Document:

Unassociated Document

EXHIBIT 10.38

NOTE PURCHASE & SALE AGREEMENT

THIS PURCHASE AND SALE AGREEMENT ("Agreement") is made as of the 4th day of May, 2011 by and between NATHAN’S FAMOUS, INC., a Delaware corporation (the "Seller") and Y & Y CAPITAL CO, LLC, a Florida limited liability company (the "Buyer").

RECITALS:

WHEREAS, Seller is the owner of a certain amended and restated promissory note (the “Note”) of Miami Subs Capital Partners I, Inc., a Florida corporation (“Borrower”), dated April 1, 2010, payable to the order of Seller in the principal amount of $1,540,300.04 which Note is secured by a security agreement dated as of June 7, 2007 (the “Security Agreement”), as reaffirmed by a Reaffirmation of Security Agreement dated as of April 1, 2010. Pursuant to the terms of the Security Agreement, Borrower has granted to Seller a security interest in all of the Borrower’s Inventory, Investment Property, Chattel Papers, Accounts, Equipment, Instruments, General Intangibles, Letter of Credit Rights and Fixtures (as such terms are defined in the Uniform Commercial Code in the State of New York).

WHEREAS, Buyer desires to purchase from Seller the Note, and Seller desires to sell to Buyer the Note, all upon the terms, provisions, and conditions set forth in this Agreement.

WHEREAS, The Security Agreement provides that in the event that Seller, as secured party, shall assign, endorse, sell, transfer, or hypothecate the Note, it shall automatically constitute an assignment and transfer of the interests of the Seller under the Security Agreement.

WHEREAS, Seller is willing to sell the Note on an "as is" and "where is" basis with no representations or warranties of any kind other than those set forth in Paragraph 6(a) of this Agreement.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

	
  

	
1.

	
Sale and Assignment.  Seller agrees to sell, assign and convey unto Buyer, at the Closing (as defined below), all of Seller's right, title and interest in and to the Note and related documents, including the rights of Seller in, to and under the Security Agreement, the Guaranty of Laurence Austin dated June 7, 2007, the Guaranty of Bruce Galloway dated June 7, 2007, each as reaffirmed by a Reaffirmation of Guaranty dated as of April 1, 2010, the Irrevocable Direction of Laurence Austin dated April 1, 2010 (the “2010 Direction” and, together with the Note and the other related documents, the “Loan Documents”), subject to the terms and conditions of this Agreement and to the following limitations:

(A)  THE SALE AND ASSIGNMENT OF THE NOTE AND LOAN DOCUMENTS IS AND WILL BE ON AN "AS IS", "WHERE IS" BASIS WITHOUT ANY REPRESENTATIONS, WARRANTIES, OR RECOURSE, EXPRESS OR IMPLIED, OF ANY TYPE, KIND, CHARACTER OR NATURE SAVE AND EXCEPT THE EXPRESS REPRESENTATIONS OR WARRANTIES SET FORTH IN PARAGRAPH 6(a) HEREOF.

  

1

  

(B)  WITHOUT IN ANY WAY LIMITING THE GENERALITY OF THE FOREGOING, AND EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, NO REPRESENTATIONS OR WARRANTIES ARE, HAVE BEEN OR WILL BE MADE BY SELLER OR ANY REPRESENTATIVE, AGENT, OFFICER OR EMPLOYEE OF SELLER REGARDING (i) THE COLLECTABILITY OR VALUE OF THE NOTE OR THE LOAN EVIDENCED THEREBY, (ii) THE CREDIT WORTHINESS OF THE BORROWER, (iii) THE VALUE OF ANY COLLATERAL DESCRIBED IN THE NOTE OR LOAN DOCUMENTS, OR (iv) THE EXTENT, VALIDITY, PRIORITY OR PERFECTION OF ANY SECURITY INTEREST OR LIEN WHICH MAY RELATE TO THE NOTE OR THE LOAN EVIDENCED THEREBY.

	
  

	
2.

	
Purchase Price, Deposit, Payment Terms and Closing Deliverables.

	
  

	
a.

	
Purchase Price.  The purchase price (the “Purchase Price”) for the Note and Loan Documents shall be $900,000.

	
  

	
b.

	
Deposit.  The Buyer will pay to Seller, on the date hereof, the sum of Four Hundred Fifty Thousand Dollars ($450,000.00) as a deposit (the “Deposit”) to be applied by Seller in accordance with the provisions of this Agreement.

	
  

	
c.

	
Payment Terms.  The Purchase Price shall be paid by Buyer to Seller by (i) Seller receiving the Deposit toward the Purchase Price, and (ii) the Seller receiving from Buyer by federal wire transfer no later than 1:00 p.m. Eastern Standard Time on the date on which the Closing occurs, in good funds, the $450,000 balance owed on the Purchase Price, which amount shall be wire transferred as follows:

for the benefit of:   Nathan’s Famous Inc.

Funds should be wired to:

Citibank

Robbins Lane & Jericho Turnpike.

Jericho, NY 11753

ABA #021000089

To the account of:

Nathan’s Famous Operating Corp., Depository Account

Account ___________________

   

	
  

	
d.

	
At the Closing, Seller shall receive an Irrevocable Direction of Laurence Austin of even date (the “2011 Direction”) which shall be executed by each of Laurence Austin and Davis LLP and shall provide for the payment to NFI of an aggregate $257,810.22, which payment shall rank in the same order of priority as the amounts previously payable to NFI under the 2010 Direction.

	
  

	
3.

	
Closing Date.  This transaction shall close (the "Closing") on or before June 30, 2011 (the “End Date”).

  

2

  

	
  

	
4.

	
Closing.  The consummation of the transaction contemplated by this Agreement shall occur on or before the End Date at offices of Seller's attorneys: Farrell Fritz, P.C., RXR  Plaza, Uniondale, New York  11556 (516) 227-0700 or at such other location as may be mutually agreed to by Buyer and Seller.  The date on which the Closing occurs shall be referred to as the “Closing Date.”

	
  

	
5.

	
Costs.  Each party shall bear all of the fees and expenses incurred by it in connection with the negotiation and performance of this Agreement, and no party may recover any such fees and expenses from the other parties upon any termination of this Agreement.  In addition, Buyer shall pay any fees necessary to record the assignment of any documents and any other expenses of Buyer necessary to complete this transaction. After the Closing Date, Seller shall take all steps which Buyer may reasonably request to cooperate with Buyer so that Buyer may enforce its rights under the Note, all of which shall be at Buyer's sole cost and expense.

	
  

	
6.

	
Representations and Warranties.

Each of Seller and Buyer hereby makes the following representations and warranties as of the date of this Agreement and, unless a date is specified in such representation and warranty, shall be true, complete and correct at the Closing as though made on the date of such Closing.

	
  

	
a.

	
Seller makes no warranties or representations of any kind or nature with respect to the Note or any of the Loan Documents, except as set forth in this paragraph.  Seller hereby represents and warrants (i) Seller is a corporation duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation, has all requisite corporate power and authority to own, lease and operate its properties and assets and to carry on its business as now being conducted, (ii) Seller is the legal and beneficial owner of the Note, (iii) the Note is free of liens or security interests granted by Seller, (iv) the balance due on the Note as of May 4, 2011 is $1,407,810.22, including the “balloon” as defined in the Note, reflecting payments due under the Note through April 30, 2011 (it being understood that the $34,000 in payments tendered for March and April 2011 have not yet cleared), (v) Seller has the power to execute, deliver and perform this Agreement and to carry out the transactions contemplated hereby;  and (vi) Seller has the right, power and authority to assign and transfer the Note to Buyer as provided by this Agreement.

	
  

	
b.

