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MUTUAL RESCISSION AND RELEASE AGREEMENT

 

This MUTUAL RESCISSION AND RELEASE AGREEMENT (“Agreement”) is entered into as of
February 24, 2020 (the “Effective Date”), by and between BIOETHICS, LTD., a
Nevada corporation (“BEI”); and FIRST FEDERAL MANAGEMENT GROUP, INC., a Utah
corporation (“FFMG”). In this Agreement, FFMG is sometimes referred to as the
“Rescinding Shareholder.”  

 

RECITALS

 

WHEREAS, on December 5, 2019 (the “Closing Date”), BEI and FFMG entered into and
consummated the transactions contemplated by that certain Contribution and
Subscription Agreement dated December 5, 2019 (the “Contribution Agreement”;
capitalized terms used but not otherwise defined herein shall have the
respective meaning given to such terms in the Contribution Agreement). The
Contribution Agreement and its schedule(s) are attached as Exhibit A to this
Agreement; 

 

WHEREAS, pursuant to the Contribution Agreement, FFMG contributed, assigned and
transferred to BEI by various instruments certain assets consisting
substantially of real property and contractual rights pertaining to the purchase
and sale of real property located in various locations in Utah;

 

WHEREAS, legal descriptions for the parcels conveyed by FFMG to BEI in fee
simple are disclosed on Schedule 1 to the Contribution Agreement, which schedule
also identifies the various contractual rights pertaining to the acquisition or
sale of real property conveyed or otherwise transferred pursuant to the
Contribution Agreement, which real property and contractual rights transferred
to BEI by FFMG are referred to herein as the “Contributed Assets”;

 

WHEREAS, Pursuant to the Contribution Agreement, FFMG contributed, assigned and
transferred to BEI the Contributed Assets in exchange for the issuance to FFMG
of 220,000,000 shares of common stock of BEI (the “220,000,000 BEI Shares”),
representing 95.2% of the issued and outstanding shares of BEI (the
“Contribution Consideration”), which contribution, assignment and transfer in
exchange for the issuance of the Contribution Consideration is referred to
herein as the “Transaction”; and

 

WHEREAS, certain disagreements have arisen between FFMG and the other
shareholders of BEI with respect to the value of the Contributed Assets, the
management of BEI and the development and future disposition of the Contributed
Assets and, in consequence of such disagreements, FFMG and BEI have mutually
agreed to cancel and rescind the Transaction and the Contribution Agreement in
their entirety pursuant to the terms more specifically set forth in this
Agreement.

 

NOW, THEREFORE, in consideration of the foregoing and the covenants, agreements,
representations and warranties hereinafter contained, and other good and  

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valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, BEI and FFMG agree as follows:

 

AGREEMENT

 

ARTICLE I

MUTUAL RESCISSION & DELIVERIES

 

1.1.Mutual Rescission. As of the Effective Date, the Contribution Agreement, the
Transaction and all agreements entered into by and between FFMG and BEI in
connection therewith are hereby retroactively cancelled, rescinded and
terminated in their entirety as of the Closing Date and are of no further force
or effect as if each of the same had never been executed and delivered, and each
of the parties to this Agreement will be restored to the position it was in
immediately before the execution of the Contribution Agreement, all as more
specifically set forth below (collectively, the “Rescission”). 

 

1.2Conveyances.  In furtherance of the Rescission, FFMG and BEI agree to
accomplish and deliver, each as applicable, the following on the Effective
Date: 

 

1.2.1FFMG Delivery of 220,000,000 BEI Shares. Promptly upon execution of this
Agreement, FFMG and BEI shall cause Colonial Stock Transfer Corp. (the “Transfer
Agent”), as transfer agent for the 220,000,000 BEI Shares, to transfer the
220,000,000 BEI Shares from FFMG to BEI in book entry form. 

