation of this Agreement.

3

ARTICLE II 

REGISTRATION RIGHTS 

            Section
2.1. Demand Registrations. Subsequent to July 1, 2015, the Holders’
Representative shall have the right by delivering a written notice to the
Company (a “Demand Notice”) to require the Company
to, pursuant to the terms of this Agreement, register under and in accordance
with the provisions of the Securities Act the number of Registrable Securities
owned by the Holders and requested by such Demand Notice to be so registered (a
“Demand Registration”); provided, however,
that a Demand Notice may only be made if the number of Registrable Securities
requested to be included in such Demand Registration is at least two million
(2,000,000) Common Shares, subject to adjustment for stock splits, stock
dividends, reclassifications, recapitalizations, mergers, share exchanges,
reorganizations, consolidations, or similar events. A Demand Notice shall also
specify the expected method or methods of disposition of the applicable
Registrable Securities. Following receipt of a Demand Notice, the Company shall
use its reasonable best efforts to file, as promptly as reasonably practicable,
but not later than 60 days with respect to any underwritten offering, or 30 days
with respect to any other offering, after receipt by the Company of such Demand
Notice (subject to paragraph (e) of this Section 2.1), a Registration Statement
relating to the offer and sale of the Registrable Securities requested to be
included therein by the Holders thereof in accordance with the methods of
distribution elected by such Holders (a “Demand Registration
Statement”) and shall use its reasonable best efforts to cause
such Registration Statement to be declared effective under the Securities Act as
promptly as practicable after the filing thereof. 

            (b)       
No securities shall be included under any Demand Registration Statement related
to an underwritten offering without the written consent of the Holders’
Representative, except Registrable Securities requested to be included therein
pursuant to Section 2.1(a) . Subject to the preceding sentence, if any of the
Registrable Securities registered pursuant to a Demand Registration are to be
sold in a firm commitment underwritten offering, and the managing underwriter(s)
of such underwritten offering advise the Holders in writing that it is their
good faith opinion that the total number or dollar amount of Registrable
Securities proposed to be sold in such offering, together with any Other
Securities proposed to be included by holders thereof which are entitled to
include securities in such Registration Statement, exceeds the total number or
dollar amount of such securities that can be sold without having an adverse
effect on the amount, price, timing or distribution of the Registrable
Securities to be so included together with all such Other Securities, then there
shall be included in such offering the number or dollar amount of Registrable
Securities and such Other Securities that in the opinion of such managing
underwriter(s) can be sold without so adversely affecting such offering, and
such number of Registrable Securities and Other Securities shall be allocated
for inclusion as follows: 

                         
(i)        first, the Registrable Securities
for which inclusion in such demand offering was requested by the Holders, pro
rata (if applicable) as nearly as practicable, based on the number of
Registrable Securities Beneficially Owned by each such Holder; and 

4

                          (ii)       
second, among any holders of Other Securities, pro rata as nearly as
practicable, based on the number of Other Securities Beneficially Owned by each
such holder. 

            (c)       
The Holders collectively shall be entitled to request no more than three Demand
Registrations of the Company, and in no event shall the Company be required to
effect more than one Demand Registration in any six month period. 

           
(d)        In the event of a Demand
Registration, the Company shall use its reasonable best efforts to maintain the
continuous effectiveness of the applicable Registration Statement for a period
of at least 180 days after the effective date thereof or such shorter period in
which all Registrable Securities included in such Registration Statement have
actually been sold. For the avoidance of doubt, the foregoing sentence is not
intended to limit the obligation of the Company to maintain the continuous
effectiveness of the Short-Form Registration contemplated by Section 2.1(h) as
required by Section 2.1(h) . 

            (e)       
The Company shall be entitled to postpone (but not more than once in any
six-month period), for a reasonable period of time not in excess of 60 days (and
not for periods exceeding, in the aggregate, 90 days during any twelve-month
period), the filing or initial effectiveness of, or suspend the use of, a
Registration Statement if the Company delivers to the Holders’ Representative a
certificate signed by both the Chief Executive Officer and Chief Financial
Officer of the Company certifying that, in such officers’ good faith judgment,
(A) such registration, offering or use would reasonably be expected to
materially adversely affect or materially interfere with a material pending
financing, acquisition, disposition, corporate reorganization, merger, public
offering of securities, or other material transaction involving or being
contemplated by the Company, or other similarly material events then concerning
the Company, (B) the Company is in possession of material non-public information
not otherwise then required by Law to be publicly disclosed and that the Company
deems advisable not to disclose in such Registration Statement, or (C) a
requirement to include pro forma information, which requirement the Company is
reasonably unable to comply with at such time. 

            (f)       
The Holders’ Representative shall have the right to notify the Company that it
has determined that the Registration Statement relating to a Demand Registration
be abandoned or withdrawn, in which event the Company shall promptly abandon or
withdraw such Registration Statement. 

            (g)       
No request for registration will count for the purposes of the limitations in
Section 2.1(c) if: (A) the Holders’ Representative determines in good faith to
withdraw the proposed registration prior to the effectiveness of the
Registration Statement relating to such request due to marketing conditions or
regulatory reasons relating to the Company, (B) the Registration Statement
relating to such request is not declared effective within 60 days of the date
such Registration Statement is first filed with the SEC (other than solely by
reason of the applicable Holders having refused to proceed), (C) prior to the
sale of at least 90% of the Registrable Securities included in the applicable
registration relating to such request, such registration is adversely affected
by any stop order, injunction or other order or requirement of the SEC or other
Governmental Entity or court, (D) more than 25% of the Registrable Securities
requested by the Holders to be included in the registration are not so included
pursuant to Section 2.1(b), or (E) the conditions to closing specified in any
underwriting agreement or purchase agreement entered into in connection with the
registration relating to such request are not satisfied (other than as a result
of a material default or breach thereunder by the applicable Holders). Except
for any registration withdrawn pursuant to one of (A) through (E) above or
Section 2.2(a), the Selling Holders shall reimburse the Company for all
reasonable and documented out-of-pocket fees and expenses incurred by the
Company in connection with any registration which is not completed solely due to
actions or elections of the Holders. 

