Document:

Prepared by R.R. Donnelley Financial -- Form of 5.75% Note due 2009

  
 Exhibit 4.2 
  
 FORM OF NOTE 
  
 THIS NOTE IS A GLOBAL NOTE WITHIN THE
MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS NOTE IS EXCHANGEABLE FOR NOTES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND, UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF
THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. 
  
 UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY (AS DEFINED BELOW) OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER
ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

  
  
 
	 No.: 1
 	  	  
	 CUSIP No.: 05564E BE 5
 	  	 Principal Amount:  $150,000,000
 

 
  
  
 BRE PROPERTIES, INC.

  
 5.75% Notes due 2009 
  
 BRE Properties, Inc., a Maryland corporation (hereinafter called the “Company”, which term includes any successor corporation under the Indenture referred to below), for value received,
hereby promises to pay to Cede & Co., or registered assigns, the principal sum of ONE HUNDRED AND FIFTY MILLION DOLLARS ($150,000,000), on September 1, 2009, (the “Maturity Date”), and to pay interest thereon from August 23, 2002 or
from the most recent date to which interest has been paid or duly provided for, semiannually on March 1 and September 1 of each year (each an “Interest Payment Date”), commencing March 1, 2003, and at Maturity and any earlier Redemption
Date (as defined herein), at the rate of 5.75% per annum, until the principal hereof is paid or duly made available for payment. Interest on this Note shall be calculated on the basis of a 360-day year consisting of twelve 30-day months. The
interest so 

 
payable and punctually paid or duly provided for on any Interest Payment Date will, as provided in such Indenture, be paid to the Person in whose name this Note (or one or more Predecessor Debt
Securities) is registered at the close of business on the Regular Record Date for such interest, which shall be the February 15 or August 15 (whether or not a Business Day), as the case may be, next preceding such Interest Payment Date. Any such
interest which is payable, but is not punctually paid or duly provided for, on any Interest Payment Date shall forthwith cease to be payable to the registered Holder hereof on the relevant Regular Record Date by virtue of having been such Holder,
and may be paid to the Person in whose name this Note (or one or more Predecessor Debt Securities) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof
shall be given to the Holder of this Note not less than 10 days prior to such Special Record Date, or may be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Notes may be
listed, and upon such notice as may be required by such exchange, all as more fully provided in such Indenture. 
  
 Payment of the principal of, premium, if any, and interest on this Note will be made at the office or agency of the Company maintained for that purpose in the Borough of Manhattan, The City of New York, in such coin or currency of
the United States of America as at the time of payment is legal tender for payment of public and private debts; provided, however, that, at the option of the Company, interest may be paid by check mailed to the address of the Person entitled thereto
as such address shall appear in the Security Registrar or by transfer to an account maintained by the payee located in the United States. 
  
 This Note is one of a duly authorized issue of Debt Securities of the Company (herein called the “Notes”) issued and to be issued in one or more series under an Indenture dated as of June 23, 1997, as amended by a
First Supplemental Indenture dated as of April 23, 1998 (herein called, together with all indentures supplemental thereto, the “Indenture”) between the Company and J.P. Morgan Trust Company, National Association (successor to Chase
Manhattan Bank and Trust Company, National Association), as trustee (herein called the “Trustee”, which term includes any successor trustee under the Indenture), and reference is hereby made to the Indenture, and the Officers’
Certificate dated August 23, 2002 pursuant to Section 301 of the Indenture creating the series designated on the face hereof, for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the
Trustee and the Holders of the Notes, and the terms upon which the Notes are, and are to be, authenticated and delivered. This Note is one of the series designated on the face hereof initially limited (subject to exceptions provided in the
Indenture) in aggregate principal amount to $150,000,000; provided, however, that the series may be reopened without the consent of the Holders for the issuance of additional Notes as may be authorized by the Company from time to time. 

