Document:

Exhibit 10.4 

 

OFF
TAKE AGREEMENT

 

between

 

NioCorp

 

525-999
West Hastings Street, Vancouver BC / Canada

 

(hereinafter
referred to as “Seller”)

 

and

 

THYSSEN
KRUPP METALLURGICAL PRODUCTS GMBH

 

(
TKMetPro )

 

ThyssenKrupp
Allee 1, D-45143 Essen / Germany

 

(hereinafter
referred to as “Buyer”)

 

    	 

     

    

 

THIS
AGREEMENT is entered into on November 10, 2014.

 

BETWEEN:

 

		(1)	NioCorp.,
                                         a company organised under the laws of British Columbia , Canada, whose registered address
                                         is 525-999 West Hastings Street, Vancouver BC V6C 2W2 Canada

 

and

 

		(2)	THYSSENKRUPP
                                         METALLURGICAL PRODUCTS GMBH, a company organised under the laws of Germany, whose
                                         registered address is ThyssenKrupp Allee 1, 45143 Essen, Germany

 

WHEREAS:

 

		(A)	The
                                         Seller owns and operates 100% of the Elk Creek Project located in Nebraska, USA (the
                                         “Project”).

 

		(B)	Subject
                                         to the successful completion of Project financing, the Seller will commence construction
                                         of a mine and processing facility at the Project site. . It is anticipated that the Project
                                         will produce approximately 7.500 MT per annum of Ferro Niobium (specified in “Product”)

 

		(C)	The
                                         Seller will sell the Committed Product Amount (as defined below) to the Buyer and the
                                         Buyer will purchase all such Product according to the terms and conditions as set out
                                         in this Agreement.

 

    	2 

     

    

 

NOW
THEREFORE IT IS HEREBY AGREED AS FOLLOWS:

 

		1	Definitions
                                         and Interpretation

 

		1.1	In
                                         this Agreement, the following words and expressions shall have the following meanings:

 

		Affiliate	means,
                                         with respect to any party, any person who directly or indirectly is controlled by, or
                                         is under direct or indirect common control with, such party. A person shall be deemed
                                         to “control” another person if such person possesses, directly or indirectly,
                                         the power to direct or cause the direction of the management and policies of such other
                                         person through the ownership of voting securities, by contract, or otherwise, and the
                                         word “controlled” shall have a similar meaning.

 

		Agreement	means
                                         this offtake agreement including any enclosures, annexures, and schedules attached to
                                         it.

 

	 	Buyer’s
                                      Logistics Costs	 has the meaning
                    set out in clause 10.2.

  

		Clause	means
                                         a clause of this Agreement.

  

		Committed Product
                               Amount	has
                                         the meaning set out in clause 3.2.
	 	 	 
	 	Delivery Plan	has the meaning set out in clause 6.1.
	 	 	 
	 	Delivered Product	means Product that has been delivered to the Buyer in
            accordance with clause 7.
	 	 	 
	 	Duration Period	has the meaning set out in clause 15.1.

 

    	3 

     

    

  

	 	Force Majeure	has the meaning set out in
            clause 16.1.
	 	 	 
		Incoterms	has
                                         the meaning set out in clause 7.3
	 	 	 
	 	Independent Surveyor	means an appropriately qualified
             independent surveyor company to carry out the quality, weight and size analysis of the Product under clause 9.3 and
             9.4, to be jointly selected by the Parties from the list of surveyors set out in the attached Enclosure 1.
	 	 	 
	 	Market Price	is the price per Tonne for
          Product as the Buyer and Seller may agree for a particular Order prior to the initiation of such Order, acting in good
          faith, reasonably and having due regard to market related variables including but not limited to signs of shortages,
          excess inventories or changes in supply or demand for the product applicable in the worldwide market for the Product.
          The Market Price including the premium or discount to the Provisional Price (if any) shall be mutually agreed between
          the Parties in writing during the Quotation Period and prior to any Shipment being dispatched and adjusted for any differences
          applicable by reference to the applicable Incoterms.
	 	 	 
	 	Market Price 1	determined in accordance
            with clause 10.2 (a) of this Agreement.
	 	 	 
	 	Market Price 2	determined in accordance
            with clause 10.2 (b) of this Agreement.

 

    	4 

     

    

 

		Order	means
                                         a written notification by the Buyer to the Seller in respect of a particular order of
                                         Product to be made pursuant to this Agreement, which shall include the details required
                                         by clause 6.2.
	 	 	 
	 	Party	means a
                             party to this Agreement.
	 	 	 
	 	Port of Discharge	has the meaning set
                 out in clause 6.2
	 	 	 
	 	Port of Shipment	means any location or
                port as agreed by the Parties
	 	 	 
	 	Pricing Publication	has the meaning set out
                in clause 10.1.

  

		Product	means
                                         Ferro Niobium with the specifications described in clause 8 and produced by the NioCorp

 

		Production	means
                                         the respective total production of Product by or on behalf of the Seller  

 

		Project	has
                                         the meaning set out in the recitals to this Agreement.

 

		Quarter	means
                                         the quarters of the calendar year.
	 	 	 
	 	Quotation Period	has the meaning set out in
           clause 10.1(a).
	 	 	 
	 	Seller’s Certificate	has the meaning set out
                in clause 9.1.

  

		Specification	means
                                         the specification of the Product set out in clause 8 or any other specification of the
                                         Product agreed in writing between the Seller and the Buyer from time to time.
	 	 	 
	 	Strategic Investor	means a third party or third
             parties who fulfil the conditions set out in clause 3.

 

    	5 

     

    

 

		Territory	exclusivity
                                         in Europe and any other country as the Parties may agree from time to time in writing.

  

		Tonne	means
                                         metric tonne, viz. 1 000 kilograms or 2204.62 lbs.
	 	 	 
	 	UFK Cover	means an untied loan guarantee
          of the Federal Republic of Germany granted pursuant to its untied loan guarantee scheme.

  

		USD	means
                                         US dollars.

 

		1.2	Unless
                                         the context otherwise requires, references in this Agreement to any agreement or document
                                         shall be construed as references to such agreement or document in force for the time
                                         being and as amended from time to time.

 

		1.3	Unless
                                         the context otherwise requires, the expressions the “Seller” and the “Buyer”
                                         shall be deemed to include their respective successors and assignees whether immediate
                                         or derivative.

 

		1.4	Unless
                                         the context otherwise requires, words denoting the singular shall include the plural
                                         and vice versa.

  

		2	No
                                         appointment of distributor or agent by the Seller

 

The
Seller hereby grants the Buyer the exclusive right to purchase the Committed Product Amount for sale within the Territory. The
Seller shall not and will procure that each of its Affiliates do not appoint any other person, firm, or company as a distributor
of or agent for the Seller for the sale or marketing of the Committed Product Amount in the Territory, or supply to any other
person, firm or company in the Territory any of the Committed Product Amount, whether for use or resale.

 

    	6 

     

    

 

		3	Strategic
                                         Investor in the Project

 

		3.1	If
                                         at any time a third party wishes to invest into the Project (and not, for certainty,
                                         the Seller), the Seller may proceed with such investment provided that the investor will
                                         be obligated to not distribute the Product in the Territory.

 

		3.2	The
                                         Parties acknowledge and agree that:

 

		(a)	as
                                         of the date of this Agreement, the amount of Product that the Seller is required to sell
                                         to the Buyer in each year, and that the Buyer is required to buy from the Seller in each
                                         year (the “Committed Product Amount”), is 50% of the Production up
                                         to 3.750MT of the Product produced in each year, subject to clause 10.1 (b); and

 

		(b)	the
                                         Seller shall have the right to sell the balance tonnage of Product not committed to the
                                         Buyer to whomever the Seller may choose, provided that such other customer of the Seller
                                         shall not be permitted to sell into the Territory. The Buyer shall not actively offer
                                         or place the Product on the market outside the Territory.

 

    	7 

     

    

 

		4	Purchase,
                                         Quantity and Type of the Product

 

The
Buyer must purchase from the Seller and the Seller must sell and deliver to the Buyer the Committed Product Amount pursuant to
the terms of this Agreement. This obligation shall commence at the start of the Duration Period (which is estimated to be 2017).

  

		5	Targeted
                                         sales by the Buyer to its customers

 

The
Buyer acknowledges and agrees that its current good faith estimate of the amount of Product to be sold to parties within Germany
(including any Affiliates of the Buyer) is 2.000 Tonnes of Product per annum. The Buyer shall notify the Seller of any changes
or updates to such good faith estimate throughout the Duration Period. The Buyer shall promote the Product in the Territory generally
and shall specifically concentrate its marketing efforts in Germany with the goal of exceeding such estimated amount of Product
to be sold to parties within Germany.

 

		6	Placement
                                         of Orders

 

		6.1	For
                                         the duration of this Agreement, the Seller shall provide to the Buyer a provisional rolling
                                         five year production profile. Furthermore the Parties shall use good faith efforts to
                                         agree on a delivery plan for each calendar year on or before November 15 of the preceding
                                         year. The delivery plan for the calendar year shall be updated by the Parties on a quarterly
                                         basis, not later than four weeks prior to the beginning of each Quarter (with the most
                                         updated version of such plan being the “Delivery Plan”).

 

		6.2	The
                                         Buyer shall give the Seller each applicable Order of the Product in writing by no later
                                         than 15 days prior to the scheduled date of delivery of the Product as set forth in the
                                         Delivery Plan. The Seller shall deliver written confirmation of each order to the Buyer
                                         within three days following the Seller’s receipt of such Order. The Seller may
                                         refuse any Order where the quantities contained in the Order exceed the amount of Product
                                         agreed between the Parties. The Seller will not be liable to deliver such quantities
                                         of extra Product to the Buyer. Each Order must contain the proposed date of delivery,
                                         the proposed place of delivery or port of discharge (the “Port of Discharge”),
                                         provisions concerning quantity, the type of Product, packing, terms of delivery, price
                                         as per clause 10, terms of payment and any other information reasonably requested by
                                         the Seller and in accordance with this Agreement.

 

    	8 

     

    

 

		7	Delivery
                                         of the Product

 

		7.1	If
                                         Seller fails to deliver a specific amount of Product, the Buyer shall not be entitled
                                         to reject delivery of the decreased amount of Product or to terminate the specific Order
                                         during a grace period of 30 days. However, all other rights and remedies of Buyer for
                                         non-delivery or late delivery shall be unaffected. Acceptance of delivery of the decreased
                                         amount of Product does not entail any waiver of the rights and remedies of the Buyer.

 

		7.2	Details
                                         regarding the delivery of the Product (e.g. packaging, marking, labelling, partial deliveries
                                         etc.)  shall be agreed between the Parties.

 

		7.3	The
                                         terms of delivery shall be agreed between the Parties in each individual case. The Parties
                                         will generally choose FCA/FOB Port of Shipment, as defined according to the INCOTERMS
                                         published by the International Chamber of Commerce, edition 2010. The Seller shall ensure
                                         that the loading of the materials can be achieved within the agreed time as stipulated
                                         in the Order.

 

		7.4	The
                                         risk of and the responsibility for the Delivered Product shall pass to the Buyer upon
                                         delivery as agreed upon between the Parties in accordance with clause 7.3 above.

 

		7.5	Title
                                         in the Delivered Product shall pass to the Buyer as and when the Buyer has fully paid
                                         for the Delivered Product in accordance with this Agreement.

 

    	9 

     

    

 

		7.6	Buyer
                                         shall be allowed to order a maximum quantity each month of each Material equal to 150%
                                         of the Committed Product Amount , described in 3.2 divided by twelve (12) not exceeding
                                         3.750MT per year.

 

		8	Specification
                                         of the Product

 

		8.1	The Product
                                         shall fulfil the chemical composition, which are defined in Enclosure “PRODUCT
                                         SPECIFICATION DATA SHEET”

  

		8.2	The
                                         sizing of the material for the Product will be of approx. 5-50 mm (or any other size
                                         as Buyer and Seller will agree upon)

 

		8.3	Subject
                                         to paragraph 8.1 The Product should be free of contamination. .

 

		9	Determination
                                         of weight and quality

 

		9.1	Seller
                                         will provide a third party certificate of quantity and quality to the Buyer on Delivery
                                         which will be accepted by the Buyer as prima facie evidence of Product quantities and
                                         specifications (“Seller’s Certificate”).

