Document:

Exhibit

TERRAVIA HOLDINGS, INC. 
KEY EMPLOYEE INCENTIVE PLAN
Section 1.  Purpose.  The purpose of this Key Employee Incentive Plan (the “Plan”), to be implemented only upon a final order entered by the United States Bankruptcy Court for the District of the Delaware (such implementation date, the “Effective Date”), is to promote the interests of TerraVia Holdings, Inc. (the “Company”), a Delaware corporation, by providing incentives to key management personnel of the Company to make extraordinary efforts to execute the strategic objectives of the Company in a manner most beneficial to the Company and its stakeholders.
Section 2    .  Definitions.  As used in this Plan, the following terms shall have the meanings indicated.
“2017 KEIP” means the Company’s 2017 KEIP Performance Plan as approved by the Board on June 26, 2017.
“Auction” means the auction of the Company’s assets in accordance with the Order (I) Approving Bidding Procedures for Sale of Debtors’ Assets, (II) Approving Stalking Horse Bid Protections, (III) Scheduling Auction for, and Hearing to Approve, Sale of Debtors’ Assets, (IV) Approving Form and Manner of Notices of Sale, Auction and Sale Hearing, (V) Approving Assumption and Assignment Procedures and (VI) Granting Related Relief [D.I. __].
“Bankruptcy Code” means title 11 of the United States Code, 11 U.S.C § 101 et seq.
“Board” means the Board of Directors of the Company.
“Bonus” means the cash amount that becomes payable to a Participant upon the occurrence of a Sale Transaction.
“Bonus Pool” means the aggregate cash bonus pool available to compensate the Participants in connection with a Sale Transaction, as calculated in accordance with Annex A-1 based on the Total Noteholder Consideration.
“Cause” means the occurrence of any of the following with respect to a Participant, if such occurrence is confirmed by a finding of the Board of Directors:
(a)    any material act of fraud or embezzlement by the Participant in connection with the Participant’s responsibilities as an employee; 
(b)    the Participant’s intentional and material falsification of any employment or Company records;
(c)    the Participant’s improper disclosure of the Company’s confidential or proprietary information or material breach of any confidentiality or assignment and invention agreement with the Company;  

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(d)    any act of gross misconduct by the Participant that has or is reasonably expected to have a material detrimental effect on the Company’s reputation or business; 
(e)    the Participant’s consistent or gross inattention, as documented in writing by the Board on an ongoing basis, to the essential functions of the position; or
(f)    the Participant’s being convicted of a felony.
“DIP Lenders” has to meaning given to such term in the Interim DIP Order.
“Disability” means “permanent and total disability” as defined in Section 22(e)(3) of the Internal Revenue Code of 1986, as amended from time to time, and the rules, regulations and guidance thereunder.
“Expiration Date” means December 31, 2017.
“Good Reason” means, with respect to a Participant, a material reduction in the Participant’s then-current base salary.
“Interim DIP Order” means the Interim Order Pursuant to 11 U.S.C. §§ 105, 362, 364(c), 364(d)(1), 364(e), 503 and 507 (I) Authorizing the Debtors to Obtain Senior Secured Super-Priority Post-Petition Financing, (II) Granting Liens and Providing Superpriority Administrative Expense Status, (III) Modifying the Automatic Stay, (IV) Scheduling a Final Hearing and (V) Granting Related Relief [D.I. 62].
“Notice Agreement” means the written notice provided by the Company pursuant to the consent of the Board to each Participant setting forth the terms of such Participant’s eligibility for a Bonus under this Plan.
“Participant” means an individual listed on Annex A-2.
“Participation Percentage” means the percentage of the Bonus Pool, as set forth on Annex A-2, to which a Participant shall be entitled upon the occurrence of a Payment Event, subject to the conditions set forth in this Plan.
“Payment Event” means the consummation of a Sale Transaction.
“Purchase Price” means the total amount of all cash and the fair market value of any securities or other tangible property paid to the Company as consideration in connection with a Sale Transaction. If the Sale Transaction takes the form of a joint venture or similar structure, then the Purchase Price shall include all consideration contributed, directly or indirectly, to such joint venture or similar structure by the Company. The Purchase Price shall also include the face amount of any liabilities tendered in connection with any credit bid.  For purposes hereof, and by way of example, the Purchase Price of the Stalking Horse Bid is $20.0 million, less any Holdback Amount (as defined in the Stalking Horse Agreement).
“Required DIP Lenders” has the meaning given to such term in the Interim DIP Order.

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“Sale Transaction” means any transaction or series of related transactions with an aggregate Purchase Price equal to or in excess of the Purchase Price of the Stalking Horse Bid that constitute the disposition to one or more third parties (including, without limitation, any person, group of persons, partnership, corporation or other entity, and also including, among others, any of the existing owners or stockholders (in each such case only to the extent there is an additional bona fide third party offer), employees, or creditors of the Company and/or the affiliates of each) in one or a series of related transactions of (a) all or substantially all equity interests of the Company and/or (b) all or a majority of the assets or operations of the Company or any joint venture or partnership or other entity formed by it, in either case, including, without limitation, through a sale or exchange of capital stock, options or assets with or without a purchase option, a merger, consolidation or other business combination, an exchange or tender offer, or any similar transaction, including, without limitation, any sale transaction under sections 363, 1129 or any other provision of the Bankruptcy Code; provided that, for the purposes of (b) above, any sale of the assets of the Company that does not include the Company’s 50.1% ownership interests in SB Oils Parent shall not constitute a sale of all or a majority of the assets of the Company.
“SB Oils Parent” means Solazyme Bunge Renewable Oils Coöperatief U.A., a Dutch cooperative.
“Stalking Horse Agreement” means that certain Stock and Asset Purchase Agreement, dated as of August 1, 2017, by and among, inter alia, the Company and Corbion, N.V.
“Stalking Horse Bid” means the bid made by Corbion, N.V. under the Stalking Horse Agreement to purchase a significant portion of the Company’s assets for an aggregate purchase price of $20,000,000, less any Holdback Amount.
“Total Noteholder Consideration” means the total consideration distributable to the holders of the Company’s senior subordinated convertible notes on account thereof, as agreed to in good faith by the Company and the Required DIP Lenders at the close of the Auction (which shall be, for the avoidance of doubt, net of administrative expenses, including professional fees).
Section 3    .  Administration.  This Plan shall be administered by the Board.  Subject to the terms of this Plan, the Board, in consultation with the DIP Lenders, shall have full power and authority to make determinations and take any other action that the Board deems necessary or desirable for the administration of this Plan.
Section 4    .  Bonuses.  
(a)    Payment of Bonuses.  Subject to the conditions set forth in Sections 4(c) and 6, each Participant shall receive a Bonus in cash from the Company if (i) a Payment Event occurs and (ii) such Participant remains employed by the Company as of the occurrence of such Payment Event.  The amount of such Bonus shall be calculated in accordance with such Participant’s Participation Percentage, and shall be paid on or within 10 business days after the occurrence of such Payment Event.

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(b)    Effect of Involuntary Termination.  If before the occurrence of a Payment Event, (i) a Participant’s employment is terminated by the Company without Cause, (ii) a Participant’s employment is terminated due to a resignation for Good Reason or (iii) a Participant dies or becomes Disabled while an employee of the Company, then on or within 10 business days after such Payment Event occurs, such Participant shall be entitled to receive the Bonus to which such Participant would otherwise have been entitled if such Participant had remained employed with the Company through the occurrence of such Payment Event. 
(c)    Effect of Other Termination.  If before a Payment Event (i) a Participant’s employment is terminated by the Company for Cause, (ii) a Participant resigns from his position with the Company in circumstances that do not constitute Good Reason, or (iii) the Participant otherwise does not accept employment offered by the purchaser under a Sale Transaction, such Participant shall not be eligible to receive a Bonus. 
(d)    No Redistribution of Forfeited Bonuses.  In the event that a Participant is not entitled for any reason to receive a Bonus (including due to a forfeiture under ‎Section 4(c)), the portion of the Bonus that would have been received by such Participant shall be forfeited and shall not be redistributed to the Bonus Pool.
Section 5    .  One-Time Bonus.  Any Bonus paid hereunder is a one-time, special bonus and shall not be included for purposes of computing or determining any Participant’s compensation under any retirement or benefit plans of the Company.
Section 6    .  Conditions for Receipt of Bonus.  Subject to Section 4(c), the receipt of any Bonus hereunder shall be subject to the obligation of the Participant from the date hereof until the earlier of the occurrence a Payment Event or the Expiration Date to affirmatively assist the Board and the Company, and their financial advisors and affiliates, in the successful completion of the Payment Events contemplated hereby.
Section 7    .  Return of Property.  If a Participant’s employment with the Company is terminated for any reason, such Participant will surrender to the Company all memoranda, books, papers, plans, information, letters and other data of the Company, and all copies thereof or therefrom, and all other property belonging to or in any way relating to the business of the Company.
Section 8    .  Miscellaneous.
(a)    Governing Law.  This Plan and the Notice Agreement shall be governed by and construed and interpreted in accordance with the laws of the State of Delaware, without reference to principles of conflict of laws.
(b)    Entire Agreement; Amendments. This Plan and the Notice Agreement set forth the entire agreement with respect to the Bonuses described herein and supersede all prior agreements or other arrangements or communications with respect to such matters (including, for the avoidance of doubt, the 2017 KEIP) and any other performance-based bonuses. The Board may amend, alter, suspend, discontinue, or terminate the Plan or any portion thereof at any time, with 

