Document:

Unassociated Document

     

    AGREEMENT

     

    This
AGREEMENT (the “Agreement”), dated as of
December 14, 2009 (the “Effective Date”), is by and
between Fresenius USA, Inc., a Massachusetts corporation with its principal
executive office at 920 Winter Street, Waltham, MA 02451 (the “FUSA”), and Xcorporeal, Inc.,
a Delaware corporation with its principal executive office at 80 Empire Drive,
Lake Forest, CA 92630 (“Xcorporeal”).

     

    Reference
is made to that certain Asset Purchase Agreement dated as of the Effective Date,
by and among FUSA, Xcorporeal, Xcorporeal Operations, Inc. and National Quality
Care, Inc. (the “Asset Purchase
Agreement”), pursuant to which Xcorporeal, Operations and NQCI intend to
sell to FUSA the Purchased Assets.  Any capitalized terms not defined
herein shall have the meanings ascribed to them in the Asset Purchase
Agreement.

     

    WHEREAS,
in anticipation of the Closing, FUSA desires to pay Xcorporeal for certain
expenses expected to be incurred by Xcorporeal before the Closing;
and

     

    WHEREAS,
prior to the Closing, FUSA desires to utilize certain consulting services of
Xcorporeal and Xcorporeal desires to provide such consulting services to FUSA;
and

     

    WHEREAS,
in anticipation of the Closing, FUSA has incurred and will continue to incur
certain expenses on behalf of Xcorporeal, and the parties desire to agree upon
the terms and conditions for the repayment of such expenses by Xcorporeal in the
event the Closing fails to take place by February 28, 2010, unless otherwise
agreed to by the Sellers and FUSA.

     

    NOW,
THEREFORE, in consideration of the premises and mutual covenants contained
herein the parties agree as follows:

     

    1.           Lease.  Xcorporeal
is a lessee under that certain Standard Industrial/Commercial Lease dated
October 6, 2008, by and between Xcorporeal and Olen Commercial Realty Corp. (the
“Lease”) pertaining to
the premises located at 80 Empire Drive, Lake Forest, California
92630.  Subject to the approval of the Lessor, FUSA shall, upon the
Closing Date, assume the Lease and all future obligations arising thereunder,
provided, however, that FUSA shall not assume any liability or obligation
arising, or related to, any period prior to the Closing Date.  In
consideration of such assumption, Xcorporeal hereby agrees to pay to FUSA on the
Closing Date the amount of $175,000, representing approximately six (6) months
of rent and common area expenses that are expected to be incurred by FUSA under
the Lease following the Closing Date. Xcorporeal shall be entitled to receive
the return of the Letters of Credit and any other security deposits posted by it
in connection with such Lease and FUSA will reasonably cooperate with Xcorporeal
in any actions requested by Xcorporeal to ensure the return of such items on a
timely basis.

     

    2.           Consulting
Services.  FUSA hereby engages, effective November 16, 2009,
Xcorporeal to perform such consulting, advisory and related services to and for
FUSA as may be reasonably requested from time to time by FUSA and its affiliates
(the “Services”), and
Xcorporeal hereby accepts such engagement by FUSA (the “Engagement”), on the terms set
forth in this Agreement, for the period beginning on the Effective Date and
ending on the Closing Date, unless sooner terminated in accordance with Section
2(d) hereof (the “Term”).

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    (a)         Key
Personnel.  The parties agree that Dr. Victor J. Gura, Barry
Fulkerson and Mark Smith (collectively, the “Key Personnel”) are essential
to the Services to be provided pursuant to the Engagement, and are the only
employees of Xcorporeal that will provide such Services, and that the assignment
of the Key Personnel to perform the Services will be continuous throughout the
term of the Engagement.  The parties further agree that should any
such Key Personnel no longer be employed by Xcorporeal during the term of the
Engagement, for whatever reason, FUSA shall have the right to terminate the
Engagement immediately upon notice to Xcorporeal.

     

    (b)         Cooperation.  Xcorporeal
shall use its reasonable commercial efforts in the provision of the Services
pursuant to the Engagement.  Xcorporeal shall cooperate with FUSA’s
personnel, shall not interfere with the conduct of FUSA’s business and shall
observe all rules, regulations and security requirements of FUSA concerning the
safety of persons and property to the extent known to Xcorporeal.

     

    (c)         Fee.  For
the Services rendered by Xcorporeal during the Term, FUSA shall pay to
Xcorporeal a fee, payable in cash in semi-monthly installments, at the following
annual rate for the full-time services of each of the Key
Personnel:

     

    
      
        
          
            
              
                	
                        Dr.
      Victor J. Gura

                      	
                        $442,000/year

                      
	 	 
	
                        Barry
      Fulkerson

                      	
                        $212,000/year

                      
	 	 
	
                        Mark
      Smith

                      	
                        $167,000/year

                      

              

            

          

        

      

    

     

    FUSA will
also reimburse Xcorporeal for all reasonable out-of-pocket Denver, CO to Lake
Forest, CA commuting expenses incurred by Xcorporeal on behalf of Barry
Fulkerson and Mark Smith in the course of their performance of duties pursuant
to the Engagement.  For purposes of clarification, the amounts above
shall be prorated for the duration of the Term and FUSA shall have no obligation
to pay any amounts other than during the Term.  The parties
acknowledge that, notwithstanding the date of this Agreement, FUSA and its
affiliates have previously engaged the services of Barry Fulkerson and Mark
Smith and have paid the required fees for such services.  The parties
further agree and acknowledge that any amounts paid by FUSA with respect to the
services provided by Dr. Victor J. Gura (“Gura”) pursuant to this
Agreement shall be offset against any capital contributions of FUSA or its
affiliates in connection with any HD WAK joint venture between FUSA or an
affiliate of FUSA and Gura, and potentially others related to the development of
the HD WAK and other related applications as contemplated by the exclusivity
letter between Fresenius Medical Care Holdings, Inc. and Xcorporeal, Inc. dated
as of September 21, 2009.

     

    (d)         Termination.  Notwithstanding
anything to the contrary contained in this Agreement, the Engagement shall
terminate upon the earliest to occur of the following (the “Termination
Date”):

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    (i)           At
the election of FUSA, for cause, immediately upon written notice by FUSA to
Xcorporeal.  For the purposes of this Section 2(d)(i), cause for
termination shall be deemed to exist upon (a) a good faith finding by FUSA of
the failure of Xcorporeal to perform the Services in accordance with this
Agreement, which failure comes more than thirty (30) days after Xcorporeal’s
receipt of a written notice from FUSA of such failure, (b) bad faith, gross
negligence or willful misconduct of any Key Personnel; (c) the conviction of any
Key Personnel of, or the entry of a pleading of guilty or nolo contendere by any
Key Personnel to, any crime involving moral turpitude or any felony; (d) a
knowing or willful breach by Xcorporeal or any Key Personnel of Section 2(f)(i),
which breach shall not be cured within thirty (30) days after Xcorporeal’s
receipt of a written notice from FUSA of such breach; or (e) a knowing or
willful breach by Xcorporeal or any Key Personnel of Section 2(f)(ii), which
breach shall not be cured within thirty (30) days after Xcorporeal’s receipt of
a written notice from FUSA of such breach;

     

    (ii)           The
death or disability of any Key Personnel.  As used in this Agreement,
the term “disability” means the inability of Key Personnel with or without
reasonable accommodation as may be required by state or federal law, due to
physical or mental disability, for a period of sixty (60) days, to perform the
Services; and

     

    (iii)           February
28, 2010.