 

		9.2	The
                                         Buyer reserves the right to carry out a quantity and quality verification of the Delivered
                                         Product at its warehouse or at the place of destination (i. e. at the storage of the
                                         Buyer’s customers). If this quantity and quality control determines a variation
                                         from the figures of the Seller’s Certificates both parties should find an amicable
                                         solution. Once a reliable process for quantity and quality control and the handling of
                                         variations has been developed, the parties will agree on a general procedure for the
                                         analysis and possible deviation tolerances/corridors.

 

		9.3	The
                                         Seller shall consult with the Buyer from time to time during the Duration Period of this
                                         Agreement in order to ensure that the Specification of the Product to be sold by the
                                         Buyer is acceptable to the Buyer’s customers.

 

    	10 

     

    

 

		10	Price
                                         of the Product

 

		10.1	The
                                         price calculation (10.2) is based on the provisional price (as the “Provisional
                                         Price”) for Ferro Niobium which is as follows:

 

		(a)	the
                                         low unknown quotation for the Product for the week prior to the date that delivery of
                                         the Product is made or any other week mutually agreed upon (with such week being the
                                         “Quotation Period”) as published in the Metal Pages “Ferro-niobium
                                         65% Nb (EU)” Index (in either case, the “Pricing Publication”);
                                         or

 

		(b)	such
                                         other price as the Buyer and the Seller may agree for a particular Order prior to the
                                         initiation of such Order, acting reasonably and having due regard for the then-prevailing
                                         market conditions. If the Parties are unable to agree on such other price for a particular
                                         Order within 10 working days from the date of the Order, then the amount of Product reflected
                                         in such Order shall reduce the Buyer’s obligations under clause 3.2(a).

  

		10.2	The
                                         price to be paid by the Buyer to the Seller for the Product shall be calculated as follows:

 

The
Provisional Price, which is based on the Metal Pages “Ferro-niobium 65% Nb (EU)” Index:

 

		(a)	less
                                         such discount deducted or plus such premium added, by the Buyer to Buyer’s customers
                                         with respect to a price determined on the basis of low quotation as published in the
                                         Pricing Publication

 

Equals
Market Price 1.

 

    	11 

     

    

 

If
Buyer and Seller do not agree on a discount/premium, the procedure described in clause 10.1 (b) shall apply

 

		(b)	Market
                                         Price 1 less all of the Buyer’s actual costs relating to the handling of the Product,
                                         such costs include, but are not limited to:

 

		(i)	freight,
                                         excluding any address/usage commissions paid to the Buyer;

 

		(ii)	insurance
                                         costs for the Product during transportation (currently 0.15 % of 110 % of the value invoiced
                                         by the Seller);

 

		(iii)	financing
                                         costs

 

		(iv)	handling
                                         at the ocean port (if any);

 

		(v)	customs
                                         clearance costs (if any);

 

		(vi)	customs
                                         import duties (if any) charged by the country of destination of the Product;

 

		(vii)	handling
                                         at the warehouse (if any);

 

		(viii)	storage
                                         fee;

 

		(ix)	freight
                                         from warehouse to customer (if any)

 

Equals
Market Price 2.

 

		(c)	and
                                         less a discount of 3,75 % calculated on the Market Price 2

 

Market
Price 2 less the discount in 10.2 (c) equals the Settlement Price.

 

		10.3	All
                                         costs referenced in clause 10.2(b) shall be Buyer’s actual costs and without any
                                         profit or mark-up (collectively, the “Buyer’s Logistics Costs”).
                                         As soon as practicable following the receipt of an Order, Buyer shall deliver an invoice
                                         to Seller setting out in detail, and accompanied by supporting receipts and other documentation,
                                         the Buyer’s Logistics Costs relating to such Order.

 

    	12 

     

    

 

		10.4	Buyer
                                         shall have the full discretion to determine the prices at which the Buyer sells the Product
                                         to Buyer’s own customers.

 

		10.5	The
                                         Seller, as soon as practicable in each case, will issue to the Buyer an invoice for all
                                         Delivered Product (the “Invoice”) setting out the Provisional Price
                                         calculated in accordance with clause 10.1.

 

		10.6	In
                                         case the Pricing Publications under clause 10.1. (a) no longer exist, the Parties shall
                                         meet and discuss in good faith the necessary amendments to this agreement within one
                                         quarter from the time one Party has given notice to the other Party that such circumstances
                                         have occurred.

  

		11	Payment

 

		11.1	The
                                         Buyer shall pay to Seller 85% of the Provisional Price in full for each Order within
                                         10 days of shipment date and presentation by the Seller to the Buyer of the following
                                         documents (whether in original, electronic or facsimile form):

 

		(a)	the
                                         Invoice;

 

		(b)	Full
                                         set Bill of Lading (B/L) (if applicable), or waybill/Forwarder’s Certificate of
                                         Receipt (if applicable);

 

		(c)	Certificate
                                         of origin (EUR 1 if applicable); and

 

		(d)	Seller’s
                                         Certificate of quality and quantity.

 

		11.2	The
                                         difference between the 85 % of the Provisional Price and the Settlement Price shall be
                                         paid by Seller to Buyer / by the Buyer to Seller promptly at the end of the month following
                                         the month of delivery and after all costs as per clause 10.3 are fixed. Buyer shall have
                                         the right to set off any amounts due from Seller under this clause 11.2 against any amounts
                                         payable by Buyer to Seller in respect of Delivered Product.

 

		11.3	Payments
                                         for the Delivered Product shall be made by way of wire transfer to the Seller’s
                                         bank account as specified by the Seller. The Buyer acknowledges and agrees it shall make
                                         payment in full of the amounts due under this Agreement and in accordance with the payment
                                         terms as set forth in this Agreement without any deduction for any discount or credits,
                                         contra or setoffs (other than as permitted by clause 11.2) of any kind or amount whatsoever
                                         except for amounts otherwise expressly authorized in writing by Seller.

 

    	13 

     

    

 

		11.4	In
                                         the event that the Buyer does not fulfil its payment obligations or any part of it in
                                         accordance with clauses 11.1 - 11.3, which amount is not the subject of a dispute between
                                         the Parties, Seller may in its absolute discretion suspend all further deliveries to
                                         the Buyer of Product under this Agreement to the value of the unpaid amount while the
                                         amount payable remains outstanding and Seller will have no liability to Buyer in relation
                                         to such suspension.

 

		11.4	On
                                         the first day of each month, the Buyer and the Seller shall discuss in good faith any
                                         amounts owed by either Party having regard to the volumes of Product delivered and amounts
                                         paid in the previous month with a view to settling and agreeing such amounts.

 

		11.5	If
                                         there is a conflict between the terms and conditions of this Agreement and the terms
                                         or conditions contained in any Order or other notice, shipment, specifications, purchase
                                         order, sales order, acknowledgement or other document which may be used in connection
                                         with the transactions contemplated by this Agreement, the terms and conditions of this
                                         Agreement shall supersede and govern, if the Parties do not express in writing their
                                         common intention to deviate from the terms and conditions of this Agreement for a certain
                                         Order.

  

		12	Forecasting,
                                         Marketing and Access to Records

 

The
Buyer and the Seller will meet annually (between September and November each year) to consult with each other and agree in principle
on:

 

		●	Forecast
                                         production and

 

		●	Marketing
                                         (including expected market conditions)

 

for
the forthcoming calendar year.

 

    	14 

     

    

 

The
Buyer shall at all times use its reasonable endeavours to create and develop and maximise the market for and promote sales of
the Product in the Territory to potential buyers thereof, with particular emphasis in Germany, and work diligently to obtain orders
therefore and handle fairly and promptly any customer’s queries or problems and complaints in relation to the Product in
a manner designed to ensure good relations between the Buyer, the Seller and the Buyer’s customers.

 

The
Buyer will keep and will provide to the Seller upon its reasonable request, full open book access to the Buyer’s records,
but only in so far as costs under clause 10.2. (b) are concerned.

 

		13	Warranties,
                                         Indemnity and Liability of the Seller

 

		13.1	Seller
                                         represents and warrants to the Buyer that:

 

		(a)	it
                                         is duly incorporated in its place of incorporation and validly existing and, where appropriate,
                                         in good standing under the laws of that place;

 

		(b)	it
                                         has full power, authority and legal right to execute and deliver and perform its obligations
                                         under this Agreement;

 

		(c)	it
                                         has the power to own its property and assets and to carry on its business as it is being
                                         conducted at the time of execution of this Agreement;

 

		(d)	this
                                         Agreement has been duly authorised and executed by it;

 

		(e)	the
                                         execution, delivery and performance by it of this Agreement does not and will not violate
                                         or be in conflict with any provision of any law or its constitution or its other constituent
                                         documents.

 

		13.2	The
                                         Seller warrants to the Buyer that, unless otherwise agreed, the Product will conform
                                         in all respects with the Specifications.

 

		13.3	The
                                         warranties in clauses 13.1 and 13.2 exclude all other warranties, express or implied,
                                         oral or written. For avoidance of doubt, any rights and remedies given to the Buyer by
                                         law or separate agreement between Buyer and Seller in relation to breach of Warranty
                                         shall remain unaffected in regard to the warranties given herein.  The
                                         Buyer shall not be entitled to terminate the Agreement, unless in accordance with clause
                                         15.2.

 

    	15 

     

    

 

		13.4	

 

		(a)	The
                                         Seller shall indemnify the Buyer against any and all losses, liabilities, damages and
                                         expenses and hold harmless the Buyer against all and any claims of third parties based
                                         on the Products which do not meet the Specifications. The Seller shall not be liable
                                         for any acts or omissions to the extent attributable to the Buyer. Buyer shall be obliged
                                         to use best efforts in order to minimize any losses, liabilities, damages and expenses
                                         arising in connection with such claim. If Buyer is in default of this obligation Seller’s
                                         liability under this clause shall be reduced accordingly. If reasonably possible, the
                                         Buyer shall coordinate the handling of any claim.

  

		13.5	Notwithstanding
                                         anything to the contrary in this Agreement, Seller’s maximum liability under clause
                                         13.2 shall not be limited to the value of the specific Order for the Product that did
                                         not conform to the Specifications. 

 

		14	Warranties
                                         and Liabilities of the Buyer

 

14.1       The
Buyer represents and warrants to the Seller that:

 

		(a)	it
                                         is duly incorporated in its place of incorporation and validly existing and, where appropriate,
                                         in good standing under the laws of that place;

 

		(b)	it
                                         has full power, authority and legal right to execute and deliver and perform its obligations
                                         under this Agreement;
	 	 	 

		(c)	it
                                         has the power to own its property and assets and to carry on its business as it is being
                                         conducted at the time of execution of this Agreement;

 

		(d)	this
                                         Agreement has been duly authorised and executed by it;

 

    	16 

     

    

 

		(e)	the
                                         execution, delivery and performance by it of this Agreement does not and will not violate
                                         or be in conflict with any provision of any law or its constitution or its other constituent
                                         documents.

 

		14.2	The
                                         Buyer shall indemnify against any and all typical and foreseeable losses, liabilities,
                                         damages and expenses and hold harmless the Seller against all and any breaches of the
                                         Buyer’s obligations under this Agreement, including any breach of its payment obligations
                                         and its obligations to purchase the Committed Product Percentage in accordance with clause
                                         4.1. There shall be no liability for consequential damages, i.e. loss of profits, loss
                                         of production and costs connected with interruption of operation.

  

		15	Duration
                                         Period

 

		15.1	Subject
                                         to clause 15.3, this Agreement enters into force as of the date first written above.
                                         The “Duration Period” for the purposes of this Agreement starts within
                                         30 days of the Seller achieving the first commercial production of Product of the Seller
                                         and  shall continue in place for a term of
                                         10 years thereafter. The parties may by mutual agreement extend the Duration Period.

 

In
the event of termination of this Agreement all contracts concluded by the Buyer with its customers which are notified by the Buyer
to the Seller in accordance with the terms of this Agreement, before the termination date shall be performed by both Parties in
accordance with this Agreement notwithstanding whether the contractual deliveries are to be made after the termination date.

 

		15.2	Each
                                         Party may terminate this Agreement with immediate effect if:

 

		(a)	the
                                         other Party commits a material breach of its obligations under this Agreement and has
                                         failed to remedy such breach within 90 days after the non-breaching Party requested in
                                         writing the other Party to remedy such breach; or

 

    	17 

     

    

 

		(b)	the
                                         other Party, enters into liquidation, becomes insolvent, is declared bankrupt, enters
                                         into any kind of receivership or makes any arrangement or composition or assignment for
                                         the benefit of any creditor.

