Document:

Gryphon Gold Corporation: Exhibit 10.3 - Filed by newsfilecorp.com

Execution Version

THIRD AMENDMENT TO
SENIOR SECURED GOLD STREAM
CREDIT AGREEMENT

          THIS
THIRD AMENDMENT TO SENIOR SECURED GOLD STREAM CREDIT AGREEMENT (this
“Amendment”) is made as of the 30th day of January 2013

A M O N G:

GRYPHON GOLD CORPORATION, a
corporation incorporated pursuant to the laws of the State of Nevada, as the
borrower (the “Borrower”),

BOREALIS MINING COMPANY LLC
(formerly known as Borealis Mining Company), a Nevada limited liability
company (the “Original Guarantor”),

–and-

WATERTON GLOBAL VALUE, L.P., a
limited partnership formed under the laws of the British Virgin Islands, as the
lender (the “Lender”).

RECITALS

         
WHEREAS, the Borrower, the Original Guarantor and the Lender are parties
to a Senior Secured Gold Stream Credit Agreement dated April 18, 2012, as
amended by that certain First Amendment to the Senior Secured Gold Stream Credit
Agreement dated September 24, 2012, as amended by that certain Second Amendment
to the Senior Secured Gold Stream Credit Agreement dated January 18, 2013 (the
“Second Amendment”) (as amended, modified, supplemented, extended or
restated from time to time, the “Credit Agreement”), whereby the Lender
agreed to loan up to the aggregate amount of U.S. Twenty-Three Million Dollars
(US$23,000,000) to the Borrower on the terms and conditions set forth
herein;

         
WHEREAS, effective as of January 30, 2013, the Original Guarantor
converted its corporate form from that of a Nevada corporation to a Nevada
limited liability company (the “LLC Conversion”);

         
WHEREAS, contemporaneously with the execution and delivery of this
Amendment, the Borrower, the Original Guarantor, the Lender, and the Lender’s
Affiliate, Borealis Holdings LLC, a Nevada limited liability company
(“Borealis Holdings”), entered into that certain Contribution Agreement
dated January 30, 2013 (the “Contribution Agreement”), whereby the
Borrower sold, transferred and assigned to Borealis Holdings Six Million
(6,000,000) Units in consideration for the Lender forgiving a portion of the
Loan under the Credit Agreement;

         
WHEREAS, in connection with the purchase and sale of Units under the
Contribution Agreement, the Borrower, the Original Guarantor, and Borealis
Holdings have entered into that certain Amended and Restated Limited Liability
Company Agreement dated January 30, 2013 (the “LLC Agreement”) regarding
the business and affairs of the Original Guarantor; and 

         
WHEREAS, as a result of the transactions contemplated under the
Contribution Agreement and the LLC Agreement, the Borrower, the Original
Guarantor and the Lender desire to amend the Credit Agreement and to ratify and
confirm the Credit Agreement (as so amended) and the other Credit Documents.

AGREEMENT

          NOW
THEREFORE, in consideration of the premises and mutual covenants set out in
this Amendment and other good and valuable consideration, the receipt and
sufficiency of which is acknowledged and confirmed, the parties hereby agree as
follows:

	1. 	
      Defined Terms. Capitalized terms used but not
      defined in this Amendment shall have the meanings given thereto in the
      Credit Agreement.

	 	 	 
	2. 	
      Agreements and Amendments to the Credit
      Agreement.

	 	 	 
		a. 	
      Subject to the terms and conditions set forth herein, the
      Credit Agreement is hereby amended to the extent necessary to give effect
      to the provisions of this Amendment and to incorporate the provisions of
      this Amendment into the Credit Agreement. The Credit Agreement, together
      with this Amendment (upon its effectiveness), shall be read together and
      have effect so far as practicable as though the provisions thereof and the
      relevant provisions hereof are contained in one document.

	 	 	 
		b. 	
      Schedule 1.1(b) of the Credit Agreement is hereby amended
      by replacing the existing Schedule 1.1(b) in its entirety with Schedule
      1.1(b) attached hereto.

	 	 	 
		c. 	
      Schedule 1.1(h) attached to this Amendment is hereby
      appended to the Credit Agreement as Schedule 1.1(h) thereto.

	 	 	 
		d. 	
      Exhibit E attached to this Amendment is hereby appended
      to the Credit Agreement as Exhibit E thereto.

	 	 	 
		e. 	
      Section 1.1 of the Credit Agreement is hereby amended by
      deleting clause (d) from the definition of “Change of Control” in
      its entirety and substituting it with the following clause (d):

	 	 	 
			
      “(d) Continuing Directors shall not constitute at least a
      majority of the Directors of the Borrower; or”

	 	 	 
		f. 	
      Section 1.1 of the Credit Agreement is hereby amended by
      deleting the definition of “Commitment Amount” in its entirety and
      substituting it with the following definition:

	 	 	 
			
      ““Commitment Amount” means six million six hundred
      fifty thousand dollars ($6,650,000).”

	 	 	 
		g. 	
      Section 1.1 of the Credit Agreement is hereby amended by
      adding the following definition:

	 	 	 
			
      “”Continuing Directors” shall mean, at any date,
      an individual (a) who is a Director of the Borrower as of January 30,
      2013, or (b) who has been nominated to be a Director by the Directors of
      the Borrower that were Directors as of January 30,
2013.”

- 2 -

	 	h. 	
      Section 1.1 of the Credit Agreement is hereby amended by
      adding the following definition:

	 	 	 
	 		
      ““Dilution Percentage” means the Dilution
      Percentage set forth on Schedule 1.1(h) hereto.”

	 	 	 
	 	i. 	
      Section 1.1 of the Credit Agreement is hereby amended by
      adding the following definition:

	 	 	 
	 		
      ““Membership Interest Assignment” means an
      assignment of Units executed by the Borrower substantially in the form of
      Exhibit E or such other assignment as Lender may determine.”

	 	 	 
	 	j. 	
      Section 1.1 of the Credit Agreement is hereby amended by
      adding the following definition:

	 	 	 
	 		