 

1.2.2BEI Conveyance of the Rescission Assets.  BEI shall deliver to FFMG each of
the following (collectively, the “Rescission Assets”), pursuant to the
instruments identified below fully executed and notarized where required: 

 

(a)The Eagle Mountain/Fairfield Property, as identified in the Contribution
Agreement, which shall be re-conveyed by a Special Warranty Deed for the Eagle
Mountain/Fairfield Property in the form of the Special Warranty Deed executed in
connection with the Transaction; 

 

(b) The Kamas Property, as identified in the Contribution Agreement, which shall
be re-conveyed by a Special Warranty Deed for the Kamas Property in the form of
the Special Warranty Deed executed in connection with the Transaction; 

 

(c)The Cummings Contract, Green Haven Assignment, the Geneva Note, the Green
Haven Note and the Green Haven Deed of Trust, all as defined below, which shall
be assigned by BEI to FFMG by Assignment Agreement in the form attached hereto
as Exhibit B (the “Assignment Agreement”), duly executed by BEI and pursuant to
which BEI shall assign to FFMG and FFMG shall assume from BEI, all of BEI’s
right, title and interest in and to the following: 

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(i)the Real Estate Purchase Contract for Land, having an Offer Reference Date of
August 14, 2019, between Assignor, as Buyer, and D. LaVell Cummings, as Seller,
pertaining to the purchase and sale of approximately 160 acres of land (Parcel
No. 59-019-004 and 59-019-005) for Two Million Four Hundred Thousand and 00/100
Dollars ($2,400,000.00) (the “Cummings Contract”); 

 

(ii)the Agreement Regarding Assignment and Assumption of Real Estate Contract,
by and between Atlanta Income & Asset Group, Inc. and Green Haven Homes, LLC,
dated May 30, 2019 (the “Green Haven Assignment”); 

 

(iii)that certain Promissory Note dated as of the Closing Date made by Geneva
Family Assets, LLC,  a Utah limited liability company, in favor of Atlanta
Income & Asset Group, Inc.  (the “Geneva Note”); and 

 

(iv)that certain Promissory Note (the “Green Haven Note”) and Deed of Trust (the
“Green Haven Deed of Trust”) executed by Green Haven Homes, LLC (“Green Haven”),
in connection with the sale of the real property located Nibley, Utah (the
“Nibley Property”), contributed to BEI in connection with the Transaction and
subsequently sold by BEI pursuant to that certain Real Estate Purchase and Sale
Agreement, by and between Atlanta Income & Asset Group, Inc. and Green Haven,
dated May 28, 2019, as amended prior to the date hereof (the “Green Haven
Agreement”). 

 

(d)Copies of the Geneva Note and Green Haven Note, duly endorsed by BEI in favor
of FFMG (BEI not being in possession of the originals). 

 

1.2.3Resignation of FFMG Officers and Directors.  If they have not already done
so, the following officers shall submit resignations to the board of directors
of BEI: Keven Walgamott, Paul Simms and Joshua Turnbow.  If they have not
already done so, the following directors shall submit resignations to the
directors and shareholders of BEI: Keven Walgamott, Paul Simms, Joshua Turnbow
and Duane Richins.  The parties hereto also acknowledge and agree that any
document executed by FFMG removing Mark Scharmann or Elliott Taylor from any
officer or director position at BEI or appointing Lawrence Schroeder to any
officer or director position at BEI, shall, in each case, be deemed void ab
initio. 

 

 

1.3.No Encumbrances. Each of the parties to this Agreement represents and
warrants to the other that he/she/it has not assigned or transferred or
purported to assign or transfer, voluntarily or involuntarily, or by operation
of law, any matters released and/or transferred pursuant to this Agreement or
any portion of it, or any interest in the Contribution Agreement, the
220,000,000 BEI Shares, the Rescission Assets or any agreements entered into in
connection therewith. The parties each further represent and warrant that none
of the Rescission Assets or the 220,000,000 BEI Shares are subject to any lien,
claim, charge, encumbrance, pledge, security interest or claim of others, except
 

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with respect to the Eagle Mountain/Fairfield Property, which the parties
acknowledge is subject to Harris Deed of Trust recorded against such property.