 
 The Notes are redeemable, in whole or from time to time in part, at the option of the Company on any date (a “Redemption
Date”), at a redemption price equal to the greater of (i) 100% of the principal amount of the Notes to be redeemed or (ii) the sum of the present values of the remaining scheduled payments of principal and interest thereon (exclusive of
interest accrued to such Redemption Date) discounted to such Redemption Date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined below) plus 30 basis points, plus, in either case,
accrued and unpaid interest on the principal amount being redeemed to such Redemption Date; provided that installments of interest on 
 

 2 

 
Notes which are due and payable on an Interest Payment Date falling on or prior to the relevant Redemption Date shall be payable to the Holders of such Notes, or one or more Predecessor Debt
Securities, registered as such at the close of business on the relevant Regular Record Date, according to their terms and the provisions of the Indenture. Notice of redemption shall be given in the manner provided in the Indenture, not less than 30
days nor more than 60 days prior to the relevant Redemption Date, to each Holder of Notes to be redeemed. Any redemption of Notes shall be made in accordance with the further terms and provisions set forth in the Indenture. 
  
 As used herein, the following terms will have the meanings set forth below: 
  
 “Treasury Rate” means, with respect to any Redemption Date for the Notes, (i) the yield, under the heading which represents the average for the immediately
preceding week, appearing in the most recently published statistical release published by the Board of Governors of the Federal Reserve System designated as “Statistical Release H.15(519)” or any successor publication which is published
weekly by the Board of Governors of the Federal Reserve System and which establishes yields on actively traded United States Treasury securities adjusted to constant maturity under the caption “Treasury Constant Maturities,” for the
maturity corresponding to the Comparable Treasury Issue (if no maturity is within three months before or after the Maturity Date, yields for the two published maturities most closely corresponding to the Comparable Treasury Issue shall be determined
and the Treasury Rate shall be interpolated or extrapolated from such yields on a straight line basis, rounding to the nearest month), or (ii) if such release (or any successor release) is not published during the week preceding the calculation date
or does not contain such yields, the rate per annum equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal
amount) equal to the Comparable Treasury Price for such Redemption Date. The Treasury Rate shall be calculated on the third Business Day preceding the Redemption Date. 
  
 “Comparable Treasury Issue” means the United States Treasury security selected by the Independent Investment Banker as having a maturity comparable to the
remaining term of the Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the
Notes. 
  
 “Independent Investment Banker” means Goldman, Sachs & Co. or its successor or if such firm
is unwilling or unable to select the Comparable Treasury Issue, an independent investment banking institution of national standing appointed by the Trustee after consultation with the Company. 
  

“Comparable Treasury Price” means with respect to any Redemption Date for the Notes (i) the average of four Reference Treasury Dealer Quotations for such
Redemption Date, after excluding the highest and lowest such Reference Treasury Dealer Quotations, or (ii) if the Trustee obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such quotations. 
  
 “Reference Treasury Dealer” means each of Goldman, Sachs & Co., Credit Suisse First Boston Corporation and Banc of America
Securities LLC and their respective successors and, at 
 

 3 

 
our option, another primary U.S. Government securities dealer in New York City (a “Primary Treasury Dealer”); provided, however, that if any of the foregoing shall cease to be a Primary
Treasury Dealer, the Company will substitute therefor another Primary Treasury Dealer. 
  
 “Reference Treasury
Dealer Quotations” means, with respect to each Reference Treasury Dealer and any Redemption Date, the average, as determined by the Trustee, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage
of its principal amount) quoted in writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding such Redemption Date. 
  
 If an Event of Default with respect to the Notes shall occur and be continuing, the principal of the Notes may be declared due and payable in the manner and with the effect
provided in the Indenture. 
  
 The Indenture permits, with certain exceptions as therein provided, the amendment
thereof and the modification of the rights and obligations of the Company and rights of the Holders of the Debt Securities of each series issued under the Indenture at any time by the Company and the Trustee with the consent of the Holders of not
less than a majority in aggregate principal amount of the Debt Securities at the time Outstanding of each series affected thereby. The Indenture also contains provisions permitting the Holders of specified percentages in aggregate principal amount
of the Debt Securities of any series at the time Outstanding, on behalf of the Holders of all Debt Securities of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture
and their consequences. Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Notes issued upon the registration of transfer hereof or in exchange
herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note. 
  
 No reference
herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of, premium, if any, and interest on this Note, at the time,
place and rate, and in the coin or currency, herein and in the Indenture prescribed. 
  