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the consent of the Required DIP Lenders; provided, however, that the Board may not, without consent of the applicable Participant, waive, amend, alter or suspend the terms of the Plan to adversely affect any Participant after the Participant has been selected by the Board for participation in the Plan and notified of such participation pursuant to a Notice Agreement, except as otherwise set forth in the Plan.
(c)    No Waiver.  The failure of the Company or any Participant to insist upon strict adherence to any term of this Plan on any occasion shall not be considered a waiver of such party’s rights or deprive such party of the right thereafter to insist upon strict adherence to that term or any other term of this Plan.
(d)    Severability.  In the event that any one or more of the provisions of this Plan shall be or become invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions of this Plan outstanding shall not be affected thereby.
(e)    Successors; Binding Agreement.  This Plan shall inure to the benefit of and be binding upon the personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees of the Company and the Participants.
(f)    Notice.  For the purpose of this Plan, notices and all other communications provided for in this Plan shall be in writing and shall be deemed to have been duly given when delivered or mailed by United States registered mail, return receipt requested, postage prepaid, addressed to: (i) the Company at 225 Gateway Boulevard, South San Francisco, CA 94080, Attention:  Board of Directors; and to (ii) a Participant at the address of such Participant as set forth on the Participant’s Form W-2 with respect to the Company, provided that a copy of all notices to the Company shall be provided to the Secretary of the Company, in each case at 225 Gateway Boulevard, South San Francisco, CA 94080, or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notice of change of address shall be effective only upon receipt.
(g)    Withholding Taxes.  The Company may withhold from any amounts payable under this Plan such U.S. federal, state and local taxes as may be required to be withheld pursuant to any applicable law or regulation.
(h)    No Rights Other Than Those Expressly Created.   Neither this Plan nor any action taken hereunder shall be construed as (i) giving a Participant any right to be retained as an employee of, or continue to be affiliated with, the Company, or otherwise (ii) creating a trust of any kind or a fiduciary relationship of any kind between the Participant and the Company or any DIP Lender. 
(i)    Term of Plan.  This Plan shall remain in effect from the date hereof until the Expiration Date or the earlier payment of all of the Bonuses; provided that the obligation to pay any Bonus hereunder in connection with a Payment Event that has occurred on or prior to the Expiration Date, and the provisions of ‎Section 7 and ‎Section 8 hereof, shall survive any termination of this Plan.

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Annex A-1
	
		
	Total Noteholder Consideration
	Bonus Pool

	< $21,000,000
	$0

	$21,000,000
	$500,000

	> $21,000,000
	$500,000 plus 3% of Total Noteholder Consideration in excess of $21,000,000; provided that the Bonus Pool shall not exceed $3,500,000

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Annex A-2
Participants and Participation Percentages 

	
		
	Participant
	Participation Percentage

	Apu S. Mody
	22%

	Tyler W. Painter
	18%

	Peter J. Licari
	18%

	Paul T. Quinlan
	18%

	Mark Brooks
	8%

	Graham Ellis
	8%

	Walter Rakitsky
	8%

7Exhibit
10.1

 

AGREEMENT
OF PURCHASE AND SALE

 

THIS
AGREEMENT OF PURCHASE AND SALE (this “Agreement”) is made on this 2nd day of September, 2017, to be
effective immediately, among Rush Gold Royalty Inc, a Wyoming corporation, with registered address at 412 N. Main Street, Suite
100, Buffalo, Wyoming, U.S.A., Corporate Register No. 2017-000766955, hereinafter referred to as “RGRI,” the owner
of twenty-one mining claims over an area of approximately 400 acres in Granite Mining District, Grant County, Oregon, U.S.A.,
all of which are listed on Schedule 1 to this Agreement, and American Pacific Resources, Inc., a Wyoming corporation, with registered
address at 412 N. Main Street, Suite 100, Buffalo, Wyoming, U.S.A., hereinafter to referred to as “APRI,” which is
a wholly owned subsidiary of PHI Group, Inc., a Nevada corporation, with principal business address at 5348 Vegas Drive # 237,
Las Vegas, NV 89108, U.S.A., Corporate Register No. C2249-1982, hereinafter referred to as “PHIL.”

 

WHEREAS:

 

A. RGRI
is the legal owner of twenty-one mining claims over an area of approximately 400 acres in Granite Mining District, Grant County,
Oregon, U.S.A., all of which are listed on Schedule 1 to this Agreement (the “Acquired Assets”);

 

B. RGRI
has secured a proprietary processing technology, namely HYMAX HD, from a Korean company to recover valuable precious metals from
otherwise non-economically feasible gold mine tailings;

 

C. According
to past independent valuation studies of the Acquired Assets, the estimated value of the valuable precious metals that can be
recovered from the Acquired Assets, based on current market prices, would be approximately three billion U.S. dollars;

 

D. The
parties hereto wish to enter this Agreement of Purchase and Sale (“Agreement”) whereby PHIL will pay on behalf of
APRI a total purchase price (“Total Purchase Price”) of Twenty-Five Million U.S. Dollars ($US 25,000,000) in a combination
of PHI Group, Inc.’s Series II Class A Convertible Cumulative Redeemable Preferred Stock (“Preferred Stock”),
Demand Promissory Note, and cash (as described Section 2.2 below and in detailed Schedule 6) in exchange for a fifty-one percent
(51%) ownership of the Acquired Assets.

 

E. PHIL
is committed to taking APRI as a separate publicly traded company in the U.S. Stock Market after certain operating milestones
of APRI will have been achieved and agreed upon by all the parties.

 

NOW
THEREFORE THIS AGREEMENT WITNESSES that in consideration of covenants and agreements set forth herein and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree each with the other as follows:

 

1.DEFINITIONS

 

1.1 Definitions.
The following terms have the following meanings, unless the context indicates otherwise:

 

(a) “Acquired
Assets” means all assets listed in Schedule 1 hereto;

 

(b) “Agreement”
means this Agreement, and all the exhibits, schedules and other documents attached to or referred to in this Agreement, and all
amendments and supplements, if any, to this Agreement;

 

    	 	1	 

    	 

    

 

(c) “Closing”
shall mean the completion of the Transaction, in accordance with Section 7 hereof, at which time the Closing Documents shall be
exchanged by the parties, except for those documents or other items specifically required to be exchanged at a later time;

 

(d) “Closing
Date” shall mean a date mutually agreed upon by the parties hereto in writing and in accordance with Section 8.1(d) of this
Agreement;

 

(e) “Closing
Documents” shall mean the papers, instruments and documents required to be executed and delivered at the Closing pursuant
to this Agreement;

 

(f)
“Liabilities” includes, any direct or indirect indebtedness, guaranty, endorsement, claim, loss, damage, deficiency,
cost, expense, obligation or responsibility, fixed or unfixed, known or unknown, asserted choate or inchoate, liquidated or unliquidated,
secured or unsecured.

 

(g) “Loss”
shall mean any and all demands, claims, actions or causes of action, assessments, losses, damages, liabilities, costs, and expenses,
including without limitation, interest, penalties, fines and reasonable attorneys, accountants and other professional fees and
expenses, but excluding any indirect, consequential or punitive damages suffered by RGRI or PHIL including damages for lost profits
or lost business opportunities.