 

1.4 Covenant to Cooperate with Audit if Necessary. FFMG hereby covenants and
agrees to use commercially reasonable efforts to cooperate with BEI and provide
BEI any necessary documentation, records and/or information to assist BEI in any
filing or disclosure matter required by the Securities and Exchange Commission
or Federal/State law. BEI hereby covenants and agrees to use commercially
reasonable efforts to cooperate with FFMG and provide FFMG any necessary
documentation and/or records and/or information to assist FFMG in any filing or
disclosure matter required by the Securities and Exchange Commission or
Federal/State law. 

 

1.5Other Filings. Each party shall mutually cooperate and file any documents
deemed reasonably necessary to be filed with the Transfer Agent and/or the
Nevada Secretary of State in connection with this Agreement and the transaction
contemplated hereby. 

 

ARTICLE II

RECIPROCAL RELEASES

 

2.1 Release by FFMG Releasing Parties.  FFMG, together with its respective
shareholders, members, officers, directors, employees, agents, trustees,
beneficiaries and any other party claiming by, through or under the foregoing,
including, specifically, without limitation Atlanta Income & Management Group,
Inc., Joseph E. Simmons (a/k/a J. Simmons), Keven Walgamott, Paul Simms and
Joshua Turnbow (all of the foregoing are collectively referred to as the “FFMG
Releasing Parties”), collectively and individually, hereby release, acquit and
forever discharge BEI, its parents, subsidiaries and affiliated entities, the
members, successors and assigns of the foregoing, and their respective officers,
directors, employees, insurance carriers, attorneys, accountants and agents,
including, without limitation, Mark A. Scharmann and Elliott N. Taylor (all of
the foregoing are collectively referred to as the “BEI Released Parties”) from
any and all claims, liens, liabilities, obligations in general, debts, demands,
suits, actions, causes of action, judgments, attorneys’ fees, expenses, and
rights of subrogation or indemnification, of any kind or nature whatsoever, in
law or equity, past or present, whether known or unknown, latent or patent that
the FFMG Releasing Parties and each of them have or may claim to have against
the BEI Released Parties and each of them as of the date of this Agreement is
executed by all of the parties hereto, for:  (a) for all claims arising out of
or related in any way to the Contribution Agreement, the Transaction and the
Rescission, together with all written or oral modifications, amendments,
extensions or other agreements related to the business conducted pursuant
thereto, including any purported management, consulting or other advisory
agreements; (b) all claims for attorneys’ fees, costs and interest in connection
with the Transaction and the transactions contemplated hereby; (c) except as
required hereby, all claims that arise out of or relate to any actions or
failure to act, or statements made or the failure to make statements, of any of
the BEI Released Parties through the date this Agreement with respect to the
Transaction or the transactions contemplated hereby; (d) all claims or
liabilities arising as a result of any taxes imposed on  

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FFMG or the FFMG Releasing Parties by any governmental authority in connection
with the Rescission, the Rescission Assets and the transactions contemplated
hereby; and (e) all claims or liabilities arising as a result of any fines,
penalties or judgments imposed or levied on FFMG or the FFMG Releasing Parties
by any governmental authority, including any State or Federal securities law
authority, in connection with the Rescission, the Rescission Assets and the
transactions contemplated hereby.  The FFMG Releasing Parties and each of them
hereby acknowledge and agree that they have relinquished all right, title and
interest in and to the 220,000,000 BEI Shares, the Rescission Assets and any and
all real and personal property owned by BEI other than the Contributed Assets.
Nothing in this paragraph is intended to nor shall it release or waive in any
way any right or obligation of the parties hereto under this Agreement.