      ““Permitted Change of Control” means the
      occurrence of any Change of Control of the Borrower resulting from the
      sale or placement by the Borrower of shares of its capital stock or other
      Equity Interests from its treasury in a public offering or directed
      private placement, so long as the net proceeds of such sale or placement
      are used by the Borrower to (a) repay any outstanding Default Loans under
      and as defined in the LLC Agreement in accordance with the terms of the
      LLC Agreement, (b) satisfy any Capital Contributions (as defined in the
      LLC Agreement) that have been called or are scheduled in the Program and
      Budget during the subsequent two (2) month period following the closing of
      such sale or placement, and (c) satisfy the payments due under Section
      3.1(a) of the Agreement for the subsequent three (3) Repayment Dates
      following the closing of such sale or placement; provided that any
      net proceeds of any such sale or placement remaining after the payments in
      the foregoing clauses (a) – (c) may be used by the Borrower for any
      general corporate purpose.”

	 	 	 
	 	k. 	
      Section 1.1 of the Credit Agreement is hereby amended by
      deleting the definition of “Repayment Date” in its entirety and
      substituting it with the following definition:

	 	 	 
	 		
      ““Repayment Date” means each Repayment Date set
      forth on Schedule 1.1(b).”

	 	 	 
	 	l. 	
      Section 1.1 of the Credit Agreement is hereby amended by
      deleting subsection (a) to the definition of “Repayment Period” in
      its entirety and substituting it with the following
  definition:

	 	“(a) 	if the full Commitment Amount is advanced on or
      prior to January 31, 2013, the period commencing on January 31, 2013 and
      ending on (and including) the Stated Maturity Date.”

	 	m. 	
      Section 1.1 of the Credit Agreement is hereby amended by
      adding the following definition:

	 	 	 
	 		
      ““Repayment Units” means, in relation to any
      Repayment Date, the number of Units equal to the product of: (i) the
      Dilution Percentage for the month which such Repayment Date relates
      times (ii) four million (4,000,000) Units.

- 3 -

By way of example, for the payment due
on October 31, 2013, the Repayment Units would be 160,000 Units, as demonstrated
by the following calculation:

4% x 4,000,000 Units = 160,000 Units”

	 	n. 	
      Section 1.1 of the Credit Agreement is hereby amended by
      deleting the definition of “Stated Maturity Date” in its entirety
      and substituting it with the following definition:

	 	 	 
	 		
      ““Stated Maturity Date” means November 30,
      2014.”

	 	 	 
	 	o. 	
      Section 1.1 of the Credit Agreement is hereby amended by
      adding the following definition:

	 	 	 
	 		
      ““Units” means the class of units of the Original
      Guarantor that are a measure of a member’s share of net profits and net
      loss of the Original Guarantor and which are designated as the “Class A
      Units”.”

	 	 	 
	 	p. 	
      The Lender and Borrower hereby acknowledge and agree that
      the Additional Amount (as defined in the Second Amendment) advanced to the
      Borrower under the terms of the Credit Agreement shall, upon the Effective
      Date of the LLC Agreement, be deemed to be a “Default Loan” under the LLC
      Agreement, and all rights, obligations, liabilities, covenants, duties and
      remedies of the parties with respect to the Additional Amount shall
      thereafter be determined pursuant to the terms and conditions of the LLC
      Agreement.

	 	 	 
	 	q. 	
      Section 3.1(a) of the Credit Agreement is hereby amended
      and replaced, in its entirety, with the
following:

		“(a) 	On each Repayment Date, the Borrower shall
      either (i) deliver the Monthly Repayment Ounces (relating to such
      Repayment Date) to the Lender’s Gold Account; (ii) pay to the Lender the
      Cash Payment Amount (relating to such Repayment Date); or (iii) assign the
      Repayment Units (relating to such Repayment Date) to the Lender or its
      designated Affiliate.” 

	 	r. 	
      Section 4.2 of the Credit Agreement is hereby amended and
      replaced, in its entirety, with the following:

“4.2 Change of Control.

In the event that a Change of Control
occurs, other than in the event of a Permitted Change of Control (which is
expressly permitted hereby), the Lender may, in its sole discretion, by written
notice to the Borrower, require the Borrower to repay the Loan in full. If the
Lender requires the Borrower to repay the Loan in full, the Borrower shall do so
by paying to the Lender an amount in cash equal to the amount arrived at when
(i) dividing the Full Prepayment Amount by the product of 0.80 multiplied by the
Spot Price on the Business Day immediately preceding the day the Lender requires
such prepayment and (ii) multiplying the result thereof by such Spot Price.
Together with the foregoing prepayment of the Loan, the Borrower shall
simultaneously pay the Lender any accrued and unpaid interest on any part of the Loan so
      prepaid together with all other fees, charges and costs and other amounts
payable hereunder.”

- 4 -

	 	s. 	
      Section 5.1(a) of the Credit Agreement is hereby amended
      and replaced, in its entirety, with the
following:

		“(a) 	The Borrower shall make any payment required to
      be made by it to the Lender without set-off, deduction, withholding, or
      counterclaim or cross- claim, by, as the case may be: (a) delivering the
      amount of Gold that is then due to the Lender’s Gold Account, (b)
      depositing the Cash Payment Amount or other amount of cash then due
      (including with respect to each Interest Payment Amount) with the Lender,
      or (c) delivering to the Lender or an Affiliate of the Lender’s (as
      designated by the Lender) (i) a Membership Interest Assignment executed by
      the Borrower with respect to the Repayment Units, (ii) an executed stock
      transfer, (iii) a written direction to the Original Guarantor to transfer
      the Repayment Units on the books of the company, and (iv) a certificate or
      certificates representing the Repayment Units, in each case by not later
      than 12:00 p.m. (Toronto time) on the date the payment is due, to an
      account or 
	 	  	address designated by the Lender.”
  

	 	t. 	
      Section 9.1(k) of the Credit Agreement is hereby amended
      and replaced, in its entirety, with the
following:

		“(a) 	Change of Control. A Change of Control
      occurs, other than a Permitted Change of Control;”

	3. 	
      Representations and Warranties.

	 	 	 
		a. 	
      The Borrower and the Original Guarantor hereby remake and
      restate each of their representations and warranties in the Credit
      Agreement, as amended hereby, and the other Credit Documents, effective as
      of the date of this Amendment, which representations and warranties are
      incorporated herein by reference as if fully set forth; provided
      that the Disclosure Schedules shall be deemed to be updated by the
      information set forth in the Disclosure Schedules to the Contribution
      Agreement.

	 	 	 
		b. 	
      The Borrower and the Original Guarantor hereby further
      represent and warrant that (i) this Amendment has been duly authorized,
      executed and delivered by each of them, (ii) this Amendment is binding
      upon and enforceable against each of them in accordance with its terms,
      (iii) no Default or Event of Default has occurred and is continuing or
      will occur as a result of the consummation of the transactions
      contemplated hereby, and (iv) the Recitals set forth above are true and
      correct in all respects.

