Document:

Unassociated Document

    Exhibit
      10.6

    

    NEITHER
      THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS CONVERTIBLE HAVE
      BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
      COMMISSION OF ANY STATE IN RELIANCE UPON REGULATION S PROMULGATED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY
      NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
      UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN
      A
      TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
      ACT
      AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL
      OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH
      SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. 

    

    Original
      Issue Date: _____________, 2006

    Conversion
      Price: $0.75

    

    $_______________

    

    12%
      UNSECURED CONVERTIBLE DEBENTURE

    DUE
      October 1, 2008

    

    This
      12%
      Unsecured Convertible Debenture is one of a series of duly authorized and issued
      Unsecured Convertible Debentures of Bullion River Gold Corp., a Nevada
      corporation, having a principal place of business at 3500 Lakeside Court, Suite
      200, Reno, NV 89509 (the “Company”),
      designated as its 12% Unsecured Convertible Debenture, due October 1, 2008
      (this
      debenture, the “Debenture”
and
      collectively with the other such series of debentures, the “Debentures”).
      

     

    FOR
      VALUE
      RECEIVED, the Company promises to pay to ______________________ or its
      registered assigns (the “Holder”),
      or
      shall have paid pursuant to the terms hereunder, the principal sum of
      $_______________ by October 1, 2008, or such earlier date as this Debenture
      is
      required or permitted to be repaid as provided hereunder (the “Maturity
      Date”),
      and
      to pay interest to the Holder on the aggregate unconverted and then outstanding
      principal amount of this Debenture in accordance with the provisions hereof.
      This Debenture is subject to the following additional provisions:

    

    Section
      1. Definitions

    

    For
      the
      purposes hereof, in addition to the terms defined elsewhere in this Debenture:
      (a) capitalized terms not otherwise defined herein have the meanings given
      to
      such terms in the Purchase Agreement, and (b) the following terms shall have
      the
      following meanings:

     

    “Alternate
      Consideration”
shall
      have the meaning set forth in Section 6.2.

     

    “Business
      Day”
means
      any day except Saturday, Sunday and any day which shall be a federal legal
      holiday in the United States or a day on which banking institutions in the
      State
      of Nevada are authorized or required by law or other government action to
      close.

     

    “Common
      Stock”
means
      the common stock, par value $0.001 per share, of the Company and stock of any
      other class of securities into which such securities may hereafter have been
      reclassified or changed into.

     

    “Conversion
      Date”
shall
      have the meaning set forth in Section 4.1.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    “Conversion
      Price”
shall
      have the meaning set forth in Section 4.3.

     

    “Conversion
      Shares”
means
      the shares of Common Stock issuable upon conversion of this Debenture or as
      payment of interest in accordance with the terms.

     

    “Event
      of Default”
shall
      have the meaning set forth in Section 8.

     

    “Fundamental
      Transaction”
shall
      have the meaning set forth in Section 6.2.

     

    “Interest
      Conversion Rate”
means
      $0.75 per share.

     

    “Maturity
      Date”
means
      October 1, 2008

     

    “Nevada
      Courts”
shall
      have the meaning set forth in Section 9.4.

     

    “Notice
      of Conversion”
shall
      have the meaning set forth in Section 4.1.

     

    “Optional
      Prepayment” shall
      have the meaning set forth in Section 7.

     

    “Optional
      Prepayment Amount” shall
      have the meaning set forth in Section 7

     

    “Optional
      Prepayment Date” shall
      have the meaning set forth in Section 7.

     

    “Optional
      Prepayment Notice” shall
      have the meaning set forth in Section 7.

     

    “Original
      Issue Date”
shall
      mean the date of the first issuance of the Debentures regardless of the number
      of transfers of any Debenture and regardless of the number of instruments which
      may be issued to evidence such Debenture.

     

    “Person”
means
      a
      corporation, an association, a partnership, organization, a business, an
      individual, a government or political subdivision thereof or a governmental
      agency.

     

    “Purchase
      Agreement”
means
      the Securities Purchase Agreement, dated as of _____________ __, 2006, to which
      the Company and the original Holder are parties, as amended, modified or
      supplemented from time to time in accordance with its terms.

     

    “Trading
      Day”
means
      a
      day on which the Common Stock is traded on one of the following markets or
      exchanges: the OTC Bulletin Board, the Nasdaq SmallCap Market, the American
      Stock Exchange, the New York Stock Exchange or the Nasdaq National
      Market.

     

    Section
      2. Interest

     

    2.1    Accrual
      of Interest.
      Interest
      shall accrue on the principal balance of this Debenture at the rate of twelve
      percent (12%) per annum.

     

    
      
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    2.2    Payment
      of Interest in Cash or Kind.
      The
      Company shall pay interest to the Holder on the aggregate unconverted and then
      outstanding principal amount of this Debenture at the rate of 12% simple
      interest per annum, payable quarterly on January 1, April 1, July 1 and October
      1, beginning on January 1, 2007, and on the Maturity Date (except that, if
      any
      such date is not a Business Day, then such payment shall be due on the next
      succeeding Business Day). Interest may, at the option of the Company, be paid
      in
      cash or shares of Common Stock at the Interest Conversion Rate, or a combination
      of shares and cash.

     

    Section
      3. Repayment of Principal

     

    3.1    Repayment
      in U.S. Dollars.
      On or
      before the Maturity Date, the Company shall repay the unpaid principal amount
      of
      this Debenture in U.S. Dollars.

    

    Section
      4.Conversion Into Shares of Common Stock

     

    4.1    Voluntary
      Conversion.
      At any
      time after the Original Issue date and until this Debenture is no longer
      outstanding, this Debenture shall be convertible into shares of Common Stock
      (“Conversion
      Shares”)
      at the
      option of the Holder, in whole or in part at any time and from time to time.
      The
      Holder shall effect conversions by delivering to the Company the form of Notice
      of Conversion attached hereto as
      Annex
      A
      (a
“Notice
      of Conversion”),
      specifying therein the principal amount of this Debenture to be converted and
      the date on which such conversion is to be effected (a “Conversion
      Date”).
      If no
      Conversion Date is specified in a Notice of Conversion, the Conversion Date
      shall be the date that such Notice of Conversion is provided hereunder. To
      effect conversions hereunder, the Holder shall not be required to physically
      surrender this Debenture to the Company unless the entire principal amount
      of
      this Debenture plus all accrued and unpaid interest thereon has been so
      converted. Conversions hereunder shall have the effect of lowering the
      outstanding principal amount of this Debenture in an amount equal to the
      applicable conversion. Any and all conversion hereunder shall be made in
      increments of $10,000 unless the balance of the outstanding debenture amount
      is
      less than $10,000 and then in such event, the entire amount of the debenture
      shall be converted into shares of Common Stock if Holder elects to convert
      such
      balance.

