Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Sterling Group Ventures Inc. - Exhibit 10.5

 Exhibit 10.5 

 Cooperative Agreement for Lithium Metal and Lithium Salt
  Projects 

 On June 19, 2005, Jianzhong Chemicals Corporation (Hereafter
  “JIANZHONG”) and Sterling Group Ventures, Inc. (Hereafter “STERLNG”)
  negotiated about the cooperation for Lithium Metal and Lithium Salt Projects
  of Jianzhong Lithium and Calcium Corporation of JIANZHONG. The present companies
  and staff are as follows: 

 Jianzhong Chemicals Corporation: Jianbo Ding (Vice-general
  manager), Qi Yang, Dechun Zong, Shaoyu Xiong, Zongkui Qian, Liuan Ren, Dong
  Yang, Xiaoyong Zhang. 

 Sterling Group Ventures Inc.: Raoul Tsakok (Chairman) 

 JIANZHONG made a presentation about Lithium Metal and Lithium
  Salt Projects to STERLING. STERLING asked some concerned questions. JIANZHONG
  and STERLING discussed the cooperative pattern and reached the following agreement:

	 1.      	 Whereas STERLING is very interested in Lithium Metal
        and Lithium Salt Projects of JIANZHONG and JIANGZHONG intends to build
        large lithium metal and lithium salt projects. Both parties agree to joint
        venture develop Lithium Metal and Lithium Salt Projects. At the same time,
        STERLING is also interested in Calcium Metal Project and subject to further
        due diligence. 

	 
	 2.      	 Through negotiation, JIANZHONG and STERLING agree
        to set up a joint venture company for lithium metal production with capability
        of 800 tonnes per year based on the existing production line of 300 tonnes
        per year capacity and to set up another joint venture company for lithium
        salt production with capability of 3000 tonnes per year based on the existing
        production line. Raoul Tsakok of STERLING requests that STERLING should
        hold more than 50% of the joint venture companies and not control management
        of the production and operation. JIANZHONG indicates to take into account
        the request of STERLING. 

	 
	 3.      	 In order to speed up the process of cooperation,
        JIANZHONG hopes that Mr. Raoul Tsakok provides the background information
        of participant company, investment mode and cooperation pattern within
        30 days after signing this agreement. 

	 
	 4.      	 JIANZHONG will provide the related financial analysis
        of Lithium Metal Project within 30 days after signing this agreement.
      

	 
	 5.      	 There are four copies of this agreement. Each party
        holds two copies. 

	 
	 6.      	 Matters other than those provided herewith shall
        be dealt through further negotiations between the parties. 

	 

	 Jianzhong Chemicals Corporation  	 Sterling Group Ventures, Inc.  
	 	 
	 Signed by its representative  	 Signed by its representative  
	 	 
	 “Jianbo Ding”         
    	 “Raoul Tsakok”             
    
	 	 
	 Date: June 19, 2005  	 Date: June 19, 2005Filed by Automated Filing Services Inc. (604) 609-0244 - Phage Genomics, Inc. - Exhibit 10.1

 

 June 17, 2005 

 

 Mr. Ian Matheson 

  President & CEO 

  Phage Genomics, Inc. 

  2215 Lucerne Circle 

  Henderson, NV 

  89015 

  USA 

 Dear Ian: 

 Re:          Engagement Letter
  – US$2,000,000 Unit Offering 

 Further to our discussions, Clarion Finanz AG (“Clarion”)
  is pleased to outline the terms of an agreement pursuant to which we would be
  engaged by Phage Genomics, Inc. (to be renamed Searchlight Minerals Corp.) (the
  “Company”), to act as its agent for the private placement of up
  to 4,000,000 units of the Company’s common stock at a price of $0.50
  per unit, for gross proceeds of up to US$2,000,000, on terms mutually agreeable
  between the parties hereto, certain of which terms are set forth in Schedule
  A, annexed hereto and incorporated by reference (such private placement referred
  to as the “Offering”). Each unit (a “Unit”) shall consist
  of one common share and one-half of one share purchase warrant, each whole warrant
  exercisable into one additional share of the Company’s common stock for
  a period of nine months from the closing date of the Offering at a price of
  $1.25 per share. The Offering will be made on a best efforts basis subject
  to the terms and conditions set forth herein.