5

            (h)       
In addition to the foregoing, the Company will use its commercially reasonable
efforts to qualify for registration on Form S-3 or to qualify for any comparable
or successor form or forms or any similar short-form registration
(“Short-Form Registration”), and such Short-Form Registration
shall be filed by the Company as promptly as practicable and shall constitute a
“shelf” registration statement providing for the registration of, and the sale
on a continuous or delayed basis (notwithstanding anything to the contrary in
Section 2.1(d)) of, the Registrable Securities, pursuant to Rule 415 under the
Securities Act, to permit the distribution of the Registrable Securities in
accordance with the methods of distribution elected by the Holders, including by
means of an underwritten offering. Upon filing a Short-Form Registration, the
Company shall use its reasonable best efforts to keep such Short-Form
Registration effective with the SEC at all times and any Short-Form Registration
shall be re-filed upon its expiration, and, subject to Section 2.1(e), the
Company shall cooperate in any shelf take-down by amending or supplementing the
Prospectus related to such Short-Form Registration as may be reasonably
requested by the Holders’ Representative or as otherwise required, until the
Holders no longer hold Registrable Securities (in each case, notwithstanding
anything to the contrary in Section 2.1(d)) . 

            Section
2.2. Piggyback Registrations. (a) If, other than pursuant to Section 2.1,
the Company proposes or is required to file a registration statement under the
Securities Act with respect to an offering of Common Shares, whether or not for
sale for its own account other than a registration (i) on Form S-4, Form S-8 or
any successor forms thereto, (ii) on any other registration form which may not
be used for the registration or qualification for distribution of Registrable
Securities, (iii) filed solely in connection with any employee benefit or
dividend reinvestment plan, (iv) a registration relating solely to a Rule 145
transaction under the Act, or (v) of any at-the-market offerings in the
aggregate not to exceed US$20,000,000, then the Company shall give prompt
written notice of such proposed filing at least 30 days before the anticipated
filing date (the “Piggyback Notice”) to the Holders
of Registrable Securities. The Piggyback Notice shall offer the Holders of
Registrable Securities the opportunity to include in such registration statement
the number of Registrable Securities as they may request (a
“Piggyback Registration”). Subject to Section 2.2(b)
hereof, the Company shall include in each such Piggyback Registration all
Registrable Securities with respect to which the Company has received written
requests for inclusion therein within 10 days after notice has been given to the
Holders of Registrable Securities, to permit the distribution of such
Registrable Securities in accordance with the methods of distribution set forth
in such registration statement. Such Holders shall be permitted to withdraw all
or part of the Registrable Securities from a Piggyback Registration at any time
at least two Business Days prior to the effective date of the Registration
Statement relating to such Piggyback Registration. The Company shall use its
reasonable best efforts to maintain the effectiveness of such Registration
Statement for a Piggyback Registration for a period of at least 180 days after
the effective date thereof or such shorter period in which all Registrable Securities included in such Registration Statement
have actually been sold. No Piggyback Registration shall count towards
registrations required under Section 2.1. 

6

            (b)       
If any of the securities to be registered pursuant to the registration giving
rise to the Holders’ rights under this Section 2.2 are to be sold in an
underwritten offering, the Holders shall be permitted to include all Registrable
Securities requested to be included in such registration in such offering on the
same terms and conditions as any Other Securities included therein; provided,
however, that if such offering involves a firm commitment underwritten
offering and the managing underwriter(s) of such underwritten offering advise
the Company in writing that it is their good faith opinion that the total amount
of Registrable Securities requested to be so included, together with all Other
Securities that the Company and any other Persons having rights to participate
in such registration intend to include in such offering, exceeds the total
number or dollar amount of such securities that can be sold without having an
adverse effect on the price, timing or distribution of the Registrable
Securities to be so included together with all Other Securities, then there
shall be included in such firm commitment underwritten offering the number or
dollar amount of Registrable Securities and such Other Securities that in the
opinion of such managing underwriter(s) can be sold without so adversely
affecting such offering, and such number of Registrable Securities and Other
Securities shall be allocated for inclusion as follows: 

                         
(i)        first, all Other Securities being
sold by the Company for its own account or by any Person (other than a Holder)
exercising a contractual right to demand registration; 

                         
(ii)       second, all Registrable Securities
requested to be included by the Holders, pro rata (if applicable) as
nearly as practicable, based on the number of Registrable Securities
Beneficially Owned by each such Holder; and 

                         
(iii)     third, among any other holders of Other Securities
requesting such registration, pro rata as nearly as practicable, based on
the number of Other Securities Beneficially Owned by each such holder of Other
Securities. 

            (c)       
In the case of an offering initiated by the Company as a primary offering on
behalf of the Company, nothing contained herein shall prohibit the Company from
determining, at any time, not to file a registration statement or, if filed, to
withdraw such registration or terminate or abandon the offering related thereto.

            Section
2.3. Registration Procedures. If and whenever the Company is required to
use its reasonable best efforts to effect the registration of any Registrable
Securities under the Securities Act as provided in Article II, the Company shall
effect such registration to permit the sale of such Registrable Securities in
accordance with the intended method or methods of disposition thereof, and
pursuant thereto the Company shall cooperate in the sale of the securities and
shall, as expeditiously as possible: 

            (a)       
Prepare and file with the SEC a Registration Statement or Registration
Statements on such form which shall be available for the sale of the Registrable
Securities by the Holders or the Company in accordance with the intended method
or methods of distribution thereof, and use its reasonable best efforts to cause
such Registration Statement to become effective and to remain effective as
provided herein; provided, however, that before filing a Registration
Statement or Prospectus or any amendments or supplements thereto (but not
including any Form 8-K, Form 10-Q, proxy statement or other similar filing or
amendment thereto that would be incorporated or deemed to be incorporated
therein by reference), the Company shall furnish or otherwise make available to
the Selling Holders, their counsel and the managing underwriter(s), if any,
copies of all such documents proposed to be filed, which documents will be
subject to the reasonable review and comment of such counsel, and any comment
letter relating to such document from the SEC, and, if requested by such
counsel, provide such counsel reasonable opportunity to participate in the
preparation of such Registration Statement and each Prospectus included therein
(but not including any Form 8-K, Form 10-Q, proxy statement or other similar
filing or amendment thereto that would be incorporated or deemed to be
incorporated therein by reference).