 

2.2Release by BEI Releasing Parties.  BEI, together with its respective
shareholders, members, officers, directors, employees, agents, trustees,
beneficiaries and any other party claiming by, through or under the foregoing,
including specifically, without limitation  Mark A. Scharmann and Elliott N.
Taylor (all of the foregoing are collectively referred to as the “BEI Releasing
Parties”), collectively and individually, hereby release, acquit and forever
discharge FFMG, its parents, subsidiaries and affiliated entities, the members,
successors and assigns of the foregoing, and their respective officers,
directors, employees, insurance carriers, attorneys, accountants and agents,
including, without limitation, Atlanta Income & Asset Group, Inc., Joseph E.
Simmons (a/k/a J. Simmons), Keven Walgamott, Lawrence Schroeder, Joshua Turnbow
and Paul Simms (all of the foregoing are collectively referred to as the “FFMG
Released Parties”) from any and all claims, liens, liabilities, obligations in
general, debts, demands, suits, actions, causes of action, judgments, attorneys’
fees, expenses, and rights of subrogation or indemnification, of any kind or
nature whatsoever, in law or equity, past or present, whether known or unknown,
latent or patent that the BEI Releasing Parties and each of them have or may
claim to have against the FFMG Released Parties and each of them as of the date
of this Agreement is executed by all of the parties hereto, for:  (a) for all
claims arising out of or related in any way to the Contribution Agreement, the
Transaction and the Rescission, together with all written or oral modifications,
amendments, extensions or other agreements related to the business conducted
pursuant thereto, including any purported management, consulting or other
advisory agreements; (b) all claims for attorneys’ fees, costs and interest in
connection with the Transaction and the transactions contemplated hereby; (c)
except as required hereby, all claims that arise out of or relate to any actions
or failure to act, or statements made or the failure to make statements, of any
of the FFMG Released Parties through the date this Agreement with respect to the
Transaction or the transactions contemplated hereby; (d) all claims or
liabilities arising as a result of any taxes imposed on BEI or the BEI Releasing
Parties by any governmental authority in connection with the Rescission and the
transactions contemplated hereby; and (e) all claims or liabilities arising as a
result of any fines, penalties or judgments imposed or levied on BEI or the BEI
Releasing Parties by any governmental authority, including any State or Federal
securities law authority, in connection with the Rescission, the Rescission
Assets and the transactions contemplated hereby.  The BEI Releasing Parties and
each of them hereby acknowledge and agree that they have relinquished all right,
title and interest in and to the Contributed Assets and any and all real and
personal property owned by FFMG, together  

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with any and all development agreements and other entitlements appurtenant to
such real property or approved in connection with such real property. Nothing in
this paragraph is intended to nor shall it release or waive in any way any right
or obligation of the parties hereto under this Agreement.

 

 

 

ARTICLE III

GENERAL PROVISIONS

 

3.1.Authority. Each party has the authority to enter into, execute and deliver
this Agreement and any other instruments and agreements required to be executed
and delivered pursuant to this Agreement and to consummate the transactions
contemplated herein. This Agreement is a valid and binding obligation of each
party, enforceable in accordance with its terms. 

 

3.2Survival. The representations and warranties made by the parties hereto in
this Agreement, and their respective obligations to be performed under the terms
hereof at, prior to or after the Closing hereunder, shall not expire with, or be
terminated or extinguished by, such Closing, notwithstanding any investigation
of the facts constituting the basis of the representations and warranties of any
party by any other party hereto. 

 

3.3.Further Assurances. At the request of any of the parties hereto, and without
further consideration, the other parties agree to execute such documents and
instruments and to do such further acts as may be necessary or desirable to
effectuate the transactions contemplated hereby. 

 

3.4.Each Party to Bear Own Costs. Each of the parties shall pay all costs and
expenses incurred or to be incurred by him or it in negotiating and preparing
this Agreement and in closing and carrying out the transactions contemplated by
this Agreement. 

 

3.5.Headings. The subject headings of the Articles and Sections of this
Agreement are included for purposes of convenience only, and shall not affect
the construction or interpretation of any of its provisions. 

 

3.6.Entire Agreement; Waivers. This Agreement and the exhibits hereto constitute
the entire agreement between the parties pertaining to the contemporaneous
agreements, representations, and understandings of the parties, and this
Agreement supersedes in their entirety any and all prior verbal or written
agreements pertaining to the subject matter hereof, including, without
limitation, any letter of intent. No supplement, modification, or amendment of
this Agreement shall be binding unless executed in writing by all parties. No
waiver of any of the provisions of this Agreement shall be deemed, or shall
constitute, a waiver of any other provision, whether or not similar, nor shall
any waiver constitute a continuing waiver. No waiver shall be binding unless
executed in writing by the party making the waiver. 