	 	 	 
	4. 	
      Conditions Precedent. This Amendment shall become
      effective as of the date hereof upon (and only upon) satisfaction of the
      following conditions precedent:

	 	 	 
		a. 	
      The Lender shall have received (i) an original
      certificate or certificates representing 4,000,000 Units of the Original
      Guarantor owned by the Borrower and (ii) an executed original stock
      transfer with respect to such 4,000,000 Units, each to be held by the Lender pursuant to the terms of
      that certain Pledge Agreement dated April 18, 2012 given by the Borrower
  in favour of the Lender.

- 5 -

		b. 	
      The Lender shall have received a duly executed original
      ratification and confirmation of the Security Documents from the Borrower
      and the Original Guarantor confirming that the Security Documents remain
      in full force and effect as valid and perfected Liens on the
      Collateral.

	 	 	 
		c. 	
      The Lender shall have received such amendments to the
      Security Documents (including the Borealis DOT) and other Instruments as
      the Lender may reasonably request, in each case, in form and substance
      reasonably satisfactory to the Lender.

	 	 	 
		d. 	
      All financing statements filed by the Lender in
      connection with the Credit Agreement naming the Original Guarantor as the
      debtor shall have been amended and filed to reflect the LLC
    Conversion.

	 	 	 
		e. 	
      The Lender shall have received such other Instruments,
      certificates, information and opinions as the Lender may reasonably
      request, in each case, in form and substance reasonably satisfactory to
      the Lender.

	 	 	 
	5. 	
      Miscellaneous Provisions.

	 	 	 
		a. 	
      Subject to the amendments described herein, the Credit
      Agreement is in all other respects ratified and confirmed and shall
      continue in full force and effect, binding the parties hereto in
      accordance with the terms thereof. As a condition to the Lender entering
      into this Amendment, the Borrower and the Original Guarantor irrevocably
      confirm and agree that each of the Credit Documents executed by the
      Borrower and/or the Original Guarantor, and all guaranties, grants of
      security, debentures, mortgages, liens, deeds, pledges and rights
      thereunder, are hereby extended, continued, ratified and confirmed, remain
      in full force and effect and apply to the Credit Agreement as amended
      hereby. For the avoidance of doubt, (i) the obligations of the parties
      described in this Amendment are “Obligations” for the purposes of the
      Credit Agreement; and (ii) this Amendment shall be a “Credit Document” for
      the purposes of the Credit Agreement.

	 	 	 
		b. 	
      Nothing contained herein shall be construed to release,
      terminate or act as a novation of, in whole or in part, any Credit
      Document or any guaranty, lien, mortgage, deed, pledge or security
      interest granted pursuant thereto. All references to the Credit Agreement
      in each of the Credit Documents and in any other document or instrument
      shall hereafter be deemed to refer to the Credit Agreement as amended
      hereby. This Amendment shall not be construed as a waiver or amendment of
      any other provision of the Credit Agreement or the other Credit Documents
      or for any purpose, or a consent to any other, further or future action on
      the part of the Borrower or the Original Guarantor that would require the
      waiver or consent of the Lender, except, in each case, as expressly set
      forth herein.

	 	 	 
		c. 	
      This Amendment shall be governed by and construed in
      accordance with the laws of the Province of Ontario and the federal laws
      of Canada applicable therein.

- 6 -

	 	d. 	
      This Amendment shall be binding upon and inure to the
      benefit of each of the parties hereto and each of their respective
      successors and assigns.

	 	 	 
	 	e. 	
      This Amendment and any amendments, waivers, consents, or
      supplements may be executed in any number of counterparts in separate
      counterparts, each of which when so executed and delivered shall be deemed
      an original, but all of which counterparts together shall constitute one
      and the same instrument. This Amendment shall become effective upon the
      execution of a counterpart hereof by each of the parties. This Amendment
      may be validly executed and delivered by facsimile, portable document
      format (.pdf) or other electronic transmission, and delivery of an
      executed counterpart of a signature page to this Amendment, any amendment,
      waiver, consent or supplement, or to any other Credit Document, by
      facsimile, portable document format (.pdf) or other electronic delivery
      (including e-mail) shall be as effective and binding as delivery of a
      manually executed counterpart thereof.

	 	 	 
	 	f. 	
      The execution, delivery and effectiveness of this
      Amendment shall not prejudice, limit, or operate, or be deemed to operate,
      as a waiver of, any rights, powers or remedies of the Lender under the
      Credit Agreement or any other Credit Document or constitute a waiver of
      any provision thereof, except as expressly set forth herein.

	 	 	 
	 	g. 	
      The Borrower and the Original Guarantor shall execute,
      acknowledge and deliver to the Lender such other and further documents and
      instruments and do or cause to be done such other acts as the Lender
      reasonably determines to be necessary or desirable to effect the intent of
      the parties to this Amendment or otherwise to protect and preserve the
      interests of the Lender hereunder, promptly upon request of the
    Lender.

	 	 	 
	 	h. 	
      All costs and expenses reasonably incurred by the Lender
      (including legal, the “Costs”) in connection with the preparation,
      negotiation and execution of this Amendment and any further documents and
      instruments reasonably necessary or desirable to effect the intent of the
      parties to this Amendment, shall be paid by the Borrower to the Lender, in
      cash, promptly on demand. For the avoidance of doubt, and irrespective of
      the approximate cost estimate provided in this section, the Borrower shall
      only pay those Costs actually incurred by the Lender.

	 	 	 
	 	i. 	
      This Amendment and all amendments contemplated herein
      shall become automatically effective upon this Amendment being fully
      executed and delivered by each of the parties.

[Remainder of this page is intentionally left blank]

- 7 -

          IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed by their respective officers thereunto duly authorized as of the date
first above written.