     

    4.2    Conversion
      Records.
      The
      Holder and the Company shall maintain records showing the principal amount
      converted and the date of such conversions. The Company shall deliver a copy
      of
      its records as to Holder in a reasonable time following any conversion. If
      Holder disagrees with the Company’s records, Holder shall provide notice of such
      objection to the Company within twenty days following the Company’s mailing of
      such record to holder. In the event of any dispute or discrepancy, the records
      of the Company shall be controlling and determinative in the absence of manifest
      error. The Holder and any assignee, by acceptance of this Debenture, acknowledge
      and agree that, by reason of the provisions of this paragraph, following
      conversion of a portion of this Debenture, the unpaid and unconverted principal
      amount of this Debenture may be less than the amount stated on the face hereof.
      Notwithstanding anything herein to the contrary, the Holders right to convert
      hereunder shall in no way excuse the Company from having to meet its obligation
      to pay the outstanding principal and interest on this Debenture nor shall it
      limit the Holder’s right to seek any other remedy against the Company for
      failing to meet such obligations. The right to convert this Debenture into
      Conversion Shares is in addition to any other rights or remedies the Holder
      may
      have hereunder or under law.

     

    
      
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    4.3    Conversion
      Price.
      The
      conversion price in effect on any Conversion Date shall be $0.75 (subject to
      adjustment herein)(the “Conversion
      Price”).

     

    4.4    Mechanics
      of Conversion

     

    (a)    Conversion
      Shares Issuable Upon Conversion of Principal Amount.
      The
      number of shares of Common Stock issuable upon a conversion hereunder shall
      be
      determined by the quotient obtained by dividing (x) the outstanding principal
      amount of this Debenture to be converted by (y) the Conversion
      Price.

     

    (b)    Delivery
      of Certificate Upon Conversion.
      Not
      later than three Trading Days after any Conversion Date, the Company will
      deliver or cause to be delivered to the Holder (A) a certificate or certificates
      representing the Conversion Shares which shall be free of restrictive legends
      and trading restrictions (other than those required by the Purchase Agreement)
      representing the number of shares of Common Stock being acquired upon the
      conversion of this Debenture including payment of interest in shares of Common
      Stock. The Company shall, if available and if allowed under applicable
      securities laws, use its best efforts to deliver any certificate or certificates
      required to be delivered by the Company under this Section electronically
      through the Depository Trust Corporation or another established clearing
      corporation performing similar functions.

     

    (c)    Failure
      to Deliver Certificates.
      If in
      the case of any Notice of Conversion such certificate or certificates are not
      delivered to or as directed by the applicable Holder by the third Trading Day
      after a Conversion Date, the Holder shall be entitled by written notice to
      the
      Company at any time on or before its receipt of such certificate or certificates
      thereafter, to rescind such conversion, in which event the Company shall
      immediately return the certificates representing the principal amount of this
      Debenture tendered for conversion.

     

    (d)    Reservation
      of Shares Issuable Upon Conversion.
      The
      Company covenants that it will at all times reserve and keep available out
      of
      its authorized and unissued shares of Common Stock solely for the purpose of
      issuance upon conversion of this Debenture and payment of interest on this
      Debenture, each as herein provided, free from preemptive rights or any other
      actual contingent purchase rights of persons other than the Holder (and the
      other holders of the Debentures), not less than such number of shares of the
      Common Stock as shall (subject to the terms and conditions set forth in the
      Purchase Agreement) be issuable (taking into account the adjustments and
      restrictions of Section 6) upon the conversion of the outstanding principal
      amount of this Debenture and payment of interest hereunder. The Company
      covenants that all shares of Common Stock that shall be so issuable shall,
      upon
      issue, be duly and validly authorized, issued and fully paid, nonassessable
      and,
      if the Registration Statement is then effective under the Securities Act,
      registered for public sale in accordance with such Registration
      Statement.

     

    (e)    Fractional
      Shares.
      The
      Holder shall be entitled to receive, in lieu of fractional shares, one whole
      share of Common Stock.

     

    (f)    Transfer
      Taxes.
      The
      issuance of certificates for shares of the Common Stock on conversion of this
      Debenture shall be made without charge to the Holder hereof for any documentary
      stamp or similar taxes that may be payable in respect of the issue or delivery
      of such certificate, provided that the Company shall not be required to pay
      any
      tax that may be payable in respect of any transfer involved in the issuance
      and
      delivery of any such certificate upon conversion in a name other than that
      of
      the Holder of this Debenture so converted and the Company shall not be required
      to issue or deliver such certificates unless or until the person or persons
      requesting the issuance thereof shall have paid to the Company the amount of
      such tax or shall have established to the satisfaction of the Company that
      such
      tax has been paid.

     

    
      
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    Section
      5. Registration of Transfers and Exchanges

     

    5.1    Different
      Denominations.
      This
      Debenture is exchangeable for an equal aggregate principal amount of Debentures
      of different authorized denominations, as requested by the Holder surrendering
      the same. No service charge will be made for such registration of transfer
      or
      exchange.

     

    5.2    Investment
      Representations.
      This
      Debenture has been issued subject to certain investment representations of
      the
      original Holder set forth in the Purchase Agreement and may be transferred
      or
      exchanged only in compliance with the Purchase Agreement and applicable federal
      and state securities laws and regulations.

     

    5.3    Reliance
      on Debenture Register.
      Prior
      to due presentment to the Company for transfer of this Debenture, the Company
      and any agent of the Company may treat the Person in whose name this Debenture
      is duly registered on the Debenture Register as the owner hereof for the purpose
      of receiving payment as herein provided and for all other purposes, whether
      or
      not this Debenture is overdue, and neither the Company nor any such agent shall
      be affected by notice to the contrary.

    

    Section
      6. Certain Adjustments

     

    6.1    Stock
      Dividends and Stock Splits.
      If the
      Company, at any time while this Debenture is outstanding: (A) pays a stock
      dividend or otherwise makes a distribution or distributions on shares of its
      Common Stock or any other equity or equity equivalent securities payable in
      shares of Common Stock (which, for avoidance of doubt, shall not include any
      shares of Common Stock issued by the Company pursuant to this Debenture,
      including as interest thereon), (B) subdivides outstanding shares of Common
      Stock into a larger number of shares, (C) combines (including by way of reverse
      stock split) outstanding shares of Common Stock into a smaller number of shares,
      or (D) issues by reclassification of shares of the Common Stock any shares
      of
      capital stock of the Company, then the Conversion Price shall be multiplied
      by a
      fraction of which the numerator shall be the number of shares of Common Stock
      (excluding treasury shares, if any) outstanding immediately before such event
      and of which the denominator shall be the number of shares of Common Stock
      outstanding immediately after such event. Any adjustment made pursuant to this
      Section shall become effective immediately after the record date for the
      determination of stockholders entitled to receive such dividend or distribution
      and shall become effective immediately after the effective date in the case
      of a
      subdivision, combination or re-classification.

