Document:

Exhibit 10.2

AGREEMENT TO PURCHASE MINERALS

 

 

	
        Buyer:

         
	
        AuraSource, Inc.

        

         
	Seller:	
        Gulf Coast Mining Group, LLC

        

THIS AGREEMENT
TO PURCHASE MINERALS (the “Agreement”) is entered into as of February 9, 2012, by and between AuraSource, Inc.,
a corporation organized and existing under the laws of the State of Nevada (the “Buyer”), and Gulf Coast Mining
Group, LLC, a limited liability company organized and existing under the laws of the State of Nevada (the “Seller”)
(the Buyer and Seller being sometimes referred to herein individually as “Party” and collectively as the "Parties").

 

WHEREAS, the Seller
has agreed to supply (i) higher content iron ore, lower content iron ore and manganese ore (collectively, the "Minerals")
to the Buyer on a non-exclusive basis; and

 

WHEREAS, the Buyer
wishes to purchase from the Seller the Minerals, as described further in this Agreement, and Precious Metals as described in the
attachment hereto.

 

NOW THEREFORE, in
consideration of and based on the foregoing premises, the agreements contained herein and other valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the Buyer agrees to buy and the Seller agrees to sell the Minerals and Precious
Metals on the terms and conditions stated in this Agreement.

 

Section
1.               
Commodity.

 

	Name of Commodity:	Iron Ore and Manganese Ore
	Packing:	Loose in bulk
	Ports of Export:	Mexico
	Delivery:	
        Modified FOB -- Higher content 64%
        Fe iron ore 

        Modified FOB -- Lower content 45%
        Fe iron ore 

        Modified FOB -- Manganese ore 

 

Section
2.               
Term and Delivery Schedule.

 

2.1.  
Term.

 

This Agreement shall
commence on the date hereof and shall continue until the last scheduled delivery hereunder (the “Term”).

 

 

2.2.  
Delivery Schedule.

 

The first delivery
of each of the Minerals shall occur within a certain number of days following Pre-Payment, as that term is hereinafter defined,
or as may be otherwise agreed by the parties. The Seller shall arrange delivery of the Minerals during the Term in such amounts
per month as follows, such First Shipment being deemed Month 1 in the following table:

Section
3.               
Specifications.

 

3.1.  
Chemical Composition (on dry basis, percentage by weight).

3.2.  
 Moisture Content of Minerals (Free moisture loss at 105 degrees centigrade):

3.3.  
Physical Specification.

 

 

		Section 4.                Closing.	

 

4.1.  
Due Diligence.

 

The Buyer has conducted
due diligence regarding the Seller, its mining properties and related permits and has been given the opportunity to ask questions
and received such information as Buyer has deemed necessary and advisable, in its sole discretion, prior to execution of this Agreement.

The Seller confirms
that it has the right to sell the Minerals, that the Minerals are free from any and all encumbrances, and this agreement and the
sale of Minerals does not violate or is in conflict with any federal, state or local laws.

 

4.2.  
The Closing

 

The
execution of this Agreement and the closing of this transaction may take place remotely via the exchange of documents and signatures
and the wire transfer of the Pre-Payment shall occur within 30 days of the execution of this agreement and as that term is defined
below. Commencement of processing for Delivery of Minerals is subject to receipt by the Seller of the Pre-Payment, as that term
is defined below. If Buyer is delayed past 30 days in making its Pre-Payment to the Seller, Seller may terminate this Agreement,
return the Pre-Payment and neither party shall bear liability therefor.

 

Section
5.               
Price, Payment Terms and Delivery.

 

5.1.  
Base Price.

 

The price for each
of the Minerals shall be payable on a Modified FOB basis in United States Dollars as set forth below under Ex works (the
“Base Price”). To the extent Ex works price plus logistics to loading on vessel at port inclusive of Customs Docs and
Storage at the port (the "Actual FOB Cost") exceeds Modified FOB price, the ex-works price shall be reduced by said amount.
To the extent the Actual FOB Cost is less than the Modified FOB price, the Seller's Ex works price shall be increased by said amount;
provided, however, that third party fuel surcharges included as a term of Buyer's transportation contracts are Buyer costs outside
of the control of the Seller and shall not be included in the determination of any increase or decrease with respect to Modified
FOB price.

 

  

 

5.2.  
Pre-Payment.

 

(i)              
In order to commence the Delivery Schedule set forth in Section 2.2 hereof, the Buyer shall wire transfer to the Seller
a pre-payment to be applied to the first shipment of each of the Minerals (the “Pre-Payment”). The Seller shall provide
its bank wire coordinates to the Buyer by separate instruction.

 

(ii)            
Such Pre-Payment will be credited to the Buyer and shall reduce the payment due from Buyer with respect to the first shipment.
Amounts owed under the Seller's weekly invoices to the Buyer, as described below, shall be offset to the extent of any Pre-Payment
amount still existing as a credit to Buyer's account.

 

(iii)          
The Pre-Payments for each of the Minerals are:

 

5.3.  
Payment.

 

Payments of Seller's
invoices, following crediting of Buyer's Pre-Payment, shall be made in cash by wire transfer on Monday (the "Payment Date")
for all Minerals delivered to Delivery Site (as set forth in Section 5.1) on the Saturday, Sunday, Monday Tuesday, Wednesday, Thursday
and Friday preceding the Payment Date. In the event the Payment Date coincides with a banking holiday in the United States, the
wire transfer shall be made during banking hours on the day immediately following the banking holiday. Confirmation of payments
by wire transfer shall be made no later than 1:00PM Pacific Standard Time, on each Payment Date. The Seller's invoices shall be
based on (i) the analysis of chemical specifications, in accordance with Sections 6.1, 6.2 and 6.3; and (ii) the weight determined
at the railhead as described in Section 6.4. Seller shall provide its bank wire transfer instructions to Buyer by separate written
notification. Buyer grants Seller a security interest in all unpaid Minerals Delivered until fully paid.