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3.7.Third Parties. Except for the provisions of Section 3.13 herein, nothing in
this Agreement, whether express or implied, is intended to confer any rights or
remedies under or by reason of this Agreement on any persons other than the
parties to it and their respective successors and assigns, nor, except for the
provisions of Section 3.13 herein, is anything in this Agreement intended to
relieve or discharge the obligation or liability of any third person to any
party to this Agreement, nor shall any provision give any third persons any
right of subrogation or action over against any party to this Agreement. 

 

3.8.Successors and Assigns. This Agreement shall be binding on, and shall inure
to the benefit of, the parties to it and their respective heirs, legal
representatives, successors, and assigns. 

 

3.9.Attorneys’ Fees. In the event that any legal proceeding is brought to
enforce or interpret any of the provisions of this Agreement, the prevailing
party shall be entitled to recover reasonable attorneys’ fees whether or not the
action or proceeding proceeds to final judgment. 

 

3.10.Governing Law; Waiver of Jury Trial. This Agreement shall be governed by
and construed in accordance with the laws of the State of Utah, excluding that
body of law relating to conflict of laws. To the fullest extent permitted by
law, and as separately bargained-for-consideration, each party hereby knowingly
and voluntarily waives and relinquishes any right to trial by jury in any
action, suit, proceeding, or counterclaim of any kind arising out of or relating
to this Agreement. Any lawsuits related to this Agreement shall be litigated
exclusively in the State of Utah Third District Court in and for Salt Lake
City. 

 

3.11.Acknowledgments and Assent.  The parties, and each of them, acknowledge
that to have been given sufficient time to consider the terms and conditions of
this Agreement; and have been advised to consult with an attorney prior to
signing this Agreement and has in fact consulted with counsel of his own
choosing prior to executing this Agreement.  The parties, and each of them,
agree to have read this Agreement and understand the content herein, and freely
and voluntarily assents to all of the terms herein. 

 

3.12.Release of Scrivener. Notwithstanding any law to the contrary, ambiguities
in this Agreement or in any other document executed and delivered in connection
herewith shall not be resolved against any party due to the drafting thereof by
one party or the other. The parties are relying on independent counsel of their
choosing to advise them regarding the rights and obligations created by this
Agreement. 

 

3.13. Counterparts. This Agreement may be executed electronically in two or more
counterparts, each of which shall be deemed an original but all of which shall
constitute one and the same instrument. 

 

[signature page follows]

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IN WITNESS WHEREOF, the parties have executed this Mutual Rescission and Release
Agreement effective on the day and year first indicated above.

 

 

BIOETHICS, LTD.

 

 

/s/ Mark Scharmann_________________________________ 

Signature

 

Mark Scharmann 

Printed Name

 

President and CEO__________________________________ 

Title

 

February 22, 2020 

Date signed

 

 

FIRST FEDERAL MANAGEMENT GROUP, INC.

 

 

/s/ J Simmons_________________________________ 

Signature

 

J Simmons 

Printed Name

 

Chairman __________________________________ 

Title

 

February 21, 2020 

Date signed

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[Signature page to Rescission and Release Agreement]

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The following affiliates of each of the parties to this Agreement acknowledge
and agree to be bound by the terms set forth in this Agreement as set forth
herein:

 

BEI Affiliates:

 

/s/ Mark Scharmann

 

FFMG Affiliates:

_______________________

Mark Scharmann

 

/s/ Elliott Taylor

 

/s/ J Simmons

_______________________

J Simmons

 

/s/ Keven Walgamott

_______________________

Elliott Taylor

 

_______________________

Keven Walgamott

 

/s/ Paul Simms

 

_______________________

Paul Simms

 

Atlanta Income & Asset Group, Inc.,

 

/s/ J Simmons

 

By: J Simmons, President

 

 

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[Signature page to Rescission and Release Agreement]

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EXHIBIT A

 

Contribution Agreement

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EXHIBIT B

 

Form of Assignment Agreement

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