Document:

Unassociated Document

 Exhibit 10.14

Addendum to Securities Purchase Agreement

 

 

This Addendum, dated March 22, 2012, between Focus Gold Corporation (the “Company”) and JMJ Financial (the “Purchaser”) amends the Securities Purchase Agreement SPA-03222012, dated March 22, 2012, between the Company and the Purchaser and the transaction documents related to SPA-03222012, including Convertible Promissory Note Document A-03222012, Warrant W-03222012, Representations & Warranties RW-03222012, and Default D-03222012 (SPA-03222012 and the related transaction documents collectively are the “Transaction Documents”).

WHEREAS, the Purchaser understands that the Company is DTC eligible and its shareholders are able to deposit (either electronically or by physical certificates, or otherwise) shares of the Company’s common stock into the DTC System.  The Company is not able, however, to electronically transfer shares by “DWAC/FAST” transfer.

NOW, THEREFORE, the parties agree as follows:

1.           The Company agrees to apply to DTC within 15 days of the closing of the transactions contemplated by SPA-03222012 (the “Closing”) to be permitted to transfer its shares by DWAC/FAST and to use its reasonable best efforts to have such application accepted by DTC.

2.           If the Company’s application is not approved, the Company agrees to reapply to DTC after a reasonable period of time at the request of the Purchaser.

3.           If the Company fails to apply or reapply to DTC as required by Sections 1 and 2 of this Addendum, the Company shall be in Default under this Addendum and the Transaction Documents.  If the Company is in Default, the Purchaser may elect to enforce all terms of this Addendum and the Transaction Documents as provided therein.

4.           If the Company subsequently is permitted to transfer its shares by DWC/FAST, the Transaction Documents shall apply as provided therein and the modifications to such Transaction Documents specified below shall be rescinded.

5.           So long as no Default exists, the Transaction Documents shall be modified as follows until such time as the Company obtains permission to transfer shares by DWAC:

Convertible Promissory Note Document A-03222012

Section 2.1.  The last sentence of this paragraph shall be replaced by the following:

“The Borrower shall transmit share delivery instructions to its transfer agent either the same day as Holder delivered the conversion notice or by the next day.”

Section 2.6.  This paragraph shall be replaced by the following:

“2.6. Delivery of Conversion Shares.  The Borrower shall transmit share delivery instructions to its transfer agent either the same day as Holder delivered the conversion notice or by the next day.  The Borrower and its transfer agent shall use reasonable best efforts to have share certificates delivered to the Holder within 4 days of delivery of the conversion notice (such date, the “Share Delivery Date”).  For example, if Holder delivers a conversion notice to Borrower at 5:15 pm eastern time on Monday January 1st, Borrower must transmit share delivery instructions to Borrower’s transfer agent by no later than 2:30 pm eastern time on Tuesday, January 2nd, and Borrower and its transfer agent must use reasonable best efforts to have the share certificates delivered to the Holder by Thursday, January 4.  If those shares are not delivered in accordance with this timeframe stated in this Section 2.6, or for any other reason at Holder’s discretion (including but not limited to a decrease in share price), Holder, at any time prior to selling those shares (in whole or in part), may rescind that particular conversion (in whole or in part) and have the conversion amount (in whole or in part) returned to the note balance with the conversion shares (in whole or in part) returned to the Borrower (under Holder and Borrower’s expectation that any returned conversion amounts will tack back to the original date of the note).  The Company will make its best efforts to deliver share delivery instructions to its transfer agent same day / next day.”

  

  

  

Section 2.6.2.B.  This paragraph shall be replaced by the following:

“2.6.2.B.  For each conversion, in the event that shares are not delivered by the fourth business day (inclusive of the day of conversion), a penalty of $2,000 per day will be assessed for each day after the fourth business day (inclusive of the day of the conversion) until share delivery is made; and such penalty will be added to the principal balance of the Note (under Holder and Borrower’s expectation that any penalty amounts will tack back to the original date of the note).  Borrower will not be subjected to any penalties if Borrower has timely delivered share delivery instructions to its transfer agent and the transfer agent delivered the share certificates to a courier for overnight delivery by the courier’s daily delivery cutoff time on the 3rd business day.”