	 	BORROWER: 
	 	GRYPHON GOLD CORPORATION 
	 	 	  
	 	 	  
	 	By: 	
	 	 	Authorized Signing Officer 
	 	 	  
	 	 	  
	 	LENDER: 
	 	 
	 	WATERTON GLOBAL VALUE, L.P., 
	 	BY ITS INVESTMENT MANAGER, 
	 	ALTITUDE MANAGEMENT LIMITED 
	 	 	  
	 	 	  
	 	By: 	
	 	 	Authorized Signing Officer 
	 	 	  
	 	ORIGINAL GUARANTOR: 
	 	 
	 	BOREALIS MINING COMPANY LLC 
	 	 	  
	 	 	  
	 	 	  
	 	By: 	
	 	 	Authorized Signing Officer 

Signature Page to Third Amendment to Senior Secured Gold
Stream Credit Agreement

Schedule
1.1(b)

Monthly Repayment Figures 

	

      REPAYMENT DATE 	MONTHLY
      

    REPAYMENT 
AMOUNT 
($USD) 
	Thursday, January
      31, 2013 	$ 50,000 
	Thursday, February
      28, 2013 	$ 166,667 
	Sunday, March 31,
      2013 	$ 306,349 
	Tuesday, April 30,
      2013 	$ 306,349 
	Friday, May 31,
      2013 	$ 306,349 
	Sunday, June 30,
      2013 	$ 306,349 
	Wednesday, July
      31, 2013 	$ 306,349 
	Saturday, August
      31, 2013 	$ 306,349 
	Monday, September
      30, 2013 	$ 306,349 
	Thursday, October
      31, 2013 	$ 306,349 
	Saturday, November
      30, 2013 	$ 306,349 
	Tuesday, December
      31, 2013 	$ 306,349 
	Friday, January
      31, 2014 	$ 306,349 
	Friday, February
      28, 2014 	$ 306,349 
	Monday, March 31,
      2014 	$ 306,349 
	Wednesday, April
      30, 2014 	$ 306,349 
	Saturday, May 31,
      2014 	$ 306,349 
	Monday, June 30,
      2014 	$ 306,349 
	Thursday, July 31,
      2014 	$ 306,349 
	Sunday, August 31,
      2014 	$ 306,349 
	Tuesday, September
      30, 2014 	$ 306,349 
	Friday, October
      31, 2014 	$ 306,349 
	Sunday, November
      30, 2014 	$ 306,353 
	TOTAL 	$ 6,650,000 

Schedule 1.1(b), Page 1

Schedule 1.1(h)

Dilution

	

      REPAYMENT DATE 	DILUTION
      

    PERCENTAGE (%) 
	Thursday, January
      31, 2013 	0% 
	Thursday, February
      28, 2013 	1% 
	Sunday, March 31,
      2013 	2% 
	Tuesday, April 30,
      2013 	2% 
	Friday, May 31,
      2013 	2% 
	Sunday, June 30,
      2013 	3% 
	Wednesday, July
      31, 2013 	3% 
	Saturday, August
      31, 2013 	3% 
	Monday, September
      30, 2013 	3% 
	Thursday, October
      31, 2013 	4% 
	Saturday, November
      30, 2013 	4% 
	Tuesday, December
      31, 2013 	4% 
	Friday, January
      31, 2014 	4% 
	Friday, February
      28, 2014 	5% 
	Monday, March 31,
      2014 	5% 
	Wednesday, April
      30, 2014 	5% 
	Saturday, May 31,
      2014 	5% 
	Monday, June 30,
      2014 	5% 
	Thursday, July 31,
      2014 	5% 
	Sunday, August 31,
      2014 	6% 
	Tuesday, September
      30, 2014 	6% 
	Friday, October
      31, 2014 	6% 
	Sunday, November
      30, 2014 	6% 

Schedule 1.1(h), Page 1

EXHIBIT E

FORM OF 
MEMBERSHIP INTEREST ASSIGNMENT

          This
MEMBERSHIP INTEREST ASSIGNMENT (this “Assignment”) is made as of [[*]],
2013 (the “Closing Date”), by the undersigned (“Assignor”)
pursuant to that certain Senior Secured Gold Stream Credit Agreement dated April
18, 2012, as amended by that certain First Amendment to the Senior Secured Gold
Stream Credit Agreement dated September 24, 2012, as amended by that certain
Second Amendment to the Senior Secured Gold Stream Credit Agreement dated
January 18, 2013, as amended by that certain Third Amendment to Senior Secured
Gold Stream Credit Agreement dated as of January 30, 2013 (the
“Agreement”), by and among Gryphon Gold Corporation, a corporation
organized and existing under the laws of Nevada, Borealis Mining Company LLC, a
limited liability company organized and existing under the laws of Nevada (the
“Company”), and Waterton Global Value, L.P., by its Investment Manager,
Altitude Management Limited (“Waterton”).

          For good
and valuable consideration, the receipt of which is hereby acknowledged,
Assignor does hereby transfer, convey and assign unto ___________________, all
of Assignor’s right, title and interest in and to ______________________Class
___ Units of the Company (the “Purchased Membership Interest”), free and
clear of any lien or restriction, and such Purchased Membership Interest is
assigned and transferred together with all right, title and interest of Assignor
in and to all income, gains, losses, deductions and credits of the Company for
all periods on or after the Closing Date, subject in all respects to the terms
of the Agreement.

	 	ASSIGNOR: 
	 	 
	 	[NAME] 
	 	 
	 	 
	 	By: 	 
	 	Name: 
	 	Title:Teckmine Industries, Inc.: Exhibit 10.1 - Filed by newsfilecorp.com

January 31, 2013

	VICTORY ELECTRONIC CIGARETTES LLC 
	1880 Airport Drive 
	Ball Ground GA 30107 

Attention: Marc Hardgrove

Dear Sirs:

	 
	Commitment Letter 

Teckmine Industries, Inc. (the “Lender”) has agreed to
loan Victory Electronic Cigarettes LLC (the “Borrower”) USD$500,000 upon
and subject to the terms and conditions contained in this commitment letter
(“Commitment”).

	1. 	
      Definitions and Interpretation:

	 	 	 
		(a) 	
      Unless there is something in the subject matter or
      context necessarily inconsistent therewith, capitalized words and terms
      used in this Commitment, in Schedule A hereto and in any amendment or
      supplement hereto will have the meanings ascribed to them herein or in
      Schedule A hereto, as the case may be.