 As provided in the Indenture
and subject to certain limitations set forth therein, the transfer of this Note may be registered on the Security Register upon surrender of this Note for registration of transfer at the office or agency of the Company maintained for the purpose in
any place where the principal of, premium, if any, and interest on this Note are payable, duly endorsed, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by the Holder
hereof or by his attorney duly authorized in writing, and thereupon one or more new Notes, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. 
  
 The Notes are issuable only in registered form without coupons in the denominations of $1,000 and integral multiples of $1,000. As
provided in the Indenture and subject to certain limitations set forth therein, the Notes are exchangeable for a like aggregate principal amount of Notes of authorized denominations as requested by the Holders surrendering the same. 

 4 

  
 No service charge shall be made for any such registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith, other than in certain cases provided in the Indenture. 
  
 Prior to due presentment of this Note for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee
may treat the Person in whose name this Note is registered as owner hereof for all purposes, whether or not this Note be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary. 

 
 The Indenture contains provisions whereby (i) the Company may be discharged from its obligations with respect to the Notes
(subject to certain exceptions) or (ii) the Company may be released from its obligations under specified covenants and agreements in the Indenture, in each case if the Company irrevocably deposits with the Trustee money or Government Obligations
sufficient to pay and discharge the entire indebtedness of all Notes, and satisfies certain other conditions, all as more fully provided in the Indenture. 
  
 This Note shall be governed by and construed in accordance with the laws of the State of New York. 
  
 All terms used in this Note which are defined in the Indenture shall have the meanings assigned to them in the Indenture. 
  
 Unless the certificate of authentication hereon has been executed by or on behalf of the Trustee under the Indenture by the manual signature of one of its authorized
signatories, this Note shall not be entitled to any benefits under the Indenture or be valid or obligatory for any purpose. 
  
  
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 
 

 5 

  
 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed
under its corporate seal. 
  
 Dated: 
  

 
 
	 [Seal]
 	 	  	 	 BRE PROPERTIES, INC. 
 
	 
	 Attest:
 	 	 
	 	  	 	 By:
 	 	 

	  	 	 Edward F. Lange, Jr.
 Executive
Vice President,
 Chief Financial Officer and Secretary
 	 	  	 	  	 	 LeRoy E. Carlson
 Executive
Vice President and
 Chief Operating Officer
 

 
  
  
 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 
 This is one of the Debt Securities of the series designated 

    therein referred to in the within-mentioned Indenture. 
  
  
 
	 J.P. MORGAN TRUST COMPANY,
 NATIONAL ASSOCIATION,
 as
Trustee
 
	 
	 By:
 	 	 

	  	 	 Authorized Signatory
 

 
 

 6 

  
 ABBREVIATIONS 
  
 The following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written out in full according to applicable
laws or regulations: 
  
 
	 TEN COM—as tenants in common
 	 	 UNIF GIFT MIN ACT—              Custodian
            
 
	 TEN ENT—as tenants by the entireties
 	 	 (Cust)                 (Minor)
 
	 JT TEN—as joint tenants with right of
 survivorship and not as tenants
 in common
 	 	 Under Uniform Gifts to  
 Minors Act
                    
 (State)  

 
  
  
 Additional abbreviations may also
be used though not in the above list. 
  
  
 
 
 FOR VALUE RECEIVED, the undersigned registered holder hereby sell(s), assign(s) and transfer(s) unto 
  
  
 PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE 
  
  
  
                                      
                                        
                                        
                                        
                                        
                     
 PLEASE PRINT OR TYPEWRITE NAME AND
ADDRESS OF ASSIGNEE 
  
                                      
                                        
                                        
                                        
                                        
                     
  the within
Note and all rights thereunder, hereby irrevocably constituting and appointing 
  
                                      
                                        
                                        
                                     Attorney 
 to transfer said Note on the books of the Company with full power of substitution in the premises. 
  

Dated:                                    
                                        
                                        
                                        
                                        
         
  
 Notice: The signature(s) to this assignment must correspond with the
name(s) as it/they appear(s) upon the 
 face of the within Note in every particular, without alteration or enlargement or any change whatever. 