 

(h) “SEC”
shall mean the United States Securities and Exchange Commission;

 

(i) “Taxes”
shall include international, federal, state, provincial and local income taxes, capital gains tax, value-added taxes, franchise,
personal property and real property taxes, levies, assessments, tariffs, duties (including any customs duty), business license
or other fees, sales, use and any other taxes relating to the assets of the designated party or the business of the designated
party for all periods up to and including the Closing Date, together with any related charge or amount, including interest, fines,
penalties and additions to tax, if any, arising out of tax assessments;

 

(j) “Transaction”
shall mean the exchange of Consideration pursuant to this Agreement as described in Section 2.2;

 

(k) “1933
Act” shall mean the United States Securities Act of 1933, as amended;

 

(l) “1934
Act” shall mean the United States Securities Exchange Act of 1934, as amended; and,

 

(m) Schedules.
The following schedules are attached to and form part of this Agreement:

 

	 	Schedule
    1 - The Acquired Assets.
	 	Schedule
    2- Title of Acquired Assets.
	 	Schedule
    3 - Impairments to Title of Acquired Assets, if any.
	 	Schedule
    4 - Licenses and Permits.
	 	Schedule
    5 - Exceptions.
	 	Schedule
    6 – Method of Payment

 

1.2 Currency.
All dollar amounts referred to in this Agreement are in United States funds, unless expressly stated otherwise.

 

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2.
AGREEMENT OF PURCHASE AND SALE AND OTHER CONSIDERATION

 

2.1 Purchase
and Sale of Shares. Subject to the terms and conditions of this Agreement, PHIL hereby covenants and agrees to buy from RGRI
on behalf of APRI and RGRI hereby covenants and agrees to sell a fifty-one percent (51%) equity ownership of Acquired Assets to
APRI, as set out in Section 2.2 below.

 

2.2 Consideration.

 

(a) As
consideration for a combination of cash delivery, demand promissory note and Preferred Stock by PHIL as described in Schedule
6, RGRI shall transfer and deliver the following consideration to APRI and resolve any obligations in connection with Acquired
Assets upon or prior to the Closing Date of this transaction:

 

(i) ownership
and possession of fifty-one percent (51%) of the Acquired Assets;

 

(b) As
consideration for the consideration provided by RGRI, PHIL shall pay the following consideration to APRI and/or its designee(s):

 

The
Total Purchase Price for 51% of the Acquired Assets in the amount of Twenty-Five Million U.S. Dollars ($US 25,000,000)
in a combination of cash, demand promissory note and shares of PHI Group, Inc.’s Series II Class A Convertible Cumulative
Redeemable Preferred Stock (“Preferred Stock”), payable to RGRI and/or its designee(s) according to the payment schedule
as detailed in Schedule 6 of this Agreement.

 

The
issuance of the PHIL’s shares of Preferred Stock RGRI and/or their designee(s) shall qualify as a transaction in securities
exempt from registration or qualification under the Securities Act of 1933, as amended, and under the applicable securities laws.
The Shares have not been registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and
have not been listed on any foreign exchange. The Shares may not be resold unless the resale thereof is registered under the Securities
Act, or an exemption from such registrations is available. Each certificate representing the PHIL Shares will have a legend thereon
in substantially the following form:

 

“THE
SHARES REPRESENTED BY THE CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”).
THE SHARES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
FOR THE RESALE OF THE SHARES UNDER THE ACT UNLESS IN THE OPINION OF COUNSEL SATISFACTORY TO THE COMPANY, REGISTRATION IS NOT REQUIRED
UNDER THE ACT.”

 

3.
REPRESENTATIONS AND WARRANTIES OF RGRI

 

RGRI
represents and warrants to PHIL, and acknowledges that PHIL is relying upon such representations and warranties, in connection
with the execution, delivery and performance of this Agreement, notwithstanding any investigation made by or on behalf of PHIL,
as follows:

 

3.1 History
of Assets. The Acquired Assets have not previously been illegally owned by a corporation or other entity.

 

3.2 Authority.
RGRI has all requisite corporate power and authority to execute and deliver this Agreement and any other document contemplated
by this Agreement (collectively, the “RGRI Documents”) to be signed by an authorized officer of RGRI and to
perform its obligations hereunder and to consummate the transactions contemplated hereby. The execution and delivery of RGRI Documents
by RGRI and the consummation of the transactions contemplated hereby have been duly authorized. No other proceedings on the part
of RGRI is necessary to authorize such documents or to consummate the transactions contemplated hereby. This Agreement has been,
and the other RGRI Documents when executed and delivered by RGRI will be, duly executed and delivered by RGRI and this Agreement
is, and the other RGRI Documents when executed and delivered by RGRI as contemplated hereby will be, valid and binding obligations
of RGRI enforceable in accordance with their respective terms except:

 

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(a) as
limited by applicable bankruptcy, insolvency, reorganization, moratorium, and other laws of general application affecting enforcement
of creditors’ rights generally;

 

(b)
as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies.

 

3.3 Title
to the Acquired Assets. RGRI possesses or shall have possessed good and marketable title of all of the Acquired Assets prior
to the Closing Date. All such property is used in the business of RGRI. All Acquired Assets are owned or shall have been owned
by RGRI by the Closing Date free and clear of all liens, security interests, charges, encumbrances, and other adverse claims,
except as disclosed in Schedule 5 to this Agreement.

 

3.4 Non-Contravention.
Neither the execution, delivery, performance of this Agreement nor the consummation of the Transaction, will:

 

(a) conflict
with, result in a violation of, cause a default under (with or without notice, lapse of time or both) or give rise to a right
of termination, amendment, cancellation or acceleration of any obligation contained in or the loss of any material benefit under,
or result in the creation of any lien, security interest, charge or encumbrance upon any of the Acquired Assets under any term,
condition or provision of any loan or credit agreement, note, debenture, bond, mortgage, indenture, lease or other agreement,
instrument, permit, license, judgment, order, decree, statute, law, ordinance, rule or regulation applicable to RGRI, or any of
its material property or assets; or,

 

(b) violate
any order, writ, injunction, decree, statute, rule, or regulation of any court or governmental or regulatory authority applicable
to RGRI or any of the Acquired Assets.

 

3.5 Actions
and Proceedings. To the best knowledge of RGRI, there is no basis for and there is no action, suit, judgment, claim, demand
or proceeding outstanding or pending, or threatened against or affecting RGRI or the Acquired Assets that involves any of the
business, or the properties or assets of RGRI that, if adversely resolved or determined, would have a material adverse effect
on the Acquired assets (a “Material Adverse Effect”). There is no reasonable basis for any claim or action
that, based upon the likelihood of its being asserted and its success if asserted, would have such a RGRI Material Adverse Effect.

 

3.6 Absence
of Changes. Except as otherwise stated in this Agreement, from the date of this Agreement to the Closing of this Transaction,
RGRI shall not:

 

(a) fail
to pay or discharge when due any liabilities of which the failure to pay or discharge would cause any material damage or risk
of material loss to any of the Acquired Assets;

 

(b) sell,
encumber, assign or transfer any of the Acquired Assets;

 

(c) create,
incur, assume or guarantee any indebtedness for money borrowed, or mortgage, pledge or subject any of the Acquired Assets to any
mortgage, lien, pledge, security interest, conditional sales contract or other encumbrance of any nature whatsoever;

 

3.7 Completeness
of Disclosure. No representation or warranty by RGRI in this Agreement nor any certificate, schedule, statement, document
or instrument furnished or to be furnished to PHIL pursuant hereto contains or will contain any untrue statement of a material
fact or omits or will omit to state a material fact required to be stated herein or therein or necessary to make any statement
herein or therein not materially misleading.

 

    	 	4	 

    	 

    

 

4.
REPRESENTATIONS AND WARRANTIES OF PHIL

 

PHIL
represents and warrants to RGRI and acknowledges that RGRI is relying upon such representations and warranties in connection with
the execution, delivery and performance of this Agreement, notwithstanding any investigation made by or on behalf of RGRI as follows:

 

4.1 Organization
and Good Standing. PHIL is duly incorporated, organized, validly existing and in good standing under the laws of the State
of Nevada, U.S.A. and has all requisite corporate power and authority to own, lease and to carry on its business as now being
conducted.