7

            (b)       
Prepare and file with the SEC such amendments and post-effective amendments to
each Registration Statement as may be necessary to keep such Registration
Statement continuously effective during the period provided herein and comply in
all material respects with the provisions of the Securities Act with respect to
the disposition of all securities covered by such Registration Statement, and
cause the related Prospectus to be supplemented by any Prospectus supplement or
Issuer Free Writing Prospectus as may be necessary to comply with the provisions
of the Securities Act with respect to the disposition of the securities covered
by such Registration Statement, and as so supplemented to be filed pursuant to
Rule 424 (or any similar provisions then in force) under the Securities Act.

            (c)       
Notify each Selling Holder and the managing underwriter(s), if any, promptly,
and (if requested by any such Person) confirm such notice in writing, (i) when a
Prospectus or any Prospectus supplement, Issuer Free Writing Prospectus or
post-effective amendment has been filed (but not including any Form 8-K, Form
10-Q, proxy statement or other similar filing or amendment thereto that would be
incorporated or deemed to be incorporated therein by reference, unless a request
for registration pursuant to Section 2.1 or 2.2 has been made), and, with
respect to a Registration Statement or any post-effective amendment, when the
same has become effective, (ii) of any request by the SEC or any other
Governmental Entity for amendments or supplements to a Registration Statement or
related Prospectus or Issuer Free Writing Prospectus or for additional
information, (iii) of the issuance by the SEC of any stop order suspending the
effectiveness of a Registration Statement or the initiation of any proceedings
for that purpose, (iv) if at any time the representations and warranties of the
Company contained in any underwriting agreement contemplated by Section 2.3(o)
below cease to be true and correct, (v) of the receipt by the Company of any
notification with respect to the suspension of the qualification or exemption
from qualification of any of the Registrable Securities for sale in any
jurisdiction, or the initiation or threatening of any proceeding for such
purpose, and (vi) of the happening of any event that makes any statement made in
such Registration Statement or related Prospectus or any document incorporated
or deemed to be incorporated therein by reference or any Issuer Free Writing
Prospectus related thereto untrue in any material respect or that requires the
making of any changes in such Registration Statement, Prospectus, documents or
Issuer Free Writing Prospectus so that, in the case of the Registration
Statement, it will not contain any untrue statement of a material fact or omit
to state any material fact required to be stated therein or necessary to make
the statements therein, not misleading, and that in the case of any Prospectus
or Issuer Free Writing Prospectus, it will not contain any untrue statement of a
material fact or omit to state any material fact necessary in order to make the
statements therein, in light of the circumstances under which they were made,
not misleading. 

8

            (d)       
Use its reasonable best efforts to obtain the withdrawal of any order suspending
the effectiveness of a Registration Statement, or the lifting of any suspension
of the qualification (or exemption from qualification) of any of the Registrable
Securities for sale in any jurisdiction at the reasonably earliest practical
date. 

            (e)       
If requested by the managing underwriter(s), if any, or the Holders of a
majority of the Registrable Securities being sold in connection with an
underwritten offering, promptly include in a Prospectus supplement,
post-effective amendment or Issuer Free Writing Prospectus such information as
the managing underwriter(s), if any, or such Holders may reasonably request in
order to permit the intended method of distribution of such securities and make
all required filings of such Prospectus supplement, such post-effective
amendment or Issuer Free Writing Prospectus as soon as practicable after the
Company has received such request. 

            (f)       
Furnish or make available to each Selling Holder, and each managing underwriter,
if any, without charge, such number of conformed copies of the Registration
Statement and each post-effective amendment thereto, including financial
statements (but excluding schedules, all documents incorporated or deemed to be
incorporated therein by reference, and all exhibits, unless requested in writing
by such Holder, counsel or managing underwriter(s)), and such other documents,
as such Holders or such managing underwriter(s) may reasonably request, and upon
request a copy of any and all transmittal letters or other correspondence to or
received from, the SEC or any other Governmental Entity relating to such
offering. 

            (g)       
Deliver to each Selling Holder, and the managing underwriter(s), if any, without
charge, as many copies of the Prospectus or Prospectuses (including each form of
Prospectus and any Issuer Free Writing Prospectus related to any such
Prospectuses) and each amendment or supplement thereto as such Persons may
reasonably request in connection with the distribution of the Registrable
Securities; and the Company, subject to Section 2.4(b), hereby consents to the
use of such Prospectus and each amendment or supplement thereto by each of the
Selling Holders and the managing underwriter(s), if any, in connection with the
offering and sale of the Registrable Securities covered by such Prospectus and
any such amendment or supplement thereto. 

            (h)       
Prior to any public offering of Registrable Securities, use its reasonable best
efforts to register or qualify or cooperate with the Selling Holders, the
managing underwriter(s), if any, and their respective counsel in connection with
the registration or qualification (or exemption from such registration or
qualification) of such Registrable Securities for offer and sale under the
securities or “Blue Sky” laws of such jurisdictions within the United States as
any Selling Holder or managing underwriter(s) reasonably requests in writing and
to keep each such registration or qualification (or exemption therefrom)
effective during the period such Registration Statement is required to be kept
effective and to take any other action that may be necessary or advisable to
enable such Selling Holders to consummate the disposition of such Registrable
Securities in such jurisdiction; provided, however, that the Company will
not be required to (i) qualify generally to do business in any jurisdiction
where it is not then so qualified, (ii) subject itself to taxation in any such
jurisdiction where it is not then so subject, or (iii) take any action that
would subject it to general service of process in any such jurisdiction where it
is not then so subject. 

            (i)       
Cooperate with the Selling Holders and the managing underwriter(s), if any, to
facilitate the timely preparation and delivery of certificates (not bearing any
legends) representing Registrable Securities to be sold after receiving written
representations from each Selling Holder that the Registrable Securities
represented by the certificates so delivered by such Selling Holder will be
transferred in accordance with the Registration Statement, and enable such
Registrable Securities to be in such denominations and registered in such names
as the managing underwriter(s), if any, or the Selling Holders may request at
least two Business Days prior to any sale of Registrable Securities. 

9

            (j)       
Use its reasonable best efforts to cause the Registrable Securities covered by
the Registration Statement to be registered with or approved by such other
Governmental Entities within the United States, except as may be required solely
as a consequence of the nature of such Selling Holder’s business, in which case
the Company will cooperate in all reasonable respects with the filing of such
Registration Statement and the granting of such approvals, as may be necessary
to enable the seller or sellers thereof or the managing underwriter(s), if any,
to consummate the disposition of such Registrable Securities. 