     

    (e)      Effect of
Termination.  Upon the termination of the Engagement, FUSA
shall pay Xcorporeal (i) the consulting fees otherwise payable to Xcorporeal
under Section 2(c) through the last day of the Engagement, and (ii) all unpaid
expense reimbursements payable to Xcorporeal pursuant to Section 2(c) (together,
the “Earned/Accrued
Amounts”).  Following payment of the Earned/Accrued Amounts,
FUSA shall have no further obligation to Xcorporeal pursuant to the
Engagement.

     

    (f)       Inventions and Proprietary
Information.

     

    (i)       Inventions.

     

    (1)            All
inventions, discoveries, computer programs, data, technology, designs,
innovations and improvements (whether or not patentable and whether or not
copyrightable) related to the business of FUSA (“Inventions”) which are made,
conceived, reduced to practice, created, written, designed or developed by Key
Personnel, solely or jointly with others and whether during normal business
hours or otherwise, during the performance of Services for FUSA pursuant to the
Engagement or thereafter if resulting or directly derived from Proprietary
Information (as defined below), shall be the sole property of
FUSA.  Xcorporeal hereby assigns, and shall use its best efforts to
cause the Key Personnel to assign, to FUSA all Inventions and any and all
related patents, copyrights, trademarks, trade names, and other industrial and
intellectual property rights and applications therefor, in the United States and
elsewhere and appoints, and shall use its best efforts to cause the Key
Personnel to appoint, any officer of FUSA as its duly authorized attorney to
execute, file, prosecute and protect the same before any government agency,
court or authority.  Upon the request of FUSA and at FUSA’s expense,
Xcorporeal shall, and shall use its best efforts to cause the Key Personnel to,
execute such further assignments, documents and other instruments as may be
reasonably necessary or desirable to fully and completely assign all Inventions
to FUSA and to assist FUSA in applying for, obtaining and enforcing patents or
copyrights or other rights in the United States and in any foreign country with
respect to any Invention.  Xcorporeal also hereby waives all claims to
moral rights in any Inventions.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    (2)            Xcorporeal
shall promptly disclose to FUSA all Inventions and will maintain adequate and
current written records (in the form of notes, sketches, drawings and as may be
specified by FUSA) to document the conception and/or first actual reduction to
practice of any Invention.  Such written records shall be available to
and remain the sole property of FUSA at all times.

     

    (3)           Notwithstanding
the foregoing, Inventions, if any, patented or unpatented, which Xcorporeal
and/or the Key Personnel made prior to the commencement of Xcorporeal’s
engagement as consultant for FUSA are excluded from the scope of this Agreement.
To preclude any possible uncertainty, attached hereto as Exhibit A is a
complete list of all Inventions (a) that Xcorporeal and/or the Key Personnel has
or have, alone or jointly with others, conceived, developed or reduced to
practice prior to Xcorporeal’s engagement as a consultant for FUSA, (b) that
Xcorporeal and/or the Key Personnel considers to be its or their property or the
property of third parties, and (c) that Xcorporeal wishes to have excluded from
the scope of this Agreement. If disclosure of any such invention on Exhibit A would
potentially cause Xcorporeal to violate a prior confidentiality agreement,
Xcorporeal understands that it is obligated only to describe such invention in
general terms in order to avoid such violation.

     

    (ii)    
 Proprietary
Information.

     

    (1)            Xcorporeal
acknowledges that its relationship with FUSA is one of high trust and confidence
and that in the course of the Services it will have access to and contact with
Proprietary Information.  Subject to Section 2(f)(ii)(3), Xcorporeal
agrees that it will not, during the Term or at any time thereafter, disclose to
others, or use for its benefit or the benefit of others, any Proprietary
Information or Invention.

     

    (2)           For
purposes of this Agreement, Proprietary Information shall mean, by way of
illustration and not limitation, all information (whether or not patentable and
whether or not copyrightable) owned, possessed or used by FUSA, including,
without limitation, any Invention, formula, vendor information, customer
information, apparatus, equipment, trade secret, process, research, report,
technical data, know-how, computer program, software, software documentation,
hardware design, technology, marketing or business plan, forecast, unpublished
financial statement, budget, license, price, cost and employee list that is
communicated to, learned of, developed or otherwise acquired by Xcorporeal in
the course of it providing the Services to FUSA.

     

    (3)           Xcorporeal’s
obligations under this Section 2(f)(ii) shall not apply to any Proprietary
Information that (a) is or becomes known to the general public under
circumstances involving no unauthorized disclosure by Xcorporeal of the terms of
this Section 2(f)(ii), (b) was available to Xcorporeal or Key Personnel on a
non-confidential basis prior to disclosure by Xcorporeal, (c) is generally
disclosed to third parties by FUSA without confidentiality restrictions on such
third parties, (d) is approved for release by written authorization of an
officer of FUSA or (e) is prepared, conceived or discovered by Xcorporeal or Key
Personnel or their representatives subsequent to the Termination
Date.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    (4)           Upon
termination of the Engagement or at any other time upon request by FUSA,
Xcorporeal shall promptly deliver to FUSA all records, files, memoranda, notes,
designs, data, reports, price lists, customer lists, drawings, plans, computer
programs, software, software documentation, sketches, laboratory and research
notebooks and other documents (and all copies or reproductions of such
materials) relating to the business of FUSA.

     

    (5)           Xcorporeal
represents that its retention as a consultant for FUSA and its performance of
the Engagement does not, and shall not, breach any agreement that obligates
Xcorporeal to keep in confidence any trade secrets or confidential or
proprietary information of Xcorporeal or of any other party or to refrain from
competing, directly or indirectly, with the business of any other party or
otherwise conflict with any of Xcorporeal’s agreements or obligations to any
other party.  Xcorporeal shall not disclose to FUSA any trade secrets
or confidential or proprietary information of any other party.

     

    (6)           Xcorporeal
acknowledges that FUSA from time to time may have agreements with other persons
or with the United States Government, or agencies thereof, that impose
obligations or restrictions on FUSA regarding inventions made during the course
of work under such agreements or regarding the confidential nature of such
work.  Xcorporeal agrees to be bound by all such obligations and
restrictions that are known to Xcorporeal and to take all action reasonably
necessary to discharge the obligations of FUSA under such agreements to the
extent such obligations relate to Xcorporeal.

     

    (iii)     Remedies.  Xcorporeal
acknowledges that any breach of the provisions of this Section 2(f) shall result
in serious and irreparable injury to FUSA for which FUSA cannot be adequately
compensated by monetary damages alone.  Xcorporeal agrees, therefore,
that, in addition to any other remedy it may have, FUSA shall be entitled to
enforce the specific performance of Section 2 by Xcorporeal and to seek both
temporary and permanent injunctive relief (to the extent permitted by law)
without the necessity of proving actual damages.