	
Buyer hereby represents and warrants that (i) Buyer is a limited liability company duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, has all requisite power and authority to own, lease and operate its properties and assets and to carry on its business as now being conducted and as proposed to be conducted, (ii) Buyer was formed solely for the purpose of engaging in the transactions contemplated by this Agreement, has not engaged in any other business activities and has conducted its operations only as contemplated hereby, (iii) Buyer has sufficient funds to make the Deposit and will have prior to the Closing Date sufficient funds from cash on hand and available to it under existing commercial financing arrangements and lines of credit to pay balance of the Purchase Price contemplated by this Agreement and to perform the other obligations of Buyer contemplated by this Agreement, (iv) Buyer is a sophisticated investor and has made an independent analysis of the advisability of acquiring the Note and Loan and has relied on its own judgment in assessing its willingness to proceed to consummate the transactions contemplated by this Agreement, (v) Buyer is duly authorized to execute and deliver this Agreement and to carry out its obligations hereunder and (vi) Buyer has not relied on any representations or warranties of the Seller other than those contained herein.

  

3

  

	
  

	
c.

	
On the Closing Date, Seller will endorse the original Note, and Buyer will accept the same, with the following endorsement:

PAY TO THE ORDER OF Y & Y CAPITAL CO, LLC, “AS IS”, “WHERE IS”, WITH ALL FAULTS AND WITHOUT REPRESENTATIONS, EXPRESS OR IMPLIED, OF ANY TYPE, KIND, CHARACTER OR NATURE SAVE AND EXCEPT FOR THE EXPRESS REPRESENTATION SET FORTH IN THE NOTE PURCHASE AND SALE AGREEMENT DATED MAY 4, 2011 BY AND BETWEEN NATHAN’S FAMOUS, INC.  AND Y & Y CAPITAL CO, LLC

	
  

	
d.

	
The assignment of the Note and any other Loan Documents from Seller to Buyer shall be made without recourse and without any representation or warranty of any kind or nature, except for those representations and warranties expressly provided in this Agreement.

	
  

	
7.

	
Closing.  At the Closing

	
  

	
a.

	
Seller shall deliver to Buyer (i) the original Note, (ii) any originals (or copies to the extent Seller possesses no originals) of the other Loan Documents and (iii) a certificate to the effect that the representations and warranties of Seller contained in Section 6(a) are true, complete and correct as of the Closing, except those representations and warranties that address matters only as of a particular date, which are true and correct in all respects as of that date.  In addition, at Buyer's option, which shall be exercised by delivery of written notice to Seller no less than five (5) days prior to the Closing, Seller shall deliver assignments of the Security Agreement and any other Loan Documents to Buyer; provided the assignments do not impose liability upon Seller in excess of the express warranties herein described in paragraph 6.

	
  

	
b.

	
Buyer shall deliver to Seller (i) the $450,000 balance of the Purchase Price, (ii) the 2011 Direction and (iii) a certificate to the effect that the representations and warranties of Buyer contained in Section 6(b) are true, complete and correct as of the Closing, except those representations and warranties that address matters only as of a particular date, which are true and correct in all respects as of that date.

	
  

	
8.

	
Default.

	
  

	
(a)

	
Buyer.  In the event that the transaction contemplated by this Agreement shall fail to close on or before the End Date for any reason whatsoever, other than the wrongful refusal of Seller to deliver the Note endorsed as herein described and to deliver the other documents that Seller is required to deliver as contemplated by this Agreement, Seller shall be entitled to retain the Deposit plus interest accrued thereon as liquidated damages, and the parties hereby agree that actual damages for any such default are not reasonably ascertainable. This shall be Seller's sole remedy at law or in equity, except in connection with Paragraph 9(e) of this Agreement.

  

4

  

	
  

	
(b)

	
Seller.  In the event that, following the complete performance by Buyer of all of its duties, agreements, and covenants set forth in this Agreement, Seller shall wrongfully refuse to endorse the Note as required herein and deliver the same to Buyer, or Seller shall fail to deliver to Buyer the Loan Documents that Seller is obligated to deliver as described in this Agreement, Seller shall be required to return the Deposit plus interest accrued thereon to the Buyer.  Buyer shall not be entitled to any damages or any compensation of any kind or nature, except as set forth in the immediately preceding sentence; provided, however, Buyer shall have the right to enforce this Agreement against Seller by specific performance.  The remedies described in the first and second sentences of this Paragraph 8(b) shall be Buyer's sole remedies at law or in equity, except in connection with Paragraph 9(e) of this Agreement.

	
  

	
9.

	
Miscellaneous.

	
  

	
a.

	
Notices.  All notices required or permitted to be given hereunder shall be in writing and may be delivered by hand, by United States mail, by nationally recognized overnight private courier (for overnight delivery), or by facsimile. Except as provided otherwise herein, notices delivered by hand shall be deemed given upon receipt; notices delivered by United States mail shall be deemed given five (5) Business Days after being deposited in the United States mail, postage prepaid, registered or certified mail, return receipt requested; notices delivered by nationally recognized overnight private courier shall be deemed given on the first (1st) Business Day following deposit with the private courier for overnight delivery; and notices delivered by facsimile shall be deemed given upon the sender’s receipt of confirmation of successful transmission.

	
As to Seller:

	
Nathan’s Famous, Inc.

	  	
One Jericho Plaza

	  	
Jericho, NY 11753

	  	
Attention: Eric Gatoff

	  	
Facsimile: 516-338-7220

	  	  
	
Copy to:

	
Farrell Fritz, P.C.

	  	
RXR Plaza

	  	
Uniondale, New York  11556

	  	
Attention:  Nancy D. Lieberman, Esq.

	  	
Facsimile: 516-336-2778

	  	  
	
As to Buyer:

	
Y&Y Capital Co LLC.

	  	
6300 NW 31st Avenue

	  	
Fort Lauderdale, FL 33309

	  	
Attention:

	  	
Facsimile:

	  	  
	
Copy to:

	
Vogel & Associates, P.C.,

	  	
500 North Broadway, Suite 128

	  	
Jericho, NY 11753

	  	
Attention: Bob Vogel

	  	
Facsimile:

  

5

  

 

	
  

	
b.

	
Entire Agreement.  This Agreement contains the entire agreement between the parties and may not be changed except by a subsequent written instrument signed by the party against whom the enforcement of such change is sought.

	
  

	
c.

	
Time.  Time shall be of the essence of this Agreement.

	
  

	
d.

	
Assignment.  Neither this Agreement nor any of the rights, interests or obligations under this Agreement may be assigned or delegated, in whole or in part, by operation of law or otherwise by any of the parties hereto without the prior written consent of the other parties, and any such assignment without such prior written consent shall be null and void.

	
  

	
e.

	
Brokers.   Each party represents to the other party that no broker or finder was involved in the transaction contemplated by this Agreement.  If a claim for brokerage fees or other compensation in connection with this transaction is made by any broker or finder claiming to have dealt through or on behalf of one of the parties hereto, such party will indemnify and hold the other party harmless from any liabilities, costs, fees, and expenses in respect to such claim for fees.  The provisions of this Paragraph 9(e) shall survive the Closing.

	
  

	
f.

	
Ambiguities.  This Agreement has been negotiated at arms' length by Seller and Buyer, and the parties mutually agree that, for the purpose of construing the terms of this Agreement, neither party shall be deemed responsible for the authorship thereof.

	
  

	
g.

	
Severability.  If any provision of this Agreement (the deletion of which does not adversely affect the receipt of any material benefit by or in favor of any party hereunder or substantially increase the burden on any party hereto) shall be held invalid or unenforceable to any extent, the same shall not affect in any respect whatsoever the validity or enforceability of the remainder of this Agreement.

	
  

	
h.

	
Headings; Construction.  Descriptive headings are for convenience only and shall not control or affect the meaning or construction of any provision of this Agreement.

	
  

	
i.

	
Counterparts.  This Agreement may be executed in any number of counterparts.  Each such counterpart shall be deemed to be an original instrument, but all such counterparts together shall constitute but one agreement.

	
  

	
j.

	
Attorneys' Fees.  If either party retains the services of an attorney to enforce its rights under this Agreement through litigation, the party prevailing in any such litigation shall be entitled to recover reasonable attorneys' fees from the other party.