            (k)       
Upon the occurrence of any event contemplated by Section 2.3(c)(ii), (c)(iii),
(c)(iv), (c)(v) or (c)(vi) above, prepare a supplement or post-effective
amendment to the Registration Statement or a supplement to the related
Prospectus or any document incorporated or deemed to be incorporated therein by
reference or an Issuer Free Writing Prospectus related thereto, or file any
other required document so that, as thereafter delivered to the Selling Holders,
such Prospectus will not contain an untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading. 

            (l)       
Prior to the effective date of the Registration Statement relating to the
Registrable Securities, provide a CUSIP number for the Registrable Securities.

            (m)       
Provide and cause to be maintained a transfer agent and registrar for all
Registrable Securities covered by such Registration Statement from and after a
date not later than the effective date of such Registration Statement. 

            (n)       
Use its reasonable best efforts to cause all shares of Registrable Securities
covered by such Registration Statement to be authorized to be listed on the
Toronto Stock Exchange or another exchange in Canada or elsewhere, if any, on
which similar securities issued by the Company are then listed. 

10

            (o)       
In connection with an underwritten offering, if any, enter into an underwriting
agreement in form, scope and substance as is customary in underwritten
offerings, and in connection therewith, (i) make such representations and
warranties to the Selling Holders and the managing underwriter(s), if any, with
respect to the business of the Company and its Subsidiaries, and the
Registration Statement, Prospectus and documents, if any, incorporated or deemed
to be incorporated by reference therein, in each case, in form, substance and
scope as are customarily made by issuers in underwritten offerings, and, if
true, confirm the same if and when requested, (ii) use its reasonable best
efforts to furnish to the Selling Holders of such Registrable Securities
opinions and negative assurances of counsel to the Company and updates thereof
(which counsel, opinions and negative assurance (in form, scope and substance)
shall be reasonably satisfactory to the managing underwriter(s), if any, and
counsels to the Selling Holders of the Registrable Securities), addressed to each Selling Holder of Registrable
Securities and each of the managing underwriter(s), if any, covering the matters
customarily covered in opinions and negative assurances requested in
underwritten offerings and such other matters as may be reasonably requested by
such counsel and managing underwriter(s), (iii) use its reasonable best efforts
to obtain “comfort” letters and updates thereof from the independent certified
public accountants of the Company (and, if necessary, any other independent
certified public accountants of any Subsidiary of the Company or of any business
acquired by the Company for which financial statements and financial data are,
or are required to be, included in the Registration Statement) who have
certified the financial statements included in such Registration Statement,
addressed to each Selling Holder of Registrable Securities (unless such
accountants shall be prohibited from so addressing such letters by applicable
standards of the accounting profession) and each of the managing underwriter(s),
if any, such letters to be in customary form and covering matters of the type
customarily covered in “comfort” letters in connection with underwritten
offerings, (iv) if an underwriting agreement is entered into, the same shall
contain indemnification provisions and procedures substantially to the effect
set forth in Section 2.5 hereof with respect to all parties to be indemnified
pursuant to said Section except as otherwise agreed by the Holders of a majority
of the Registrable Securities being sold in connection therewith and the
managing underwriter(s), if any, and (v) deliver such customary documents and
certificates as may be reasonably requested by the Holders of a majority of the
Registrable Securities being sold in connection therewith, their counsel and the
managing underwriter(s), if any, to evidence the continued validity of the
representations and warranties made pursuant to clause (i) above and to evidence
compliance with any customary conditions contained in the underwriting agreement
or other agreement entered into by the Company. The above shall be done at each
closing under such underwriting or similar agreement, or as and to the extent
required thereunder. 

            (p)       
Upon execution of a customary confidentiality agreement, pursuant to which the
Holders agree to use the following information solely for the purpose of their
due diligence review in connection with an offering of securities by the
Company, make available for inspection by a representative of the Selling
Holders, the managing underwriter(s), if any, and any attorneys or accountants
retained by such Selling Holders or managing underwriter(s), at the offices
where normally kept, during reasonable business hours, financial and other
records, pertinent corporate documents and properties of the Company and its
Subsidiaries, each of the type which would be included in a reasonable and
customary due diligence review in connection with an offering of securities, and
cause the officers, directors and employees of the Company and its Subsidiaries
to supply all information in each case reasonably requested by any such
representative, managing underwriter(s), attorney or accountant in connection
with such Registration Statement.

            (q)       
Subject to the provisions of Section 2.7(b) hereof, in connection with any
Demand Registration that is a “fully underwritten marketed offering”, cause its
officers to use their reasonable best efforts to support the marketing of the
Registrable Securities covered by the Registration Statement (including, without
limitation, by participation in “road shows”) as reasonably requested by the
underwriters; provided that such officers shall not be required to take
any action which would unreasonably interfere with the normal business
operations of the Company. 

            (r)       
Otherwise use its reasonable best efforts to comply with all applicable rules
and regulations of the SEC and any applicable national securities exchange, and
make available to its security holders, as soon as reasonably practicable (but not
more than 18 months) after the effective date of the registration statement, an
earnings statement which shall satisfy the provisions of Section 11(a) of the
Securities Act. 

11

           
Section 2.4. Certain Additional Agreements. 

            (a)       
The Company may require each Selling Holder to furnish to the Company in writing
such information required in connection with such registration regarding such
Selling Holder and the distribution of such Registrable Securities as the
Company may, from time to time, reasonably request in writing and the Company
may exclude from such registration the Registrable Securities of any Selling
Holder who fails to furnish such information within a reasonable time after
receiving such request. 

            (b)       
Each Selling Holder agrees that upon receipt of any notice from the Company of
the happening of any event of the kind described in Section 2.3(c)(iii) or
(c)(vi) hereof, such Holder will forthwith discontinue disposition of such
Registrable Securities covered by such Registration Statement or Prospectus
until such Holder’s receipt of the copies of the supplemented or amended
Prospectus contemplated by Section 2.3(k) hereof, or until it is advised in
writing by the Company that the use of the applicable Prospectus may be resumed,
and has received copies of any additional or supplemental filings that are
incorporated or deemed to be incorporated by reference in such Prospectus;
provided, however, that (i) in no event shall such discontinuance exceed
the time period set forth in Section 2.1(e) hereof, and (ii) the Company shall
extend the time periods under Section 2.1 and Section 2.2 with respect to the
length of time that the effectiveness of a Registration Statement must be
maintained by the amount of time the Holder is required to discontinue
disposition of such securities. 

