Document:

PROPERTY
PURCHASE AGREEMENT 

 

This
Agreement is made effective the 5th day of July, 2017.

 

 BETWEEN:

 

	 	WALKER
    RIVER RESOURCES CORP., (“WRR”) a british columbia company,
	 	with
    an office at 1130 West Pender st.-suite 820 Vancouver, B.C. v6E 4A4
	 	 
	 	Fax
    Number: 819 825-1199
	 	 
	And:	NEVADA
    CANYON GOLD CORP., (“NCG”) a nevada company, with an office at 
	 	316
    CALIFORNIA AVE, Suite 543 Reno, Nevada 89509
	 	 
	  	Fax
    Number: 888 909-1033

 

RECITALS

 

A.
WRR and NCG are parties to an Exploration Agreement with Option to Form a Joint Venture dated September 15, 2015 (the “Option
Agreement”) pursuant to which NCG has acquired a 30% undivided interest in the mineral claims situated about 60 kilometers
south of Yerington, Nevada, in the Wassuk Range, within Mineral County (the “Lapon Canyon Claims”), fully described
in Schedule “A” attached to this Agreement.

 

B.
WRR holds a 70% interest in the Lapon Canyon Claims and NCG owns a 30% interest in the Lapon Canyon Claims.

 

C.
NCG has agreed to sell and transfer to WRR all of its right, title and interest in and to the Lapon property on the terms and
conditions contained in this Agreement.

 

D.
WRR and NCG also wish to terminate the Option Agreement.

 

In
consideration of the recitals and valuable consideration, the receipt and sufficiency of which are acknowledged, the parties agree
as follows:

 

1.
DEFINITIONS

 

1.1
Definitions

 

Whenever
used in this Agreement, including the recitals and schedules hereto, unless there is something in the subject matter or context
inconsistent therewith, the following words and terms will have the respective meanings ascribed to them as follows:

 

	(a)
    	“Agreement”
    means this Property Purchase Agreement, all schedules attached hereto, and all instruments supplemental hereto or in amendment
    or confirmation hereof; “hereof”, “hereto”, “herein” and “hereunder” and similar
    expressions mean and refer to this Agreement and not to any particular section; “section”, “paragraph”
    or “clause” means and refers to the specified section, paragraph or clause of this Agreement;

 

    	 

    	 

    

 

	(b)
    	“Applicable
    Securities Laws” means the securities laws of British Columbia and of every other jurisdiction in which WRR and
    NCG are resident or the Transaction takes place, and the respective rules and regulations under such laws together with the
    published instruments, notes, statements and policies of the securities commission or applicable regulatory authority in each
    such jurisdiction, all as amended from time to time;
	 	 
	(c)
    	“Closing”
    means the completion of the sale and purchase of the NCG Interest as contemplated in this Agreement;
	 	 
	(d)
    	“Closing
    Date” means five days after Exchange approval of the Transaction, or such other date as the Parties may agree as
    to the date upon which the Closing will take place;
	 	 
	(e)
    	“Effective
    Date” means the date this Agreement is entered into;
	 	 
	(f)
    	“Encumbrance”
    means a mortgage, pledge, hypothecation, lien, easement, right-of-way, encroachment, covenant, condition, right of re-entry,
    lease, licence, assignment, option, claim or title defect, encumbrance or charge, whether or not registered or unregistered
    relating to real or personal property;
	 	 
	(g)
    	“Exchange”
    means the TSX Venture Exchange;
	 	 
	(h)
    	“Exemptions”
    has the meaning ascribed thereto in section 2.2(a);
	 	 
	(i)
    	“Lapon
    Property” means the Lapon Canyon claims described in Schedule “A” attached to this Agreement and all
    related claims, concessions, permits, licenses and other applicable rights; 
	 	 
	(j)
    	“Material
    Adverse Effect” means, in respect of either Party, any change, effect, event, occurrence, condition or development,
    individually or in aggregate, that is or could reasonably be expected to be, material and adverse to the business, assets,
    properties, material liabilities (contingent or otherwise), capitalization, condition (financial or otherwise) or results
    of operations or prospects of that other Party, other than any change, effect, event, occurrence, condition or development
    set out below:

 

	 	(i)	conditions
    affecting the mining industry generally in jurisdictions in which the Party carries on business, including changes in commodity
    prices, accounting procedures, applicable laws or taxes;
	 	 	 
	 	(ii)	general
    economic conditions, or financial, credit, currency exchange, securities or commodities markets in general;
	 	 	 
	 	(iii)	any
    natural disaster; 
	 	 	 
	 	(iv)	war,
    armed hostilities or terrorist acts;

 

	(k)	“NCG
    Interest” means all right, title and interest of any nature that NCG holds or owns, beneficially or otherwise, in
    the Lapon Project;
	 	 
	(l)
    	“Parties”
    means, WRR and NCG and “Party” means one of them;
	 	 
	(m)
    	“Person”
    means an individual, corporation, partnership, unincorporated syndicate, unincorporated organization, trust, trustee, executor,
    administrator, or other legal representative, government or governmental agency, department or instrumentality, or any group
    or combination thereof;
	 	 
	(n)	“Royalty”
    means the percentage of the underlying Net Smelter Royalties (NSR) payable in connection with commencement of commercial production
    which are payable to the owner(s) of the underlying NSRs (but specifically not including any ores owned by either of the parties
    hereto);

 

    	 

    	 

    

 

	(o)	“Transaction”
    means the acquisition of the NCG Interest WRR in consideration for the WRR Securities pursuant to section 2.1, upon and subject
    to the terms and conditions of this Agreement;
	 	 
	(p)
    	“WRR
    Consideration Securities” means 9,100,000 WRR Consideration Shares and WRR Consideration Warrants, exercisable for
    11,900,000 common shares of WRR to be issued to NCG in consideration of the purchase by WRR of the NCG Interest in accordance
    with the provisions of section 2.1;
	 	 
	(q)	“WRR
    Consideration Shares” means the common shares of WRR, which common shares will each be issued at a deemed price
    of $0.14; and
	 	 
	(r)
    	“WRR
    Consideration Warrants” means common share purchase warrants of WRR exercisable to acquire 10,711,183 common shares
    of WRR without any additional consideration. Each warrant will contain a provision restricting NCG from exercising any warrants
    which will result in NCG owning 10% or more of the common shares of WRR.

 

2.
PURCHASE AND SALE OF NCG’S INTEREST 

 

2.1
Purchase and Sale of NCG’s Interest in Lapon Project

 

Upon
and subject to the terms and conditions of this Agreement, NCG agrees to sell, and WRR agrees to purchase, NCG’s 30% undivided
interest in the Lapon Project, free and clear of all Encumbrances, in consideration for, inter alia, the issuance of the WRR Consideration
Securities.

 

2.2
Acknowledgements re Securities Laws

 

NCG
acknowledges and agrees with WRR as follows:

 

(a)
the issuance of the WRR Consideration Securities will be made pursuant to appropriate exemptions (the “Exemptions”)
from the prospectus requirements of Applicable Securities Laws, which WRR represents and warrants to NCG are available in connection
with the issuance of the WRR Consideration Securities;

 

(b)
as a consequence of acquiring the WRR Consideration Securities pursuant to the Exemptions:

 

	 	(i)	NCG
    may not receive information that might otherwise be required to be provided to it, and WRR is relieved from certain obligations
    that would otherwise apply if the Exemptions were not being relied upon by WRR;
	 	 	 
	 	(ii)	there
    is no government or other insurance covering the WRR Consideration Securities;
	 	 	 
	 	(iii)	there
    are risks associated with the acquisition of the WRR Consideration Securities; and
	 	 	 
	 	(iv)	no
    securities commission, stock exchange or similar regulatory authority has reviewed or passed
    on the merits of an investment in the WRR Consideration Securities;

 

	(c)
    	NCG
    is knowledgeable of, or has been independently advised as to, the Applicable Securities Laws of that jurisdiction which apply
    to the issuance of the WRR Consideration Securities, as well as the policies of the Exchange, which may impose restrictions
    on the resale of such WRR Consideration Securities and it is the responsibility of NCG to find out what those trade restrictions
    are, and to comply with them before selling the WRR Consideration Securities. 

 

    	 

    	 

    

 

3.
REPRESENTATIONS, WARRANTIES AND COVENANTS OF WRR

 

3.1
Representations and Warranties of WRR

 

To
induce NCG to enter into and complete the Transaction, WRR represents, warrants and covenants to NCG that WRR:

 

	(a)	has
    the capacity to enter into and to perform this Agreement and all corporate and other actions required to authorize WRR to
    enter into and perform this Agreement have been properly taken;
	 	 
	(b)	will
    not breach any other agreement or arrangement by entering into or performing this Agreement;
	 	 
	(c)	has
    properly executed this Agreement and that this Agreement is WRR’s valid and binding legal obligation enforceable in
    accordance with its terms;
	 	 
	(d)	is
    a corporation duly incorporated and in good standing in its jurisdiction of incorporation and that it is qualified to do business
    and is in good standing in the states where necessary in order to carry out the purposes of this Agreement;
	 	 
	(e)	It
    has the power and authority to carry on its business and to make this Agreement and any agreement that is contemplated by
    this Agreement;
	 	 
	(f)	Neither
    the making nor performing of this Agreement or any of the agreements contemplated by it conflict with, breach or accelerate
    the performance of any other agreement that it has made; and
	 	 
	(g)	The
    making of this Agreement and any agreements contemplated by it does not violate or breach its organizational documents or
    the laws of any applicable jurisdiction or regulatory body and has been authorized by its board of directors.

 

3.2
Covenants of WRR

 

WRR
covenants and agrees that it will do the following:

 

	(a)	Exchange,
Regulatory and Third Party Approvals – obtain all Exchange, regulatory and third  party approvals and shall provide
or obtain, as applicable, in a timely manner:

 

	 	(i)	such
    information as is required by the Exchange and applicable securities regulatory authorities, and shall prepare and file such
    news release or disclosure document disclosing the Transaction as is required,
	 	 	 
	 	(ii)	all
    third party consents or agreements required by WRR to complete the Transaction, and
	 	 	 
	 	(iii)	such
    other documents as NCG may reasonably request.

 

	(b)	Satisfaction
of Conditions – use all reasonable commercial efforts to satisfy (or cause the satisfaction of) the conditions precedent
to its obligations hereunder set forth in section 5.2 to the extent such conditions precedent are within its control, including
using its reasonable commercial efforts to obtain all necessary consents, approvals and authorizations as are required to be obtained
by it under any applicable laws; 

 

    	 

    	 

    

 

	(c)
    	Delivery
    of WRR Consideration Securities – at the Closing Date, deliver to the NCG certificates  representing the WRR
    Consideration Securities as provided in section 2.1 above; and
	 	 
	(d)
    	Approval
    of the Exchange and Listing of WRR Consideration Securities – make an application for conditional and final approval
    of the Exchange and to list the WRR Consideration Securities, and shall afford NCG and its counsel the right to review any
    such application(s) (including any form to be filed or news release to be issued pursuant to Policy 5.3 Acquisitions and Dispositions
    of Non-Cash Assets of the Exchange) and material correspondence with or acceptance letter from the Exchange and, at NCG’s
    reasonable request, participate in discussions with the Exchange with respect to the Transaction.

 

3.3
Survival

 

The
representations and warranties made by WRR under this section 3 are true and correct as of the date of this Agreement and will
be true and correct at the Closing Date as though they were made at that time.

 

4.
REPRESENTATIONS, WARRANTIES AND COVENANTS OF NCG

 

4.1
Representations and Warranties of NCG

 

To
induce WRR to enter into and complete the Transaction, NCG represents and warrants to WRR that (unless otherwise specified):

 

	(a)
    	It
    is duly organized in accordance with the laws of the State of Nevada and is in good standing in its incorporating and operating
    jurisdictions. 
	 	 