 

In the event the
Buyer fails to make its cash wire transfer in the Seller's invoice amount as set forth above, then (i) Buyer's entitlement to the
iron ore shall be suspended until such time as it becomes current on its outstanding invoice(s); (ii) Seller shall be entitled
to sell any or all of its iron ore to another party; and (iii) Seller shall have no liability if it is does not provide sufficient
tonnage of iron ore, in accordance with the monthly production schedule during the one-month period following the month and if
Buyer has not made the payment on or before the date that is sixty (60) after the date during which such suspension of Seller's
entitlement occurs, Seller may terminate the Agreement with Buyer.

 

5.4.  
Logistics.

 

Modified FOB shall refer to the following:

 

(i) The Seller shall arrange
all logistics from the loading of the Minerals at the Delivery site and transport by truck and rail to the port and loading on
to the ship.

 

(ii) The Seller shall clear
the Minerals for export and provide appropriate invoicing and bills of lading to evidence transfer of title subject to payment.
The Seller shall perform customs, port storage, testing, export documentation and shipping arrangements for the first six months
from the first shipment date and shall assist the Buyer thereafter.

 

(iii)The Buyer shall pay or
assign letter of proceeds credit for all costs, duties, fees and other related expenses for the matters referenced in Sections
5.4(i) and 5.4(ii) above.

 

(iv)Neither of the parties
shall be liable to the other in the event of non-performance by the logistics company.

 

5.5.  
Title and Risk.

 

The title to the Minerals
shall pass immediately from Seller to Buyer (i) upon wire transfer of the Pre-Payment described in Section 5.2(i); and, thereafter,
(ii) upon Seller's receipt of payment minus advanced amounts set forth in Section 5.4 (iii)via wire transfer as set forth in Section
5.3. All risk of loss, damage or destruction respecting the iron ore shall pass to Buyer when Buyer takes physical possession of
the Minerals.

 

Section
6.               
Weight and Analysis.

 

6.1.  
Seller's Certificate; Pre-Delivery Adjustments.

 

Seller's certificate regarding
conformance with contract specifications based on its spectrometer analysis of chemical composition taken at the Delivery Site
shall serve as the basis for the Seller's invoice to Buyer, as to specification conformance, unless the Buyer presents a differing
analysis. Buyer is entitled to send its own expert to the Delivery site, at its expense, to (i) draw representative samples for
the purpose of moisture determination, sizing and chemical composition; and (ii) provide its own certificate showing details of
the results. The results thus determined shall be presented to the Seller and, in the event of any variance between the Certificates,
the parties shall determine in good faith any adjustment to be made to Seller's invoice amount, prior to Delivery, and shall make
such further adjustments as may be appropriate in accordance with Section 6.2 hereof.

 

6.2.  
Base Price Adjustment.

 

If the shipment of higher
content iron ore fails to meet any of the chemical or size specifications provided in Section 3, as finally determined in accordance
with the provisions of this Section 6, the Base Price set forth in Section 5.1 shall be increased or reduced

 

6.3.  
Final and/or Umpire Analysis.

 

With respect to the higher
content iron ore, following testing by the Buyer and the Seller, if the content percentage of Fe in Buyer's and Seller's tests
differs by less than 0.5%, then the average of all of exchanged testing results for the Fe and all other elements shall
be final for purposes of determining invoice amount and payment due pursuant to Sections 6.1 and 6.2 hereof. Should the Fe content
percentage in Buyer's and Seller's tests differs by more than 0.5%, Buyer shall consult with Seller to reconcile such difference
and agree upon a final analysis. If after consultation between Buyer and Seller the difference(s) cannot be reconciled, then at
the request of Seller, the sample held for umpire shall be analyzed for all contractual elements by Inspectorate America Corporation,
Houston, Texas, USA, and the certificate of analysis issued by such umpire shall be final for purposes of determining pricing.
The cost of the umpire analysis shall be for the account of the party whose analysis differs farthest from the umpire analysis,
and if the result of such umpire analysis is the mean (+/- 0.01%) of the analyses of Buyer and Seller then such cost shall be equally
borne by both parties. In the event that a dispute under this section delays a scheduled delivery, such delayed delivery shall
not be deemed a breach of this Agreement.

 

6.4.  
Weight.

 

The invoice of the Buyer's
contracted trucking company (i) shall include total tonnage transported and weighed at the rail facility; and (ii) shall be copied
to Seller for purposes of finalization of its invoice to Buyer.

 

Section
7.               
Representations and Warranties.

 

Each party hereby represents
and warrants to the other party hereto that:

 

(i)                       
it is validly existing and in good standing in the jurisdiction of its formation;

(ii)                     
all necessary or advisable corporate action has been taken to authorize, and all necessary or advisable consents and authorities
have been obtained and remain in full force and effect to permit it to enter into and perform its obligations under this Agreement
and all other agreements executed in connection herewith;

 

(iii)                   
this Agreement constitutes or will, when executed and delivered, constitute its legal valid and binding obligations, enforceable
against each party in accordance with the respective terms thereof; and

 

(iv)                   
the execution and delivery of, and the performance of the provisions of, this Agreement do not contravene any applicable
law or regulation existing as of the date hereof or any contractual restriction binding on it or the articles of organization or
operating agreement thereof.

