NIOBW NioCorp Developments Ltd

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

 

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): September 11, 2024

 

 

NioCorp Developments Ltd.

 

(Exact name of registrant as specified in its charter)

 

 

British Columbia, Canada (State or other jurisdiction of incorporation)

000-55710 (Commission File Number)

98-1262185 (IRS Employer Identification No.)

7000 South Yosemite Street, Suite 115
Centennial, Colorado 80112
(Address of principal executive offices) (Zip Code)

 

Registrant’s telephone number, including area code: (720) 639-4647

 

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

  

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Shares, without par value	NB	The Nasdaq Stock Market LLC
Warrants, each exercisable for 1.11829212 Common Shares	NIOBW	The Nasdaq Stock Market LLC

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 Emerging growth company          ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

Item 1.01

Entry into a Material Definitive Agreement.

 

On September 11, 2024, NioCorp Developments Ltd. (the “Company”) and its Chief Executive Officer, Mark A. Smith, entered into a Loan Agreement (the “Smith Loan Agreement”) pursuant to which Mr. Smith agreed to make available to the Company a non-revolving, multiple draw credit facility of up to $2,000,000 (the “Loan”). The Loan is non-revolving and amounts paid back under the terms of the Smith Loan Agreement do not again become available for drawdowns at the request of the Company.

The Company will pay interest to Mr. Smith on amounts outstanding under the Loan and on any overdue interest at a rate equal to 10% per annum, calculated monthly in arrears, through to the date of repayment of the Loan. Interest on the Loan will be computed on the basis of a 360-day year comprised of twelve 30-day months. Mr. Smith will also receive an establishment fee (the “Establishment Fee”) equal to 2.5% of the amount of any drawdown payable at the time of the drawdown as consideration of the advancement of such drawdown.

Any outstanding balance on the Loan, including accrued interest, shall be immediately due and payable by the Company on the earlier of the date of expiration of the Smith Loan Agreement on June 30, 2025 and the occurrence of an Event of Default (as described below) (the “Due Date”). The Company can pre-pay the Loan at any time without notice and without penalty, but any amount of principal or interest repaid by the Company prior to the Due Date will be subject to an early payment fee of 2.5% of the value of any such payment.

Drawdowns under the Smith Loan Agreement must be made on a business day before the Due Date in a minimum amount of $10,000 and not cause the total principal advanced and interest on all such principal to exceed $2,000,000. Prior to any drawdown, Mr. Smith must receive a written drawdown request, a fully-executed note in the amount of the drawdown (each a “Drawdown Note”) and payment of the Establishment Fee in respect of such drawdown. Each drawdown request is subject to the consent of Mr. Smith, which may be arbitrarily withheld in Mr. Smith’s absolute discretion.

Under the terms of the Smith Loan Agreement, the Company has covenanted that so long as monies are outstanding under the Loan, it will: (a) repay, or cause to be repaid, the Loan and all other monies required to be paid to Mr. Smith in accordance with the Smith Loan Agreement and (b) duly observe and perform all obligations and agreements set forth in the Smith Loan Agreement and each Drawdown Note.

The following occurrences will trigger an Event of Default under the Smith Loan Agreement, causing the principal amount of Loan outstanding, plus accrued interest, costs and all other monies owing to Mr. Smith to immediately become payable upon demand by Mr. Smith, unless waived in writing by Mr. Smith:

·

If the Company defaults in any payment of principal, interest or other amount when the same is required under the Smith Loan Agreement and such default continues for a period of seven (7) days after notice in writing has been given by Mr. Smith to the Company regarding such default;

·

If the Company becomes insolvent, makes a general assignment for the benefit of its creditors, or if an order or an effective resolution passes for the winding-up, merger or amalgamation of the Company, or the Company is declared bankrupt or if a custodian or receiver is appointed under Bankruptcy and Insolvency Act (Canada), or if a compromise or arrangement is proposed by the Company to its creditors or any class of its creditors, or if a receiver or other officer with like powers is appointed for the Company; or

·

if the Company defaults in observing or performing any other covenant or agreement of the Smith Loan Agreement on its part to be observed or performed and such default continues for a period of seven (7) days after notice in writing has been given by Mr. Smith to the Company regarding such default.

