Document:

Exhibit 10.15

 

EMPLOYMENT AGREEMENT

 

EMPLOYMENT AGREEMENT
(the "Agreement"), dated as of August 8, 2012 between STRATUS MEDIA GROUP, INC., with its principal place of business
at 3 East De La Guerra Street, Santa Barbara, California 93101 (the "Company"), and Tim Boris (hereinafter referred to
as "Executive").

 

W I T N E S S E T H:

 

WHEREAS, the Company
is engaged in the business of sports and entertainment event ownership, television broadcasting of events, product merchandising,
marketing, operations, sales, agent, venue and corporate representation and consultancy (the “Business”); and,

 

WHEREAS, the Company
wishes to employ Executive, and Executive wishes to accept such employment, on the terms and conditions set forth in this Agreement.

 

NOW THEREFORE, for
and in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as follows:

 

1.             EMPLOYMENT.
The Company shall employ the Executive and Executive hereby accepts such employment with the Company, upon the terms and conditions
hereinafter set forth for the period beginning on August 8, 2012 and ending on the Termination Date determined pursuant to Section
4 (the “Employment Term”).

 

		2.	POSITION
                                                              AND DUTIES.

 

(a)During
the Employment Term, Executive shall serve as General Counsel and Vice President of Legal Affairs, and shall report to the Chief
Operating Officer and Chief Executive Officer of the Company and the Board of Directors. Subject to the direction and control of
the Board of Directors of the Company, Executive's duties shall include (i) providing legal counsel and analysis on all Company
related legal matters, (ii) preparation and review of all legal documents and contracts related to the Company, (iii) review and
analysis of all Company related transactions, and (iv) coordination with and monitoring of outside counsel. Executive shall perform
such other duties requested by or pursuant to the lawful direction and control of the Board of Directors of the Company
(or a committee thereof) including such services and duties normally commensurate with the General Counsel. The Executive acknowledges
and agrees that he owes a fiduciary duty of loyalty to the Company to discharge his duties and otherwise act in a manner consistent
with the best interests of the Company.

 

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(b)During the Employment
Term, the Executive shall devote his reasonable efforts and all of his working time, attention and energies to the performance
of his duties and responsibilities under this Agreement (except for paid time off to which he is entitled pursuant to the terms
of this Agreement, illness or incapacity or activities which do not, in the sole judgment of the Board of Directors (or a committee
thereof), interfere or conflict with his duties and responsibilities in any material respect). During the Employment Term, Executive
shall not engage in any business activity which, in the judgment of the Board of Directors (excluding the Executive if he should
be a member of the Board of Directors at the time of such determination), conflicts with the duties of Executive hereunder, whether
or not such activity is pursued for gain, profit or other pecuniary advantage. Any material outside business activities of Executive,
including, without limitation, serving on the board of directors of any other entity, must be approved by the Board of Directors
of the Company (excluding any vote of the Executive) in advance.

 

(c) The foregoing
notwithstanding, Executive is permitted to teach as an adjunct professor for an educational institution, but such position shall
be limited to one class per each semester and said position shall not interfere with Company business and must be fulfilled during
personal, non-business hours.

 

		3.	COMPENSATION
                                                              AND BENEFITS.

 

As compensation in
full for the services to be rendered by Executive under this Agreement, the Company agrees to compensate Executive as follows:

 

(a) During the Employment
Term (unless earlier terminated as provided herein), the Company shall pay, and Executive shall accept, an annualized salary of
not less than One Hundred and Eighty Thousand Dollars ($180,000) ("Base Salary") payable in accordance with the Company's
normal payroll practices and subject to any and all necessary and legal payroll and other deductions. The Base Salary and Executive's
performance will be reviewed by the Board of Directors of the Company or a compensation committee of the Board of Directors at
the end of the Employment Term. Notwithstanding anything to the contrary contained in this Section 3(a) and subject to this Agreement
being renewed, the compensation committee of the Board of Directors will review Executive's Base Salary on an annual basis to consider
appropriate merit-based increases to the Base Salary.

 

(b) Executive may
be eligible to receive annual bonuses as follows: (i) a discretionary cash bonus based on achieving defined goals and Executive’s
performance of job duties, and results of operations, and (ii) a discretionary, cash bonus based upon the Company’s overall
performance. 

 

(c) Executive shall be eligible
to participate in those non-salary benefits and

programs generally made available to executive
employees of the Company, as are in effect from time to time, including, but not limited to, any health, dental, life insurance,
long term disability insurance plan, 401(k) or other retirement savings plan, and any other employee benefit plan, subject to any
and all terms, conditions, and eligibility requirements of said plans or benefits, as may from time to time be prescribed by the
Company. The foregoing not withstanding, the Company will pay, in full, the premium for health insurance coverage for Executive,
his spouse and his two children.

 

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(d) Executive shall
be entitled to twenty days of paid time off each twelve-month period from the date employment commences under this Agreement. Executive
may carry one hundred and fifty percent (150%) of their annual accrual over to the next calendar year. Please refer to the most
current handbook for all other policies and procedures.

 

(e)Subject to the
financial condition of the Company, Executive shall be entitled to fly business class on all international flights. All domestic
flights to be economy class. Furthermore, Company will pay or reimburse Executive for 80% percent of his monthly cellular phone
usage chargers.

 

(f)Upon submission
of proper vouchers and evidence, the Company will pay or reimburse Executive for reasonable transportation, hotel, travel and related
expenses incurred by Executive on business trips away from Executive's principal office, and for other business expenses reasonably
incurred by Executive in connection with the business of the Company during the Employment Term, all subject to such limitations
and procedures as may from time to time be prescribed by the Board of Directors of the Company.

 

(g)Executive shall
receive an initial grant of options for the Company's common stock in accordance with the terms to be set forth by the Company’s
Compensation Committee and hereto and incorporated herein by this reference.

 

(h)Executive is eligible
for sales commissions pursuant to the Company’s commission plan for non-sales employees who identify sales and/or sponsorship
opportunities that result in executed contracts between the Company and the third party identified by Executive.

 

		4.	TERMINATION.

 

(a)The Executive’s
employment under this Agreement shall terminate upon the earliest to occur of (the date of such occurrence being the “Termination
Date”) of (1) August 8, 2013, unless extended by mutual written consent of the Company and the Executive (2) the effective
date of Executive’s resignation for Good Reason (as defined below) or without Good Reason, (3) the Executive’s death
or a Disability (an “Involuntary Termination”), (4) the effective date of a termination of Executive’s employment
for Cause by the Board of Directors (a “Termination for Cause”), and (5) the effective date of a termination of the
Executive’s employment by the Board of Directors for reasons that do not constitute cause (a “Termination Without Cause”).

 

(b)If Company appoints
Executive to serve on the Board of Directors of Company or its subsidiary companies, in accordance with its Bylaws, upon termination
of employment for any reason, Executive shall immediately resign from all boards on which Executive serves under this Agreement,
with an effective date the same as the date of termination of employment.

