Warrant Indenture for Flow Through Shares | Canada

Issue share purchase warrants for flow-through shares in a Canadian oil and gas company under the terms of this Warrant Indenture.

• Tax Deductions. Canadian exploration and mining companies are able to issue flow through shares at a premium because investors are considered to be funding exploration and development costs and are therefore entitled to deduct these expenses from all other income. Tax deductions and credits which are normally available only to a corporation are allowed to flow through to the holders of the shares.
• Warrants. Warrants are issued on a one-for-one basis, one warrant entitling the holder to purchase one common share of the corporation.
• Changes in Share Structure. If the corporation's shares are subdivided or consolidated, the exercise price for the Warrants will be adjusted accordingly.
• Trustee. The trustee is responsible for recording details of all warrants exercised, and accounting for all funds received for the purchase of flow through shares.
• Supplemental Issues. The indenture contains provisions for supplemental indentures.
• Jurisdiction. The Warrant Indenture for Flow Through Shares template can be used in any Canadian province or territory except for Quebec.