 

 

Section
8.               
Confidentiality.

Except
as otherwise contemplated by this Agreement, each party (the “receiving party”) undertakes that, in order to protect
the proprietary interest of the other party (the “disclosing party”) in the disclosing party’s trade secrets
and confidential information, it will not, during the term of this Agreement nor at any time thereafter, either use or exploit
in any manner, or directly or indirectly divulge or disclose to others any of the disclosing party’s trade secrets and confidential
information. The receiving party shall treat all trade secrets and confidential information disclosed to it as strictly confidential
and only use such trade secrets and confidential information for the purposes of this Agreement. Each party shall ensure that its
directors, officers, employees, agents, representatives, Affiliates and attorneys comply at all times with this confidentiality
undertaking. This Section 8 does not apply to (i) information which is public other than because of a breach of this clause; (ii)
disclosure required by law or stock exchange listing requirements; or (iii) disclosure to a party's related companies, auditor,
banker or advisors.

 

Section 9.Public Announcements

 

In the event Buyer or any
affiliate plans to issue a press release for a current report on Form 8-K regarding this Agreement or the current business activities
of Seller or the parties, Buyer agrees to first consult with Seller regarding the content of such press release prior to its distribution
to the public. Buyer shall email the draft press release to Seller for comment prior to release and Seller agrees to respond promptly
with its comments for review by Buyer. Due consideration shall be given to the Seller with respect to requested revisions to the
press release, especially where the disclosure of information affects Seller and is not mandatory under SEC rules and regulations.

 

Section
10.            Arbitration
of Disputes; Governing Law.

 

10.1.                   
Arbitration.

 

The parties agree to negotiate
in good faith to resolve any disputes, disagreements, questions, claims, or similar matters in regard to this Agreement or any
matter in regard to the relationship between the parties. If such matters cannot be resolved by negotiations between the parties,
such matters shall be resolved by mandatory arbitration by a single arbitrator.

 

10.2.                   
Selection and Procedures.

 

No later than thirty (30)
days after written demand for arbitration is made by one party and received from the other party, each party shall agree upon the
arbitrator. If no agreement regarding selection of an arbitrator has been reached after good faith efforts by both parties, each
party shall engage the services of an attorney for the specific purpose of conferring with the other party's attorney in order
to promptly select an arbitrator in compliance with this Section 10.2. The individual selected as arbitrator shall thereafter be
jointly engaged by the parties to arbitrate the disputed matter pursuant to procedures established by such arbitrator.

 

 

 

10.3.                   
Law and Venue; Decision.

 

The arbitrator shall interpret all controversies
and claims arising under or relating to this Agreement in accordance with the laws of Arizona without regard to its choice of laws
or principles. The arbitration must be conducted in Maricopa County, Arizona and the prevailing party shall be entitled to recover
all expenses of arbitration, including reasonable attorney’s fees. Neither party shall be prevented from seeking a temporary
restraining order, preliminary injunction, or other equitable remedy in court in order to preserve the status quo or to prevent
irreparable harm as contemplated by Section 8 hereof. Except for such injunctive relief, this provision for arbitration shall be
an absolute bar to any other legal proceedings between the parties hereto and the arbitrator’s decision shall not be appealable.
The arbitrator shall provide in writing to the parties the basis for the award or order of such arbitrator. The
arbitrator will have the power to award counsel fees and expenses, as well as dispute resolution costs to the prevailing Party.
Notwithstanding anything herein to the contrary, the arbitrator shall not award any consequential, incidental, indirect, special,
punitive or exemplary damages hereunder or in connection herewith. Any award, order, or judgment pursuant to arbitration
may be entered and enforced in any court of competent jurisdiction and each party hereby submits to the jurisdiction of any such
court for purposes of enforcement of such award, order or judgment.

 

Section
11.            Force
Majeure.

 

11.1.                   
Liability.

 

No party hereto shall
be liable for any failure to perform the terms of the Agreement so long as and to the extent that such failure is due to Force
Majeure. “Force Majeure” means acts of God, national or industry-wide strikes, national or industry-wide lockouts,
or other national or industry-wide labor disputes or disturbances, civil disturbances, arrests and restraint from rulers or people,
interruptions or terminations by or as a result of government or court action or orders, or present and future valid orders of
any regulatory body having jurisdiction, acts of the public enemy, wars, riots, terrorism, blockades, insurrections, epidemics,
landslides, lightning, earthquakes, fire, loss, floods, washouts, explosions, breakdowns or accidents, or any other similar cause,
which prevent that party from performing any of its obligations or enjoying any of its rights under or pursuant to this Agreement
in whole or in part, provided that such event was beyond the control of the party claiming Force Majeure. The Force Majeure shall,
so far as possible, be remedied with all reasonable dispatch by the affected party, and, thereafter, the affected party will use
its good faith commercial efforts to resume full performance of its obligations under this Agreement.