	(b)
    	It
    has the power and authority to carry on its business and to make this Agreement and any agreement that is contemplated by
    this Agreement. 
	 	 
	(c)	Neither
    the making nor performing of this Agreement or any of the agreements contemplated  by it conflict with, breach or accelerate
    the performance of any other agreement. 
	 	 
	(d)	The
    making of this Agreement and any agreements contemplated by it does not violate or breach its organizational documents or
    the laws of any applicable jurisdiction or regulatory body and has been authorized by its board of directors.
	 	 
	(e)	NCG
    is the beneficial owner of, and has good and marketable title to, a 30% undivided interest in  the Lapon Property, free
    and clear of all Encumbrances of any nature or kind whatsoever, except  for the Royalty.
	 	 
	(f)
    	Schedule
    “A” contains a complete and accurate list and description of all mineral dispositions comprising the Lapon Property.
    NCG has paid all taxes, assessments, rentals, levies, or other payments relating to the Lapon Property required to be made
    by NCG to any federal, territorial, or municipal government instrumentality or authority. There is no adverse claim or challenge
    against or to the ownership of or title to the Lapon Property, or any portion thereof, nor to the knowledge of NCG is there
    any basis for any such claim or challenge. There are no written or verbal agreements or options to purchase or otherwise acquire
    NCG’s 30% undivided interest in the Lapon Property or any portion thereof or any right or interest therein, and, other
    than the Royalty, no Person is entitled to any royalty or other payment in the nature of rent or royalty on any Minerals or
    any other such products removed from the Lapon Property.
	 	 
	(g)	 To
    the knowledge of NCG, all work carried out by NCG on the Lapon Property has been carried out in compliance with all applicable
    laws, including Environmental Laws, and neither NCG, nor to its knowledge any person, has received any notice of any breach
    of any such law and it has no knowledge of any facts which would lead a well-informed operator in the mining industry to believe
    there are any material environmental liabilities associated with the Lapon Property and to the knowledge of NCG there are
    no environmental audits, evaluations, assessments or studies relating to it.

 

    	 

    	 

    

 

	(h)	To
    the knowledge of NCG, there is no material outstanding indebtedness or any material liabilities or obligations (whether accrued,
    determinable, absolute, contingent or otherwise) in relation to the NCG Interest.
	 	 
	(i)
    	To
    the knowledge of NCG, it is not in default of any material term, covenant or condition under or in respect of any judgment,
    order, agreement or instrument to which it is a party or to which it or the NCG Interest are subject, which could, or could
    be reasonably expected to, result in a Material Adverse Effect on the NCG Interest. NCG is not in violation of any term of
    its charter documents or of any term or provision of any material agreement, indenture or other instrument applicable to it
    which would, or would reasonably be expected to, result in any Material Adverse Effect on the NCG Interest, and there is no
    action, suit, proceeding or investigation commenced, pending or, to the knowledge of NCG, threatened which, either individually
    or in the aggregate, might result in any Material Adverse Effect on the NCG Interest, or which places, or could place, in
    question the validity or enforceability, as applicable, of this Agreement, or any document or instrument delivered, or to
    be delivered, by NCG pursuant hereto or thereto, or which questions the validity of the NCG Interest.
	 	 
	(j)
    	None
    of the foregoing representations and statements of fact contains any untrue statement of material fact or omits to state any
    material fact necessary to make any such statement or representation not misleading to a prospective purchaser of the NCG
    Interest seeking full information related to NCG and the NCG Interest. 

 

4.2
Covenants of NCG

 

NCG
covenants and agrees with WRR as follows:

 

	(a)	Exchange,
    Regulatory and Third Party Approvals – NCG will use its commercially  reasonable efforts to assist WRR with
    obtaining all Exchange, regulatory and third party  approvals by providing WRR, in a timely manner, with:

 

	 	(i)	such
    information about NCG, the NCG Interest and the Properties that constitutes full, true and plain disclosure as required by
    the Exchange and applicable securities regulatory authorities in a news release or other disclosure document disclosing the
    Transaction,
	 	 	 
	 	(ii)	all
    required third party consents or agreements to be able to transfer the NCG Interest to WRR on Closing, and
	 	 	 
	 	(iii)	such
    other documents as WRR may reasonably request;

 

	(b)	Conditions
    Precedent – NCG will use all reasonable commercial efforts to satisfy (or cause the satisfaction of) the conditions
    precedent to its obligations hereunder set forth in section 5.1 to the extent the conditions precedent are within its control,
    including using its reasonable commercial efforts to obtain all necessary consents, approvals and authorizations as are required
    to be obtained by it under any applicable laws;
	 	 
	(c)	Preservation
    of the NCG Interest – upon execution of this Agreement up to the Closing Date, NCG will not in any way encumber,
    sell, transfer or assign the NCG Interest; and

 

    	 

    	 

    

 

	(d)	Transfer
    of the NCG Interest – NCG will take all necessary steps and proceedings as approved by counsel for WRR to permit
    the NCG Interest to be duly and validly transferred to WRR at the Closing or as soon thereafter as practicable.

 

4.3
Survival

 

The
representations and warranties made by NCG under this section 4 are true and correct as of the date of this Agreement and will
be true and correct at the Closing Date as though they were made at that time.

 

5.
CONDITIONS PRECEDENT TO CLOSING

 

5.1
WRR Conditions

 

The
obligation of WRR to complete the purchase of the NCG Interest will be subject to the fulfillment, satisfaction of, or compliance
with, at or before the Closing Date, each of the following conditions precedent (each of which is acknowledged to be inserted
for the exclusive benefit of WRR and may be waived only by WRR in whole or in part at or before Closing Date):

 

	(a)	Truth
    and Accuracy of Representations of NCG at the Closing Date – all of the representations, warranties and covenants
    of NCG made in or pursuant to this Agreement (including the Schedules hereto) or in agreements, certificates or other documents
    delivered or given pursuant to this Agreement, including, without limitation, the representations and warranties set forth
    in section 4, will be true and correct in all material respects as at the Closing Date and with the same effect as if made
    at and as of the Closing Date;
	 	 
	(b)	Performance
    of Obligations – NCG will have complied with and performed in all respects its obligations, covenants and agreements
    herein;
	 	 
	(c)	Exchange
    Approval – the Exchange will have accepted this Agreement and the Transaction, including the issuance and the listing
    of the WRR Consideration Securities;
	 	 
	(d)	No
    Actions Taken Restricting Sale – no action or proceeding by law or in equity will be pending or threatened by any
    Person, government, governmental authority, regulatory body or agency to enjoin, restrict or prohibit the sale and transfer
    of the NCG Interest to WRR; and
	 	 
	(e)	No
    Material Adverse Claims – from the date hereof to Closing, no action, suit, proceeding or investigation will have
    been commenced or threatened against NCG, the NCG Interest or the Properties, which, in the reasonable opinion of WRR, if
    successful, would have a Material Adverse Effect on the NCG Interest.

 

5.2
NCG Conditions

 

The
obligation of NCG to complete the sale of the NCG Interest will be subject to the fulfillment, satisfaction of or compliance with,
at or before the Closing Date, each of the following conditions precedent (each of which is acknowledged to be inserted for the
exclusive benefit of NCG and may be waived only by NCG in whole or in part at or before the Closing Date):

 

	(a)	Truth
    and Accuracy of Representations of WRR at the Closing Date – all of the representations, warranties, and covenants
    of WRR made in or pursuant to this Agreement (including the Schedules hereto) or in any agreement, certificate or other document
    delivered or given pursuant to this Agreement, including without limitation the representations and warranties set forth in
    section 3 hereof, will be true and correct in all material respects as at the Closing Date and with the same effect as if
    made at and as of the Closing Date;

 

    	 

    	 

    

 

	(b)	Performance
    of Obligations – WRR will have complied with and performed in all respects all its obligations, covenants and agreements
    herein provided;
	 	 
	(c)	Exchange
    Approval – the Exchange will have accepted this Agreement and the Transaction, including the issuance and the listing
    of the WRR Consideration Securities; and
	 	 
	(d)	No
    Actions Taken Restricting Issuance – no action or proceeding by law or in equity will be pending or threatened by
    any Person, government, governmental authority, regulatory body or agency to enjoin, restrict or prohibit the issuance of
    the WRR Consideration Securities to NCG.

 

6.
CLOSING

 

6.1
Closing Date and Location

 

The
completion of the Transaction will occur on the Closing Date, which will take place at the offices of WRR’s solicitors,
Boughton Law Corporation, Vancouver, BC, unless mutually agreed upon in writing by the Parties.

 

6.2
Concurrent Requirements

 

At
the Closing, each Party will deliver to the other Party such documents and certificates as are required by the terms of this Agreement
to be delivered or paid at the Closing Date and all matters of delivery of documents and certificates by the Parties pursuant
to this Agreement and the registration of all appropriate documents in all appropriate public offices of registration will be
deemed to be concurrent requirements such that nothing is deemed to be completed until everything has been paid, delivered and
registered with respect to the purchase and sale contemplated herein.

 

6.3
Closing Documents of NCG

 

On
the Closing Date, NCG will deliver, or cause to be delivered, to WRR the following:

 

	(a)	all
    other necessary quitclaims, consents, waivers (including waivers of pre-emptive rights and rights of first refusal) and authorizations
    required to enable or effect the transfer of the NCG Interest to WRR; and 
	 	 
	(b)	such
    other documents as WRR may reasonably require to transfer the NCG Interest to WRR and complete the Transaction.

 

6.4
Closing Documents of WRR

 

On
the Closing Date, WRR will cause to be executed and delivered share certificates

 

(a)
share certificates representing the WRR Consideration Securities registered as directed by NCG; and

 

(b)
such other documents as NCG may reasonably require to complete the Transaction.

 

7.
TERMINATION OF OPTION AGREEMENT

 

7.1
The Parties acknowledge that the Option Agreement is terminated and that neither Party has any rights, obligations or liabilities
owing to the other in relation thereto.

 

    	 

    	 

    

 

8.
TRANSFERABILITY

 

8.1
Assignment. Either party is not permitted under any circumstances to attempt to, or assign its rights under this Agreement,
or any part thereof, or transfer this Agreement to another Party without the other Parties’ express written consent, which
may be withheld/denied for any reason or for no reason, all in the absolute and unfettered discretion of the Parties.

 

9.
INDEPENDENCE

 

9.1
Independence. Nothing in this Agreement creates a partnership between WRR and NCG.

 

10.
CHOICE OF LAW AND ARBITRATION

 

10.1
Applicable Law. This Agreement is governed solely and exclusively by the laws of Nevada, as to any and all matters. Jurisdiction
and venue shall rest solely and exclusively in the courts of Washoe County, Nevada.

 

11.
NOTICES

 

11.1
Any notice, demand or other communication required or permitted to be given to any party hereunder shall be in writing and shall
be either:

 

	(a)	personally
    delivered; or
	 	 
	(b)	sent
    by same day or next day courier; or
	 	 
	(c)	sent
    by telegraph, telecopier, or telex or similar method of telecommunication, charges prepaid, and  confirmed by prepaid
    registered mail; or
	 	 
	(d)	  sent
    by prepaid registered mail.

 

Any
notice so given shall be sent to the parties at the following respective addresses:

 

if
to Walker River Resources Corp:

Attn:
Mr. Michel David, President

Walker
River Resources Corp.

