Canada Warrant Indenture for Flow Through Shares

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

• 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 are issued on a one-for-one basis, one warrant entitling the holder to purchase one common share of the corporation.
• If the corporation's shares are subdivided or consolidated, the exercise price for the Warrants will be adjusted accordingly.
• The trustee is responsible for recording details of all warrants exercised, and accounting for all funds received for the purchase of flow through shares.
• The indenture contains provisions for supplemental indentures.

The Canada Warrant Indenture for Flow Through Shares template can be used in any province or territory.