 

11.2.                   
Notification.

 

The party whose performance
is affected or who has reason to believe that such performance may be affected by reason of Force Majeure shall as promptly as
possible, but not later than fifteen (15) business days from the occurrence of a Force Majeure event, give written notice thereof
to the other party, giving the particulars of the event and supporting documentation if available. The failure to comply with such
notification deadline shall not affect the party's right to claim Force Majeure if the other party has knowledge of such Force
Majeure event. The party so affected shall also take reasonable steps to resume performance hereunder with the least possible delay
and shall give written notice when the Force Majeure ceases.

 

11.3.                   
Suspension of Performance.

 

If suspension of performance
by one party due to Force Majeure circumstances exceeds three months, either party will have the right to terminate the contract
in which case neither party shall have the right to claim damages for non performance caused by Force Majeure. Each party will
use good faith efforts to minimize and mitigate the damage or effect of any delay caused by any Force Majeure. In the event Buyer
claims Force Majeure, Seller shall not be prohibited from selling its Minerals to a third party.

 

Section 12.                       
Indemnification and Release

 

12.1.                   
Indemnification by Parties.

 

In accordance with and
subject to the limitations set forth in this Section 11, the Indemnifier Party shall indemnify, defend and hold harmless each other
indemnified Party (as defined below) from and against any and all amounts payable, payments, losses, damages, claims, demands,
actions or causes of action, liabilities, settlements, judgments, reasonable out-of-pocket costs and expenses, including interest,
penalties, fines and fees (including reasonable attorneys’ fees and costs of Claims) (collectively, “Losses”)
incurred by (i) indemnified Party, (ii) the directors, officers, stockholders, employees, agents and representatives
of Seller; and (iii) the respective successors and assigns of each of the foregoing (each of the foregoing being referred
to herein as a "Indemnified Party Group Member") arising out of or resulting from any Losses in connection with the willful
misconduct of the other Party.

 

12.2Notice of Claims.

 

(i)                       
An Indemnified Party Group Member seeking indemnification hereunder (in such capacity, the “Indemnified Person”)
shall give to the Indemnifier Party a notice (a “Claim Notice”) describing in reasonable detail the facts giving rise
to any claim for indemnification hereunder and shall include in such Claim Notice (if then known) the amount of such claim; provided
that failure to give such Claim Notice shall not relieve the Indemnifying Person of its obligations hereunder except to the extent
it shall have been prejudiced by such failure.

 

(ii)                     
After the giving of any Claim Notice pursuant hereto, the amount of indemnification to which an Indemnified Person shall
be entitled under this Article IX shall be paid promptly, but no later than ten (10) banking days of receipt of the Claim
Notice, which shall include the amount required for the defense of such claim and/or Losses; provided, however, that the Indemnifier
Party, as the party required to fully indemnify the Indemnified Party against any claim and/or Losses, may retain counsel acceptable
to the Indemnified Party to carry out such defense.

 

Section
13.            Miscellaneous.

 

13.1.                   
Survival.

 

(i)The representations and
warranties of the Parties contained in this Agreement shall survive the Closing and continue for a period beginning on the Closing
Date and ending on the date that is twelve (12) months following the Closing Date.

 

(ii)The covenants, obligations
and other agreements of the Parties contained in this Agreement shall survive the Closing until such covenant, obligation or agreement
is fully performed, whether by its terms or as a matter of applicable law.

 

13.2.                   
Definitions.

 

	Delivery	Means delivery on a Modified FOB basis.
	DMT	Dry Metric Ton
	Dollars and Cents (or symbols therefore)	Means dollars and cents in lawful currency of the United States of America. All currency referred to herein is in US Dollars and US Cents.
	Modified FOB	Refers to the method of delivery as that term is described by ICC Incoterms 2010, as modified by the language of  Section 5.4 hereof. 

 

13.3.                   
Severability; Counterparts.

 

If any provision of this
Agreement is held to be invalid or unenforceable, such provision shall not affect this Agreement as a whole, but this Agreement
shall be construed as though it did not contain the particular provision held to be invalid or unenforceable; provided, however,
that no such severability shall be effective if it materially changes the economic benefit of this Agreement to either party. This
Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. Facsimile signatures or signatures in PDF format shall, for all purposes,
be treated as originals.

 

13.4.                   
Amendments; Waivers.

 

(i)         
No amendment of any provision of this Agreement or any Addendum shall be effective unless it is in writing (which includes
writing contained in email) and signed by authorized representatives of both parties hereto.

(ii)       
No failure on the part of either party to exercise, and no delay in exercising, any right hereunder or under any related
documents shall operate as a waiver thereof by such party, nor shall any single or partial exercise of any right hereunder or under
any other related document preclude any other or further exercise thereof or the exercise of any other right.

 

13.5.                   
Notices.

 

(i)All demands, notices,
requests and consents hereunder (“Notices”) shall be in writing, in the English language and shall be deemed to have
been duly given if personally delivered by courier service, messenger or telecopy, or by certified or registered mail, postage
prepaid, return receipt requested, or by Email Notice, to the following contact information, or such other contact information
as may be furnished hereafter by notice in writing, to the following parties:

 

	
        In case of Buyer:

         

        AuraSource, Inc.

        1

        Fax:
	
        In case of Seller:

         

        Gulf Coast Mining Group, LLC

        

 

(ii) All Notices shall be effective
either:

 

(a)at the time of actual delivery
thereof; or

(b)if given by telecopy, upon
electronic confirmation of delivery; or

(c)if given by certified or
registered mail, ten (10) business days after certification or registration thereof, to any officer (or an authorized recipient
of deliveries to the office) of the party to whom given; or

(d)by email, if the recipient
specifically acknowledges receipt of such notice sent via email ("Email Notice").