     

    6.2    Fundamental
      Transaction.
      If, at
      any time while this Debenture is outstanding, (A) the Company effects any merger
      or consolidation of the Company with or into another Person, (B) the Company
      effects any sale of all or substantially all of its assets in one or a series
      of
      related transactions, (C) any tender offer or exchange offer (whether by the
      Company or another Person) is completed pursuant to which holders of Common
      Stock are permitted to tender or exchange their shares for other securities,
      cash or property, or (D) the Company effects any reclassification of the Common
      Stock or any compulsory share exchange pursuant to which the Common Stock is
      effectively converted into or exchanged for other securities, cash or property
      (in any such case, a “Fundamental
      Transaction”),
      then
      upon any subsequent conversion of this Debenture, the Holder shall have the
      right to receive, for each Conversion Share that would have been issuable upon
      such conversion immediately prior to the occurrence of such Fundamental
      Transaction, the same kind and amount of securities, cash or property as it
      would have been entitled to receive upon the occurrence of such Fundamental
      Transaction if it had been, immediately prior to such Fundamental Transaction,
      the holder of one share of Common Stock (the “Alternate
      Consideration”).
      For
      purposes of any such conversion, the determination of the Conversion Price
      shall
      be appropriately adjusted to apply to such Alternate Consideration based on
      the
      amount of Alternate Consideration issuable in respect of one share of Common
      Stock in such Fundamental Transaction, and the Company shall apportion the
      Conversion Price among the Alternate Consideration in a reasonable manner
      reflecting the relative value of any different components of the Alternate
      Consideration.

     

    
      
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    If
      holders of Common Stock are given any choice as to the securities, cash or
      property to be received in a Fundamental Transaction, then the Holder shall
      be
      given the same choice as to the Alternate Consideration it receives upon any
      conversion of this Debenture following such Fundamental Transaction. To the
      extent necessary to effectuate the foregoing provisions, any successor to the
      Company or surviving entity in such Fundamental Transaction shall issue to
      the
      Holder a new debenture consistent with the foregoing provisions and evidencing
      the Holder’s right to convert such debenture into Alternate Consideration. The
      terms of any agreement pursuant to which a Fundamental Transaction is effected
      shall include terms requiring any such successor or surviving entity to comply
      with the provisions of this paragraph (d) and insuring that this Debenture
      (or
      any such replacement security) will be similarly adjusted upon any subsequent
      transaction analogous to a Fundamental Transaction.

     

    6.3    Calculations.
      All
      calculations under this Section 6 shall be made to the nearest cent or the
      nearest 1/100th of a share, as the case may be. For purposes of this Section
      6,
      the number of shares of Common Stock deemed to be issued and outstanding as
      of a
      given date shall be the sum of the number of shares of Common Stock (excluding
      treasury shares, if any) issued and outstanding.

     

    6.4    Notice
      to the Holder.

     

    (a)    Adjustment
      to Conversion Price.
      Whenever the Conversion Price is adjusted pursuant to any of this Section 6,
      the
      Company shall promptly mail to each Holder a notice setting forth the Conversion
      Price after such adjustment and setting forth a brief statement of the facts
      requiring such adjustment. If the Company issues a variable rate security,
      despite the prohibition thereon in the Purchase Agreement, the Company shall
      be
      deemed to have issued Common Stock or Common Stock Equivalents at the lowest
      possible conversion or exercise price at which such securities may be converted
      or exercised in the case of a Variable Rate Transaction (as defined in the
      Purchase Agreement).

     

    (b)    Notice
      to Allow Conversion by Holder.
      If (A)
      the Company shall declare a dividend (or any other distribution) on the Common
      Stock; (B) the Company shall declare a special nonrecurring cash dividend on
      or
      a redemption of the Common Stock; (C) the Company shall authorize the granting
      to all holders of the Common Stock rights or warrants to subscribe for or
      purchase any shares of capital stock of any class or of any rights; (D) the
      approval of any stockholders of the Company shall be required in connection
      with
      any reclassification of the Common Stock, any consolidation or merger to which
      the Company is a party, any sale or transfer of all or substantially all of
      the
      assets of the Company, of any compulsory share exchange whereby the Common
      Stock
      is converted into other securities, cash or property; (E) the Company shall
      authorize the voluntary or involuntary dissolution, liquidation or winding
      up of
      the affairs of the Company; then, in each case, the Company shall cause to
      be
      filed at each office or agency maintained for the purpose of conversion of
      this
      Debenture, and shall cause to be mailed to the Holder at its last addresses
      as
      it shall appear upon the stock books of the Company, at least 20 calendar days
      prior to the applicable record or effective date hereinafter specified, a notice
      stating (x) the date on which a record is to be taken for the purpose of such
      dividend, distribution, redemption, rights or warrants, or if a record is not
      to
      be taken, the date as of which the holders of the Common Stock of record to
      be
      entitled to such dividend, distributions, redemption, rights or warrants are
      to
      be determined or (y) the date on which such reclassification, consolidation,
      merger, sale, transfer or share exchange is expected to become effective or
      close, and the date as of which it is expected that holders of the Common Stock
      of record shall be entitled to exchange their shares of the Common Stock for
      securities, cash or other property deliverable upon such reclassification,
      consolidation, merger, sale, transfer or share exchange; provided, that the
      failure to mail such notice or any defect therein or in the mailing thereof
      shall not affect the validity of the corporate action required to be specified
      in such notice. The Holder is entitled to convert this Debenture during the
      20-day period commencing the date of such notice to the effective date of the
      event triggering such notice.

