Document:

ex10_1.htm

MINERAL PROPERTY 

SALE AND PURCHASE AGREEMENT

BETWEEN

VULTURE GOLD LLC

AND

SOURCE GOLD CORP.

VULTURE MINE

STATE OF ARIZONA

 

 

 

 

 

 

 

 

 

 

 

 

TABLE OF CONTENTS

	
DEFINITIONS

 
	
3

	
REPRESENTATIONS AND WARRANTIES OF LLC

 
	
4

	
REPRESENTATIONS AND WARRANTIES OF SOURCE

 
	
5

	
OFFER OF SALE

 
	
5

	
OFFER TO PURCHASE

 
	
6

	
CLOSING

 
	
6

	
GENERAL

 
	
6

	
APPENDIX “A”
	  
	
DESCRIPTION OF PROPERTY

 
	  

 

2

 

 

SALE AND PURCHASE AGREEMENT

THIS AGREEMENT made effective as of the 7th day of August, 2010.

BETWEEN:

VULTURE GOLD LLC a Limited Liability Company organized

Under the laws of the State of Nevada and having a registered

Office at 520 South Fourth Street, Las Vegas, Nevada

(hereafter “LLC”)

- and -

SOURCE GOLD CORP., a body corporate, incorporated under the laws of Alberta and having offices at; 2 Toronto Street, Suite 234, Toronto, Ontario, Canada.

(hereafter “Source”)

WHEREAS:

	
  
	
A. LLC is the owner of the mineral rights to unpatented mineral claims located in Maricopa County, Arizona, known as the Vulture Mine. 

	
  
	
B.Somerset Management Ltd. (“Somerset”) owns a Fifty Percent (50%) Membership Interest in the LLC and Aravis Investments Ltd. (“Aravis”) owns a Fifty Percent (50%) Membership Interest in the LLC

	
  
	
C.Each of Somerset and Aravis have executed an Assignment and Assumption of Membership Interest in favor of Source on the terms and conditions hereinafter set forth.

	
  
	
D.The Manager of the LLC has consented to the Assignment and Assumption of Membership Interest executed by each of Somerset and Aravis in favor of Source

NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration of the sum of $10.00 now paid by Source to Notar (the receipt of which is hereby acknowledged), the parties agree as follows:

DEFINITIONS

1.1 For the purposes of this Agreement the following words and phrases shall have the following meanings, namely:

	
a)  
	
“Agreement” means this agreement and any amendments thereto from time to time;

 

	
b)  
	
“Aravis” means Aravis Investments Ltd. a corporation incorporated under the laws of Nevis.

 

	
c)  
	
“Closing” means the closing of this Agreement, on or before 12:00 o’clock noon, EDT, on August 7, 2010. “LLC” means Vulture Gold Limited Liability Company, a limited liability company organized under the laws of Nevada.

	
d)  
	
“”Manager” means Cristian Omar Ramos Villegas, the Manager of the LLC.

 

 

3

 

	
e)  
	
“Property” means the unpatented mineral properties located in the County of Maricopa in the State of Arizona all as more particularly described in Appendix “A” hereto;

	
f)  
	
“Property Rights” means all applications for permits for general reconnaissance, permit for general reconnaissance, interim approvals, applications for contracts of work, contracts of work, licenses, permits, easements, rights-of-way, certificates and other approvals obtained by either of the parties either before or after the date of this
Agreement and necessary for the exploration and development of the Property, or for the purpose of placing the Property into production or continuing production therefrom.

	
g)  
	
“Sommerset” means Somerset Management Ltd. a corporation incorporated under the laws of Nevis.

	
h)  
	
“Source” means Source Gold Corp.a corporation incorporated under the laws of Nevada

 

REPRESENTATIONS AND WARRANTIES OF LLC

2.1           LLC hereby acknowledges and confirms that it holds the Property Rights related to an undivided one hundred (100%) percent interest in the Property on behalf of the members of the LLC as at the date hereof.