(e)All Notices must have a copy
sent by email to all of the addresses above to be considered effective.

 

13.6. Effective Date.

 

This Agreement is effective
as of February 10, 2012.

 

 

 

 

[THE REST OF THIS PAGE IS INTENTIONALLY LEFT
BLANK]

 

 

     

     

    

 

IN WITNESS WHEROF,
the parties have duly executed and delivered this Agreement as of the date first above written and the below electronic signatures
are to be considered original and legally binding.

 

 

	
        BUYER:

         

        AURASOURCE, INC.

         

         

        By: ____/s/_Philip Liu________________

        Name: Philip Liu

        Title: Chairman and CEO

         
	
        SELLER:

         

        GULF COAST MINING GROUP, LLC

         

         

        By: _____/s/ David Shaheen________________

        Name: David T. Shaheen

        Title: Manager

 

 

Gulf Coast Holdings, LLC hereby agrees to and consents to the Agreement

 

 

 

 

By: _____/s/ David Shaheen_________

Name: David T. Shaheen

Title: ManagerExhibit 10.3

 

EXCLUSIVE LICENSE AGREEMENT

 

 

THIS EXCLUSIVE LICENSE AGREEMENT
is entered into as of the 9th day of February, 2012 (the "Agreement"), by and between AuraSource, Inc., a
Nevada corporation and its subsidiaries (the “Licensor”) and Gulf Coast Holdings, LLC, a Nevada limited liability
company (the “Licensee”).

 

RECITALS

WHEREAS, AuraSource, Inc. as Licensor
has agreed to grant to the Licensee (i) a North America exclusive license for use and exploitation of the Technology, as that term
is defined below, with respect to applications and uses involving Precious Metals (the "Exclusive License"); and

 

WHEREAS, Licensee has agreed to the
grant of the Exclusive License in exchange for royalty payments to the Licensor in accordance with the terms hereof.

NOW
THEREFORE, based upon the foregoing premises, and in consideration of the mutual promises and covenants herein, the parties
hereto agree as follows:

ARTICLE 1. DEFINITIONS

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

		1.01 	“Affiliate(s)” shall mean every corporation, or entity, which,
directly or indirectly, or through one or more intermediaries, controls, is controlled by, or is under common control with Licensor
or Licensee, as applicable, as well as every officer, director, principal, owner, agent and representative of any such company
or entity.

		1.02 	“Effective Date” shall mean February 10, 2012.

		1.03 	“Fields of Use” shall mean the fields of use identified in Appendix
A.

		1.04	“Intellectual Property”
means all Patent Rights and all trademarks, logos, slogans, trade secrets and service marks pertaining to or used by the Licensor
in connection with the description, commercialization or exploitation of the Technology, including the trademark AuraMetalTM;

1.05
“Know-How” shall mean Licensor's proprietary information which has been created, developed, or fixed in any tangible
medium of expression and which is directly related to the use of, or desirable for the practice of, the licensed Technology and
which offers the user thereof a competitive advantage over those who do not know or use such portions of Know-How. All Know-How
licensed under this Agreement, whether in written, oral or other form of communication and as further developed hereafter, shall
be deemed delivered to Licensee as of the Effective Date.

 

		1.06	“Licensed Process(es)” shall
mean any process, art, or method which is covered in whole or in part by an issued, unexpired claim or a pending claim contained
in the Patent Rights to the Technology.

1.07
“Licensed Product(s)” shall mean any:

(a)   
product or part thereof which is covered in whole or in part by an issued, unexpired claim
or a pending claim contained in the Patent Rights to the Technology in the country in
which any such product or part thereof is made, used or sold; or

(b)  
product, apparatus, or part thereof which is manufactured or discovered by using a process
or is employed to practice a process which is covered in whole or in part by an issued, unexpired claim or a pending claim contained
in the Patent Rights to the Technology in the country in which any Licensed Processes
is used or in which such product or part thereof is used or sold; or

(c)   
product produced, manufactured or created through the use of any Licensed Product defined
in §1.06(a) or §1.06(b).

		1.08	“Licensor” means
AuraSource, Inc. and any subsidiary or Affiliate that has an ownership interest in or rights to the Technology, the Patent Rights
or the Intellectual Property, including but not limited to AuraSource Qinzhou Co., Ltd.

		1.09	“Gross Revenues” shall refer to such amount calculated as Gross
Revenues in accordance with US Generally Accepted Accounting Principles.

1.10
 “Patent Rights” shall mean all of the following Licensor intellectual property:

(a)   
the patents ("Patents") and/or patent applications and/or provisional patent applications
filed or claimed in China, the United States and any other country, as of the Effective Date or in the future, with respect to
the Technology (the "Applications");

(b)  
all patents related to the Technology issued from the Applications and from divisionals and
continuations of these Applications;

(c)   
claims of any continuation-in-part applications, and of the resulting patents, which are directed
to subject matter described in any of the Applications;

(d)  
any reissues of the Applications and Patents issued pursuant thereto. 

		1.11 	“Precious Metals” shall mean gold, silver and any of the platinum
group metals (including iridium, osmium, palladium, platinum, rhodium and ruthenium), whether in the form of ore, concentrate,
alloy, doré or other refined form.

1.12 “Royalty”
shall mean any consideration paid by Licensee pursuant to this License Agreement.