     

    (g)      Non-Competition.  Subject
to the consummation of the transactions contemplated under the Asset Purchase
Agreement, Xcorporeal agrees that during the Term and for two (2) years
immediately thereafter, Xcorporeal will not directly or indirectly for its own
benefit or the benefit of others:

     

    (i)       render
services for a competing organization, as an employee, officer, agent, broker,
partner, or stockholder (except that Xcorporeal may own five percent (5%) or
less of the equity securities of any publicly-traded company);

     

    (ii)       hire
or seek to persuade any employee of FUSA or any of its affiliates to discontinue
employment or to become employed in any a competing organization or seek to
persuade any independent contractor or supplier to discontinue its relationship
with FUSA or any of its affiliates; and

     

    (iii)      solicit,
direct, take away or attempt to take away any business or customers of FUSA or
any of its affiliates.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    Nothing
in this Agreement shall preclude Xcorporeal or any Key Personnel from working
for a competitor of FUSA or its affiliates after termination of the Engagement,
provided that, subject
to the consummation of the transactions contemplated under the Asset Purchase
Agreement,  Xcorporeal will not be engaged, directly or indirectly, in
any business in which FUSA or its affiliates are actively engaged upon
termination of the Engagement or in any new business which FUSA or its affiliate
are in the process of setting up and in which Xcorporeal had direct involvement
during the Term.

     

    (h)         Other
Agreements.  Xcorporeal hereby represents that Xcorporeal is
not bound by the terms of any agreement with any other party to refrain from
using or disclosing any trade secret or confidential or proprietary information
relating to the Proprietary Information in the course of Xcorporeal’s
relationship with FUSA, to refrain from competing, directly or indirectly, with
the business of such other party or to refrain from soliciting employees,
customers or suppliers of such other party.  Xcorporeal agrees to
furnish FUSA with a copy of any such agreement upon request.

     

    (i)         Independent Contractor
Status.  Xcorporeal shall perform all consulting services under
Section 2 as an “independent contractor” and not as an employee or agent of
FUSA.  Xcorporeal is not authorized to assume or create any obligation
or responsibility, express or implied, on behalf of, or in the name of, FUSA or
to bind FUSA in any manner.

     

    3.           Development
Expenses.  Xcorporeal acknowledges and agrees that in the event
the Closing does not take place as a result of Xcorporeal consummating a
Superior Proposal, Xcorporeal shall reimburse FUSA for the following expenses,
to the extent such (other than (d) and (e) below) are reasonably incurred on
Xcorporeal’s behalf for the benefit of Xcorporeal, concurrently with the
consummation of such Superior Proposal:

     

    (a)         Tooling;

     

    (b)         Prototyping;

     

    (c)         IP
Maintenance;

     

    (d)         All
reasonably documented third party expenses incurred by FUSA in negotiating and
documenting the transactions contemplated by the Asset Purchase Agreement and
this Agreement, including reasonable attorneys’ fees and expenses;

     

    (e)         Consulting
fees; and

     

    (f)         Miscellaneous
consulting expenses, i.e. travel.

     

    4.           Notices.  All
notices required or permitted under this Agreement shall be in writing and shall
be provided as set forth in the Asset Purchase Agreement.

     

    5.           Entire
Agreement.  This Agreement (together with the Asset Purchase
Agreement, the schedules and exhibits thereto and other documents and agreements
delivered pursuant to the Asset Purchase Agreement, to the extent referred to
herein) constitutes the entire agreement between the parties and supersedes all
prior agreements and understandings, whether written or oral, relating to the
subject matter of this Agreement.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    6.           Amendment.  This
Agreement may be amended or modified only by a written instrument executed by
both FUSA and Xcorporeal.

     

    7.           Governing
Law.  This Agreement shall be construed, interpreted and
enforced in accordance with the laws of the State of Delaware without regard to
its principles or conflicts of laws.

     

    8.           Successors and
Assigns.  This Agreement shall be binding upon, and inure to
the benefit of, both parties and their respective successors and assigns,
including any corporation with which, or into which, FUSA may be merged or which
may succeed to its assets or business, provided, however, that subject to the
last sentence of this Section 8, the obligations of Xcorporeal are personal and
may not be assigned. Xcorporeal may assign its respective rights and obligations
hereunder, including under any agreements contemplated by this Agreement, to a
liquidating trust established for the benefit of Xcorporeal’s stockholders (the
“Xcorporeal Trust”) and
the Xcorporeal Trust may assign any or all of it respective rights and
obligations hereunder to any purchaser of a part or all of such trust’s rights,
assets and/or obligations, without the prior written consent of any other
party.

     

    9.           Interpretation.  If
any restriction set forth in Section 9 is found by any court of competent
jurisdiction to be unenforceable because it extends for too long a period of
time or over too great a range of activities or in too broad a geographic area,
it shall be interpreted to extend only over the maximum period of time, range of
activities or geographic area as to which it may be enforceable.

     

    10.         Miscellaneous.

     

    (a)         No
delay or omission by FUSA or Xcorporeal in exercising any right under this
Agreement shall operate as a waiver of that or any other right.  A
waiver or consent given by FUSA or Xcorporeal on any one occasion shall be
effective only in that instance and shall not be construed as a bar or waiver of
any right on any other occasion.

     

    (b)         The
captions of the sections of this Agreement are for convenience of reference only
and in no way define, limit or affect the scope or substance of any section of
this Agreement.

     

    (c)         In
the event that any provision of this Agreement shall be invalid, illegal or
otherwise unenforceable, the validity, legality and enforceability of the
remaining provisions shall in no way be affected or impaired
thereby.

     

    (d)         This
Agreement may be executed in two or more counterparts, and by the different
parties hereto in separate counterparts, each of which when executed shall be
deemed to be an original but all of which taken together shall constitute one
and the same agreement.

     

    [Remainder
of Page Intentionally Left Blank]

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day
and year set forth above.

     

    
      
        	
                FRESENIUS
      USA, INC.

              
	 
      
	
                By: 

              	
                /s/ Mohsen
      Reihany

              
	
                Name:
      Mohsen Reihany

              
	
                Title:
      Senior Advisor To Chairman of The Board

              
	 
      
	
                XCORPOREAL,
      INC.

              
	 
      
	
                By:

              	
                /s/ Kelly J.
      McCrann

              
	
                Name:
      Kelly J. McCrann

              
	
                Title:  
      Chief Executive Officer

              

      

    

    
      
         

      

      
        8JOINT VENTURE
AGREEMENT

    

     

    This
joint venture agreement (“Agreement”) is made and
entered into effective 19 October 2009 (the “Effective Date”) in Carson
City, Nevada by and between TRINITY ALPS RESOURCES, INC., a Nevada domestic
corporation, c/o Rutledge Law Center Ltd., 318 North Carson Street, Suite 103,
Carson City, Nevada 89701 (“Trinity Alps”), and AMERICAN
SIERRA GOLD CORP., a Nevada domestic corporation, c/o Nevada Agency and Transfer
Company, 50 West Liberty Street, Suite 880, Reno, Nevada 89501 (“American
Sierra”).   Trinity Alps and American Sierra are the only
parties to this Agreement and are at times referred to herein singly as a “Party” and collectively as the
“Parties.”

    

    RECITALS

    

    
      	
               
      

            	
              A.

            	
              Trinity
      Alps owns the mining claims more-precisely described in this Agreement’s
      Exhibit A
      (the “Claims”).

            

    

    
      	
               
      

            	
              B.