 7EXHIBIT 10.27
                         IDAHO CONSOLIDATED METALS CORP
                              225 -4299 CANADA WAY
                              BURNABY, BC, V5G IH3

                                    DEBENTURE

PRINCIPAL AMOUNT: US $1,000,000

1.      For value received, Idaho Consolidated Metals Corporation, a Yukon
        company continued under Certificate of Continuance dated August 17,
        2001, Corporate Access Number 28994 having its registered office at
        Suite 200 -204 Lambert Street, Whitehorse, Yukon, Y1A 3T2, (the
        "Company") will pay to Tomasovich Family Trust (the "Debenture Holder"),
        subject to the prior exercise by the Debenture Holder of its rights of
        conversion of the principal sum, on February 7, 2003, the total amount
        advanced hereunder up to the full principal amount of One Million US
        Dollars (the "Principal Sum") together with interest thereon at the rate
        of 6% per cent per annum (as well after as before maturity and both
        before and after default) such interest to be calculated and paid
        monthly, not in advance, on so much of the Principal Sum hereby secured
        as shall from time to time remain unpaid until the whole of the
        Principal Sum is paid. (The Company will pay interest at the aforesaid
        rate on overdue interest).

1.A     The Principal Sum shall be advanced by the Debenture Holder to the
        Company over the next six months as the Company requires same for the
        purposes of its proposed drilling program on its Stillwater Complex,
        Montana, Mining Properties. The first advance shall be made by the
        Debenture Holder upon the date of the granting of this Debenture in the
        sum of US$220,000.

2.      The Principal Sum and interest payable hereunder and hereby secured
        shall be payable at the place referred to in paragraph 8 hereof or at
        such other place as the Debenture Holder may in writing from time to
        time direct.

3.      As security for payment of the Principal Sum and interest, and interest
        on overdue interest, and of all and every indebtedness, present and
        future, direct or indirect, absolute or contingent of the Company to the
        Debenture Holder and of all and every liability, present and future,
        direct or indirect, absolute or contingent, of the Company to the
        Debenture Holder and of advances and re-advances from time to time and
        for the performance of the obligations and the covenants of the Company
        herein contained, the Company hereby charges to and in favour of the
        Debenture Holder as and by way of a floating charge all of its present
        and after acquired personal property, and all personal property in which
        the Company has rights, of whatever nature or kind and wherever situate
        (the "Property"). The charge hereby granted is subordinate to all other
        Debentures and security agreements issued previously, including any
        Debentures issued under previous private placements which have not been
        registered in the Personal Property Registry of British Columbia.
        Without the prior written consent of the Debenture Holder, the Company
        shall not and shall not have power to grant any mortgage or grant,
        create or permit to be created any security interest in, charge,
        encumbrance, or lien over, or claim against any of its property, assets
        or undertakings that rank or could rank in priority to or pari passu
        with this Debenture.

4.      The last day of any term created by any lease or agreement therefor is
        hereby excepted out of the charge created by this Debenture but the
        Company shall stand possessed of the reversion thereby remaining in the
        Company upon trust for the Debenture Holder to assign and dispose
        thereof as the Debenture Holder shall direct.

5.      This Debenture is issued subject to and with the benefit of the
        Conditions attached hereto, each and all of which form part of this
        Debenture.
<PAGE>
                                      - 2 -

6.      Subject to the terms and conditions of this Debenture, the Debenture
        Holder shall, as hereinafter provided, have a right prior to the
        maturity of this Debenture, to convert the outstanding Principal Sum
        into fully paid units in the capital stock of the Company. Each unit
        consists of one Common Share in the capital of the Company and one half
        non-transferable common share purchase warrant. One whole warrant will
        enable the holder thereof to acquire one common share at a price of
        Seventy Cents ($0.70) in Canadian funds ("Warrant Shares") on or before
        4:30 p.m. (Vancouver time) on the date that is two years from the date
        of issuance of the units.