     

    
      
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    Section
      7. Optional Redemption Right

     

    Commencing
      six months after the Original Issuance Date, the Company shall have the right,
      exercisable on not less than twenty (20) Trading Days prior written notice
      to
      the Holder of the Debentures, to prepay in part or in full the Debenture in
      accordance with this Section 7. Any notice of prepayment hereunder (an
“Optional
      Prepayment”)
      shall
      be delivered to the Holders of the Debentures and shall state (1) that the
      Company is exercising its right to prepay the Debentures issued on the Original
      Issue Date and (2) the date of prepayment (the “Optional
      Prepayment Notice”).
      On
      the date fixed for prepayment (the “Optional
      Prepayment Date”),
      the
      Company shall make payment of the Optional Prepayment Amount (as defined below)
      to the Holder. If the Company exercises its right to prepay the Debenture,
      the
      Company shall make payment to the Holder of an amount in cash equal to the
      sum
      of the then outstanding principal amount of this Debenture plus any amount
      of
      interest owed hereunder to the Holder (“Optional
      Prepayment Amount”).
      The
      Holder shall at all times prior to the Optional Prepayment Date maintain the
      right to convert all or any portion of the Debenture and any portion of
      Debenture so converted after receipt of an Optional Prepayment Notice and prior
      to the Optional Prepayment Date set forth in such notice and payment of the
      aggregate Optional Prepayment Amount shall be deducted from the principal amount
      of Debenture which is otherwise subject to prepayment pursuant to such notice.
      If the Company delivers an Optional Prepayment Notice and fails to pay the
      Optional Prepayment Amount due to the Holder of the Debenture on the Optional
      Prepayment Date, then the Company shall forfeit its right to prepay the
      Debenture pursuant to such Optional Prepayment Notice and shall thereafter
      forfeit its right to Optional Prepayment.

    

    Section
      8. Events of Default.

     

    8.1    “Event
      of Default”.
      Wherever used herein, an Event of Default means any one of the following events
      (whatever the reason and whether it shall be voluntary or involuntary or
      effected by operation of law or pursuant to any judgment, decree or order of
      any
      court, or any order, rule or regulation of any administrative or governmental
      body):

     

    
      
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    (a)    any
      default in the payment of (A) the principal amount of any Debenture, or (B)
      interest on any Debenture, as and when the same shall become due and payable
      (whether on a Conversion Date or the Maturity Date or by acceleration or
      otherwise) which default, solely in the case of an interest payment under clause
      (B) above, is not cured, within 3 Trading Days;

     

    (b)    the
      Company shall fail to observe or perform any other material covenant or material
      agreement contained in this Debenture or any other Debenture which failure
      is
      not cured, if possible to cure, within the earlier to occur of 5 Trading Days
      after notice of such default sent by the Holder or by any other
      Holder;

     

    (c)    a
      default
      or event of default (subject to any grace or cure period provided for in the
      applicable agreement, document or instrument) shall occur under any of the
      Transaction Documents,

     

    (d)    any
      representation or warranty or covenant made herein, in any other Transaction
      Documents, in any written statement pursuant hereto or thereto, or in any other
      report, financial statement or certificate made or delivered to the Holder
      or
      any other holder of Debentures shall be untrue or incorrect in any material
      respect as of the date when made or deemed made;

     

    (e)    (i)
      the
      Company or any of its Subsidiaries shall commence a case, as debtor, under
      any
      applicable bankruptcy or insolvency laws as now or hereafter in effect or any
      successor thereto, or the Company or any Subsidiary commences any other
      proceeding under any reorganization, arrangement, adjustment of debt, relief
      of
      debtors, dissolution, insolvency or liquidation or similar law of any
      jurisdiction whether now or hereafter in effect relating to the Company or
      any
      Subsidiary thereof or (ii) there is commenced a case against the Company or
      any
      Subsidiary thereof, under any applicable bankruptcy or insolvency laws, as
      now
      or hereafter in effect or any successor thereto which remains undismissed for
      a
      period of 60 days; or (iii) the Company or any Subsidiary thereof is adjudicated
      by a court of competent jurisdiction insolvent or bankrupt; or any order of
      relief or other order approving any such case or proceeding is entered; or
      (iv)
      the Company or any Subsidiary thereof suffers any appointment of any custodian
      or the like for it or any substantial part of its property which continues
      undischarged or unstayed for a period of 60 days; or (v) the Company or any
      Subsidiary thereof makes a general assignment for the benefit of creditors;
      or
      (vi) the Company shall fail to pay, or shall state that it is unable to pay,
      or
      shall be unable to pay, its debts generally as they become due; or (vii) the
      Company or any Subsidiary thereof shall call a meeting of its creditors with
      a
      view to arranging a composition, adjustment or restructuring of its debts;
      or
      (viii) the Company or any Subsidiary thereof shall by any act or failure to
      act
      expressly indicate its consent to, approval of or acquiescence in any of the
      foregoing; or (ix) any corporate or other action is taken by the Company or
      any
      Subsidiary thereof for the purpose of effecting any of the foregoing;
      or

     

    (f)    the
      Company or any Subsidiary shall default in any of its obligations under any
      mortgage, credit agreement or other facility, indenture agreement, factoring
      agreement or other instrument under which there may be issued, or by which
      there
      may be secured or evidenced any indebtedness for borrowed money or money due
      under any long term leasing or factoring arrangement of the Company in an amount
      exceeding $250,000, whether such indebtedness now exists or shall hereafter
      be
      created and such default shall result in such indebtedness becoming or being
      declared due and payable prior to the date on which it would otherwise become
      due and payable; 

     

    
      
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    8.2    Remedies
      Upon Event of Default.
      If any
      Event of Default occurs, the full principal amount of this Debenture, together
      with interest and other amounts owing in respect thereof, to the date of
      acceleration shall become, at the Holder’s election, immediately due and payable
      in cash. Upon the payment in full of the of the Debenture under this Section
      8.2, the Holder shall promptly surrender this Debenture to or as directed by
      the
      Company. The Holder need not provide and the Company hereby waives any
      presentment, demand, protest or other notice of any kind, and the Holder may
      immediately and without expiration of any grace period enforce any and all
      of
      its rights and remedies hereunder and all other remedies available to it under
      applicable law. Such declaration may be rescinded and annulled by Holder at
      any
      time prior to payment hereunder and the Holder shall have all rights as a
      Debenture holder until such time, if any, as the full payment under this Section
      shall have been received by it. No such rescission or annulment shall affect
      any
      subsequent Event of Default or impair any right consequent thereon.

    

    Section
      9. Miscellaneous

     

    9.1    Notices.
      Any and
      all notices or other communications or deliveries to be provided by the Holder
      hereunder, including, without limitation, any Notice of Conversion, shall be
      in
      writing and delivered personally, by facsimile, sent by a nationally recognized
      overnight courier service, addressed to the Company, at the address set forth
      above, facsimile number (775) 324-7893, Attn: Peter Kuhn or such other address
      or facsimile number as the Company may specify for such purposes by notice
      to
      the Holder delivered in accordance with this Section. Any and all notices or
      other communications or deliveries to be provided by the Company hereunder
      shall
      be in writing and delivered personally, by facsimile, sent by a nationally
      recognized overnight courier service addressed to each Holder at the facsimile
      telephone number or address of such Holder appearing on the books of the
      Company, or if no such facsimile telephone number or address appears, at the
      principal place of business of the Holder. Any notice or other communication
      or
      deliveries hereunder shall be deemed given and effective on the earliest of
      (i)
      the date of transmission, if such notice or communication is delivered via
      facsimile at the facsimile telephone number specified in this Section prior
      to
      5:30 p.m. (Nevada time), (ii) the date after the date of transmission, if such
      notice or communication is delivered via facsimile at the facsimile telephone
      number specified in this Section later than 5:30 p.m. (Nevada time) on any
      date
      and earlier than 11:59 p.m. (Nevada time) on such date, (iii) the second
      Business Day following the date of mailing, if sent by nationally recognized
      overnight courier service, or (iv) upon actual receipt by the party to whom
      such
      notice is required to be given.