            	
              American
      Sierra desires to develop the mine underlying the Claims (the “Mine”) with the intent
      to ultimately own and control an undivided interest in the Claims of as
      much as 75%.

            

    

    
      	
               
      

            	
              C.

            	
              Trinity
      Alps is willing to allow American Sierra to purchase an interest in the
      Claims as provided for herein.

            

    

    

    In
consideration of this Agreement’s covenants and undertakings, and for other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parties agree as follows:

    

    1.           CONSIDERATION.

    

    1.1           Signing Fee.  Within
two (2) business days after the later of the two Parties executes this
Agreement, American Sierra shall pay Trinity Alps twenty five thousand dollars
($25,000 USD) in immediately-available funds (“Signing Fee”).  The
Signing Fee is non-refundable, non-contingent, and is due in addition to the one
hundred thousand dollars ($100,000 USD) paid by American Sierra to Trinity Alps
prior hereto to acquire the exclusive option provided for in the Parties’
earlier letter agreement (the “LOI Option Fee”), and all
other amounts due to Trinity Alps from American Sierra hereunder.  The
Signing Fee and the LOI Option Fee, together totaling one hundred twenty five
thousand dollars ($125,000 USD), shall be credited toward the $2,000,000
contribution requirement provided for below in Section 1.4.3 for the 75%
Ownership Option set forth in Section 2 hereof.

    

    1.2           Stock.  In addition
to the Signing Fee and all other payments contemplated and/or provided for
herein, as a condition to Closing, American Sierra shall, for the adequate
consideration recited herein and hereby acknowledged as received by American
Sierra hereunder, irrevocably assign to Trinity Alps two million shares
(2,000,000) of authorized common stock in American Sierra (“Stock”) in such name(s) as
then-designated by Trinity Alps.  American Sierra shall, at and as
part of Closing, deliver the Stock to the Trust Account Administrator for
forwarding and delivery to Trinity Alps’ or its designee, assignee or successor
as follows:

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    
      
        	 	1.2.1 	500,000
      shares of the Stock on 15 January 2010;
	 	 	 
	 	1.2.2	500,000
      shares of the Stock exactly six (6) months after Closing;
	 	 	 
	
                 
      

              	
                1.2.3

              	
                500,000
      shares of the Stock exactly nine (9) months after Closing;
    and

              

      

    

    

    
      	
               
      

            	
              1.2.4

            	
              500,000
      shares of the Stock exactly twelve (12) months after
    Closing.

            

    

    

    Trinity
Alps’ rights, title and interest in and to the Stock fully vest as irrevocable
at Closing and remain as such despite any post-Closing breach or default by
American Sierra; provided, however, that any resale of Trinity Alps’ Stock shall
be restricted to the extent required by the Securities Act of 1933, as amended
(the “Securities Act”)
and shall, to the extent required by the Securities Act and regulations
promulgated thereunder, bear a legend detailing said resale
restrictions.  The foregoing notwithstanding, upon Trinity Alps’
request, American Sierra shall promptly remove such restrictive legend and
reissue said Stock to Trinity Alps on legend-free certificates at such time as
the time-based sale restrictions have lapsed and all other requirements of Rule
144, as promulgated under the Securities Act, as may be applicable, have been
met.  To the maximum extent permitted by law, including applicable
federal and state securities and blue sky regulations, the holding period
underlying said resale restriction shall begin upon issuance of the Stock at
Closing, as delivered to the Trust Account Administrator hereunder.

    

    1.3           Warrants.  In
addition to the Signing Fee, the Stock, and all other payments contemplated
and/or provided for herein, as a condition to Closing, American Sierra shall
irrevocably and in writing give to Trinity Alps warrants to purchase two million
(2,000,000) shares of already-approved-and-issued-but-not-outstanding common
stock in American Sierra at any time within five (5) years from Closing at one
dollar and twenty five cents ($1.25) per share (“Warrants”).  The
Warrants shall be issued by American Sierra to Trinity Alps in such name(s) as
then-designated by Trinity Alps.  Although Trinity Alps’ rights, title
and interest in and to the Warrants fully vest as irrevocable at Closing, and
remain as such despite any post-Closing breach or default by American Sierra,
the Warrants shall be issued and delivered at and as part of Closing to the
Trust Account Administrator for forwarding and delivery to Trinity Alps’ or its
designee, assignee or successor as follows:

    

    
      	
               
      

            	
              1.3.1

            	
              500,000
      of the Warrants on 15 January 2010;

            

    

    

    
      	
               
      

            	
              1.3.2

            	
              500,000
      of the Warrants exactly six (6) months after
  Closing;

            

    

    

    
      	
               
      

            	
              1.3.3

            	
              500,000
      of the Warrants exactly nine (9) months after Closing;
  and

            

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              1.3.4

            	
              500,000
      of the Warrants exactly twelve (12) months after
  Closing.

            

    

    

    Trinity
Alps’ sale of the Warrants and/or the securities issued upon exercise of the
Warrants will be restricted to the extent required by the Securities Act and
shall, to the extent required by the Securities Act and regulations promulgated
thereunder, and shall bear a legend detailing said resale
restrictions.  The foregoing notwithstanding, upon Trinity Alps’
request, American Sierra shall promptly remove such restrictive legends and
reissue said Warrants and securities issued upon the exercise of the Warrants to
Trinity Alps in legend-free form at such time as the time-based sale
restrictions have lapsed and all other requirements of Rule 144, as promulgated
under the Securities Act, as may be applicable, have been met.  To the
maximum extent permitted by law, including applicable federal and state
securities and blue sky regulations, the holding period underlying said resale
restriction, assuming the cashless exercise of the Warrants in the case of the
securities underlying the Warrants, shall begin upon issuance of the Warrants at
Closing, as delivered to the Trust Account Administrator hereunder.

    

    1.4           American
Sierra must pay the following consideration to exercise the 75% Ownership Option
provided for in Section 2 below:

    

    
      	
               
      

            	
              1.4.1

            	
              At
      and as part of Closing, American Sierra must pay one hundred fifty
      thousand dollars ($150,000 USD) in immediately-available funds (the “Closing Payment”) into
      the Trust Account (as defined herein).  Another one hundred
      fifty thousand dollars ($150,000 USD) in immediately-available funds must
      be paid into the Trust Account within three (3) months after
      Closing.  Collectively, the Closing Payment and the second
      $150,000 payment are hereby defined in aggregate as the “First Semester
      Payment”.  Any funds paid into the Trust Account during
      the six (6) months following Closing that exceed the First Semester
      Payment shall be credited toward the $2,000,000.00 contemplated in Section
      1.4.3 below (but not toward the Second Semester Payment (as defined
      below)).  The Trust Account Administrator shall only release
      funds from the First Semester Payment to the Operating Entity or Holding
      Company, as the case may be, upon presentment of an invoice for an
      expenditure provided for in the approved year one work plan attached
      hereto as Exhibit B (the
      “Year One Work
      Plan”).  The Year One Work Plan will include, but not be
      limited to, all costs and expenses relating to and/or resulting from the
      Claims and/or the Mine’s development and/or operation, including taxes,
      Bureau of Land Management fees and costs, insurance, Claims-related fees,
      security and other deposits, reclamation and/or performance bonds,
      employee and/or contractor salaries, costs of forming and maintaining the
      Operating Entity, Holding Company, and other statutory business entities
      formed hereunder, plus all attorneys’, legal and accounting fees related
      to the negotiation, adoption and implementation of the Year One Work
      Plan.  The Year One Work Plan shall not be modified or in any
      way altered or deviated from without the express, written consent of both
      Parties.