        (a)     The Debenture Holder shall have the right at any time and from
                time to time prior to the maturity of this Debenture to give
                notice to the Company pursuant to paragraph 6(b), to convert the
                Principal Sum into units at a conversion rate of Thirty Five
                Cents ($0.35) in Canadian funds per unit;

        (b)     If the Debenture Holder wishes to exercise some or all of the
                conversion rights as aforesaid he shall deliver to the Company
                c/o Fraser and Company at its office in Vancouver, British
                Columbia, Canada (see paragraph 7), notice in writing containing
                notice of exercise of his right to convert this Debenture
                specifying such part of the Principal Sum hereof to be
                converted, naming the person in whose name the units are to be
                issued. In the event that the whole of the Principal Sum is
                converted into units prior to the maturity of this Debenture,
                the Debenture Holder shall deliver the Debenture to the Company
                at the time of giving notice under this subparagraph. The
                Company will pay any fee which may be properly required to
                effect the issue of units to the registered holder hereof. Upon
                delivery of the notice of exercise to the Company, the Company
                shall deliver the direction to the Company's principal transfer
                agent in Vancouver and upon such delivery the person designated
                in the said notice shall be deemed for all purposes the holder
                of record of fully paid units in the capital stock of the
                Company to the number designated in such notice. Such person
                shall be entitled to delivery by the Company of a certificate
                representing such units promptly after the exercise of the right
                of such conversion;

        (c)     In the event that any dividends are declared on any of the units
                issuable upon such conversion, the Company covenants to reserve
                an amount equal to the amount of such dividends and shall pay
                such dividends accordingly to the person into whose name the
                units are issued;

        (d)     If the Company shall declare and pay a stock dividend upon its
                units prior to the date of conversion, then there shall be
                reserved out of such stock dividend an appropriate number of
                units so that the Debenture Holder converting his Debenture into
                units of the Company shall receive his pro rata share of any
                stock dividend declared prior to the date of conversion as would
                have been paid if the right of conversion had been exercised
                prior to the date of such dividend;

        (e)     In the event of any subdivision or re-division or change of the
                shares of the Company at any time while this Debenture is
                outstanding into a greater or lesser number of shares, the
                Company shall deliver at the time of the exercise thereafter of
                the right of conversion by the registered holder of this
                Debenture such additional number of shares (or lesser) as would
                have resulted from such subdivision, re-division or change if
                the right of conversion had been exercised prior to the date of
                such subdivision, re-division or change;

        (f)     The Company covenants that so long as this Debenture shall
                remain outstanding and it has reserved in its treasury unissued
                common shares that it shall not alter any of the rights or
                restrictions attached to such common shares remaining held and
                unissued in its treasury in contemplation of the exercise of
                rights of conversion under this Debenture, except for the
                purpose of subdivision or re-division or consolidation as
                aforesaid;
<PAGE>
                                      - 3 -

        (g)     Nothing in this paragraph shall be construed as to prevent the
                Company from either increasing its authorized capital or issuing
                additional common shares from its treasury for its proper
                corporate purposes;

        (h)     The exercise of the rights of conversion set forth herein are
                subject, at the time of issuance of this Debenture, to the
                consent of the regulatory authorities having jurisdiction over
                the issuance of the Company's securities. The terms and
                conditions restricting resale of any of the units so converted
                are those that may be imposed by the regulatory authorities
                having jurisdiction over the offering of the Company's
                securities.

7.      Any notice to the Company in connection with this Debenture shall be
        well and sufficiently given if sent by prepaid registered mail or
        delivered to the Company addressed as follows:

           Idaho Consolidated Metals Corp.
           c/o 225 -4299 Canada Way
           Burnaby, BC, V5G IH3

        Any such notice shall be deemed to have been given if delivered, when
        delivered, and if mailed, on the third business day following that on
        which it was mailed.

8.      Any notice to the Debenture Holder in connection with this Debenture
        shall be well and sufficiently give if sent by prepaid registered mail
        or delivered to the Debenture Holder addressed as follows:

           Tomasovich Family Trust
           4812 Lakeview Canyon Road
           Westlake Village, California
           91361

        Any such notice shall be deemed to have been given if delivered, when
        delivered, and if mailed, on the third business day following that on
        which it was mailed.

9.      In the event of a known interruption of postal services, any notice
        required or contemplated herein shall be deemed to have been delivered
        to the Company if delivered by hand to the registered office of the
        Company and to the Debenture Holder if delivered by hand to the address
        of the Debenture Holder set fort herein.