     

    9.2    Absolute
      Obligation.
      Except
      as expressly provided herein, no provision of this Debenture shall alter or
      impair the obligation of the Company, which is absolute and unconditional,
      to
      pay the principal of, interest and liquidated damages (if any) on, this
      Debenture at the time, place, and rate, and in the coin or currency, herein
      prescribed. This Debenture is a direct debt obligation of the Company. This
      Debenture ranks pari passu with all other Debentures now or hereafter issued
      under the terms set forth herein.

     

    9.3    Lost
      or Mutilated Debenture.
      If this
      Debenture shall be mutilated, lost, stolen or destroyed, the Company shall
      execute and deliver, in exchange and substitution for and upon cancellation
      of a
      mutilated Debenture, or in lieu of or in substitution for a lost, stolen or
      destroyed Debenture, a new Debenture for the principal amount of this Debenture
      so mutilated, lost, stolen or destroyed but only upon receipt of evidence of
      such loss, theft or destruction of such Debenture, and of the ownership hereof,
      and indemnity, if requested, all reasonably satisfactory to the
      Company.

     

    
      
        9

      

      
         

        
          

        

      

      
         

      

    

     

    9.4    Governing
      Law.
      All
      questions concerning the construction, validity, enforcement and interpretation
      of this Debenture shall be governed by and construed and enforced in accordance
      with the internal laws of the State of Nevada, without regard to the principles
      of conflicts of law thereof. Each party agrees that all legal proceedings
      concerning the interpretations, enforcement and defense of the transactions
      contemplated by any of the Transaction Documents (whether brought against a
      party hereto or its respective affiliates, directors, officers, shareholders,
      employees or agents) shall be commenced in the state and federal courts sitting
      in the City of Reno, State of Nevada (the “Nevada
      Courts”).
      Each
      party hereto hereby irrevocably submits to the exclusive jurisdiction of the
      Nevada Courts for the adjudication of any dispute hereunder or in connection
      herewith or with any transaction contemplated hereby or discussed herein
      (including with respect to the enforcement of any of the Transaction Documents),
      and hereby irrevocably waives, and agrees not to assert in any suit, action
      or
      proceeding, any claim that it is not personally subject to the jurisdiction
      of
      any such court, or such Nevada Courts are improper or inconvenient venue for
      such proceeding. 

    

    Each
      party hereby irrevocably waives personal service of process and consents to
      process being served in any such suit, action or proceeding by mailing a copy
      thereof via registered or certified mail or overnight delivery (with evidence
      of
      delivery) to such party at the address in effect for notices to it under this
      Debenture and agrees that such service shall constitute good and sufficient
      service of process and notice thereof. Nothing contained herein shall be deemed
      to limit in any way any right to serve process in any manner permitted by law.
      Each party hereto hereby irrevocably waives, to the fullest extent permitted
      by
      applicable law, any and all right to trial by jury in any legal proceeding
      arising out of or relating to this Debenture or the transactions contemplated
      hereby. If either party shall commence an action or proceeding to enforce any
      provisions of this Debenture, then the prevailing party in such action or
      proceeding shall be reimbursed by the other party for its attorneys’ fees and
      other costs and expenses incurred with the investigation, preparation and
      prosecution of such action or proceeding.

     

    9.5    Waiver.
      Any
      waiver by the Company or the Holder of a breach of any provision of this
      Debenture shall not operate as or be construed to be a waiver of any other
      breach of such provision or of any breach of any other provision of this
      Debenture. The failure of the Company or the Holder to insist upon strict
      adherence to any term of this Debenture on one or more occasions shall not
      be
      considered a waiver or deprive that party of the right thereafter to insist
      upon
      strict adherence to that term or any other term of this Debenture. Any waiver
      must be in writing.

     

    9.6    Severability.
      If any
      provision of this Debenture is invalid, illegal or unenforceable, the balance
      of
      this Debenture shall remain in effect, and if any provision is inapplicable
      to
      any person or circumstance, it shall nevertheless remain applicable to all
      other
      persons and circumstances. If it shall be found that any interest or other
      amount deemed interest due hereunder violates applicable laws governing usury,
      the applicable rate of interest due hereunder shall automatically be lowered
      to
      equal the maximum permitted rate of interest. The Company covenants (to the
      extent that it may lawfully do so) that it shall not at any time insist upon,
      plead, or in any manner whatsoever claim or take the benefit or advantage of,
      any stay, extension or usury law or other law which would prohibit or forgive
      the Company from paying all or any portion of the principal of or interest
      on
      this Debenture as contemplated herein, wherever enacted, now or at any time
      hereafter in force, or which may affect the covenants or the performance of
      this
      indenture, and the Company (to the extent it may lawfully do so) hereby
      expressly waives all benefits or advantage of any such law, and covenants that
      it will not, by resort to any such law, hinder, delay or impeded the execution
      of any power herein granted to the Holder, but will suffer and permit the
      execution of every such as though no such law has been enacted.

     

    
      
        10

      

      
         

        
          

        

      

      
         

      

    

     

    9.7    Next
      Business Day.
      Whenever any payment or other obligation hereunder shall be due on a day other
      than a Business Day or Trading Day, such payment or obligation shall be made
      or
      performed on the next succeeding Business Day.

     

    9.8    Headings.
      The
      headings contained herein are for convenience only, do not constitute a part
      of
      this Debenture and shall not be deemed to limit or affect any of the provisions
      hereof.

     

    9.9    Assumption.
      Any
      successor to the Company or surviving entity in a Fundamental Transaction shall
      (i) assume in writing all of the obligations of the Company under this Debenture
      and the other Transaction Documents prior to such Fundamental Transaction,
      and
      (ii) to issue to the Holder a new debenture of such successor entity evidenced
      by a written instrument substantially similar in form and substance to this
      Debenture, including, without limitation, having a principal amount and interest
      rate equal to the principal amounts and the interest rates of the Debentures
      held by the Holder and having similar ranking to this Debenture, and
      satisfactory to the Holder (any such approval not to be unreasonably withheld
      or
      delayed). The provisions of this Section 9.9 shall apply similarly and equally
      to successive Fundamental Transactions and shall be applied without regard
      to
      any limitations of this Debenture.