            

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              1.4.2

            	
              No
      more than 6 months after Closing, American Sierra must pay an additional
      three hundred thousand dollars ($300,000.00 USD) in immediately-available
      funds into the Trust Account (the “Second Semester
      Payment”).  Any funds paid into the Trust Account in
      excess of the Second Semester Payment shall be credited toward the
      $2,000,000.00 contemplated in Section 1.4.3 below.  The Trust
      Account Administrator shall only release funds from the Second Semester
      Payment to the Operating Entity or Holding Company, as the case may be,
      upon presentment of an invoice for an expenditure provided for in the Year
      One Work Plan or Year Two Work Plan (as defined
  below).

            

    

    
      	
               
      

            	
              1.4.3

            	
              In
      the two (2) years immediately following Closing, American Sierra must pay
      $2,000,000.00 USD into the Trust Account for release by the Trust Account
      Administrator upon presentment of an invoice for expenditures provided for
      in the Year One Work Plan and/or the year-two work plan to be prepared and
      approved by Trinity Alps and American Sierra for the Operating Entity and
      submitted to the Trust Account Administrator within ten (10) months from
      Closing (the “Year Two
      Work Plan”).    The Year Two Work Plan will
      include, but not be limited to, all costs and expenses relating to and/or
      resulting from the Claims and/or the Mine’s development and/or operation,
      including taxes, Bureau of Land Management fees and costs, insurance,
      Claims-related fees, security and other deposits, reclamation and/or
      performance bonds, employee and/or contractor salaries, costs of
      maintaining the Operating Entity, Holding Company, and any other statutory
      business entities formed hereunder, plus all attorneys’, legal and
      accounting fees related to the negotiation, adoption and implementation of
      the Year One Work Plan.  This $2,000,000.00 USD contribution
      requirement includes all amounts paid to Trinity Alps or paid into the
      Trust Account under Sections 1.1, 1.4.1, 1.4.2, 1.7 and/or
      9.  The Year Two Work Plan shall not be modified or in any way
      altered or deviated from without the express, written consent of both
      Parties.

            

    

    

    1.5           Trinity
Alps may, in its sole discretion, but need not, pay one or more of the costs
and/or expenses included in the Year One Work Plan and/or Year Two Work Plan
(the “Operating Costs”),
but any and every such payment shall only be an advance on the Operating
Entity’s behalf — and Trinity Alps shall be reimbursed therefor within ten (10)
business days after delivery to the Operating Entity of every such
invoice.  The amount of every such invoice for which Trinity Alps is
not fully-reimbursed within the mandated 10-day period shall automatically and
immediately increase by a late fee equal to ten percent (10%)
thereof.  Additionally, that aggregated amount shall further increase
by three percent (3%) for each month or portion thereof that Trinity Alps
remains unreimbursed for the entire amount then-due.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

     1.6           At
Closing, every cost and/or expense related to the Claims and/or the Mine that
was paid by Trinity Alps for a benefit that lasts past 19 August 2009 shall be
reimbursed to Trinity Alps by American Sierra on a pro-rated
basis.  Additionally, every cost and/or expense related to the Claims
and/or the Mine that was paid by Trinity Alps on or after 19 August 2009 but
prior to Closing shall, at Closing, be reimbursed to Trinity Alps by American
Sierra.  After Closing and during the Term, every cost and/or expense
related to the Claims and/or the Mine that, after Closing, accrues and/or is
received by Trinity Alps or the Operating Entity or Holding Company, shall be
promptly paid by the Trust Account Administrator from funds paid into the Trust
Account hereunder.  All such costs and expenses are itemized on the
attached Exhibit
D and shall be credited toward the First Semester Payment.

    

    1.7           Trinity
Alps shall, prior to Closing, form the Operating Entity and Holding Company, and
purchase company record books for same, with the costs of the foregoing being
promptly reimbursed by American Sierra (such reimbursement amount expressly
including the attorneys’, legal, filing, formation and accounting fees incident
to the foregoing).  All other costs related to the Claims and/or the
Mines shall be due from and paid by American Sierra through the Operating Entity
or, to the extent such expenses are related to the Claims and/or the Mines but
do not concern the Mine’s operating, through the Holding Entity, as part of the
Year One Work Plan, Year Two Work Plan, and/or such other work plan as may
hereafter be approved by the Parties and submitted to the Trust Account
Administrator for administration hereunder, respectively (collectively, the
“Plans”), with said
expenditures credited toward American Sierra’s $2,000,000.00 USD contribution
requirement under Section 1.4 above.

    

    2.           75% OWNERSHIP
OPTION.  So long as American Sierra: has paid the $2,000,000
within two (2) years from Closing, with such funds hereby irrevocably designated
and committed for expenditure under the Year One Work Plan, Year Two Work Plan,
and/or such other work plans as may be hereafter approved by both Parties in
writing, and as otherwise provided for in Section 1.4.3 above; has not failed to
cure a breach hereof or default hereunder within forty five (45) calendar days’
notice thereof; and is not then in breach of or default hereunder (each a “Condition Precedent”), then
“Vesting” will have
automatically occurred and the Holding Company and Operating Entity shall each
promptly thereafter issue American Sierra an equity interest in the Holding
Company and Operating Entity, respectively, equal to a 75% ownership interest
therein (“75% Ownership
Option”).

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    3.           INTERMEDIATE AND IMMEDIATE OWNERSHIP
INTEREST.  In exchange for the Signing Fee, the LOI Option Fee,
and the Closing Payment, American Sierra shall as part of Closing receive a
seven percent (7%) founding-member membership interest in the Operating Entity
and Holding Company (“Immediate
Ownership Interest”) with Trinity Alps holding all other founding-member
membership interest in said statutory business entities.  Thereafter
and until American Sierra satisfies every Condition Precedent detailed above in
Section 2 (and therefore deemed to have exercised the 75% Ownership Option),
American Sierra’s ownership interest in the Operating Entity and Holding Company
shall increase by one percentage point (1%) for each additional forty thousand
dollars ($40,000 USD) paid into the Trust Account hereunder for expenditure
under the Year One Work Plan, Year Two Work Plan, or such other work plan as may
hereafter be approved by the Parties — with such membership units being issued
in certificate form and dispatched by the Operating Entity and Holding Company
within thirty (30) calendar days after the end of the calendar quarter in which
the Trust Administrator releases each such $40,000-block of funds for
expenditure under the Year One Work Plan, Year Two Work Plan, or such other work
plan as may hereafter be approved by the Parties and submitted to Escrow Holder
for administration hereunder (“Intermediate Ownership
Interest”).  To the extent the Operating Entity and/or Holding
Company is not controlled by American Sierra pursuant to the Voting Agreement
attached hereto as Exhibit C, the
Operating Entity’s and/or Holding Company’s failure to issue said membership
units as the case may be, shall constitute a material breach hereof and default
hereunder — subject to a ten (10) business day cure period.  The
foregoing notwithstanding, and subject only to exercise of its 75% Ownership
Option, American Sierra’s Intermediate Ownership Interest shall not hereunder
exceed a forty percent (40%) ownership interest in either the Holding Company or
Operating Entity.