The Smith Loan Agreement is secured by all of the Company’s assets pursuant to a general security agreement between the Company and Mr. Smith dated September 11, 2024.

Pursuant to the related party transaction provisions included in the Charter of the Audit Committee (the “Audit Committee”) of the Board of Directors of the Company (the “Board”), the Smith Loan Agreement was approved by the Audit Committee and the disinterested directors of the Board.

 

The above summary of the Smith Loan Agreement is qualified in its entirety by reference to the Smith Loan Agreement, which is filed as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated herein by reference.

Item 2.03

Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

 

The information set forth in Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this Item 2.03.

On September 11, 2024, the Company completed a drawdown from the credit facility under the Smith Loan Agreement in the amount of $33,000.

Item 9.01

Financial Statements and Exhibits.

 

(d) Exhibits

 

Exhibit		Description
10.1		Loan Agreement, dated as of September 11, 2024, between NioCorp Developments Ltd. and Mark Smith.
10.2		Security Agreement, dated as of September 11, 2024, between NioCorp Developments Ltd. and Mark Smith.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

	NIOCORP DEVELOPMENTS LTD.
DATE: September 11, 2024	By:	/s/ Neal S. Shah
		Neal S. Shah Chief Financial Officer

 

 

 

 

Exhibit 10.1

 

LOAN AGREEMENT

 

THIS AGREEMENT made effective as of the 11^th day of September, 2024 (the “Effective Date”).

 

BETWEEN:

 

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

 

(the “Borrower”)

 

OF THE FIRST PART

 

AND:

 

Mark Smith, businessman of Highlands Ranch, CO, USA 80126

 

(the “Lender”)

 

OF THE SECOND PART

 

WHEREAS:

 

A.       The Borrower has requested the Lender provide and maintain a Credit Facility (as hereinafter defined) for the benefit of the Borrower and the Lender has agreed to do so on the terms and subject to the conditions of this Agreement; and

B.       The Borrower has agreed to repay all sums owing pursuant to the Credit Facility to the Lender on the terms and conditions set forth in this Agreement.

 

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

 

1.

INTERPRETATION

 

1.1.

Definitions

 

In this Agreement:

 

(a)

“Business Day” has the meaning given to that term in Subsection 2.4 of this Agreement;

 

(b)

“Credit Facility” means the non-revolving credit facility in the amount of up to USD$2,000,000 which will be made available by the Lender to the Borrower in accordance with the terms hereof;

(c)

“Drawdown” means the drawdown of funds by the Borrower under the Credit Facility;

(d)

“Drawdown Note” has the meaning ascribed thereto in Subsection 2.7 of this Agreement;

(e)

“Drawdown Request” means a written request for a Drawdown, specifying the amount of the Drawdown, delivered by the Borrower to the Lender;

(f)

“Due Date” has the meaning given to that term in Subsection 2.4 of this Agreement;

(g)

“Establishment Fee” means an cash payment equal to 2.5% of the amount of any Drawdown, payable by the Borrower to the Lender in consideration of the advancement of such Drawdown;

(h)

“Event of Default” means any event specified in Subsection 7.1 of this Agreement;

 

(i)

“Lender’s Consent” means the written response of the Lender to a Drawdown Request confirming the Lender’s intention to provide the amount specified in the Drawdown Request in accordance with the provisions of Section 2 hereof, which may be arbitrarily withheld at the sole discretion of the Lender;

 

(j)

“Loan” means the advance by the Lender to the Borrower of the Principal, together with interest thereupon as set out in Subsection 2.3 of this Agreement;

 

(k)

“Note” means a promissory note in the form attached as Schedule “A”, copies of which the Borrower will issue to the Lender as evidence of additional sums owing to the Lender in conjunction with each Drawdown;

 

(l)

“Principal” means the principal amount advanced under the Credit Facility that has not been repaid; and

 

(m)

“Term” means a period commencing on the Effective Date and expiring June 30th, 2025.