 

15.3           If
desired by Seller, Buyer shall use its reasonable efforts to assist Seller to obtain a UFK Cover. Buyer shall cooperate with the
German bank appointed by Seller as its UFK agent in all the banks’ efforts to receive the UFK Cover, including any letter
of support from Buyer for the UFK application, meetings with German government authorities and responses to written or verbal
information requests from such authorities. Alternatively the parties may explore possibilities of a potential investment.

 

		16	Force
                                         Majeure

 

		16.1	Neither
                                         Party shall be liable for failure to perform or observe any provision of this Agreement
                                         which is caused by contingencies that are beyond its control and could not reasonably
                                         be expected at the time of execution of an Order or have been avoided or overcome by
                                         such Party, including but not limited to fire, flood, cyclone, earthquake, snowstorm,
                                         drought, hail storm, hurricane, perils of the sea, Acts of God, war (declared and undeclared),
                                         strikes, lockouts or government actions and an event of Force Majeure at the Production
                                         plant but excluding failure to pay (each such event a “Force Majeure”).

 

The
Party whose performance or observance is prevented by any such contingency shall immediately notify the other of the occurrence
and details thereof and shall have the right not to perform or observe as herein provided during the period of such contingency,
whereupon the contractual tonnage shall be postponed to future shipments by mutual agreement.

 

    	18 

     

    

 

		16.2	If
                                         the event of Force Majeure continues to affect a specific Order for more than 30 (thirty)
                                         days, both parties shall negotiate the postponement or the termination of that Order.
                                         If within a further 30 (thirty) days after the negotiations have started both parties
                                         cannot reach an agreement, each Party has the right to terminate that Order. In the case
                                         of such a termination, each Party shall bear its own costs and further claims for compensation
                                         in connection with the termination of that Order shall be excluded.

 

		16.3	If
                                         the event of Force Majeure continues for more than 90 (ninety) days, both parties shall
                                         negotiate in good faith the further postponement of this Agreement.

 

		17	Notices

 

All
notices or other communications to a Party under or in connection with this Agreement shall be made in writing in English and
deemed to be duly and validly received (a) if delivered by hand, on the day when delivered by hand (securing a receipt evidencing
such delivery) (b) if sent by registered mail or internationally recognised overnight courier, at time of receipt or recorded
delivery or (c) if sent by facsimile, upon confirmation of transmission by the other Party, addressed, in each case, as follows
(or to such other address as either Party may prescribe by notice given pursuant to this clause 17):

 

    	19 

     

    

 

	 	To the Seller:	To the Buyer
	 	Senior Manager	Senior Manager
	 	NioCorp Developments Ltd.	ThyssenKrupp Metallurgical Products GmbH
	 	525-999 West Hastings Street	ThyssenKrupp Allee 1
	 	Vancouver BC V6C 2W2	45143 Essen
	 	Canada	Germany
	 	 	Fax: +49 201 844563809

 

		18	Miscellaneous

 

		18.1	Neither
                                         Party hereto may assign, transfer, charge or pledge all or any of its rights or obligations
                                         under this Agreement without the prior written consent of the other Party. Such consent
                                         shall not be unreasonably withheld. However, as an exception, all or any of the rights
                                         or obligations under this Agreement can be charged and/or assigned by way of security
                                         to a bank or financial institution for financing, hedging or equivalent purposes without
                                         prior written consent of the other Party. The Buyer shall upon request of the Seller
                                         execute a direct agreement related to the above between the Buyer, the Seller and the
                                         Seller’s bank/financial institution on terms reasonably acceptable by the Buyer,
                                         the Seller and the Seller’s bank/financial institutions.

 

		18.2	Each
                                         Party shall bear its own costs and expenses in connection with the negotiation, preparation
                                         and execution of this Agreement and the performance of the transactions contemplated
                                         by it.

 

		18.3	This
                                         Agreement constitutes the entire agreement between the parties hereto with respect to
                                         the subject matter of this Agreement, and supersedes all previous proposals, agreements
                                         and other written and oral communications in relation thereto.

 

		18.4	This
                                         Agreement may not be terminated or modified otherwise than by an instrument in writing
                                         signed by both parties. The same applies to modifications of this clause.

 

    	20 

     

    

 

		18.5	A
                                                                                                                              waiver by either Party on any occasion of any part of this Agreement does not constitute a waiver by that Party of any other
                                                                                                                              part on any other occasion.

 

		18.6	If
                                         any of the provisions of this Agreement becomes invalid, illegal or unenforceable in
                                         any respect under any applicable law, the validity, legality and enforceability of the
                                         remaining provisions shall not in any way be affected or impaired. The invalid or unenforceable
                                         provision shall be replaced by such a valid provision which comes closest to the original
                                         intent of the parties.

 

		18.7	Except
                                         as required by law or for the purpose of the performance of this Agreement, no Party
                                         shall make any announcement or otherwise make publicly available any statement or release
                                         concerning this Agreement or the transactions contemplated by it without prior written
                                         approval of the other Party unless the information had already entered into the public
                                         domain without any fault of either Party. Each Parties approval cannot be unreasonably
                                         withheld. This clause survives the termination of this Agreement.

 

		18.8	Except
                                         as required by any law or the rules of any stock exchange, or any applicable accounting
                                         standards or as ordered by a court or by a competent public authority or statutory authority,
                                         for the purpose of the performance of this Agreement, no Party shall disclose to any
                                         person or entity or otherwise publicise any commercially confidential information disclosed
                                         under or in connection with this Agreement without the prior written consent of the other
                                         Party. Such consent will not be required from the other Party where the information disclosed
                                         to a Party’s financiers and/or its legal advisers in connection with this Agreement,
                                         provided that those parties are under obligations with respect to the Buyer and/or the
                                         Seller to maintain confidentiality in relation this Agreement. This clause survives the
                                         termination of this Agreement.

 

    	21 

     

    

 

If
a Party is required to make an announcement or disclosure in respect this Agreement, it must to the extent possible:

 

		(a)	consult
                                         with the other Party with a view to agreeing the form, content, timing and manner of
                                         making the announcement or disclosure; and

		(b)	ensure
                                         that the announcement or disclosure includes only information that is required and does
                                         not include any information other than that required,

 

The
reviewing Party must act reasonably and respond in a timely manner to any request by the other Party to review such announcement.

Notwithstanding
the foregoing, this does not refer to information that any Party can prove: (i) was in the public domain at the time it was communicated
to the receiving Party; (ii) entered the public domain subsequent to the time it was communicated to the receiving Party through
no fault of its own; (iii) was in the possession not in violation of any obligation of confidentiality of the receiving Party
by the time it was communicated; or (iv) was disclosed to the receiving Party not in any violation of any obligation of confidentiality

 .

		19	Jurisdiction
                                         and Governing Law

 

		19.1	All
                                         disputes which may arise out of or in connection with this Agreement, including disputes
                                         concerning the validity of this Agreement, shall be finally settled under the Rules of
                                         Arbitration of the International Chamber of Commerce, Paris by one or more arbitrators
                                         appointed in accordance with the said Rules. The Emergency Arbitrator Provisions shall
                                         not apply. The arbitrational award shall be final and binding for both parties. The arbitration
                                         shall take place in Paris, France. 

 

		19.2	          The
                                         arbitration shall be held in English language.

 

		19.3	This
                                         Agreement shall in all respects be governed by and interpreted in accordance with the
                                         substantive laws of Switzerland. The provisions of the Convention for the International
                                         Sale of Goods (CISG) of April 11, 1980 shall be excluded.

 

		19.4	This
                                         Agreement may consist of a number of counterparts (including facsimile counterparts)
                                         and, if so, the counterparts taken together constitute one document.

 

    	22 

     

    

 

EXECUTED
as an agreement:

 

Date: November
10, 2014

 

	/s/
    Mark Smith	 	/s/
    Peter Dickie
	Signature	 	Signature
	 	 	 
	Mark
    A Smith	 	Peter
    E. Dickie
	Full name	 	Full name
	 	 	 
	Executive
    Chairman and CEO	 	President,
    Corporate Secretary
	Office held	 	Office Held
	 	 	 
	ThyssenKrupp Metallurgical Products
    GmbH
	 	 	 
	/s/ Joeog
    Glebe	 	/s/ Martin
    Polczyk
	Signature	 	Signature
	 	 	 
	Joeog
    Glebe	 	Martin
    Polczyk
	Full name	 	Full name
	 	 	 
	Managing
    Director / CFO	 	Head
    of Ferro Alloys
	Office held	 	Office Held

 

    	23 

     

    

 

Enclosure
1

List
of Independent Surveyors

  

Hoff
& Co. Services B.V.

Zwarte
Zee 100

NL-3144
De Maassluis

Tel.:
+31 10 5995959

Fax:
+31 10 5995955

 

Alfred
H. Knight International Ltd.

Ecdeston
Grange, Prescot Road,

St.
Helens, Merseyside, WA 10 3BQ / U.K.

Tel.:
+44 1744 733757

Fax:
+44 1744 762804

 

A.M.C.O.
united samplers and assayers GmbH

Buschstr.
95

47166
Duisburg

Fon:
+49 (0) 203-51 92 9-10

Fax:
+49 (0) 203-51 92 9-29Exhibit
10.9 

 

July
13, 2016

 

NioCorp
Developments Ltd.

7000
South Yosemite Street, Suite115

Centennial, CO 80112

 

Attention:
John F. Ashburn Jr., Vice President & General Counsel

 

Dear
Sirs/Mesdames:

 

		Re:	Amending
                                         Agreement - 

                                         Loan Agreement between NioCorp Developments Ltd. and
                                         Mark Smith

 

Pursuant
to a loan agreement between NioCorp Developments Ltd. (the “Borrower”) and Mark Smith (the “Lender”) dated
June 17th, 2015 (the “Loan Agreement”), the Lender advanced a loan to the Borrower on the terms and conditions
set out therein.

 

The
Borrower and the Lender wish to amend the Loan Agreement in the manner set forth herein.

 

INTERPRETATION

 

All
words and expressions defined in the Loan Agreement have the same meaning when used herein. Reference to the Loan Agreement includes
amendments thereto from time to time, including the amendments made by this amending agreement. All references herein to sections
of or schedules to an agreement other than this amending agreement are to sections of and schedules to the Loan Agreement, unless
otherwise expressly stated. Clause headings are for reference only.

 

EFFECTIVE
DATE

 

The
provisions of the Loan Agreement are amended as set out in this amending agreement effective as of June 16th, 2016,
notwithstanding the actual date of execution of this amending agreement.

 

AMENDMENTS

 

		1.	Section
                                         1.1(h) of the Loan Agreement shall be deleted and
                                         replaced in its entirety with the following new Section 1.1(h):

 

“Term”
means a period commencing on the Effective Date, being the date the Lender advanced the Principal to the Borrower, and expiring
two years following the Effective Date.

 

     

     

    

 

–
2 –

 

MISCELLANEOUS

 

With
the exception of the foregoing amendments, the Loan Agreement and general security agreement executed in connection therewith
continue in full force and effect unamended.

 

This
amending agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered
(including by facsimile transmission or as a pdf attachment to an e-mail) shall constitute an original, but all such counterparts
when taken together shall constitute one and the same instrument.

 

Please
indicate your acceptance of this amending agreement by signing and returning the enclosed duplicate copy of this letter.

 

Yours
truly,

MARK A. SMITH

 

	/s/
    Mark A. Smith          	 

 

 

Accepted
as of the 19th day of July, 2016.

 

NIOCORP
dEVELOPMENTS lTD.

 

	By:	/s/ John F. Ashburn Jr                  
	 	Name: John F. Ashburn
    Jr.
	 	Title:   Vice President & General Counsel

 

     

     

    

 

LOAN AGREEMENT

 

THIS AGREEMENT made as of the 17th
day of June, 2015 between NioCorp Developments Ltd., a corporation incorporated under the laws of British Columbia
with an office at 7000 South Yosemite Street, Suite 115, Centennial, CO, USA 80112 (the “Borrower”) and Mark
Smith, businessman of Highlands Ranch, CO, USA 80126 (the “Lender”).