 

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(c)The effective
date of a resignation shall be the date that the written resignation by the Executive is received by the Company; the effective
date of an Involuntary Termination shall be the date of death or, in the event of a Disability, the date specified in a notice
delivered to the Executive by the Company; the effective date of a Termination for Cause shall be the date specified in a notice
delivered to the Executive by the Company of such termination; and the effective date of a Termination Without Cause shall be the
date specified in a notice delivered to Executive by the Company of such termination which effective date shall be no less than
thirty (30) days following the date of such notice.

 

(d)For purposes of
this Agreement, “Cause” shall mean those instances in which the Board of Directors (excluding the Executive if the
Executive is a member of the Board at such time) determines in good faith that Executive has (i) intentionally furnished materially
false, misleading, or intentionally failed to provide material information to the Company's Board of Directors that results or
could reasonably be expected to result in material detriment to the Company, (ii) willfully refused or failed to follow the lawful
instructions of the Board of Directors with respect to any material matter, consistent with the terms of this Agreement, which
refusal or failure shall not have been cured, if capable of being cured, within 10 days following written notice thereof; provided,
however, that no notice or opportunity to cure shall be required with respect to repeated refusal or failure to follow the lawful
instructions of the Board of Directors, consistent with the terms of this Agreement, (iii) convicted of any act involving moral
turpitude (including those involving fraud, theft or dishonesty by Executive) or any crime (whether felony or misdemeanor) other
than traffic violations or other minor offenses that could not reasonably be expected to have an adverse effect on the Company's
business or reputation, (iv) the continued use of alcohol or drugs by the Executive to an extent that, in the good faith determination
of the Board of Directors (excluding the Executive if the Executive is a member of the Board at such time), such use interferes
with performance of the Executive’s duties and responsibilities, (v) committed or engaged in any other material act constituting
or comprising a conflict or interest or cause under applicable law, or (vi) breached his obligations under this Agreement in any
material respect, which breach has materially damaged the Company and, if capable of being cured, shall not have been cured upon
15 days' written notice thereof. "Cause" is not intended to include mere dissatisfaction of the Company or its Board
of Directors with the manner in which Executive performs his duties nor the good faith failure of the Executive to perform his
duties successfully.

 

(e)For purposes of
this Agreement, the term “Disability” shall mean the physical or mental inability of the Executive (1) based upon a
good faith determination by the Board of Directors (excluding the Executive if the Executive is a member of the Board at such time)
to substantially perform all of his duties under this Agreement for a period of ninety (90) consecutive days or longer or for any
90 days in any consecutive 12 month period, or (2) that, in the opinion of a physician selected by the Board of Directors (excluding
the Executive if the Executive is a member of the Board of Directors at such time), is likely to prevent the Executive from substantially
performing all of his duties under this Agreement for more than 90 days in any period of 365 consecutive days.

 

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(f)For
purposes of this Agreement, the term "Good Reason" shall mean any of the following events which occur without the consent
of Executive (i) a material change in the scope or nature of Executive's duties and subject to the direction and control of the
CEO and or the Board of Directors, (ii) the requirement that Executive report to a person or entity other than the COO, CEO and/or
Board of Directors; (iii) a required change in the city in which Executive's office is located being understood that the executive’s
offices are in Los Angeles and Santa Barbara and Executive is unable to transfer to new location in which Company demands a permanent
relocation; (iv) a material change in the line of the Company's business, (which, for this purpose is the live entertainment business
sector); (v) knowingly unlawful events that are uncured in a timely manner, and (vi) Change in Control as defined as the
sale or other disposition of all or substantially all the assets of the Company, or (ii) any person or entity, or two or more persons
or entities acting in concert, shall have acquired beneficial ownership (within the meaning of Securities and Exchange Commission
Rule 13d-3 under the Securities Exchange Act of 1934), directly or indirectly, of securities of the Company representing more than
50% of the combined voting power of all outstanding securities of the Company entitled to vote in the election of directors, and
(iii) a merger or consolidation involving the Company unless following such merger or consolidation those persons who were beneficial
owners (defined as set forth in clause (ii) above) immediately prior thereto own, directly or indirectly, more than 50% of the
combined voting power of the then outstanding voting securities of the entity resulting from such merger or consolidation.

 

(g)Company and Executive
agree to use best efforts to agree to renegotiate Executive’s Agreement no later than forty-five (45) days prior end of Term
of Agreement, if not otherwise terminated.

 

		5.	EFFECT OF TERMINATION

 

(a)In the event of
a Termination Without Cause or a resignation of Executive for Good Reason, the Executive or his beneficiaries or estate shall have
the right to receive only the following:

 

(1) The sum of
the unpaid portion of the Base Salary through Agreement Term as one payment payable within fourteen (14) days of Termination Without
Cause or Resignation for Good reason. In the event that Executive is terminated Without Cause or resigns for Good Reason within
sixty (60) days of the end of the one year Agreement Term, then Executive shall receive three (3) months of base salary compensation.
In the event that the Company renews Executive’s employment, then in year two if Executive is terminated Without Cause or
resigns for Good Reason within ninety (90) days of the end of the Agreement Term, then Executive shall receive three (3) months
of base salary compensation.

 

(2)Reimbursement
for any expenses incurred prior to the Termination Date for which the Executive shall not have been previously reimbursed in accordance
with the provisions of Section 3(f) above.

 

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(b)In the event of
a Termination for Cause, an Involuntary Termination or a resignation by Executive that is not for Good Reason, the Executive or
his beneficiaries or estate shall have the right to receive the following:

 

(1) Reimbursement
for any expenses incurred prior to the Termination Date for which the Executive shall not have been previously reimbursed in accordance
with the provisions of Section 3(f) above.

 

(c)In the event of
a Termination based upon the expiration of the one year term, the Executive or his beneficiaries or estate shall have the right
to receive the following:

 

(1) Reimbursement
for any expenses incurred prior to the Termination Date for which the Executive shall not have been previously reimbursed in accordance
with the provisions of Section 3(f) above.

 

(d)Upon any termination,
neither the Executive nor his beneficiaries or estate shall have any further rights under this Agreement or any rights arising
out of this Agreement other than as provided in Section 5(a), (b) and (c) above. The rights of the Executive set forth in this
Section 5 are intended to be the Executive’s exclusive remedy for termination and to the greatest extent permitted by applicable
law, the Executive waives all other remedies.

 

(e)Following any
termination, Executive shall reasonably cooperate with Company in all matters relating to the winding up of the Executive's work
on behalf of Company and the orderly transfer of any such pending work and of Executive's duties and responsibilities for Company
to such other person or persons as may be designated by Company in its sole discretion. Executive shall not be entitled to any
additional pay or severance in connection with such cooperation.