 

1.2.

Governing Law

 

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

 

1.3.

Severability

 

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

 

1.4.

Headings

 

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

 

1.5.

Cross References

 

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

 

1.6.

Currency

 

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

 

1.7.

Schedules

 

The following schedule is incorporated by reference into this Agreement and forms a part of it:

 

Schedule	Description
A	Promissory Note

 

2.

AMOUNT AND TERMS OF LOAN

 

2.1.

Advance of Future Sums

 

The Lender agrees, subject to Subsection 2.7, to make the Credit Facility available to the Borrower, and the Borrower hereby irrevocably authorizes and directs the Lender to advance amounts requested by the Borrower under the Credit Facility to the Borrower, subject to the terms hereof.

 

2.2.

Security

 

All Principal and interest owing under the Credit Facility will be secured pursuant to the applicable Drawdown Note, as well as a General Security Agreement granted by the Borrower to the Lender dated September 11^th, 2024.

 

2.3.

Interest

 

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

 

 

2.4.

Due Date of Loan

 

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

(a)

the expiry of the Term; or

(b)

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

 

(the “Due Date”).

 

Any amount that is required to be paid on a day that is not a Business Day will be payable on the next Business Day without adjustment for interest thereon. A “Business Day” means any day except Saturday, Sunday, or a day that is a statutory holiday in Colorado, USA.

 

2.5.

Application of Payments

 

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

 

2.6.

No Set-Off

 

All amounts payable by the Borrower under this Agreement will be paid without set-off or counterclaim, and without any deductions or withholdings whatsoever.

 

2.7.

Drawdown Procedure

Each Drawdown shall:

(a)

be in the minimum amount of $10,000;

(b)

be made on a Business Day;

(c)

be made prior to the Due Date;

(d)

not cause the total Principal advanced and interest on all such Principal to exceed USD$2,000,000; and

(e)

be payable by the Lender to the Borrower only upon:

a.

receipt by the Lender from the Borrower of:

i.

a Drawdown Request, and

ii.

a fully-executed Note in the amount of the Drawdown (each a “Drawdown Note”); and

iii.

the Establishment Fee in respect of such Drawdown subject to mutual agreement; and

b.

receipt by the Borrower from the Lender of:

i.

the Lender’s Consent, which may be arbitrarily withheld by the Lender in his absolute discretion.

Subject to receipt of each applicable Lender’s Consent by the Borrower, each Drawdown shall be payable by the Lender to the Borrower fourteen days following delivery by the Lender to the Borrower of such Lender’s Consent.

 

3.

CONDITIONS PRECEDENT

 

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

 

(a)

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

 

(b)

any required approvals of this Agreement having been obtained.

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

 

(a)

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

 

(b)

all required approvals of this Agreement having been obtained.

 

4.

BORROWER’S REPRESENTATIONS AND WARRANTIES

 

4.1.

The Borrower represents and warrants to the Lender that:

 

(a)

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

 

(b)

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

 

(c)

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

 

(d)

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

 

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

 

5.

LENDER’S REPRESENTATIONS AND WARRANTIES

 

5.1.

The Lender represents and warrants to the Borrower that:

(a)

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

(b)

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

(c)

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

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

6.

COVENANTS OF BORROWER

 

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

 

(a)

repay, or cause to be repaid, the Loan and all other monies required to be paid to the Lender in accordance with this Agreement and each Drawdown Note; and

 

(b)

duly observe and perform all covenants and agreements set forth in this Agreement and each Drawdown Note.

7.