 

1.13 “Technology”
shall mean the AuraMetalTM Licensed Process utilizing the Licensor's shock wave grinding and separation technologies
developed, and to be developed, derived from and/or modified, and as may be applied to the separation of Precious Metals
from their ores. Use of "Technology" shall also include use of all trademarks associated therewith, subject to Licensor's
review and consent, which consent shall not be unreasonably withheld. 

 

1.14 “Term”
the term of this agreement shall be Twenty Five years from the Effective Date, renewing automatically for five-year terms unless
terminated ninety (90) days prior to the end of the then current term.

 

1.15
“Territory” shall mean the geographical area identified in Appendix A.

ARTICLE II. GRANT
OF RIGHTS AND ACCEPTANCE

2.01
Licensor hereby grants and Licensee accepts, during the Term and subject to the terms

and conditions of this License
Agreement:

(a)   
an exclusive license to use the Technology and Know-How in the Territory and within the Fields
of Use, as described in Exhibit A hereto and incorporated in this Agreement by this reference; and

(b)  
an exclusive license of Licensor’s Technology in the Territory to make, use, sell, offer
to sell any the Licensed Products and to practice any of the Licensed Processes in the Fields of Use.

		2.03 	This Agreement shall be subject to the mandatory public laws in any country
where this Agreement will produce an effect.

ARTICLE III. SUBLICENSING

		3.01 	Licensee may sublicense to one or more third parties the rights granted in Article 2 with the expressed
consent of Licensor, which consent shall not be unreasonably withheld.

		3.02	Any sublicense granted by Licensee shall be subject to the following limitations:

(a)   
It shall impose restrictions and conditions upon sublicensees equivalent in scope to those
imposed upon Licensee; and

(b)  
It shall require the sublicensee to adequately protect Licensor's security and property interest
in Licensor's Know-How and Technology.

 

ARTICLE
IV. ROYALTIES

		4.01	As consideration for this present grant of the Exclusive License and the Licensee rights related
to the Technology granted hereby, Licensee agrees to pay Licensor a Royalty from cash payments actually received in the prior calendar
quarter (the "Royalty Quarter") by the Licensee as set forth in Appendix B.

		4.02	All payments required under this Agreement shall be payable to the Licensor within fifteen (15)
banking days after the end of the preceding Royalty Quarter. Payments past due shall bear interest at the rate of one and one-half
percent (1 1/2%) per month.

		4.03 	No multiple royalties shall be payable because any Licensed Products or Licensed Processes are
covered by more than one of the Patent Rights.

 

ARTICLE V. REPORTS, RECORDS
AND AUDITS

		5.01 	Licensee shall, without request by Licensor, render to Licensor
written accounts for each calendar quarter of the Gross Revenues resulting from the use, sublicensing and/or sales of Technology,
the Licensed Products and/or Licensed Processes subject to royalty hereunder made during the prior calendar quarter and shall simultaneously
pay to Licensor the royalties due on such Gross Revenues, if any, in United States Dollars. 

		5.02 	Licensee shall keep accurate records in sufficient detail to reflect its operations under this
Agreement and to enable the Royalties accrued and payable under this Agreement to be determined.

		5.03 	Upon the request of Licensor, with reasonable notice, but not more frequently than once a year,
Licensee shall permit an independent public accountant selected and paid by Licensor to have access during regular business hours
to inspect such records as may be reasonably necessary to verify the accuracy of royalty payments made or payable hereunder. Said
accountant shall disclose information acquired during such inspection to Licensor only to the extent that it should properly have
been contained in the royalty reports required under this Agreement and shall simultaneously deliver a copy of such information
to the Licensee. If an inspection shows an underreporting or underpayment in excess of five percent (5%) for any twelve (12) month
period, then Licensee shall reimburse Licensor for the cost of the inspection and pay the amount of the underpayment including
any interest as required by this Agreement.

ARTICLE VI. PROTECTION OF
TECHNOLOGY, COSTS, AND ENFORCEMENT

		6.01 	Licensor shall pay from Royalties for and control the preparation, filing, prosecution, and maintenance
of any and all patent applications or patents included in the Patent Rights underlying the Technology on or after the Effective
Date and shall furnish copies of relevant patent-related documents to Licensee. To the extent no Royalties are paid to Licensor
there shall be no responsibilities under this section. .

		6.02 	In the event Licensor declares bankruptcy or otherwise fails to reasonably prosecute and maintain
the Patent Rights as may be required under Section 6.01 or to otherwise prosecute and maintain substantially all Intellectual Property
rights related to the Technology and Patent Rights, an Arbitrator shall be appointed under Section 9. If the Arbitrator determines
Licensor is negligent in maintaining its Patent Rights, the Licensee may assume primary responsibility for all patent activities
associated with the perfection and maintenance of Technology with all costs related thereto to be reimbursed only from Royalties
on demand by Licensor. If said costs are not reimbursed by Licensor, Licensee may pay such reimbursements on behalf of Licensor
from Royalties otherwise payable hereunder.

		6.03	The grant of the Exclusive License to the Licensee is coupled with an interest in favor of Licensee.
No claims of the Patent Rights and Technology shall be deleted or abandoned by Licensor without first giving one hundred twenty
(120) days' written notice to the Licensee and offering to transfer ownership of said Patent Rights and Technology to Licensee,
with all obligations related thereto to be assumed by the Licensee. If such rights are transferred, Licensee will remain responsible
for Royalties to Licensor. Licensor’s obligations under this Section 6.03 shall include, without limitation, an obligation
to notify Licensee in a timely manner that Licensor will not pursue patents related to the Technology in any country where patent
protection may be available such that Licensee may prosecute patents in such countries if Licensee so desires. In such event, Licensee
may pursue such foreign patent protection for its own account, at its cost, in order to protect its interests and enable it to
comply with agreements to which it may already be obligated with respect to the Technology.