            (c)       
Each Holder covenants and agrees that it will comply with the prospectus
delivery requirements of the Securities Act as applicable to it or an exemption
therefrom in connection with sale of Registrable Securities pursuant to the
Registration Statement. 

           
Section 2.5. Indemnification. 

            (a)       
Indemnification by the Company. The Company shall indemnify and hold
harmless, to the fullest extent permitted by Law, each Selling Holder whose
Registrable Securities are covered by a Registration Statement or Prospectus,
the officers and directors of each of them, each Person who controls (within the
meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act)
each such Selling Holder and the officers and directors of each such controlling
Person, each underwriter (including any Holder that is deemed an underwriter
pursuant to any SEC comments or policies, if any, and each Person who controls
(within the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act) such underwriter (collectively, “Holder
Indemnitees”), from and against any and all losses, claims,
damages, liabilities, expenses (including, without limitation, costs of
preparation and reasonable attorneys’ fees and any other reasonable fees or
expenses incurred by such party in connection with any investigation or Action),
judgments, fines, penalties, charges and amounts paid in settlement
(collectively, “Losses”), as incurred, in each case
in connection with any offering of Registrable Securities in which a Selling
Holder is participating, (i) arising out of or based upon any untrue statement
(or alleged untrue statement) of a material fact contained in any applicable
Registration Statement (or in any preliminary or final Prospectus contained therein, any
document incorporated by reference therein or Issuer Free Writing Prospectus
related thereto) or any other offering circular, amendment of or supplement to
any of the foregoing or other document incident to any such registration,
qualification, or compliance, or based on any omission (or alleged omission) to
state therein (in the case of a final or preliminary Prospectus, in light of the
circumstances under which they were made) a material fact required to be stated
therein or necessary to make the statements therein not misleading, or (ii) any
violation by the Company of the Securities Act or of the Exchange Act in
connection with any such registration, qualification, or compliance;
provided, that the Company will not be liable to a Selling Holder or
underwriter, as the case may be, in any such case to the extent that any such
Loss arises out of or is based on any untrue statement or omission by such
Selling Holder or underwriter, as the case may be, but only to the extent that
such untrue statement (or alleged untrue statement) or omission (or alleged
omission) is made in such Registration Statement (or in any preliminary or final
Prospectus contained therein, any document incorporated by reference therein or
Issuer Free Writing Prospectus related thereto), offering circular, amendment of
or supplement to any of the foregoing or other document in reliance upon and in
conformity with written information furnished to the Company by such Selling
Holder or underwriter specifically for inclusion in such document. Such
indemnity shall remain in full force and effect regardless of any investigation
made by or on behalf of any Holder Indemnitee or any other Holder and shall
survive the transfer of such securities. The foregoing indemnity agreement is in
addition to any liability that the Company may otherwise have pursuant to
contract or applicable Law to each Holder Indemnitee. 

12

            (b)       
Indemnification by Selling Holders. In connection with any Registration
Statement in which a Selling Holder is participating by registering Registrable
Securities, such Selling Holder agrees, severally and not jointly with any other
Person, to indemnify and hold harmless, to the fullest extent permitted by Law,
the Company, the officers and directors of the Company, and each Person who
controls (within the meaning of Section 15 of the Securities Act or Section 20
of the Exchange Act) the Company, and each underwriter, if any, and each Person
who controls (within the meaning of Section 15 of the Securities Act or Section
20 of the Exchange Act) such underwriter, from and against all Losses, as
incurred, arising out of or based on any untrue statement (or alleged untrue
statement) of a material fact contained in any such Registration Statement (or
in any preliminary or final Prospectus contained therein, any document
incorporated by reference therein or Issuer Free Writing Prospectus related
thereto) or any other offering circular or any amendment of or supplement to any
of the foregoing or any other document incident to such registration, or any
omission (or alleged omission) to state therein a material fact required to be
stated therein or necessary to make the statements therein (in the case of a
final or preliminary Prospectus, in light of the circumstances under which they
were made) not misleading, in each case solely to the extent that such untrue
statement (or alleged untrue statement) or omission (or alleged omission) is
made in such Registration Statement (or in any preliminary or final Prospectus
contained therein, any document incorporated by reference therein or Issuer Free
Writing Prospectus related thereto), offering circular, or any amendment of or
supplement to any of the foregoing or other document in reliance upon and in
conformity with written information furnished to the Company by such Selling
Holder expressly for inclusion in such document. Such indemnity shall remain in
full force and effect regardless of any investigation made by or on behalf of
the Company or any of its directors, officers or controlling Persons. The
Company may require as a condition to its including Registrable Securities in
any Registration Statement filed hereunder that the holder thereof
acknowledge its agreement to be bound by the provisions of this Agreement
(including Section 2.5) applicable to it.