Warrant W-03222012

Section 1.5.  This paragraph shall be replaced by the following:

“1.5. Delivery of Warrant Shares.  The Borrower shall transmit share delivery instructions to its transfer agent either the same day as Holder delivered the Notice of Exercise or by the next day.  The Borrower and its transfer agent shall use reasonable best efforts to have share certificates delivered to the Holder within 4 days of delivery of the Notice of Exercise (such date, the “Share Delivery Date”).  For example, if Holder delivers a Notice of Exercise to Borrower at 5:15 pm eastern time on Monday January 1st, Borrower must transmit share delivery instructions to Borrower’s transfer agent by no later than 2:30 pm eastern time on Tuesday, January 2nd, and Borrower and its transfer agent must use reasonable best efforts to have the share certificates delivered to the Holder by Thursday, January 4. The Warrant Shares shall be deemed to have been issued, and Holder or any other person so designated to be named therein shall be deemed to have become a holder of record of such shares for all purposes, as of the date of delivery of the Notice of Exercise.  Holder may assess penalties or liquidated damages (both referred to herein as “penalties”) as follows.  For each exercise, in the event that shares are not delivered by the fourth business day (inclusive of the day of exercise), the Company shall pay the Holder in cash a penalty of $2,000 per day for each day after the fourth business day (inclusive of the day of exercise) until share delivery is made.  Borrower will not be subjected to any penalties if Borrower has timely delivered share delivery instructions to its transfer agent and the transfer agent delivered the share certificates to a courier for overnight delivery by the courier’s daily delivery cutoff time on the 3rd business day.  The Company will make its best efforts to deliver share delivery instructions to its transfer agent same day / next day.”

*           *           *

 

  

  

  

IN WITNESS WHEREOF, the parties hereto have executed this Addendum as of the date first set forth above.

COMPANY:

FOCUS GOLD CORPORATION

By: /s/Grant R. White 

Grant R. White

Chief Executive Officer

PURCHASER:

/s/Justin Kenner

JMJ Financial / Its Principal

 

 

 

 

 

 

 

 

 

 

 

[Securities Purchase Agreement Addendum Signature Page]Unassociated Document

Exhibit 10.15

 

SECURITIES PURCHASE AGREEMENT

DOCUMENT SPA-03222012

 

This Securities Purchase Agreement (this “Agreement”) is dated as of March 22, 2012, between Focus Gold Corporation, a Nevada corporation (the “Company”) and JMJ Financial (the “Purchaser”) (referred to collectively herein as the “Parties”).

 

WHEREAS, the Company desires to sell and Purchaser desires to purchase a Convertible Promissory Note due, subject to the terms therein, three (3) years from its effective date of issuance, issued by the Company to the Purchaser, in the form of Exhibit A attached hereto (the “Note”), and Warrants to purchase 2,500,000 shares of the Company’s common stock for a period of three (3) years from the date hereof, issued by the Company to the Purchaser, in the form of Exhibit B attached hereto (the “Warrants,” and together with the Note, the “Securities”) as set forth below;

NOW, THEREFORE, in consideration of the mutual covenants contained in this Agreement, the Company and the Purchaser agree as follows:

 

 

ARTICLE I   PURCHASE AND SALE

 

1.1           Purchase and Sale.  Upon the terms and subject to the conditions set forth herein, the Company agrees to sell, and the Purchaser agrees to purchase the Note, in an aggregate principal amount of $2,110,000, and a Warrant to purchase 2,500,000 shares of Company common stock with an aggregate exercise price of $500,000.  The Purchaser shall deliver to the Company, via wire transfer, immediately available funds in the amount of US $275,000 (the “Purchase Price”), and the Company shall deliver to the Purchaser the Note and the Warrant, and the Company and the Purchaser shall deliver any other documents or agreements related to this transaction, including, but not limited to, Representations and Warranties Agreement Document RW-03222012 and Security Agreement SA-03222012.

 

1.2           Effective Date.  This Agreement will become effective only upon occurrence of the two following events: execution of this Agreement, the Note, and the Warrants by both the Company and the Purchaser, and delivery of the first payment of the Purchase Price by the Purchaser to the Company.