 The obligations of each party in respect of the Offering will
  be more fully set out in a formal agency agreement between the parties. Although
  this is a best efforts offering, the sections entitled “Fees and Expenses”
  and “Indemnity” below are binding obligations of all parties hereto
  immediately after this engagement letter has been executed and delivered by
  all parties, regardless of whether the Offering is completed. 

 SCHEDULE A 

 (ALL PRICES IN $US) 

	 Issuer:  	 Phage Genomics, Inc. (“Phage”
        or the “Company”)  

	  	 
	 Agent:  	 Clarion Finanz AG (the “Agent”) 
      

	  	 
	 Nature of the Offering: 
    	 Private Placement, reasonable
        best efforts.  

	  	 
	 Offering:  	 Up to 4,000,000 Units, each
        Unit convertible into one Common Share and one-half of one Common Share
        Purchase Warrant (each whole warrant a “Warrant”) to purchase
        for no additional consideration an additional share of the Company’s
        common stock for a period of nine months from the closing of the Offering
        at a price of $1.25 per share.

	  	 
	 Proceeds:  	 Up to $2,000,000. 
      

	  	 
	 Price:  	 $0.50 per Unit. 
      

	  	 
	 Use of Proceeds:  	 The proceeds will be used
        to fund exploration and/or development activities and to provide general
        working capital.

	  	 
	 Offering Jurisdictions: 
    	 United States, Europe and
        such other jurisdictions as the Agent may designate subject to notifying
        Phage not less than 3 business days prior to the Closing Date.

	  	 
	 Qualified Investors:  	 The Units will be issued
        only to: (i) accredited investors in the United States (as such term is
        defined in Rule 501 of the Securities Act of 1933), (ii) non-U.S. persons
        (as such term is defined in Regulation S of the Securities Act of 1933)
        pursuant to Regulation S of the Securities Act of 1933.

	  	 
	 Closing Date:  	 On or before July 11, 2005,
        or such other date mutually agreed upon by the Company and the Agent.

	  	 
	 Commission:  	 A cash payment equal to
        10% of the gross proceeds of the Offering.  

	  	 
	 Registration Right:  	 The Company shall use its
        best efforts to file with the Securities and Exchange Commission a registration
        statement on Form SB-2 registering the common stock underlying the Units
        (the “Registration Statement”) and have the registration statement
        declared effective within 120 days of the Closing of the Offering. The
        Company will be subject to a penalty of 10% of the number of Units offered
        should the Company fail to have the registration statement declared effective
        within 120 days of the Closing date.

	  	 
	 Broker’s Warrants: 
    	 As additional compensation
        in connection with the Offering, the Company will grant to the Agent non-assignable
        warrants (the ”Broker’s Warrants”) equal to 10% of the
        number of Units sold pursuant to the Offering. Each Broker’s Warrant
        will be exercisable by the Agent at a price of $0.50 for a period
        of nine months from the Closing Date.

 

	 Fees and Expenses:  	 The Company will be responsible for the
        expenses associated with the Offering, including printing costs, advertisements,
        filing fees, sponsorship fees (if applicable), corporate finance fees,
        legal, accounting and out-of-pocket expenses of the Agent.

	  	 
	 Indemnity:  	 In consideration of the Agent entering
        into this engagement letter, the Company shall indemnify the Agent in
        accordance with the terms of Schedule B hereto, which schedule forms part
        of this engagement letter. This indemnity shall be in addition to, and
        not in substitution of, any other liabilities the Company may have to
        the agent or either of them. The indemnity will apply to all services
        provided by the agent in connection with, or otherwise related to, the
        Offering.

	  	 
	 Due Diligence:  	 Beginning on the date hereof and at all
        times thereafter up to and including the Closing date of the Offering,
        the Company will provide the Agent and their professional advisors with
        all reasonable access to the personnel and internal financial, business
        and other information about the Company and its business as may be requested
        by the Agent in order to permit the Agent to complete a due diligence
        review of the Company.

	  	 
	 Right of First Refusal: 
    	 If the Offering is completed, the Company
        shall grant a right of first refusal (the “Right of First Refusal”)
        to the Agent to act as underwriter or agent in respect of any subsequent
        public offering or private placement of equity in Canada or the United
        States by the Company, or any of its subsidiaries or affiliates for a
        period of eighteen (18) months from Closing (the “Right of First
        Refusal Term”), subject to the Agent and the Company, acting reasonably,
        agreeing on the terms and conditions thereof.