 

		6.	NONDISCLOSURE AND NONUSE OF CONFIDENTIAL INFORMATION.

   

The Executive will
not disclose, disseminate or use at any time, either during the Employment Term or thereafter, any Confidential Information of
which the Executive is or becomes aware, whether or not such information is developed by him, except to the extent that such disclosure
or use is directly related to and required by the Executive’s performance of duties assigned to the Executive by the Company.
For purposes of this Agreement, the term “Confidential Information” shall mean: information that is not generally known
to the public and that is used, developed or obtained by the Company in connection with the Business, including, without limitation,
(a) information, observations, procedures and data obtained by the Executive while employed by the Company concerning the business
or affairs of the Company, (b) planned or actual products or services, (c) costs and pricing structures, customer, supplier or
employee lists, (d) analyses, drawings, photographs and reports, (d) computer software and hardware, including operating systems,
applications and program listings, (e) data bases, (f) accounting and business methods, (g) research and development, and (h) inventions,
devices, new developments, methods, processes, technology and trade secrets (including, without limitation all Work Product). Confidential
Information will not include (i) any information that has been published, through no direct or indirect effort or action by the
Executive, in a form generally available to the public prior to the date the Executive proposes to disclose such information, and
(ii) any general expertise, contacts or know-how reflective of Executive's experience as an executive in the sports management
and event field.

 

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		7.	INVENTIONS AND PATENTS. 

   

The Executive agrees
that all Work Product belongs to the Company The Executive will promptly disclose such Work Product to the Board of Directors and
perform all actions reasonably requested by the Board to establish and confirm such ownership (including, without limitation, the
execution and delivery of assignments, consents, powers of attorney and other instruments) and to provide reasonable assistance
to the Company in connection with the prosecution of any application for patents, trademarks, trade names, service marks or reissues
thereof or in the prosecution or defense of any claims by or against the Company relating in any way to Work Product. For purposes
of this Agreement, the term “Work Product” shall mean all inventions, innovations, improvements, technical information,
systems, software or equipment developments, methods, designs, analyses, drawings, reports, service marks, trademarks, trade names,
logos and all similar or related information (whether patentable or unpatentable) which relates to the Company’s actual or
anticipated business, research and development or existing or future products or services and which are conceived, developed or
made by the Executive (whether or not during usual business hours and whether or not alone or in conjunction with any other person,
group or entity) while employed by the Company as they may solely relate to Company’s business, together with all patent
applications, letters patent, trademark, trade name and service mark applications or registrations, copyrights and reissues thereof
that may be granted for or upon the foregoing in relation to Company’s business.

 

		8.	NON-COMPETE, NON-SOLICITATION, NON-DISPARAGEMENT.

   

The Executive acknowledges
and agrees with the Company that during the course of the Executive’s employment with the Company, the Executive will have
the opportunity to developrelationships with existing employees, customers and other business associates of the Company. Accordingly,
the Executive agrees as follows:

 

(a)The Executive
shall not, directly or indirectly, enter into, engage in, assist, give or lend funds to or otherwise finance, be employed by
or consult with, or have a financial or other interest in, any business which is directly similar to or directly competitive with
the Business, whether for himself or as an independent contractor, agent, stockholder, partner or joint venturer for any other
person, group or entity. To the extent that the covenant provided for in this Section 8(a) may later be deemed by a court to be
too broad to be enforced with respect to its duration or with respect to any particular activity or geographic area, the court
making such determination shall have the power to reduce the duration or scope of the provision.

 

(b)Notwithstanding
the foregoing, the aggregate ownership by the Executive of no more than two percent (on a fully-diluted basis) of the outstanding
equity securities of any person, group or entity, which securities are traded on a national securities exchange, quoted on the
Nasdaq Stock Market or other automated quotation system, and which person, group or entity competes with the Company within the
Territory shall not be deemed to be a violation of Section 8(a).

 

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(c)To the extent
that the actions herein by Executive would have a material adverse impact on the Company, Executive covenants and agrees that during
the term of his employment and for six months following the Termination Date, the Executive will not, directly or indirectly, either
for himself or for any other person, group or entity (1) solicit any employee, independent contractor or service provider of the
Company to terminate or modify his, her or its employment or other relationship with the Company or employ or retain any person
or entity, (2) solicit any customer, licensee or licensor, of the Company or any service provider to the Company to purchase or
provide products or services on behalf of the Executive or such other person, group or entity that are competitive with the products
or services provided by the Company, or (3) disparage the business reputation of the Company, its Board of Directors or its management
team.

 

(d) In addition to
any other remedies available to Executive under this Agreement or applicable law, in the event that the Company fails to meet any
of its ongoing payment or severance obligations to Executive and such failure continues uncured for ten (10) business days, all
of Executive's post-term obligations under this Section 8 shall terminate.

 

		9.	RETURN OF COMPANY'S PROPERTY UPON TERMINATION.

 

The Executive shall
immediately deliver to the Company at the termination of the Employment Term or at any time the Board of Directors may request,
all Company property (including but not limited to all documents, electronic files/records, keys, records, computer disks, or other
tangible or intangible things that may or may not relate to or otherwise constitute Confidential Information, Work Product, or
trade secrets (as defined by applicable law) that Executive created, used, possessed, or maintained while in the employ of the
Company, from whatever source. This provision does not apply to purely personal documents of Executive, but does apply to business
calendars, Rolodexes, customer lists, contact sheets, computer programs, disks, and their contents, and like information that may
contain some personal matters of Executive.

 

		10.	OWNERSHIP OF INTANGIBLES.

 

All processes, inventions,
patents, copyrights, trademarks, and other intangible rights that may be conceived or developed by Executive, either alone or with
others, during the term of Employee’s employment, whether or not conceived or developed during Employee’s working hours,
and with respect to which the equipment, supplies, facilities, or trade secret information of Employer was used, or that relate
at the time of conception or reduction to practice of the invention to the business of Company or to Company’s actual or
demonstrably anticipated research and development, or that result from any work performed by Executive for Company, shall be the
sole property of Employer. Employee hereby agrees promptly to disclose to the Company any and all inventions, discoveries, improvements,
trade secrets, formulas, techniques, processes, and know-how, whether or not patentable and whether or not reduced to practice,
made or conceived by Executive, either solely or in conjunction with others, during the period of Employee’s employment with
Employer, which related to or result from the actual or demonstrably anticipated business, work, or research in development of
Employer, or which result, to any extent, from use of Employer’s premises or property, or are suggested by any task assigned
to Employee or any work performed by Executive for or on behalf of Employer. Executive acknowledges and agrees that all such inventions
shall be the sole property of Employer, and Executive hereby assigns to Company’s Employee’s entire right and interest
in all the inventions; provided, however, that such assignment does not apply to any invention which qualifies fully under the
provision of section 2870 of the California Labor Code. Executive shall execute all documents, including patent applications and
assignments, required by Company to establish Company’s rights under this Section.

 

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		11.	MISCELLANEOUS.

 

(a)This Agreement
shall be binding upon and inure to the benefit of Executive and his heirs and personal representatives, and the Company and its
successors, assigns and legal representatives. This Agreement and the responsibilities/benefits hereunder are personal to Executive
and are not assignable or transferable by Executive.