 

WHEREAS:

 

A.       The Lender
has agreed to make the Loan (as defined herein) available to the Borrower for the Borrower’s general working capital
purposes; and

 

B.       The Borrower has
agreed to repay the Loan to the Lender on the terms and conditions set forth in this Agreement.

 

NOW THEREFORE THIS AGREEMENT WITNESSES that, in consideration
of the mutual covenants and agreements herein contained, the parties agree as follows:

 

		1.	INTERPRETATION

 

		1.1.	Definitions

 

In this Agreement:

 

(a)       “Business
Day” means any day except Saturday, Sunday, or a day that is a statutory holiday in Colorado;

 

(b)       “Due Date”
has the meaning given to that term in Subsection 2.6 of this Agreement;

 

(c)       “Effective
Date” means June 17th, 2015;

 

(d)       “Establishment
Fee “ means the amount of $37,500, payable by the Borrower to the Lender in consideration of the advancement of the Principal;

 

(e)       “General
Security Agreement” has the meaning given to that term in Subsection 2.2 of this Agreement;

 

(f)       “Loan”
means the advance by the Lender to the Borrower of the Principal, together with interest thereupon as set out in Subsection 2.5
of this Agreement;

 

(g)       “Principal”
means the principal amount of the Loan of $1,500,000 made hereunder; and

 

(h)       “Term”
means a period commencing on the Effective Date, being the date the Lender advanced the Principal to the Borrower, and expiring
one year following the Effective Date.

 

		1.2.	Governing
                                         Law

 

This Agreement will be governed by and construed in accordance
with the laws of British Columbia and the parties attorn to the jurisdiction of the Courts of the Province of British Columbia.

 

		1.3.	Severability

 

If any provision of this Agreement is determined
to be void or unenforceable in whole or in part, that provision will be deemed not to affect or impair the validity of any other
provision of this Agreement and the void or unenforceable provision will be severable from this Agreement.

 

     

     

    

 

1

 

		1.4.	Headings

 

The headings to the sections of this Agreement are inserted
for convenience only and will not affect the construction of this Agreement.

 

		1.5.	Cross
                                         References

 

Unless otherwise stated, a reference in this Agreement to a
numbered or lettered section or subsection refers to the section or subsection of each part bearing that number or letter in this
Agreement.

 

		1.6.	Currency

 

All dollar amounts stated in this Agreement mean lawful money
of the United States of America.

 

		1.7.	Schedules

 

The following schedules are incorporated by reference to this
Agreement and form a part of it:

 

		Schedule	Description

 

		A	General Security Agreement

 

		2.	AMOUNT AND TERMS OF LOAN

 

		2.1.	Advance
                                         of Loan

 

The Lender agrees to advance the Principal to the Borrower,
and the Borrower hereby irrevocably authorizes and directs the Lender to advance the Principal on the Effective Date.

 

		2.2.	Security

 

The Loan will be secured by a General Security
Agreement (the “General Security Agreement”), in the form attached as Schedule “A”, over all of
the present and after-acquired property of the Borrower, including all of the assets, and undertakings (other than real property),
of whatever nature or kind and wheresoever situate and all proceeds thereof, which the Borrower will provide to the Lender as security
for the repayment of the Loan and interest, if any outstanding, thereon.

 

		2.3.	Registration

 

The General Security Agreement will be
registered by the Lender in all jurisdictions and at all registries or public offices as the Lender may determine necessary or
beneficial to perfect or protect its interest under the General Security Agreement.

 

		2.4.	Discharge

 

Once the Borrower has satisfied all of
its obligations under this Agreement, and the General Security Agreement has been terminated, the Lender will promptly discharge
all charges and liens under the General Security Agreement and execute and deliver to the Borrower such other receipts, acknowledgements
and other instruments as may be reasonably required to evidence the discharge of such charges and liens.

 

     

     

    

 

2

 

		2.5.	Interest

 

The Borrower will pay interest to the Lender
on the amount of Principal outstanding and on overdue interest at a rate equal to 10% per annum, calculated monthly in arrears,
through to the date of repayment of the Loan. Interest on the Loan will be computed on the basis of a 360-day year comprised of
twelve 30-day months.

 

		2.6.	Due Date
                                         of Loan

 

Any outstanding balance of the Loan, including accrued interest,
shall be immediately due and payable by the Borrower to the Lender on the earlier of:

 

(a)       the expiry of the
Term; or

 

(b)      the occurrence
of an Event of Default, as defined in Section 7 hereof,

 

(the
“Due Date”).

 

		2.7.	Application
                                         of Payments

 

All payments under the Loan will be applied
first in payment of interest accrued to the date of payment and secondly in payment of outstanding Principal. Any amount of Principal
repaid by the Borrower prior to the Due Date will be subject to an early payment fee of 2.5% of the value of any such payment.

 

		2.8.	Termination
                                         Fee

 

In the event this Agreement is terminated
by mutual consent of the parties at any time prior to the advance of the Principal to the Borrower by the Lender, the Borrower
shall pay to the Lender the amount of $15,000, in consideration of the Lender making the Principal available to the Borrower.

 

		3.	CONDITIONS PRECEDENT

 

3.1       The obligations of the Lender under this Agreement are subject to the following conditions being satisfied on the Effective Date:

 

(a)       receipt by the
Lender of the Establishment Fee;

 

(b)       receipt
by the Lender of the General Security Agreement, duly executed by the Borrower in favour of the Lender;

 

(c)       the representations
and warranties of the Borrower contained in this Agreement being true and correct as at the Effective Date; and

 

(d)       any required approvals
of this Agreement having been obtained.

 

3.2       The obligations
of the Borrower under this Agreement are subject to the following conditions being satisfied on the Effective Date:

 

(a)       the representations
and warranties of the Lender contained in this Agreement being true and correct as at the Effective Date; and

 

(b)       all required approvals
of this Agreement having been obtained.

 

     

     

    

 

3

 

	4.	BORROWER’S REPRESENTATIONS AND WARRANTIES

 

	4.1.	The Borrower represents and warrants to the Lender
that:

 

(a)         it is a valid and
subsisting corporation incorporated and in good standing under the laws of British Columbia;

 

(b)         the
entering into of this Agreement and the transactions contemplated hereby will not result in the violation of any of the terms and
provisions of any law applicable to the Borrower, or of any agreement, written or oral, to which the Borrower may be a part or
by which it is or may be bound;

 

(c)         the
Borrower has duly signed and delivered this Agreement and this Agreement constitutes a legal, valid, and binding agreement of the
Borrower enforceable against the Borrower in accordance with its terms; and

 

(d)         the Borrower has
the necessary power, capacity, right and authority to enter into and deliver this Agreement and to perform its obligations hereunder.

 

4.2.       All
representations, warranties, covenants, and agreements made by the Borrower in this Agreement are deemed to have been relied on
by the Lender despite any prior or subsequent investigation by the Lender and will survive the advance of the Loan and continue
in full force and effect so long as any amount of the Loan remains outstanding and unpaid.

 

	5.	LENDER’S REPRESENTATIONS AND WARRANTIES

 

		5.1.	The Lender represents and warrants to the Borrower
that:

 

(a)         the
entering into of this Agreement and the transactions contemplated hereby will not result in the violation of any of the terms and
provisions of any law applicable to the Lender, or of any agreement, written or oral, to which the Lender may be a part or by which
he is or may be bound;

 

(b)         the
Lender has duly signed and delivered this Agreement and this Agreement constitutes a legal, valid, and binding agreement of the
Lender enforceable against the Lender in accordance with its terms; and

 

(c)         the Lender has
the necessary power, capacity, right and authority to enter into and deliver this Agreement and to perform his obligations hereunder.

 

5.2        All representations, warranties, covenants, and agreements made by the Lender in this Agreement are deemed to have been relied
on by the Borrower despite any prior or subsequent investigation by the Borrower and will survive the advance of the Loan and
continue in full force and effect so long as any amount of the Loan remains outstanding and unpaid.

 

		6.	COVENANTS OF BORROWER

 

		6.1.	The Borrower covenants and agrees that so long as
any monies are outstanding under the Loan, it will:

 

(a)         repay, or cause
to be repaid, the Loan and all other monies required to be paid to the Lender in accordance with this Agreement; and

 

(b)         duly observe and
perform all covenants and agreements set forth in this Agreement.

 

     

     

    

 

4

 

		7.	DEFAULT

 

7.1.        The Principal amount of the Loan outstanding, plus all interest, costs and all other money owing to the Lender under this Agreement
shall immediately become payable upon demand by the Lender, unless otherwise waived in writing by the Lender, in any of the following
events (each an “Event of Default”):

 

(a)         if
the Borrower shall default in any payment of Principal, interest or other amount when the same is required hereunder and such default
has continued for a period of seven (7) days after notice in writing has been given by the Lender to the Borrower specifying such
default;

 

(b)         if
the Borrower shall become insolvent or shall make a general assignment for the benefit of its creditors, or if an order be made
or an effective resolution be passed for the winding-up, merger or amalgamation of the Borrower or if the Borrower shall be declared
bankrupt or if a custodian or receiver be appointed for the Borrower under the Bankruptcy and Insolvency Act (Canada), or
if a compromise or arrangement is proposed by the Borrower to its creditors or any class of its creditors, or if a receiver or
other officer with like powers shall be appointed for the Borrower; or

 

(c)         if
the Borrower defaults in observing or performing any other covenant or agreement of this Agreement on its part to be observed or
performed and such default has continued for a period of seven (7) days after notice in writing has been given by the Lender to
the Borrower specifying such default.

 

		8.	MISCELLANEOUS

 

		8.1.	Waiver
                                         or Modification

 

No failure or delay on the Lender’s
part in exercising any power or right hereunder will operate as a waiver thereof nor will any single or partial exercise of that
right or power preclude any other right or power under this Agreement. No amendment, modification, or waiver of any condition of
this Agreement or consent to any departure by the Borrower therefrom will be effective unless it is in writing signed by the Lender.
No notice to or demand on the Borrower will entitle the Borrower to any other or further notice or demand in similar or other circumstances
unless specifically provided for in this Agreement.

 

		8.2.	Amendments
                                         and Further Documents

 

The parties may not amend this Agreement
except by document in writing signed by both parties, and the parties will sign any other documents and do any other things necessary
to carry out the intent of this Agreement.

 

		8.3.	Assignment

 

Neither party may assign this Agreement or any interest herein
without the prior written consent of the other, which consent may be arbitrarily withheld.

 

		8.4.	Time of
                                         the Essence

 

 Time is of the essence of this Agreement.

 

		8.5.	Enurement

 

This Agreement will be binding on and enure to the benefit of
the Borrower, the Lender, and their respective heirs, executors, administrators, successors, and permitted assigns.

 

     

     

    

 

5

 

		8.6.	Independent
                                         Legal Advice

 

The Lender acknowledges that Boughton Law
Corporation is the solicitor of the Borrower only and is not protecting the rights or interests of the Lender. The Lender acknowledges
and agrees that the Borrower and Boughton Law Corporation have given the Lender adequate opportunity to seek, and have recommended
that the Lender seek and obtain, independent legal advice with respect to the subject matter of this Agreement and for the purpose
of ensuring his rights and interests are protected. The Lender represents and warrants to the Borrower and to Boughton Law Corporation
that the Lender has sought independent legal advice or consciously chosen not to do so with full knowledge of the risks associated
with not obtaining such independent legal advice. The Lender acknowledges that he has read and understood this provision of this
Agreement and indicates so by signing this Agreement.

 

IN WITNESS WHEREOF the parties have signed this Agreement
as of the date on page 1 of this Agreement.

 

	NIOCORP DEVELOPMENTS LTD.	 
	 	 	 
	Per: 	/s/ John Ashburn	 
		Authorized Signatory	 

 

	Signed, sealed and delivered by	 	)	 	 
	MARK SMITH in the presence of:	 	)	 	 
	 	 	)	 	 
	Cathy J. Savoie	 	)	 	 
	Name	 	)	 	 
	 	 	)	 	 
	7000 S Yosemite St 3115	 	)	/s/ Mark A Smith	 
	Address	 	)	MARK SMITH	 
	 	 	)	 	 
	Centennial, CO 80112	 	)	 	 
	 	 	)	 	 
	 	 	)	 	 
	Exec Admin	 	)	 	 
	Occupation	 	 	 	 

 

     

     

    

 

6

 

SCHEDULE “A”

 

GENERAL SECURITY
AGREEMENT

 

     

     

    

 

7

 

THIS SECURITY AGREEMENT made June 17, 2015.