     

    IN
      WITNESS WHEREOF, the Company has caused this Debenture to be duly executed
      by a
      duly authorized officer as of the date first above indicated.

     

     

    
      	 	
              BULLION
                RIVER GOLD CORP.

              

              By: 
                /s/ Peter
                Kuhn                                               

              Name:
                Peter Kuhn

              Title:
                President

            

    

     

     

    
      
        11

      

      
         

        
          

        

      

      
         

      

    

    ANNEX
      A

    

    NOTICE
      OF
      CONVERSION

     

    The
      undersigned hereby elects to convert principal under the 12% Unsecured
      Convertible Debenture of Bullion River Gold Corp., a Nevada corporation (the
      “Company”),
      due
      on October 1, 2008, into shares of common stock, par value $0.001 per share
      (the
“Common
      Stock”),
      of
      the Company according to the conditions hereof, as of the date written below.
      If
      shares are to be issued in the name of a person other than the undersigned,
      the
      undersigned will pay all transfer taxes payable with respect thereto and is
      delivering herewith such certificates and opinions as reasonably requested
      by
      the Company in accordance therewith. No fee will be charged to the holder for
      any conversion, except for such transfer taxes, if any.

     

    By
      the
      delivery of this Notice of Conversion the undersigned represents and warrants
      to
      the Company that its ownership of the Common Stock does not exceed the amounts
      determined in accordance with Section 13(d) of the Exchange Act, specified
      under
      Section 4 of this Debenture.

     

    The
      undersigned agrees to comply with the prospectus delivery requirements under
      the
      applicable securities laws in connection with any transfer of the aforesaid
      shares of Common Stock.

    

    Conversion
      calculations:

    

    Date
      to
      effect conversion:____________________________

    

    Principal
      Amount of Debenture to be converted: $_____________________________

    

    Payment
      of interest in Common Stock ___ yes  
      ___
      no

    

    If
      yes,
      $______________of
      Interest accrued.

    

    Number
      of
      shares of Common Stock to be
      issued:__________________________________

    

    Signature:_________________________________

    

    Name:____________________________________

    

    Address:__________________________________

     

     

     

    12Form of Regulation S Common Stock Purchase Warrant Agreement

    Exhibit
      10.7

    

      NEITHER
        THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE
        HAVE
        BEEN REGISTERED WITH THE SECURITIES
        AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE
        UPON AN EXEMPTION FROM REGISTRATION
        UNDER THE SECURITIES ACT OF 1933 (THE "SECURITIES ACT"), AND, ACCORDINGLY,
        MAY
        NOT BE OFFERED OR SOLD
        EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
        ACT
        OR PURSUANT TO AN AVAILABLE EXEMPTION
        FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF
        THE
        SECURITIES ACT AND IN ACCORDANCE
        WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF
        COUNSEL
        TO THE TRANSFEROR TO SUCH
        EFFECT, THE SUBSTANCE OF WHICH WILL BE REASONABLY ACCEPTABLE TO THE
        COMPANY.

      

      THIS
        SECURITY AND THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE HAVE
        BEEN
        ISSUED PURSUANT TO AN EXEMPTION
        FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, PURSUANT
        TO
        REGULATION S THEREUNDER. THIS
        SECURITY AND THE SECURITIES INTO WHICH THIS SECURITY IS EXCERCISABLE CANNOT
        BE
        TRANSFERRED, OFFERED, OR SOLD IN
        THE
        UNITED STATES OR TO U.S. PERSONS (AS THAT TERM IS DEFINED IN REGULATION S)
        EXCEPT PURSUANT TO REGISTRATION UNDER
        THE
        SECURITIES ACT OF 1933, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM
        REGISTRATION.

    

    

    

    COMMON
      STOCK PURCHASE WARRANT

    

    Warrant#:________________________

     

    To
      purchase __________ shares of common stock of

     

    BULLION
      RIVER GOLD CORP.

     

    Dated:
      ______________________,
      2006

     

    This
      common stock purchase warrant
      (the
“Warrant”)
      certifies that, for value received, ________________________ (the
      “Holder”),
      is
      entitled, upon the terms and subject to the limitations on exercise and the
      conditions hereinafter set forth, at any time on or after the date given above
      (the “Initial
      Exercise Date”)
      and by
      the close of business on the second anniversary of the Initial Exercise Date
      (the “Termination
      Date”)
      but
      not thereafter, to subscribe for and purchase from Bullion River Gold Corp.,
      a
      Nevada corporation (the “Company”),
      up to
      _____________ shares
      (the “Warrant
      Shares”)
      of
      common stock, par value $0.001 per share, of the Company (the “Common
      Stock”).
      The
      purchase price of one share of Common Stock under this Warrant is equal to
      the
      Exercise Price, as defined in Section 2(a).
      

     

    1.    Definitions.
      Capitalized terms used and not otherwise defined in this Warrant have the same
      meanings as they have in the Securities Purchase Agreement (the “Purchase
      Agreement”),
      dated
,
      2006,
      among the Company and the Holder as Purchaser.

     

    
      
         

      

      
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    2.    Exercise.

     

    (a)    Exercise
      Price.
      The
      exercise price of the Common Stock under this Warrant is $1.00,

     

    (b)    Exercise
      of Warrant.
      The
      Holder may exercise the purchase rights represented by this Warrant at any
      time
      from the Initial Exercise Date to five o’clock in the afternoon, Reno time, on
      the Termination Date by delivering to the Company (i) a duly executed facsimile
      copy of the annexed Notice of Exercise, and, (ii) within 5 Trading Days of
      delivering the Notice of Exercise to the Company, (A) this Warrant, and (B)
      by
      wire or cashier’s check drawn on a United States bank the United States dollar
      amount equal to the number of Warrant Shares being purchased times the Exercise
      Price (the “Exercise
      Amount”). 

     

    (c)    Exercise
      limitations. 

     

    (i)    The
      Holder may not exercise any portion of this Warrant if, immediately after the
      Warrant Shares are issued, the Holder (together with the Holder’s Affiliates)
      would beneficially own more than 4.99% of the number of shares of the Common
      Stock outstanding.  For the purposes of the foregoing sentence, the number
      of shares of Common Stock beneficially owned by the Holder and its Affiliates
      includes the number of shares of Common Stock issuable upon the exercise of
      this
      Warrant, but excludes the number of shares of Common Stock that would be
      issuable upon (i) the Holder’s exercise of the remaining, unexercised portion of
      this Warrant and (ii) the Holder’s or its Affiliates’ exercise or conversion of
      the unexercised or nonconverted portion of any other securities of the Company
      that the Holder or any of its Affiliates own beneficially. 
      Except as set forth in the foregoing sentence, for the purposes of this Section
      2(c),
      beneficial ownership must be calculated in accordance with Section 13(d) of
      the
      Securities and Exchange Act of 1934 (“Exchange
      Act”).