	 	 	 
		(b) 	
      The provisions of Schedule A attached hereto, are
      incorporated into this Commitment and form a part hereof.

	 	 	 
	2. 	
      Amount of Loan:

	 	 	 
		
      Subject to the terms and conditions of this Commitment,
      the Lender will make a secured loan available to the Borrower in a
      principal amount (the “Principal”) not exceeding USD$500,000 (the
      “Loan”).

	 	 	 
	3. 	
      Purpose:

	 	 	 
		
      To purchase inventory and the shipment of that inventory,
      finance trade accounts receivable, and the payment of business expenses
      except that no funds from the Loan may be used for a payment to a
      Non-Arm’s Length Party.

	 	 	 
	4. 	
      Interest Rate and Payments:

	 	 	 
		
      The balance outstanding under the Loan will bear interest
      at a rate equal to 12% per annum. Interest shall be calculated monthly and
      payable monthly. The Borrower shall pay the estimated interest for each
      month not less than 5 days prior to the end of that month to the Lender.
      Any adjustments to the estimated interest shall be made at the same time
      as the next month’s estimated interest
payment.

Page 2

	5. 	
      Disbursement:

	 	 
		
      Subject to the provisions of this Commitment, the Loan
      shall be made available to the Borrower in two tranches, the first tranche
      in the Principal sum of USD$200,000 promptly upon execution of this
      Commitment (the “First Tranche”) and the second tranche in the
      Principal sum of USD$300,000 promptly upon execution of the Security
      Documents (the “Second Tranche”). The Borrower acknowledges that
      the First Tranche will be secured by the Security Documents regardless of
      the fact that such documents will be executed subsequent to advancement of
      the First Tranche.

	 	 
	6. 	
      Repayment:

	 	 
		
      The Loan, including Principal, interest, and any fees
      owing with respect thereto shall come due and be repaid in full on January
      31, 2014, unless and until an Event of Default occurs, whereupon all of
      the Indebtedness outstanding shall, at the option of the Lender,
      immediately become due and payable, subject to any applicable cure
      period.

	 	 
	7. 	
      Prepayment:

	 	 
		
      The Borrower will be entitled to prepay at any time,
      without penalty, the whole or any portion of the Principal balance
      outstanding under the Loan, provided that the Lender shall be provided
      with not less than 30 days written notice of the Borrower’s intent to
      pre-pay and provided further that such prepayment will not discharge any
      security in favour of the Lender while any Principal, interest or any
      other fee or amount is owed pursuant to this Commitment.

	 	 
	8. 	
      Security:

	 	 
		
      As security for repayment of the Loan, the Borrower will
      provide or cause to be provided to and in favour of the Lender, in form
      and terms satisfactory to the Lender’s solicitors, the following security
      which will be negotiated and executed prior to advancing the Second
      Tranche. The security documentation to be provided will contain, among
      other things, all terms and conditions, including the covenants,
      warranties, and representations of the Borrower, in the Lender’s usual
      forms of security and supporting documents:

	 	(a) 	
      General Security Agreement dated for reference January
      31, 2013 granting to the Lender a first security interest in all presently
      owned and after acquired personal property and a floating charge over all
      of its other property, assets and undertaking;

	 	 	 
	 	(b) 	
      if, on the date of entry into the Security Documents, the
      Borrower is a:

	 	(i) 	
      LLC, a Collateral Assignment Agreement signed by each
      member of the Borrower (the “Members”) assigning each member’s
      entire interest in the Borrower to the Lender, or

	 	 	 
	 	(ii) 	
      corporation, a Pledge and Assignment of Securities made
      by each shareholder of the Borrower (the “Shareholders”) in favour
      of the Lender with respect to the Shares;

	 	(c) 	
      USD$500,000 Debenture made by the Borrower in favour of
      the Lender; and

Page 3

		(d) 	
      all such supporting certificates, resolutions and
      solicitor opinions as the Lender may reasonably require. If the
      circumstances set out in section 8(b)(i) apply, each member of the
      Borrower will, immediately upon conversion of the Borrower from a LLC to a
      corporation, provide the documents set out in section 8(b)(ii).

	 	 	 	 
	9. 	
      Events of Default:

	 	 	 	 
		(a) 	
      At the option of the Lender, the whole of the outstanding
      balance of the Loan will immediately become payable and the Security
      Documents will become enforceable upon the happening of any of the
      following events:

	 	 	 	 
			(i) 	
      Default - if the Borrower makes default in any payment of
      Principal, interest, or other money payable by it hereunder or under any
      of the Security Documents when the same becomes due hereunder or
      thereunder, or if the Borrower makes default in the observance or
      performance of something required to be done or some covenant or condition
      required to be observed or performed herein or in the Security Documents
      and, if such default is capable of being cured by the Borrower, the same
      is not cured within 15 calendar days (or, if such default is capable of
      being cured by the Borrower but not within such period of time and the
      Borrower has commenced taking action to cure such default within such
      period of time and diligently and in good faith continues taking such
      action, such greater period of time, not exceeding an additional 15
      calendar days as may be necessary to cure such default);

	 	 	 	 
			(ii) 	
      Misrepresentation - if any representation or warranty
      given by the Borrower to the Lender is untrue in any material
    respect;

	 	 	 	 
			(iii) 	
      Winding-Up - if an order is made or a resolution passed
      for the winding-up of the Borrower, or if a petition is filed for the
      winding-up of the Borrower;

	 	 	 	 
			(iv) 	
      Bankruptcy – if the Borrower commits or threatens to
      commit any act of bankruptcy or becomes insolvent or makes an assignment
      or proposal under any jurisdiction, or a general assignment in favour of
      its creditors, a bulk sale of its assets, or if a bankruptcy petition is
      filed or presented against the Borrower that is not contested by the
      Borrower in good faith;

	 	 	 	 
			(v) 	
      Receivership - if a receiver, receiver and manager or
      receiver-manager or any person with like powers is appointed for all or
      any of the assets of the Borrower;

	 	 	 	 
			(vi) 	
      Arrangement - if any proceedings with respect to the
      Borrower are commenced under the Companies Creditors Arrangement Act
      or the Bankruptcy and Insolvency Act or equivalent
      legislation;