 

	
2.2  
	
LLC represents and warrants to Source  that:

	
a)  
	
LLC is lawfully authorized to hold this interest in the Property and will remain so entitled until 100% of the Membership Interests of the LLC have been duly transferred to Source as contemplated by the terms hereof;

	
b)  
	
LLC is legally competent to execute this agreement and to take all actions required pursuant thereto and that upon the execution and delivery, this agreement, will constitute a legal, valid and binding contract of LLC enforceable  against the LLC in accordance with its terms;

	
c)  
	
as at the date hereof and at the time of transfer to Source of the Membership Interest in the LLC the Property is free and clear of all liens, charges, claims, royalties or net profit interests of whatsoever nature, and no taxes or rentals will be due in respect of any thereof;

	
d)  
	
Tha LLC has the right and capacity to deal with the Property and the right to enter into this Agreement as herein contemplated;

	
e)  
	
there is no adverse claim or challenge against or to LLC’s interest in the Property, nor to the knowledge of LLC is there any basis therefore, and there are no outstanding agreements or options to acquire or purchase such interest in the Property or any portion thereof other than this Agreement;

	
f)  
	
no person has any royalty, net profit interests or other interest whatsoever in the Property;

	
g)  
	
The Manager of the LLC is duly authorized to execute  this Agreement and for the performance of this Agreement by the LLC, and the consummation of the transactions herein contemplated will not conflict with or result in any breach of any covenants or agreements contained in, or constitute a default under, or result in the creation of any encumbrance
under the provisions of its articles or constating documents or any indenture, agreement or other instrument whatsoever to which the LLC is a party or by which he is bound or to which the LLC or the Property may be subject;

	
h)  
	
no proceedings are pending for, and it is unaware of any basis for the institution of any proceedings leading to, the placing of the LLC in bankruptcy or subject to any other laws governing the affairs of and insolvent person;

	
i)  
	
there are no claims, proceedings, actions or lawsuits in existence with respect to the right, title, estate and interest of the LLC in the Property;

	
j)  
	
to the best of the LLC’s information and belief, all laws, regulations and orders of all governmental agencies having jurisdiction over the Property have been complied with by the LLC;

	
k)  
	
to the best of his information and belief LLC is in good standing under all agreements and instruments affecting the Property to which it is a party or is bound.

 

4

 

 

2.3 The representations and warranties contained in this section are provided for the exclusive benefit of Source, and a breach of any one or more thereof may be waived by Source in whole or in part at any time without prejudice to its rights in respect of any other breach of the same or any other representation or warranty, and the representations
and warranties contained in this section shall survive the execution hereof.

2.4 The representations and warranties contained in this section shall be deemed to apply to all assignments, transfers, conveyances or other documents transferring to Source the interest to be acquired hereunder and there shall not be any merger of any covenant, representation or warranty in such assignments, transfers, conveyance or documents,
any rule or law, in equity or statute to the contrary notwithstanding.

REPRESENTATIONS AND WARRANTIES OF SOURCE

3.1  Source represents and warrants to LLC that:

	
a)  
	
it has been duly incorporated and validly exists as a corporation in good standing under the laws of its jurisdiction of incorporation;

	
b)  
	
it has duly obtained all corporate authorizations for the execution of this Agreement and for the performance of this Agreement by it, and the consummation of the transaction herein contemplated by it will not conflict with or result in any breach of any covenants or agreements contained in, or constitute a default under, or result in the creation of any
encumbrance under the provisions of the articles or the constating documents of it or any shareholders' or directors' resolution, indenture, agreement or other instrument whatsoever to which it is a party or by which they are bound or to which it or the Property may be subject; and,

	
c)  
	
no proceedings are pending for, and it is unaware of any basis for the institution of any proceedings leading to, the dissolution or winding up of Source or the placing of Source in bankruptcy or subject to any other laws governing the affairs of insolvent corporations.

3.2 The representations and warranties contained in this section are provided for the exclusive benefit of the LLC and a breach of any one or more thereof may be waived by the LLC in whole or in part at any time without prejudice to its rights in respect of any other breach of the same or any other representation or warranty, and the representations
and warranties contained in this section shall survive the execution hereof.