 

4.2 Authority.
PHIL has all requisite corporate power and authority to execute and deliver this Agreement and any other document contemplated
by this Agreement (collectively, the “PHIL Documents”) to be signed by PHIL and to perform its obligations
hereunder and to consummate the Transaction contemplated hereby. The execution and delivery of each of the PHIL Documents by PHIL
and the consummation by PHIL of the transaction contemplated hereby have been duly authorized by its board of directors and no
other corporate or shareholder proceedings on the part of PHIL is necessary to authorize such documents or to consummate the Transaction
contemplated hereby. This Agreement has been, and the other PHIL Documents when executed and delivered by PHIL and this Agreement
is, and the other PHIL Documents when executed and delivered by PHIL, as contemplated hereby will be, valid and binding obligations
of PHIL enforceable in accordance with their respective terms, except:

 

(a) as
limited by applicable bankruptcy, insolvency, reorganization, moratorium, and other laws of general application affecting enforcement
of creditors’ rights generally;

 

(b)
as limited by laws relating to the availability of specific performance, injunctive relief.

 

4.3 Corporate
Records of PHIL. The corporate records of PHIL, as required to be maintained by it pursuant to the Nevada Corporations Code,
are accurate, complete and current in all material respects, and the minute book of PHIL is, in all material respects, correct
and contains all material records required by the laws of the State of Nevada in regards to all proceedings, consents, actions
and meetings of the shareholders and the board of directors of PHIL.

 

4.4 Non-Contravention. Neither
the execution, delivery, performance of this Agreement nor the consummation of this Transaction will:

 

(a) subject
to certain provisions contained elsewhere in this Agreement, conflict with, result in a violation of, cause a default under (with
or without notice, lapse of time or both) or give rise to a right of termination, amendment, cancellation or acceleration of any
obligation contained in or the loss of any material benefit under, or result in the creation of any lien, security interest, charge
or encumbrance upon any of the material properties or assets of PHIL under any term, condition or provision of any loan or credit
agreement, note, debenture, bond, mortgage, indenture, lease or other agreement, instrument, permit, license, judgment, order,
decree, statute, law, ordinance, rule or regulation applicable to PHIL or any of its material property or assets;

 

(b) violate
any provision of the applicable incorporation or charter documents of PHIL; or

 

(c) violate
any order, writ, injunction, decree, statute, rule, or regulation of any court or governmental or regulatory authority applicable
to PHIL or any of its material property or assets.

 

    	 	5	 

    	 

    

 

4.5 Compliance.

 

(a) To
the best knowledge of PHIL, PHIL is in compliance with, is not in default or violation in any material respect under, and has
not been charged with or received any notice at any time of any material violation of any statute, law, ordinance, regulation,
rule, decree or other applicable regulation to the business or operations of PHIL;

 

(b) To
the best knowledge of PHIL, PHIL is not subject to any judgment, order or decree entered in any lawsuit or proceeding applicable
to its business and operations that would constitute a Material Adverse Effect;

 

(c) PHIL
will have duly filed all reports and returns required to be filed by it with governmental authorities and has obtained all governmental
permits and other governmental consents, except as may be required after the execution of this Agreement. All of such permits
and consents are in full force and effect, and no proceedings for the suspension or cancellation of any of them, and no investigation
relating to any of them, is pending or to the best knowledge of PHIL, threatened, and none of them will be affected in a material
adverse manner by the consummation of the Transaction; and

 

(d) PHIL
has operated in material compliance with all laws, rules, statutes, ordinances, orders and regulations applicable to its business.
PHIL has not received any notice of any violation thereof, nor is PHIL aware of any valid basis therefore.

 

4.6 Filings,
Consents and Approvals. PHIL shall conduct or obtain any filing, registration, permit or authorization from any public or
governmental body or authority, shareholders or other person that is necessary for the consummation by PHIL of the Transaction
contemplated by this Agreement and to continue to conduct its business after the Closing Date in a manner which is consistent
with that in which it is presently conducted.

 

4.7 Subsidiary.
APRI, a wholly owned subsidiary of PHIL, will be the holder of the title to the Acquired Assets and any licenses and permits
associated with such assets.

 

4.8
No Brokers. PHIL has not incurred any obligation or liability to any party for any brokerage fees, agent’s commissions,
or finder’s fees in connection with the Transaction contemplated by this Agreement, except as may be disclosed elsewhere
in this agreement.

 

4.9 Completeness
of Disclosure. No representation or warranty by PHIL in this Agreement nor any certificate, schedule, statement, document
or instrument furnished or to be furnished to RGRI pursuant hereto contains or will contain any untrue statement of a material
fact or omits or will omit to state a material fact required to be stated herein or therein or necessary to make any statement
herein or therein not materially misleading.

 

5.
CLOSING CONDITIONS

 

5.1 Conditions
Precedent to Closing by PHIL. The obligation of PHIL to consummate the Transaction is subject to the satisfaction or waiver
of the conditions set forth below on or before the Closing Date or such earlier date as hereinafter specified. The Closing of
the Transaction contemplated by this Agreement will be deemed to mean the satisfaction or waiver of all conditions to Closing.
These conditions of closing are for the benefit of PHIL and may be waived by PHIL in its sole discretion.

 

(a) PHIL
shall have obtained the approval of its Board of Directors for the purchase and sale of the Acquired Assets.

 

(b) Representations
and Warranties. The representations and warranties of RGRI set forth in this Agreement will be true, correct and complete in all
respects as of the Closing Date, as though made on and as of the Closing Date and RGRI will have delivered to PHIL a certificate
dated as of the Closing Date, to the effect that the representations and warranties made by RGRI respectively in this Agreement
are true and correct.

 

    	 	6	 

    	 

    

 

(c) Performance.
All of the covenants and obligations that RGRI are required to perform or to comply with pursuant to this Agreement at or prior
to the Closing shall have been performed and complied with in all material respects.

 

(d) Transaction
Documents. This Agreement, the RGRI Documents and all other documents necessary or reasonably required to consummate the Transaction,
all in form and substance reasonably satisfactory to PHIL, will have been executed and delivered to PHIL.

 

(e) Third
Party Consents. PHIL will have received duly executed copies of all third party consents and approvals contemplated by this Agreement,
in form and substance reasonably satisfactory to PHIL.

 

(f) No
Material Adverse Change. No RGRI Material Adverse Effect will have occurred since the date of this Agreement.

 

(g) No
Action. No suit, action, or proceeding will be pending or threatened which would:

 

	 	(i)	prevent
    the consummation of any of the transactions contemplated by this Agreement, or
	 	 	 
	 	(ii)	cause
    the Transaction to be rescinded following consummation.

 

(h) Due
Diligence. PHIL and its attorneys will be reasonably satisfied with their due diligence investigation of RGRI that is reasonable
and customary in a transaction of a similar nature to that contemplated by the Transaction, including:

 

	 	(i)	satisfactory
    technical specifications of the properties of the referenced Acquired Assets;
	 	 	 
	 	(ii)	materials,
    documents and information in the possession and control of RGRI that are reasonably germane to the Transaction;
	 	 	 
	 	(iii)	title
    to the Acquired Assets held by RGRI;
	 	 	 
	 	(iv)	Pertinent
    licenses and permits registered in the name of RGRI for the Acquired Assets; and
	 	 	 
	 	(v)	completion
    of the financial and legal review of RGRI by PHIL or a third-party contractor. PHIL will be responsible for the costs in connection
    with the reviews.
	 	 	 
	 	(vi)	the
    time limit for the required Due Diligence is a maximum of 27 days following the signing of this Agreement, unless further
    extended in writing by RGRI and PHIL.

 

5.2 Conditions
Precedent to Closing by RGRI. The obligation of RGRI to consummate the Transaction is subject to the satisfaction or waiver
of the conditions set forth below on or before the Closing Date or such earlier date as hereinafter specified. The Closing of
the Transaction will be deemed to mean the satisfaction or waiver of all conditions to Closing. These conditions precedent are
for the benefit of RGRI and may be waived by RGRI in its discretion.

 

(a) On
or before the Closing, the Board of Directors and shareholders of RGRI shall have approved, in accordance with the law of, the
execution, delivery and performance of this Agreement and the consummation of the transaction contemplated herein and authorized
all of the necessary and proper action to enable RGRI to comply with the terms of the Agreement.