 

(b)The Company shall
have the right to offset against amounts due to Executive hereunder, any amounts owed by Executive to Company, including any advances.

 

(c)This Agreement
constitutes the entire agreement between the Company and Executive with respect to the subject matter hereof and supersedes any
and all previous agreements or understandings between Executive and the Company concerning the subject matter hereof. This Agreement
may not be changed or amended without the prior written consent of both of the parties hereto.

 

(d)All notices hereunder
shall be in writing and shall be deemed given on the fifth day after mailing through the United States mail, certified mail, return
receipt requested, postage prepaid, or by overnight delivery to the persons listed below or to such other person(s) and/or addresses
as may be designated from time to time in writing:

 

(e)This Agreement
shall be governed by and construed in accordance with the laws of the State of California.

 

(f)Any waiver by
either party of any breach of any of the terms of this Agreement shall not be considered a waiver of any subsequent breach.

 

(g)In the event that
any provision of this Agreement is held to be unenforceable, then such enforceability shall in no way affect the other terms and
provisions of this Agreement which shall remain in full force and effect.

 

(h)The captions herein
are for the convenience of the parties and are not to be construed as part of the terms of this Agreement.

 

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(i)This Agreement
may be amended, modified or supplemented only by written agreement of the parties hereto, which agreement shall have been duly
authorized and approved by the Board of Directors of the Company.

 

(j)The failure of
the Company at any time or from time to time to require performance of any of Executive's obligations under this Agreement shall
in no manner affect the Company's right to enforce any provision of this Agreement at any subsequent time, and the waiver by the
Company of any right arising out of any breach shall not be construed as a waiver of any right arising out of any subsequent breach.

 

(k)Executive acknowledges
that the consideration furnished by the Company in this Agreement, the sufficiency and adequacy of which is hereby acknowledged,
is in addition to anything of value, if any, to which Executive may already be entitled.

 

(l)
Executive and the Company agree that any and all disputes, claims, or causes of action, arising from or relating to
this Agreement and Executive’s employment with the Company or the termination thereof, including but not limited to claims
based on contract, tort or statutory duty or prohibition, including any prohibition against discrimination or harassment, or claims
for breach of fiduciary duty and misappropriation of trade secrets, shall be resolved, to the fullest extent permitted by law,
by final, binding and confidential arbitration in Los Angeles County, California, conducted by Judicial Arbitration and Mediation
Services, Inc. (“JAMS”), or its successor, under the then applicable rules of JAMS. You acknowledge that by agreeing
to this arbitration procedure, both you and the Company waive the right to resolve any such dispute through a trial by jury or
judge or by administrative proceeding. Pursuant to California Code of Civil Procedure Section 1283.1(b), the parties hereby incorporate
the discovery provisions of California Code of Civil Procedure Section 1283.05. The arbitrator shall issue a written arbitration
decision including the arbitrator’s essential findings and conclusions and a statement of the award. The arbitrator shall
be authorized to award any and all remedies, including but not limited to damages that you or the Company would be entitled to
seek in a court of law. In addition, in the event of any dispute with
respect to the subject matter of this Agreement, the prevailing party shall be entitled to all of its costs and expenses, including
reasonable attorneys' fees and costs, incurred in resolving or settling the dispute. These costs and expenses shall be in addition
to any other damages to which the prevailing party may be entitled. The Company shall pay all JAMS arbitration fees in excess
of the amount of court fees which would have been required if the dispute were decided in a court of law.

 

(m) Executive represents and warrants
that he has read and fully understands the terms and provisions hereof, and has had an opportunity to review this Agreement with
his own legal counsel (not employed by Company), and has executed this Agreement based upon Executive’s own judgment and
advice of independent legal counsel (if sought).

 

 

 

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IN WITNESS WHEREOF,
the parties hereto have signed and sealed this Agreement as of the day and year first above written.

 

 

	 	
        COMPANY:

         

        STRATUS MEDIA GROUP, INC.
	 
	 	 	 	 
	 	By: 	/s/ Jerry Rubinstein	 
	 	 	Jerry Rubinstein,	 
	 	 	CEO	 
	 	 	 	 

 

	 	EXECUTIVE:	 
	 	 	 	 
	 	By: 	/s/ Tim Boris	 
	 	 	Tim Boris	 

 

 

 

 

    	11Exhibit 10.1

 

MINERAL LEASE AGREEMENT

 

THIS MINERAL LEASE
AGREEMENT (hereinafter the “Mineral Lease”) is made and entered into as of this 23rd day of January, 2012, by and between
Can Cal Resources, Ltd., a Nevada corporation, as Lessor (hereinafter referred to as “Can-Cal”
or “Lessor”) and GoodCorp Inc., as Lessee, (hereinafter referred to as “GoodCorp” or “Lessee”).

 

W I T N E S S E T H :

 

WHEREAS,
Can-Cal is the owner of that certain property situated 45 miles east of the city of Barstow, CA, containing 120 acres, more
or less, which property, including all Ore and Minerals (as hereinafter defined) situated therein, thereon and thereunder and all
improvements thereon and appurtenances thereto, is hereinafter referred to as the “Property” and is more fully described
on Exhibit A, attached hereto;

 

WHEREAS, GoodCorp desires
to enter this Mineral Lease Agreement for the Property from Can-Cal, in order to separate
the available Fines, and Can-Cal desires to enter into this Mineral Lease Agreement in order to enable GoodCorp the opportunity
for the separation of the Fines situated thereon the Property, for the mutual benefit of GoodCorp and Can-Cal;

 

NOW,
THEREFORE, in consideration of ten dollars ($10.00) in hand paid to Can-Cal, the receipt
and sufficiency of which are hereby acknowledged, and further in consideration of the covenants hereinafter set forth, Can-Cal
and GoodCorp agree as follows:

 

1. DEMISE.
Lessor does hereby lease and demise the Property to GoodCorp for the Term and upon
the covenants and conditions set forth in this Mineral Lease for the purposes of extracting, separating and removing the
Fines contained within the gravel lying upon such Property and for other purposes set forth
herein.

 

2. DEFINITIONS.
The following words and terms wherever used in this Mineral Lease are defined as follows:

 

“Environmental
Laws” means all federal, state, county, territorial, regional, municipal and local laws, statutes, ordinances, codes,
rules and regulations related to protection of the environment or the handling, use, generation, treatment, storage, transportation
or disposal of Hazardous Materials.

 

“Fines”
means that portion of the Ore that is separated using 40 mesh or greater separating equipment.

 

“Hazardous Materials”
means any hazardous or toxic substance, material or waste that is regulated by any federal, state, county, territorial,
regional, municipal or local governmental authority under any Environmental Law now or hereafter
effective, including, without limitation, any waste, pollutant, hazardous substance, toxic substance, hazardous waste,
special waste, petroleum or petroleum-derived substance or waste, or any constituent of any such substance or waste.