EVENTS OF DEFAULT AND REMEDIES

 

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

 

(a)

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

 

(b)

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

 

(c)

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

 

7.2       The remedies, rights and powers of the Lender under this Agreement, any Drawdown Note and at law and in equity are cumulative and not alternative and are not in substitution for any other remedies, rights or powers of the Lender and no delay or omission in exercise of any such remedy, right or power will exhaust such remedies, rights or powers or be construed as a waiver of any of them.

8.

MISCELLANEOUS

 

8.1

Waiver or Modification

 

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

 

8.2

Amendments

 

The parties may not amend this Agreement except by document in writing signed by both parties.

 

8.3

Further Documents

 

The parties will sign any other documents and do any other things necessary to carry out the intent of this Agreement.

 

8.4

Assignment

 

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

 

8.5

Time of the Essence

 

Time is of the essence of this Agreement.

 

8.7

Other Remedies

 

Nothing in this Agreement will prejudice or impair any other right or remedy that the Lender may otherwise have regarding the Loan or any rights or remedies it may have regarding other loans that the Lender may make to the Borrower.

 

8.8

Enurement

 

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

 

8.9

Independent Legal Advice

 

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

 

 

[Remainder of page left blank]

 

The Lender acknowledges that he has read and understood this provision of this Agreement and indicates so by signing this Agreement.

 

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

 

 

NIOCORP DEVELOPMENTS LTD.
Per:	/s/ Neal S. Shah
	Authorized Signatory
Signed, sealed and delivered by		)
MARK SMITH in the presence of:		)
		)
		)
Name		)
		)
		)		/s/ Mark A. Smith
Address		)		MARK SMITH
		)
		)
		)
		)
		)
Occupation		)

 

 

 

SCHEDULE “A”

 

PROMISSORY NOTE

 

US$_______________________ (the “Debt”)

DUE: June 30, 2025

 

Dated: _______________, 20___

 

FOR VALUE RECEIVED, NIOCORP DEVELOPMENTS LTD. (the “Borrower”), of 7000 South Yosemite Street, Suite 115, Centennial, CO, USA 80112, promises to pay to the order of MARK SMITH (the “Lender”), of Highlands Ranch, CO, USA 80126, the principal amount of $_________________ (the “Principal”) in lawful money of the United States of America, together with interest thereon, on the terms set out in that loan agreement dated September 10^th, 2024 between the Lender and the Borrower (the “Loan Agreement”).

 

This Note is issued as security for the Debt owing pursuant to the Loan Agreement.

 

Any amount of the Debt or interest thereon repaid by the Borrower prior to June 30, 2025 will be subject to an early payment fee of 2.5% of the value of any such payment.

 

Any amount that is required to be paid on a day that is not a business day will be payable on the next business day without adjustment for interest thereon. A business day means any day except Saturday, Sunday, or a day that is a statutory holiday in Colorado, USA.

 

THE BORROWER waives demand and presentment for payment, notice of non-payment, protest, and notice of protest of this Note.

 

NIOCORP DEVELOPMENTS LTD.

 

 

Per:                                             

Authorized Signatory

 

 

 

Exhibit 10.2

 

THIS SECURITY AGREEMENT made September 11, 2024

 

FROM:

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

(the "Debtor")

TO:

MARK SMITH, businessman of Highlands Ranch, CO, USA 80126 (the "Secured Party")

 

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

1.

Security Interest

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

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

(a)

all goods, including:

(i)

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

(ii)

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

(b)

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

(c)

all contractual rights, insurance claims, licenses, goodwill, patents, trademarks, trade names, copyrights, and other industrial or intellectual property of the Debtor or in which the Debtor has an interest, all other choses in action of the Debtor of every kind which

 

 

 

now are, or which may in future be, due or owing to or owned by the Debtor, and all other intangible property of the Debtor which is not Accounts, Chattel Paper, Instruments, Documents of Title, Investment Property, or Money;

(d)

all Money;

(e)

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

(f)

the undertaking of the Debtor;

(g)

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

(h)

all proceeds, renewals, and accretions, and substitution of any of the foregoing; and

(i)

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

1.2

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

(a)

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

(b)

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

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

1.3

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

(a)

is or in future becomes a fixture, or

(b)

constitutes a license, quota, permit or other similar right or benefit, or crops.