 

ARTICLE II   MISCELLANEOUS

 

2.1           Successors and Assigns. This Agreement may not be assigned by the Company.  The Purchaser may assign any or all of its rights under this Agreement and agreements related to this transaction.  The terms and conditions of this Agreement shall inure to the benefit of, and be binding upon, the respective successors and permitted assigns of the parties.  Nothing in this Agreement, express or implied, is intended to confer upon any party, other than the parties hereto or their respective successors, any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

 

2.2           Reservation of Authorized Shares.  As of the effective date of this Agreement and for the remaining period during which the Note is convertible into shares of the Company and the Warrants are exercisable for shares of the Company, the Company will reserve from its authorized and unissued common stock a sufficient number of shares (at least 50,000,000 common shares) to provide for the issuance of common stock upon the full conversion of the Note and the full exercise of the Warrants.  The Company represents that upon issuance, such shares will be duly and validly issued, fully paid and non-assessable.  The Company agrees that its issuance of the Note and the Warrants constitutes full authority to its officers, agents and transfer agents who are charged with the duty of executing and issuing shares to execute and issue the necessary shares of common stock upon the conversion of the Note and the exercise of the Warrants.  No further approval or authority of the stockholders or the Board of Directors of the Company will be required for the issuance and sale of the Securities to be sold by the Company as contemplated by the Agreement or for the issuance of the shares contemplated by the Note or the shares contemplated by the Warrants.

 

  

  

  

2.3           Piggyback Registration Rights.  The Company shall include on the next registration statement the Company files with SEC (or on the subsequent registration statement if such registration statement is withdrawn) all shares issuable upon conversion of the Note and all shares issuable upon exercise of the Warrant.  Failure to do so will result in liquidated damages of 10% of the outstanding principal balance of the Note, but not less than $100,000, being immediately due and payable to the Holder at its election in the form of cash payment or addition to the balance of the Note.

 

2.4           Rule 144 Tacking Back and Registration Rights.  Whenever the Note or Warrant or any other document related to this transaction provides that a conversion amount, make-whole amount, penalty, fee, liquidated damage, or any other amount or shares (a “Tack Back Amount”) tacks back to the original date of the Note, Warrant, or document for purposes of Rule 144 or otherwise, in the event that such Tack Back Amount was registered or carried registration rights, then that Tack Back Amount shall have the same registration status or registration rights as were in effect immediately prior to the event that gave rise to such Tack Back Amount tacking back.  For example, if the Purchaser converts a portion of the Note and receives registered shares and the Purchaser later rescinds that conversion, the conversion amount would be returned to the principal balance of the Note and upon any future conversion of the Note the amount converted would be convertible into shares registered on that registration statement.

 

2.5           Governing Law. This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of Florida, without regard to the principles of conflict of laws thereof.  Any action brought by either party against the other concerning the transactions contemplated by this Agreement shall be brought only in the state courts of Florida or in the federal courts located in Miami-Dade County, in the State of Florida.  Both parties and the individuals signing this Agreement agree to submit to the jurisdiction of such courts.

 

2.6           Delivery of Process by Purchaser to Company.  In the event of any action or proceeding by the Purchaser against the Company, and only by Purchaser against the Company, service of copies of summons and/or complaint and/or any other process which may be served in any such action or proceeding may be made by Purchaser via U.S. Mail, overnight delivery service such as FedEx or UPS, email, fax, or process server, or by mailing or otherwise delivering a copy of such process to the Company at its last known address or to its last known attorney as set forth in its most recent SEC filing.

 

2.7           Notices.  Any notice required or permitted hereunder must be in writing and either be personally served, sent by facsimile or email transmission, or sent by overnight courier.  Notices will be deemed effectively delivered at the time of transmission if by facsimile or email, and if by overnight courier the business day after such notice is deposited with the courier service for delivery.

 

2.8           Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  Delivery of this Agreement may be effected by email.

 

2.9           Expenses. The Company and the Purchaser shall pay all of their own costs and expenses incurred with respect to the negotiation, execution, delivery and performance of this Agreement.  In the event any attorney is employed by either party to this Agreement with respect to legal or equitable action, arbitration or other proceeding brought by such party for the enforcement of this Agreement or because of an alleged dispute, breach, default or misrepresentation in connection with any of the provisions of this Agreement, the prevailing party in such proceeding will be entitled to recover from the other party reasonable attorneys’ fees and other costs and expenses incurred, in addition to any other relief to which the prevailing party may be entitled.

 

2.10           No Public Announcement.  Except as required by securities law, no public announcement may be made regarding this Agreement, the Note, the Warrant, or the Purchase Price without written permission by both the Company and the Purchaser.

 

  

  

  

2.11           Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction.

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of this 22nd day of March, 2012.

 

COMPANY:

FOCUS GOLD CORPORATION

By: /s/Grant R. White 

      Grant R. White

Chief Executive Officer

PURCHASER:

/s/Justin Keener

Justin Keener

JMJ Financial / Its Principal

[Securities Purchase Agreement Signature Page]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00206-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00206-of-00352.parquet"}]]