	  	 
	  	 The Agent acknowledges that the Company
        has granted an identical right of first refusal to Dominick & Dominick
        Securities Inc. (“Dominick”) to act as underwriter or agent
        in respect of any subsequent public offering or private placement of equity
        in Canada or the United States by the Company during the Right of First
        Refusal Term, and agrees if it and Dominick both elect to exercise their
        right of first refusal during the Right of First Refusal Term in respect
        of any subsequent public offering or private placement of equity in Canada
        or the United States by the Company, to act as co- agent or co-underwriter
        on a 50/50 basis with Dominick (or such other proportion as may be agreed
        by Dominick and the Agent).

 The above Offering is subject, but not limited to the following: 

	 (a)      	 completion of due diligence to the satisfaction
        of the Agent and their legal counsel; 

	 
	 (b)      	 execution of a standard form agency agreement
        between the Company and the Agent including the following: 

	 
	 	 (i)     
      
	 customary conditions to the obligations of the Agent
        including: “disaster out” and “material adverse change
        out” clauses and the right of the Agent to terminate their obligation
        in the event that the Agent’s due diligence investigations identify
        any material adverse fact which exists as at the date hereof that has
        not been generally disseminated to the public will expire upon execution
        of the Agency Agreement which will occur no later than the closing date;
        and 

 

	 	(ii)
	 industry standard indemnification of the Agent.
      

	 
	 (d)      	 approval of the terms
        and conditions of the Offering by all of the appropriate regulatory authorities,
        as required. 

 We would ask that if the foregoing is in accordance with your
  understanding and is agreed to by yourself, that you kindly confirm your acceptance
  by signing the enclosed copy and returning the same to the undersigned’s
  attention as soon as possible. 

 Yours very truly, 

 CLARION FINANZ AG 

 /s/ Carlo Civelli 

 Carlo Civelli 

  Managing Director 

  

 

Agreed and accepted this 20th day of June, 2005. 

 PHAGE GENOMICS, INC. 

 /s/ K. Ian Matheson 

 Per: Ian Matheson 

  President & CEO 

 Schedule B 

 Form of Indemnity 

 In consideration for Clarion Finanz AG (the “Agent”)
  and any other Agent accepting the engagement (the “Engagement”)
  described in the engagement letter (the “Engagement Letter”) to
  which this Schedule “B” is attached, Phage Genomics, Inc., and its
  successor in name, Searchlight Minerals Corp. (the “Company”) agree
  to indemnify and save harmless each of the Agent and their respective affiliates,
  directors, officers, employees, partners, Agent, advisors and shareholders (collectively,
  the “Indemnified Parties” and individually, and “Indemnified
  Party”) from and against any and all losses, claims, actions, suites,
  proceedings, damages, liabilities or expenses of whatsoever nature of kind (excluding
  loss of profits), including the aggregate amount paid in reasonable settlement
  of any actions, suits proceedings, investigations or claims and the reasonable
  fees, disbursements and taxes of their counsel in connection with any action,
  suite proceeding, investigation or claim that may be made or threatened against
  any Indemnified Party or in enforcing this indemnity (collectively, the “Claims”)
  to which and Indemnified Party may become subject or otherwise involved in any
  capacity insofar as the Claims relate to, are caused by, result from, arise
  out of or are based upon, directly or indirectly, the Engagement whether performed
  before or after the Company’s execution of the Engagement Letter and to
  reimburse each Indemnified Party forthwith, upon demand, for any legal or other
  expenses reasonably incurred by such Indemnified Party in connection with any
  Claim. 

 The Company also agrees that no Indemnified Party will have
  any liability (either direct or indirect, in contract or tort or otherwise)
  to the Company or any person asserting claims on the Company’s behalf
  or in right for or in connection with the Engagement, except to the extent that
  any losses, expenses, claims, actions, damages or liabilities incurred by the
  Company are determined by a court of competent jurisdiction in a final judgment
  that has become non-appealable to have resulted from the gross negligence or
  willful misconduct of such Indemnified Party. 