	
  

	
k.

	
Further Assurances.  After the Closing, at the request of Buyer, Seller shall execute and deliver such additional instruments and documents and take such further action as may be reasonably requested by Buyer in order to confirm and assure the rights and obligations under this Agreement and to render effective the transactions as contemplated hereby.  Buyer shall promptly pay Seller for Seller's out-of-pocket costs and expenses relating to compliance with any such request of Buyer.

  

6

  

	
  

	
l.

	
Governing Law. This Agreement shall be construed in accordance with and governed by the local laws (excluding the conflict of laws rules) of the State of New York.  The parties hereto consent to the jurisdiction of the state courts of and federal courts located in Nassau or New York County in the State of New York for the enforcement of the obligations evidenced by this Agreement and expressly waive any defense based upon venue or forum non conveniens.

	
  

	
10.

	
Waiver of Jury Trial.  SELLER AND BUYER HEREBY KNOWINGLY, VOLUNTARILY, INTENTIONALLY, AND UNCONDITIONALLY WAIVE THEIR RIGHTS TO A JURY TRIAL WITH RESPECT TO ANY ACTION, PROCEEDING, CLAIM, OR COUNTERCLAIM ARISING OUT OF ANY DISPUTE IN CONNECTION WITH THIS AGREEMENT, THE TRANSACTION CONTEMPLATED BY THIS AGREEMENT, OR ANY OF THE RIGHTS AND OBLIGATIONS UNDER THIS AGREEMENT OR ANY OTHER AGREEMENT DELIVERED OR WHICH IN THE FUTURE MAY BE DELIVERED IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTION CONTEMPLATED BY THIS AGREEMENT. SELLER AND BUYER HEREBY FURTHER AGREE THAT ANY SUCH ACTION, PROCEEDING, CLAIM, OR COUNTERCLAIM SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.

  

7

  

IN WITNESS WHEREOF, Seller and Buyer have executed this Agreement to be effective as of the date of Agreement written above.

	  	
SELLER:

	  	  
	  	
NATHAN’S FAMOUS, INC.

	  	  	  
	  	
By:

	
/s/ ERIC GATOFF

	  	  	
Title:  CEO

	  	  	  
	  	
BUYER:

	  	  
	  	
Y & Y CAPITAL CO, LLC

	  	  	  
	  	
By : /s/ RICHARD SCHWATT______, as Manager

	  	  	  
	  	
By:

	  
	  	  	
Name:

	  	  	
Title: President

[Signature page to Note Purchase and Sale Agreement]

 

  

8Unassociated Document

 

Exhibit 10.1

 

ASSET FUNDING/OPERATION AND SHAREHOLDERS AGREEMENT

 

This Asset Funding/Operation and Shareholders Agreement (“Agreement”) is entered into this 22nd day of March, 2011 (“Effective Date”) by and among USCorp, a Nevada corporation (“USCorp”),  US Metals, a Nevada corporation (“USMetals”), Arizona Gold Corp, a British Columbia corporation (“AGC”), Arizona Gold Founders, LLC, a California limited liability company (“AGF”), and William and Denise DuBarry Hay (collectively “Hay”).  USCorp, USMetals, AGC, AGF, and Hay may hereinafter be referred to individually as “Party” and collectively as “Parties”.

 

W I T N E S S E T H

 

WHEREAS, USMetals is a wholly owned subsidiary of USCorp and USCorp is a publicly traded corporation.

 

WHEREAS, AGC is a newly formed non-public British Columbia corporation with an unlimited number of authorized common shares.

 

WHEREAS, USMetals owns approximately one hundred seventy two (172) mining claims subject to the Rules and Regulations of the Bureau of Land Management (the “Mining Claims” a copy of which are attached hereto as Exhibit “A” and incorporated herein by this reference) on 3,440 acres and other tangible and intangible personal and intellectual property consisting of the “Twin Peaks Project” located in West-Central, Arizona (collectively the “Twin Peaks Project”).

 

WHEREAS, USCorp may own certain assets that are applicable to the Twin Peaks Project, however, concurrent with the transfer of the Twin Peaks Project assets to AGC in accordance with this Agreement, USCorp will transfer any such assets that are applicable to the Twin Peaks Project to USMetals and USMetals will concurrently transfer such assets received from USCorp to AGC in accordance with the provisions of this Agreement.  In the event any particular asset (other than the Mining Claims) is not transferrable, or the parties decide to leave such assets in USCorp or USMetals, then USCorp and/or USMetals will hold such assets unencumbered strictly for the benefit of AGC.

 

WHEREAS, concurrent with the closing of this Agreement (the “Closing as hereinafter defined) AGF has agreed to transfer One Hundred Thousand Dollars ($100,000.00) U.S. and those certain AGF Mining Claims (the “AGF Mining Claims” a copy of which are attached hereto as Exhibit “B”) to AGC (the “First Capital Investment”) in exchange for a total of Twenty Eight Million Eight Hundred Thousand (28,800,000) shares of common stock of AGC.  The funds received by AGC are to be used to provide the initial capital to AGC for the Twin Peaks Project which includes the prior organizational, legal, geological and due diligence expenses of AGC.

 

WHEREAS, USMetals desires to transfer the Twin Peaks Project assets in an Internal Revenue Code Section 351 transaction to AGC in exchange for One Hundred Four Million Two Hundred Thousand (104,200,000) shares of common stock of AGC.

 

  

  

  

 

WHEREAS, on or before April 15, 2011 (the “Exercise Date”), Hay and/or other investors that are designated by Hay shall have the right to purchase up to Two Million (2,000,000) shares of AGC treasury stock for a price of 10 cents U.S. per share, to raise additional capital of at least One Hundred Thousand Dollars ($100,000.00) U.S., but up to Two Hundred Thousand Dollars ($200,000.00) U.S. for AGC (the “Second Capital Investment”), which funds (to the extent obtained) will be used to conduct a geophysical modeling study using VCF technology and three dimensional modeling to identify drilling targets and potential ore bodies.

 

WHEREAS, if the Second Capital Investment is not received by AGC on or before the Exercise Date, then USMetals shall have certain unwinding rights as set forth below.

 

WHEREAS, Hay shall attempt to raise up to One Million Eight Hundred Thousand Dollars ($1,800,000.00) U.S. of additional capital for AGC (the “Third Capital Investment”) by selling up to Eighteen Million (18,000,000) shares of AGC common treasury stock at an average price of 10 cents U.S. per share on or before September 1, 2011 (the “Election Date”).  In the event less than One Million Dollars ($1,000,000.00) U.S. is raised by AGC under the Third Capital Investment on or before the Election Date, then USMetals shall have certain additional unwinding rights as set forth below.

 

WHEREAS, in the event AGC timely receives the entire amount of the Third Capital Investment then the parties shall, as part of Phase 2 of the planned operations under this Agreement, cause AGC to fund a drilling program and obtain Canadian compliant reports sufficient to allow for a listing of the AGC stock on the TSX or the TSXV/V Canadian exchange within six (6) months, if possible, under the exchange rules and regulations.

 

WHEREAS, as part of Phase 3 of the planned operations under this Agreement the Parties intend to either cause AGC to list its stock on the TSX or the TSXV/V Canadian exchange or utilize a private equity placement to sell additional shares of AGC to raise additional capital for one or more of the following purposes:  (i) to further develop the precious metals reserve base to position AGC for a sale to a senior or intermediate gold producer, (ii) to commence mining operations, or (iii) to enter into a joint venture with another mining company.  Any or all of the foregoing activities shall be subject to the joint written approval of Robert Dultz and Hay.  In addition, if the Second and Third Capital Investments are timely made then up to an additional Nine Million (9,000,000) shares of AGC common treasury stock plus any of the Eighteen Million (18,000,000) shares of AGC common treasury stock that was not sold as part of the Third Capital Investment may be sold (collectively the “Fourth Capital Investment”) by AGC on terms approved by the AGC board of directors (the “Board”).