13

            (c)       
Conduct of Indemnification Proceedings. If any Person shall be entitled
to indemnity hereunder (an “indemnified party”),
such indemnified party shall give prompt notice to the party from which such
indemnity is sought (the “indemnifying party”) of
any claim or of the commencement of any Action with respect to which such
indemnified party seeks indemnification or contribution pursuant hereto;
provided, however, that the delay or failure to so notify the
indemnifying party shall not relieve the indemnifying party from any obligation
or liability except to the extent that the indemnifying party has been actually
prejudiced by such delay or failure. The indemnifying party shall have the
right, exercisable by giving written notice to an indemnified party promptly
after the receipt of written notice from such indemnified party of such claim or
Action, to assume, at the indemnifying party’s expense, the defense of any such
Action, with counsel reasonably satisfactory to such indemnified party;
provided, however, that an indemnified party shall have the right to
employ separate counsel in any such Action and to participate in the defense
thereof, but the fees and expenses of such counsel shall be at the expense of
such indemnified party unless: (i) the indemnifying party agrees to pay such
fees and expenses; (ii) the indemnifying party fails promptly to assume, or in
the event of a conflict of interest cannot assume, the defense of such Action or
fails to employ counsel reasonably satisfactory to such indemnified party, in
which case the indemnified party shall also have the right to employ counsel and
to assume the defense of such Action; or (iii) in the opinion of the indemnified
party’s outside legal counsel a conflict of interest between such indemnified
and indemnifying parties may exist in respect of such Action; provided,
further, however, that the indemnifying party shall not, in connection with
any one such Action or separate but substantially similar or related Actions in
the same jurisdiction, arising out of the same general allegations or
circumstances, be liable for the fees and expenses of more than one firm of
attorneys (together with appropriate local counsel) at any time for all of the
indemnified parties, or for fees and expenses that are not reasonable. Whether
or not such defense is assumed by the indemnifying party, such indemnified party
will not be subject to any liability for any settlement made without its consent
(but such consent will not be unreasonably withheld or delayed). No indemnifying
party will be subject to any liability for any settlement made without its
consent (but such consent will not be unreasonably withheld or delayed). The
indemnifying party shall not consent to entry of any judgment or enter into any
settlement that does not include as an unconditional term thereof the giving by
all claimants or plaintiffs to such indemnified party of a release, in form and
substance reasonably satisfactory to the indemnified party, from all liability
in respect of such claim or litigation. 

            (d)       
Contribution. (i) If the indemnification provided for in this Section 2.5
is unavailable to an indemnified party in respect of any Losses (other than in
accordance with its terms), then each applicable indemnifying party, in lieu of
indemnifying such indemnified party, shall contribute to the amount paid or
payable by such indemnified party as a result of such Losses, in such proportion
as is appropriate to reflect the relative fault of the indemnifying party, on
the one hand, and such indemnified party, on the other hand, in connection with
the actions, statements or omissions that resulted in such Losses as well as any
other relevant equitable considerations. The relative fault of such indemnifying
party, on the one hand, and indemnified party, on the other hand, shall be
determined by reference to, among other things, whether any action in question,
including any untrue or alleged untrue statement of a material fact or omission
or alleged omission to state a material fact, has been taken by, or relates to
information supplied by, such indemnifying party or indemnified party, and the
parties’ relative intent, knowledge, access to information and opportunity to
correct or prevent any such action, statement or omission. 

14

                          (ii)      
The parties hereto agree that it would not be just and equitable if contribution
pursuant to this Section 2.5(d) were determined by pro rata allocation or by any
other method of allocation that does not take account of the equitable
considerations referred to in the immediately preceding paragraph. 

                          (iii)     
No Person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any Person
who was not guilty of such fraudulent misrepresentation. 

            (e)       
Limitation on Holder Liability. Notwithstanding anything to the contrary
contained in this Agreement, an indemnifying party that is a Holder shall not be
required to indemnify or contribute any amount in excess of the amount by which
the net proceeds received by such Holder from the sale of the Registrable
Securities sold by such Holder in the applicable offering exceeds the amount of
any damages that such indemnifying party has otherwise been required to pay by
reason of the applicable untrue or alleged untrue statement or omission or
alleged omission. 

            Section
2.6. Rule 144; Rule 144A. The Company covenants that it will file the
reports required to be filed by it under the Securities Act and the Exchange Act
and the rules and regulations adopted by the SEC thereunder (or, if the Company
is not required to file such reports, it will, upon the request of any Holder,
make publicly available other information so long as necessary to permit sales
pursuant to Rule 144 or 144A under the Securities Act) to the extent required
from time to time to enable such Holder to sell Registrable Securities without
registration under the Securities Act within the limitation of the exemptions
provided by (i) Rule 144 or 144A or Regulation S under the Securities Act, as
such Rules may be amended from time to time, or (ii) any similar rule or
regulation hereafter adopted by the SEC. Upon the request of any Holder, the
Company will deliver to such Holder a written statement as to whether it has
complied with such requirements and, if not, the specifics thereof. 

            Section
2.7. Underwritten Registrations. (a) If any Demand Registration is an
underwritten offering, the Holders’ Representative shall have the right to
select the investment banker or investment bankers and managers to administer
the offering, subject to approval by the Company, not to be unreasonably
withheld or delayed. The Company shall have the right to select the investment
banker or investment bankers and managers to administer any incidental or
piggyback registration. 

            (b)       
No Person may participate in any underwritten registration hereunder unless such
Person (i) agrees to sell the Registrable Securities or Other Securities it
desires to have covered by the registration on the basis provided in any
underwriting arrangements in customary form (including pursuant to the terms of
any over-allotment or “green shoe” option requested by the managing underwriter,
provided that no such Person will be required to sell more than the
number of Registrable Securities that such Person has requested the Company to
include in any registration), and (ii) completes and executes all
questionnaires, powers of attorney, indemnities, underwriting agreements and
other documents required under the terms of such underwriting arrangements,
provided that such Person (other than the Company) shall not be required
to make any representations or warranties other than those related to
title and ownership of shares, authority to enter into the underwriting
agreement, and as to the accuracy and completeness of statements made in a
Registration Statement, Prospectus, offering circular, or other document in
reliance upon and in conformity with written information furnished to the
Company or the managing underwriter(s) by such Person and, provided
further, that such Person’s (other than the Company’s) liability in respect
of such representations and warranties shall not exceed such Person’s net
proceeds from the offering. 

15

            Section
2.8. Registration Expenses. The Company shall pay all reasonable
documented expenses incident to the Company’s performance of or compliance with
its obligations under this Article II, including, without limitation, (i) all
registration and filing fees (including fees and expenses (A) with respect to
filings required to be made with the SEC, all applicable securities exchanges
and/or FINRA and (B) of compliance with securities or Blue Sky laws including
any fees and disbursements of counsel for the underwriter(s) in connection with
Blue Sky qualifications of the Registrable Securities pursuant to Section
2.3(h)), (ii) printing expenses (including expenses of printing certificates for
Registrable Securities in a form eligible for deposit with The Depository Trust
Company and of printing Prospectuses if the printing of Prospectuses is
requested by the managing underwriter(s), if any, or by the Holders of a
majority of the Registrable Securities included in any Registration Statement),
(iii) messenger, telephone and delivery expenses of the Company, (iv) fees and
disbursements of counsel for the Company, (v) expenses of the Company incurred
in connection with any road show, and (vi) fees and disbursements of all
independent certified public accountants (including, without limitation, the
expenses of any “comfort” letters required by this Agreement) and any other
Persons, including special experts retained by the Company. In addition, the
Company shall bear all of its internal expenses (including all salaries and
expenses of its officers and employees performing legal or accounting duties),
the expense of any annual audit, the fees and expenses incurred in connection
with the listing of the securities to be registered on any securities exchange
on which similar securities issued by the Company are then listed and rating
agency fees and the fees and expenses of any Person, including special experts,
retained by the Company. The Company shall not be obligated to pay the fees and
disbursements of any counsel for the Holders in connection with any registration
under Article II, or any underwriting fees, discounts or commissions
attributable to sales of Registrable Securities by Holders thereof. 