10.     The proper law of this Debenture is the law of British Columbia.

11.     This Debenture is subject to the approval of the Canadian Venture
        Exchange and any other regulatory authorities as may be required.
<PAGE>
                                      - 4 -

12.     Debenture Holder understands that this Debenture and the Common Shares
        to be issued to it upon conversion of the Debenture and the Warrant
        Shares underlying the Warrants to be issued upon conversion of the
        Debenture are "restricted securities" under the 1933 Act and the rules
        of the SEC provide in substance that the Debenture may dispose of the
        Shares and Warrant Shares (the Units and Warrants are not transferable)
        only pursuant to an effective registration statement under the 1933 Act
        or an exemption therefrom, and, other than as set out hereon, the
        Debenture Holder understands that, the Company may not be able to
        register any of the Shares or Warrant Shares so as to permit sales
        pursuant to the 1933 Act (including Rule 144 thereunder). Accordingly,
        the Debenture Holder understands that absent registration, under the
        rules of the SEC, the Debenture Holder may be required to hold the
        Shares and Warrant Shares indefinitely or to transfer the Shares and
        Warrant Shares in transactions which are exempt from registration under
        the 1933 Act, in which event the transferee any acquire "restricted
        securities" subject to the same limitations as in the hands of the
        Debenture Holder. As a consequence, the Debenture Holder understands
        that it must bear the economic risks of the investment in the Securities
        for an indefinite period of time.

IN WITNESS WHEREOF the Company has hereunto caused its corporate seal to be
affixed in the presence of its duly authorized officers in that behalf as of the
7th day of February, 2002.

THE COMMON SEAL of IDAHO ) CONSOLIDATED METALS CORPORATION ) was hereunto
affixed in the presence of: )
                                            )
                                            )
----------------------------------          )
Authorized Signatory                        )
                                            )
                                            )
----------------------------------          )
Authorized Signatory                        )
<PAGE>

                                   CONDITIONS

                         Referred to in the Debenture of
                         IDAHO CONSOLIDATED METALS CORP.
                      in favour of Tomasovich Family Trust
                             amount of US $1,000,000

1.      This Debenture is issued in accordance with the Resolutions of the
        Directors (and of the members as applicable) of the Company and all
        other matters and things have been done and performed so as to authorize
        and make the execution, creation and issue of this Debenture legal and
        valid and in accordance with the requirements of the laws relating to
        the Company and all other statutes and laws on that half.

        If this Debenture is redeemed by the Company, it shall be cancelled and
        shall not be reissued, but:

        (a)     any partial payment made thereon by the Company to the Debenture
                Holder, or

        (b)     any partial conversion of the Principal Sum into units of the
                Company,

        shall be deemed not to be a redemption or cancellation pro tanto or
        otherwise, and this Debenture shall be and remain valid security for any
        subsequent advance or re-advance by the Debenture Holder to the Company
        to the same extent as if the said advance or re-advance had been made on
        the issue of this Debenture.

2.      The Company shall not without the prior written consent of the Debenture
        Holder:

        (a)     pay or declare any dividend or make any other distribution or
                payment to any shareholder in cash or in kind or repay in whole
                or in part any shareholders loan;

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

        (c)     become guarantor of any obligation or become endorser with
                respect to any obligation or become liable upon any note or
                other obligation other than in the normal course of the
                Company's business.

3.      The Company shall at all times during the continuance of the Debenture:

        (a)     fully and effectually maintain and keep maintained the security
                hereby created as a valid and effective security;

        (b)     forthwith pay:

                (i)     all taxes, assessments, rates, duties, levies,
                        governmental fees and dues lawfully levied, assessed or
                        imposed upon it or its assets or undertaking when due,
                        unless the Company shall in good faith contest its
                        obligations so to pay and shall furnish such security as
                        the Debenture Holder may direct, and

                (ii)    all liens, mortgages, charges and encumbrances which
                        rank or could in any event rank in priority to this
                        Debenture other than those consented to in writing by
                        the Debenture holder;

        (c)     assume and pay all legal fees and disbursements on a solicitor
                and client basis and all other fees and disbursements relating
                to the creation of this Debenture, its registration in all
                proper offices of record and relating to any and all additional
                instruments and documents as may be deemed necessary by Counsel
                for the Debenture Holder;
<PAGE>
                                      - 2 -

        (d)     at its expense, execute and deliver or cause to be executed and
                delivered to the Debenture Holder such further and other
                assurances, conveyances, mortgages, assignments, transfers,
                requests, consents and documents as the Debenture Holder may
                require for the purpose of perfecting the security contemplated
                by this Debenture.