    

    4.           DEAL STRUCTURE.

    

    4.1           Operating
Entity.  Prior to Closing, the Parties will agree upon at least
two acceptable entity names and Trinity Alps shall select a name from those two
names and shall form a California domestic limited-liability company to act as
the Mine’s operator (“Operating
Entity”).  Initially, the Operating Entity shall be seven
percent (7%) owned by American Sierra and ninety three percent (93%) owned by
Trinity Alps; however, the Operating Entity shall issue membership units to
American Sierra as provided for in Section 3 above in contemplation of American
Sierra’s exercise of the 75% Ownership Option or the resulting Intermediate
Ownership Interest.  Before the Operating Entity is formed and, in any
event, prior to Closing, the Operating Entity’s operating agreement, and the
contemplated post-formation minutes and/or actions by unanimous written consent
must be approved by the Parties in writing.

    

    4.2           Holding
Company.  Prior to Closing, the Parties will agree upon at
least two acceptable entity names and Trinity Alps shall select a name from
those two names and shall form a California domestic limited-liability company
to receive and own the Claims (“Holding
Company”).  Initially, the Holding Company shall be seven
percent (7%) owned by American Sierra and ninety three percent (93%) owned by
Trinity Alps; however, the Holding Company shall issue membership units to
American Sierra as provided for in Section 3 above in contemplation of American
Sierra’s exercise of the 75% Ownership Option or the resulting Intermediate
Ownership Interest.  After the Holding Company is formed and after the
Holding Company’s operating agreement, and post-formation minutes and/or actions
by unanimous written consent are formally approved and adopted (all of which
must be previously approved in writing by the Parties and completed prior to
Closing), Trinity Alps shall promptly transfer the Claims to the Holding Company
by quitclaim deed.  Thereafter, the Holding Company shall promptly
issue unit certificates to its members — with American Sierra receiving one or
more certificates that, in aggregate, represent a one percent (1%) ownership and
equity interest in the Holding Company for each $40,000 USD expended (as
provided for above in Section 3).  In recognition of monies paid
hereunder at and/or prior to Closing, Trinity Alps hereby recognizes and
acknowledges that American Sierra shall, at the Holding Company’s formation, own
a seven percent (7%) ownership and equity interest in the Holding
Company.  This process will repeat with each $40,000 USD-expenditure
from the Trust Account — until American Sierra’s ownership and equity interest
in the Holding Company is accurate (subject to the 40% equity cap set forth in
Section 3).

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

    4.3           Operating
Agreements.  The Parties shall agree upon and execute an
operating agreement for each of the Holding Company and Operating Entity prior
to Closing and prior to transfer of the Claims into the Holding
Company.

    

    4.4           Management
Control.  By way of the voting agreement attached as Exhibit C (“Voting Agreement”), American
Sierra shall, from the date of Closing until the Voting Agreement’s expiration,
enjoy the exclusive, unfettered and unobstructed right to vote all of Trinity
Alps’ membership units in the Operating Entity and Holding Company (such that
American Sierra shall enjoy full management control of the Operating Entity and
Holding Company).  The foregoing notwithstanding, Trinity Alps must
approve and consent to the contemplated articles of organization and an
operating agreement for the Operating Entity and Holding Company, respectively,
prior to the filing and/or adoption of same, respectively.

    

    4.5           American Sierra Board of Directors
Seats.  From the Effective Date until termination of this
Agreement or the Term’s end, as applicable, Trinity Alps shall appoint one third
(1/3) of the directors on American’s Sierra’s Board of Directors (the “Board”), to the maximum extent
permitted by Nevada law and American Sierra’s articles of
incorporation.  To the extent that this power of appointment displaces
certain existing directors from their seats, American Sierra may increase the
number of Board seats to avoid such displacement.  However, in no
event shall Trinity Alps’ appointees occupy less than one third of all such
seats / directorships.

    

    Notwithstanding
the foregoing, at the Term’s end, Trinity Alps shall thereafter, on a
going-forward basis, only have the right to appoint one fifth (1/5) of the
directors on the Board.  To the extent that this power of appointment
displaces certain existing directors from their seats, American Sierra may
increase the number of Board seats to avoid such
displacement.  However, in no event shall Trinity Alps’ appointees
occupy less than one fifth of all such seats / directorships.

    

    Upon
termination hereof by either Party, Trinity Alps shall thereafter no longer have
the right to appoint any directors to the Board.

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    5.           ESCROW TRUST ACCOUNT;
CLOSING.

    

    5.1           Trust
Account.  Within three (3) business days from the Effective
Date, Trinity Alps shall open an escrow account (“Trust Account”) with an
attorney-at-law or other trust account administrator to be selected by American
Sierra after the Effective Date and approved by Trinity Alps in its sole but
reasonable discretion prior to Closing (“Trust Account
Administrator”).  The Trust Account Administrator shall
establish and administer the Trust Account according to this Agreement’s terms
and conditions (the “Escrow
Instructions”).  The cost of the Trust Account and its
administration, including Trust Account Administrator’s fees, shall be paid for
by American Sierra and credited toward the contemplated $2,000,000 contribution
described above in Section 1.4.

    

    5.2           Closing.  “Closing” means consummation of
the underlying transaction as memorialized herein, including, but not limited
to, the complete satisfaction of all Closing conditions set forth herein and the
timely and complete performance of all Closing obligations.  Closing
must occur on or before 23 October 2009 (unless hereafter extended by the
Parties by signed, written amendment hereof).  Despite the fact that
time is of the essence, Closing shall only occur, if ever, after both Parties
are satisfied in their respective, sole and absolute determinations that, among
other things: all regulatory approvals required to consummate the Agreement’s
underlying transaction are obtainable; both Party’s boards of directors have
approved in a satisfactory manner the Agreement’s underlying transactions; all
required third-party consents have been received and/or are readily obtainable;
all due diligence investigations by a Party of the other Party and/or otherwise
concerning the contemplated transaction are acceptable to the investigating
Party; and all representations and warranties or other promises or guarantees
made by the other Party are complete and accurate as of Closing.

    

    6.           YEAR ONE WORK PLAN; YEAR TWO WORK
PLAN.

    

    6.1           Year One Work
Plan.  A plan for the Mine’s operation, exploration and
development for the twelve (12) months immediately following Closing is attached
hereto as Exhibit
B.  As noted above, that plan has been defined herein as the
Year One Work Plan.

    The
Parties have each reviewed and approved the Year One Work Plan, and hereby so
direct the Trust Account Administrator to abide by and honor same.

    

    6.2           Year Two Work
Plan.  A plan for the Mine’s operation, exploration and
development for the thirteenth (13th)
through twenty fourth (24th) months
following Closing (already defined herein as the Year Two Work Plan) shall be
prepared by the Operating Company and submitted to American Sierra and Trinity
Alps for approval within ten (10) months from Closing.  Neither
American Sierra nor Trinity Alps shall unreasonably withhold its approval of and
consent to the Year Two Work Plan, and no such refusal to approve of and consent
to same shall be lodged without an itemized, detail explanation and a suggested,
alternative Year Two Work Plan for consideration.