1130
West Pender St, Suite 820

Vancouver,
B.C. V6C 2C2

 

if
to Nevada Canyon Gold Corp:

Attn:
Mr. Jeffrey Cocks, President

Nevada
Canyon Gold Corp

316
California Ave, Suite 543

Reno,
Nevada 89509

 

Any
party may from time to time change its address by written notice to the other parties given in accordance with ‘The provisions
hereof. Any notice or communication sent by courier or given by personal delivery shall be deemed to be received on the date of
delivery; any notice sent by telex, or telegraph or similar method of telecommunication shall be deemed to be received on the
date of the sending of the telex, telegraph or similar method of telecommunication, as the case may be; and any notice sent by
prepaid registered mail shall be deemed to be received on the fifth day after postmark by the postal service.

 

12.
PRESS RELEASES

 

12.1
Press Releases. Prior to issuing any press release or other disclosure of information regarding the Lapon Project, WRR
or NCG, as the case may be, shall submit its press release or information disclosure to the other party for review and approval.
If no comments or approval have been given by the receiving party within two (2) working days following receipt, the press release
or information distribution shall be deemed approved.

 

    	 

    	 

    

 

13.
BROKER’S /FINDER’S FEES

 

13.1
The parties represent and warrant to and with each other that the transaction evidenced by this Agreement was initiated, negotiated
and completed by the parties hereto directly, as principals, and without the intervention of any broker, dealer, agent or finder,
except as otherwise provided herein. Each party agrees to indemnify and hold the other party harmless from and against any loss,
damage, cost or expense, including without limitation, attorneys’ fees and litigation expenses, resulting from any breach
or breaches of the foregoing warranty.

 

14.
GENERAL PROVISIONS

 

14.1
This Agreement sets forth the entire agreement between the Parties and supersedes all previous negotiations, representations and
agreements between the Parties, whether written or oral, that might have led to the Parties making this Agreement.

 

14.2
The Parties acknowledge that they have been given adequate time to review this Agreement and to seek and obtain independent legal
advice, and represent that they have in fact sought and obtained independent legal advice and are satisfied with all of the terms
and conditions of this Agreement.

 

14.3
Time is of the essence of this Agreement.

 

14.4
If any part, section, paragraph or sub-paragraph of this Agreement is held to be invalid, illegal or otherwise void or unenforceable,
the balance of the Agreement continues in full force and effect.

 

14.5
This Agreement inures to the benefit of and is binding upon the Parties and their respective successors and permitted assigns.

 

14.6
The Parties acknowledge that they were jointly responsible for the preparation of this Agreement and, in the event of any inconsistencies
or need for interpretation, there should be no presumption that any construction or interpretation should be construed against
any party.

 

14.7
Each party agrees not to advertise, or otherwise make known to others, any information regarding this Agreement, except as may
be required by law.

 

14.8
Each party represents and warrants they have, respectively, entered into this Agreement freely and in good faith.

 

14.9
The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement.

 

14.10
If any provision of this Agreement is found to be unenforceable, such provision will be limited or deleted to the minimum extent
necessary so that the remaining terms remain in full force and effect.

 

14.11
This Agreement may be executed in any number of counterparts, each of which when executed and delivered (by electronic copy or
otherwise) will be deemed to be an original, and all of which together will constitute one and the same document.

 

    	 

    	 

    

 

SIGNATURE
PAGE FOLLOWS

 

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

 

	WALKER RIVER RESOURCES CORP.	 
	 	 	 
	By 	/s/
    Michel David	 
	 	Michel
    David, President & CEO	 
	 	 	 

 

	NEVADA
CANYON GOLD CORP.	 
	 	 	 
	By 	/s/
    Jeffrey A. Cocks	 
	 	Jeffrey
    A. Cocks, President & CEO	 

 

    	 

    	 

    

 

Schedule
“A”

 

Description
of the Lapon Property

 

This
Schedule “A” is incorporated by reference and deemed to form part of the Property Purchase Agreement between Walker
River Resources Corp. and Nevada Canyon Gold Corp. dated as of July 5, 2017.

 

	CLAIMS	 	BLM
    SERIAL No.	 	LOCATION
    DATE
	Sleeper
    1-3	 	699414-416	 	Feb.
    16. 1994
	Sleeper
    4-10	 	699417-423	 	Feb.
    26, 1994
	Sleeper
    11-12	 	699424-424	 	Mar.
    3, 1994
	Sleeper
    13-14	 	708229-230	 	Sep.
    9, 1994
	Sleeper
    15	 	7088231	 	Sep.
    14, 1994
	Sleeper
    16-18	 	708232-234	 	Sep.
    9, 1994
	Sleeper
    19	 	708235	 	Sep.9,
    1994Exhibit