	 	 	 	 
			(vii) 	
      Cease Business – if the Borrower ceases or threaten to
      cease to carry on its business;

	 	 	 	 
			(viii) 	
      Change of Control – if, in the opinion of the Lender,
      effective control of the Borrower changes, other than the
    Acquisition;

Page 4

	 	(ix) 	
      Transfer of Property – if, without the prior written
      consent of the Lender, the Borrower transfers a material portion of its
      property to any person other than in the ordinary course of
    business;

	 	 	 
	 	(x) 	
      Property in Jeopardy - if the Lender in good faith
      believes, and has commercially reasonable grounds to believe, that the
      prospect of repayment of the Loan is impaired or that any of the property
      of the Borrower is, or is about to be, placed in jeopardy;

	 	 	 
	 	(xi) 	
      Execution - if any execution, sequestration, extent, or
      any other process of any kind is levied or enforced upon or against the
      property of the Borrower or any material part thereof and remains
      unsatisfied for a period of 15 days as to personal property or 4 weeks as
      to real property, unless such process is disputed in good faith and in the
      reasonable opinion of the Lender does not jeopardise or impair the
      security constituted by the Security Documents in any material
  way;

	 	 	 
	 	(xii) 	
      Distress - if a distress or analogous process is levied
      upon the property of the Borrower or any material part thereof, unless the
      process is disputed in good faith and adequate security is given to pay
      the amount claimed in full;

	 	 	 
	 	(xiii) 	
      Subsequent Encumbrances - if, without the prior written
      consent of the Lender, the Borrower further mortgages, charges, or
      otherwise encumbers a material portion of its property to any person other
      than the Lender; or

	 	 	 
	 	(xiv) 	
      Pledge of Shares –if one or more members of the Borrower
      fails to provide the documents contemplated in section 8(b)(ii) within 15
      days following conversion of the LLC into a corporation but only in the
      circumstances where the Borrower originally executed the Security
      Documents as a LLC and subsequently converts into a
  corporation.

Nothing contained herein will be
construed or interpreted as imposing an express or implied limitation upon or to
prejudice the Lender’s right to demand payment of the Loan in full at any
time.

	10. 	
      Negative Covenants:

	 	 	 
		
      At all times during the term of the Loan, the Borrower
      will not, without the prior written consent of the Lender:

	 	 	 
		(a) 	
      make revolving loans to or investments in, or provide
      guarantees or indemnities or otherwise give financial assistance to, any
      person, other than in the ordinary course of business;

	 	 	 
		(b) 	
      grant or allow any lien, charge, lease or any other
      encumbrance, whether fixed or floating, other than a purchase money
      security interest, to be registered against the assets of the Borrower,
      except in favour of the Lender; or

	 	 	 
		(c) 	
      issue, grant, permit or incur any debt except in favour
      of the Lender, other than in the ordinary course of
  business.

Page 5

	11. 	
      Financial Statements and Reports:

	 	 	 	 
		
      The Borrower will provide the following management
      prepared financial information to the Lender prepared in accordance with
      United States GAAP applied on a consistent basis with respect to prior
      periods:

	 	 	 	 
		(a) 	
      annual financial statements for the Borrower’s most
      recently completed financial year;

	 	 	 	 
		(b) 	
      applicable interim financial statements for any completed
      quarterly period subsequent to the year-end set out in Section 11(a);
      and

	 	 	 	 
		(c) 	
      applicable month-end financial statements for any
      completed monthly period subsequent to the quarterly period set out in
      Section 11(b).

	 	 	 	 
	12. 	
      Fees and Costs:

	 	 	 	 
		(a) 	
      Subject to waiver of the loan fee by the Lender upon the
      closing of the Acquisition as described below, the Borrower will pay to
      the Lender a non-refundable loan fee of USD$200,000 (the “Loan
      Fee”). The Borrower acknowledges and agrees that the Loan Fee is
      payable to the Lender as consideration for the time, effort and expenses
      of the Lender and its employees and agents to:

	 	 	 	 
			(i) 	
      review and/or study documents pertaining to the
      transaction(s) contemplated hereby (including but not limited to any
      credit reports and financial statements);

	 	 	 	 
			(ii) 	
      reserve funds in contemplation of the Loan; and

	 	 	 	 
			(iii) 	
      forego any opportunities to use the funds
    elsewhere.

	 	 	 	 
		(b) 	
      The Borrower agrees that the actual determination of the
      costs and expenses so incurred by the Lender is not feasible and the Loan
      Fee represents a reasonable estimate thereof and is payable to the Lender
      in the manner set out below without set-off, abatement or
  deduction.

	 	 	 	 
			
      The Borrower further agrees that the Loan Fee will be
      earned by the Lender on the issuance of this Commitment to the Borrower
      and payable to the Lender on the earlier of:

	 	 	 	 
			(i) 	
      the occurrence of an Event of Default, subject to any
      applicable cure period; or

	 	 	 	 
			(ii) 	
      on the date that the Formal Agreement is terminated in
      accordance with its terms, or, if the Formal Agreement is not entered
      into, on the date that the Borrower and the Lender decide not to proceed
      with the Acquisition in accordance with the terms of the Letter of Intent
      (a “Termination Event”), unless extended by the Lender in writing
      in its sole discretion.

	 	 	 	 
			
      Notwithstanding the above, upon the closing of the
      Acquisition, the Lender will waive the Loan Fee in its entirety. In the
      event of a Termination Event and provided such event is not the result of
      any breach of any term of the Formal Agreement by the Borrower, and is not
      the result of the Borrower being unable or unwilling to close the
      Acquisition or proceed with the Letter of Intent, as applicable, (the
      “No-Fault Event”), then the Loan Fee shall be reduced to
      USD$15,000. Additionally, and in the event only the
First Tranche is advanced, the applicable Loan Fee payable in
      accordance with this Section 12 shall be reduced by 40% (i.e. USD$80,000
      in the circumstances set out in Section 12(b)(i) and USD$6,000 in the
  circumstances involving a No-Fault Event.

Page 6

	 		
      In that regard the Borrower acknowledges and agrees that
      the Loan Fee represents a genuine pre-estimate of such liquidated damages
      and is not a penalty and that the consequences of a breach of the
      provisions of this Commitment are such as to make precise pre-estimation
      of such damages very difficult.