 

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“Minerals”
shall mean all minerals as set forth in Exhibit B that are included in the Fines and
mineral substances of whatsoever nature and character, including any Precious Metals that are
not specifically listed in Exhibit B, now known to exist or which may be subsequently discovered
or subsequently classified as minerals or mineral substances, irrespective of whether at
the time of the execution of this Mineral Lease any said mineral or substance was considered in connection with the Property.

 

“Ore” shall mean the gravel,
rock, sediments, and other materials currently stockpiled on the Property.

 

“Tailings”
shall mean the material and residue of Ore after extracting and separating the Fines.

 

“Term” shall mean the initial
term of this Mineral Lease and any extension and renewal thereof.

 

“Waste
Material” shall mean Fines extracted and separated by GoodCorp which does not have commercial value for its mineral
content.

 

3. 
RIGHTS OF LESSEE. Can-Cal grants unto GoodCorp the following rights and privileges on the Property:

 

(a) The
exclusive right and privilege during the Term of this Mineral Lease to extract and separate Fines which may be found upon
the Property, in such manner as GoodCorp, in its sole discretion, deems advisable; the rights set forth in the preceding sentence
shall be exclusive to GoodCorp for the stated purposes of this lease, but limited by the following proviso clause; provided,
however, that GoodCorp is specifically prohibited from the sale, transfer or removal of any Ore other than Fines from
the Property without expressed agreement by Can-Cal;

 

(b) The
non-exclusive right to use and affect the surface of the Property, as may be necessary or incidental to the exercise of
the rights herein granted;

 

(c) The
exclusive right to stockpile Fines, from the Property, on the Property so long as this Mineral Lease is in effect, provided such
stockpiles are in compliance with all applicable Environmental Laws;

 

(d) The
non-exclusive right to deposit Tailings on the Property following the separation process;

 

(e) The
exclusive right, to construct, assemble, erect, use, maintain, improve, repair, replace,
rebuild, remove and relocate in or upon the Property such machinery, equipment, and such other improvements and services,
including roads, inclines, drifts, entry ways, pipelines, telephone lines, electric transmission lines, railroads, or conveyors,
as may be necessary or incidental to the extraction and separation of Fines and the sale and disposition of Minerals produced
from the Fines. In the event that Can-Cal and GoodCorp mutually agree that access to
a railroad spur should be available, all costs with respect to gaining access to the railroad spur will be shared equally
between Can-Cal and GoodCorp;

 

    	2

    	 

    

  

(f) The
non-exclusive right to use, subject to applicable laws, rules and regulations and in compliance
with all Environmental Laws, any surface or ground water situated within or upon the
Property in connection with GoodCorp's operations hereunder; provided, however, that GoodCorp
shall not take water from Lessor's existing wells, tanks or surface reservoirs without the written consent of Lessor, which
consent shall not be unreasonably withheld;

 

(g) The non-exclusive
right, to be exercised in connection with GoodCorp's operations hereunder, to cut and use timber
situated upon the Property, subject to the provisions of Paragraph 5 below; and

 

(h) all
other rights and privileges which are necessary to GoodCorp in the exercise of any or all of the rights hereinabove set
forth which are not in conflict with Lessor’s rights under this Mineral Lease or with
applicable state, federal or local laws, ordinances and regulations including, without limitation, all Environmental Laws.

 

4. TERM.
The Term of this Mineral Lease shall commence on the date of this Mineral Lease, and
as first set forth above and shall, subject to GoodCorp's right to terminate as set forth in Paragraph 16 below, and to
Lessor's right to terminate as set forth in Paragraph 17 below, continue for an initial period of ten (10) years from said date,
unless extended pursuant to the terms hereof. The Lessee shall have the option to extend the Term of this Mineral Lease for an
additional five (5) year period exercisable at any time no less than three (3) months prior to the expiry
of the initial term, provided that the Lessee and the Lessor shall renegotiate the Production Payments,
which negotiations the Lessee and the Lessor shall enter into and pursue in good faith.

 

5. DAMAGES.
GoodCorp shall pay Lessor reasonable compensation for any damages to fences, existing
structures or other tangible improvements, timber, crops or livestock resulting from
GoodCorp's operations on the Property, but GoodCorp shall not be liable for consequential,
special or incidental damages such as, but not limited to, loss of opportunity or loss
of future profits. The determination of reasonable compensation for damages shall be mutually agreed upon by the parties
hereto; but if the parties are unable to agree, then each shall appoint at its own expense
a qualified appraiser to separately appraise the applicable amount of damages. The average of three (3) independent appraisals
mutually agreed upon by both parties and shall be the basis of compensation.

 

6. PRODUCTION PAYMENT.
In the event that GoodCorp shall extract, separate and remove from the property Fines in accordance
with this Agreement, GoodCorp shall pay to Lessor a production fee (“Production
Payment”), within thirty (30) days of such separation or removal, equal to:

 

(i) Twelve United States dollars (US$12.00)
per ton of Fines removed from the Property for the initial 20,000 tons of Fines removed from the Property;

 

(ii)
Eleven United States dollars and fifty cents (US$11.50) per ton of Fines removed from the Property in excess of 20,000
tons up to and including 40,000 tons of Fines removed from the Property;

 

    	3

    	 

    

  

(iii) Eleven
United States dollars (US$11.00) per ton of Fines removed from the Property in excess of 40,000 tons up to and including
60,000 tons of Fines removed from the Property;

 

(iv) Ten
United States dollars and fifty cents (US$10.50) per ton of Fines removed from the Property
in excess of 60,000 tons up to and including 80,000 tons of Fines removed from the Property;

 

(v) Ten United States dollars
(US$10.00) per ton of Fines removed from the Property in excess of 80,000 tons up to and including
100,000 tons of Fines removed from the Property; and

 

7. TAILINGS
AND WASTE MATERIAL. Lessee agrees that it will stockpile all Waste Material and Tailings
on the Property and agrees that such stockpiles will be made and maintained in compliance with all applicable Environmental
Laws.

 

8. BOOKS
AND RECORDS: INSPECTION

 

(a) GoodCorp
shall keep books and records necessary to document the quantity and quality of all Fines extracted and separated on the
Property and all Minerals produced from the Fines. Each month GoodCorp would provide an elemental analysis of the material produced
provided by an independent laboratory and the results will be forwarded to Can-Cal.

 

(b) Lessee
shall install and maintain a bucket scale or truck scale to weigh all Fines extracted
and separated immediately prior to their removal from the Property. Lessee shall weigh
all Fines extracted on the property by use of a bucket scale or truck scale to determine and record
the net weight of all Fines that have been extracted from the property. Scale tickets or other
automatic means shall be used to record the net weight of all such Fines. For the purpose of
permitting verification by Lessor of any amounts due hereunder, Lessee will keep and preserve supporting documentation
and records which shall disclose in reasonable detail all information required to permit
Lessor to verify the Production Payment calculations under this Lease. Upon reasonable
advance notice to Lessee, Lessor or its agents shall have the right, during Lessee’s regular
business hours, to examine or audit such supporting documentation and records. Lessee shall
retain such supporting documentation and records for a period of one (1) year following the termination or expiration of
this Lease.