3.3 The representations and warranties contained in this section shall be deemed to apply to all assignments, transfers, conveyances or other documents transferring to the LLC the interest to be acquired hereunder and there shall not be any merger of any covenant, representation or warranty in such assignments, transfers, conveyance or
documents, any rule or law, in equity or statute to the contrary notwithstanding.

OFFER OF SALE

	
4.1  
	
TheLLC hereby irrevocably grants to Source the sole and exclusive right to concurrently acquire;

	
  
	
a) a 50% Membership Interest in the LLC, free and clear of all charges, encumbrances and claims in consideration of the issuance in the name of Somerset Two Million (2,000,000) Common Shares of Source, and;

	
  
	
b) a 50% Membership Interest in the LLC, free and clear of all charges, encumbrances and claims in consideration of the issuance in the name of Aravis Two Million (2,000,000) Common Shares of Source

 

 

5

 

 

OFFER TO PURCHASE

5.1 Source hereby offers to purchase from the LLC the Membership Interest in the LLC pursuant to the terms and conditions outlined in para. 4.1 .

 

CLOSING

6.1 The Closing of this Agreement shall take place not later than at 12 o’clock, noon, PDT, on August 7, 2010, at the offices of Source.

6.2 Upon the Closing of this agreement;

	
i.  
	
The Manager of the LLC shall convey to Source a One Hundred (100%) Percent Membership Interest in the LLC

	
ii.  
	
Source shall deliver to each of Somerset and Aravis a treasury order for for Two Million (2,000,000) Common Shares in the capital of Source

 

6.3 The LLC and Source will use their best efforts to assist each other in obtaining the requisite regulatory approvals required in connection with the execution, delivery and performance of this Agreement.

GENERAL

13.1 This Agreement shall supersede and replace any other agreement or arrangement, whether oral or written, heretofore existing between the parties in respect of the subject matter of this Agreement. 

 

13.2 No consent or waiver expressed or implied by any party in respect of any breach or default by any other party in the performance by such other of its obligations hereunder shall be deemed or construed to be a consent to or a waiver of any other breach of default.

 

13.3 The parties shall promptly execute or cause to be executed all documents, deeds, conveyances and other instruments of further assurance and do such further and other acts which may be reasonably necessary or advisable to carry out fully and effectively the intent and purpose of this Agreement or to record wherever appropriate the respective
interest from time to time of the parties in the Property.

 

13.4 This Agreement shall enure to the benefit of and be binding upon the parties and their respective successors and permitted assigns.

 

13.5 This Agreement shall, (i) be governed by and construed in accordance with the laws of Nevada and the parties hereby irrevocably attorn to the jurisdiction of the said State of Nevada and (ii) be subject to the approval of all securities regulatory authorities having jurisdiction, such approvals will be sought in a timely and diligent
manner.

 

13.6 Time shall be of the essence in this Agreement.

 

 

6

 

 

13.7 Wherever the neuter and singular is used in this Agreement it shall be deemed to include the plural, masculine and feminine, as the case may be.

 

13.8 The rights and obligations of each party shall be in every case several and not joint or joint and several.

 

13.9 This Agreement may be executed in any number of identical counterparts which shall constitute an original and collectively and separately constitute a single instrument or agreement.

 

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

VULTURE GOLD  LLC

/s/ Cristian Omar Ramos Villegas

Cristian Omar Ramos Villegas, Manager

SOURCE ENERGY CORP..

 

/s/ Lauren Notar

Lauren Notar, Pres. & CFO

 

 

7

 

Appendix A

to the

Mineral Property 

Sale and Purchase  Agreement

date August 7, 2010  

VULTURE MINE

MINERAL PROPERTY DESCRIPTION

	
Name of Claims
	
ADL No.
	
Location

	
Gold Point Claims #1 - #22
	
AMC393439-AMC393460
	
Maricopa County, AZ

	
Gold Point Claims #27 - #29
	
AMC393465-AMC393467
	
Maricopa County, AZ

	
Red Cloud
	
AMC398568
	
Maricopa County, AZ

	
Red Rock
	
AMC398569
	
Maricopa County, AZ

	
Vulture
	
AMC398570
	
Maricopa County, AZ

 

8

 

 

CONSENT OF MANAGER

VULTURE GOLD LLC

Assignment of Membership Interest

Between

Aravis Investments Ltd. and Source Gold Corp.