     

    (ii)    The
      Holder acknowledges that the Company is not representing to Holder that the
      calculation described in Section 2(c)(i)
      complies
      with Section 13(d) of the Exchange Act and Holder is solely responsible for
      any
      schedules required to be filed in accordance with it. The determination of
      whether this Warrant is exercisable (in relation to other securities owned
      by
      the Holder and its Affiliates) is in the sole discretion of the Holder, and
      the
      submission of a Notice of Exercise is deemed to be the Holder’s declaration that
      the Holder has determined that this Warrant is exercisable as set out in the
      Notice of Exercise and subject to the limitations in this Section 2(c);
      and the
      Company is not obliged to verify or confirm the accuracy of the Holder’s
      determination.

     

    (iii)    For
      the
      purposes of this Section 2(c),
      in
      determining the number of outstanding shares of Common Stock, the Holder may
      rely on the number of outstanding shares of Common Stock as reflected in the
      most recent of (A) the latest filed of the Company’s Form 10-QSB and Form
      10-KSB, (B) a public announcement by the Company stating the number of shares
      of
      Common Stock outstanding, or (C) any other notice by the Company or the
      Company’s Transfer Agent stating the number of shares of Common Stock
      outstanding.  If Holder asks for it, the Company will within two Trading
      Days confirm orally and in writing to the Holder the number of shares of Common
      Stock then outstanding.

     

    
      
         

      

      
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    (d)    Mechanics
      of Exercise.

     

    (i)    Authorization
      of Warrant Shares.
      The
      Company will issue all Warrant Shares as duly authorized, validly issued, fully
      paid and non-assessable, and free from all taxes, liens and charges (other
      than
      taxes in respect of any transfer occurring contemporaneously with the issue).
      

     

    (ii)    Delivery
      of certificates upon exercise.
      The
      Company’s transfer agent will deliver certificates for Warrant Shares to the
      Holder to the address specified by the Holder in the Notice of Exercise within
      3
      Trading Days from the later of (A) the Company’s receipt of the Notice of
      Exercise, (B) the Holder’s surrender of this Warrant, and (C) the Company’s
      receipt of the Exercise Amount as set out in Section 2(b)
      (“Warrant
      Share Delivery Date”).
      This
      Warrant is deemed to have been exercised on the date the Exercise Amount is
      received by the Company (“Exercise
      Date”);
      and
      the Warrant Shares are deemed to have been issued, and Holder is deemed to
      have
      become a holder of record of the shares for all purposes, on the Exercise
      Date.

     

    (iii)    Delivery
      of new Warrants upon exercise.
      If this
      Warrant is exercised in part, the Company will, when it delivers the certificate
      or certificates representing Warrant Shares, deliver to Holder a new Warrant
      evidencing the rights of Holder to purchase the unpurchased Warrant Shares,
      identical in all other respects with this Warrant.

     

    (iv)    Rescission
      rights.
      If the
      Company fails to cause its transfer agent to transmit to the Holder a
      certificate or certificates representing the Warrant Shares pursuant to this
      Section 2(d)(iv)
      by the
      Warrant Share Delivery Date, then the Holder may rescind the
      exercise.

     

    (v)    No
      fractional shares or scrip.
      No
      fractional shares or scrip representing fractional shares may be issued upon the
      exercise of this Warrant. If the Holder would otherwise be entitled to
      fractional shares upon the exercise, the Company will pay a cash adjustment
      in
      respect of the fraction in an amount equal to the fraction multiplied by the
      Exercise Price.

     

    (vi)    Charges,
      taxes and expenses.
      The
      Company will issue certificates for Warrant Shares in the name of the Holder
      and
      will not charge the Holder for any issue or transfer tax or other incidental
      expense in respect of the issuance of the certificate.

     

    (vii)    Closing
      of books.
      The
      Company will not close its stockholder books or records in any manner that
      prevents the timely exercise of this Warrant.

     

    
      
         

      

      
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    3.    Certain
      Adjustments.

     

    (a)    Stock
      dividends and splits.
      If the
      Company, at any time while this Warrant is outstanding,
      (i)
      pays a stock dividend or otherwise makes a distribution on shares of its Common
      Stock or any other Common Stock Equivalent (which, for avoidance of doubt,
      does
      not include any shares of Common Stock issued by the Company pursuant to this
      Warrant), (ii) subdivides outstanding shares of Common Stock into a larger
      number of shares, (iii) combines outstanding shares of Common Stock into a
      smaller number of shares, or (iv) issues by reclassification of shares of the
      Common Stock any shares of capital stock of the Company, then the Exercise
      Price
      must be multiplied by a fraction of which the numerator is the number of shares
      of Common Stock (excluding treasury shares, if any) outstanding before the
      event
      and of which the denominator is the number of shares of Common Stock outstanding
      after the event, and the number of shares issuable upon exercise of this Warrant
      must be proportionately adjusted by this fraction. Any adjustment made pursuant
      to this Section 3(a)
      is
      effective immediately after the record date for the determination of
      stockholders entitled to receive the dividend or distribution and is effective
      immediately after the effective date in the case of a subdivision, combination
      or re-classification.

     

    (b)    Fundamental
      Transaction.
      If, at
      any time while this Warrant is outstanding,
      (i) the
      Company merges or consolidates with or into another Person, (ii) the Company
      sells all or substantially all of its assets in one or a series of related
      transactions, (iii) any Person completes a tender offer or exchange offer by
      which holders of Common Stock are permitted to tender or exchange their shares
      for other securities, cash or property, or (iv) the Company reclassifies its
      Common Stock or completes any compulsory share exchange pursuant to which the
      Common Stock is effectively converted into or exchanged for other securities,
      cash or property (in any such case, a “Fundamental
      Transaction”),
      then,
      upon any subsequent conversion of this Warrant, the Holder has the right to
      receive, for each Warrant Share that would have been issued upon the exercise
      absent the Fundamental Transaction, the same consideration as the Company has
      given its other holders of its Common Stock for the conversion of their Common
      Stock outstanding at the time of the Fundamental Transaction (the “Alternate
      Consideration”).
      Any
      successor to the Company or surviving entity in a Fundamental Transaction must
      issue to the Holder a new warrant consistent with the foregoing provisions
      with
      evidence of the Holder’s right to exercise the warrant into Alternate
      Consideration. The terms of any agreement pursuant to which a Fundamental
      Transaction is completed must include terms requiring the successor or surviving
      entity to comply with the provisions of this Section 3(b)
      and
      insuring that this Warrant (or any replacement security) is similarly adjusted
      upon any subsequent transaction analogous to a Fundamental
      Transaction.