 

WHEREAS, the Parties shall cause AGC to have a stock option plan consistent with British Columbia law to establish a stock option pool of Ten Million (10,000,000) shares.  The Parties desire that stock options will be granted periodically by the Board to directors and professional and mining executives that join AGC other than Robert Dultz, Hay and any of their Affiliates.  Furthermore, the issuance of stock options shall be subject to the limitations set forth in Section 3.4.1 of this Agreement.

 

  

  

  

 

WHEREAS, the Parties desire to have William Hay, J. Robert Swidler and Robert Dultz as the initial three (3) member Board, which Members cannot be removed except upon their death or disability or exercise of USMetals’ unwinding rights.

 

NOW, THEREFORE, in consideration of the terms and conditions herein contained, the Parties, intending to be legally bound hereby, agree as follows:

 

1.   INCORPORATION OF RECITALS

 

The foregoing recitals are hereby incorporated by reference as if fully set forth at this point.

 

2.   CLOSING DATE

 

The transfer of the Twin Peaks Project assets (the Transferred Assets as defined below) to AGC in exchange for the One Hundred Four Million Two Hundred Thousand (104,200,000) shares of AGC common stock shall be completed on a date that is mutually agreed upon by the Parties, but in no event shall the closing (the “Closing”) of such transfer take place later than March __, 2011 (such closing date shall hereinafter be referred to as the “Closing Date”).  In addition, and concurrent with the Closing AGF shall make a capital contribution of One Hundred Thousand Dollars ($100,000.00) U.S. and the AGF Mining Claims to AGC as part of an IRC Section 351 transaction with USMetals.  The parties acknowledge that AGF has already transferred One Hundred Thousand Dollars ($100,000.00) U.S. to AGC as a non-interest bearing loan and that at the Closing such loan shall be converted to a capital contribution by AGF to AGC and such contribution shall be deemed to satisfy AGF’s obligation to transfer One Hundred Thousand Dollars ($100,000.00) U.S. to AGC as part of the foregoing exchange for AGC stock.

 

3.   TRANSFER OF TWIN PEAKS PROJECT ASSETS AND OPERATION OF AGC POST CLOSING

 

3.1    Transferred Assets.  On the Closing Date, USMetals shall sell, convey, transfer, assign and deliver to AGC, and AGC shall acquire from USMetals free and clear of all liens and encumbrances, all right, title and interest of USMetals in and to the tangible and intangible assets utilized by USMetals in the Twin Peaks Project and AGF shall transfer the AGF Mining Claims (collectively, the “Transferred Assets”).  Such Transferred Assets shall include the assets listed on the Schedule of Transferred Assets attached to this Agreement as Exhibit “C”.  The Transferred Assets shall include all of the Twin Peaks Project tangible and intangible assets including, without limitation, the Mining Claims, the AGF Mining Claims, all water rights, maps, deposits, bonds, assays, all reports and studies, including without limitation drilling reports, environmental reports, biological reports, cultural reports and studies, feasibility studies, samples, drilling cores, permits, drilling permits, art work, websites, domain names, trademarks, copyrights and all copyrighted material for “Twin Peaks” that are applicable to the Twin Peaks Project.  Furthermore, USCorp shall prior to the Closing Date transfer to USMetals free and clear of all liens and encumbrances, all right and title to those certain assets specifically designated on Exhibit “C” and such assets shall be included in the Transferred Assets.  The Transferred Assets shall exclude only those assets held by USMetals that are specifically designated on Exhibit “C”.

 

  

  

  

 

3.2    General Assignment and Assumption and Bill of Sale.  USMetals, AGF and AGC will sign a General Assignment and Assumption and Bill of Sale transferring the Transferred Assets to AGC in the form attached to this Agreement as Exhibit “D”.

 

3.3    Assignment, Acceptance and Consent to Assignments to Mining Claims. On the Effective Date, USMetals and AGF shall immediately proceed to obtain the proper governmental form(s) (the “Assignments”) required to assign/transfer the Mining Claims and the AGF Mining Claims to AGC.  AGC shall sign any Acceptance (“Acceptance”) to the Assignments to be effective upon the Closing.  USMetals shall be responsible at its sole cost and expense of obtaining the necessary written consent (the “Consents”) by the applicable governmental agency(ies) to such Assignments for its Mining Claims and AGF shall be responsible at its sole cost and expense of obtaining the necessary Consents by the applicable governmental agency(ies) to such Assignments  for the AGF Mining Claims, and both USMetals and AGF shall immediately proceed to obtain such Consents.

 

3.4    Post Closing Operations of AGC/Shareholder Voting Requirements.

 

3.4.1  Immediately following the Closing and transfer of assets to AGC by USMetals and, if necessary, USCorp, a meeting of the Shareholders and Directors of AGC will be held telephonically, if permitted under Canadian law.  USMetals and AGF shall cast their votes in favor of William Hay, J. Robert Swidler and Robert Dultz (“Dultz”) as the only Directors of AGC, and USMetals and AGF agree to continue to vote their shares to elect the same Board of Directors unless and until a) both William Hay and Denise DuBarry Hay are unable or unwilling for any reason to serve as a Director, b) or an unwinding event occurs.  In the event William Hay should resign or for any other reason be unable or unwilling to serve on the Board, then Denise DuBarry Hay shall automatically replace him.  In the event J. Robert Swidler should resign or for any other reason be unable or unwilling to serve on the Board, then his replacement shall be selected by the mutual written agreement of Hay and the representative of USMetals.  In the event Dultz should resign or for any other reason be unable or unwilling to serve on the Board, then his replacement shall be selected by the holder of a majority of the outstanding shares of AGC.  In addition, to the foregoing, the Parties agree that during such same period they shall not vote the shares of AGC to (i) approve any amendments to AGC’s Articles of Incorporation or to recapitalize, create other classes of AGC stock, merge, consolidate, liquidate or dissolve AGC, (ii) approve the sale of all or substantially all of the assets of AGC or any redemption of the AGC stock, (iii) approve the payment of salary or other compensation to Hay, Dultz or any of their Affiliates, (iv) approve any increase or decrease in the number of the members of the Board, (v) approve the issuance of stock options to Hay, Dultz or any of their Affiliates, or (vi) approve any issuance of stock, including stock that is included in any stock option plan, that would cause USMetals ownership of common stock to be less than fifty point one percent (50.1%); all without first obtaining the mutual written agreement of Hay and the representative of USMetals.  For purposes of this Agreement, “Affiliate” shall mean any member of the immediate family (parent, child, sibling or spouse) of Hay and/or Dultz, or any corporation, partnership, trust or other entity in which Hay and/or Dultz or any of the foregoing individuals is a director, officer, member, partner or trustee or has an equity interest collectively in excess of 5%.  The term Affiliate shall also include any entity which controls, or is controlled by, or is under common control with, any of the individuals or entities described in the preceding sentence.  Furthermore, the foregoing voting obligations shall apply to any successor of Hay and USMetals.  While William Hay serves on the Board all references requiring the consent of Hay shall only require the consent of William Hay, and if Denise DuBarry Hay has replaced William Hay on the Board then all references requiring the consent of Hay shall only require the consent of Denise DuBarry Hay.

 

  

  

  

 

3.4.2  At the above meeting, each Board Member shall cast their votes to elect William Hay as President and CEO, Dultz as Vice President and such Secretary and Treasurer as they shall agree.  The terms shall be perpetual unless one of the two events occurs in 3.4.1 above.

 

3.4.3  Hay and Dultz agree to develop a written plan for the exploration/development (the “Exploration/Development Plan”) of the Twin Peaks Project.  The primary use of the AGC funds obtained in the Second and Third Capital Investments shall be used to fund those expenses that are provided for in the Exploration/Development Plan.  No expenditures shall be made in excess of the committed funding for AGC by either Hay or Dultz without the express written consent of both of them.