SECURITIES PURCHASE AGREEMENT

THIS SECURITIES PURCHASE AGREEMENT (this “Agreement”), dated as of June 28, 2017, is entered into by and between FUNCTION(X) INC., a Delaware corporation (“Company”), and ILIAD RESEARCH AND TRADING, L.P., a Utah limited partnership, its successors and/or assigns (“Investor”).
A.    Company and Investor are executing and delivering this Agreement in reliance upon the exemption from securities registration afforded by Section 4(a)(2) of the Securities Act of 1933, as amended (the “1933 Act”), and the rules and regulations promulgated thereunder by the United States Securities and Exchange Commission (the “SEC”).
B.    Investor desires to purchase and Company desires to issue and sell, upon the terms and conditions set forth in this Agreement, a Secured Convertible Promissory Note, in the form attached hereto as Exhibit A, in the original principal amount of $4,410,000.00 (the “Note”), convertible into shares of common stock, $0.001 par value per share, of Company (the “Common Stock”), upon the terms and subject to the limitations and conditions set forth in such Note. 
C.    This Agreement, the Note, the Pledge Agreement (as defined below), the Guaranty (as defined below), and all other certificates, documents, agreements, resolutions and instruments delivered to any party under or in connection with this Agreement, as the same may be amended from time to time, are collectively referred to herein as the “Transaction Documents”.
D.    For purposes of this Agreement: “Conversion Shares” means all shares of Common Stock issuable upon conversion of all or any portion of the Note; and “Securities” means the Note and the Conversion Shares.
NOW, THEREFORE, in consideration of the above recitals and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Company and Investor hereby agree as follows:
1.Purchase and Sale of Securities.
1.1.    Purchase of Securities. Company shall issue and sell to Investor and Investor agrees to purchase from Company the Note. In consideration thereof, Investor shall pay the Purchase Price (as defined below) to Company.
1.2.    Form of Payment. On the Closing Date, Investor shall pay the Purchase Price to Company via wire transfer of immediately available funds against delivery of the Note.
1.3.    Closing Date. Subject to the satisfaction (or written waiver) of the conditions set forth in Section 5 and Section 6 below, the date of the issuance and sale of the Securities pursuant to this Agreement (the “Closing Date”) shall be June 28, 2017, or such other mutually agreed upon date. The closing of the transactions contemplated by this Agreement (the “Closing”) shall occur on the Closing Date by means of the exchange by email of signed .pdf documents, but shall be deemed for all purposes to have occurred at the offices of Hansen Black Anderson Ashcraft PLLC in Lehi, Utah.
1.4.    Collateral for the Note. The Note shall be secured by the following:  
(a)    A Pledge Agreement substantially in the form attached hereto as Exhibit B whereby Robert Sillerman (“Sillerman”), the Chief Executive Officer and a significant stockholder of Company, is pledging all of the membership units in MJX LLC, a Delaware limited liability company, as security for Company’s obligations under the Transaction Documents; and 
(b)    A Guaranty substantially in the form attached hereto as Exhibit C (the “Guaranty”), whereby Sillerman will personally guarantee all of Company’s obligations under the Transaction Documents.
1.5.    Original Issue Discount; Transaction Expense Amount. The Note carries an original issue discount of $400,000.00 (the “OID”). In addition, Company agrees to pay $10,000.00 to Investor to cover Investor’s legal fees, accounting costs, due diligence, monitoring and other transaction costs incurred in connection with the purchase and sale of the Securities (the “Transaction Expense Amount”), all of which amount is included in the initial principal balance of the Note. The “Purchase Price”, therefore, shall be $4,000,000.00, computed as follows: $4,410,000.00 initial principal balance, less the OID, less the Transaction Expense Amount.
2.    Investor’s Representations and Warranties. Investor represents and warrants to Company that as of the Effective Date: (i) Investor is a validly existing limited partnership and has all requisite partnership power to enter into this Agreement; (ii) this Agreement has been duly and validly authorized by Investor; (iii) this Agreement constitutes a valid and binding agreement of Investor enforceable against Investor in accordance with its terms; (iv) Investor is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D of the 1933 Act and agrees to furnish any additional information requested by the Company or any of its affiliates to assure compliance with applicable U.S. federal and state securities laws in connection with the purchase and sale of the Note; (v) the Note will be acquired for Investor’s own account, not as nominee or agent, and not with a view to the resale or distribution of any part thereof in violation of the Securities Act, and Investor has no present intention of selling, granting any participation in, or otherwise distributing the same in violation of the Securities Act without prejudice, however, to such Investor’s right at all times to sell or otherwise dispose of all or any part of the Note in compliance with applicable federal and state securities laws; (vi) Investor acknowledges that the Company shall not be liable for any misrepresentations made by Sillerman in the Pledge Agreement; and (vii) Investor acknowledges that it can bear the economic risk and complete loss of its investment in the Note and has such knowledge and experience in financial or business matters that it is capable of evaluating the merits and risks of the investment contemplated hereby.
3.    Company’s Representations and Warranties. Company represents and warrants to Investor that, other than as disclosed in the Company’s public filings with the SEC, as of the Effective Date: (%4) Company is a corporation duly organized, validly existing and in good standing under the laws of its state of incorporation and has the requisite corporate power to own its properties and to carry on its business as now being conducted; (%4) Company is duly qualified as a foreign corporation to do business and is in good standing in each jurisdiction where the nature of the business conducted or property owned by it makes such qualification necessary; (%4) Company has registered its Common Stock under Section 12(g) of the Securities Exchange Act of 1934, as amended (the “1934 Act”), and is obligated to file reports pursuant to Section 13 or Section 15(d) of the 1934 Act; (%4) each of the Transaction Documents and the transactions contemplated hereby and thereby, have been duly and validly authorized by Company and all necessary actions have been taken; (%4) this Agreement, the Note, and the other Transaction Documents have been duly executed and delivered by Company and constitute the valid and binding obligations of Company enforceable in accordance with their terms; (%4) the execution and delivery of the Transaction Documents by Company, the issuance of Securities in accordance with the terms hereof, and the consummation by Company of the other transactions contemplated by the Transaction Documents do not and will not conflict with or result in a breach by Company of any of the terms or provisions of, or constitute a default under (a) Company’s formation documents or bylaws, each as currently in effect, (b) any indenture, mortgage, deed of trust, or other material agreement or instrument to which Company is a party or by which it or any of its properties or assets are bound, including, without limitation, any listing agreement for the Common Stock, or (c) any existing applicable law, rule, or regulation or any applicable decree, judgment, or order of any court, United States federal, state or foreign regulatory body, administrative agency, or other governmental body having jurisdiction over Company or any of Company’s properties or assets; (%4) no further authorization, approval or consent of any court, governmental body, regulatory agency, self-regulatory organization, or stock exchange or market or the stockholders or any lender of Company is required to be obtained by Company for the issuance of the Securities to Investor or the entering into of the Transaction Documents; (%4) within sixty (60) days of the Closing Date, the Company shall have filed all reports, schedules, forms, statements and other documents required to be filed by Company with the SEC under the 1934 Act on a timely basis or shall have received a valid extension of such time of filing and will file any such report, schedule, form, statement or other document prior to the expiration of any such extension; (%4) there is no action, suit, proceeding, inquiry or investigation before or by any court, public board or body pending or, to the knowledge of Company, threatened against or affecting Company before or by any governmental authority or non-governmental department, commission, board, bureau, agency or instrumentality or any other person, wherein an unfavorable decision, ruling or finding would have a material adverse effect on Company or which would adversely affect the validity or enforceability of, or the authority or ability of Company to perform its obligations under, any of the Transaction Documents; (%4) Company has not consummated any financing transaction that has not been disclosed in a periodic filing or current report with the SEC under the 1934 Act; (%4) Company is not, nor has it been at any time in the previous twelve (12) months, a “Shell Company,” as such type of “issuer” is described in Rule 144(i)(1) under the 1933 Act; (%4) with respect to any commissions, placement agent or finder’s fees or similar payments that will or would become due and owing by Company to any person or entity as a result of this Agreement or the transactions contemplated hereby (“Broker Fees”), any such Broker Fees will be made in full compliance with all applicable laws and regulations and only to a person or entity that is a registered investment adviser or registered broker-dealer; (%4) Investor shall have no obligation with respect to any Broker Fees or with respect to any claims made by or on behalf of other persons for fees of a type contemplated in this subsection that may be due in connection with the transactions contemplated hereby and Company shall indemnify and hold harmless each of Investor, Investor’s employees, officers, directors, stockholders, members, managers, agents, and partners, and their respective affiliates, from and against all claims, losses, damages, costs (including the costs of preparation and attorneys’ fees) and expenses suffered in respect of any such claimed Broker Fees; (%4) when issued, the Conversion Shares will be duly authorized, validly issued, fully paid for and non-assessable, free and clear of all liens, claims, charges and encumbrances; (%4) neither Investor nor any of its officers, directors, stockholders, members, managers, employees, agents or representatives has made any representations or warranties to Company or any of its officers, directors, employees, agents or representatives except as expressly set forth in the Transaction Documents and, in making its decision to enter into the transactions contemplated by the Transaction Documents, Company is not relying on any representation, warranty, covenant or promise of Investor or its officers, directors, members, managers, employees, agents or representatives other than as set forth in the Transaction Documents; (%4) Company acknowledges that the State of Utah has a reasonable relationship and sufficient contacts to the transactions contemplated by the Transaction Documents and any dispute that may arise related thereto such that the laws and venue of the State of Utah, as set forth more specifically in Section 9.3 below, shall be applicable to the Transaction Documents and the transactions contemplated therein; and (%4) Company has performed due diligence and background research on Investor and its affiliates including, without limitation, John M. Fife, and, to its satisfaction, has made inquiries with respect to all matters Company may consider relevant to the undertakings and relationships contemplated by the Transaction Documents including, among other things, the following: http://investing.businessweek.com/research/stocks/people/person.asp?personId=7505107&ticker=UAHC; SEC Civil Case No. 07-C-0347 (N.D. Ill.); SEC Civil Action No. 07-CV-347 (N.D. Ill.); and FINRA Case #2011029203701. Company, being aware of the matters described in subsection (xviii) above, acknowledges and agrees that such matters, or any similar matters, have no bearing on the transactions contemplated by the Transaction Documents and covenants and agrees it will not use any such information as a defense to performance of its obligations under the Transaction Documents or in any attempt to avoid, modify or reduce such obligations.
4.    Company Covenants. Until all of Company’s obligations under all of the Transaction Documents are paid and performed in full, or within the timeframes otherwise specifically set forth below, Company will at all times comply with the following covenants: (%4) within forty-five (45) days of the Closing Date, Company will make all filings with the SEC under the 1934 Act required for the Company to be deemed to have provided adequate current public information under Rule 144, including any and all filings for which the Company was delinquent or received a valid extension from the SEC; (%4) following the thirty (30) day period set forth in the immediately preceding clause and so long thereafter as Investor beneficially owns any of the Securities and for at least twenty (20) Trading Days (as defined in the Note) thereafter, Company will timely file on the applicable deadline all reports required to be filed with the SEC pursuant to Sections 13 or 15(d) of the 1934 Act, and will take all reasonable action under its control to ensure that adequate current public information with respect to Company, as required in accordance with Rule 144 of the 1933 Act, is publicly available, and will not terminate its status as an issuer required to file reports under the 1934 Act even if the 1934 Act or the rules and regulations thereunder would permit such termination; (%4) the Common Stock shall be listed or quoted for trading on any of (a) NYSE, (b) NASDAQ, (c) OTCQX, or (d) OTCQB; provided, however, that in the event that the Common Stock is not listed or quoted for trading on any of (a)-(d) for any reason, the Company shall have a period of fifteen (15) days to re-establish such listing; (%4) when issued, the Conversion Shares will be duly authorized, validly issued, fully paid for and non-assessable, free and clear of all liens, claims, charges and encumbrances; (%4) trading in Company’s Common Stock will not be suspended, halted, chilled, frozen, reach zero bid or otherwise cease on Company’s principal trading market; (%4) Company shall not engage in any Variable Security Issuance (as defined below), other than with Investor, without Investor’s prior written consent, which consent may be granted or withheld in Investor’s sole and absolute discretion; provided that Investor acknowledges that certain shareholders of the Company have preemptive or participation rights (as disclosed in the Company’s filings with the SEC) that may be triggered upon consummation of the transactions contemplated hereby; (%4) at Closing and on the first day of each calendar quarter for so long as the Note remains outstanding or on any other date during which the Note is outstanding, as may be requested by Investor, Company shall cause its Chief Executive Officer to provide to Investor a certificate in substantially the form attached hereto as Exhibit D (the “Officer’s Certificate”) certifying in his personal capacity and in his capacity as Chief Executive Officer of Company the number of Variable Security Holders (as defined below) of Company as of the date the applicable Officer’s Certificate is executed; and (%4) if at any time the Common Stock trades below $0.001, Company shall, as soon as practicable but in no event longer than sixty (60) days thereafter, reduce the par value of its Common Stock to $0.00001 or below. For purposes hereof, the term “Variable Security Holder” means any holder of any Company securities that (A) has or may have conversion rights of any kind, contingent, conditional or otherwise, in which the number of shares that may be issued pursuant to such conversion right varies with the market price of the Common Stock, or (B) are or may become convertible into Common Stock (including without limitation convertible debt, warrants or convertible preferred stock), with a conversion price that varies with the market price of the Common Stock, even if such security only becomes convertible following an event of default, the passage of time, or another trigger event or condition (each a “Variable Security Issuance”). For avoidance of doubt, the issuance of shares of Common Stock under, pursuant to, in exchange for or in connection with any contract or instrument, whether convertible or not, is deemed a Variable Security Issuance for purposes hereof if the number of shares of Common Stock to be issued is based upon or related in any way to the market price of the Common Stock, including, but not limited to, Common Stock issued in connection with a Section 3(a)(9) exchange, a Section 3(a)(10) settlement, or any other similar settlement or exchange. For the avoidance of doubt, the term “Variable Security Issuance” is not intended to include the issuance of securities by the Company pursuant to any of the Company’s convertible securities previously disclosed in the Company’s filings with the SEC, including, without limitation, securities issuable pursuant to the Company’s 2011 Executive Incentive Plan, any series of pre-existing preferred stock or any pre-existing note or debenture. 