     

    (c)    Calculations.
      All
      calculations under this Section 3
      must be
      made to the nearest cent or the nearest 1/100th
      of a
      share, as the case may be. The number of shares of Common Stock outstanding
      at
      any given time does not include shares of Common Stock owned or held by or
      for
      the account of the Company. For the purposes of this Section 3,
      the
      number of shares of Common Stock deemed to be issued and outstanding as of
      a
      given date is the sum of the number of shares of Common Stock (excluding
      treasury shares, if any) issued and outstanding.

     

    
      
         

      

      
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    (d)    Notice
      to Holders.
      If the
      Company makes adjustments under this Section 3,
      the
      Company will promptly mail to each Holder a notice containing a description
      of
      the event that required the adjustment. If the Company proposes any transaction
      that affects the rights of the holders of its Common Stock, then the Company
      will notify the Holders of the proposal at least twenty days before the record
      date set for the transaction.

     

    4.    Warrant
      register.
      The
      Company will register this Warrant on its warrant register and will treat the
      registered Holder as the absolute owner for all purposes.

     

    5.    Miscellaneous.

     

    (a)    Title
      to Warrant.
      This
      Warrant is not transferable.

     

    (b)    No
      rights as shareholder until Exercise Date.
      This
      Warrant does not entitle the Holder to any voting rights or other rights as
      a
      shareholder of the Company before the Exercise Date. Upon the surrender of
      this
      Warrant and the payment of the aggregate Exercise Price, the Company will issue
      the Warrant Shares to the Holder as the record owner of the Warrant Shares
      as of
      the close of business on the Exercise Date.

     

    (c)    Loss,
      Theft, Destruction or Mutilation of Warrant.
      The
      Company covenants that upon receipt by the Company of evidence reasonably
      satisfactory to it of the loss, theft, destruction or mutilation of this Warrant
      or any stock certificate relating to the Warrant Shares, and, in case of loss,
      theft or destruction, of indemnity or security reasonably satisfactory to it,
      and upon surrender and cancellation of the Warrant or stock certificate, if
      mutilated, the Company will make and deliver a new Warrant or stock certificate
      of like tenor and dated as of the cancellation, in lieu of the Warrant or stock
      certificate.

     

    (d)    Saturdays,
      Sundays, Holidays, etc.
      If the
      last date for doing anything under this Warrant falls on a Saturday, Sunday
      or a
      legal holiday, then the thing may be done on the next succeeding Trading
      Day.

     

    (e)    Authorized
      Shares.

     

    (i)    The
      Company covenants that, while the Warrant is outstanding, it will reserve from
      its authorized and unissued Common Stock a sufficient number of shares to
      provide for the issuance of the Warrant Shares upon the exercise of any purchase
      rights under this Warrant. The Company further covenants that its issuance
      of
      this Warrant constitutes full authority to its officers who are charged with
      the
      duty of executing stock certificates to execute and issue the necessary
      certificates for the Warrant Shares upon the exercise of the purchase rights
      under this Warrant. The Company will take all such reasonable action as may
      be
      necessary to assure that the Warrant Shares are issued as provided without
      a
      violation of any applicable law or regulation, or of any requirements of the
      Trading Market upon which the Common Stock may be listed or quoted.

     

    
      
         

      

      
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    (ii)    Unless
      waived or consented to by the Holder, the Company will not by any action avoid
      or seek to avoid the observance or performance of any of the terms of this
      Warrant, but will at all times in good faith assist in carrying out of all
      its
      terms and take whatever actions is necessary or appropriate to protect the
      rights of Holder under this Warrant from impairment.

     

    (f)    Jurisdiction.
      All
      questions concerning the construction, validity, enforcement and interpretation
      of this Warrant must be determined in accordance with the provisions of the
      Purchase Agreement.

     

    (g)    Restrictions.
      The
      Holder acknowledges that the Holder’s sale or transfer of the Warrant Shares, if
      not registered, will be subject to restrictions upon resale imposed by state
      and
      federal securities laws.

     

    (h)    No
      waiver.
      No
      course of dealing or any delay or failure to exercise any right hereunder on
      the
      part of Holder operates as a waiver of the right or otherwise prejudices
      Holder’s rights, powers or remedies.

     

    (i)    Notice.
      Any
      notice, request or other document required or permitted to be given or delivered
      by either party to the other must be delivered in accordance with the notice
      provisions of the Purchase Agreement.

     

    (j)    Successors
      and Assigns.
      Subject
      to applicable securities laws, this Warrant inures to the benefit of and binds
      the successors and permitted assigns of the Company and the Holder.

     

    (k)    Amendment.
      Any
      amendment of this Warrant must be in writing and signed by both the Company
      and
      the Holder.

     

    (l)    Severability.
      Wherever possible, each provision of this Warrant must be interpreted under
      applicable law, but if any provision of this Warrant is prohibited by or invalid
      under applicable law, the provision is ineffective to the extent of the
      prohibition or invalidity, without invalidating the remaining provisions of
      this
      Warrant.

     

    (m)    Headings.
      The
      headings used in this Warrant are for the convenience of reference only and
      are
      not, for any purpose, deemed a part of this Warrant.

    
 

    
      
         

      

      
        Page
          6 of
          8

        
          

        

      

      
         

      

       

    

    IN
      WITNESS WHEREOF the Company has caused this Warrant to be executed by its duly
      authorized officer.

     

    Dated:________________________________
           

     

    
      
        	 	
                BULLION RIVER GOLD
                  CORP. 

                 

                
                  By:     
                    /s/ Peter M.
                    Kuhn                                                                  
                    

                       
                    Name: Peter M. Kuhn

                       
                    Title:
                    President

                

              

      

    

     

     

    

    
      
         

      

      
        Page
          7 of
          8

        
          

        

      

      
         

      

    

     

    NOTICE
      OF EXERCISE

    

    To: Bullion
      River Gold Corp.

    

    The
      undersigned hereby elects to purchase _____________ Warrant
      Shares of the Company pursuant to the terms of the attached Warrant (only if
      exercised in full; if exercised in part, attach a copy of the Warrant), and
      tenders herewith payment of the exercise price in full, together with all
      applicable transfer taxes, if any.

     

    Payment
      will take the form of lawful money of United States.

     

    Please
      deliver the Warrant Shares to the following:

     

    ________________________________________________________

     

    ________________________________________________________

     

    ________________________________________________________

     

     

     

    _________________________________________________

    Signature
      of Holder or authorized signatory of Holder

     

    Name
      of
      Holder:____________________________________________________          

    Name
      of
      authorized signatory:_________________________________________        

    Title
      of
      authorized signatory:_____________________________________        

    Date:_________________________

     

     

    Page
      8 of 8

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