 

FROM:

 

NIOCORP DEVELOPMENTS LTD., a corporation
incorporated under the laws of British Columbia with an office at 7000 South Yosemite Street, Suite 115, Centennial, CO, USA 80112

 

(the “Debtor”)

 

TO:

 

MARK SMITH, businessman of Highlands Ranch, CO,
USA 80126

 

(the “Secured Party”)

 

FOR VALUE RECEIVED, the Debtor covenants, agrees, warrants,
represents, acknowledges, and confirms to and with the Secured Party and creates and grants the mortgages, charges, transfers,
assignments, and security interests as follows:

 

		1.	Security Interest

 

As security for the payment and performance of the Obligations
(as defined in paragraph 3), the Debtor, subject to the exceptions set out in paragraph 2, does:

 

1.1        Grant
to the Secured Party a security interest in, and mortgages, charges, transfers and assigns absolutely, all of the Debtor’s present
and after acquired personal property, and all personal property in which the Debtor has rights, of whatever nature or kind and
wherever situate, including, without limitation, all of the following now owned or in future owned or acquired by or on behalf
of the Debtor:

 

		(a)	all goods, including:

 

		(i)	all inventory of whatever kind and wherever situate,
including, without limitation, goods acquired or held for sale or lease or furnished or to be furnished under contracts of rental
or service, all raw materials, work in progress, finished goods, returned goods, repossessed goods, and all packaging materials,
supplies, and containers relating to or used or consumed in connection with any of the foregoing (collectively the “Inventory”);

 

		(ii)	all equipment of whatever kind and wherever situate,
including, without limitation, all machinery, tools, apparatus, plant, fixtures, furniture, furnishings, chattels, motor vehicles,
vessels, and other tangible personal property of whatever nature or kind (collectively the “Equipment”);

 

		(b)	all book accounts and book debts and generally all accounts,
debts, dues, claims, choses in action, and demands of every nature and kind however arising or secured including letters of credit
and advices of credit, which are now due, owing, or accruing, or growing due to, or owned by, or which may in future become due,
owing, or accruing, or growing due to, or owned by the Debtor (the “Accounts”);

 

		(c)	all contractual rights, insurance claims, licences, goodwill,
patents, trademarks, trade names, copyrights, and other industrial or intellectual property of the Debtor or in which the Debtor
has an interest, all other choses in action of the Debtor of every kind which now are, or which may in future be, due or owing
to or owned by the Debtor, and all other intangible property of the Debtor which is not Accounts, Chattel Paper, Instruments,
Documents of Title, Investment Property, or Money;

 

     

     

    

 

8

 

		(d)	all Money;

 

		(e)	all property described in any Schedule (excluding Schedule
“A”) now or at any time in future annexed to this Agreement or agreed to form part of this Agreement;

 

		(f)	the undertaking of the Debtor;

 

		(g)	all Chattel Paper, Documents of Title (whether negotiable
or not), Instruments, Intangibles, and Investment Property now owned or in future owned or acquired by or on behalf of the Debtor
(including those returned to or repossessed by the Debtor) and all other goods of the Debtor that are not Equipment, Inventory,
or Accounts;

 

		(h)	all proceeds, renewals, and accretions, and substitutions
of any of the foregoing; and

 

		(i)	all deeds, documents, writings, papers, books of account,
and other books and electronically recorded data relating to any of the foregoing or by which any of the foregoing is or may in
future be secured, evidenced, acknowledged, or made payable.

 

1.2       Charge as and by
way of a floating charge to and in favour of the Secured Party, and grant to the Secured Party a security interest, mortgage, and
charge in and to:

 

		(a)	all the Debtor’s right, title, and interest in and to
all its presently owned or held and after acquired or held real, immovable, and leasehold property and all interests therein,
and all easements, rights-of-way, privileges, benefits, licences, improvements, and rights whether connected therewith or appurtenant
thereto or separately owned or held, including all structures, plant, and other fixtures (collectively “Real Property”);
and

 

		(b)	all property, assets, and undertakings of the Debtor,
both present and future, of whatever nature or kind and wherever situate, and all Proceeds thereof and therefrom,

 

other than any of its property, assets,
and undertakings otherwise validly and effectively subject to the charges and security interests in favour of the Secured Party
created under paragraph 1.1 of this Agreement. This charge attaches immediately upon the Debtor acquiring any rights in any of
that property.

 

1.3        Mortgage
and charge as and by way of a fixed and specific charge to and in favour of the Secured Party, and assign and transfer to the Secured
Party and grant to the Secured Party, by way of mortgage, charge, assignment, and transfer, a security interest in all of the Debtor’s
right, title, and interest, both present and future, in and to all of its presently owned or held and after acquired or held property
which:

 

(a)         is or
in future becomes a fixture, or

 

(b)         constitutes
a licence, quota, permit or other similar right or benefit, or crops.

 

1.4       The
mortgages, charges, assignments, transfers, and security interests created or granted under paragraphs 1.1, 1.2, and 1.3 of this
Agreement are collectively called the “Security Interest”, and all property, assets, interests, and undertakings (including
Proceeds) subject to the Security Interest or otherwise charged or secured by this Agreement or expressed to be charged, assigned
or transferred, or secured by any instruments supplemental to this Agreement or in implementation of this Agreement are collectively
called the “Collateral”.

 

     

     

    

 

9

 

		2.	Exceptions and Definitions

 

The Security Interest granted by this Agreement
shall not extend or apply to and the Collateral shall not extend to the last day of the term of any lease or agreement to lease
real property, but upon the enforcement of the Security Interest the Debtor shall stand possessed of such last day in trust to
assign and dispose thereof as the Secured Party shall direct.

 

The terms “Chattel Paper”, “Document
of Title”, “Equipment”, “Consumer Goods”, “Instrument”, “Intangible”, “Investment
Property”, “Proceeds”, “Inventory”, “Accessions”, “Money”, “financing statement”,
“financing change statement”, “verification statement” and “control” shall, unless otherwise defined
in this Agreement or otherwise required by the context, be interpreted according to their respective meanings as set out in the
British Columbia Personal Property Security Act, as amended.

 

Any reference in this Agreement to “Collateral”
shall, unless the context otherwise requires, be deemed a reference to “Collateral or any part thereof”. The Collateral
shall not include consumer goods of the Debtor.

 

The term “Proceeds”, whenever
used and interpreted as above, shall by way of example include trade-ins, equipment, cash, bank accounts, notes, chattel paper,
goods, contract rights, accounts, and any other personal property or obligation received when such collateral or proceeds are sold,
exchanged, collected, or otherwise disposed of. The term “licence” means any licence or similar right at any time owned
or held by the Debtor including without limitation a “licence” as defined in the Act, and the meaning of the term “crops”
whenever used in this Agreement includes but is not limited to “crops” as defined in the Act.

 

		3.	Obligations Secured

 

This Agreement and the Security Interest
are in addition to and not in substitution for any other security interest now or in future held by the Secured Party from the
Debtor or from any other person and shall be general and continuing security for the payment of all indebtedness and liability
of the Debtor to the Secured Party (including interest thereon), present or future, absolute or contingent, joint or several, direct
or indirect, matured or not, extended or renewed, wherever and however incurred, and any ultimate balance thereof, including all
advances on current or running account and all future advances and re-advances, and whether the same is from time to time reduced
and thereafter increased or entirely extinguished and thereafter incurred again, and whether the Debtor be bound alone or with
another or others, and whether as principal or surety, and for the performance and satisfaction of all obligations of the Debtor
to the Secured Party, whether or not contained in this Agreement, and whether the Debtor be bound alone or with another or others
(all of which indebtedness, liability, and obligations are collectively the “Obligations”).

 

		4.	Prohibitions

 

Without the prior written consent of the Secured Party, the
Debtor shall not and shall not have power to:

 

		(a)	grant, create, or permit to be created any security interest
in, charge, encumbrance, or lien over, or claim against any of its property, assets, or undertakings that rank or could rank in
priority to or pari passu with the Security Interest;

 

		(b)	grant, sell, or otherwise assign its Chattel Paper; or

 

		(c)	issue or have outstanding at any time any secured or
unsecured bonds, debentures, debenture stock, or other evidences of indebtedness of the Debtor or of any predecessor in title
of the Debtor issued under a trust deed or other instrument running in favour of a trustee.

 

     

     

    

 

10

 

		5.	Attachment

 

The Debtor acknowledges and confirms that:

 

		(a)	there is no intention to delay the time of attachment
of the Security Interest created by this Agreement, and the Security Interest shall attach at the earliest time permissible under
the laws governing this Agreement;

 

		(b)	that value has been given; and

 

		(c)	that the Debtor has (or in the case of any after acquired
property, will have at the time of acquisition) rights in the Collateral.

 

		6.	Representations and Warranties

 

		6.1	The Debtor represents and warrants to the Secured Party
that:

 

		(a)	if the Debtor is a company or a partnership, this Agreement
is granted in accordance with resolutions of the directors (and of the shareholders as applicable) or of the partners, as the
case may be, of the Debtor, and that all other matters and things have been done and performed so as to authorize and make the
execution and delivery of this Agreement, and the performance of the Debtor’s obligations hereunder, legal, valid, and binding;

 

		(b)	the Debtor lawfully owns and possesses all presently
held Collateral and has good title thereto, free from all security interests, charges, encumbrances, liens, and claims, save only
the charges or security interests, if any, shown in any schedule to this Agreement and those consented to in writing by the Secured
Party, and the Debtor has good right and lawful authority to grant a security interest in the Collateral as provided by this Agreement;

 

		(c)	where the Collateral includes Accounts, Chattel Paper,
or Instruments, each is enforceable in accordance with its terms against the party obligated thereunder, and that the Debtor has
fully and accurately disclosed to the Secured Party the amount owing thereunder and any other relevant information concerning
liability for payment thereunder;

 

		(d)	where the Collateral includes investment property, the
Debtor has not given control of the investment property to any person;

 

		(e)	for goods constituting Collateral, the Debtor has in
this Agreement or elsewhere fully and accurately disclosed to the Secured Party the locations thereof and of the business operations
and records of the Debtor.

 

6.2       All
representations and warranties given by the Debtor under a loan agreement (the “Loan Agreement”) between the Secured
Party and the Debtor dated June 17, 2015 shall form representations and warranties of this Agreement and this Agreement shall be
read and construed to include such representations and warranties.