 

(c) On or before the
25th day of the month following commencement of operations by the lessee and for
each full month of this Lease, Lessee shall forward to Lessor, at the address herein given or at such other place or places
as Lessor shall from time to time designate in writing, monthly reports indicating thereof
the quantity of Fines extracted and dispatched from the Property during the previous month, as well as a computation of
the Production Payment due thereon, and a check in payment of the total amount due thereon.

 

    	4

    	 

    

  

(d)
In the event that Lessor and GoodCorp cannot agree as to the accuracy of the calculation
of the Production Payment, then either party may refer the matter to arbitration under Paragraph 19 hereof.

 

9. PERFORMANCE OBLIGATIONS

 

(a) Operations and
Reclamation. GoodCorp shall conduct its operations (including all reclamation work) on the Property in a careful and workmanlike
manner and in compliance with all applicable laws, ordinances and regulations of all governmental
authorities having jurisdiction over the Property or GoodCorp's operations including,
without limitation all Environmental Laws.

 

(b) Notice
of Discovery. GoodCorp shall notify in writing Can-Cal in the event that GoodCorp discovers Precious Metals, as set forth
in Exhibit C, on the Property.

 

(c) Pledge
Not to Compete. GoodCorp and Cal-Cal shall not, and each shall cause its affiliates
and associates to not, conduct its business in a manner which is in competition with the other parties business.

 

10. TAXES AND UTILITIES.

 

(a) Lessee
shall pay prior to delinquency all personal property taxes applicable to Lessee’s
personal property, fixtures, furnishing and equipment located on the Property, as well as
all production or severance taxes computed or based upon removal by Lessee of Materials from the Property. If Lessee shall in good
faith desire to contest the validity or amount of any tax, assessment, levy, or other
governmental charge herein agreed to be paid by Lessee, Lessee shall be permitted to do so, and to defer payment of such
tax or charge, until final determination of the contest. If the outcome of such contest is
unfavorable to Lessee, Lessee shall immediately pay all taxes, charges, interest and penalties determined to be due.

 

(b) Lessee agrees
to pay all expenses for heat, electricity, lighting, telephone, waste management fees and charges for water assessed against the
Leased Premises after Lessee takes physical possession of the Leased Premises, arising from Lessee’s activities thereon,
at such time as said charges become due. After the Lessee takes physical possession of the
Leased Premises and is in the production phase, the Lessor agrees that it will not
allow any third party to occupy the Property/Leased Premises without the prior written approval of the Lessee.

 

11. PERMITS.

 

(a)
Lessee shall use its good faith efforts to cause all permits associated with its operations
on the Property to be issued in the names of Lessee and Lessor provided, however, that
the parties agree and acknowledge that such permits are only applicable for activities associated with the extraction, separation
and removal of Fines. Lessee shall pay for any fees or costs associated with obtaining and maintaining such permits.

 

(b) In the event that
Lessee's permits are terminated or not renewed as a result of Lessor's actions, Lessee may, in its sole discretion, either (i)
terminate this Lease with no further obligations hereunder; or (ii) suspend the term of this
Lease until Lessee reinstates such permits, up to a maximum period of two (2) years. During such suspension period, Lessee
shall have no obligation to make any Production Payments. In the event Lessee's permits are
not reinstated prior to the expiration of such two (2) year period, or in the event Lessee notifies Lessor that it has abandoned
its efforts to reinstate such permits, this Lease shall terminate, and Lessee shall have no
further obligations hereunder. In the event that Lessee reinstates such permits within such two (2) year period, the applicable
term of this Lease shall be extended for the period of suspension.

 

    	5

    	 

    

 

 

12. LESSOR’S RESERVED
RIGHTS

 

(a) The
rights of Lessee granted hereby shall be subject to Lessor's reserved concurrent right
to use the Property for the purpose of exploration, development and mining of Minerals other
than from Fines and the use of any surface or underground water or water rights occurring on
or appurtenant to the Property; so long as Lessor's use does not interfere with the rights granted
Lessee herein. Lessee shall be entitled to compensation for any damages caused to Lessee by Lessor's use of the Property.

 

(b) Lessor
shall not conduct its operations in any way which would adversely affect Lessee's use of the Property in accordance with
this Agreement.

 

(c)
Lessor agrees that for so long as this Lease is in effect, it will not use (and subject to section
22, will cause any subsequent lessee or sub-lessee to not use) any Minerals from the Property
in any manner which is in competition with Lessee's operations in accordance with this Agreement.

 

13.
INSURANCE. Each party shall, at its sole cost and expense, commencing no later than the date upon which the Lessee commences
operations on the Property, and continuing throughout the duration of this Lease, obtain, keep, and maintain in full force and
effect comprehensive general public liability insurance against claims for personal injury,
bodily injury, death, or property damage occurring in, upon, or about the Property in
an amount of not less than Five Million United States Dollars (US$5,000,000.00) in respect to injury or death of one person
and to the limit of not less than Five Million United States Dollars (US$5,000,000.00) in respect
to any one accident, and to the limit of not less than Five Million United States Dollars (US$5,000,000.00)
in respect to property damage with respect to the use of the Property. Each party shall
deliver to the other party certificates of insurance, which shall declare that the respective
insurer may not cancel the same, in whole or in part, without giving each party written notice of its intention to do so
at least thirty (30) days' prior written notice.

 

14. INDEMNIFICATION.

 

(a) Lessee shall pay, defend and indemnify
and hold Lessor and its officers, directors, shareholders, agents and employees (“Lessor Indemnified Parties,” individually
a “Lessor Indemnified Party”) harmless from and against any and all claims of
liability for injury or damage to any person or property arising from the use of the
Property by Lessee, or from the conduct of Lessee's business, or from any activity,
work or thing done, permitted or suffered by Lessee or Lessee's invitees, licensees,
agents, contractors or employees in or about the Property or elsewhere. Lessee shall further pay, defend, indemnify and
hold the Lessor Indemnified Parties harmless from and against any and all claims arising from
any breach of any representation, warranty or covenant hereunder, or default in the performance of any obligation on Lessee's
part to be performed under this Lease, or arising from any negligence of Lessee or Lessee's invitees, licensees, agents, contractors
or employees, and from and against all costs, attorneys' fees, expenses and liabilities incurred
in the defense of any such claim or action or proceeding brought thereon. In the event
any action or proceeding is brought against any Lessor Indemnified Party by reason of any such claim, Lessee, upon notice from
such Lessor Indemnified Party, shall defend the same at Lessee's expense by counsel
reasonably satisfactory to such Lessor Indemnified Party.