 

3.4.4  All stock issued to any party or investor shall bear a restricted legend that it is subject to the unwinding provisions, Purchase Right and the voting requirements contained in this Agreement.

 

3.4.5  In the event of an unwinding event and in the event USMetals exercises its  Purchase Right(s), then and in that event a meeting of the shareholders shall be called at which meeting the shareholders shall elect a new Board of Directors consistent with their voting rights based upon the number of shares so held by each such shareholder.  Following such meeting the Board of Directors shall hold a meeting at which new officers of AGC shall be elected and the voting requirements set forth in this Section 3.4 shall thereafter cease.

 

4.   NO ASSUMPTION OF LIABILITIES

 

4.1    No Assumption of Liability.  AGC is not assuming any liability of USMetals or AGF, and it is expressly understood and agreed that AGC shall not be liable for any obligations or liabilities of USMetals or AGF of any kind or nature, except for liabilities incurred from and after the Closing Date.

 

4.2    Costs and Expenses. AGC, USMetals and AGF shall pay their own costs relating to this transaction, including, but not limited to, their respective attorneys’ and accountants’ fees.

 

4.3    No Prorations. The obligations for property taxes and Mining Claims and AGF Mining Claims payments shall not be prorated and AGC shall assume those obligations at the Closing Date, provided that they are paid current.   AGC agrees to pay the annual assessment and filing fees to maintain the mining claims with the BLM by July 31st of each year and provide USMetals proof thereof within 5 days thereafter

 

5.   SECOND AND THIRD CAPITAL INVESTMENTS

 

5.1    Second Capital Investment.  On or before the Exercise Date, Hay and/or other investors shall have the right to make a Second Capital Investment that shall permit Hay and/or other investors that are designated by Hay to purchase up to Two Million (2,000,000) shares of AGC treasury stock for a price of 10 cents U.S. per share unless Hay and Dultz otherwise jointly agree to a different per share price, to raise additional capital of at least Two Hundred Thousand Dollars ($200,000.00) U.S. for AGC, which funds (to the extent obtained) will be used to conduct a geophysical modeling study using VCF technology and three dimensional modeling to identify drilling targets and potential ore bodies.

 

  

  

  

 

5.2    Third Capital Investment.  If the Second Capital Investment is timely accomplished, then on or before the Exercise Date, Hay shall attempt to raise the Third Capital Investment that shall permit Hay and/or other investors to purchase up to Eighteen Million (18,000,000) shares of AGC common treasury stock at an average price of 10 cents U.S. per share on or before the Election Date.

 

5.3    Unwinding Rights.

 

5.3.1 Failure to Timely Fund the Second Capital Investment.  In the event the entire amount of the Second Capital Investment (at least $200,000.00 U.S.) is not received by AGC on or before the Exercise Date, then USMetals shall have the right (the “Purchase Right”) within the thirty (30) day period following the Exercise Date to notify, in writing, AGF and the other holders of AGC stock that participated in the Second Capital Investment, of USMetals’ election to cause AGC to purchase all of the AGC stock that was transferred directly or indirectly to AGF on or before the Closing Date plus all AGC stock purchased by AGF or any other holders in the Second Capital Investment.  The purchase price for such stock shall be equal to the then amount of remaining cash (after payment of any outstanding obligations owing by AGC as of the Exercise Date) that is held by AGC and that was invested by AGF and the other investors in the First and Second Capital Investments, to be distributed to them pro rata based on the actual amount of cash invested by them for the First and Second Capital Investments.  In addition, if USMetals exercises its Purchase Right, USMetals and/or USCorp shall concurrently exchange one (1) share of USCorp stock for each share of remaining AGC stock held by Kaswit and Hay pursuant to their Warrant Exercise and Exchange Agreement (14,000,000 shares).

 

5.3.2 Failure to Timely Fund the Third Capital Investment.  In the event less than One Million Dollars ($1,000,000.00) U.S. is raised by AGC under the Third Capital Investment on or before the Election Date, then USMetals shall have the right (the “Purchase Right”) within the thirty (30) day period following the Election Date to notify, in writing, AGF and the other holders of AGC stock that participated in the Second Capital Investment, of USMetals’ election to cause AGC to purchase all of the AGC stock that was transferred directly or indirectly to AGF on or before the Closing Date plus all AGC stock purchased by AGF or any other holders in the Second Capital Investment.  The purchase price for such stock shall be equal to the then amount of remaining cash (after payment of any outstanding obligations owing by AGC as of the Election Date) that is held by AGC and that was invested by AGF and the other investors in the First and Second Capital Investments, to be distributed to them pro rata based on the actual amount of cash invested by them for the First and Second Capital Investments.  In addition, if USMetals exercises its Purchase Right, USMetals and/or USCorp shall concurrently exchange one (1) share of USCorp stock for each share of remaining AGC stock held by Kaswit and Hay pursuant to their Warrant Exercise and Exchange Agreement (14,000,000 shares) and only those investors who participated in the Third Capital.

 

5.3.3 Failure to Timely Exercise Purchase Right.  In the event USMetals fails to timely exercise its applicable Purchase Right then such applicable Purchase Right shall automatically and irrevocably terminate.

 

  

  

  

 

5.3.4 Transfer Documents.  In the event USMetals timely elects its unwinding rights and Purchase Right, Hay agrees on behalf of AGC to execute such reconveyance and other documents necessary to carry out the unwinding and Purchase Right.  In the event Hay does not execute such documents within five (5) days of their delivery to him, Dultz is authorized to execute such documents on behalf of AGC.

 

6.   REPRESENTATIONS, WARRANTIES AND COVENANTS OF USMETALS AND USCORP

 

As of the Closing Date, USMetals and USCorp represent, warrant and covenant as follows:

 

6.1    Ownership of Transferred Assets.  Except as otherwise set forth in this Agreement, USMetals owns and holds good and marketable right, title and interest in and to the Transferred Assets free and clear of any and all liens, encumbrances, security agreements, conditional sales contracts, or other title retention agreements, and such Transferred Assets represent all of the assets used by USMetals in the operation of the Twin Peaks Project.  USMetals and USCorp are not a party to any other contract or commitment that could require USMetals or USCorp to sell, transfer, or otherwise dispose of any of the Transferred Assets, other than in the ordinary course of USMetals’ and USCorp’s business.

 

6.2     Authority.  USMetals and USCorp have full power and authority and all licenses, permits, and authorizations necessary to carry on the business in which USMetals and USCorp are engaged.  USMetals and USCorp have the legal right, power, authority and approval required to enter into, execute and deliver this Agreement, and to fully perform USMetals’ and USCorp’s obligations under this Agreement.  This Agreement has been duly executed and delivered and are the valid and binding obligations of USMetals and USCorp enforceable in accordance with their terms.

 

6.3     Governmental Consents.  The entering into and consummation of the transactions contemplated by this Agreement is not subject to the jurisdiction, approval or consent of any government or governmental, regulatory, or administrative agency except that USMetals shall obtain all necessary consents for the transfer of the Mining Claims to AGC.

 

6.4    Litigation and Claims.  There are no claims, causes of action or legal proceedings, threatened or pending, or outstanding orders, judgments, injunctions, awards or decrees of any court, arbitrator, governmental or regulatory body against or involving USMetals.

 

6.5    Equipment and Property.  USMetals and USCorp have complied with all rules and regulations relating to the Mining Claims, equipment and all other tangible property and intangible property being transferred to AGC.

 

6.6    Accuracy of Schedules/No Undisclosed Liabilities.  All of the schedules attached to this Agreement and USCorp’s 10K and 10Q filings with the Securities and Exchange Commission are true, complete and accurate to the best of USMetals’ and USCorp’s knowledge and there are no undisclosed liabilities and no dispute or claim concerning any liability for federal or state taxes applicable to USMetals, USCorp or the Transferred Assets.