5.    Conditions to Company’s Obligation to Sell. The obligation of Company hereunder to issue and sell the Securities to Investor at the Closing is subject to the satisfaction, on or before the Closing Date, of each of the following conditions:
5.1.    Investor shall have executed this Agreement and delivered the same to Company.
5.2.    Investor shall have delivered the Purchase Price to Company in accordance with Section 1.2 above.
6.    Conditions to Investor’s Obligation to Purchase. The obligation of Investor hereunder to purchase the Securities at the Closing is subject to the satisfaction, on or before the Closing Date, of each of the following conditions, provided that these conditions are for Investor’s sole benefit and may be waived by Investor at any time in its sole discretion:
6.1.    Company shall have executed this Agreement and the Note and delivered the same to Investor.
6.2.    Sillerman shall have executed the Pledge Agreement, the Guaranty, and the Officer’s Certificate and delivered the same to Investor.
6.3.    Company shall have delivered to Investor a fully executed Irrevocable Letter of Instructions to Transfer Agent (the “TA Letter”) substantially in the form attached hereto as Exhibit E acknowledged and agreed to in writing by Company’s transfer agent (the “Transfer Agent”).
6.4.    Company shall have delivered to Investor a fully executed Secretary’s Certificate substantially in the form attached hereto as Exhibit F evidencing Company’s approval of the Transaction Documents.
6.5.    Company shall have delivered to Investor a fully executed Share Issuance Resolution substantially in the form attached hereto as Exhibit G to be delivered to the Transfer Agent.
6.6.     Company shall have delivered to Investor fully executed copies of all other Transaction Documents required to be executed by Company herein or therein.
7.    Reservation of Shares. On the date hereof, Company will reserve 67,000,000 shares of Common Stock from its authorized and unissued Common Stock to provide for all issuances of Common Stock under the Note (the “Share Reserve”). Company further agrees to add additional shares of Common Stock to the Share Reserve in increments of 6,000,000 shares as and when requested by Investor if as of the date of any such request the number of shares being held in the Share Reserve is less than three (3) times the number of shares of Common Stock obtained by dividing the Outstanding Balance (as defined in the Note) as of the date of the request by the Conversion Price (as defined in the Note). Company shall further require the Transfer Agent to hold the shares of Common Stock reserved pursuant to the Share Reserve exclusively for the benefit of Investor and to issue such shares to Investor promptly upon Investor’s delivery of a conversion notice under the Note. Finally, Company shall require the Transfer Agent to issue shares of Common Stock pursuant to the Note to Investor out of its authorized and unissued shares, and not the Share Reserve, to the extent shares of Common Stock have been authorized, but not issued, and are not included in the Share Reserve. The Transfer Agent shall only issue shares out of the Share Reserve to the extent there are no other authorized shares available for issuance and then only with Investor’s written consent.
8.    Terms of Future Financings. So long as the Note is outstanding, upon any issuance by Company of any security with any term or condition more favorable to the holder of such security or with a term in favor of the holder of such security that was not similarly provided to Investor in the Transaction Documents, then Company shall notify Investor of such additional or more favorable term and such term, at Investor’s option, shall become a part of the Transaction Documents for the benefit of Investor. Additionally, if Company fails to notify Investor of any such additional or more favorable term, but Investor becomes aware that Company has granted such a term to any third party, Investor may notify Company of such additional or more favorable term and such term shall become a part of the Transaction Documents retroactive to the date on which such term was granted to the applicable third party. The types of terms contained in another security that may be more favorable to the holder of such security include, but are not limited to, terms addressing conversion discounts, conversion lookback periods, interest rates, original issue discounts, stock sale price, conversion price per share, warrant coverage, warrant exercise price, and anti-dilution/conversion and exercise price resets.
9.    Miscellaneous. The provisions set forth in this Section 9 shall apply to this Agreement, as well as all other Transaction Documents as if these terms were fully set forth therein; provided, however, that in the event there is a conflict between any provision set forth in this Section 9 and any provision in any other Transaction Document, the provision in such other Transaction Document shall govern.
9.1.    Certain Capitalized Terms. To the extent any capitalized term used in any Transaction Document is defined in any other Transaction Document (as noted therein), such capitalized term shall remain applicable in the Transaction Document in which it is so used even if the other Transaction Document (wherein such term is defined) has been released, satisfied, or is otherwise cancelled or terminated.
9.2.    Arbitration of Claims. The parties shall submit all Claims (as defined in Exhibit H) arising under this Agreement or any other Transaction Document or any other agreement between the parties and their affiliates or any Claim relating to the relationship of the parties to binding arbitration pursuant to the arbitration provisions set forth in Exhibit H attached hereto (the “Arbitration Provisions”). The parties hereby acknowledge and agree that the Arbitration Provisions are unconditionally binding on the parties hereto and are severable from all other provisions of this Agreement. By executing this Agreement, Company represents, warrants and covenants that Company has reviewed the Arbitration Provisions carefully, consulted with legal counsel about such provisions (or waived its right to do so), understands that the Arbitration Provisions are intended to allow for the expeditious and efficient resolution of any dispute hereunder, agrees to the terms and limitations set forth in the Arbitration Provisions, and that Company will not take a position contrary to the foregoing representations. Company acknowledges and agrees that Investor may rely upon the foregoing representations and covenants of Company regarding the Arbitration Provisions.
9.3.    Governing Law; Venue. This Agreement shall be construed and enforced in accordance with, and all questions concerning the construction, validity, interpretation and performance of this Agreement shall be governed by, the internal laws of the State of Utah, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Utah or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Utah. Each party consents to and expressly agrees that exclusive venue for arbitration of any dispute arising out of or relating to any Transaction Document or the relationship of the parties or their affiliates shall be in Salt Lake County, Utah. Without modifying the parties’ obligations to resolve disputes hereunder pursuant to the Arbitration Provisions, for any litigation arising in connection with any of the Transaction Documents (and notwithstanding the terms (specifically including any governing law and venue terms) of any transfer agent services agreement or other agreement between the Transfer Agent and Company, such litigation specifically includes, without limitation any action between or involving Company and the Transfer Agent under the TA Letter or otherwise related to Investor in any way (specifically including, without limitation, any action where Company seeks to obtain an injunction, temporary restraining order, or otherwise prohibit the Transfer Agent from issuing shares of Common Stock to Investor for any reason)), each party hereto hereby (i) consents to and expressly submits to the exclusive personal jurisdiction of any state or federal court sitting in Salt Lake County, Utah, (ii) expressly submits to the exclusive venue of any such court for the purposes hereof, (iii) agrees to not bring any such action (specifically including, without limitation, any action where Company seeks to obtain an injunction, temporary restraining order, or otherwise prohibit the Transfer Agent from issuing shares of Common Stock to Investor for any reason) outside of any state or federal court sitting in Salt Lake County, Utah, and (iv) waives any claim of improper venue and any claim or objection that such courts are an inconvenient forum or any other claim, defense or objection to the bringing of any such proceeding in such jurisdiction or to any claim that such venue of the suit, action or proceeding is improper. Finally, Company covenants and agrees to name Investor as a party in interest in, and provide written notice to Investor in accordance with Section 9.13 below prior to bringing or filing, any action (including without limitation any filing or action against any person or entity that is not a party to this Agreement, including without limitation the Transfer Agent) that is related in any way to the Transaction Documents or any transaction contemplated herein or therein, including without limitation any action brought by Company to enjoin or prevent the issuance of any shares of Common Stock to Investor by the Transfer Agent, and further agrees to timely name Investor as a party to any such action. Company acknowledges that the governing law and venue provisions set forth in this Section 9.3 are material terms to induce Investor to enter into the Transaction Documents and that but for Company’s agreements set forth in this Section 9.3 Investor would not have entered into the Transaction Documents.
9.4.    Specific Performance. Company acknowledges and agrees that irreparable damage may occur to Investor in the event that Company fails to perform any material provision of this Agreement or any of the other Transaction Documents in accordance with its specific terms. It is accordingly agreed that Investor shall be entitled to an injunction or injunctions to prevent or cure breaches of the provisions of this Agreement or such other Transaction Document and to enforce specifically the terms and provisions hereof or thereof, this being in addition to any other remedy to which the Investor may be entitled under the Transaction Documents, at law or in equity. For the avoidance of doubt, in the event Investor seeks to obtain an injunction against Company or specific performance of any provision of any Transaction Document, such action shall not be a waiver of any right of Investor under any Transaction Document, at law, or in equity, including without limitation its rights to arbitrate any Claim pursuant to the terms of the Transaction Documents.
9.5.    Calculation Disputes. Notwithstanding the Arbitration Provisions, in the case of a dispute as to any determination or arithmetic calculation under the Transaction Documents, including without limitation, calculating the Outstanding Balance, Conversion Price, Conversion Shares, or VWAP (as defined in the Note) (each, a “Calculation”), Company or Investor (as the case may be) shall submit any disputed Calculation via email or facsimile with confirmation of receipt (i) within two (2) Trading Days after receipt of the applicable notice giving rise to such dispute to Company or Investor (as the case may be) or (ii) if no notice gave rise to such dispute, at any time after Investor learned of the circumstances giving rise to such dispute. If Investor and Company are unable to agree upon such Calculation within two (2) Trading Days of such disputed Calculation being submitted to Company or Investor (as the case may be), then Investor will promptly submit via email or facsimile the disputed Calculation to Unkar Systems Inc. (“Unkar Systems”). Investor shall cause Unkar Systems to perform the Calculation and notify Company and Investor of the results no later than ten (10) Trading Days from the time it receives such disputed Calculation. Unkar Systems’ determination of the disputed Calculation shall be binding upon all parties absent demonstrable error. Unkar Systems’ fee for performing such Calculation shall be paid by the incorrect party, or if both parties are incorrect, by the party whose Calculation is furthest from the correct Calculation as determined by Unkar Systems. In the event Company is the losing party, no extension of the Delivery Date (as defined in the Note) shall be granted and Company shall incur all effects for failing to deliver the applicable shares in a timely manner as set forth in the Transaction Documents. Notwithstanding the foregoing, Investor may, in its sole discretion, designate an independent, reputable investment bank or accounting firm other than Unkar Systems to resolve any such dispute and in such event, all references to “Unkar Systems” herein will be replaced with references to such independent, reputable investment bank or accounting firm so designated by Investor.
9.6.    Counterparts. Each Transaction Document may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one instrument. The parties hereto confirm that any electronic copy of another party’s executed counterpart of a Transaction Document (or such party’s signature page thereof) will be deemed to be an executed original thereof.
9.7.    Document Imaging. Investor shall be entitled, in its sole discretion, to image or make copies of all or any selection of the agreements, instruments, documents, and items and records governing, arising from or relating to any of Company’s loans, including, without limitation, this Agreement and the other Transaction Documents, and Investor may destroy or archive the paper originals. The parties hereto (i) waive any right to insist or require that Investor produce paper originals, (ii) agree that such images shall be accorded the same force and effect as the paper originals, (iii) agree that Investor is entitled to use such images in lieu of destroyed or archived originals for any purpose, including as admissible evidence in any demand, presentment or other proceedings, and (iv) further agree that any executed facsimile (faxed), scanned, emailed, or other imaged copy of this Agreement or any other Transaction Document shall be deemed to be of the same force and effect as the original manually executed document.
9.8.    Headings. The headings of this Agreement are for convenience of reference only and shall not form part of, or affect the interpretation of, this Agreement.
9.9.    Severability. In the event that any provision of this Agreement is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform to such statute or rule of law. Any provision hereof which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision hereof.
9.10.    Entire Agreement. This Agreement, together with the other Transaction Documents, contains the entire understanding of the parties with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither Company nor Investor makes any representation, warranty, covenant or undertaking with respect to such matters. For the avoidance of doubt, all prior term sheets or other documents between Company and Investor, or any affiliate thereof, related to the transactions contemplated by the Transaction Documents (collectively, “Prior Agreements”), that may have been entered into between Company and Investor, or any affiliate thereof, are hereby null and void and deemed to be replaced in their entirety by the Transaction Documents. To the extent there is a conflict between any term set forth in any Prior Agreement and the term(s) of the Transaction Documents, the Transaction Documents shall govern.
9.11.    No Reliance. Company acknowledges and agrees that neither Investor nor any of its officers, directors, members, managers, representatives or agents has made any representations or warranties to Company or any of its officers, directors, representatives, agents or employees except as expressly set forth in the Transaction Documents and, in making its decision to enter into the transactions contemplated by the Transaction Documents, Company is not relying on any representation, warranty, covenant or promise of Investor or its officers, directors, members, managers, agents or representatives other than as set forth in the Transaction Documents.
9.12.    Amendments. No provision of this Agreement may be waived or amended other than by an instrument in writing signed by both parties hereto.
9.13.    Notices. Any notice required or permitted hereunder shall be given in writing (unless otherwise specified herein) and shall be deemed effectively given on the earliest of: (i) the date delivered, if delivered by personal delivery as against written receipt therefor or by email to an executive officer, or by facsimile (with successful transmission confirmation), (ii) the earlier of the date delivered or the third Trading Day after deposit, postage prepaid, in the United States Postal Service by certified mail, or (iii) the earlier of the date delivered or the third Trading Day after mailing by express courier, with delivery costs and fees prepaid, in each case, addressed to each of the other parties thereunto entitled at the following addresses (or at such other addresses as such party may designate by five (5) calendar days’ advance written notice similarly given to each of the other parties hereto):
If to Company:

Function(x) Inc.
Attn: Robert Sillerman
902 Broadway, 11th Floor
New York, New York 10010

If to Investor:

Iliad Research and Trading, L.P.
Attn: John Fife
303 East Wacker Drive, Suite 1040
Chicago, Illinois 60601 

With a copy to (which copy shall not constitute notice): 

Hansen Black Anderson Ashcraft PLLC
Attn: Jonathan Hansen
3051 West Maple Loop Drive, Suite 325
Lehi, Utah 84043

9.14.    Successors and Assigns. This Agreement or any of the severable rights and obligations inuring to the benefit of or to be performed by Investor hereunder may be assigned by Investor to a third party, including its affiliates, in whole or in part, without the need to obtain Company’s consent thereto. Company may not assign its rights or obligations under this Agreement or delegate its duties hereunder without the prior written consent of Investor.
9.15.    Survival. The representations and warranties of Company and the agreements and covenants set forth in this Agreement shall survive the Closing hereunder notwithstanding any due diligence investigation conducted by or on behalf of Investor. Company agrees to indemnify and hold harmless Investor and all its officers, directors, employees, attorneys, and agents for loss or damage arising as a result of or related to any breach or alleged breach by Company of any of its representations, warranties and covenants set forth in this Agreement or any of its covenants and obligations under this Agreement, including advancement of expenses as they are incurred.
9.16.    Further Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.
9.17.    Investor’s Rights and Remedies Cumulative; Liquidated Damages. All rights, remedies, and powers conferred in this Agreement and the Transaction Documents are cumulative and not exclusive of any other rights or remedies, and shall be in addition to every other right, power, and remedy that Investor may have, whether specifically granted in this Agreement or any other Transaction Document, or existing at law, in equity, or by statute, and any and all such rights and remedies may be exercised from time to time and as often and in such order as Investor may deem expedient. The parties acknowledge and agree that upon Company’s failure to comply with the provisions of the Transaction Documents, Investor’s damages would be uncertain and difficult (if not impossible) to accurately estimate because of the parties’ inability to predict future interest rates and future share prices, Investor’s increased risk, and the uncertainty of the availability of a suitable substitute investment opportunity for Investor, among other reasons. Accordingly, any fees, charges, and default interest due under the Note and the other Transaction Documents are intended by the parties to be, and shall be deemed, liquidated damages (under Company’s and Investor’s expectations that any such liquidated damages will tack back to the Closing Date for purposes of determining the holding period under Rule 144 under the 1933 Act). The parties agree that such liquidated damages are a reasonable estimate of Investor’s actual damages and not a penalty, and shall not be deemed in any way to limit any other right or remedy Investor may have hereunder, at law or in equity. The parties acknowledge and agree that under the circumstances existing at the time this Agreement is entered into, such liquidated damages are fair and reasonable and are not penalties. All fees, charges, and default interest provided for in the Transaction Documents are agreed to by the parties to be based upon the obligations and the risks assumed by the parties as of the Closing Date and are consistent with investments of this type. The liquidated damages provisions of the Transaction Documents shall not limit or preclude a party from pursuing any other remedy available at law or in equity; provided, however, that the liquidated damages provided for in the Transaction Documents are intended to be in lieu of actual damages.
9.18.    Ownership Limitation. Notwithstanding anything to the contrary contained in this Agreement or the other Transaction Documents, if at any time Investor would be issued shares of Common Stock under any of the Transaction Documents, but such issuance would cause Investor (together with its affiliates) to beneficially own a number of shares exceeding the Maximum Percentage (as defined in the Note), then Company must not issue to Investor the shares that would cause Investor to exceed the Maximum Percentage. The shares of Common Stock issuable to Investor that would cause the Maximum Percentage to be exceeded are referred to herein as the “Ownership Limitation Shares”. Company shall reserve the Ownership Limitation Shares for the exclusive benefit of Investor. From time to time, Investor may notify Company in writing of the number of the Ownership Limitation Shares that may be issued to Investor without causing Investor to exceed the Maximum Percentage. Upon receipt of such notice, Company shall be unconditionally obligated to immediately issue such designated shares to Investor, with a corresponding reduction in the number of the Ownership Limitation Shares. For purposes of this Section, beneficial ownership of Common Stock will be determined under Section 13(d) of the 1934 Act.
9.19.    Attorneys’ Fees and Cost of Collection. In the event of any arbitration or action at law or in equity to enforce or interpret the terms of this Agreement or any of the other Transaction Documents, the parties agree that the party who is awarded the most money (which, for the avoidance of doubt, shall be determined without regard to any statutory fines, penalties, fees, or other charges awarded to any party) shall be deemed the prevailing party for all purposes and shall therefore be entitled to an additional award of the full amount of the attorneys’ fees, deposition costs, and expenses paid by such prevailing party in connection with arbitration or litigation without reduction or apportionment based upon the individual claims or defenses giving rise to the fees and expenses. Nothing herein shall restrict or impair an arbitrator’s or a court’s power to award fees and expenses for frivolous or bad faith pleading. If (i) the Note is placed in the hands of an attorney for collection or enforcement prior to commencing arbitration or legal proceedings, or is collected or enforced through any arbitration or legal proceeding, or Investor otherwise takes action to collect amounts due under the Note or to enforce the provisions of the Note, or (ii) there occurs any bankruptcy, reorganization, receivership of Company or other proceedings affecting Company’s creditors’ rights and involving a claim under the Note; then Company shall pay the costs incurred by Investor for such collection, enforcement or action or in connection with such bankruptcy, reorganization, receivership or other proceeding, including, without limitation, attorneys’ fees, expenses, deposition costs, and disbursements.
9.20.    Waiver. No waiver of any provision of this Agreement shall be effective unless it is in the form of a writing signed by the party granting the waiver. No waiver of any provision or consent to any prohibited action shall constitute a waiver of any other provision or consent to any other prohibited action, whether or not similar. No waiver or consent shall constitute a continuing waiver or consent or commit a party to provide a waiver or consent in the future except to the extent specifically set forth in writing.
9.21.    Waiver of Jury Trial. EACH PARTY TO THIS AGREEMENT IRREVOCABLY WAIVES ANY AND ALL RIGHTS SUCH PARTY MAY HAVE TO DEMAND THAT ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR IN ANY WAY RELATED TO THIS AGREEMENT, ANY OTHER TRANSACTION DOCUMENT, OR THE RELATIONSHIPS OF THE PARTIES HERETO BE TRIED BY JURY. THIS WAIVER EXTENDS TO ANY AND ALL RIGHTS TO DEMAND A TRIAL BY JURY ARISING UNDER COMMON LAW OR ANY APPLICABLE STATUTE, LAW, RULE OR REGULATION. FURTHER, EACH PARTY HERETO ACKNOWLEDGES THAT SUCH PARTY IS KNOWINGLY AND VOLUNTARILY WAIVING SUCH PARTY’S RIGHT TO DEMAND TRIAL BY JURY.
9.22.    Time is of the Essence. Time is expressly made of the essence with respect to each and every provision of this Agreement and the other Transaction Documents.
9.23.    Voluntary Agreement. Company has carefully read this Agreement and each of the other Transaction Documents and has asked any questions needed for Company to understand the terms, consequences and binding effect of this Agreement and each of the other Transaction Documents and fully understand them. Company has had the opportunity to seek the advice of an attorney of Company’s choosing, or has waived the right to do so, and is executing this Agreement and each of the other Transaction Documents voluntarily and without any duress or undue influence by Investor or anyone else.
[Remainder of page intentionally left blank; signature page follows]

IN WITNESS WHEREOF, the undersigned Investor and Company have caused this Agreement to be duly executed as of the date first above written.

SUBSCRIPTION AMOUNT:

Principal Amount of Note:    $4,410,000.00

Purchase Price:    $4,000,000.00

INVESTOR:

ILIAD RESEARCH AND TRADING, L.P.

By: Iliad Management, LLC, its General Partner

By:    Fife Trading, Inc., its Manager

By:     
      John M. Fife, President     

COMPANY:

FUNCTION(X) INC.

By:            
Printed Name:     
Title:         

ATTACHED EXHIBITS:

		
	Exhibit A
	Note

		
	Exhibit B
	Pledge Agreement

		
	Exhibit C
	Guaranty

		
	Exhibit D
	Officer’s Certificate

		
	Exhibit E
	Irrevocable Transfer Agent Instructions

		
	Exhibit F
	Secretary’s Certificate

		
	Exhibit G
	Share Issuance Resolution

		
	Exhibit H
	Arbitration Provisions

EXHIBIT H

ARBITRATION PROVISIONS

1.    Dispute Resolution. For purposes of this Exhibit H, the term “Claims” means any disputes, claims, demands, causes of action, requests for injunctive relief, requests for specific performance, liabilities, damages, losses, or controversies whatsoever arising from, related to, or connected with the transactions contemplated in the Transaction Documents and any communications between the parties related thereto, including without limitation any claims of mutual mistake, mistake, fraud, misrepresentation, failure of formation, failure of consideration, promissory estoppel, unconscionability, failure of condition precedent, rescission, and any statutory claims, tort claims, contract claims, or claims to void, invalidate or terminate the Agreement (or these Arbitration Provisions (defined below)) or any of the other Transaction Documents. The term “Claims” specifically excludes a dispute over Calculations and enforcement of Investor’s rights and remedies against the personal property described in the Pledge Agreement under the applicable provisions of the Uniform Commercial Code. The parties to the Agreement (the “parties”) hereby agree that the arbitration provisions set forth in this Exhibit H (“Arbitration Provisions”) are binding on each of them. As a result, any attempt to rescind the Agreement (or these Arbitration Provisions) or declare the Agreement (or these Arbitration Provisions) or any other Transaction Document invalid or unenforceable for any reason is subject to these Arbitration Provisions. These Arbitration Provisions shall also survive any termination or expiration of the Agreement. Any capitalized term not defined in these Arbitration Provisions shall have the meaning set forth in the Agreement.
2.    Arbitration. Except as otherwise provided herein, all Claims must be submitted to arbitration (“Arbitration”) to be conducted exclusively in Salt Lake County, Utah and pursuant to the terms set forth in these Arbitration Provisions. Subject to the arbitration appeal right provided for in Paragraph 5 below (the “Appeal Right”), the parties agree that the award of the arbitrator rendered pursuant to Paragraph 4 below (the “Arbitration Award”) shall be (a) final and binding upon the parties, (b) the sole and exclusive remedy between them regarding any Claims, counterclaims, issues, or accountings presented or pleaded to the arbitrator, and (c) promptly payable in United States dollars free of any tax, deduction or offset (with respect to monetary awards). Subject to the Appeal Right, any costs or fees, including without limitation attorneys’ fees, incurred in connection with or incident to enforcing the Arbitration Award shall, to the maximum extent permitted by law, be charged against the party resisting such enforcement. The Arbitration Award shall include default interest (as defined or otherwise provided for in the Note, “Default Interest”) (with respect to monetary awards) at the rate specified in the Note for Default Interest both before and after the Arbitration Award. Judgment upon the Arbitration Award will be entered and enforced by any state or federal court sitting in Salt Lake County, Utah. 
3.    The Arbitration Act. The parties hereby incorporate herein the provisions and procedures set forth in the Utah Uniform Arbitration Act, U.C.A. § 78B-11-101 et seq. (as amended or superseded from time to time, the “Arbitration Act”). Notwithstanding the foregoing, pursuant to, and to the maximum extent permitted by, Section 105 of the Arbitration Act, in the event of conflict or variation between the terms of these Arbitration Provisions and the provisions of the Arbitration Act, the terms of these Arbitration Provisions shall control and the parties hereby waive or otherwise agree to vary the effect of all requirements of the Arbitration Act that may conflict with or vary from these Arbitration Provisions.
4.    Arbitration Proceedings. Arbitration between the parties will be subject to the following:
4.1    Initiation of Arbitration. Pursuant to Section 110 of the Arbitration Act, the parties agree that a party may initiate Arbitration by giving written notice to the other party (“Arbitration Notice”) in the same manner that notice is permitted under Section 9.13 of the Agreement; provided, however, that the Arbitration Notice may not be given by email or fax. Arbitration will be deemed initiated as of the date that the Arbitration Notice is deemed delivered to such other party under Section 9.13 of the Agreement (the “Service Date”). After the Service Date, information may be delivered, and notices may be given, by email or fax pursuant to Section 9.13 of the Agreement or any other method permitted thereunder. The Arbitration Notice must describe the nature of the controversy, the remedies sought, and the election to commence Arbitration proceedings. All Claims in the Arbitration Notice must be pleaded consistent with the Utah Rules of Civil Procedure.
4.2    Selection and Payment of Arbitrator.
(a) Within ten (10) calendar days after the Service Date, Investor shall select and submit to Company the names of three (3) arbitrators that are designated as “neutrals” or qualified arbitrators by Utah ADR Services (http://www.utahadrservices.com) (such three (3) designated persons hereunder are referred to herein as the “Proposed Arbitrators”). For the avoidance of doubt, each Proposed Arbitrator must be qualified as a “neutral” with Utah ADR Services. Within five (5) calendar days after Investor has submitted to Company the names of the Proposed Arbitrators, Company must select, by written notice to Investor, one (1) of the Proposed Arbitrators to act as the arbitrator for the parties under these Arbitration Provisions. If Company fails to select one of the Proposed Arbitrators in writing within such 5-day period, then Investor may select the arbitrator from the Proposed Arbitrators by providing written notice of such selection to Company. 
(b) If Investor fails to submit to Company the Proposed Arbitrators within ten (10) calendar days after the Service Date pursuant to subparagraph (a) above, then Company may at any time prior to Investor so designating the Proposed Arbitrators, identify the names of three (3) arbitrators that are designated as “neutrals” or qualified arbitrators by Utah ADR Service by written notice to Investor. Investor may then, within five (5) calendar days after Company has submitted notice of its Proposed Arbitrators to Investor, select, by written notice to Company, one (1) of the Proposed Arbitrators to act as the arbitrator for the parties under these Arbitration Provisions. If Investor fails to select in writing and within such 5-day period one (1) of the three (3) Proposed Arbitrators selected by Company, then Company may select the arbitrator from its three (3) previously selected Proposed Arbitrators by providing written notice of such selection to Investor. 
(c) If a Proposed Arbitrator chosen to serve as arbitrator declines or is otherwise unable to serve as arbitrator, then the party that selected such Proposed Arbitrator may select one (1) of the other three (3) Proposed Arbitrators within three (3) calendar days of the date the chosen Proposed Arbitrator declines or notifies the parties he or she is unable to serve as arbitrator. If all three (3) Proposed Arbitrators decline or are otherwise unable to serve as arbitrator, then the arbitrator selection process shall begin again in accordance with this Paragraph 4.2.
(d) The date that the Proposed Arbitrator selected pursuant to this Paragraph 4.2 agrees in writing (including via email) delivered to both parties to serve as the arbitrator hereunder is referred to herein as the “Arbitration Commencement Date”.  If an arbitrator resigns or is unable to act during the Arbitration, a replacement arbitrator shall be chosen in accordance with this Paragraph 4.2 to continue the Arbitration.  If Utah ADR Services ceases to exist or to provide a list of neutrals and there is no successor thereto, then the arbitrator shall be selected under the then prevailing rules of the American Arbitration Association.
(e) Subject to Paragraph 4.10 below, the cost of the arbitrator must be paid equally by both parties. Subject to Paragraph 4.10 below, if one party refuses or fails to pay its portion of the arbitrator fee, then the other party can advance such unpaid amount (subject to the accrual of Default Interest thereupon), with such amount being added to or subtracted from, as applicable, the Arbitration Award.
4.3    Applicability of Certain Utah Rules. The parties agree that the Arbitration shall be conducted generally in accordance with the Utah Rules of Civil Procedure and the Utah Rules of Evidence. More specifically, the Utah Rules of Civil Procedure shall apply, without limitation, to the filing of any pleadings, motions or memoranda, the conducting of discovery, and the taking of any depositions. The Utah Rules of Evidence shall apply to any hearings, whether telephonic or in person, held by the arbitrator. Notwithstanding the foregoing, it is the parties’ intent that the incorporation of such rules will in no event supersede these Arbitration Provisions. In the event of any conflict between the Utah Rules of Civil Procedure or the Utah Rules of Evidence and these Arbitration Provisions, these Arbitration Provisions shall control.
4.4    Answer and Default. An answer and any counterclaims to the Arbitration Notice shall be required to be delivered to the party initiating the Arbitration within twenty (20) calendar days after the Arbitration Commencement Date. If an answer is not delivered by the required deadline, the arbitrator must provide written notice to the defaulting party stating that the arbitrator will enter a default award against such party if such party does not file an answer within five (5) calendar days of receipt of such notice. If an answer is not filed within the five (5) day extension period, the arbitrator must render a default award, consistent with the relief requested in the Arbitration Notice, against a party that fails to submit an answer within such time period.
4.5    Related Litigation. The party that delivers the Arbitration Notice to the other party shall have the option to also commence concurrent legal proceedings with any state or federal court sitting in Salt Lake County, Utah (“Litigation Proceedings”), subject to the following: (a) the complaint in the Litigation Proceedings is to be substantially similar to the claims set forth in the Arbitration Notice, provided that an additional cause of action to compel arbitration will also be included therein, (b) so long as the other party files an answer to the complaint in the Litigation Proceedings and an answer to the Arbitration Notice, the Litigation Proceedings will be stayed pending an Arbitration Award (or Appeal Panel Award (defined below), as applicable) hereunder, (c) if the other party fails to file an answer in the Litigation Proceedings or an answer in the Arbitration proceedings, then the party initiating Arbitration shall be entitled to a default judgment consistent with the relief requested, to be entered in the Litigation Proceedings, and (d) any legal or procedural issue arising under the Arbitration Act that requires a decision of a court of competent jurisdiction may be determined in the Litigation Proceedings. Any award of the arbitrator (or of the Appeal Panel (defined below)) may be entered in such Litigation Proceedings pursuant to the Arbitration Act.
4.6    Discovery. Pursuant to Section 118(8) of the Arbitration Act, the parties agree that discovery shall be conducted as follows:
(a) Written discovery will only be allowed if the likely benefits of the proposed written discovery outweigh the burden or expense thereof, and the written discovery sought is likely to reveal information that will satisfy a specific element of a claim or defense already pleaded in the Arbitration. The party seeking written discovery shall always have the burden of showing that all of the standards and limitations set forth in these Arbitration Provisions are satisfied. The scope of discovery in the Arbitration proceedings shall also be limited as follows: 
(i)    To facts directly connected with the transactions contemplated by the Agreement.
(ii)    To facts and information that cannot be obtained from another source or in another manner that is more convenient, less burdensome or less expensive than in the manner requested.
(b) No party shall be allowed (i) more than fifteen (15) interrogatories (including discrete subparts), (ii) more than fifteen (15) requests for admission (including discrete subparts), (iii) more than ten (10) document requests (including discrete subparts), or (iv) more than three (3) depositions (excluding expert depositions) for a maximum of seven (7) hours per deposition. The costs associated with depositions will be borne by the party taking the deposition. The party defending the deposition will submit a notice to the party taking the deposition of the estimated attorneys’ fees that such party expects to incur in connection with defending the deposition. If the party defending the deposition fails to submit an estimate of attorneys’ fees within five (5) calendar days of its receipt of a deposition notice, then such party shall be deemed to have waived its right to the estimated attorneys’ fees.  The party taking the deposition must pay the party defending the deposition the estimated attorneys’ fees prior to taking the deposition, unless such obligation is deemed to be waived as set forth in the immediately preceding sentence. If the party taking the deposition believes that the estimated attorneys’ fees are unreasonable, such party may submit the issue to the arbitrator for a decision.  All depositions will be taken in Utah. 
(c) All discovery requests (including document production requests included in deposition notices) must be submitted in writing to the arbitrator and the other party. The party submitting the written discovery requests must include with such discovery requests a detailed explanation of how the proposed discovery requests satisfy the requirements of these Arbitration Provisions and the Utah Rules of Civil Procedure. The receiving party will then be allowed, within five (5) calendar days of receiving the proposed discovery requests, to submit to the arbitrator an estimate of the attorneys’ fees and costs associated with responding to such written discovery requests and a written challenge to each applicable discovery request. After receipt of an estimate of attorneys’ fees and costs and/or challenge(s) to one or more discovery requests, consistent with subparagraph (c) above, the arbitrator will within three (3) calendar days make a finding as to the likely attorneys’ fees and costs associated with responding to the discovery requests and issue an order that (i) requires the requesting party to prepay the attorneys’ fees and costs associated with responding to the discovery requests, and (ii) requires the responding party to respond to the discovery requests as limited by the arbitrator within twenty-five (25) calendar days of the arbitrator’s finding with respect to such discovery requests. If a party entitled to submit an estimate of attorneys’ fees and costs and/or a challenge to discovery requests fails to do so within such 5-day period, the arbitrator will make a finding that (A) there are no attorneys’ fees or costs associated with responding to such discovery requests, and (B) the responding party must respond to such discovery requests (as may be limited by the arbitrator) within twenty-five (25) calendar days of the arbitrator’s finding with respect to such discovery requests. Any party submitting any written discovery requests, including without limitation interrogatories, requests for production subpoenas to a party or a third party, or requests for admissions, must prepay the estimated attorneys’ fees and costs, before the responding party has any obligation to produce or respond to the same, unless such obligation is deemed waived as set forth above.
(d) In order to allow a written discovery request, the arbitrator must find that the discovery request satisfies the standards set forth in these Arbitration Provisions and the Utah Rules of Civil Procedure. The arbitrator must strictly enforce these standards. If a discovery request does not satisfy any of the standards set forth in these Arbitration Provisions or the Utah Rules of Civil Procedure, the arbitrator may modify such discovery request to satisfy the applicable standards, or strike such discovery request in whole or in part. 
(e) Each party may submit expert reports (and rebuttals thereto), provided that such reports must be submitted within sixty (60) days of the Arbitration Commencement Date. Each party will be allowed a maximum of two (2) experts. Expert reports must contain the following: (i) a complete statement of all opinions the expert will offer at trial and the basis and reasons for them; (ii) the expert’s name and qualifications, including a list of all the expert’s publications within the preceding ten (10) years, and a list of any other cases in which the expert has testified at trial or in a deposition or prepared a report within the preceding ten (10) years; and (iii) the compensation to be paid for the expert’s report and testimony. The parties are entitled to depose any other party’s expert witness one (1) time for no more than four (4) hours. An expert may not testify in a party’s case-in-chief concerning any matter not fairly disclosed in the expert report.