Dated August 9th 2010

By executing this document, the Manager of the Limited Liability Company expressly consent to the assignment of the Membership Interest from Assignor to Assignee, approves the form and content of Assignment of Membership Interest, and acknowledge that Assignee is (as to the Interest) a substituted
Member.

VULTURE GOLD LLC

per/s/ Cristian Omar Ramos Villegas

Cristian Omar Ramos Villegas, Manager

 

 

1

 

 

ASSIGNMENT AND ASSUMPTION OF MEMBERSHIP INTEREST

from

ARAVIS INVESTMENTS LTD.

to

SOURCE GOLD CORP.

THIS ASSIGNMENT, dated this 9th of August , 2010, is made and entered into by and between Aravis Investments Ltd.("Assignor") and Source Gold Corp. ("Assignee"),
with reference to the following facts:

 

WHEREAS, Assignor owns Fifty Percent (50%) Membership Interest in Vulture Gold Limited Liability Company ("LLC") which was formed in the State of Nevada pursuant to the Articles
of Organization, dated August 4th, 2010, (the "Articles"); and

 

WHEREAS, Assignor desires to assign for good and valuable consideration, all of his right, title, duties, obligations, and interest in and to Fifty Percent (50%) membership interest in the LLC to Assignee;

 

NOW, THEREFORE, in view of the foregoing facts Assignor assigns, transfers and conveys the Membership Interest to Assignee, and Assignee accepts all rights, title, duties, obligations and interest in and to the Interest.

 

This Assignment is made upon the following terms, covenants and conditions:

 

1.           It is the intent of Assignor and Assignee that Assignee succeed to the Membership Interest as a Substituted Member, as such is defined in the Operating Agreement.

2.           By its acceptance of the Membership Interest, Assignee hereby accepts, and agrees to be bound by, all of the terms and provisions of the Articles and Operating Agreement.

3.           Assignor hereby warrants and represents for the reliance and benefit of Assignee and the Limited Liability Company, that Assignor is the owner of the Interest, and that Assignor has not previously sold, assigned, transferred,
or encumbered the Membership Interest.

4.           The parties hereto represent and warrant for the reliance and benefit of the Limited Liability Company that this Assignment is made in accordance with all applicable laws and regulations and that Assignee meets all applicable
investor suitability standards.

5.           The parties hereto agree to execute and deliver such additional documents as may be necessary or appropriate to effectuate the provisions of the Articles and to consummate the assignment contemplated herein according to the
terms and conditions hereof.

This Agreement may be executed in any number of identical counterparts which shall constitute an original and collectively and separately constitute a single instrument or agreement.

 

1

 

This Agreement may be executed in any number of identical counterparts which shall constitute an original and collectively and separately constitute a single instrument or agreement.

ARAVIS INVESTMENTS LTD.

per /s/ David Craven

David Craven, Director

SOURCE GOLD CORP.

per /s/ Loren Notar

Loren Notar, Director

 

 

2

 

CONSENT OF MANAGER

VULTURE GOLD LLC

Assignment of Membership Interest

Between

Somerset Management Ltd. and Source Gold Corp.

Dated August 9th 2010

By executing this document, the Manager of the Limited Liability Company expressly consent to the assignment of the Membership Interest from Assignor to Assignee, approves the form and content of Assignment of Membership Interest, and acknowledge that Assignee is (as to the Interest) a substituted
Member.

VULTURE GOLD LLC

per/s/ Cristian Omar Ramos Villegas

Cristian Omar Ramos Villegas, Manager

 

 

1

 

 

ASSIGNMENT AND ASSUMPTION OF MEMBERSHIP INTEREST

  from

SOMERSET MANAGEMENT LTD.

to

SOURCE GOLD CORP.

