Kitsumkalum Agreement-in-Principle 10. a) subject to interests identified in Appendix C to the Final Agreement; and b) will not include Subsurface Resources unless the Subsurface Resources were included in the original grant. In the event that Kitsumkalum will be required to issue replacement tenures on lands referred to in paragraph 8, or to assume existing tenures, the terms and conditions of those tenures will be included as part of the Final Agreement. Ownership of Kitsumkalum Lands 11. On the Effective Date, Kitsumkalum will own Kitsumkalum Lands in fee simple and Kitsumkalum fee simple ownership of Kitsumkalum Lands will not be subject to any condition, proviso, restriction, exception, or reservation set out in the Land Act, or any comparable limitation under Federal Law or Provincial Law. 12. In accordance with the Final Agreement, Kitsumkalum Constitution, and Kitsumkalum Law, Kitsumkalum may transfer interests in its Kitsumkalum Lands without the consent of Canada or British Columbia. 13. Except as provided in paragraph 15 of Appendix E, or with the consent of Canada and British Columbia in accordance with paragraph 16, a parcel of Kitsumkalum Lands does not cease to be Kitsumkalum Lands as a result of the disposition of an interest in such parcel. 14. If Kitsumkalum wishes to dispose of a fee simple estate in a parcel of Kitsumkalum Lands it will, before the disposition, register the indefeasible title to that parcel under the Land Title Act in accordance with the Final Agreement. For greater certainty, any Kitsumkalum Lands registered under the Land Title Act will continue to be Kitsumkalum Lands. 15. If Kitsumkalum transfers the estate in fee simple in a parcel of its Kitsumkalum Lands to any person other than to a: a) Kitsumkalum Member; b) Kitsumkalum Corporation; or c) Kitsumkalum Institution, expropriation by a Provincial Expropriating Authority of such land may occur in accordance with Provincial Law and not subject to the Provincial Expropriation provisions. 16. Kitsumkalum may remove a parcel of land from Kitsumkalum Lands with the consent of Canada and British Columbia. 17. In considering whether to consent to the removal of a parcel of land from Kitsumkalum Lands in accordance with a request under paragraph 16, Canada and British Columbia may consider: a) necessary jurisdictional, administrative and servicing arrangements; b) the views of any affected Local Government or neighbouring First Nation; c) whether the removal of the land will have an impact on fiscal arrangements negotiated between Kitsumkalum and Canada or British Columbia; d) whether the removal of the land will have any legal or financial implications for Canada or British Columbia; or e) any other matter that Canada or British Columbia considers relevant. Page 32 of 140

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