 

  

  

  

 

6.7    Mining Operations. USMetals and USCorp are not aware of the existence of any facts or circumstances that are likely to result in a material adverse effect on the mining operations and there has been no material adverse change in the Transferred Assets (and the respective values thereof) within the sixty (60) days prior to the Closing Date.

 

6.8    No Violation of Law. The obligations and their performance by USMetals and USCorp under this Agreement do and will not violate any applicable federal, state or local statutes, laws or regulations including without limitation, all applicable securities laws, rules and regulations.  Furthermore, there is no violation of any applicable federal, state or local statutes, laws or regulations including without limitation, all applicable securities laws, rules and regulations affecting the Transferred Assets and the operations at the Twin Peaks Project.  No event has occurred or circumstances exist that (with or without the passage of time or the giving of notice) may result in a violation of, conflict with or failure on the part of USMetals or USCorp to conduct the mining operations in material compliance with any applicable law.  USMetals and USCorp, have not received notice (whether oral or written) regarding any actual, alleged, possible, or potential violation of, conflict with, or failure to conduct the mining operations in compliance with any applicable law or any potential obligation on the part of USMetals or USCorp to undertake, or to bear all or any portion of the cost of any remedial action of any nature.

 

6.9    Bankruptcy; Insolvency. None of the following has occurred as of the Closing Date:

 

(i)           A general assignment by USMetals or USCorp for the benefit of creditors;

 

(ii)           The filing of a voluntary petition in bankruptcy, insolvency, reorganization, or liquidation, or any other petition by USMetals or USCorp under any section or chapter of the Bankruptcy Code or any similar law, whether state, federal, or otherwise relating to insolvency, reorganization, or liquidation, or for the relief of debtors;

 

(iii)           The filing of any involuntary petition or other petition against USMetals or USCorp under any section or chapter of the Bankruptcy Code, or any similar law, whether state, federal, or otherwise relating to insolvency, reorganization, or liquidation, or for the relief of debtors;

 

(iv)           The appointment by any court of a receiver or similar official to take possession of USMetals’ or USCorp’s assets, or any part thereof;

 

(v)           The application by USMetals or USCorp or the consent or acquiescence by USMetals of USCorp to an application for the appointment of a custodian, receiver, conservator, trustee, or similar officer for USMetals or USCorp or the Transferred Assets, or any part thereof; or

 

(vi)           The attachment, execution, or judicial seizure (whether by enforcement of money judgment, by writ or warrant of attachment, or by any other process) of the Transferred Assets or any part thereof.

 

6.10    Environmental. During the time USMetals and USCorp have owned the Transferred Assets, there has been no litigation brought or, to USMetals’ or USCorp’s actual knowledge, threatened against USMetals or USCorp by, or any settlement reached by USMetals or USCorp with, any party or parties alleging the presence, disposal, release or threatened release of any hazardous materials on, from or under any of USMetals’ or USCorp’s properties or facilities.

 

  

  

  

 

6.11    Good Standing.  USMetals and USCorp are or will be at the Closing in good standing with the State of Arizona and Nevada.

 

7.   REPRESENTATIONS, WARRANTIES AND COVENANTS OF AGC, AGF AND HAY

 

AGC, AGF and Hay represent, warrant and covenant that as of the Closing Date:

 

7.1    Good Standing and Qualification.  AGC is a British Columbia corporation duly organized, validly existing and in good standing under the laws of British Columbia, Canada.

 

7.2    Authority.  AGC has full power to acquire and own the Transferred Assets and to conduct AGC’s business.  AGC and AGF have the legal right, power, authority and approval required to enter into, execute and deliver this Agreement and to fully perform their obligations under those agreements.  This Agreement has been or will be at the Closing duly executed and delivered and are the valid binding obligation of AGC and AGF enforceable according to their terms, and the person executing this Agreement, and other documents ancillary to this Agreement is duly authorized to do so.

 

7.3    Legally Binding.  AGC and AGF have the right, power and legal capacity and authority to enter into and perform their obligations under this Agreement.  This Agreement and all schedules and exhibits attached to this Agreement constitute valid, legal and binding obligations of AGC and AGF in accordance with their terms.

 

7.4    Authorization.  Execution, delivery and performance of this Agreement has been duly authorized by all necessary corporate/company action and do not conflict with any provision of any agreement, instrument, judgment, order or law to which AGC is a party or to which AGC is subject or bound.

 

8.   DELIVERIES ON THE CLOSING DATE

 

On or before the Closing Date, AGC shall deliver or cause to be delivered to USMetals and AGF, as applicable, the following documents and instruments in exchange for delivery of the items specified in Section 9 and 10 below:

 

	
  

	
(i)

	
two (2) original, executed counterparts of the General Assignment and Assumption and Bill of Sale in the form of Exhibit “D” attached hereto;

 

	
  

	
(ii)

	
all Acceptances to the Assignments duly executed by AGC that accept the assignment and the transfer of good and marketable title to the Mining Claims and the AGF Mining Claims to AGC;

 

	 	
(iii) 

	
a duly executed and delivered original stock certificate for One Hundred Four Million Two Hundred Thousand (104,200,000) shares of common stock of AGC with the applicable legend restriction issued to USMetals; and

 

	 	
(iv) 

	
a duly executed and delivered original stock certificate for Twenty Eight Million Eight Hundred Thousand (28,800,000) shares of common stock of AGC with the applicable legend restriction issued to AGF.

 

  

  

  

 

9.   USMETALS’ DELIVERIES ON THE CLOSING DATE

 

On the Closing Date, USMetals shall deliver or cause to be delivered to AGC the following documents and instruments in exchange for delivery of the items specified in Section 8 above:

 

	
  

	
(i)

	
two (2) original, executed counterparts of the General Assignment and Assumption and Bill of Sale in the form of Exhibit “D” attached hereto;

 

	
  

	
(ii)

	
all Assignments and Consents to Assignments duly executed by USMetals and the applicable governmental authority(ies) approving/consenting to the Assignments and to the transfer of good and marketable title to the Mining Claims to AGC.

 

10.   AGF’S DELIVERIES ON THE CLOSING DATE

 

On the Closing Date, AGF shall deliver or cause to be delivered to AGC the following documents and instruments in exchange for delivery of the items specified in Section 8 above:

 

	
  

	
(i)

	
two (2) original, executed counterparts of the General Assignment and Assumption and Bill of Sale in the form of Exhibit “D” attached hereto;

 

	
  

	
(ii)

	
all Assignments and Consents to Assignments duly executed by AGF and the applicable governmental authority(ies) approving/consenting to the Assignments and to the transfer of good and marketable title to the AGF Mining Claims to AGC.

 

11.   MISCELLANEOUS

 

11.1     Parties.  Wherever the context of this Agreement appears to require it, the singular number shall include the plural and vice versa, and the masculine gender shall include the feminine and/or neuter gender, and vice versa.

 

11.2    Negotiation or Mediation.  The parties may, by mutual written agreement only, stay the commencement of any proceedings from time to time as they may mutually agree to allow for any form of negotiation or mediation of any dispute.

 

11.3    Attorneys’ Fees.  In the event of any controversy, claim or dispute between the parties hereto, arising out of or relating to this Agreement or the alleged breach thereof, each party shall bear its own legal costs and reasonable attorneys' fees, including experts, appeals and the cost of enforcing any judgment obtained in such action.

 

11.4     Severability.  Each provision of this Agreement is independent, separate and divisible, and in the event any provision of this Agreement is found by the final order of an arbitrator or a court of competent jurisdiction to be invalid, unenforceable or in contravention of any applicable federal or state law or regulation, such provision shall be deemed not to be a part of this Agreement and shall not affect the validity or enforceability of the remaining provisions.  Nothing contained in this Agreement shall be construed so as to require the commission of any acts contrary to law, and wherever there is a conflict between any provision of this Agreement and any present or future law or regulation, such provision shall be limited to the extent necessary to make it comply with such law or regulation.