THIS ASSIGNMENT, dated this 9th of August , 2010, is made and entered into by and between Somerset Management Lted.("Assignor") and Source Gold Corp. ("Assignee"),
with reference to the following facts:

 

WHEREAS, Assignor owns Fifty Percent (50%) Membership Interest in Vulture Gold Limited Liability Company ("LLC") which was formed in the State of Nevada pursuant to the Articles
of Organization, dated August 4th, 2010, (the "Articles"); and

 

WHEREAS, Assignor desires to assign for good and valuable consideration, all of his right, title, duties, obligations, and interest in and to Fifty Percent (50%) membership interest in the LLC to Assignee;

 

NOW, THEREFORE, in view of the foregoing facts Assignor assigns, transfers and conveys the Membership Interest to Assignee, and Assignee accepts all rights, title, duties, obligations and interest in and to the Interest.

 

This Assignment is made upon the following terms, covenants and conditions:

 

1.           It is the intent of Assignor and Assignee that Assignee succeed to the Membership Interest as a Substituted Member, as such is defined in the Operating Agreement.

2.           By its acceptance of the Membership Interest, Assignee hereby accepts, and agrees to be bound by, all of the terms and provisions of the Articles and Operating Agreement.

3.           Assignor hereby warrants and represents for the reliance and benefit of Assignee and the Limited Liability Company, that Assignor is the owner of the Interest, and that Assignor has not previously sold, assigned, transferred,
or encumbered the Membership Interest.

4.           The parties hereto represent and warrant for the reliance and benefit of the Limited Liability Company that this Assignment is made in accordance with all applicable laws and regulations and that Assignee meets all applicable
investor suitability standards.

5.           The parties hereto agree to execute and deliver such additional documents as may be necessary or appropriate to effectuate the provisions of the Articles and to consummate the assignment contemplated herein according to the
terms and conditions hereof.

 

 

1

 

 

This Agreement may be executed in any number of identical counterparts which shall constitute an original and collectively and separately constitute a single instrument or agreement.

SOMERSET MANAGEMENT LTD.

per /s/ Roger Knox

Roger Knox, Director

SOURCE GOLD CORP.

per /s/ Loren Notar

Loren Notar, Director

 

 

 

 

 

2ex10_1.htm

FORBEARANCE AGREEMENT

 

THIS FORBEARANCE AGREEMENT dated as of June 15, 2010 (the “Agreement”) is entered into between CM CAPITAL SERVICES, LLC, a Nevada limited liability company (the “Borrower”), CM GROUP, LLC, a Delaware limited liability company (“Pledgor”) and DESERT CAPITAL REIT, INC.,  a Maryland corporation (the “Lender”).  All capitalized terms used herein and not otherwise defined herein shall have the meanings given to such terms in the Loan Agreement (as defined below).

 

RECITALS

 

WHEREAS, the Borrower and the Lender entered into that certain Loan Agreement dated as of November 21, 2007, as amended by that certain First Amendment to Loan Agreement dated as of November 2008 (as amended or modified from time to time, the “Loan Agreement”);

 

WHEREAS, the payment and performance of the liabilities and obligations of Borrower under the Loan Documents, including without limitation, the indebtedness evidenced by the Note, are secured by that certain Pledge Agreement dated November 21, 2007 between Pledgor and Lender (as the same may be amended or modified from time to time, the “Pledge Agreement”).

 

WHEREAS, the Borrower has requested that the Lender forbear from exercising certain rights and remedies arising from the Existing Events of Default (as defined below) through August 13, 2010; and

 

WHEREAS, the Lender is willing to do so subject to the terms and conditions specified in this Agreement;

 

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

 

1.           Reaffirmation.  The Borrower hereby acknowledges and reaffirms (a) that it is bound by all of the terms of the Loan Agreement and the Loan Documents to which it is a party and (b) that it is responsible for the observance and full performance of all obligations under the Loan Agreement, including without limitation, the repayment of the Loan.  Furthermore, the Borrower acknowledges and confirms that by entering into this Agreement, the Lender does not waive or release any term or condition of the Loan Agreement or any of the other Loan Documents or any of its rights or remedies under such Loan Documents or applicable law or any of the obligations of the Borrower thereunder.

 

2.           Forbearance.

 

(a)           The Borrower acknowledges that Events of Default exist under the Loan Agreement as a result of the failure of the Borrower to comply with the terms of Sections 8(a) and 8(b) of the Loan Agreement as of the fiscal quarter ending December 31, 2009 (collectively, the “Existing Events of Default”).