 

		6.04 	Licensor and Licensee agree to inform the other party promptly in writing of any suspected infringement
of the Patent Rights and Technology by a third party or a declaratory judgment action with respect to the Patent Rights or Technology.
Licensor and Licensee shall each have the right to institute an action for infringement or defend the declaratory judgment action
in accordance with the following:

		(a) 	If both Licensor and Licensee agree to institute legal action jointly,
the suit shall be brought in both their names, the out-of-pocket costs thereof shall be borne equally, and any recovery or settlement
shall be shared equally. Licensor and Licensee shall agree to the manner in which they shall exercise control over such suit. Each
party, at its option, may be represented by separate counsel of its own selection, the fees for which shall be paid by Licensor.

		(b) 	In the absence of an agreement to institute a suit jointly, Licensor
shall institute legal action, and Licensee may, at its option, join Licensor as a plaintiff. Licensor shall promptly notify Licensee
in writing of its intent to institute legal action; and

		(c) 	In the absence of an agreement to institute legal action jointly,
and if Licensor does not pursue legal action within thirty (30) days of learning of suspected infringement, Licensee may institute
suit to protect its rights and comply with its contract obligations with third parties. In the event Licensee bears the entire
cost of such litigation, any recovery or settlement in excess of litigation costs and reasonable attorney fees shall be retained
by Licensee minus payment of Royalties to Licensor to the extent such settlement or recovery represents Gross Revenues from which
Royalties are otherwise payable hereunder.

		(d)	If Licensee undertakes to defend the Technology by litigation on behalf of both Licensor and Licensee,
the Licensee may deduct from its royalty payments Licensee's expenses and costs of such action, including reasonable attorney's
fees.

ARTICLE VII. CONFIDENTIALITY

		7.01 	Except as otherwise contemplated by this Agreement, each party (the “receiving party”)
undertakes that, in order to protect the proprietary interest of the other party (the “disclosing party”) in the disclosing
party’s trade secrets and confidential information, it will not, during the term of this Agreement nor at any time thereafter,
either use or exploit in any manner, or directly or indirectly divulge or disclose to others any of the disclosing party’s
trade secrets and confidential information. The receiving party shall treat all trade secrets and confidential information disclosed
to it as strictly confidential and only use such trade secrets and confidential information for the purposes of this Agreement.

		7.02	Each party shall ensure that its directors, officers, employees, agents, representatives, Affiliates
and attorneys comply at all times with this confidentiality undertaking.

		7.03	This clause does not apply to (i) Information which is public other than because of a breach of
this clause; (ii) Disclosure required by law or stock exchange listing requirements; or (iii) Disclosure to a party's related companies,
auditor, banker or advisors.

 

ARTICLE VIII. PUBLIC ANNOUNCEMENTS

 

8.01In the event Licensor or any Affiliate
plans to issue a press release for a current report on Form 8-K regarding this license or the current business activities of
the Licensee or the parties, Licensor agrees to first consult with Licensee regarding the content of such press release
prior to its distribution to the public.

 

8.02Licensor shall email the draft press
release to the Licensee for comment prior to release and Licensee agrees to respond promptly with its comments for review by
Licensor. Due consideration shall be given to the Licensee with respect to requested revisions to the press release, especially
where the disclosure of information affects Licensee and is not mandatory under SEC rules and regulations.

 

ARTICLE IX. DISPUTES AND ARBITRATION

		9.01 	 The parties agree to negotiate in good faith to resolve any disputes, disagreements, questions,
claims, or similar matters in regard to this Agreement or any matter in regard to the relationship between the parties. If such
matters cannot be resolved by negotiations between the parties, such matters shall be resolved by mandatory arbitration by a single
arbitrator. No later than thirty (30) days after the arbitration is requested by one party, each party shall agree upon the arbitrator.
If no agreement regarding selection of an arbitrator has been reached after good faith efforts by both parties, each party shall
engage the services of an arbitrator, each of whom shall confer and select an arbitrator. The individual selected as arbitrator
shall thereafter be jointly engaged by the parties to arbitrate the disputed matter pursuant to procedures established by such
arbitrator.

		9.02	The arbitrator shall interpret all controversies and claims arising under or relating to this Agreement
in accordance with the laws of Arizona without regard to its choice of laws or principles. The arbitration must be conducted in
Maricopa County, Arizona and the prevailing party shall be entitled to recover all expenses of arbitration, including reasonable
attorney’s fees. Neither party shall be prevented from seeking a temporary restraining order, preliminary injunction, or
other equitable remedy in court in order to preserve the status quo or to prevent irreparable harm as contemplated by Article VII.
Except for such injunctive relief, this provision for arbitration shall be an absolute bar to any other legal proceedings between
the parties hereto and the arbitrator’s decision shall not be appealable. The arbitrator shall provide in writing to the
parties the basis for the award or order of such arbitrator. The arbitrator will have the power to award
counsel fees and expenses, as well as dispute resolution costs to the prevailing Party. Notwithstanding anything herein to the
contrary, the arbitrator shall not award any consequential, incidental, indirect, special, punitive or exemplary damages hereunder
or in connection herewith. Any award, order, or judgment pursuant to arbitration may be entered and enforced in any court
of competent jurisdiction and each party hereby submits to the jurisdiction of any such court for purposes of enforcement of such
award, order or judgment.