 

		7.	Covenants of the Debtor

 

7.1       The Debtor covenants
with the Secured Party that at all times while this Agreement remains in effect the Debtor shall:

 

		(a)	defend the title to the Collateral for the benefit of
the Secured Party against the claims and demands of all persons;

 

     

     

    

 

11

 

		(b)	fully and effectually maintain and keep maintained the
validity and effectiveness of the Security Interest;

 

		(c)	maintain the Collateral in good order and repair;

 

		(d)	forthwith pay:

 

		(i)	all taxes, assessments, rates, duties, levies, government
fees, claims, dues and other charges of every nature that may be lawfully levied, assessed, or imposed upon it or the Collateral
when due, unless the Debtor shall in good faith contest its obligations so to pay and shall furnish such security as the Secured
Party may require; and

 

		(ii)	all security interests, charges, encumbrances, liens
and claims that rank or could in any event rank in priority to the Security Interest, other than the charges or security interests,
if any, shown in any Schedule to this Agreement and those consented to in writing by the Secured Party;

 

		(e)	forthwith reimburse and indemnify the Secured Party for
all costs, charges, expenses, and legal fees and disbursements that may be incurred by the Secured Party in:

 

		(i)	inspecting the Collateral;

 

		(ii)	negotiating, preparing, perfecting, and registering this
Agreement or notice of it and other documents, whether or not relating to this Agreement;

 

		(iii)	investigating title to the Collateral;

 

		(iv)	taking, recovering, keeping possession of, and insuring
the Collateral; and

 

		(v)	all other actions and proceedings taken in connection
with the preservation of the Collateral and the enforcement of this Agreement and of any other Security Interest held by the Secured
Party as security for the Obligations;

 

		(f)	at the Secured Party’s request at any time and from time
to time, execute and deliver such further and other documents and instruments and do all acts and things as the Secured Party
in its absolute discretion requires in order to confirm and perfect, and maintain perfection of, the Security Interest in favour
of the Secured Party upon any of the Collateral;

 

		(g)	notify the Secured Party promptly of

 

		(i)	any change in the information contained in this Agreement
relating to the Debtor, its address, its business, or the Collateral, including without limitation any change of name or address
of the Debtor and any change in location of any Collateral;

 

		(ii)	the details of any material acquisition of Collateral;

 

		(iii)	any material loss or damage to the Collateral;

 

		(iv)	any material default by any account debtor in payment
or other performance of his or her obligations to the Debtor with respect to any Accounts;

 

     

     

    

 

12

 

		(v)	the return to or repossession by the Debtor of the Collateral
where such return or repossession of the Collateral is material in relation to the business of the Debtor; and

 

		(vi)	the details of any claims or litigation affecting the
Debtor or the Collateral;

 

		(h)	prevent the Collateral, other than Inventory sold, leased,
or otherwise disposed of as permitted by this Agreement, from being or becoming an accession to other property not covered by
this Agreement;

 

		(i)	permit the Secured Party and its representatives, at
all reasonable times, access to all its property, assets, and undertakings and to all its books of account and records for the
purpose of inspection, and render all assistance necessary for such inspection; and

 

		(j)	deliver to the Secured Party from time to time promptly
upon request:

 

		(i)	any Documents of Title, Instruments, certificated Securities,
and Chattel Paper constituting, representing, or relating to Collateral;

 

		(ii)	all books of account and all records, ledgers, reports,
correspondence, schedules, documents, statements, lists, and other writings relating to the Collateral for the purpose of inspecting,
auditing, or copying;

 

		(iii)	account control agreements in respect of Investment Property,
in form and substance satisfactory to the Secured Party;

 

		(iv)	all financial statements prepared by or for the Debtor
regarding the Debtor’s business;

 

		(v)	all policies and certificates of insurance relating to
the Collateral; and

 

		(vi)	any information concerning the Collateral, the Debtor,
and the Debtor’s business and affairs as the Secured Party may reasonably require;

 

		(k)	carry on and conduct the business of the Debtor in a
proper and efficient manner and so as to protect and preserve the Collateral and to keep, in accordance with generally accepted
accounting principles, consistently applied, proper books of account for the Debtor’s business as well as accurate and complete
records concerning the Collateral;

 

		(l)	where the Collateral is Investment Property, shall prevent
any party other than the Secured Party from having control;

 

		(m)	observe and perform the additional covenants, if any,
set out in any schedule attached to this Agreement.

 

7.2
        The Debtor covenants that at all times while this Agreement remains in effect, without the prior written consent of the Secured
Party, it shall not

 

		(a)	declare or pay any dividends;

 

		(b)	purchase or redeem any of its shares or otherwise reduce
its share capital;

 

		(c)	become guarantor of any obligation; or

 

		(d)	become an endorser of any obligation or otherwise become
liable upon any note or other obligation other than bills of exchange deposited to any bank accounts of the Debtor.

 

     

     

    

 

13

 

		7.3	   Except as provided in this Agreement, without the prior
written consent of the Secured Party, the Debtor shall not

 

		(a)	sell, lease, or otherwise dispose of the Collateral;

 

		(b)	release, surrender, or abandon possession of the Collateral;
or

 

		(c)	move or transfer the Collateral from the jurisdiction
or jurisdictions in which the Security Interest has been perfected.

 

7.4
      Provided that the Debtor is not in default under this Agreement, at any time without the consent of the Secured Party the Debtor
may lease, sell, license, consign, or otherwise deal with items of Inventory in the ordinary course of its business and for the
purposes of carrying on its business.

 

7.5      
The Debtor covenants that to the extent that any monies, credit, or other consideration provided by the Secured Party has enabled
the Debtor to purchase or acquire rights in any personal property or assets, the Security Interest is and shall remain a purchase
money security interest.

 

		8.	Insurance

 

		8.1	The Debtor covenants that at all times while this Agreement
is in effect the Debtor shall:

 

		(a)	maintain or cause to be maintained insurance on the Collateral
with an insurer, of kinds, for amounts and payable to such person or persons, all as the Secured Party may require, and in particular
but without limitation maintain insurance on the Collateral to its full insurable value against loss or damage by fire including
extended coverage endorsement, and in the case of motor vehicles and other mobile Collateral, maintain insurance against theft;

 

		(b)	cause the insurance policy or policies required under
this Agreement to be assigned to the Secured Party and have as part thereof a standard mortgage clause or a mortgage endorsement,
as appropriate; and

 

		(c)	pay all premiums in connection with such insurance, and
deliver all such policies to the Secured Party, if it so requires.

 

8.2       If
proceeds of any insurance required under this Agreement become payable, the Secured Party may, in its absolute discretion, apply
those proceeds to such part or parts of the Obligations as the Secured Party may see fit, or the Secured Party may release any
such insurance proceeds to the Debtor for the purpose of repairing, replacing, or rebuilding, but any release of insurance proceeds
to the Debtor shall not operate as a payment on account of the Obligations or in any way affect this Agreement.

 

8.3       The
Debtor shall forthwith, on the happening of loss or damage to the Collateral, notify the Secured Party thereof and furnish to the
Secured Party at the Debtor’s expense any necessary proof and do any necessary act to enable the Secured Party to obtain payment
of the insurance proceeds, but nothing contained in this Agreement shall limit the Secured Party’s right to submit to the insurer
a proof of loss on its own behalf.

 

8.4       The
Debtor irrevocably authorizes and directs the insurer under any policy of insurance required under this Agreement to include the
name of the Secured Party as a loss payee on any cheque or draft that may be issued with respect to a claim under and by virtue
of such insurance, and the production by the Secured Party to any insurer of a certified copy of this Agreement shall be its full
and complete authority for so doing.

 

     

     

    

 

14

 

8.5       If
the Debtor fails to maintain insurance as required by this Agreement, the Secured Party may, but shall not be obliged to, maintain
or effect such insurance coverage, or so much thereof as the Secured Party considers necessary for its protection.

 

		9.	Use and Verification of Collateral

 

Subject to compliance with the Debtor’s
covenants contained in this Agreement and compliance with paragraph 11 of this Agreement, the Debtor may, until default, possess,
operate, collect, use and enjoy, and deal with the Collateral in the ordinary course of the Debtor’s business in any manner not
inconsistent with the provisions of this Agreement; provided always that the Secured Party shall have the right at any time and
from time to time to verify the existence and state of the Collateral in any manner the Secured Party may consider appropriate.
The Debtor agrees to furnish all assistance and information and to perform all such acts as the Secured Party may reasonably request
in connection therewith, and for such purpose to grant to the Secured Party or its agents access to all places where the Collateral
may be located and to all premises occupied by the Debtor.

 

10.       Investment Property

 

If Collateral at any time includes Investment
Property, the Debtor authorizes the Secured Party to transfer the same or any part of it into its own name or that of its nominee(s)
so that the Secured Party or its nominee(s) may appear on record as the sole owner of it; or has sole rights to it, as applicable;
provided that, until default, the Secured Party shall deliver promptly to the Debtor all notices or other communications received
by it or its nominee(s) as such registered owner and, upon demand and receipt of payment of any necessary expenses thereof, shall
issue to the Debtor or its order a proxy to vote and take all action with respect to such Investment Property. After default, the
Debtor waives all rights to receive any notices or communications received by the Secured Party or its nominee(s) as such registered
owner and agrees that no proxy issued by the Secured Party to the Debtor or its order as aforesaid shall thereafter be effective.

 

11.       Collection of
Debts

 

Before or after default under this Agreement,
without notice to the Debtor, the Secured Party may notify all or any account debtors of the Debtor of the Security Interest and
may also direct such account debtors to make all payments on Collateral to the Secured Party. The Debtor acknowledges that any
payments on or other proceeds of Collateral received by the Debtor from account debtors, whether before or after notification of
this Security Interest to account debtors, and whether before or after default under this Agreement, shall be received and held
by the Debtor in trust for the Secured Party and shall be turned over to the Secured Party upon request. This includes interest
on deferred payment contracts, and the payments themselves, and lease payments, if any.

 

12.       Income from
and Interest on Collateral

 

12.1     Until default, the Debtor reserves
the right to receive any money constituting income from or interest on Collateral and if the Secured Party receives any such money
before default, the Secured Party shall either credit that money against the Obligations or pay it promptly to the Debtor.

 

12.2     After default, the Debtor shall not
request or receive any money constituting income from or interest on Collateral and if the Debtor receives any such money in any
event, the Debtor shall hold that money in trust for the Secured Party and shall pay it promptly to the Secured Party.

 

     

     

    

 

15

 

13.       Increases, Profits,
Payments, or Distributions

 

13.1     Whether or not default has occurred, the Debtor authorizes
the Secured Party

 

		(a)	to receive any increase in or profits on the Collateral
(other than money) and to hold the same as part of the Collateral. Money so received shall be treated as income for the purposes
of paragraph 12 of this Agreement and dealt with accordingly, and

 

		(b)	to receive any payment or distribution upon redemption
or retirement or upon dissolution and liquidation of the issuer of Collateral; to surrender such Collateral in exchange therefor;
and to hold any such payment or distribution as part of Collateral.

 

13.2     If the Debtor receives any such increase
or profits (other than money) or payments or distributions, the Debtor shall deliver the same promptly to the Secured Party to
be held by the Secured Party as provided in this Agreement.

 

14.       Disposition
of Monies

 

Subject to any applicable requirements
of the Act, all monies collected or received by the Secured Party under or in exercise of any right it possesses with respect to
Collateral shall be applied on account of the Obligations in such manner as the Secured Party deems best or, at the option of the
Secured Party, may be held unappropriated in a collateral account or released to the Debtor, all without prejudice to the liability
of the Debtor or the rights of the Secured Party under this Agreement, and any surplus shall be accounted for as required by law.

 

15.       Performance
of Obligations

 

If the Debtor fails to perform any of its
obligations under this Agreement, the Secured Party may, but shall not be obliged to, perform any or all of those obligations without
prejudice to any other rights and remedies of the Secured Party under this Agreement, and any payments made and any costs, charges,
expenses, and legal fees and disbursements (on a solicitor and own client basis) incurred in connection therewith shall be payable
by the Debtor to the Secured Party forthwith with interest until paid at the highest rate borne by any of the Obligations and such
amounts shall be secured by this Agreement and rank prior to all claims subsequent to this Agreement.

 

16.       Default

 

16.1 Unless waived by the Secured Party, it shall be an event
of default (“default”) under this Agreement and the security constituted by this Agreement shall immediately become enforceable
if:

 

		(a)	any term, covenant, or representation of this Agreement
is breached or if default occurs under the Loan Agreement, if any; or

 

		(b)	any amount owed to the Secured Party is not paid when
due; or

 

		(c)	the Debtor defaults or threatens to default in payment
when due or performance of any of the Obligations; or

 

		(d)	the Debtor or any guarantor of the Debtor declares itself
to be insolvent, makes an assignment for the benefit of its creditors, is declared bankrupt, declares bankruptcy, makes a proposal,
or otherwise takes advantage of provisions under the Bankruptcy and Insolvency Act, the Companies Creditors’ Arrangement
Act, or similar legislation in any jurisdiction, or fails to pay its debts generally as they become due; or

 

		(e)	a receiver or receiver-manager is appointed; or

 

     

     

    

 

16

 

		(f)	the Debtor ceases to carry on all or a substantial part
of its business; or

 

		(g)	distress, execution, or seizure of any of the Collateral
occurs; or

 

		(h)	if the Debtor is a corporation, there is a change of
voting control without the Secured Party’s consent; or

 

		(i)	the Debtor changes its name or amalgamates or merges
without the Secured Party’s consent; or

 

		(j)	the Debtor allows any hazardous materials to be brought
upon any lands or premises occupied by the Debtor; or

 

		(k)	the Secured Party in good faith believes and has commercially
reasonable grounds to believe that the prospect of payment or performance of the Obligations is impaired or that any of the Collateral
is or is about to be placed in jeopardy.

 

16.2     In accordance with the British Columbia Property Law
Act, the doctrine of consolidation applies to this Agreement.

 

16.3     It shall be an event of default under
this Agreement and the security constituted by this Agreement shall immediately become enforceable if any term, covenant, or representation
in any other agreement, contract, or other commitment of the Debtor to the Secured Party is breached or if default should occur
under the same.