    

    7.           TERM & TERMINATION.  This Agreement
begins on the Effective Date and automatically and immediately expires three (3)
years thereafter (the “Term”).  This
Agreement may be terminated prior to the end of the Term by mutual written
consent of the Parties or by either Party if the other Party does not timely and
fully cure a material breach hereof or default hereunder as provided for
herein.

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    

    Specifically,
if a material breach hereof or default hereunder by either Party is not cured
within forty five (45) calendar days after the breaching or defaulting Party is
notified of same, the non-breaching and/or non-defaulting Party may, in its sole
and arbitrary discretion, immediately terminate this Agreement and retain any
money already paid hereunder.  After such termination, all
then-prospective, then-executory obligations hereunder shall be null and void
(except as otherwise expressly provided for herein).  Despite anything
to the contrary herein, however, so long as Trinity Alps has fully and timely
cured any breach hereof or default hereunder, Trinity Alps shall nevertheless
receive and irrevocably and permanently retain the Signing Fee, the LOI Option
Fee, and all Stock and Warrants, regardless of any expiration or termination
hereof.

    

    8.           REPRESENTATIONS,
WARRANTIES AND COVENANTS.

    

    8.1           By Trinity Alps.  On
the Effective Date and as of Closing, Trinity Alps hereby represents, warrants
and covenants to American Sierra that, except as was already disclosed to
American Sierra in the title report and/or via overnight mail on Thursday, 2
July 2009 or otherwise, all of which are attached hereto as Exhibit
E:

    

    
      	
               
      

            	
              8.1.1

            	
              its
      entry into this Agreement does not violate any agreement with, or rights
      of, any other party;

            

    

    
      	
               
      

            	
              8.1.2

            	
              it
      shall honor and timely, properly and completely fulfill every obligation
      imposed upon it herein;

            

    

    
      	
               
      

            	
              8.1.3

            	
              it
      holds any and all rights necessary to perform its obligations under this
      Agreement; and

            

    

    
      	
               
      

            	
              8.1.4

            	
              with
      respect to Claims, and subject to the paramount title of the United
      States, to the best of Trinity Alps’ knowledge: (i) the Claims were
      properly laid out and monumented; (ii) all required location and
      validation work was properly performed; (iii) location notices and
      certificates were properly recorded and filed with appropriate
      governmental agencies; (iv) all assessment work required to hold the
      unpatented mining claims has been performed and all governmental fees have
      been paid as necessary to maintain the Claims through the assessment year
      ending September 1, 2010; (v) all affidavits of assessment work,
      evidence of payment of governmental fees, and other filings required to
      maintain the claims in good standing have been properly and timely
      recorded or filed with appropriate governmental agencies; (vi) the
      claims are free and clear of encumbrances or defects in title; (vii) the
      conditions existing on or with respect to the Claims and its ownership and
      operation of the Claims are not in violation of any laws (including
      without limitation applicable environmental laws) nor causing or
      permitting any damage (including Environmental Damage, as defined below)
      nor are they the subject of any pending or threatened litigation; (viii)
      there have been no past violations by it or by any of its predecessors in
      title of any environmental laws or other laws continuing to affect the
      Claims, nor any past creation of damage or threatened damage to the air,
      soil, surface waters, groundwater, flora, fauna, or other natural
      resources on, about or in the general vicinity of the Claims
      (“Environmental Damage”); and (ix) there are no directly conflicting
      mining claims.  Nothing in this subsection, however, shall be
      deemed to be a representation or a warranty that any of the unpatented
      mining claims contains a valuable mineral
  deposit.

            

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    

    8.2           By American
Sierra.  American Sierra hereby represents, warrants and
covenants to Trinity Alps that, on the Effective Date and as of
Closing:

    

    
      	
               
      

            	
              8.2.1

            	
              its
      entry into this Agreement does not violate any agreement with, or rights
      of, any other party;

            

    

    
      	
               
      

            	
              8.2.2

            	
              it
      shall honor and timely, properly and completely fulfill every obligation
      imposed upon it herein; and

            

    

    
      	
               
      

            	
              8.2.3

            	
              it
      holds any and all rights necessary to perform its obligations under this
      Agreement.

            

    

    
      	
               
      

            	
              8.2.4

            	
              Trinity
      Alps shall enjoy the unfettered right to participate in each and every
      future offering of shares, regardless of class, in American
      Sierra.

            

    

    
      	
               
      

            	
              8.2.5

            	
              If
      Trinity Alps’ equity stake in American Sierra is to be diluted by twenty
      percent (20%) or more because of any stock issuance or aggregation of
      stock issuances by American Sierra, then, in addition to all other rights
      and remedies afforded Trinity Alps hereunder, American Sierra shall,
      free-of-charge and at Trinity Alps’ discretion and direction, immediately
      issue Trinity Alps an additional five hundred thousand (500,000) shares of
      Stock and an additional five hundred thousand (500,000)
      Warrants.

            

    

    
      	
               
      

            	
              8.2.6

            	
              it
      has and, at Closing, will have, only one (1) class of stock;
      and

            

    

    
      	
               
      

            	
              8.2.7

            	
              it
      is a “reporting issuer” with the United States Securities and Exchange
      Commission.

            

    

    

    8.3           Nothing
More.  Neither Party makes any representation, warranty,
covenant or guarantee to the other Party not expressly set forth
herein.

    

    9.           FAGEN
RETENTION.  American Sierra shall, prior to Closing, enter into
a written independent contractor agreement with Patrick A. Fagen, whereby, for
one (1) year from Closing, American Sierra shall pay him on a monthly basis and
in advance $7,500 per month to lead operation of the Mine.  This
agreement shall automatically renew and extend for an additional one-year term,
also at $7,500 per month, unless Mr. Fagen receives a written “notice of
non-renewal” no less than forty five (45) days’ prior to the initial, one-year
term’s expiration.  The foregoing notwithstanding, the independent
contractor agreement shall have a 30-day termination-for-cause
provision.  All money paid to Patrick A. Fagen under such independent
contractor agreement shall be credited toward the contemplated $2,000,000
contribution described above in Section 1.4.3.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    

    The Parties hereby recognize that this
requirement has been requested by Trinity Alps with the intention that Mr.
Fagen’s expressly contracted involvement establishes a continuity of operations
and therefore benefits both Parties.

    

    10.           DOCUMENT PREPARATION
COSTS.  Although the Parties each recognize and acknowledge
that this Agreement was prepared by Trinity Alps’ legal counsel for Trinity
Alps’ sole benefit, American Sierra has been represented by legal counsel
through this entire matter’s history, and this Agreement is therefore the result
of the arms length negotiation of two sophisticated, represented
parties.  Accordingly, this Agreement shall be construed fairly with
no inference drawn against the drafting Party — and American Sierra shall, at
and as part of Closing, reimburse Trinity Alps for fifty percent (50%) of
the  amount due from Trinity Alps to its legal counsel, Rutledge Law
Center Ltd., to negotiate, draft and revise this Agreement.  Money
reimbursed under this Section 10 shall not be credited toward the contemplated
$2,000,000 contribution described above in Section 1.4.3.