 

    	 	7	 

    	 

    

 

(b) Representations
and Warranties. The representations and warranties of PHIL set forth in this Agreement will be true, correct and complete in all
respects as of the Closing Date, as though made on and as of the Closing Date and PHIL will have delivered to RGRI a certificate
dated the Closing Date, to the effect that the representations and warranties made by PHIL in this Agreement are true and correct.

 

(c) Performance.
All of the covenants and obligations that PHIL is required to perform or to comply with pursuant to this Agreement at or prior
to the Closing shall have been performed and complied with in all material respects. PHIL shall have delivered each of the documents
required to be delivered by it pursuant to this Agreement.

 

(d) Transaction
Documents. This Agreement, the PHIL Documents and all other documents necessary or reasonably required to consummate the Transaction,
all in form and substance reasonably satisfactory to RGRI, shall have been executed and delivered by PHIL.

 

(e) Secretary’s
Certificate - PHIL. RGRI shall have received a certificate from the Secretary of PHIL attaching:

 

(i) a
copy of PHIL’s articles, bylaws and all other incorporation documents, as amended through the Closing Date, and

 

(ii) copies
of resolutions duly adopted by the board of directors of PHIL approving the execution and delivery of this Agreement and the consummation
of the transactions contemplated herein.

 

(f) No
Action. No suit, action, or proceeding shall be pending or threatened before any governmental or regulatory authority wherein
an unfavorable judgment, order, decree, stipulation, injunction or charge would:

 

	 	(i)	prevent
    the consummation of any of the transactions contemplated by this Agreement, or,
	 	 	 
	 	(ii)	cause
    the Transaction to be rescinded following consummation.

 

6.
ADDITIONAL COVENANTS OF THE PARTIES

 

6.1 Access
and Investigation. Between the date of this Agreement and the Closing Date, RGRI, on the one hand, and PHIL, on the other
hand, shall, and shall cause each of their respective representatives to:

 

(a) afford
the other and its representatives full and free access to its personnel, properties, assets, contracts, books and records, and
other documents and data;

 

(b) furnish
the other and its representatives with copies of all such contracts, books and records, and other existing documents and data
as required by this Agreement and as the other may otherwise reasonably request; and,

 

(c) furnish
the other and its representatives with such additional financial, operating, and other data and information as the other may reasonably
request.

 

    	 	8	 

    	 

    

 

All
of such access, investigation and communication by a party and its representatives shall be conducted during normal business hours
and in a manner designed not to interfere unduly with the normal business operations of the other party. Each party shall instruct
its auditors to co-operate with the other party and its representatives in connection with such investigations.

 

6.2 Notification.
Between the date of this Agreement and the Closing Date, each of the parties to this Agreement shall promptly notify the other
parties in writing if it becomes aware of any fact or condition that causes or constitutes a material breach of any of its representations
and warranties as of the date of this Agreement, if it becomes aware of the occurrence after the date of this Agreement of any
fact or condition that would cause or constitute a material breach of any such representation or warranty had such representation
or warranty been made as of the time of occurrence or discovery of such fact or condition. Should any such fact or condition require
any change in the Schedules relating to such party, such party shall promptly deliver to the other parties a supplement to the
Schedules specifying such change. During the same period, each party shall promptly notify the other parties of the occurrence
of any material breach of any of its covenant in this Agreement or of the occurrence of any event that may make the satisfaction
of such conditions impossible or unlikely.

 

6.3 Exclusivity.
The relationship established by both parties herein is exclusive unless the transaction contemplated by this Agreement is
terminated pursuant to Article 8 herein.

 

6.4 Conduct
of RGRI and PHIL Business Prior to Closing. Except as expressly contemplated by this Agreement or for purposes in furtherance
of this Agreement, from the date of this Agreement to the Closing Date, and except to the extent that RGRI otherwise consents
in writing, PHIL shall operate its business substantially as presently operated and only in the ordinary course and in compliance
with all applicable laws, and use its best efforts to preserve intact its good reputation and present business organization and
to preserve its relationships with persons having business dealings with it.

 

6.5 Full
Disclosure Requirement. RGRI acknowledges that PHIL is required to file with the SEC upon Closing a disclosure document which
includes discussion of many aspects of its future business, financial affairs, risks and management. RGRI shall cooperate fully
in providing PHIL with all information and documentation reasonably requested.

 

6.6 Licenses
and Permits. RGRI acknowledges and warrants that it shall be responsible for obtaining and maintaining all the valid and effective
licenses and permits for the Claims as appropriate and required for the recovery and processing of precious metals from the Acquired
Assets and shall promptly transfer such licenses and permits to APRI after Closing.

 

6.7 Listing
of APRI: PHIL shall be responsible for taking APRI public as a separate fully reporting publicly traded company in the U.S.
stock market as soon as certain operating milestones will have been achieved by APRI.

 

6.8 Option
to Exchange Preferred Shares: RGRI shall have to option to exchange the PHI Group, Inc.’s Series II Class A Convertible
Cumulative Redeemable Preferred Stock it receives in connection with this transaction to Common Shares of APRI at its discretion
prior to or after APRI’s becoming a separate publicly traded company. If the exchange occurs prior to APRI’s becoming
a separate publicly traded company, the parties hereto shall agree and determine a conversion ratio between the Preferred Shares
and the non-public Common Shares of APRI acceptable to all parties. If the exchange occurs after APRI has become a fully reporting
publicly traded company, the conversion ratio will be such that the Original Price Per Share of the Preferred Shares ( as detailed
in attached Schedule 6 herewith) plus any accrued and unpaid dividends thereof will be converted to the 50% discount to the 10-day
closing average of the Common Shares of APRI prior to such conversion.

 

    	 	9	 

    	 

    

 

7.
CLOSING

 

7.1 Closing
Date. The Closing Date shall be within twenty-seven (27) days following the signing of this Agreement, unless extended in
writing by the parties hereto.

 

7.2 Closing.
The Closing shall take place on the Closing Date at the offices of PHIL or RGRI, or at such other location as agreed to by
the parties. Notwithstanding the location of the Closing, each party agrees that the Closing may be completed by the exchange
of undertakings between the respective legal counsel for RGRI and PHIL, provided such undertakings are satisfactory to each party’s
respective legal counsel.

 

7.3 Closing
Deliveries of RGRI. At Closing, RGRI shall deliver or cause to be delivered the following, fully executed and in the form
and substance reasonably satisfactory to PHIL:

 

(a) Proof
of the conveyance of ownership of the Acquired Assets, together with all the pertinent licenses and permits thereof from RGRI
to APRI;

 

(b) all
certificates and other documents required by Section 5.1 of this Agreement;

 

(c) a
certificate of an officer of RGRI, dated as of Closing, certifying that:

 

	 	(i)	each
    respective covenant and obligation of RGRI has been complied with, and
	 	 	 
	 	(ii)	each
    respective representation, warranty and covenant of RGRI is true and correct at the Closing as if made on and as of the Closing;
    and

 

(d) The
RGRI Documents and any other necessary documents, each duly executed by RGRI, as required to give effect to the Transaction.

 

7.4 Closing
Deliveries of PHIL. At Closing, PHIL shall deliver or cause to be delivered the following, fully executed and in the form
and substance reasonably satisfactory to RGRI:

 

(a) copies
of all resolutions and/or consent actions adopted by or on behalf of the board of directors of PHIL evidencing approval of this
Agreement.

 

(b) An
total amount equivalent to Twenty-Five Million U.S. Dollars (US$25,000,000) in a combination of cash, demand promissory note and
Preferred Stock of PHIL payable to RGRI and/or its designee(s), as detailed in Schedule 6 of this Agreement, unless agreed otherwise
by the parties hereto prior to the Closing Date.

 

(c) all
certificates and other documents required by Section 5.2 of this Agreement;

 

(d) a
certificate of an officer of PHIL, dated as of Closing, certifying that:

 

	 	(i)	each
    covenant and obligation of PHIL has been complied with, and
	 	 	 
	 	(ii)	each
    representation, warranty and covenant of PHIL is true and correct at the Closing as if made on and as of the Closing; and

 

(e) any
other necessary documents, each duly executed by PHIL, as required to give effect to the Transaction.

 

    	 	10	 

    	 

    

 

8.
TERMINATION

 

8.1
 Termination. This Agreement may be terminated at any time prior to the Closing
Date contemplated hereby by:

 

(a) mutual
agreement of PHIL and RGRI;

 

(b) PHIL,
in the event of unsatisfactory legal, technical and other due diligence of RGRI and the Acquired Assets, as mentioned elsewhere
in this Agreement.