 

(b)           Subject to the terms and conditions set forth herein, the Lender agrees that it shall, during the Forbearance Period (as defined below), forbear from exercising any and all rights or remedies available to it as a result of the Existing Events of Default, but only to the extent such rights or remedies arise exclusively as a result of the Existing Events of Default; provided, however, that the Lender shall be free to exercise any or all of its rights and remedies arising on account of the Existing Events of Default at any time upon or after the occurrence of a Forbearance Termination Event (as defined below). Nothing set forth herein or contemplated hereby is intended to constitute an agreement by the Lender to forbear from exercising any of the rights available to it under the Loan Agreement, the other Loan Documents, or applicable law (all of which rights and remedies are hereby expressly reserved by the Lender) upon or after the occurrence of a Forbearance Termination Event.  As used herein, a “Forbearance Termination Event” shall mean the earliest to occur of (a) any Event of Default under any of the Loan Documents other than the Existing Events of Default, (b) a breach by the Borrower of any term or condition of this Agreement, and (c) August 13, 2010.  The period from the date hereof to (but excluding) the date that a Forbearance Termination Event occurs shall be referred to as the “Forbearance Period.”  The provisions and agreements set forth in this Agreement shall not establish a custom or course of dealing or conduct between the Lender and the Borrower.

 

3.           Conditions Precedent.  This Agreement shall be effective as of the date hereof when all of the conditions set forth below have been satisfied:

 

(a)           The Lender shall have received counterparts of this Agreement, duly executed by the Borrower and the Lender;

 

(b)           The Lender shall have received payment of its fees and expenses (including, without limitation, the reasonable costs and fees of its legal counsel) incurred in connection with this Agreement.

 

4.           Release.  As a material part of the consideration for the Lender entering into this Agreement, the Borrower agrees as follows (the “Release Provision”):

 

(a)           By its signature below, the Borrower hereby agrees that the Lender, and each of  its respective affiliates, officers, directors, agents and employees, and their respective successors and assigns (hereinafter all of the above collectively referred to as the “Lender Group”), are irrevocably and unconditionally released, discharged and acquitted from any and all actions, causes of action, claims, demands, damages and liabilities of whatever kind or nature, in law or in equity, now known or unknown, suspected or unsuspected to the extent that any of the foregoing arises from any action or failure to act solely in connection with the Loan Documents on or prior to the date hereof.

 

(b)           The Borrower hereby acknowledges, represents and warrants to the Lender Group that:

 

(i)           the Borrower has read and understands the effect of the Release Provision. The Borrower has had the assistance of independent counsel of its own choice, or has had the opportunity to retain such independent counsel, in reviewing, discussing, and considering all the terms of the Release Provision; and if counsel was retained, counsel for the Borrower has read and considered the Release Provision and advised the Borrower with respect to the same.  Before execution of this Agreement, the Borrower has had adequate opportunity to make whatever investigation or inquiry it may deem necessary or desirable in connection with the subject matter of the Release Provision.

 

(ii)           the Borrower is not acting in reliance on any representation, understanding, or agreement not expressly set forth herein.  The Borrower acknowledges that the Lender Group has not made any representation with respect to the Release Provision except as expressly set forth herein.

 

(iii)           the Borrower has executed this Agreement and the Release Provision thereof as its free and voluntary act, without any duress, coercion, or undue influence exerted by or on behalf of any person.

 

(iv)           the Borrower is the sole owner of the claims released by the Release Provision, and the Borrower has not heretofore conveyed or assigned any interest in any such claims to any other person.

 

(c)           The Borrower understands that the Release Provision was a material consideration in the agreement of the Lender to enter into this Agreement.

 

5.           Miscellaneous.

(a)           Ratification.  Except as herein specifically agreed, the Loan Agreement, and the obligations of the Borrower thereunder and under the other Loan Documents, are hereby ratified and confirmed and shall remain in full force and effect according to their respective terms.