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

2.

Exceptions and Definitions

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

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

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

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

The term “default”, whenever used in this Agreement, unless otherwise required by the context, means any Event of Default (as defined in the Loan Agreement) or default under this Agreement which has not been cured or waived within 30 days after notice therefrom from the Secured Party.

3.

Obligation Secured

This Agreement and the Security Interest are in addition to and not in substitution for any other security interest now or in future held by the Secured Party from the Debtor or from any other person and shall be general and continuing security for the payment of all indebtedness and liability of the Debtor to the Secured Party (including interest thereon) pursuant to that certain Loan Agreement, dated effective as of September 11, 2024 (the “Loan Agreement”), between the Debtor and the Secured Party, present or future, absolute or contingent, joint or several, direct or indirect, matured or not, extended or renewed, wherever and however incurred, and any ultimate balance thereof, including all advances on current or running account and all future advances and re-advances, if any, and whether the same is from time to time reduced and thereafter increased or entirely extinguished and thereafter incurred again, as applicable, and whether the Debtor be bound alone or with another or others, and whether as principal or surety, and for the performance and satisfaction of all obligations of the Debtor to the Secured Party, whether or not contained in this Agreement, and whether the Debtor be bound alone or with another or others (all of which indebtedness, liability, and obligations pursuant to the Loan Agreement are collectively the "Obligations").

4.

Prohibitions

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

(a)

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

(b)

grant, sell, or otherwise assign its Chattel Paper; or

(c)

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

5.

Attachment

The Debtor acknowledges and confirms that:

(a)

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

(b)

that value has been given; and

(c)

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

6.

Representations and Warranties

6.1

The Debtor represents and warrants to the Secured Party that:

(a)

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

(b)

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

(c)

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

(d)

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

(e)

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

7.

Covenants of the Debtor

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

(a)

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

(b)

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

(c)

maintain the Collateral is good order and repair;

(d)

forthwith pay:

(i)

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

(ii)

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

(e)

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

(i)

inspecting the Collateral;

(ii)

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

(iii)

investigating title to the Collateral;

(iv)

taking, recovering, keeping possession of, and insuring the Collateral; and

(v)

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

(f)

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

(g)

notify the Secured Party promptly of

(i)

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

(ii)

the details of any material acquisition of Collateral;

(iii)

any material loss or damage to the Collateral;

(iv)

any material default by any account debtor in payment or other performance of his or her obligations to the Debtor with respect to any Accounts; the return to or repossession by the Debtor of the Collateral where such return or repossession of the Collateral is material in relation to the business of the Debtor; and

(v)

the details of any claims or litigation affecting the Debtor or the Collateral;

(h)

prevent the Collateral, other than Inventory sold, leased, or otherwise disposed of as permitted by this Agreement, from being or becoming an accession to other property not covered by this Agreement; permit the Secured Party and its representatives, at all reasonable times, access to all its property, assets, and undertakings and to all its books of account and records for the purpose of inspection, and render all assistance necessary for such inspection; and

 

deliver to the Secured Party from time to time promptly upon request:

(i)

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

(ii)

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

(iii)

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

(iv)

all financial statements prepared by or for the Debtor regarding the Debtor's business;

(v)

all policies and certificates of insurance relating to the Collateral; and

(vi)

any information concerning the Collateral, the Debtor, and the Debtor's business and affairs as the Secured Party may reasonably require;

(k)

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

(1)

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

(m)

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

7.2

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

7.3

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

8.