    

    11.           ARBITRATION.  With
the exception of equitable relief granted under Section 12.9 hereof, all claims,
disputes and other matters in question arising out of or relating to this
Agreement or the breach or interpretation thereof, will be resolved by binding
arbitration before a sole arbitrator, selected by the mutual agreement of the
Parties, to be conducted in Carson City, Nevada.  The arbitration will
be administered by the American Arbitration Association under its Commercial
Arbitration Rules.  Any award or decision obtained from any such
arbitration proceeding will be final and binding on the Parties, and judgment
upon any award thus obtained may be entered in any court having jurisdiction
thereof.  As provided for in the introductory clause to this Section
11, nothing herein contained will bar the right of a Party to seek to obtain
judicial injunctive relief or other judicial provisional remedies against
threatened or actual conduct that will cause loss or damages under the usual
equity rules, including the applicable rules for obtaining preliminary
injunctions and other provisional remedies.

    

    12.           GENERAL
PROVISIONS

     

    12.1           Miscellaneous.  The
exhibits referenced in this Agreement are hereby incorporated herein as though
expressly set forth.  When used herein, the terms defined when
initially capitalized have the ascribed meanings.  This Agreement may
be executed in counterparts, with each deemed an original but all constituting
one instrument.  Facsimile and photocopied signatures bind the
Parties.  Either Party’s nonperformance shall be excused to the extent
rendered impossible by: strike; fire; flood; governmental acts, orders or
restrictions; and/or any other similar reason where failure to perform is beyond
the control and not caused intentionally or negligently by the nonperforming
Party.  No Party is an agent or partner with the other, and no Party
has the authority to assume or create any obligation for or on behalf of the
other.  This Agreement’s title and headings are for reference only and
do not define or limit this Agreement’s scope.  All decisions to be
made by a Party hereunder shall be at such Party’s sole and arbitrary
discretion, except as otherwise provided for herein.  Any provision
herein that may reasonably be interpreted as being intended to survive this
Agreement’s termination or expiration shall do so.  All payments
required herein are due in United States Dollars from an immediately available
source.  This Agreement’s time periods shall be computed by excluding
the first day and including the last.  Except if otherwise
specifically noted, time is of the essence and all periods referencing days
shall be measured by calendar days, and, if the last day in a given period falls
on a weekend or legal holiday, then the last day thereof shall be the next
business day thereafter. Except as may otherwise be specified herein, no action
by a Party against another for breach hereof is limited to breach of contract
remedies.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    12.2           Governing Law; Jurisdiction /
Venue.  This Agreement will be exclusively interpreted and
enforced in a state court in Carson City, Nevada under Nevada law (without
reference to its choice of law rules).  The
Parties hereby consent to such venue, governing law, and the jurisdiction of
such court. 

     

    12.3           Confidentiality.  This
Agreement’s terms and any information marked confidential or proprietary that is
afforded by one Party to the other shall not be disclosed by the receiving Party
(“Receiving Party”) to
any other person or entity, except as required: by court order, by any
governmental authority, by law or any other legal process; or for the legitimate
conduct of the Receiving Party’s business (such as a disclosure to the Party’s
attorney or accountant), but only as necessary for the foregoing
purpose.  The Receiving Party shall take reasonable precautions to
prevent any further disclosure of the protected information by those to whom
disclosure is herein permitted.  Nothing herein shall limit or be read
or construed to imply that the consent or permission of the other Party is
required for a Party to issue, publish and/or disseminate truthful, accurate and
complete information regarding the underlying relationship — so long as same is
done in the releasing Party’s ordinary course of business and conduct, including
by way of press release or conference.

    

    12.4           Entire
Agreement.  This Agreement sets forth the Parties’ entire
agreement and understandings relating to the subject matter herein and merges
and supersedes all prior agreements, writings and
understandings.  This Agreement (and any waiver of any rights
herefrom) shall not be amended or modified unless in a writing signed by the
Parties, and is intended by the Parties to be read in concert with the
contemplated operating agreements for the Operating Entity and Holding
Company.  To the extent that this Agreement and either or both of such
operating agreements conflict, this Agreement shall govern.

    

    12.5           Legal Expenses.  The
prevailing Party in any legal action brought against the other Party (and
relating hereto) shall be entitled, to, inter alia, reimbursement for
its expenses, including court costs and reasonable attorneys’ and expert witness
fees and expenses.

    

    12.6           Benefit.  This
Agreement binds (and inures to the benefit of) the Parties, and the Parties’
respective heirs, assigns, successors and legal representatives, subject to any
and all assignment restrictions set forth herein.  However, this Agreement is not a
third party beneficiary contract (and no third party shall have any claim or
right of action hereunder).

    

    12.7           Severability /
Waiver.  If a term hereof is held by a court of competent
jurisdiction to be invalid or unenforceable, then all of this Agreement’s
remaining terms shall, in sum, remain effective as if the objectionable term was
not included (and the invalid or unenforceable term shall be judicially modified
and read by the court to be enforceable to the maximum extent possible, if at
all).  No delay, omission or failure to exercise any right or remedy
provided for herein shall be deemed a waiver thereof or an acceptance of the
event giving rise to such remedy.  Rather, every such right or remedy
hereunder may be used as the Party exercising it deems
expedient.

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    

    12.8           Assignment.  Neither
this Agreement nor the rights and obligations hereunder shall be assigned or
transferred by either Party, or to or by any third party (including by court
order, operation of law, merger, statute, regulation, ordinance or otherwise)
without the other Party’s prior express written consent.  Any attempt
to otherwise assign this Agreement will be ineffective.

    

    12.9           Injunctive
Relief.  The Parties acknowledge that monetary damages are an
inadequate remedy for the breach of certain provisions
hereof.  Accordingly, if either Party breaches (or threatens to
breach) any of his/her obligations hereunder, the other Party shall be entitled,
without proving actual damage sustained, to a stipulated temporary restraining
order, and shall thereafter be entitled to apply for a preliminary injunction,
permanent injunction and/or order compelling specific performance, to prevent
that continued or threatened breach.  Additionally, either Party may
pursue other remedies available to it, including the recovery of
damages.

    

    12.10        Notice.  Any notice
given hereunder shall be in writing and effective upon confirmed delivery to the
appropriate Party by personal delivery, recognized overnight delivery service,
or five (5) business days after being sent via first class mail postage prepaid
at/to the respective Party’s address set forth at the beginning of this
Agreement (or at/to such other address as a Party may provide by written notice
to the other Party from time to time).

    

    12.11        Independent
Investigation.  Each
Party has: independently evaluated the desirability of entering into this
Agreement and is not relying on any representation, guarantee or statement not
set forth herein; and has been afforded the opportunity to seek legal counsel
with regards to its rights and obligations and has consulted or refused such
counsel, and accordingly negotiated this Agreement.

    

    12.12        Execution.  The
Parties have executed this Agreement personally or by duly authorized
representative and acknowledge that they understand and agree to be bound by
it.

    

    
      	
              TRINITY ALPS RESOURCES,
INC.

            	 
      	
              AMERICAN SIERRA GOLD
  CORP.

            
	
              A
      Nevada Domestic Corporation

            	 
      	
              A
      Nevada Domestic Corporation

            
	
              By:  Patrick
      A. Fagen, President

            	 
      	
              By:  Johannes
      Petersen, Chief Financial Officer

            
	 
      	 
      	 
      
	
               /s/ Patrick A. Fagen

            	 
      	
               /s/ Johannes
  Petersen

            

    

     

    
      
         

      

      
        13

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