	 	 	 
	 		
      It is also understood and agreed that the Lender will
      have the right to enforce payment of any outstanding balance of the Loan
      Fee and, except as explicitly set out herein, nothing herein contained
      shall release any person from liability to pay the balance of the Loan
      Fee.

	 	 	 
	 		
      The foregoing is without prejudice to the rights of the
      Lender to obtain from the Borrower by legal action, specific performance
      of the Borrower’s covenants and obligations hereunder, or any other
      remedies available at law or in equity to the Lender.

	 	 	 
	 	(c) 	
      The Borrower will pay, whether or not funds are disbursed
      under the Loan, all legal costs, registration fees and other costs
      incurred by the Lender in investigating title and perfecting the Security
      Documents.

	13. 	
      Collateral Assignment/Pledge of Shares

	 	 
		
      Following entry into this Commitment, each of the Members
      or Shareholders, as applicable, agrees to undertake commercially
      reasonable efforts to negotiate and execute the Collateral Assignment or
      Pledge and Assignment of Securities, as applicable, and documents related
      thereto.

	 	 
	14. 	
      Non-Merger:

	 	 
		
      It is understood and agreed that the execution and
      delivery of the Security Documents, the registration of the Security
      Documents and the disbursement of funds under the Loan will in no way
      merge or extinguish this Commitment or the terms and conditions hereof,
      which will continue in full force and effect. In the event of any
      inconsistency or conflict between any of the provisions of this Commitment
      and any provision or provisions of the Security Documents, the provisions
      of this Commitment will prevail.

	 	 
	15. 	
      Taxes:

	 	 
		
      All payments to be made by the Borrower pursuant to this
      Commitment are to be made without set-off, compensation or counterclaim,
      free and clear of and without deduction for or on account of any Tax,
      including but not limited to withholding taxes, except for Taxes on the
      overall net income of the Lender.

	 	 
	16. 	
      Maximum Interest Rate:

	 	 
		
      The Borrower agrees that, notwithstanding any provision
      in this Commitment to the contrary, no interest on the credit advanced
      under this Commitment will be payable in excess of that permitted by
      applicable law. If the effective annual rate of interest, calculated in
      accordance with generally accepted actuarial practices and
principles, would exceed the amount permitted by applicable law on the Loan
advanced, then: 

Page 7

	 	(a) 	
      any excess that has been paid will be credited towards
      prepayment of the Loan; and

	 	 	 
	 	(b) 	
      any overpayment that may remain after such crediting will
      be returned forthwith to the Borrower upon
demand.

	17. 	
      Assignment:

	 	 
		
      This Commitment and any benefits hereunder may not be
      transferred, assigned or otherwise disposed of by the Borrower to any
      other party without the prior written consent of the Lender.

	 	 
	18. 	
      Further Assurances:

	 	 
		
      The Borrower shall at all times, do, execute, acknowledge
      and deliver or cause to be done, executed, acknowledged or delivered all
      such further acts, deeds, transfers, assignments, security agreements and
      assurances as the Lender may require in order to give effect to the
      provisions hereof and for the better granting, transferring, assigning,
      charging, setting over, assuring, confirming or perfecting the security
      interests hereby created and the priority accorded to them by law or under
      this Commitment, including but not limited to the registration of the
      charges created by the Security Documents in all jurisdictions requested
      by the Lender.

	 	 
	19. 	
      Currency:

	 	 
		
      All monetary amounts set out herein are stated in United
      States dollars.

	 	 
	20. 	
      Public Statements:

	 	 
		
      Except as required by applicable law, the Borrower shall
      not make or cause to make any public announcement or statement with
      respect to the Acquisition, this Commitment, or the Security Documents
      without the approval of the Lender, such approval not to be unreasonably
      withheld or delayed. The Borrower acknowledges that, promptly after the
      entering into of this Commitment, the Lender is required to issue a press
      release announcing the entering into of this Commitment and the
      Acquisition.

	 	 
	21. 	
      Enurement:

	 	 
		
      This Commitment will enure to the benefit of and be
      binding upon the parties and their respective heirs, executors,
      administrators, successors, and permitted assigns, as
applicable.

	 	 
	22. 	
      Counterparts

	 	 
		
      This Commitment may be executed in counterparts and
      delivered by fax or other electronic means capable of producing a printed
      copy and shall be deemed effective for all
purposes.

Page 8

This Commitment and the Loan offered will expire if the
Borrower has not accepted the terms and conditions hereof by signing and
returning the enclosed copy of this letter on or before January 31, 2013.

Yours truly,

TECKMINE INDUSTRIES, INC.

	Per: 	/s/ Nathan Woods 	 
	  	Authorized Signatory 	 

Page 9

ACCEPTANCE

     The Borrower hereby accepts the
offer of TECKMINE INDUSTRIES, INC. to provide financing as set forth above and
agrees to borrow the monies representing the Loan upon and subject to the terms
of this Commitment.

     For good and valuable
consideration (the receipt and sufficiency of which is hereby acknowledged), the
Borrower hereby promises and agrees to pay the Indebtedness (including the Loan
Fee and all other costs and charges and expenses required to be paid to the
Lender) and to keep, observe and perform (or to cause to be kept, observed and
performed) all of their other covenants and agreements set forth herein and in
the Security Documents to which it is a party, in the manner respectively
contemplated hereby and thereby.

     The Borrower authorizes the
Lender to instruct its solicitors to prepare the Security Documents and to
register a UCC Financing Statement with respect thereto at the registries in the
applicable jurisdictions in which the Borrower holds its assets and conducts its
business as determined by the Lender.

Accepted and agreed to this 31st day of January, 2013.

VICTORY ELECTRONIC CIGARETTES LLC

	Per: 	/s/ Marc Hardgrove 	 
	  	Authorized Signatory 	 

Each of the undersigned Members hereby executes this Commitment
Letter solely to acknowledge and agree to the obligations set out in sections
8(d) and section 13 of this Commitment Letter.