 In the event and to the extend that a court of competent jurisdiction
  in a final judgment that has become non-appealable determines that an Indemnified
  Party was grossly negligent or guilty of willful misconduct in connection with
  a Claim in respect of which the Company has advanced funds to the Indemnified
  Party pursuant to this Indemnity, such Indemnified Party will reimburse such
  funds to the Company and thereafter this Indemnity will not apply to such Indemnified
  Party in respect of such Claim. The Company agrees to waive any right the Company
  might have of first requiring the Indemnified Party to proceed against or enforce
  any other right, power, remedy or security or claim payment from any other person
  before claiming under this indemnity. 

 In case any action, suit, proceeding or claim is brought against
  an Indemnified Party or an Indemnified Party has received notice of the commencement
  of any investigation in respect of which indemnity may be sought against the
  Company, the Indemnified Party will give the Company prompt written notice of
  any such action, suit, proceeding, claim or investigation of which the Indemnified
  Party ahs knowledge and the Company will undertake the investigation and defense
  thereof on behalf of the Indemnified Party, including the prompt employment
  of counsel acceptable to the Indemnified Parties affected and the payment of
  all expenses. Failure by the Indemnified Party to so notify will not relieve
  the Company of its obligation of indemnification hereunder unless (and only
  to the extend that) such failure results in forfeiture by the Company of substantive
  rights or defenses. 

 No admission of liability and no settlement, compromise or
  termination of any action, suit, proceeding, claim, or investigation will be
  made without the Company’s consent and the consent of the Indemnified
  Parties affected, such consents not to be unreasonably withheld. Notwithstanding
  that the Company will undertake the investigation and defense of any Claim,
  an Indemnified Party will have the right to employ separate counsel with respect
  to any Claim and 

 participate in the defense thereof, but the fees and expenses
  of such counsel will be at the expense of the Indemnified Party unless: 

	 	 (a)      	 employment of such counsel has been authorized in
        writing by the Company; 

	 
	 	 (b)      	 the company has not assumed the defense of the action
        within a reasonable period of time after receiving notice of the claim.
      

	 
	 	 (c)      	 The named parties to any such claim include both
        the Company and the Indemnified Party and the Indemnified Party will have
        been advised by counsel to the Indemnified Party that there may be conflict
        of interest between the Company and the Indemnified Party; or 

	 
	 	 (d)      	 There are one or more defenses available to the
        Indemnified Party which are different from or in addition to those available
        to the Company. 

 In which case such fees and expenses of such counsel to the
  Indemnified Party will be for the Company’s account. The rights accorded
  to the Indemnified Parties hereunder will be in addition to any rights and Indemnified
  Party may have at common law or otherwise. 

 If for any reason the foregoing indemnification is unavailable
  (other than in accordance with the terms hereof) to the Indemnified Parties
  (or any of them) or is insufficient to hold them harmless, the Company will
  contribute to the amount paid or payable by the Indemnified Parties as a result
  of such Claims in such proportion as is appropriate to reflect not only the
  relative benefits received by the Company or the Company’s shareholders
  on the one hand and the Indemnified Parties on the other, but also the relative
  fault of the parties and other equitable considerations which may be relevant.
  Notwithstanding the foregoing, the Company will in any event contribute to the
  amount paid or payable by the Indemnified Parties as a result of such Claim
  any amount in excess of the fees actually received by the Indemnified Parties
  hereunder. 

 The Company hereby constitutes Clarion Finanz AG as trustee
  for each of the other Indemnified Parties of the Company’s covenants under
  this indemnity with respect to such persons and Clarion Finanz AG each agree
  to accept such trust and to hold and enforce such covenants on behalf of such
  persons. 

 The Company agrees to reimburse the Agent monthly for the
  time spent by the Agent’s personnel in connection with any Claim at their
  normal per diem rates. The Company also agrees that if any action, suit, proceeding
  or claim is brought against, or an investigation commenced in respect of the
  Company or the Company and Agent and personnel of either of the Agent are required
  to testify, participate or response in respect of or in connection with the
  Engagement, such Agent will have the right to employ its own counsel in connection
  therewith and the Company will reimburse such Agent monthly for the time spent
  by its personnel in connection therewith at their normal per diem rates together
  with such disbursements and reasonable out-of-pocket expenses as may be incurred,
  including fees and disbursements of such Agent’s counsel.

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