ARTICLE
X. MISCELLANEOUS

 

10.01
Assignment, Subcontractors and Sublicensees. Neither party may assign this Agreement, without the consent
of the other party, which consent shall not be unreasonably withheld; provided, however, that either party may assign this
Agreement to an Affiliate with written notice to the other party of such assignment.

		10.02 	Complete Agreement. The terms and provisions contained in this Agreement
constitute the entire Agreement between the parties and shall supersede all previous communications, representations, agreements
or understandings, either oral or written, between the parties hereto with respect to the subject matter hereof, and no agreement
or understanding varying or extending this Agreement will be binding upon either party hereto, unless in writing which specifically
refers to this Agreement, signed by duly authorized officers or representatives of the respective parties, and the provisions of
this Agreement not specifically amended thereby shall remain in full force and effect according to their terms.

 

10.03Authority. Each party represents
by its execution of this Agreement that it has the authority to do so and to bind the party by its signature below.

		10.04 	Notice. All demands, notices, requests and consents hereunder (“Notices”) shall
be in writing, in the English language and shall be deemed to have been duly given if personally delivered by courier service,
messenger or telecopy, or by certified or registered mail, postage prepaid, return receipt requested, or by Email Notice, to the
following contact information, or such other contact information as may be furnished hereafter by notice in writing, to the following
parties:

 

	
        In case of Licensor:

         

        AuraSource, Inc.

        
	
        In case of Licensee:

         

        Gulf Coast Holdings, LLC

        

 

All Notices shall be effective
either:

 

(a)at the time of actual delivery
thereof; or

(b)if given by telecopy, upon
electronic confirmation of delivery; or

(c)if given by certified or
registered mail, ten (10) business days after certification or registration thereof, to any officer (or an authorized recipient
of deliveries to the office) of the party to whom given; or

(d)by email, if the recipient
specifically acknowledges receipt of such notice sent via email ("Email Notice").

(e)All Notices must have a copy
sent by email to all of the addresses above to be considered effective.

		10.05 	Licensee Marks. Licensee is entitled to develop at its cost its own
trademarks, slogans, logos and service marks (collectively, the "Marks") for purposes of Licensee's use and exploitation
of the Technology. This shall not alter the definition of Gross Revenues upon which Royalties shall be paid to Licensor hereunder.
To the extent that Licensee bears the cost of development of such Marks, Licensee shall own the goodwill associated therewith.

10.06
Severability. The provisions and clauses of this Agreement are severable, and in the event that any provision or clause
is determined to be invalid or unenforceable under any controlling body of the law, such invalidity or unenforceability will not
in any way affect the validity or enforceability of the remaining provisions and clauses hereof.

10.07 Relationship. The performance
by Licensee of its duties and obligations under this Agreement shall be that of an independent contractor and nothing contained
in this Agreement shall create or imply an agency relationship between Licensee and Licensor, nor shall this Agreement
be deemed to constitute a joint venture or partnership between the parties.

10.08 Amendment. No amendment,
modification or supplement of any provision of this Agreement will be valid or effective unless made in writing and signed
by each party. No provision of this Agreement will be waived by any act, omission or knowledge of a party or its agents
or employees except by an instrument in writing expressly waiving such provision and signed by a duly authorized officer of
the waiving party.

10.09 Counterparts. This
Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument. Facsimile signatures or signatures in PDF format shall, for
all purposes, be treated as originals.

 

10.10Survival. The terms of Articles
IX shall survive the termination of this Agreement for any reason.

 

10.11 Third Party Beneficiaries.
Each party intends that this Agreement shall not benefit, or create any right or cause of action in or on behalf of, any person
or entity other than Licensor and Licensee.

 

10.12 Covenant of Further Assurances.
Licensor and Licensee covenant and agree that, subsequent to the execution and delivery of this Agreement and without any additional
consideration, each of Licensor and Licensee will execute and deliver any further legal instruments and perform any acts
which are or may become necessary to effectuate the purposes of this Agreement.

 

10.13 Recitals. The Recitals at
the outset of this Agreement are hereby incorporated into this Agreement by this reference as if set forth in their entirety
in the body of this Agreement.

 

 

 

[THE REST OF THIS PAGE IS
INTENTIONALLY LEFT BLANK]

 

 

 

     

     

    

IN WITNESS WHEREOF the
parties hereto have caused this Agreement to be executed in duplicate by their respective duly authorized officers.

 

 

GULF COAST HOLDINGS, LLC

 

 

By: ___/s/ David
Shaheen___________________Date: _____2/15/2012_________________

David T. Shaheen

President / Manager

 

 

 

AURASOURCE, INC.

 

 

By: ___/s/
Philip Liu___________________Date:____2/15/2012_______

Philip Liu

President and CEO

     

     

    

APPENDIX A

 

FIELDS
OF USE and TERRITORY

 

 

 

	Field of Use	Nature of License	
        Territory

         

	
         

        Use of the Technology in connection with processing
        Precious Metals

         
	
         

        Exclusive
	
         

        North America

     

     

    

APPENDIX
B

 

ROYALTIES

In
accordance with Article IV, Licensee shall pay the following royalties to Licensor:

 

Exclusive License: Five
percent (5%) of Gross Revenues

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