4.6    Dispositive Motions.  Each party shall have the right to submit dispositive motions pursuant Rule 12 or Rule 56 of the Utah Rules of Civil Procedure (a “Dispositive Motion”). The party submitting the Dispositive Motion may, but is not required to, deliver to the arbitrator and to the other party a memorandum in support (the “Memorandum in Support”) of the Dispositive Motion. Within seven (7) calendar days of delivery of the Memorandum in Support, the other party shall deliver to the arbitrator and to the other party a memorandum in opposition to the Memorandum in Support (the “Memorandum in Opposition”). Within seven (7) calendar days of delivery of the Memorandum in Opposition, as applicable, the party that submitted the Memorandum in Support shall deliver to the arbitrator and to the other party a reply memorandum to the Memorandum in Opposition (“Reply Memorandum”). If the applicable party shall fail to deliver the Memorandum in Opposition as required above, or if the other party fails to deliver the Reply Memorandum as required above, then the applicable party shall lose its right to so deliver the same, and the Dispositive Motion shall proceed regardless.
4.7    Confidentiality. All information disclosed by either party (or such party’s agents) during the Arbitration process (including without limitation information disclosed during the discovery process or any Appeal (defined below)) shall be considered confidential in nature. Each party agrees not to disclose any confidential information received from the other party (or its agents) during the Arbitration process (including without limitation during the discovery process or any Appeal) unless (a) prior to or after the time of disclosure such information becomes public knowledge or part of the public domain, not as a result of any inaction or action of the receiving party or its agents, (b) such information is required by a court order, subpoena or similar legal duress to be disclosed if such receiving party has notified the other party thereof in writing and given it a reasonable opportunity to obtain a protective order from a court of competent jurisdiction prior to disclosure, or (c) such information is disclosed to the receiving party’s agents, representatives and legal counsel on a need to know basis who each agree in writing not to disclose such information to any third party. Pursuant to Section 118(5) of the Arbitration Act, the arbitrator is hereby authorized and directed to issue a protective order to prevent the disclosure of privileged information and confidential information upon the written request of either party.
4.8    Authorization; Timing; Scheduling Order. Subject to all other portions of these Arbitration Provisions, the parties hereby authorize and direct the arbitrator to take such actions and make such rulings as may be necessary to carry out the parties’ intent for the Arbitration proceedings to be efficient and expeditious. Pursuant to Section 120 of the Arbitration Act, the parties hereby agree that an Arbitration Award must be made within one hundred twenty (120) calendar days after the Arbitration Commencement Date. The arbitrator is hereby authorized and directed to hold a scheduling conference within ten (10) calendar days after the Arbitration Commencement Date in order to establish a scheduling order with various binding deadlines for discovery, expert testimony, and the submission of documents by the parties to enable the arbitrator to render a decision prior to the end of such 120-day period.
4.9    Relief. The arbitrator shall have the right to award or include in the Arbitration Award (or in a preliminary ruling) any relief which the arbitrator deems proper under the circumstances, including, without limitation, specific performance and injunctive relief, provided that the arbitrator may not award exemplary or punitive damages.
4.10    Fees and Costs. As part of the Arbitration Award, the arbitrator is hereby directed to require the losing party (the party being awarded the least amount of money by the arbitrator, which, for the avoidance of doubt, shall be determined without regard to any statutory fines, penalties, fees, or other charges awarded to any party) to (a) pay the full amount of any unpaid costs and fees of the Arbitration, and (b) reimburse the prevailing party for all reasonable attorneys’ fees, arbitrator costs and fees, deposition costs, other discovery costs, and other expenses, costs or fees paid or otherwise incurred by the prevailing party in connection with the Arbitration.
5.    Arbitration Appeal. 
5.1    Initiation of Appeal.  Following the entry of the Arbitration Award, either party (the “Appellant”) shall have a period of thirty (30) calendar days in which to notify the other party (the “Appellee”), in writing, that the Appellant elects to appeal (the “Appeal”) the Arbitration Award (such notice, an “Appeal Notice”) to a panel of arbitrators as provided in Paragraph 5.2 below.  The date the Appellant delivers an Appeal Notice to the Appellee is referred to herein as the “Appeal Date”. The Appeal Notice must be delivered to the Appellee in accordance with the provisions of Paragraph 4.1 above with respect to delivery of an Arbitration Notice.  In addition, together with delivery of the Appeal Notice to the Appellee, the Appellant must also pay for (and provide proof of such payment to the Appellee together with delivery of the Appeal Notice) a bond in the amount of 110% of the sum the Appellant owes to the Appellee as a result of the Arbitration Award the Appellant is appealing.  In the event an Appellant delivers an Appeal Notice to the Appellee (together with proof of payment of the applicable bond) in compliance with the provisions of this Paragraph 5.1, the Appeal will occur as a matter of right and, except as specifically set forth herein, will not be further conditioned.  In the event a party does not deliver an Appeal Notice (along with proof of payment of the applicable bond) to the other party within the deadline prescribed in this Paragraph 5.1, such party shall lose its right to appeal the Arbitration Award.  If no party delivers an Appeal Notice (along with proof of payment of the applicable bond) to the other party within the deadline described in this Paragraph 5.1, the Arbitration Award shall be final.  The parties acknowledge and agree that any Appeal shall be deemed part of the parties’ agreement to arbitrate for purposes of these Arbitration Provisions and the Arbitration Act.
5.2    Selection and Payment of Appeal Panel.  In the event an Appellant delivers an Appeal Notice to the Appellee (together with proof of payment of the applicable bond) in compliance with the provisions of Paragraph 5.1 above, the Appeal will be heard by a three (3) person arbitration panel (the “Appeal Panel”). 
(a)     Within ten (10) calendar days after the Appeal Date, the Appellee shall select and submit to the Appellant the names of five (5) arbitrators that are designated as “neutrals” or qualified arbitrators by Utah ADR Services (http://www.utahadrservices.com) (such five (5) designated persons hereunder are referred to herein as the “Proposed Appeal Arbitrators”). For the avoidance of doubt, each Proposed Appeal Arbitrator must be qualified as a “neutral” with Utah ADR Services, and shall not be the arbitrator who rendered the Arbitration Award being appealed (the “Original Arbitrator”). Within five (5) calendar days after the Appellee has submitted to the Appellant the names of the Proposed Appeal Arbitrators, the Appellant must select, by written notice to the Appellee, three (3) of the Proposed Appeal Arbitrators to act as the members of the Appeal Panel. If the Appellant fails to select three (3) of the Proposed Appeal Arbitrators in writing within such 5-day period, then the Appellee may select such three (3) arbitrators from the Proposed Appeal Arbitrators by providing written notice of such selection to the Appellant. 
(b)     If the Appellee fails to submit to the Appellant the names of the Proposed Appeal Arbitrators within ten (10) calendar days after the Appeal Date pursuant to subparagraph (a) above, then the Appellant may at any time prior to the Appellee so designating the Proposed Appeal Arbitrators, identify the names of five (5) arbitrators that are designated as “neutrals” or qualified arbitrators by Utah ADR Service (none of whom may be the Original Arbitrator) by written notice to the Appellee.  The Appellee may then, within five (5) calendar days after the Appellant has submitted notice of its selected arbitrators to the Appellee, select, by written notice to the Appellant, three (3) of such selected arbitrators to serve on the Appeal Panel. If the Appellee fails to select in writing within such 5-day period three (3) of the arbitrators selected by the Appellant to serve as the members of the Appeal Panel, then the Appellant may select the three (3) members of the Appeal Panel from the Appellant’s list of five (5) arbitrators by providing written notice of such selection to the Appellee. 
(c)     If a selected Proposed Appeal Arbitrator declines or is otherwise unable to serve, then the party that selected such Proposed Appeal Arbitrator may select one (1) of the other five (5) designated Proposed Appeal Arbitrators within three (3) calendar days of the date a chosen Proposed Appeal Arbitrator declines or notifies the parties he or she is unable to serve as an arbitrator. If at least three (3) of the five (5) designated Proposed Appeal Arbitrators decline or are otherwise unable to serve, then the Proposed Appeal Arbitrator selection process shall begin again in accordance with this Paragraph 5.2; provided, however, that any Proposed Appeal Arbitrators who have already agreed to serve shall remain on the Appeal Panel. 
(d)    The date that all three (3) Proposed Appeal Arbitrators selected pursuant to this Paragraph 5.2 agree in writing (including via email) delivered to both the Appellant and the Appellee to serve as members of the Appeal Panel hereunder is referred to herein as the “Appeal Commencement Date”.  No later than five (5) calendar days after the Appeal Commencement Date, the Appellee shall designate in writing (including via email) to the Appellant and the Appeal Panel the name of one (1) of the three (3) members of the Appeal Panel to serve as the lead arbitrator in the Appeal proceedings. Each member of the Appeal Panel shall be deemed an arbitrator for purposes of these Arbitration Provisions and the Arbitration Act, provided that, in conducting the Appeal, the Appeal Panel may only act or make determinations upon the approval or vote of no less than the majority vote of its members, as announced or communicated by the lead arbitrator on the Appeal Panel.  If an arbitrator on the Appeal Panel ceases or is unable to act during the Appeal proceedings, a replacement arbitrator shall be chosen in accordance with Paragraph 5.2 above to continue the Appeal as a member of the Appeal Panel.  If Utah ADR Services ceases to exist or to provide a list of neutrals, then the arbitrators for the Appeal Panel shall be selected under the then prevailing rules of the American Arbitration Association. 
(d)     Subject to Paragraph 5.7 below, the cost of the Appeal Panel must be paid entirely by the Appellant.
5.3    Appeal Procedure.  The Appeal will be deemed an appeal of the entire Arbitration Award. In conducting the Appeal, the Appeal Panel shall conduct a de novo review of all Claims described or otherwise set forth in the Arbitration Notice.  Subject to the foregoing and all other provisions of this Paragraph 5, the Appeal Panel shall conduct the Appeal in a manner the Appeal Panel considers appropriate for a fair and expeditious disposition of the Appeal, may hold one or more hearings and permit oral argument, and may review all previous evidence and discovery, together with all briefs, pleadings and other documents filed with the Original Arbitrator (as well as any documents filed with the Appeal Panel pursuant to Paragraph 5.4(a) below).  Notwithstanding the foregoing, in connection with the Appeal, the Appeal Panel shall not permit the parties to conduct any additional discovery or raise any new Claims to be arbitrated, shall not permit new witnesses or affidavits, and shall not base any of its findings or determinations on the Original Arbitrator’s findings or the Arbitration Award.  
5.4    Timing.  
 (a)    Within seven (7) calendar days of the Appeal Commencement Date, the Appellant (i) shall deliver or cause to be delivered to the Appeal Panel copies of the Appeal Notice, all discovery conducted in connection with the Arbitration, and all briefs, pleadings and other documents filed with the Original Arbitrator (which material Appellee shall have the right to review and supplement if necessary), and (ii) may, but is not required to, deliver to the Appeal Panel and to the Appellee a Memorandum in Support of the Appellant’s arguments concerning or position with respect to all Claims, counterclaims, issues, or accountings presented or pleaded in the Arbitration. Within seven (7) calendar days of the Appellant’s delivery of the Memorandum in Support, as applicable, the Appellee shall deliver to the Appeal Panel and to the Appellant a Memorandum in Opposition to the Memorandum in Support. Within seven (7) calendar days of the Appellee’s delivery of the Memorandum in Opposition, as applicable, the Appellant shall deliver to the Appeal Panel and to the Appellee a Reply Memorandum to the Memorandum in Opposition. If the Appellant shall fail to substantially comply with the requirements of clause (i) of this subparagraph (a), the Appellant shall lose its right to appeal the Arbitration Award, and the Arbitration Award shall be final.  If the Appellee shall fail to deliver the Memorandum in Opposition as required above, or if the Appellant shall fail to deliver the Reply Memorandum as required above, then the Appellee or the Appellant, as the case may be, shall lose its right to so deliver the same, and the Appeal shall proceed regardless.
(b)     Subject to subparagraph (a) above, the parties hereby agree that the Appeal must be heard by the Appeal Panel within thirty (30) calendar days of the Appeal Commencement Date, and that the Appeal Panel must render its decision within thirty (30) calendar days after the Appeal is heard (and in no event later than sixty (60) calendar days after the Appeal Commencement Date).
5.5    Appeal Panel Award.  The Appeal Panel shall issue its decision (the “Appeal Panel Award”) through the lead arbitrator on the Appeal Panel.  Notwithstanding any other provision contained herein, the Appeal Panel Award shall (a) supersede in its entirety and make of no further force or effect the Arbitration Award (provided that any protective orders issued by the Original Arbitrator shall remain in full force and effect), (b) be final and binding upon the parties, with no further rights of appeal, (c) be the sole and exclusive remedy between the parties regarding any Claims, counterclaims, issues, or accountings presented or pleaded in the Arbitration, and (d) be promptly payable in United States dollars free of any tax, deduction or offset (with respect to monetary awards).  Any costs or fees, including without limitation attorneys’ fees, incurred in connection with or incident to enforcing the Appeal Panel Award shall, to the maximum extent permitted by law, be charged against the party resisting such enforcement. The Appeal Panel Award shall include Default Interest (with respect to monetary awards) at the rate specified in the Note for Default Interest both before and after the Arbitration Award. Judgment upon the Appeal Panel Award will be entered and enforced by a state or federal court sitting in Salt Lake County, Utah. 
5.6    Relief.  The Appeal Panel shall have the right to award or include in the Appeal Panel Award any relief which the Appeal Panel deems proper under the circumstances, including, without limitation, specific performance and injunctive relief, provided that the Appeal Panel may not award exemplary or punitive damages. 
5.7    Fees and Costs.  As part of the Appeal Panel Award, the Appeal Panel is hereby directed to require the losing party (the party being awarded the least amount of money by the arbitrator, which, for the avoidance of doubt, shall be determined without regard to any statutory fines, penalties, fees, or other charges awarded to any party) to (a) pay the full amount of any unpaid costs and fees of the Arbitration and the Appeal Panel, and (b) reimburse the prevailing party (the party being awarded the most amount of money by the Appeal Panel,  which, for the avoidance of doubt, shall be determined without regard to any statutory fines, penalties, fees, or other charges awarded to any part) the reasonable attorneys’ fees, arbitrator and Appeal Panel costs and fees, deposition costs, other discovery costs, and other expenses, costs or fees paid or otherwise incurred by the prevailing party in connection with the Arbitration (including without limitation in connection with the Appeal).
6.     Miscellaneous.  
6.1    Severability. If any part of these Arbitration Provisions is found to violate or be illegal under applicable law, then such provision shall be modified to the minimum extent necessary to make such provision enforceable under applicable law, and the remainder of the Arbitration Provisions shall remain unaffected and in full force and effect.
6.2    Governing Law.  These Arbitration Provisions shall be governed by the laws of the State of Utah without regard to the conflict of laws principles therein.    
6.3    Interpretation.  The headings of these Arbitration Provisions are for convenience of reference only and shall not form part of, or affect the interpretation of, these Arbitration Provisions.
6.4    Waiver. No waiver of any provision of these Arbitration Provisions shall be effective unless it is in the form of a writing signed by the party granting the waiver.
6.5    Time is of the Essence. Time is expressly made of the essence with respect to each and every provision of these Arbitration Provisions.

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