 

(c) PHIL,
if there has been a material breach by RGRI or any of RGRI of any material representation, warranty, covenant or agreement set
forth in this Agreement on the part of RGRI that is not cured, to the reasonable satisfaction of PHIL, within ten business days
after notice of such breach is given by PHIL (except that no cure period shall be provided for a breach by RGRI that by its nature
cannot be cured);

 

(d) RGRI,
if there has been a material breach by PHIL of any material representation, warranty, covenant or agreement set forth in this
Agreement on the part of PHIL that is not cured, to the reasonable satisfaction of RGRI, within ten business days after notice
of such breach is given by RGRI (except that no cure period shall be provided for a breach by PHIL that by its nature cannot be
cured);

 

(e) PHIL
or RGRI, if the Transaction contemplated by this Agreement has not been consummated by September 29, 2017 unless PHIL and RGRI
agree to extend such date in writing; or,

 

(f) PHIL
or RGRI, if any injunction or other order of a governmental entity of competent authority prevents the consummation of the Transaction
contemplated by this Agreement.

 

8.2 Effect
of Termination. In the event of the termination of this Agreement as provided in Section 8.1, this Agreement shall be of no
further force or effect, provided, however, that no termination of this Agreement shall relieve any party of liability for any
breaches of this Agreement that are based on a wrongful refusal or failure to perform any obligations.

 

9.
INDEMNIFICATION, REMEDIES, SURVIVAL

 

9.1 Certain
Definitions. For the purposes of this Section 9, the terms “Loss” and “Losses” mean
any and all demands, claims, actions or causes of action, assessments, losses, damages, liabilities, costs, and expenses, including
without limitation, interest, penalties, fines and reasonable attorneys, accountants and other professional fees and expenses
of an amount not less than $US 5,000, but excluding any indirect, consequential or punitive damages suffered by PHIL or RGRI including
damages for lost profits or lost business opportunities.

 

9.2 RGRI
Indemnity. RGRI shall and does hereby indemnify, defend, and hold harmless PHIL and its shareholders from, against, and in
respect of any and all Losses asserted against, relating to, imposed upon, or incurred by PHIL and its shareholders by reason
of, resulting from, based upon or arising out of:

 

(a) any
breach by RGRI of this Agreement; or

 

(b) any
misstatement, misrepresentation or breach of the representations and warranties made by RGRI contained in or made pursuant to
this Agreement , any RGRI Document or any certificate or other instrument delivered pursuant to this Agreement.

 

9.3 PHIL
Indemnity. PHIL shall and does hereby indemnify, defend, and hold harmless RGRI from, against, for, and in respect of any
and all Losses asserted against, relating to, imposed upon, or incurred by RGRI by reason of, resulting from, based upon or arising
out of:

 

(a) any
breach by PHIL of this Agreement; or

 

(b) any
misrepresentation, misstatement or breach of warranty of PHIL contained in or made pursuant to this Agreement, any PHIL Document
or any certificate or other instrument delivered pursuant to this Agreement.

 

    	 	11	 

    	 

    

 

10.
GENERAL

 

10.1 Effectiveness
of Representations; Survival. Each party is entitled to rely on the representations, warranties, indemnifications and agreements
of each of the other parties and all such representation, warranties and agreement shall be effective regardless of any investigation
that any party has undertaken or failed to undertake. The representations, warranties and agreements shall survive the Closing
Date and continue in full force and effect until one (1) year after the Closing Date.

 

10.2 Further
Assurances and Provision of Information. Each of the parties hereto shall co-operate with the others and execute and deliver
to the other parties hereto such other instruments and documents and take such other actions as may be reasonably requested from
time to time by any other party hereto as necessary to carry out, evidence, and confirm the intended purposes of this Agreement.
RGRI agrees to provide such information as requested by PHIL in a timely manner prior to Closing Date.

 

10.3 Amendment.
This Agreement may not be amended except by an instrument in writing signed by each of the parties.

 

10.4 Expenses.
Except as otherwise stated in this Agreement, RGRI shall pay and be responsible for the expenses incurred by both parties
in connection with the preparation, execution, and performance of this Agreement and the Transaction contemplated hereby, including
all fees and expenses of agents, representatives, counsel, and accountants.

 

10.5 Entire
Agreement. This Agreement, the schedules attached hereto and the other documents in connection with this transaction contain
the entire agreement between the parties with respect to the subject matter hereof and supersede all prior arrangements and understandings,
both written and oral, expressed or implied, with respect thereto. Any preceding correspondence or offers are expressly superseded
and terminated by this Agreement.

 

10.6 Notices.
All notices and other communications required or permitted under to this Agreement shall be sent to the addresses exchanged
by the parties hereto for this purpose, as may from time to time be updated by one party to the other, must be in writing and
shall be deemed given if sent by personal delivery, faxed with electronic confirmation of delivery, internationally-recognized
express courier or registered or certified mail (return receipt requested), postage prepaid, to the parties at the addresses specified
by a party to the others from time to time for notice purposes. All such notices and other communications shall be deemed to have
been received:

 

(a) in
the case of personal delivery, on the date of such delivery;

 

(b) in
the case of a fax, when the party sending such fax has received electronic confirmation of its delivery;

 

(c) in
the case of delivery by express overnight courier, on the second business day following dispatch; and,

 

(d) in
the case of mailing, on the fifteenth business day following mailing.

 

If
to RGRI:

 

Rush
Gold Royalty Inc.

Attn:
Johnny Park, Executive Chairman

3183
Wilshire Blvd, Suite 196 K33

Los
Angeles, CA 90010

Email:
johnnieparc@gmail.com

 

    	 	12	 

    	 

    

 

If
to PHIL:

 

PHI
Group, Inc.

Attn:
Henry D Fahman, Chairman & CEO

5348
Vegas Drive, # 237

Las
Vegas, NV 89108, U.S.A.

Fax:
702-472-8556

Email:
henry@phiglobal.com

 

10.7 Headings.
The headings contained in this Agreement are for convenience purposes only and shall not affect in any way the meaning or
interpretation of this Agreement.

 

10.8 Benefits.
This Agreement is and shall only be construed as for the benefit of or enforceable by those persons party to this Agreement.

 

10.9 Assignment.
This Agreement may not be assigned (except by operation of law) by any party without the consent of the other parties.

 

10.10 Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the Republic of Singapore and the
laws of the Republic of Indonesia with respect to the acquisition of the Acquired Assets, where appropriate.

 

10.11 Gender. All
references to any party shall be read with such changes in number and gender as the context or reference requires.

 

10.12 Counterparts. This
Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement and shall
become effective when one or more counterparts have been signed by each of the parties and delivered to the other parties, it
being understood that all parties need not sign the same counterpart.

 

10.13 Fax
Execution and/or Scanned Copy. This Agreement may be executed by delivery of executed signature pages by fax or scanned
copy and such fax execution or scanned copy shall be effective for all purposes.

 

10.14 Independent
Legal Advice. RGRI confirms that he has been given an opportunity to seek and obtain independent legal advice prior to
execution of this Agreement and cannot and does not rely on the representations of PHIL or its advisors respecting the legal
effects of this Agreement.

 

10.15 Schedules
and Exhibits. The schedules and exhibits that are attached to this Agreement are incorporated herein.

 

10.16 References.
Unless otherwise explicitly stated, all references to a “Section” “Schedule” or Exhibit”
herein refer to a section, schedule or exhibit in and to this Agreement.

 

    	 	13	 

    	 

    

 

SCHEDULE
1

 

TO
THE AGREEMENT OF PURCHASE AND SALE

DATED
SEPTEMBER 2, 2017 BETWEEN PHIL AND RGRI

 

51%
of the Acquired Assets Listed Below

 

The
following sets out the Acquired Assets to be exchanged for cash and marketable securities pursuant to the Agreement:

 

	Description:	 	Fifty-one
    percent (51%) ownership in twenty-one (21) mining claims in the Granite Mining District, Grant County, Oregon.
	 	 	 
	Location:
    	 	Situated
    five miles northeast of the town of Granite, Grant County, Oregon near Granite Creek, within a precious metals belt 30-40
    miles wide (N-S) and 100 miles long (E-W); coincident with the core of the Blue Mountains, along the Snake River.
	 	 	 
