Document:

Unassociated Document

 

Exhibit 10.1

Lease Contract

Party A: State-Operated Shouguang Qingshuibo Farm

Party B: Shouguang Haoyuan Chemical Industry Co., Ltd.

Party A owns an abandoned bromine pruduction facility in the State-Operated Shouguang Qingshuibo Farm, which facility has been left unused with no production running due to lack of funding invested in it at that time.  In order to revitalize the asset and increase the Farm's revenues, Party A plans to lease the said asset facilities to another party.  Party B is a lawful enterprise registered and established in Shouguang City, and has the intention to increase its production scale.  Through friendly consultation, the Parties have, on the basis of equality and mutual benefit, reached the following agreement:

1. Party A will lease the abovementioned bromine production plant area and all the abandoned facilities to Party B.  Party B will invest and build the new bromine production facilities on the original basis.

2. The lease term is 20 years, commencing from January 1, 2011 and ending on December 31, 2030.  Upon expiry of the 20-year contract term, Party B has the right to sign another lease contract based on the same terms and conditions.  If Party B states that it no longer intends to renew the lease, all the production facilities of the bromine factory, whether previously owned by Party A or newly built by Party B with its investment, shall be recovered by Party A at no cost and ownd by Party A.

3. Within the contract term, the abovementioned production facilities shall be owned by Party B, and Party B shall have the rights of use, lease, revenues and mortgage thereto, which Party A shall not interfere.

4. The rental is RMB 5 million per year, to be fully paid in a lump sum by June 30 each year.  The first payment of the rental shall be made on June 30, 2011.

5. Party A must deliver all the facilities to Party B by November 15, 2010.  Party B shall organize a construction team to carry out the renovation construction; however, the rental due shall commence from January 1, 2011, and the period from November 15, 2010 to December 31, 2010 shall be a rent-free period.

6. Party A shall give the authority to Party B to build another 100 brine water drilling wells within the range of the land owned by Party A, the locations of which wells shall be selected by Party B, and shall provide the facilitation for the construction of corresponding brine water transmission ditches needed by the 100 brine water wells.  The land lease fees for the land occupied by these 100 brine water wells and the corresponding brine water transmission ditches shall have been included in the abovementioned rentals, for which land Party A shall not charge land lease fees additionally.  However, Party B shall, in the event that it intends to add more brine water drilling wells as required by production, otherwise consult with Party A and calculate the fees to be charged.

  

  

  

 

7. Within the contract term, Party B shall pay the rent on time.  If the payment of any rent due is delayed by more than 6 months, Party A shall be entitled to terminate the contract and recover all the facilities of the bromine factory.

8. Any dispute arising between the parties within the cooperation period shall be resolved through consultation on the basis of the principle of friendly consultation; if the consultation fails, a suit may be filed with the Shouguang Municipal People's Court.

9. This Contract is made in two copies, and shall become effective upon signing by the parties.

 

 

Party A: State-Operated Shouguang Qingshuibo Farm

/company seal/

/s/ (not legible)

Party B: Shouguang Haoyuan Chemical Industry Co., Ltd.

/company seal for contract use/

/s/ (not legible)

November 5, 2010Unassociated Document

 

Exhibit 10.2

Supplementary Agreement

 

Whereas the State-Operated Shouguang Qingshuibo Farm (hereinafter, “Party A”) and Shouguang Haoyuan Chemical Industry Co., Ltd. (hereinafter, “Party B”) consulted and communicated with each other in connection with the unclear matters in the lease contract entered into on November 5, 2010 through the Parties’ active communications, taking into account Party A’s funding issue and intention of increasing the Farm’s revenues by revitalizing the assets as well as Party B’s own production situation and the current market price of bromine and its intention to increase production volume, the Parties have made the following supplementary explanations on the relevant matters agreed upon in oral form simultaneously with the signing of the lease contract:

	
1.

	
The rent of RMB  5 million per year, which was agreed upon in the original contract by the Parties, cover both the production facilities area covering a land of 3,192 square meters and the areas of the 100 brine water wells to be built by Party B in the future and the corresponding water conveyance canals as the supporting facilities.

	
2.