ARTICLE III 

MISCELLANEOUS 

            Section
3.1. Conflicting Agreements. Each party represents and warrants that it
has not granted and is not a party to any proxy, voting trust or other agreement
that is inconsistent with or conflicts with any provision of this Agreement.

            Section
3.2. Termination. This Agreement shall terminate at such time as there
are no Registrable Securities, except for the provisions of Sections 2.5, 2.6,
2.8 and this Article III, which shall survive such termination. 

            Section
3.3. Amendment and Waiver. This Agreement may not be amended except by an
instrument in writing signed on behalf of each of the Company, and the Holders
of a majority of the aggregate number of Registrable Securities then held by all
Holders. Any party hereto may waive any right of such party hereunder by an
instrument in writing signed by such party and delivered to the other parties
(and, in the case of a waiver of any rights of the Holders, by an instrument in
writing signed by the Holders of a majority of the aggregate number of
Registrable Securities then held by all Holders). The failure of any party to
enforce any of the provisions of this Agreement shall in no way be construed as
a waiver of such provisions and shall not affect the right of such party
thereafter to enforce each and every provision of this Agreement in accordance
with its terms. 

16

            Section
3.4. Severability. If any provision of this Agreement shall be declared
by any court of competent jurisdiction to be illegal, void or unenforceable, all
other provisions of this Agreement shall not be affected and shall remain in
full force and effect. 

            Section
3.5. Entire Agreement. This Agreement embodies the complete agreement and
understanding among the parties hereto with respect to the subject matter hereof
and supersedes and preempts any prior understandings, agreements or
representations by or among the parties, written or oral, that may have related
to the subject matter hereof in any way. 

            Section
3.6. Successors and Assigns. Neither this Agreement nor any right or
obligation hereunder is assignable in whole or in part by any party without the
prior written consent of the other parties hereto; provided that the
prior written consent of the Holders shall not be required in connection with a
sale or acquisition of the Company, whether by merger, consolidation, sale of
all or substantially all of the Company’s assets, or a similar transaction, so
long as such successor is bound by the terms of this Agreement; provided
further that the Lenders and the Clay Family Holders may transfer their
rights and obligations hereunder (in whole or in part) to any other of the
Lenders and the Clay Family Holders without the prior written consent of the
Company, and provided further that the Holders may transfer their rights
and obligations hereunder (in whole or in part) to any other Person with the
prior written consent of the Company. Following such written consent, any such
assignment shall be effective upon receipt by the Company of written notice from
the transferring Holder stating the name and address of any Transferee and
identifying the number of shares of Registrable Securities with respect to which
the rights under this Agreement are being transferred and the nature of the
rights so transferred and (y) a written agreement in substantially the form
attached as Schedule B hereto from such Transferee to be bound by the
applicable terms of this Agreement. 

            Section
3.7. Counterparts; Execution by Facsimile Signature. This Agreement may
be executed in any number of counterparts, each of which shall be an original,
but all of which together shall constitute one instrument. This Agreement may be
executed by facsimile signature(s). 

            Section
3.8. Remedies. (a) Each party hereto acknowledges that monetary damages
would not be an adequate remedy in the event that any of the covenants or
agreements in this Agreement is not performed in accordance with its terms, and
it is therefore agreed that, in addition to and without limiting any other
remedy or right it may have, the non-breaching party will have the right to an
injunction, temporary restraining order or other equitable relief in any court
of competent jurisdiction enjoining any such breach or threatened breach and
enforcing specifically the terms and provisions hereof. Each party hereto
agrees to waive any requirement for the securing or posting of any bond in
connection with such remedy. 

17

            (b)       
All rights, powers and remedies provided under this Agreement or otherwise
available in respect hereof at law or in equity shall be cumulative and not
alternative, and the exercise or beginning of the exercise of any thereof by any
party shall not preclude the simultaneous or later exercise of any other such
right, power or remedy by such party. 

            Section
3.9. Notices. All notices required or permitted hereunder shall be in
writing and shall be deemed effectively given (i) upon personal delivery to the
party to be notified, (ii) when sent by confirmed facsimile if sent during
normal business hours of the recipient, if not, then on the next Business Day,
(iii) upon receipt of proof of transmission if sent by email or (iv) one
Business Day after deposit with a nationally recognized overnight courier,
specifying next day delivery, with written verification of receipt. All
communications shall be sent to the addresses set forth below or such other
address, email address or facsimile number as a party may from time to time
specify by notice to the other parties hereto: 

If to the Company: Golden Queen Mining
Co. Ltd., 6411 Imperial Avenue, West Vancouver, British Columbia, Canada V7W
2J5; Attention: H. Lutz Klingmann (lklingmann@goldenqueen.com) and Andrée
St-Germain (astgermain@goldenqueen.com); and with a copy (which shall not
constitute notice) to: Morton Law LLP, 1200 - 750 West Pender Street, Vancouver,
British Columbia, Canada, V6C 2T8; Attention: Edward L. Mayerhofer
(elm@mortonlaw.ca), Esq.; Fax: (604) 681-9652. 

If to the Lenders or the Clay Family
Holders: c/o East Hill Management Company, 10 Memorial Boulevard, Suite 902,
Providence, RI 02903, Fax: 401-490-0749, Email: Thomas.Clay@easthillmgt.com,
with a copy (which shall not constitute notice) to: Sullivan & Worcester
LLP, One Post Office Square, Boston, MA 02109, Attention: William A. Levine,
Esq., Fax: 617-338-2880 

           
Section 3.10. Nature of Holders’ Obligations. The obligations of each
Holder under this Agreement are several and not joint with the obligations of
any other Holder, and no Holder shall be responsible in any way for the
performance of the obligations of any other Holder under this Agreement. Nothing
contained herein, and no action taken by any Holder pursuant hereto or in
connection herewith, shall be deemed to constitute the Holders as a partnership,
a joint venture or any other kind of entity, or create a presumption that the
Holders are in any way acting in concert or as a group with respect to such
obligations or any of the transactions contemplated by this Agreement.