	Surface
    areas:	 	Approximately
    400 acres.
	 	 	 
	Estimated
    recoverable Precious metals:	 	574,259
    tons in situ.
	 	 	 
	Legal
    status:	 	Clean
    and Clear.
	 	 	 
	Licenses
    Permits:	 	Current
    and valid mining claims. 
	 	 	 
	List
    of Site Claims:	 	See
    attached.

 

    	 	14	 

    	 

    

 

SCHEDULE
2

 

TO
THE AGREEMENT OF PURCHASE AND SALE

DATED
SEPTEMBER 2, 2017 BETWEEN PHIL AND RGRI

 

Title
of Acquired Assets

 

	1.	Owned
                                         and fully paid.

 

    	 	15	 

    	 

    

 

SCHEDULE
3

 

TO
THE AGREEMENT OF PURCHASE AND SALE

DATED
SEPTEMBER 2, 2017 BETWEEN PHIL AND RGRI

 

Impairments
to Title of Acquired Assets

 

None

 

    	 	16	 

    	 

    

 

SCHEDULE
4

 

TO
THE AGREEMENT OF PURCHASE AND SALE

DATED
SEPTEMBER 2, 2017 BETWEEN PHIL AND RGRI

 

Licenses
and Permits

 

	1)	Current
    status of claims by U.S. Department of the Interior, Bureau of Land Management.

 

    	 	17	 

    	 

    

 

SCHEDULE
5

 

TO
THE AGREEMENT OF PURCHASE AND SALE

DATED
SEPTEMBER 2, 2017 BETWEEN PHIL AND RGRI

 

Exceptions

 

None

 

    	 	18	 

    	 

    

 

SCHEDULE
6

 

TO
THE AGREEMENT OF PURCHASE AND SALE

DATED
SEPTEMBER 2, 2017 BETWEEN PHIL AND RGRI

 

PAYMENT
METHOD

TOTAL
PURCHASE PRICE:      US$25,000,000

 

	 	1)	CASH
    AND DEMAND PROMISSORY NOTE:	$5,000,000

 

(The
cash portion will be determined by the parties hereto prior to Closing and the Demand Promissory Note shall have the form and
Notice of Demand of Payment as attached herewith)

 

	 	 	Time
    of Delivery:	On
    or prior to Closing Date.

 

	 	2)
    	SERIES
    II CLASS A PREFERED STOCK:
	 	 	 
	 	 	Amount:	US$20,000,000
	 	 	 	 
	 	 	Time
    of Delivery:	On
    or prior to Closing.
	 	 	 	 
	 	 	Terms
    of Class A Preferred Stock:	 

 

	 	 	Original
    Price Per Share:	US$5.00
	 	 	Dividend
    rate:	8%
    per annum, cumulative.
	 	 	Redeemable:	120%
    premium to Original Price Per Share
	 	 	Convertibility:	Convertible
    into PHI Group, Inc.’s Common Stock at 25% discount to Market Price, as defined below:

 

“Each
share of our Series II Class A Preferred Stock shall be convertible into the Company’s Common Stock any time six months
from the date of issuance at a Variable Conversion Price (as defined herein) of the Common Stock. The “Variable Conversion
Price” shall mean 75% multiplied by the Market Price (as defined herein) (representing a discount rate of 25%). “Market
Price” means the average Trading Price for the Company’s Common Stock during the ten (10) trading-day period ending
one trading day prior to the date the Conversion Notice is sent by the Holder of the Preferred Stock to the Company via facsimile
or email (the “Conversion Date”). “Trading Price” means, for any security as of any date, the closing
price on the OTC Markets, OTCQB, NASDAQ Stock Markets, or applicable trading market as reported by a reliable reporting service
(“Reporting Service”) mutually acceptable to the Company and Holder of the Preferred Stock.” The amount of shares
of Common Stock to be received by Holder at the time of conversion will be based on the following formula:

 

	 	 	OPS
+ AUD	Where
    CS: Common Shares
	 	 	CS
    = ———————	OPS:
    Original Price per Share of Preferred Stock
	 	 	MP*0.75	AUP:
    Accrued and Unpaid Dividends
	 	 	 	MP=
    Market Price as defined above

 

Redemption:    The
Company, after a period of one year from the date of issuance, may at any time or from time to time redeem the Preferred Stock,
in whole or in part, at the option of the Company’s Board of Directors, at a price equal to one hundred twenty percent (120%)
of the purchase price of the unit, plus, in each case, accumulated and unpaid dividends to the date fixed for redemption.

 

    	 	19	 

    	 

    

 

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

 

	PHI
    GROUP, INC.	 	RUSH
GOLD ROYALTY INC.
	a
    Nevada corporation	 	A
Wyoming corporation

 

	By:	/s/
    Henry D Fahman	 	By:	/s/
    Johnny Park
	 	Henry
    D Fahman	 	 	Johnny
    Park
	 	Chairman
    & CEO	 	 	 Executive
    Chairman

 

AMERICAN
PACIFIC RESOURCES, INC.

A
Wyoming corporation

 

	By:	/s/
    Henry D Fahman	 
	 	Henry
    D Fahman	 
	 	Executive
    Chairman	 

 

    	 	20	 

    	 

    

 

 

    	 		 

    	 

    

 

 

    	 		 

    	 

    

 

 

    	 		 

    	 

    

 

NEITHER
THIS NOTE NOR THE SECURITIES INTO WHICH THIS NOTE IS CONVERTIBLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “ACT”) OR ANY STATE SECURITIES LAWS AND NEITHER THIS NOTE NOR ANY INTEREST THEREIN NOR THE SECURITIES INTO WHICH
THIS NOTE IS CONVERTIBLE MAY BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER SUCH ACT AND SUCH LAWS OR AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT AND SUCH LAWS.

 

DEMAND
PROMISSORY NOTE

 

	Principal
    Amount: $_____________	Issue
    Date: September ___, 2017 
	 	Maturity
    Date: _______________

 

For
good and valuable consideration, PHI Group, Inc. a Nevada corporation (“Maker”), hereby makes and delivers
this Demand Promissory Note (this “Note”) in favor of Rush Gold Royalty Inc., a Wyoming corporation,
or its assigns (“Holder”), and hereby agrees as follows:

 

ARTICLE
I.

PRINCIPAL
AMOUNT

 

Section
1.1 For value received, Maker promises to pay to Holder at such place as Holder or its assigns may designate in writing,
in currently available funds of the United States, upon demand from time to time by the Holder until the principal sum of $_______________
is paid in full.

 

Section
1.2

a.
All payments
shall be applied to principal
and shall be credited to the
Maker’s account on the date that such
payment is physically received by
the Holder.

 

b.
All principal
then outstanding shall be due and payable
by the Maker to the Holder
on or before __________________(the “Maturity
Date”).

 

c.
This Note is free from all taxes, liens, claims
and encumbrances with respect to the issue thereof and shall not be subject to preemptive rights or other similar rights of shareholders
of the Maker and will not impose personal liability upon the holder thereof.

 

Section
1.3 This Note is issued as part the Purchase and Sale Agreement among PHI Group, Inc., its wholly owned subsidiary
American Pacific Resources, Inc., and Rush Gold Royalty Inc. dated September 2, 2017 by Maker and Holder, and attached
herewith.

 

ARTICLE
I.

DEMAND
OF PAYMENTS

 

Section
2.1 Demand of Payment by Holder. The principal balance of this Note shall be paid to the Holder hereof on demand by the Holder
at any time before and until the Maturity Date when the final outstanding principal will become immediately due. At it discretion,
the Holder may demand the Maker to pay such reasonable payment amounts towards the then outstanding principal from time to time
until it is paid in full by the Maturity Date. The Default Amount (defined herein), if applicable, shall be paid to Holder hereof
on demand by the Holder at any time such Default Amount becomes due and payable to Holder.

 

    	 	 	 

    	 

    

 

Section
2.2. General Payment Provisions. This Note shall be paid in lawful money of the United States of America by check or wire
transfer to such account as the Holder may from time to time designate by written notice to the Company in accordance with the
provisions of this Note. Whenever any amount expressed to be due by the terms of this Note is due on any day which is not a Business
Day (as defined below), the same shall instead be due on the next succeeding day which is a Business Day.

 

Section
2.4. For purposes of this Note, “Business Day” shall mean any day other than a Saturday, Sunday or a day on which
commercial banks in the State of Massachusetts are authorized or required by law or executive order to remain closed.