	
At the time of execution of the contract, the bromine facilities referred to in the contract were not  being used; therefore, Party A sent over some staff members of the Farm to reside in the office area of the facilities as their dormitory, which also enable them to guard over the equipment in the area.  There were tractors, rotary cultivators, laminators and other farmland production machineries and relevant ancillaries in the factory area.  It was difficult to make new arrangements for the staff when the New Year Holiday was imminent, and the Parties therefore orally agreed that the actual delivery should be made after the New Year Holiday of 2011 (i.e., after January 1, 2011), in which period Party A was to actively dispose of the equipment stored in the bromine facilities area but not used for bromine production and consider the new accommodation arrangement for the Farm’s staff members.  However, Party A failed to complete, in the timely manner, the clear-up of the bromine factory within the rent-free period, and Party B was unable to proceed with the renovation within the rent-free period.

	
3.

	
The actual delivery of the said assets between the Parties took place on January 10, 2011.  A delivery list is attached hereto.  The land use taxes with which Party B is concerned pursuant to the original contract shall be borne by Party B.  In the event of any adjustment of State policies during the land use term, Party A shall, to the extent that its actual conditions allow, offer Party B the corresponding replacement of land, or shall compensate Party B for the construction costs for building the facilities on that land, if its actual conditions do not allow.

	
4.

	
Party B may, under the circumstances of meeting its own production need, carry out renovations, expansions, etc. of the original equipment in the factory area within the lease term, for which Party A shall, under the circumstance when providing corresponding and necessary assistance, not interfere the renovations and expansions carried out by Party B.  Party B shall, pursuant to the scope set forth in the original Lease Contract, ensure the lawful use of the said factory area and the land provided by Party A to Party B for its construction of brine water wells.  In the occurrence of any penalties by governmental departments or other problems, Party B shall be responsible for such penalties or problems and bear the losses caused to Party A.

 

  

  

  

We hereby make the explanations.

	
Party A (signature and seal):

 

/seal of the State-Operated Shouguang Qingshuibo Farm/

/s/ Li Changjun

 

 

 

March 1, 2011

	
Party B (signature and seal):

 

/company seal for contract use: Shouguang Haoyuan Chemical Industry Co., Ltd./

/s/ (not legible)

 

	
List of Leased Equipment

(Second Branch of) the First Factory of Shouguang Haoyuan Chemical Industry Co., Ltd.

	
S/N

	
Fixed Assets:

	
Quantity

	  
	
1

	
Single-floor office house

	
1

	  
	
2

	
Foam catchers

	
2

	  
	
3

	
Factory area

	
1

	  
	
4

	
Garage

	
1

	  
	
5

	
Depositing tank

	
2

	  
	
6

	
Stripping tower

	
2

	  
	
7

	
Ground scale

	
1

	  
	
8

	
Electric pump

	
1

	  
	
9

	
Air blower

	
1

	  
	
10

	
High/low voltage line

	
2

	  
	
11

	
Boiler

	
1

	  
	
12

	
Boiler house

	
1

	  
	
13

	
Self-propelled crane

	
1

	  
	
14

	
Testing room

	
1

	  
	
15

	
Sulphur furnace

	
1

	  
	
16

	
Sulphur furnace and sulphur storage

	
2

	  
	
17

	
Sulfuric acid tank

	
2

	  
	
18

	
Brine pump

	
1

	  
	
19

	
Brine reservoir

	
1

	  
	
20

	
Gasifier

	
1

	  
	
21

	
Clean water pond

	
1

	  
	
22

	
Living quarters

	
1

	  
	
23

	
Bath tower

	
1

	  
	
24

	
Pond for finished liquid

	
1

	  
	
25

	
Absorption tower

	
2

	  
	
26

	
Shower room

	
1

	  
	
27

	
Water storage tank

	
1

	  
	
28

	
Chlorine cyliner

	
1

	  
	
29

	
Distillation building

	
2

	  
	
30

	
Central control room

	
1

	  
	
31

	
Bromine tank

	
1

	  

	
Party A (signature and seal):

 

/seal of the State-Operated Shouguang Qingshuibo Farm/

/s/ Li Changjun

 

 

 

March 1, 2011

	
Party B (signature and seal):

 

/company seal for contract use: Shouguang Haoyuan Chemical Industry Co., Ltd./

/s/ (not legible)exhibit_10-1.htm

EXHIBIT 10.1

Proposed Summary of Terms

Reverse Merger and Private Placement

July 20, 2010

                                      

 

	 Public Entity:	WestMountain Index Advisors (“WMTN”)
	 	 
	 Target: 	Terra Mining Corporation  (“TERRA”)
	 	 
	Advisor and Placement Agent:	TBD
	 	 
	 TERRA Shares Outstanding:	TERRA will have no more than 7,500,000 fully diluted shares outstanding prior to the Merger.
	 	 