4.      The Principal Sum, interest and other monies hereby secured, shall at
        the option of the Debenture Holder, become immediately payable and the
        security hereby constituted shall become enforceable in each and every
        of the following events:

        (a)     if the Company makes default in the observance or performance of
                something hereby required to be done or breaches some covenant
                or condition hereby required to be observed or performed,
                including, but not limited to, the covenants contained in
                paragraph 1 of the within Debenture;

        (b)     if an Order is made or a Resolution passed for the winding-up of
                the Company or if the motion is filed for the winding-up of the
                Company;

        (c)     if the Company becomes insolvent or makes a voluntary assignment
                or proposal in bankruptcy or bulk sale of its assets or if a
                bankruptcy petition is filed or presented against the Company or
                if a Receiver or Receiver Manager is appointed under any other
                Debenture issued by the Company;

        (d)     if any execution, sequestration, extent or any other process of
                any Court becomes enforceable against the Company or if a
                distress or analogous process is levied upon the property of the
                Company or any part thereof;

        (e)     if the Company is more than thirty (30) days in arrears of rent
                payable under any lease of real property or if the Company
                allows any amount outstanding from the Company to the Crown
                pursuant to federal or provincial statutes to remain unpaid for
                a period in excess of thirty (30) days;

        (f)     if the Company shall permit any sum which has admitted as due by
                it or is not disputed to be due by it and which forms or is
                capable of being made a charge upon any of the property. subject
                to the charge created by this Debenture to remain unpaid for
                thirty (30) days after, proceedings have been taken to enforce
                the same as such charge;

        (g)     if the Company ceases or threatens to cease to carry on its
                business or commits or threats to commit any act of bankruptcy;

        (h)     if the Company makes default in payment of any indebtedness or
                liability to the Debenture Holder, whether secured hereby or
                not, when due;

        (i)     if the Company carries on any business that is restricted from
                carrying on by its Memorandum;

        (j)     if the Company uses any of the funds advanced under this
                Debenture for any purpose other than as declared to and agreed
                upon by the Debenture Holder; and

        (k)     if the Statutory Declaration of the secretary or other officer
                or director of the Company delivered with this Debenture
                contains any material misstatement.

5.      The security of this Debenture shall become enforceable if the Principal
        Sum and all other monies hereby secured shall not be paid when the same
        become due and payable in accordance with paragraph 1 of the within
        Debenture.
<PAGE>
                                      - 3 -

6.      At any time after the Principal Sum and all other monies hereby secured
        shall become payable and remain unpaid, the Debenture Holder may appoint
        by writing a Receiver of the Property hereby charged and may from time
        to time remove any Receiver so appointed and appoint another in his
        stead. Any Receiver so appointed shall be an officer of the Company and
        shall have power:

        (a)     to take possession of and get in the Property hereby charged;

        (b)     to carry on or concur in carrying on the business of a Company;

        (c)     to sell or lease or concur in selling or leasing the Property
                hereby charged or any part or parts thereof;

        (d)     to make any arrangement or compromise which the Receiver shall
                think expedient;

        (e)     to borrow money for the purposes of carrying on the business of
                the Company or for the maintenance of the property and assets of
                the Company or any part or parts thereof, in such sum as will in
                the opinion of the Receiver, be sufficient for obtaining upon
                the security of such property and assets the amounts from time
                to time required and in doing so the Receiver may issue
                certificates (herein called "Receiver's Certificates") and such
                certificates may be payable either to order or to bearer and may
                be payable at such time or times as the Receiver may think
                expedient and shall bear interest as shall be stated therein and
                the amounts from time to time payable by virtue of such
                Receiver's Certificates shall form a charge upon the property
                and assets of the Company in priority to the charge of this
                Debenture. The rights and powers conferred by this paragraph are
                in supplement of and not in substitution for any rights the
                Debenture Holder may from time to time have as the holder of
                this Debenture.