(b)           Pledge Agreement.  Pledgor (a) acknowledges and consents to all of the terms and conditions of this Agreement, (b) affirms all of its obligations under the Loan Documents and (c) agrees that this Agreement and all documents executed in connection herewith do not operate to reduce or discharge its obligations under the Pledge Agreement or the other Loan Documents.

(c)           Representations and Warranties. The Borrower and Pledgor each hereby represent and warrant as follows:

       (i)           Each Obligated Party has taken all necessary action to authorize the execution, delivery and performance of this Agreement.

       (ii)           This Agreement has been duly executed and delivered by the Obligated Parties and constitutes the legal, valid and binding obligations of each of the Obligated Parties, enforceable in accordance with its terms.

       (iii)           No consent, approval, authorization or order of, or filing, registration or qualification with, any court or governmental authority or third party is required in connection with the execution, delivery or performance by any obligated Party of this Agreement.

(d)           Representations True and Correct; No Event of Default.  The Obligated Parties represent and warrant to the Lender that after giving effect to this Agreement (i) the representations and warranties of the Obligated Parties set forth in Section 4 of the Loan Agreement and in each other Loan Document are true and correct in all material respects as of the date hereof with the same effect as if made on and as of the date hereof, except to the extent such representations and warranties expressly relate to an earlier date and (ii) except for the Existing Events of Default, no event has occurred and is continuing which constitutes an Event of Default.

(e)           Counterparts.  This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all of which shall constitute one and the same instrument.  Delivery of an executed counterpart of this Agreement by telecopy or other electronic means shall be effective as an original and shall constitute a representation that an executed original shall be delivered.

(f)           GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEVADA.

(g)           Expenses of Lender.  As provided in the Loan Agreement, Borrower agrees to pay on demand all costs and expenses incurred by Lender in connection with the preparation, negotiation, and execution of this Agreement and any and all amendments, modifications, and supplements hereto, including without limitation the reasonable costs and fees of Lender's legal counsel, and all costs and expenses incurred by Lender in connection with the enforcement or preservation of any rights under the Loan Agreement or any other Loan Document, including without limitation the reasonable costs and fees of Lender's legal counsel.

 

(h)           Effect of Waiver.  No consent or waiver, express or implied, by Lender to or for any breach of or deviation from any covenant, condition or duty by Borrower or Pledgor shall be deemed a consent or waiver to or of any other breach of the same or any other covenant, condition or duty.

 

(i)           ENTIRE AGREEMENT.  THIS AGREEMENT, THE LOAN AGREEMENT, THE NOTE, THE PLEDGE AGREEMENT, THE PURCHASE AGREEMENT AND ALL OTHER INSTRUMENTS, DOCUMENTS AND AGREEMENTS EXECUTED AND DELIVERED IN CONNECTION HEREWITH AND THEREWITH EMBODY THE FINAL, ENTIRE AGREEMENT AMONG THE PARTIES HERETO AND SUPERSEDE ANY AND ALL PRIOR COMMITMENTS, AGREEMENTS, REPRESENTATIONS AND UNDERSTANDINGS, WHETHER WRITTEN OR ORAL, RELATING TO THE SUBJECT MATTER HEREOF, AND MAY NOT BE CONTRADICTED OR VARIED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OR DISCUSSIONS OF THE PARTIES HERETO.  THERE ARE NO ORAL AGREEMENTS AMONG THE PARTIES HERETO.

 

 

 

 

 

[Remainder of page intentionally left blank.]

Each of the parties hereto has caused a counterpart of this Agreement to be duly executed and delivered as of the date first above written.

 

                BORROWER:

                CM CAPITAL SERVICES, LLC,a Nevada limited liability company

 

                By:    /s/ Todd B. Parriott                                                

                Name: Todd B. Parriott

                Title: Chief Executive Officer

 

                PLEDGOR:

                CM GROUP, LLC,

                a Nevada limited liability company

 

                By:     /s/ Stacy M. Riffe                                                 

                Name: Stacy M. Riffe

                Title: Chief Financial Officer

 

                LENDER:

                DESERT CAPITAL REIT, INC.,

                a Maryland corporation

 

                By: /s/ Mark Taylor

                Name: Mark Taylor

                Title: Chief Operating Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}]]