	 Reverse Merger:    	WMTN will issue to TERRA common stock of WMTN in exchange for all (100%) of TERRA’s capital stock.  A fixed exchange ratio will be calculated such that at the closing of the Reverse Merger, WMTN will own 15% of the combined company’s common stock.  The public company will have $175,000 cash on the balance sheet at closing.
	 	 
	 Composition of Board:  	The combined company’s Board of Directors shall consist of five (5) members; (1) to be appointed by BOCO, two (2) to be appointed by TERRA and two (2) to be mutually agreed upon by both BOCO and TERRA.
	 	 
	 Lock Up:    	TERRA shareholder’s owning in excess of 1% will be required to sign a two (2) year lock up.  After one (1) year, the shareholder may sell up to 5% or Rule 144 limitation of their shares every quarter.
	 	 
	 Conditions of Closing:	The reverse merger will not be completed until the following conditions are satisfied:
	 	

1. Satisfactory due diligence by  Board of TERRA completed on the shell.

	 	

2. Approval (simple majority) of merger by TERRA shareholders.

	 	

3. All of the Lock Ups are signed by TERRA shareholders.

	 	

4. Satisfactory due diligence completed by WMTN on TERRA.

	 	 
	 Advisor Fees:	An advisory fee of 1,650,000 warrants to purchase shares of Common stock at $.001 per share will be paid as an advisory fee to Advisor.  The Placement Agent Warrants shall contain the customary anti-dilution rights, piggyback registration rights and contain a cashless exercise provision
	 	 
	 Private Placement:   	Simultaneous with the close of the Reverse Merger, WMTN will close on a $1,000,000 Private Placement.  WMTN will sell $.50 units consisting of one (1) shares of common stock and one (1) common stock purchase warrant.  The Warrant shall be  exercisable at $.75 per share.
	 	 
	 Description of Warrant    	The warrant shall be exercisable for a period of five (5) years.  The Warrant shall contain customary anti-dilution rights (for stock splits, stock dividends and sales of substantially all the company’s assets) and customary blockage language to limit ownership to less that 5%. The company shall use its best efforts to file a registration statement registering the shares underlying the warrants within ninety (90) days of the close of the offering.  The warrant shall be callable if the shares of the underlying warrants are registered and the combined company’s stock has a closing bid price above $1.00 for 20 out of 30 consecutive trading days with volume in excess of 50,000 shares per day.

 

 

  

1

  

 

	 	 
	 Placement Agent Fees:  	8% cash commission and 8% warrant coverage on all securities sold. The Placement Agent Warrant shall be exercisable for a period of five (5) years at an exercise price equal to the securities sold.  Placement Agent Warrants shall contain the customary anti-dilution rights, piggyback registration rights and contain a cashless exercise provision.
	 	 

	

Summary Capitalization Table:

	 American Mining Shareholders   	 500,000	  2.9%
	 	 Founders  	 7,000,000	 41.2%
	 	 WMTN  	 2,200,000	 12.9%
	 	 WMTN Cash 	 350,000	 2.1%
	 	 BOCO Additional Investment   	  1,000,000	 5.9%
	 	 Fund Raising Group  	 800,000	 4.7%
	 	 Silver Verde  May	 500,000	 2.9%
	 	 New Equity Investors 	  2,000,000	 11.8%
	 	 Total Shares	 14,350,000	 84.4%
	 	 	 	 
	 	 ITH Shares   	 1,000,000	 5.9%
	 	 	 	 
	 	 IB Warrants - M Lavigne Group 	 1,000,000	 5.9%
	 	 IB Warrants – WASM  	 650,000	 3.8%
	 	 Total Warrants 	 1,650,000	 9.7%
	 	 	 	 
	 	 Total Shares plus Warrants  	 17,000,000	 

 

                                                                           

Accepted by:

/s/ Brian Klemsz

Brian Klemsz

WestMountain Index Advisors (WMTN)

/s/ Michael Lavigne

Advisor/Placement Agent

M Lavigne Group

/s/ Greg Schifrin

Greg Schifrin, CEO

Terra Mining Corporation

 

2

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