            Section
3.11. Governing Law; Consent to Jurisdiction. (a) This Agreement shall be
governed in all respects by the laws of the State of New York, without regard to
its conflicts of laws principles. 

            (b)       
Each of the parties hereto (i) consents to submit itself to the personal
jurisdiction of any Federal or state court located in the Borough of Manhattan
in the City of New York, New York in the event any dispute arises out of this
Agreement, (ii) agrees that it will not attempt to deny or defeat such personal jurisdiction by motion or other
request for leave from any such court and (iii) agrees that it will not bring
any Action relating to this Agreement in any court other than a Federal or state
court located in the Borough of Manhattan in the City of New York, New York.

18

            (c)       
Each of the parties hereto hereby irrevocably and unconditionally waives trial
by jury in any legal Action or proceeding in relation to this Agreement and for
any counterclaim therein. 

[signature page follows] 

19

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

GOLDEN QUEEN MINING CO. LTD. 

 

	 	By:	 /s/ Lutz Klingmann  
	 	 	Name: H. Lutz Klingmann 
	 	 	Title: President

[SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT] 

THE LANDON T. CLAY 2009 IRREVOCABLE
TRUST DATED MARCH 6, 2009 

 

	 	By:	 /s/ Thomas M. Clay   
	 	 	Name: Thomas M. Clay
	 	 	Title: Trustee

 

	 	/s/ Harris M. Clay
	 	Harris Clay 

[SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT] 

	  	 	LANDON T. CLAY 2013-4 ANNUITY 
TRUST U/A
      DATED JUNE 17, 2013 
	/s/ Cassius M.C.
      Clay 	 	 
	Cassius M.C. Clay 	 	 
	  	 	By:
      /s/ Thomas M. Clay
	  	 	        Name: Thomas
      M. Clay 
	/s/ Whitney
Clay	 	        Title: Trustee
    
	Whitney Clay, as custodian for James Clay 	 	 
	  	 	LTC CORPORATION 
	/s/ Jonathan
    Clay	 	 
	Jonathan Clay 	 	By:
      /s/ Landon T. Clay
	  	 	        Name: Landon
      T. Clay
	  	 	        Title:
      President 
	/s/ Landon H.
    Clay	 	 
	Landon H. Clay 	 	LTC CORP. PENSION AND PROFIT 
	  	 	SHARING PLAN 
	  	 	 
	/s/ Landon T.
    Clay	 	 
	Landon T. Clay 	 	By:
      /s/ Landon T. Clay
	  	 	        Name: Landon
      T. Clay 
	s/ Richard T.
    Clay	 	        Title:
      President 
	Richard T. Clay 	 	 
	  	 	THE MONADNOCK CHARITABLE 
	  	 	ANNUITY LEAD TRUST DATED MAY 
	/s/ Thomas M.
    Clay	 	31, 1996 
	Thomas M. Clay 	 	 
	  	 	By: /s/ Harris
      Clay
	933 MILLEDGE LLC 	 	        Name: Harris
      Clay 
	  	 	        Title:
      Trustee 
	By: /s/ Jonathan
      C. Clay	 	
	         Name: Jonathan C. Clay
	 	THE SKADUTAKEE CHARITABLE 
	         Title: Member 	 	ANNUITY LEAD TRUST DATED JUNE 
	  	 	28, 1993 
	ARCTIC COAST PETROLEUMS LTD. 	 	
	  	 	 
	  	 	By:
      /s/ Harris Clay
	By: /s/ Harris
    Clay	 	        Name: Harris
      Clay 
	         Name: Harris Clay 	 	        Title: Trustee
    
	         Title: President 	 	 
	  	 	 
	  	 	 
	  	 	 
		 	 

[SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT] 

SCHEDULE A 

Cassius M.C. Clay 
James Clay 
Jonathan Clay 
Landon
H. Clay 
Landon T. Clay 
Richard T. Clay 
Thomas M. Clay 
933
Milledge LLC 
Arctic Coast Petroleums, Ltd. 
Landon T. Clay 2013-4 Annuity
Trust u/a dated June 17, 2013 
LTC Corporation
LTC Corp. Pension and
Profit Sharing Plan
The Monadnock Charitable Annuity Lead Trust dated May 31,
1996
The Skadutakee Charitable Annuity Lead Trust dated June 28, 1993

SCHEDULE B 

Golden Queen Mining Co. Ltd. 
6411 Imperial Avenue 
West
Vancouver, British Columbia 
Canada V7W 2J5 
Attention: President and
Chief Financial Officer 

Ladies and Gentlemen: 

           
Reference is made to the Registration Rights Agreement, dated as of December 31,
2014 (the “Agreement”). Capitalized terms used and not otherwise defined herein
are used herein as defined in the Agreement. The undersigned (“Transferee”)
hereby: (i) acknowledges receipt of a copy of the Agreement; (ii) notifies the
Company that, on [Date], Transferee acquired from [insert name of
assigning Holder] (pursuant to a private transfer that was exempt from the
registration requirements under the Securities Act) [describe the Registrable
Securities that were transferred] (the “Transferred Securities”) and an
assignment of such transferor’s rights under the Agreement with respect and to
the Transferred Securities, and the Transferee has assumed from such transferor
the liability of the transferor in respect of any and all obligations under the
Agreement related to the Transferred Securities; and (iii) agrees to be bound by
all terms of the Agreement with respect to the Transferred Securities applicable
to a Holder of such Transferred Securities as if the Transferee was an original
signatory to the Agreement. Notices to the Transferee for purposes of the
Agreement may be addressed to: [•], [•], Attn: [•], Fax: [•]. This document
shall be governed by, and construed in accordance with, the laws of the State of
New York, applicable to contracts executed in and to be performed entirely
within that State. 

[Transferee] 

 

[By:] _______________________
Name:

[Title:] 

cc: [Transferor]

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