 

17.       Acceleration

 

The Secured Party, in its sole discretion,
may declare all or any part of the Obligations that are not by their terms payable on demand to be immediately due and payable
in the event of any default, or, in the absence of default, if the Secured Party considers or deems itself insecure or that the
Collateral is in jeopardy. The provisions of this paragraph do not and are not intended to affect in any way any rights of the
Secured Party with respect to any Obligations that may now or in future be payable on demand.

 

18.       Enforcement

 

18.1 Upon any default under this Agreement,
the security constituted by this Agreement shall immediately become enforceable, and any floating charge will immediately attach
the Real Property and Collateral. To enforce and realize on the security constituted by this Agreement, the Secured Party may take
any action permitted by law or in equity, as it may deem expedient, and in particular, but without limiting the generality of the
foregoing, the Secured Party may do any of the following:

 

		(a)	appoint by instrument a receiver, receiver and manager,
or receiver-manager (the person so appointed is called the “Receiver”) of the Collateral, with or without bond as the
Secured Party may determine, and from time to time in its absolute discretion remove such Receiver and appoint another in its
stead;

 

		(b)	enter upon any premises of the Debtor and take possession
of the Collateral with power to exclude the Debtor, its agents, and its servants from those premises, without becoming liable
as a mortgagee in possession;

 

		(c)	preserve, protect, and maintain the Collateral and make
such replacements and repairs and additions as the Secured Party may deem advisable;

 

		(d)	sell, lease, or otherwise dispose of all or any part
of the Collateral, whether by public or private sale or lease or otherwise, in such manner, at such price as can be reasonably
obtained, and on such terms as to credit and with such conditions of sale and stipulations as to title or conveyance or evidence
of title or otherwise as to the Secured Party may seem reasonable, provided that if any sale, lease, or other disposition is on
credit, the Debtor shall not be entitled to be credited with the proceeds of any such sale, lease, or other disposition until the
monies therefor are actually received; and

 

     

     

    

 

17

 

		(e)	exercise all of the rights and remedies of a secured
party under the Act.

 

18.2     A Receiver appointed under this Agreement
shall be the agent of the Debtor and not of the Secured Party, and the Secured Party shall not be in any way responsible for any
misconduct, negligence or nonfeasance on the part of any Receiver, its servants, agents, or employees. A Receiver shall, to the
extent permitted by law or to such lesser extent permitted by its appointment, have all the powers of the Secured Party under this
Agreement, and in addition shall have power to carry on the business of the Debtor and for such purpose to enter upon, use, and
occupy all premises owned or occupied by the Debtor in which Collateral may be situate, maintain Collateral upon such premises,
use, Collateral directly or indirectly in carrying on the Debtor’s business, and from time to time borrow money either unsecured
or secured by a security interest in any of the Collateral.

 

18.3     Subject to the claims, if any, of
the creditors of the Debtor ranking in priority to this Agreement, all amounts realized from the disposition of Collateral under
this Agreement shall be applied as the Secured Party, in its absolute discretion, may direct or as follows:

 

		(a)	in payment of all costs, charges, and expenses (including
legal fees and disbursements on a solicitor and own client basis) incurred by the Secured Party in connection with or incidental
to

 

		(i)	the exercise by the Secured Party of all or any of the
powers granted to it under this Agreement; and

 

		(ii)	the appointment of the Receiver and the exercise by the
Receiver of all or any of the powers granted to it under this Agreement, including the Receiver’s reasonable remuneration and
all outgoings properly payable by the Receiver excluding the Receiver’s borrowings;

 

		(b)	in payment of any sum or sums borrowed by the Receiver
from the Secured Party and interest thereon if such sum or sums are secured by the Collateral;

 

		(c)	in or toward payment to the Secured Party of all principal
and other monies (except interest) due in respect of the Obligations;

 

		(d)	in or toward payment to the Secured Party of all interest
remaining unpaid in respect of the Obligations;

 

		(e)	in or toward payment of any sum or sums borrowed by the
Receiver from any financial institution, corporation, or person other than the Secured Party, and interest thereon if such sum
or sums are secured by the Collateral.

 

Subject to applicable law and the claims, if any, of other creditors
of the Debtor, any surplus shall be paid to the Debtor.

 

18.4     The Debtor agrees that the Secured
Party may exercise its rights and remedies under this Agreement immediately upon default, except as may be otherwise provided in
the Act, and the Debtor expressly confirms that, except as may be otherwise provided in this Agreement or in the Act, the Secured
Party has not given any covenant, express or implied, and is under no obligation to allow the Debtor any period of time to remedy
any default before the Secured Party exercises its rights and remedies under this Agreement.

 

     

     

    

 

18

 

19.        Deficiency

 

If the amounts realized from the disposition
of the Collateral are not sufficient to pay the Obligations in full, the Debtor shall pay to the Secured Party the amount of such
deficiency immediately upon demand for the same.

 

20.       Rights Cumulative

 

All rights and remedies of the Secured
Party set out in this Agreement are cumulative, and no right or remedy contained in this Agreement is intended to be exclusive
but each shall be in addition to every other right or remedy contained in this Agreement or in any existing or future security
agreement or now or in future existing at law, in equity or by statute, or under any other agreement between the Debtor and the
Secured Party that may be in effect from time to time.

 

21.       Liability of
Secured Party

 

The Secured Party shall not be responsible
or liable for any debts contracted by it, for damages to persons or property or for salaries or non-fulfilment of contracts during
any period when the Secured Party shall manage the Collateral upon entry, as provided in this Agreement, nor shall the Secured
Party be liable to account as mortgagee in possession or for anything except actual receipts or be liable for any loss on realization
or for any default or omission for which a mortgagee in possession may be liable. The Secured Party shall not be bound to do, observe,
or perform or to see to the observance or performance by the Debtor of any obligations or covenants imposed upon the Debtor, nor
shall the Secured Party, in the case of Investment Property, Instruments, or Chattel Paper, be obliged to preserve rights against
other persons, nor shall the Secured Party be obliged to keep any of the Collateral identifiable. The Debtor waives any applicable
provision of law permitted to be waived by it which imposes higher or greater obligations upon the Secured Party than as contained
in this paragraph.

 

22.       Appointment
of Attorney and Deed

 

22.1     The Debtor irrevocably appoints the
Secured Party or the Receiver, as the case may be, with full power of substitution, to be the attorney of the Debtor for and in
the name of the Debtor to sign, endorse, or execute under seal or otherwise any deeds, documents, transfers, cheques, instruments,
demands, assignments, assurances, or consents that the Debtor is obliged to sign, endorse, or execute, and generally to use the
name of the Debtor and to do all things as may be necessary or incidental to the exercise of all or any of the powers conferred
on the Secured Party or the Receiver, as the case may be, under this Agreement.

 

22.2     Whether or not the Debtor attaches its corporate seal,
if a corporation, this Agreement is intended to be and is deemed to be a deed given under seal.

 

23.       Accounts

 

Notwithstanding any other provision of
this Agreement, the Secured Party may collect, realize, sell, or otherwise deal with the Accounts or any part of them in such manner,
upon such terms and conditions, and at such time or times, whether before or after default, as may seem to it advisable, and without
notice to the Debtor, except in the case of disposition after default and then subject to the provisions of Part 5 of the Act.
All monies or other forms of payment received by the Debtor in payment of any Account shall be received and held by the Debtor
in trust for the Secured Party.

 

24.       Appropriation
of Payments

 

Any and all payments made in respect of
the Obligations from time to time and monies realized from any security interests held therefor (including monies collected in
accordance with or realized on any enforcement of this Agreement) may be applied to such part or parts of the Obligations as the
Secured Party may see fit, and the Secured Party may at all times and
from time to time change any appropriation as the Secured Party may see fit.

 

     

     

    

 

19

 

25.       Liability to
Advance

 

None of the preparation, execution, perfection,
and registration of this Agreement or notice of this Agreement or the advance of any monies shall bind the Secured Party to make
any advance or loan or further advance or loan, or renew any note or extend any time for payment of any indebtedness or liability
of the Debtor to the Secured Party.

 

26.       Waiver

 

The Secured Party may from time to time
and at any time waive in whole or in part any right, benefit, or default under any paragraph of this Agreement but any such waiver
of any right, benefit, or default on any occasion shall be deemed not to be a waiver of any such right, benefit, or default thereafter,
or of any other right, benefit or default, as the case may be, and no delay or omission by the Secured Party in exercising any
right or remedy under this Agreement or with respect to any default shall operate as a waiver thereof or of any other right or
remedy.

 

27.       Notice

 

Any notice, demand, or other communication
required or permitted to be given under this Agreement shall be effectually made or given if delivered by hand, prepaid private
courier or by electronic transmission to the address of each party set out below:

 

		To	the Debtor: NioCorp Developments Ltd.
	 	 	7000 South Yosemite Street, Suite 115, Centennial, CO,
USA 80112

 jashburn@niocorp.com

 Attention: John Ashburn

 

		To the Secured Party:	 Mark Smith
	 	 	418 E. Fairchild
Dr., Highlands Ranch, CO, USA 80126

msmith@niocorp.com

 

or to such other address or email address
as either party may designate in the manner set out above. Any notice, demand, or other communication shall be deemed to have been
given and received on the day of prepaid private courier delivery or facsimile transmission.

 

28.       Extensions

 

The Secured Party may grant extensions
of time and other indulgences, take and give up security, accept compositions, compound, compromise, settle, grant releases and
discharges, refrain from perfecting or maintaining perfection of the Security Interest, and otherwise deal with the Debtor, account
debtors of the Debtor, sureties, and others and with the Collateral, the Security Interest, and other security interests as the
Secured Party sees fit without prejudice to the liability of the Debtor or the Secured Party’s right to hold and realize on the
security constituted by this Agreement.

 

29.       No Merger

 

This Agreement shall not operate to create
any merger or discharge of any of the Obligations, or of any assignment, transfer, guarantee, lien, mortgage, contract, promissory
note, bill of exchange, or security interest of any form held or which may in future be held by the Secured Party from the Debtor
or from any other person. The taking of a judgment with respect to any of the Obligations shall not operate as a merger of any
of the covenants contained in this Agreement.

 

     

     

    

 

20

 

30.        Assignment

 

The Secured Party may, without further
notice to the Debtor, at any time assign, transfer, or grant a security interest in this Agreement and the Security Interest. The
Debtor expressly agrees that the assignee, transferee, or secured party, as the case may be, shall have all of the Secured Party’s
rights and remedies under this Agreement, and the Debtor shall not assert any defence, counterclaim, right of setoff, or otherwise
with respect to any claim that the Debtor now has or in future acquires against the Secured Party in any action commenced by such
assignee, transferee, or secured party, as the case may be, and shall pay the Obligations to the assignee, transferee, or secured
party, as the case may be, as the Obligations become due.

 

31.       Satisfaction
and Discharge

 

Any partial payment or satisfaction of
the Obligations, or any ceasing by the Debtor to be indebted to the Secured Party, shall be deemed not to be a redemption or discharge
of this Agreement. The Debtor shall be entitled to a release and discharge of this Agreement upon full payment and satisfaction
of all Obligations and upon written request by the Debtor and payment to the Secured Party of all costs, charges, expenses, and
legal fees and disbursements (on a solicitor and own client basis) incurred by the Secured Party in connection with the Obligations
and such release and discharge.

 

32.       Enurement

 

This Agreement shall enure to the benefit of and be binding
upon the parties and their respective heirs, executors, personal representatives, successors, and permitted assigns.

 

33.       Interpretation

 

33.1      In this Agreement:

 

		(a)	“Debtor” and the personal pronoun “it”
or “its” and any verb relating thereto and used therewith shall be read and construed as required by and in accordance
with the context in which such words are used, depending upon whether the Debtor is one or more individuals, corporations, or
partnerships and, if more than one, shall apply to and be binding upon each of them jointly and severally;

 

		(b)	“Act” means the British Columbia Personal
Property Security Act and all regulations thereunder as amended;

 

33.2     Words and expressions used in this
Agreement that have been defined in the Act shall be interpreted in accordance with their respective meanings given in the Act,
whether expressed in this Agreement with or without initial capital letters and whether in the singular or the plural, unless otherwise
defined in this Agreement or unless the context otherwise requires, and, wherever the context so requires, in this Agreement the
singular shall be read as if the plural were expressed, and vice-versa, and the provisions of this Agreement shall be read with
all grammatical changes necessary dependent upon the person referred to being a male, female, firm, or corporation.