	WITNESSED BY: 	) 	  
	  	) 	  
	  	) 	  
	Name 	) 	  
	  	) 	  
	Address 	) 	/s/
      Marc Hardgrove 
	  	) 	MARC HARDGROVE 
	  	) 	  
	  	) 	  
	Occupation 	) 	  

Page 10

	WITNESSED BY: 	) 	  
	  	) 	  
	  	) 	  
	Name 	) 	  
	  	) 	  
	Address 	) 	/s/
      David Martin 
	  	) 	DAVID MARTIN 
	  	) 	  
	  	) 	  
	Occupation 	) 	  
	  	  	  
	  	  	  
	WITNESSED BY: 	) 	  
	  	) 	  
	  	) 	  
	Name 	) 	  
	  	) 	  
	Address 	) 	/s/
      Brent Willis 
	  	) 	BRENT WILLIS 
	  	) 	  
	  	) 	  
	Occupation 	) 	  
	  	  	  
	  	  	  
	WITNESSED BY: 	) 	  
	  	) 	  
	  	) 	  
	Name 	) 	  
	  	) 	  
	Address 	) 	/s/
      Paul Simon 
	  	) 	PAUL SIMON 
	  	) 	  
	  	) 	  
	Occupation 	) 	  
	  	  	  
	  	  	  
	WITNESSED BY: 	) 	  
	  	) 	  
	  	) 	  
	Name 	) 	  
	  	) 	  
	Address 	) 	/s/
      Paul Dillman 
	  	) 	PAUL DILLMAN 
	  	) 	  
	  	) 	  
	Occupation 	) 	  

Page 11

	WITNESSED BY: 	) 	  
	  	) 	  
	  	) 	  
	Name 	) 	  
	  	) 	  
	Address 	) 	/s/
      John Perner 
	  	) 	JOHN PERNER 
	  	) 	  
	  	) 	  
	Occupation 	) 	  
	  	  	  
	  	  	  
	WITNESSED BY: 	) 	  
	  	) 	  
	  	) 	  
	Name 	) 	  
	  	) 	  
	Address 	) 	/s/
      Steve Riffle 
	  	) 	STEVE RIFFLE 
	  	) 	  
	  	) 	  
	Occupation 	) 	  

	SCHEDULE A 
	  
	DEFINITIONS AND INTERPRETATION 
	FORMING PART OF THAT CERTAIN COMMITMENT LETTER
  
	DATED JANUARY 31, 2013 
	FROM TECKMINE INDUSTRIES, INC. 
	TO VICTORY ELECTRONIC CIGARETTES LLC

1.                    
DEFINITIONS 

1.1                 
“Acquisition” has the meaning set out in the Letter of Intent.

1.2                 
“Affiliate” when used to indicate a relationship with a person, an entity is an
“Affiliate” of another entity if one of them is a subsidiary of the other or
each of them is controlled by the same person.

1.3                 
“Associate” when used to indicate a relationship with a person, means:

	 	(a) 	
      an entity of which the person beneficially owns or
      controls, directly or indirectly, voting securities entitling the person
      to more than 10% of the voting rights attached to all outstanding voting
      securities of the entity; or

	 	 	 
	 	(b) 	
      in the case of a person who is an individual, that
      person’s spouse or child or any relative of that person or of his or her
      spouse who has the same residence as that person.

1.4                 
“Commitment” means this commitment letter dated January 31, 2013 and every
schedule thereto.

1.5                 
“Events of Default” means any of the events referred to in Section 9 and “Event
of Default” means any one of them.

1.6                 
“Formal Agreement” has the meaning set out in the Letter of Intent.

1.7                
 “Indebtedness” means all present and future indebtedness and liability,
direct or indirect, of the Borrower to the Lender arising under and pursuant to
this Commitment and the Security Documents (including, without limitation, the
amount outstanding under the Loan and all accrued interest thereon and all fees
and costs payable in connection therewith).

1.8                 
“Insider” means:

	 	(a) 	
      a director, officer or manager of the Borrower, as
      applicable;

	 	 	 
	 	(b) 	
      a director, officer or manager of a company that is an
      Insider or subsidiary of the Borrower, as applicable; or

	 	 	 
	 	(c) 	
      a person that beneficially owns or controls, directly or
      indirectly, voting Shares or membership interests carrying more than 10%
      of the voting rights attached to all outstanding voting Shares or
      membership interests of the Borrower.

1.9                 
“Letter of Intent” means the letter of intent dated January 17, 2013 between the
Issuer and the Borrower.

1.10               
“Non-Arm’s Length Party” means, in relation to the Borrower:

	 	(a) 	
      a promoter, director, officer, manager or Insider of the
      Borrower and any Associates or Affiliates of any such person; or

	 	 	 
	 	(b) 	
      another entity or an Affiliate of that entity, if that
      entity or its Affiliate have the same promoter, director, officer,
      manager, Insider as the Borrower.

1.11               
“Security Documents” means the security documents set out in Section 8 of the
Commitment, and “Security Document” means any one of them.

1.12               
“Shares” means the issued and outstanding common shares in the capital of the
Borrower.

1.13               
“Taxes” means all taxes, levies, imposts, stamp taxes, duties, deductions,
withholdings and similar impositions payable, levied, collected, withheld or
assessed as of the date of this Commitment or at any time in the future under
the laws of Canada or any political subdivision thereof, and “Tax” shall have a
corresponding meaning.

1.14               
“USD$” and “$” means lawful currency of the United States.

2.                    
INTERPRETATION

2.1                 
“Herein”, “hereunder”, and similar terms refer to the Commitment as a whole and
not to any specific Clause or provision thereof.

2.2                 
The word “person” includes in its meaning any firm or corporation.

2.3                 
When the context makes it possible, the singular includes the plural and vice
versa, and all references to any person, whether a party to this Commitment or
not, will be read with such changes in number or gender as the party or
reference requires.

2.4                 
If any provision, covenant, or agreement contained in this Commitment is invalid
or unenforceable in whole or in part, then such invalid or unenforceable
provision, covenant, or agreement or part thereof will be severed from and will
not affect the validity or enforceability of the remainder of this
Commitment.

2.5                 
Any reference in this Commitment to a statute will include any amendment or
successor statute and any regulations thereunder in force from time to time.

2.6                 
The headings appearing in this Commitment have been inserted for convenience of
reference only and in no way define, limit, or enlarge the scope or meaning of
the provisions of this Commitment.

2.7                 
This Commitment will enure to the benefit of the Lender and be binding upon the
Borrower and its successors, permitted assigns, executors and administrators, as
applicable.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00212-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00212-of-00352.parquet"}]]