Insurance

8.1

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

(a)

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

(b)

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

(c)

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

8.2       If proceeds of any insurance required under this Agreement become payable, the Secured Party may, in its absolute discretion, apply those proceeds to such part or parts of the Obligations as the Secured

Party may see fit, or the Secured Party may release any such insurance proceeds to the Debtor for the purpose of repairing, replacing, or rebuilding, but any release of insurance proceeds to the Debtor shall not operate as a payment on account of the Obligations or in any way affect this Agreement.

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

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

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

9.

Use and Verification of Collateral

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

10.

Investment Property

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

11.

Collection of Debts

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

12.

Income from and Interest on Collateral

12.1

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

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

13.

Increases, Profits, Payments, or Distributions

13.1

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

(a)

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

(b)

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

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

14.

Disposition of Monies

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

15.

Performance of Obligations

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

16.

Enforcement

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

(a)

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

(b)

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

(c)

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

(d)

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

(e)

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

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

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

(a)

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

(i)

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

(ii)

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

(b)

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

(c)

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

(d)

in or toward payment to the Secured Party of all inte1est remaining unpaid in respect of the Obligations;

(e)

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

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

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

 

17.

Deficiency

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

18.

Rights Cumulative

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

19.

Liability of Secured Party

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

20.

Appointment of Attorney and Deed

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

20.2       Whether or not the Debtor attaches its corporate seal, if a corporation, this Agreement is intended

to be and is deemed to be a deed given under seal.

21.

Accounts

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

22.

Appropriation of Payments

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

23.

Liability to Advance

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

24.

Waiver

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

25.

Notice

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

 

To the Debtor.’		NioCorp Developments Ltd. 7000 South Yosemite Street, Suite 115, Centennial, CO, USA 80112 nshah@niocorp.com Attention: Neal Shah
To the Secured Party:		Mark Smith 418 E. Fairchild Dr., Highlands Ranch, CO, USA 80126 msmith@niocorp.com

 

 

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

26.

Extensions

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

27.

No Merger

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

28.

Assignment

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

29.

Satisfaction and Discharge

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

30.

Enurement

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

31.

Interpretation

31.1

In this Agreement:

(a)

"Debtor" and the personal pronoun "it" or "its" and any verb relating thereto and used therewith shall be read and construed as required by and in accordance with the context in which such words are used, depending upon whether the Debtor is one or more individuals,

corporations, or partnerships and, if more than one, shall apply to and be binding upon each of them jointly and severally;

(b)

"Act" means the British Columbia Personal Property Security Act and all regulations thereunder as amended;

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

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

31.4

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

31.5

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

32.

Miscellaneous

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

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

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

(a)

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

(b)

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

32.4

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

33.

Copy of Agreement and Financing Statement

The Debtor

(a)

acknowledges receiving a copy of this Agreement, and

(b)

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

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

Execution Date

 

Officer Certification	NIOCORP DEVELOPMENTS LTD.
	its Authorized Signatory
	/s/ Neal S. Shah

 

 

 

 

 

 

OFFICER CERTIFICATION:

 

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

 

v3.24.2.u1

Cover	Sep. 11, 2024
Document Type	8-K
Amendment Flag	false
Document Period End Date	Sep. 11, 2024
Entity File Number	000-55710
Entity Registrant Name	NioCorp Developments Ltd.
Entity Central Index Key	0001512228
Entity Tax Identification Number	98-1262185
Entity Incorporation, State or Country Code	A1
Entity Address, Address Line One	7000 South Yosemite Street
Entity Address, Address Line Two	Suite 115
Entity Address, City or Town	Centennial
Entity Address, State or Province	CO
Entity Address, Postal Zip Code	80112
City Area Code	(720)
Local Phone Number	639-4647
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Common Shares, without par value
Title of 12(b) Security	Common Shares, without par value
Trading Symbol	NB
Security Exchange Name	NASDAQ
Warrants, each exercisable for 1.11829212 Common Shares
Title of 12(b) Security	Warrants, each exercisable for 1.11829212 Common Shares
Trading Symbol	NIOBW
Security Exchange Name	NASDAQ

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