The net profits of carrying on the said business and the net proceeds of the
sale shall be applied by the Receiver subject to the claims or all secured and
unsecured creditors (if any) ranking in priority to this Debenture:

FIRSTLY:        In payment of all costs, charges and expenses of and incidental
                to the appointment of the Receiver and the exercise by him of
                all or any of the powers aforesaid including the reasonable
                remuneration of the Receiver and all outgoings properly payable
                by him together with all legal costs in respect thereof on a
                solicitor and client basis;

SECONDLY:       In or toward payment to the Debenture Holder of the Principal
                Sum and all other monies hereby secured;

THIRDLY:        In or towards payment to the Debenture Holder of all arrears of
                interest remaining unpaid on this Debenture;

FOURTHLY:       Any surplus shall, subject to the rights of other creditors, be
                paid to the Company.

    The Debenture Holder shall be under no liability to the Receiver for his
    remuneration, costs, charges or expenses or otherwise. The term "Receiver"
    as used in this paragraph includes a Receiver Manager.
<PAGE>
                                      - 4 -

7.      To enable the Receiver or Receiver Manager to exercise the powers
        granted to him by paragraph 6 of these Conditions, the Company hereby
        appoints the Receiver or Receiver Manager to be its attorney to carry
        out any sale of any or all of the mortgaged property and to affix the
        common seal of the Company to any deeds, transfers, conveyances,
        assignments, assurances and things which the Company ought to execute to
        complete any sale of any of the mortgaged property or, alternatively, to
        execute the same and his own seal by conveying in the name of and on
        behalf of the Company and under his own seal and any deed or other
        instrument signed by him under his seal pursuant hereto shall have the
        same effect as if it were under the common seal of the Company.

8.      Provided that the Company is not in default hereunder, the Company may
        at any time or times pay the whole or any part of the Principal Sum
        secured by this Debenture without notice, penalty or bonus.

9.      The security hereby created is a continuing security and shall cover and
        secure the payments of all and every indebtedness both present and
        future and Interest thereon and Interest on overdue Interest and all and
        every liability, present or future, direct or indirect, absolute or
        contingent, of the Company to the Debenture Holder and is in addition to
        and not in substitution for any other security or securities which the
        Debenture Holder now or from time to time may hold or take from the
        Company.

10.     The Company agrees that neither the preparation, nor the execution, nor
        the registration of this Debenture shall bind the Debenture Holder to
        advance the monies hereby secured nor shall the advance of a part of the
        monies secured hereby bind the Debenture Holder to advance any
        unadvanced portion thereof but nevertheless the charge created by this
        Debenture shall take effect forthwith upon its execution by the Company.

11.     The Debenture Holder may waive any breach by the Company of any of the
        provisions of this Debenture or any default by the Company in the
        observance or performance of any covenant or condition required to be
        observed or performed by the Company under the terms of this Debenture
        but, not withstanding the foregoing, no act or admission of the
        Debenture Holder shall extend to or be taken any manner whatsoever to
        affect any subsequent breach or default or the rights resulting
        therefrom.

12.     The Company shall assume and pay all costs, charges and expenses
        including solicitor's costs, charges and expenses as between solicitor
        and his own client which may be incurred by the Debenture Holder in
        respect of any proceedings taken or things done by the Debenture Holder
        or on its behalf in connection with this Debenture to collect, protect,
        realize or enforce its security hereunder, whether or not any action or
        other judicial proceeding has been taken to enforce this Debenture; and
        the said costs, charges and expenses shall be added to the principal
        monies hereby secured and shall bear interest at the rate set forth in
        this Debenture or if more than one rate of interest is so set forth, at
        the higher or highest of the said rates of interest.

13.     The expression "Debenture Holder" wherever used in this Debenture and in
        these Conditions shall include the Debenture Holder's successors and
        assigns whether immediate or derivative and any appointment or removal
        under paragraph 6 hereof may be made by writing, signed or sealed by any
        such successors or assigns; and the expression "Company" used in this
        Debenture shall include the successors and assigns of the Company.

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