 

    	6

    	 

    

  

(b) Lessor shall pay,
defend and indemnify and hold Lessee and its officers, directors, shareholders, agents and employees (“Lessee Indemnified
Parties,” individually a “Lessee Indemnified Party”) harmless from and against
any and all claims of liability for injury or damage to any person or property arising from the use of the Property by Lessor,
or from the conduct of Lessor's business, or from any activity, work or thing done, permitted or suffered by Lessor or Lessor's
invitees, licensees, agents, contractors or employees in or about the Property or elsewhere. Lessor shall further pay, defend,
indemnify and hold the Lessee Indemnified Parties harmless from and against any and all claims
arising from any breach of any representation, warranty or covenant hereunder or default
in the performance of any obligation on Lessor's part to be performed under this Lease, or arising from any negligence of
Lessor or Lessor's invitees, licensees, agents, contractors or employees, and from and against all costs, attorneys' fees, expenses
and liabilities incurred in the defense of any such claim or action or proceeding brought thereon.
In the event any action or proceeding is brought against any Lessee Indemnified Party by
reason of any such claim, Lessor, upon notice from such Lessee Indemnified Party, shall defend
the same at Lessor's expense by counsel reasonably satisfactory to such Lessee indemnified Party.

 

15.
LIENS. If any liens or claims of mechanics, laborers, or material men shall be filed against the
Property or any part or parts thereof, for any work, labor, or materials furnished or claimed to be furnished to Lessee,
or on behalf of Lessee, then Lessee shall cause such lien to be discharged within thirty (30) days after the date such lien is
filed; or if such lien is disputed by Lessee and Lessee contests the same in good faith,
Lessee shall cause such lien to be discharged within thirty (30) days after the date
of any judgment by any court of competent jurisdiction shall become final.

 

16. LESSEE’S RIGHT TO TERMINATE. GoodCorp
may terminate this Mineral Lease:

 

(i) With
the prior written consent of Can-Cal;

 

(ii) If
any court of competent jurisdiction or any governmental, administrative or regulatory authority, agency or body shall have issued
an order, decree or ruling or taken any other action permanently enjoining, restraining
or otherwise prohibiting the transactions contemplated by this Agreement;

 

    	7

    	 

    

  

(iii) In
the event that Can-Cal files a petition in bankruptcy or be adjudicated a bankrupt
or insolvent, or make an assignment for the benefit of creditors or an arrangement pursuant
to any bankruptcy law, or discontinue or dissolve its business, or if a receiver is appointed for Can-Cal’s business
and such receiver is not discharged within thirty (30) days; or

 

(iv) If
Can-Cal breaches any of its representations or warranties hereof or fails to perform
in any material respect any of its covenants, agreements or obligations under this Mineral Lease, without curing such failure with
ten (10) days written notice thereof (or moving to cure such failure is the event of such failure cannot be feasibly cured
within such period);

 

(v) If
there is a change of control of Can-Cal, including a change in the majority of the board of directors of Can-Cal;

 

17. LESSOR’S RIGHT TO TERMINATE.
Can-Cal may terminate this Mineral Lease:

 

(i) With the written consent of GoodCorp;

 

(ii) If
any court of competent jurisdiction or any governmental, administrative or regulatory
authority, agency or body shall have issued an order, decree or ruling or taken any other
action permanently enjoining, restraining or otherwise prohibiting the transactions contemplated by this Agreement;

 

(iii) If
GoodCorp breaches any of its representations or warranties hereof or fails to perform
in any material respect any of its covenants, agreements or obligations under this Mineral
Lease, without curing such failure within thirty (30) or longer if necessary given the situation)
days written notice thereof (or moving to cure such failure is the event of such failure cannot be feasibly cured within
such period

 

(iv) In
the event that GoodCorp fails to obtain or maintain sufficient property liability insurance, which policies shall be made available
to Can-Cal upon GoodCorp’s commencement of mining, excavation or construction, of any kind whatsoever, on the Property, without
curing such failure with thirty (30) days written notice thereof; provided, however, that during such notice period
GoodCorp shall cease any and all activity on the Property until such cure (or termination);

 

(v)
In the event that GoodCorp files a petition in bankruptcy or be adjudicated a bankrupt or insolvent, or make an assignment
for the benefit of creditors or an arrangement pursuant to any bankruptcy law, or discontinue
or dissolve its business, or if a receiver is appointed for GoodCorp’s business
and such receiver is not discharged within thirty (30) days;

 

    	8

    	 

    

 

 

(vi)
In the event that GoodCorp (i) fails to notify Can-Cal of its discovery of any Precious
Metals, as set forth in Exhibit C, on the Property or (ii) sells, transfers or removes Precious
Metals, as set forth in Exhibit C, from the Property without the prior written consent of Can-Cal, this Mineral Lease
shall at Can-Cal’s option terminate upon written notice by Can-Cal to GoodGorp.

 

18. EXPROPRIATION.

 

(a)
In the event a part of the Property shall be taken, by eminent domain for any public or quasi-public
purpose, or transferred by agreement in connection with such public or quasi-public use, with or without any expropriation
or condemnation proceeding being instituted, and such taking does not materially affect Lessee's operations, only the Lease on
the portion taken shall then expire, on the date when title to such portion of the Property
vests in the appropriate authority or on the date possession is required to be surrendered, whichever is earlier. The compensation
or damages for this taking shall be apportioned by and between the Lessor and Lessee taking
into consideration the residual value of the land and surface rights to Lessor, the value
of this Lease and the unseparated Fines at the time of taking to the Lessee, and the future anticipated royalties to the
Lessor.

 

(b) In the event
that all or substantially all of the Property shall be taken by eminent domain for any public or quasi-public purpose such that
Lessee's operations are no longer economically feasible, then this Lease shall expire on the
date when title to the Property vests in the appropriate authority or on the date possession
is required to be surrendered, whichever is earlier. The compensation or damages for this taking shall be apportioned by
and between the Lessor and Lessee taking into consideration the residual value of the land and surface rights to Lessor,
the value of this Lease and the unseparated Fines at the time of taking to the Lessee, and the future anticipated royalties
to the Lessor.

 

(c) A
voluntary sale or conveyance under threat of expropriation or condemnation but in lieu thereof, shall be deemed an appropriation
or taking under the power of eminent domain.

 

19. ARBITRATION.
Any disagreement between the Lessor and the Lessee shall be referred to arbitration before a single arbitrator pursuant to the
rules and regulations of the American Arbitration Association. The decision of any such arbitrator shall be final and binding on
the parties and the costs and fees relating thereto shall be borne and paid in the manner
the arbitrator determines to be fair and equitable.

 

20. SUBORDINATION.
This Lease at Lessor's option shall be subject and subordinate to the lien of any
mortgages or deeds of trust in any amount whatsoever now or in the future placed on or against the Property; provided, however,
that as long as Lessee is not in default hereunder, any lien or encumbrance shall provide that the holder thereof will recognize
Lessee's rights under this Lease notwithstanding foreclosure of such lien or encumbrance.

 

21. NOTICES. Any notice or other communication which may be permitted or required under this Lease shall be in writing and shall
be delivered personally or sent by United States registered or certified mail, postage prepaid,
addressed as follows, or to any other address as either party may designate by notice
to the other party:

 

    	9

    	 

    

 

 

 

 

	If to Lessor	
        Can-Cal Resources Ltd.