 

  

  

  

 

11.5    Time of Essence.  In all provisions of this Agreement, time is expressly declared to be of the essence.

 

11.6    Effect of Headings, Schedules and Exhibits.  Section headings are included for purposes of convenience only and shall be given no meaning in the interpretation or construction of this Agreement.  All schedules and exhibits to this Agreement are incorporated into and made part of this Agreement as if set forth in their entirety in this Agreement.

 

11.7    Applicable Law.  This Agreement shall be governed by and construed under the laws of the State of California.  The State Court of California nearest to Palm Springs, California or the Federal District Court closet to Palm Springs, California shall be the venue for any such action.

 

11.8    Further Cooperation.  The parties hereto agree to execute, deliver and file such other and further documents, instruments and agreements and shall take or cause to be taken all action, and to do or cause to be done all things, necessary, proper or advisable under applicable laws and regulations to consummate this Agreement and carry out the purposes of this Agreement.

 

11.9    Counterparts.  This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.  Execution and delivery of this Agreement by delivery of a facsimile or electronically recorded copy (including a .pdf file) bearing a copy of the signature of a party shall constitute a valid and binding execution and delivery of this Agreement by such party.  Such copies shall constitute enforceable original documents.

 

11.10    Amendment and Waiver.  No provision of this Agreement may be altered, amended or repealed in whole or in part other than by the written consent of all the parties to this Agreement.  No waiver shall be binding unless executed in writing by the party granting the waiver. Neither the failure nor delay on the part of any party to exercise any right, remedy, power, privilege or provision under this Agreement shall operate as a waiver of such right, remedy, power, privilege or provision.  Waiver of any right, remedy, power, privilege or provision under this Agreement shall not be deemed or constitute a waiver of any other  right, remedy, power, privilege or provision under this Agreement, whether or not similar, nor shall such waiver constitute a continuing waiver.

 

11.11    Notices.  All notices, consents, waivers, and other communications required or permitted under this Agreement shall be in writing and shall be deemed given to a Party:  (a) when delivered to the address designated for such Party below by hand; (b) upon confirmed delivery after being sent by a nationally recognized overnight courier service (costs prepaid); in each case to the addresses and facsimile numbers designated below.  Any Party may change such Party’s address for purposes of this Agreement by notice given in accordance with this paragraph.  Any notice sent by a Party’s legal counsel shall constitute notice from that Party.

 

  

  

  

 

 

	To: AGC, AGF and Hay:	 
William Hay

4535 W. Sahara Blvd, Suite 200

Las Vegas, NV 89102

Fax 702-933-4035

 

 

	 
With a copy to:

	 
 
Brian M. Lewis, Esq.

44-700 Village Court, Ste. 100

Palm Desert, CA  92260

Fax 760-568-9211

 

	 
 
To: USMetals and USCorp:

	 
USCorp Attn:  Robert Dultz

4535 W. Sahara Blvd, Suite 200

Las Vegas, NV 89102

Fax 702-933-4035

 

	With a copy to:   
 

	 
USCorp c/o Robert Dultz,

1775 E. Palm Canyon Drive #110-120

Palm Springs, CA 92264

Fax 760-564-3462

 

	 
And a copy to:  

	 
Jeffrey M. Proper, Esq.

10645 N Tatum Blvd, Suite 200-652

Phoenix, AZ  85028

Fax 602-235-9223

 

11.12    Survival of Representations.  All covenants, agreements, indemnifications, representations and warranties made in this Agreement, and in any documents, certificates, and instruments delivered at the Closing Date pursuant to this Agreement, shall be deemed to be material, and to have been relied upon by each Party as the case may be, and shall survive the Closing Date.

 

11.13     Successors.  This Agreement shall inure to the benefit of and be binding upon the parties hereto, and their respective personal representatives, shareholders, officers, directors, heirs, devisees, legatees, successors, transferees, and assigns.

 

11.14    Nonassignability.  This Agreement shall not be assignable by either party except with the written consent of the other which may be withheld in such party’s discretion.  Nothing in this Agreement, express or implied, is intended to confer upon any person other than the parties hereto and their respective heirs, personal representatives, successors and permitted assigns, any rights or  remedies by or under or by reason of this Agreement.

 

11.15    Entire Agreement.  All prior negotiations and agreements between the parties hereto relating to the subject matter hereof, are superseded by this Agreement, and there are no representations, warranties, understandings, or agreements other than those expressly set forth herein.

 

  

  

  

 

11.16    Construction.  This Agreement has been negotiated at arms length and each party has been given the opportunity to be represented by legal counsel and to the extent each party has deemed necessary, each party has consulted with independent legal counsel with respect to such party's rights and obligations under this Agreement.  Accordingly, any rule of law (including without limitation California Civil Code Section 1654) or legal decision that would require interpretation of any ambiguities in this Agreement against the party drafting it is not applicable and is waived.  The provisions of this Agreement shall be interpreted in a reasonable manner to effect the intent of the parties and the purpose of this Agreement.

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

USCorp:

USCorp, a Nevada corporation

By:      \s\ Robert Dultz                                                              

       Robert Dultz, President

USMetals:

US Metals, a Nevada corporation

By:      \s\ Robert Dultz                                                              

       Robert Dultz, President

AGC:

Arizona Gold Corp, a British Columbia corporation

By:      \s\ William Hay                                                              

     William Hay, President

AGF:

Arizona Gold Founders, LLC, a California limited liability company

By:     \s\ William Hay                                                              

       William Hay, its Manager

Hay:

    \s\ William Hay                                                                     

William Hay

    \s\ Denise DuBarry Hay                                                     

Denise DuBarry Hay

  

  

  

EXHIBIT A

MINING CLAIMS

	
#

	
Claim Name

	
1

	
WG 1

	
2

	
WG 6

	
3

	
WG 13

	
4

	
HAYS

	
5

	
HAYS 1

	
6

	
ROSE I

	
7

	
ROSE 2

	
8

	
ROSE 3

	
9

	
ROSE 4

	
10

	
ROSE 5

	
11

	
ROSE 6

	
12

	
ROSE 7

	
13

	
CROSBY 1

	
14

	
CROSBY 2

	
15

	
CROSBY 4

	
16

	
CROSBY 5

	
17

	
CROSBY 6

	
18

	
CROSBY 7

	
19

	
CROSBY 10

	
20

	
CROSBY 11

	
21

	
CROSBY 12

	
22

	
CROSBY 13

	
23

	
CROSBY 14

	
24

	
CROSBY 15

	
25

	
CROSBY 16

	
26

	
CROSBY 17

	
27

	
CROSBY 18

	
28

	
CROSBY 19

	
29

	
CROSBY 20

	
30

	
CROSBY 21

	
31

	
ALCAN 1

	
32

	
ALCAN 2

	
33

	
ALCAN 3

	
34

	
ALCAN 4

	
35

	
ALCAN 5

	
36

	
ALCAN 6

	
37

	
ALCAN 7

	
38

	
ALCAN 8

	
39

	
ALCAN 9

  

  

  

 

	
40

	
ALCAN 10

	
41

	
ALCAN 11

	
42

	
ALCAN 12

	
43

	
ALCAN 13

	
44

	
ALCAN 27

	
45

	
ALCAN 52

	
46

	
ALCAN 53

	
47

	
ALCAN 54

	
48

	
ALCAN 55

	
49

	
ALCAN 56

	
50

	
ALCAN 57

	
51

	
ALCAN 58

	
52

	
ALCAN 59

	
53

	
ALCAN 60

	
54

	
ALCAN 61

	
55

	
ALCAN 83

	
56

	
ALCAN 84

	
57

	
ALCAN 85

	
58

	
ALCAN 94

	
59

	
ALCAN 95

	
60

	
ALCAN 104

	
61

	
ALCAN 105

	
62

	
ALCAN 106

	
63

	
ALCAN 113

	
64

	
ALCAN 114

	
65

	
ALCAN 115

	
66

	
ALCAN 117

	
67

	
ALCAN 118

	
68

	
DIANNE

	
69

	
SATURN

	
70

	
URANUS

	
71

	
JANUS

	
72

	
PLUTON

	
73

	
ZUES

	
74

	
SCORPIO

	
75

	
PLUTO

	
76

	
VULCAN

	
77

	
MERCURY

	
78

	
JUPITER

	
79

	
NEPTUNE

	
80

	
VENUS

	
81

	
FIVE HOLE

	
82

	
ROSE

	
83

	
SAME

  