 

33.3     Should any provision of this Agreement
be declared or held invalid or unenforceable in whole or in part or against or with respect to the Debtor by a court of competent
jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability of any or all of the remaining
provisions of this Agreement, which shall continue in full force and effect and be construed as if this Agreement had been executed
without the invalid or unenforceable provision.

 

33.4     The headings of the paragraphs of this Agreement have been
inserted for reference only and do not define, limit, alter, or enlarge the meaning of any provision of this Agreement.

 

33.5     This Agreement shall be governed by the laws of British
Columbia.

 

     

     

    

 

21

 

34.        Miscellaneous

 

34.1      The Debtor authorizes the Secured
Party to file such financing statements, financing change statements, and other documents, and do such acts, matters, and things
as the Secured Party may deem appropriate, to perfect on an ongoing basis and continue the Security Interest, to protect and preserve
the Collateral, and to realize upon the Security Interest.

 

34.2       The Debtor waives protest of any Instrument
constituting Collateral at any time held by the Secured Party on which the Debtor is any way liable and, subject to the provisions
of the Act, notice of any other action taken by the Secured Party.

 

34.3      The Debtor covenants that it shall
not amalgamate with any other company or entity without first obtaining the written consent of the Secured Party. The Debtor acknowledges
and agrees that if it amalgamates with any other company or companies, then it is the intention of the parties that the term “Debtor”
when used in this Agreement shall apply to each of the amalgamating companies and to the amalgamated company, so that the Security
Interest granted by this Agreement:

 

		(a)	shall extend to “Collateral” (as that term
is defined in this Agreement) owned by each of the amalgamating companies and the amalgamated company at the time of amalgamation
and to any “Collateral” owned or acquired by the amalgamated company thereafter, and

 

		(b)	shall secure the “Obligations” (as that term
is defined in this Agreement) of each of the amalgamating companies and the amalgamated company to the Secured Party at the time
of amalgamation and any “Obligations” of the amalgamated company to the Secured Party arising thereafter. The Security
Interest shall attach to “Collateral” owned by each company amalgamating with the Debtor, and by the amalgamated company,
at the time of amalgamation, and shall attach to any “Collateral” thereafter owned or acquired by the amalgamated company
when that Collateral becomes owned or is acquired.

 

34.4      The Debtor authorizes the Secured
Party to provide a copy of this Agreement and such other information and documents specified under the Act to any person entitled
under the Act to demand and receive them.

 

35.       Copy of Agreement
and Financing Statement

 

The Debtor

 

		(a)	acknowledges receiving a copy of this Agreement, and

 

		(b)	waives all rights to receive from the Secured Party a
copy of any financing statement, financing change statement, or verification statement filed, issued, or obtained at any time
in respect of this Agreement.

 

IN WITNESS WHEREOF the Debtor has executed this Agreement on
the date indicated below.

 

	 	Execution Date	 
	
        Officer Certification

         

        /s/ Cathy Savoie          

         
	 	
        Y

        

        

         

        15

         
	
        M

        

        

         

        06

         
	
        D

        

        

         

        17

         
	 	
        NIOCORP DEVELOPMENTS LTD.

 its authorized signatory:

        

        /s/ John F. Ashburn Jr          

        Name: John F. Ashburn Jr.

         

 

     

     

    

 

22

 

OFFICER CERTIFICATION:

 

Your signature constitutes a representation that you are a solicitor,
notary public, or other person authorized by the Evidence Act, R.S.B.C. 1996, c. 124, to take affidavits for use in British
Columbia and certifies the matters set out in Part 5 of the Land Title Act as they pertain to the execution of this
instrument.

 

     

     

    

 

23

 

SCHEDULE “A”

 

EXISTING CHARGES ON THE ASSETS OF
THE DEBTOR

 

     

     

    

 

Page:
   1

 

	 	BC
    OnLine:   PPRS SEARCH RESULT	2015/06/17
	Lterm: XPSP0054	For:  
    PC82661   BOUGHTON LAW CORPORATION	10:44:11

 

Index:
BUSINESS DEBTOR

 

Search
Criteria:   NIOCORP DEVELOPMENTS

 

	*************************************** 	P P S A    S E C U R I T Y    A G R E E M E N T	*************************************** 

 

	Reg.
      Date:       JAN 18, 2010	Reg.
      Length:     5 YEARS
	Reg.
      Time:       09:26:24	   Expiry
    Date:      JAN 18, 2018
	
    Base Reg.       #:   366910F	       Control
    #:      B9765130

***
Expiry date includes subsequent registered renewal(s).

 

This
registration was selected and included for your protection because of close proximity to your search criteria.

Block#

 

S0001
     Secured Party:    THE TORONTO-DOMINION BANK - 94060

700
W GEORGIA 2 FL BOX 10001

VANCOUVER
BC V7Y 1A2

 

D0001
     Base Debtor:     BUTLER RESOURCE CORP.

(Business)   
789 W PENDER ST., SUITE 1128

      VANCOUVER
BC V6C 1H2

 

     General
Collateral:

ALL
PRESENT AND AFTER ACQUIRED ACCOUNTS, MONIES, DEPOSITS FROM TIME TO TIME ON DEPOSIT IN THE NAME OF THE DEBTOR OR OWED TO THE DEBTOR
BY THE SECURED PARTY OR TD MORTGAGE CORPORATION OR TD PACIFIC MORTGAGE CORPORATION, OR CANADA TRUSTCO MORTGAGE COMPANY OR THE
CANADA TRUST COMPANY OR OTHER SUBSIDIARY OR AFFILIATE OF THE SECURED PARTY AND IN THE DEBTORS RIGHTS IN AND TO THOSE ACCOUNTS,
MONIES, DEPOSITS AND PROCEEDS THEREOF.

 

Registering

   Party:    
THE TORONTO-DOMINION BANK - 94060

   700
W GEORGIA 2 FL BOX 10001

   VANCOUVER
BC V7Y 1A2

 

	 	A
    M E N D M E N T    /    0 T H E R    C H A N G E	 
	 	 

	 	 
	Reg.
    #: 527890F               	Reg.
    Date:   APR 28, 2010 
	 	Reg.
    Time:   09:05:06 
	 	 Control
    #:   B9930499 

Base
Reg. Type: PPSA SECURITY AGREEMENT

	Base
    Reg. #: 366910F               	Base Reg.
    Date: JAN 18, 2010 

 

Details
Description:

 ADD
ONE DEBTOR - QUANTUM RARE EARTH DEVELOPMENTS CORP.

Block#

 

***
ADDED ***

	D0002	Bus. Debtor:
    QUANTUM RARE EARTH DEVELOPMENTS CORP. 
	 	789
    WEST PENDER ST SUITE 1128 

    VANCOUVER BC V6C 1H2

 

    	

     

    

 

Continued
on Page     2

 

	Search
    Criteria: NIOCORP DEVELOPMENTS	Page:
        2 

 

	Registering       	 
	Party:     	CANADIAN SECURITIES
    REGISTRATION 
	 	SYSTEMS 
	 	4126 NORLAND AVENUE
    
	 	BURNABY BC V5G 3S8
    

 

***
Name/Address Changed on May 7, 2012 to:

 

	Registering       
    	 
	Party:     	D & H LIMITED
    PARTNERSHIP 
	 	4126 NORLAND AVENUE,
    SUITE 201 
	 	BURNABY BC V5G 3S8
    

 

	 	A
    M E N D M E N T    /    0 T H E R    C H A N G E	 
	 	 

 

	Reg. #:
    243818H               	Reg. Date:
       MAR 19, 2013 

Reg. Time:    09:56:28 

 Control #:    D1688744 

Base
Reg. Type: PPSA SECURITY AGREEMENT

	Base Reg.
    #: 366910F               	Base Reg.
    Date: JAN 18, 2010 

 

Details
Description:

   ADD
DEBTOR.

Block#

 

***
ADDED ***

	=D0003                       Bus.    Debtor:  	 NIOCORP DEVELOPMENTS LTD. 
	 	1050 WEST PENDER ST
    SUITE 1510 
	 	VANCOUVER BC V6E 3S7
    

 

	Registering       	 
	Party:     	D & H LIMITED
    PARTNERSHIP 
	 	4126 NORLAND AVENUE,
    SUITE 201 
	 	BURNABY BC V5G 3S8

 

	 	A
    M E N D M E N T    /    0 T H E R    C H A N G E	 
	 	 

 

	Reg. #:
    249844H               	Reg. Date:  
    MAR 20, 2013 
	 	Reg. Time:   16:05:08
    
	 	 Control #:   D1694907
    

Base
Reg. Type: PPSA SECURITY AGREEMENT

	Base Reg.
    #: 366910F               	Base Reg.
    Date: JAN 18, 2010 

 

  Details
Description:

    ADD DEBTOR

 Block#

 

***
ADDED ***

	D0004                       Bus.    Debtor:   
    	NIOCORP DEVELOPMENTS LTD. 
	 	789 WEST PENDER ST
    SUITE 1128

 

    	

     

    

 

VANCOUVER
BC     V6C     1H2

 

Registering

	Party:	D
    & H LIMITED PARTNERSHIP

    4126 NORLAND AVENUE, SUITE 201 

    BURNABY BC V5G 3S8

Continued
on Page 3

 

	Search
    Criteria:     NIOCORP DEVELOPMENTS	 	Page:
    3

 

	 	R
    E N E W A L	 
	 	 

 

	Reg.
    #:	358456I	Reg.
    Date:	DEC
    23, 2014
	Reg.
    Life #:	3
    YEARS	Reg.
    Time:	13:08:23
	 	 	Control
    #:	D2831501

 

Base
Reg. Type: PPSA SECURITY AGREEMENT

	Base Reg. #	: 366910F	Base Reg. Date:	JAN 18, 2010

 

Registering

	Party:	D
    & H LIMITED PARTNERSHIP

    4126 NORLAND AVENUE, SUITE 201 

    BURNABY BC V5G 3S8

 

	*
    * *  * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *	P
    P S A  S E C U R I T Y  A G R E E M E N T	*
    * *  * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *  

 

 

	Reg.
    Date:	MAY
    21, 2014	Reg.
    Length:	6
    YEARS
	Reg.
    Time:	09:09:41	Expiry
    Date:	MAY
    21, 2020
	Base
    Reg. #:	965259H	Control
    #:	D2428615

 

This
registration was selected and included for your protection because of close proximity to your search criteria.

 

Block#

 

	S0001	Secured
    Party:	ROYNAT
    INC.
	 	 	SUITE
    1500, 4710 KINGSWAY ST. 

    BURNABY BC V5H 4M2
	 	 	 
	=D0001	Base
    Debtor:	NIOCORP
    DEVELOPMENTS LTD.
	 	(Business)	 1510 - 1050 WEST PENDER ST 

    VANCOUVER BC V6E3T4

 

General
Collateral:

COPIER(S)
TOGETHER WITH ALL ATTACHMENTS ACCESSORIES ACCESSIONS REPLACEMENTS SUBSTITUTIONS ADDITIONS AND IMPROVEMENTS THERETO AND ALL PROCEEDS
IN ANY FORM DERIVED DIRECTLY OR INDIRECTLY FROM ANY SALE AND OR DEALINGS WITH THE COLLATERAL AND A RIGHT TO AN INSURANCE PAYMENT
OR OTHER PAYMENT THAT INDEMNIFIES OR COMPENSATES FOR LOSS OR DAMAGE TO THE COLLATERAL OR PROCEEDS OF THE COLLATERAL

 

*
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 

 

    	 

     

    

 

Some,
but not all, tax liens and other Crown claims are registered at the Personal Property Registry (PPR) and if registered, will be
displayed on this search result. HOWEVER, it is possible that a particular chattel is subject to a Crown claim that is not registered
at the PPR. Please consult the Miscellaneous Registrations Act, 1992 for more details. If you are concerned that a particular
chattel may be subject to a Crown claim not registered at the PPR, please consult the agency administering the type of Crown claim.

 

	>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>	END
OF SEARCH	<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<

 

    	 

     

    

 

24

 

END OF DOCUMENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00274-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00274-of-00352.parquet"}]]