        

        8205 Aqua Spray Avenue, Las
        Vegas, NV 89128

         

        Las Vegas, Nevada 89128 USA

         

	With a copy to:	
        Davis LLP

        1000, 250 2nd Street S.W. Calgary,
        Alberta T2P 0C1

        Attention: Roy H. Hudson

         

	If to Lessee:	
        GoodCorp Inc.

        715 Sunset Blvd, Suite 100

        Los Angeles CA
90046

        Attention Mr. Chandler Warren

         

 

 

22. ASSIGNMENT. Lessee shall not assign or transfer this Lease, or sublet the Property or
any part thereof, without Lessor's prior written consent, which consent will not be unreasonably
withheld or delayed; except that such consent shall not be required if such sublease, assignment, or transfer by Lessee
is to an affiliate of Lessee.

 

23. BINDING ON SUCCESSORS AND ASSIGNS. All covenants, agreements, provisions, and conditions
of this Lease shall be binding upon and inure to the benefit of the parties hereto, their respective heirs, personal representatives,
successors, and assigns.

 

24. PARTIAL
INVALIDITY. If any term or provision of this Lease shall to any extent be held invalid or unenforceable, then the remaining terms
and provisions of this Lease shall not be affected thereby, but each term and provision
of this Lease shall be valid and be enforced to the fullest extent permitted by law. In the event that any provision of
Agreement relating to the time periods and/or geographic areas of any restriction shall be
declared by a court of competent jurisdiction to exceed the maximum time period or areas that such court deems reasonable
and enforceable, the time period and/or geographic areas of restriction deemed reasonable and enforceable by the court shall become
and thereafter be the maximum time period and/or geographic areas.

 

25. GOVERNING
LAW. This Lease shall be governed by the laws of the State of California.

 

    	10

    	 

    

 

 

 

 

26. CAPTIONS.
The captions of this Lease are for convenience only and are not to be construed as
part of this Lease and shall not be construed as defining or limiting in any way the scope or intent of the provisions of
this Lease.

 

27. NO
WAIVER. No waiver of any covenant or condition contained in this Lease or of any breach of any such covenant or condition shall
constitute a waiver of any subsequent breach of such covenant or condition by either party
or justify or authorize the non-observance on any other occasion of the same or any other covenant or condition.

 

28. ENTIRE AGREEMENT;
MODIFICATION. This Lease represents the entire understanding and agreement between the parties
and supersedes all prior written instruments or memoranda with respect thereto. No modification of this Lease shall be binding
unless it is in writing and executed by an authorized representative of Lessor and Lessee.

 

29. COUNTERPARTS.
This Lease may be executed in one or more counterparts which, together, shall constitute an original and binding agreement on
the parties hereto.

 

30. RELATIONSHIP
OF THE PARTIES. Nothing contained in this Lease shall be deemed or construed by the parties hereto, nor by any third party,
as creating the relationship of principal and agent, partnership, or joint venture between
the parties hereto, it being understood and agreed that no provision contained in this Lease nor any acts of the parties
hereto shall be deemed to create any relationship other than the relationship of landlord and tenant.

 

31. INCORPORATION
OF EXHIBITS. This Lease shall be deemed to have incorporated by reference all of the Exhibits referred to herein to the
same extent as if such Exhibits were fully set forth herein.

 

32.
ATTORNEYS’ FEES. If either party takes any steps or brings any action to compel performance of or to recover for breach
of any term of this Lease, the losing party shall pay reasonable attorneys' fees of the prevailing
party, in addition to the amount of any judgment and costs.

 

IN WITNESS WHEREOF, the
parties have hereunto set their hands and seals as of the day and year first above written.

 

    	11

    	 

    

 

 

 

 

Executed
on January 23, 2012 LESSEE:

 

GOODCORP INC.

 

 

 

_________________________________ 

By: A. Chandler Warren, Executive Vice President

 

 

LESSOR:

 

CAN-CAL RESOURCES, LTD.

 

By: G. Michael Hogan,
President & CEO

 

    	12

    	 

    

 

 

Exhibit A

 

The
Pisgah Mine Project is located in San Bernardino County, 72 kilometers (45 miles) east of the city of Barstow, California,
and 307 kilometers (192 miles) south-southeast of Las Vegas, Nevada, United States. Barstow lies near the southwest border of California,
east of the junction of Interstate 15, Interstate 40 and U.S. Route 66. The Project is centered at Latitude 34o 44'
47” North, Longitude 116o 22' 29” West, or UTM (metric) co-ordinates
55700 E/384500 N in Zone 11, datum point NAD 27. It lies within Section 32, Township 8 North, Range 6 East from San Bernardino
Meridian. It has an area of 48.4 hectares (120.2 acres). In 1997 Can-Cal Resources Ltd., a Las Vegas, NV based exploration company,
gained 100% ownership of the claim which covers the Pisgah property.

 

Access
to the Pisgah Project is by the paved 2-lane paved road from the junction of Interstate 15 and
Interstate 40 just east of Barstow, California travel east along Interstate 40 for 52 kilometers (32.5 miles). Take the
Hector Rd. Exit and turn right onto Hector Rd. From here turn left onto Historic Route 66 for
7.4 kilometers (4.6 miles), and then turn right (south) onto the Pisgah Crater road. Follow this road for 3.2 kilometers
(2.0 miles) to the Pisgah Crater workings.

 

The Pisgah Mining Property lies near the south end
of the Mojave Desert. The region forms the southwestern extent of Precambrian continental
North America and rests at the present plate edge formed by the San Andreas transform fault. An oceanic plate has bordered
the region since late Precambrian time. Starting in late Miocene time the Mojave Desert area
was dissected by NW-trending right-lateral strike-slip faults with local areas of
E-trending left-lateral strike-slip faults.

 

 

 

    	13

    	 

    

 

 

Exhibit B - Minerals 

1.Lithium

2.Boron

3.Sodium

4.Magnesium

5.Aluminium

6.Potassium

7.Calcium

8.Scandium

9.Chromium

10.Vanadium

11.Manganese

12.Cobalt

13.Nickel

14.Zinc

15.Copper

16.Arsenic

17.Selenium

18.Strontium

19.Rubidium

20.Yttrium

21.Zirconium

22.Niobium

23.Molybdenum

24.Cadmium

25.Tin

26.Antimony

27.Barium

28.Caesium

29.Lanthanum

30.Cerium

31.Praseodymium

32.Neodymium

33.Samarium

34.Europium

35.Gadolinium

36.Terbium

37.Dysprosium

38.Holmium

    	14

    	 

    

 

 

39.Erbium

40.Thulium

41.Ytterbium

42.Lutetium

43.Hafnium

44.Tantalum

45.Tungsten

46.Thallium

47.Lead

48.Thorium
49. Uranium

    	15

    	 

    

 

 

Exhibit C—Precious Metals

1.Platinum

2.Rhodium

3.Gold

4.Iridium

5.Osmium

6.Palladium

7.Rhenium

8.Ruthenium

9.Silver

 

 

    	16

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