  

  

 

	
84

	
BONANZA

	
85

	
R H KOENIG

	
86

	
NORMA

	
87

	
HELEN

	
88

	
TEDDY

	
89

	
ORGA

	
90

	
JOVE

	
91

	
DAUGHTER

	
92

	
MOON CHILD

	
93

	
JEAN

	
94

	
CASH

	
95

	
DULTZ

	
96

	
SHARLENE

	
97

	
JONES

	
98

	
SANTA MARIA ONE

	
99

	
SANTA MARIA TWO

	
100

	
SANTA MARIA THREE

	
101

	
SANTA MARIA FOUR

	
102

	
SANTA MARIA FIVE

	
103

	
SANTA MARIA SIX

	
104

	
SANTA MARIA SEVEN

	
105

	
SANTA MARIA EIGHT

	
106

	
SANTA MARIA NINE

	
107

	
SANTA MARIA TEN

	
108

	
SANTA MARIA ELEVEN

	
109

	
SANTA MARIA 12

	
110

	
SANTA MARIA 13

	
111

	
SANTA MARIA 14

	
112

	
SANTA MARIA 15

	
113

	
SANTA MARIA 16

	
114

	
SANTA MARIA 17

	
115

	
SANTA MARIA 18

	
116

	
SANTA MARIA 19

	
117

	
SANTA MARIA 20

	
118

	
SANTA MARIA 21

	
119

	
SANTA MARIA 22

	
120

	
SANTA MARIA 23

	
121

	
SANTA MARIA 24

	
122

	
SANTA MARIA 25

	
123

	
SANTA MARIA 26

	
124

	
SANTA MARIA 27

	
125

	
SANTA MARIA 28

	
126

	
SANTA MARIA 29

	
127

	
SANTA MARIA 30

  

  

  

 

	
128

	
SANTA MARIA 31

	
129

	
SANTA MARIA 32

	
130

	
SANTA MARIA 33

	
131

	
SANTA MARIA 34

	
132

	
SANTA MARIA 35

	
133

	
SANTA MARIA 36

	
134

	
SANTA MARIA 37

	
135

	
SANTA MARIA 38

	
136

	
SANTA MARIA 39

	
137

	
SANTA MARIA 40

	
138

	
SANTA MARIA 41

	
139

	
SANTA MARIA 42

	
140

	
SANTA MARIA 43

	
141

	
SANTA MARIA 44

	
142

	
CROSBY EXTENSION #1

	
143

	
CROSBY EXTENSION #2

	
144

	
CROSBY EXTENSION #3

	
145

	
CROSBY EXTENSION #4

	
146

	
CROSBY EXTENSION #5

	
147

	
CROSBY EXTENSION #6

	
148

	
CROSBY EXTENSION #7

	
149

	
CROSBY EXTENSION #8

	
150

	
HAYES EXTENSION #1

	
151

	
HAYES EXTENSION #2

	
152

	
USMP#1

	
153

	
USMP#2

	
154

	
USMP#3

	
155

	
USMP#4

	
156

	
USMP#5

	
157

	
USMP#6

	
158

	
USMP#7

	
159

	
USMP#8

	
160

	
USML 1

	
161

	
USML 2

	
162

	
USML 3

	
163

	
USML 4

	
164

	
USML 5

	
165

	
USML 6

	
166

	
USML 7

	
167

	
USML 8

	
168

	
USML 9

	
169

	
USML 10

	
170

	
USML 11

	
171

	
USML 12

	
172

	
USML 13

  

  

  

EXHIBIT B

AGF MINING CLAIMS

	
Claim Name/Number

	
SERENDIPITY 1

	
SERENDIPITY 2

	
SERENDIPITY 3

	
SERENDIPITY 3

	
SERENDIPITY 4

	
SERENDIPITY 4

	
SERENDIPITY 5

	
SERENDIPITY 6

	
SERENDIPITY 6

	
SERENDIPITY 7

	
SERENDIPITY 8

	
SERENDIPITY 9

  

  

  

EXHIBIT C

 

TRANSFERRED ASSETS

The Transferred Assets of USMetals being transferred to AGC under this Agreement include all tangible and intangible assets directly and indirectly related to the Twin Peaks Project including, without limitation:

a)  The One Hundred Seventy Two (172) mining claims;

b)  All maps;

c)  All deposits and bonds;

d)  All assays, all reports and studies, including without limitation drilling reports, environmental reports, biological reports, cultural reports and studies, feasibility studies;

e)  All available samples and drilling cores;

f)  All permits, including drilling permits currently obtained by USMetals;

g)  All art work, websites and domain names; and

h)  All trademarks, copyrights and all copyrighted material for “Twin Peaks”.

2.           USCorp’s assets that are to be transferred to USMetals consist of the following specifically identified assets:

 

 

3.           The AGF Mining Claims consist of nine (9) twenty (20) acre claims called Serendipity 1 through 9 located on a newly discovered portion of the quartz dike located northwest of the USMetals Mining Claims.

4.           All items set forth in b, d, g and h may be used by USMetals and/or USCorp for such purposes as they may deem necessary, provided that, such items may not be sold, leased, assigned or otherwise transferred for any consideration or directly or indirectly sold, leased, assigned or otherwise transferred to any entity that is in competition with AGC.

SCHEDULE OF EXCLUDED ASSETS

 

AGC acknowledges that the following assets are not included in the definition of Transferred Assets and are not being transferred to AGC: (i) USMetals’ accounts receivable; (ii) USMetals’ cash and cash equivalents, liquid assets, securities and other investments on hand and deposits in banks and other financial institutions; (iii) office equipment, (iv) the items identified below:

  

  

  

EXHIBIT D

 

GENERAL ASSIGNMENT AND ASSUMPTION AND BILL OF SALE

For good and valuable consideration, receipt of which is hereby acknowledged, and in accordance with that certain Asset Funding/Operation and Shareholders Agreement (“AF/O Agreement”), among USCorp, a Nevada corporation (“USCorp”),  USMetals, a Nevada corporation (“USMetals”), Arizona Gold Founders, LLC, a California limited liability company and Arizona Gold Corp, a British Columbia corporation (“AGC”), USMetals and AGF hereby transfer, assign and deliver to AGC, and AGC hereby accepts, all of USMetals’ and AGF’s right, title and interest in and to the Transferred Assets, including without limitation those described in Exhibit “C” to the AF/O Agreement, in their AS-IS, WHERE-IS condition.  AGC hereby assumes all obligations in connection with the Transferred Assets, including Assets which are not capable of being transferred, but are part this Agreement, which are incurred from and after the Closing Date.

This instrument may be executed in two (2) or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.  Execution and delivery of this instrument by delivery of a facsimile or electronically recorded copy (including a .pdf file) bearing a copy of the signature of a party shall constitute a valid and binding execution and delivery of this instrument by such party.  Such copies shall constitute enforceable original documents.

IN WITNESS WHEREOF, USMetals, AGF and AGC have executed this General Assignment and Assumption and Bill of Sale effective as of the Closing Date, as defined in the AF/O Agreement.

Dated:   March 22                     , 2011

USMetals:

US Metals, a Nevada corporation

By:     EXHIBIT -- DO NOT SIGN                     

       Robert Dultz, President

AGF:

Arizona Gold Founders, LLC, a California limited liability company

By:     EXHIBIT -- DO NOT SIGN                    

William Hay, Manager

 

AGC:

Arizona Gold Corp, a British Columbia corporation

By:     EXHIBIT -- DO NOT SIGN                    

William Hay, President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00190-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00190-of-00352.parquet"}]]