 

ARTICLE
III.

EVENTS
OF DEFAULT

 

Section
3.1. Default. The following events shall be defaults under this Note: (“Events of Default”):

 

(a)
default in the due and punctual payment of all
or any part of any payment of the Principal Amount as and when such amount or such part thereof shall become due and payable upon
demand from Holder hereunder; or

 

(b)
failure on the part of the Maker duly to observe
or perform in all material respects any of the covenants or agreements on the part of the Maker contained herein (other than those
covered by clause (a) above) for a period of 5 business days after the date on which written notice specifying such failure, stating
that such notice is a “Notice of Default” hereunder and

 

(c)
demanding that the Maker remedy the same, shall
have been given by the Holder by registered or certified mail, return receipt requested, to the Maker; or

 

(d)
any representation, warranty or statement of
fact made by the Maker herein when made or deemed to have been made, false or misleading in any material respect; provided,
however, that such failure shall not result in an Event of Default to the extent it is corrected by the Maker within a
period of 5 business days after the date on which written notice specifying such failure, stating that such notice is a “Notice
of Default” hereunder and demanding that the Maker remedy same, shall have been given by the Holder by registered or certified
mail, return receipt requested; or

 

(e)
any of the following actions by the Maker pursuant
to or within the meaning title 11, U.S. Code or any similar federal or state law for the relief of debtors (collectively, the
“Bankruptcy Law”): (A) commencement of a voluntary case or proceeding, (B) consent to the entry of an order for relief
against it in an involuntary case or proceeding, (C) consents to the appointment of a receiver, trustee, assignee, liquidator
or similar official under any Bankruptcy Law (each, a “Custodian”), of it or for all or substantially all of its property,
(D) a general assignment for the benefit of its creditors, or (E) admission in writing its inability to pay its debts as the
same become due; or

 

    	 	2	 

    	 

    

 

(f)
entry by a court of competent jurisdiction of
an order or decree under any Bankruptcy Law that: (A) is for relief against the Maker in an involuntary case, (B) appoints a Custodian
of the Maker or for all or substantially all of the property of the Maker, or (C) orders the liquidation of the Maker, and such
order or decree remains unstayed and in effect for 60 days.

 

Section
3.2. Remedies Upon Default. Upon the occurrence of an event of default by Maker under this Note or at any
time before default when
the Holder reasonably feels insecure, then, in addition to all other rights
and remedies at law or in equity, Holder may exercise any one or more of the following rights and remedies:

 

a.
Accelerate the time for payment of all amounts
payable under this Note by written notice thereof to Maker, whereupon all such amounts shall be immediately due and payable.

 

b.
Pursue any other rights or remedies available
to Holder at law or in equity.

 

Section
3.3. Payment of Costs. The Maker shall reimburse the Holder, on demand, for any and all reasonable costs and expenses,
including reasonable attorneys’ fees and disbursement and court costs, incurred by the Holder in collecting or otherwise
enforcing this Note or in attempting to collect or enforce this Note.

 

Section
3.4. Powers and Remedies Cumulative; Delay or Omission Not Waiver of Default. No right or remedy herein conferred upon
or reserved to the Holder is intended to be exclusive of any other right or remedy available to Holder under applicable law, and
every such right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy
given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy
hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy. No
delay or omission of the Holder to exercise any right or power accruing upon any Default occurring and continuing as aforesaid
shall impair any such right or power or shall be construed to be a waiver of any such Default or an acquiescence therein; and
every power and remedy given by this Note or by law may be exercised from time to time, and as often as shall be deemed expedient,
by the Holder.

 

Section
3.5. Waiver of Past Defaults. The Holder may waive any past default or Event of Default hereunder and its consequences
but no such waiver shall extend to any subsequent or other default or Event of Default or impair any right consequent thereon.

 

Section
3.6. Waiver of Presentment etc. The Maker hereby waives presentment, demand, notice, protest and all other demands
and notices in connection with the delivery, acceptance, performance and enforcement of this Note, except as specifically provided
herein.

 

    	 	3	 

    	 

    

 

ARTICLE
IV.

MISCELLANEOUS

 

Section
4.1. Notices. Any notice herein required or permitted to be given shall be in writing and may be personally served
or delivered by courier or sent by United States mail and shall be deemed to have been given upon receipt if personally served
(which shall include telephone line facsimile transmission) or sent by courier or three (3) days after being deposited in the
United States mail, certified, with postage pre-paid and properly addressed, if sent by mail. For the purposes hereof, the address
of the Holder shall be 3183 Wilshire Blvd, Suite 196 K33 Los Angeles, CA 90010; and the address of the Maker shall be 5348 Vegas
Drive, # 237, Las Vegas, NV 89108. Both the Holder or its assigns and the Maker may change the address for service by delivery
of written notice to the other as herein provided.

 

Section
4.2. Amendment. This Note and any provision hereof may be amended only by an instrument in writing signed by the Maker
and the Holder.

 

Section
4.3. Assignability. This Note shall be binding upon the Maker and its successors and assigns and shall inure to be
the benefit of the Holder and its successors and assigns; provided, however, that so long as no Event of Default has occurred,
this Note shall only be transferable in whole subject to the restrictions contained in the restrictive legend on the first page
of this Note.

 

Section
4.4. Governing Law. This Note shall be governed by the internal laws of the State of Nevada,
without regard to conflicts of laws principles.

 

Section
4.5. Replacement of Note. The Maker covenants that upon receipt by the Maker of evidence reasonably satisfactory to
it of the loss, theft, destruction or mutilation of this Note, and in case of loss, theft or destruction, of indemnity or security
reasonably satisfactory to it (which shall not include the posting of any bond), and upon surrender and cancellation of such Note,
if mutilated, the Maker will make and deliver a new Note of like tenor.

 

Section
4.6. This Note shall not entitle the Holder to any of the rights of a stockholder of the Maker, including without limitation,
the right to vote, to receive dividends and other distributions, or to receive any notice of, or to attend, meetings of stockholder
or any other proceedings of the Maker, unless and to the extent converted into shares of Series II Class A Convertible Cumulative
Redeemable Preferred Stock of the Maker or Common Stock of American Pacific Resources Inc. in accordance with the stipulated in
the referenced Purchase and Sale Agreement between the Holder and the Maker.

 

Section
4.7. Severability. In case any provision of this Note is held by a court of competent jurisdiction to be excessive
in scope or otherwise invalid or unenforceable, such provision shall be adjusted rather than voided, if possible, so that it is
enforceable to the maximum extent possible, and the validity and enforceability of the remaining provisions of this Note will
not in any way be affected or impaired thereby.

 

Section
4.8. Headings. The headings of the sections of this Note are inserted for convenience only and do not affect the meaning
of such section.

 

Section
4.9. Counterparts. This Note may be executed in multiple counterparts, each of which shall be an original, but all
of which shall be deemed to constitute one instrument.

 

    	 	4	 

    	 

    

 

IN
WITNESS WHEREOF, with the intent to be legally bound hereby, the Maker as executed this Demand Promissory Note as of the date
first written above.

 

	PHI Group, Inc.	 
	 	 
	 	 	 
	By: 	Henry Fahman	 
	Its: 	CEO	 

 

	Acknowledged and Agreed:	 
	 	 
	Rush Gold Royalty Inc.	 
	 	 
	 		 
	By: 	Johnny Park	 
	Its: 	Executive Chairman	 

 

    	 	5	 

    	 

    

 

EXHIBIT
1

NOTICE
OF DEMAND

FOR PAYMENT

 

 

 

(To
be executed by the Holder in order to demand payment)

 

TO:
PHI Group, Inc.

 

The
undersigned hereby irrevocably elects to demand a payment of US$ _______of
the Outstanding Principal Amount of the above Demand Promissory Note owed by PHI Group, Inc., according to the conditions stated
therein, as of the date written below. No fee will be charged to the Holder for any demand.

 

Demand
Date: _______________________________________________________

 

Amount
: $_________________________________

 

Name:                                     ____________________________________________________

 

Address:                                ____________________________________________________

 

                                                ____________________________________________________

 

Tax
I.D. or Soc. Sec. No:       ____________________________________________________

 

Amount
of Note outstanding after Demand of Payment:

 

$_____________________________________________

 

Signature:
______________________________________

                   Name
and Title

 

    	 	6

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