Document:

eBay 123114_10-K Ex10.54

EXHIBIT 10.54

    
December 31, 2014

Daniel Schulman
c/o eBay Inc.
2065 Hamilton Avenue
San Jose, California 95125
 
Dear Dan: 
This letter will serve as an amendment to the employment offer letter between you and eBay Inc. (the “Company”) dated September 29, 2014 (the “Letter”).  Among other items, the Letter describes an equity clawback make-good payment (the “Equity Clawback Make-good Payment”) to cover the pre-tax income you would be required to repay your current employer for amounts realized in the 24 months prior to your termination of employment, up to a total amount of $10,496,388.  You agreed to work with the Company’s counsel to negotiate with your now former employer to avoid the imposition of the clawback to the extent possible, and have done so.  
In the course of negotiations, your prior employer claimed that it was entitled to a greater amount in repayment, on the grounds that additional awards would be encompassed under the employer’s clawback agreements.  The Company and you have disputed that claim, and the parties have now come to a compromise to resolve any and all claims of your former employer.  As a result, the amount of the Equity Clawback Make-good Payment will be in the amount of up to $13,800,000.00.
Except as specifically set forth in this amendment, all other terms and conditions of the Letter will remain in full force and effect.
Very truly yours,
	
	
	 

	 

	/s/ John Donahoe

	John Donahoe

	President and Chief Executive Officer

	eBay Inc.

	 

	ACCEPTED:

	/s/ Daniel Schulman

	Daniel Schulman

	 

	December 31, 2014EXHIBIT 10.1

 

STOCK
EXCHANGE AGREEMENT

 

Among

 

INCEPTION
MINING, INC.

 

and

 

CLAVO
RICO, LTD 

 

and

 

THE
MAJORITY SHAREHOLDERS OF CLAVO RICO, LTD.

 

 Dated
February 3, 2015

 

    	 

    	Page | 2

    

 

TABLE
OF CONTENTS

 

 

	Articles	 	 	 	Page
	 	 	 	 	 
	ARTICLE
    I	 	THE
    EXCHANGE	 	6
	 	 	 	 	 
	 	 	1.01
    The Exchange	 	6
	 	 	1.02
    Effective Time	 	 
	 	 	1.03
    Closing	 	6
	 	 	1.04
    Directors and Officers of Clavo Rico	 	 
	 	 	1.05
    Effects of the Exchange	 	6
	 	 	 	 	 
	ARTICLE
    II	 	REPRESENTATIONS,
    COVENANTS, AND WARRANTIES OF CLAVO RICO	 	 
	 	 	 	 	 
	 	 	2.01
    Organization and Qualification	 	8
	 	 	2.02
    Capital Stock	 	9
	 	 	2.03
    Authority Relative to this Agreement	 	9
	 	 	2.04
    Approvals and Consents	 	10
	 	 	2.05
    Financial Statements	 	11
	 	 	2.06
    Absence of Certain Changes or Events	 	11
	 	 	2.07
    Absence of Undisclosed Liabilities	 	12
	 	 	2.08
    Legal Proceedings	 	12
	 	 	2.09
    Information Supplied	 	13
	 	 	2.10
    Compliance with Laws and Regulations	 	13
	 	 	2.11
    Compliance with Agreements	 	13
	 	 	2.12
    Tax Matters	 	14
	 	 	2.13
    Environmental Matters	 	15
	 	 	2.14
    Employee benefit Plans	 	16
	 	 	2.15
    Patent, Trademarks	 	16
	 	 	2.16
    Insurance	 	17
	 	 	2.17
    Labor Relations	 	17
	 	 	2.18
    Tangible Property & Assets	 	17
	 	 	2.19
    Shareholder Vote Required	 	17
	 	 	2.20
    Brokers	 	17
	 	 	2.21
    Agreements no to Compete	 	17
	 	 	2.22
    Board Approval	 	18
	 	 	2.23
    Material Transactions or Affiliations	 	18
	 	 	2.24
    Clavo Rico Schedules	 	18

 

    	 

    	Page | 3

    

 

	Articles	 	 	 	Page
		 	 	 	 
	ARTICLE
    III	 	REPRESENTATIONS,
    COVENANTS AND WARRANTIES OF CLAVO RICO SHAREHOLDERS	 	 
	 	 		 	 
	 	 	3.01
    Ownership of Clavo Rico Shares	 	20
	 	 	3.02
    Knowledge of Representations	 	 
	 	 	 	 	 
	ARTICLE
    IV	 	REPRESENTATIONS,
    COVENANTS, AND WARRANTIES OF INCEPTION MINING INC.	 	 
	 	 		 	 
	 	 	4.01
    Organization	 	21
	 	 	4.02
    Capitalization	 	21
	 	 	4.03
    Subsidiaries	 	21
	 	 	4.04
    Financial Statements	 	21
	 	 	4.05
    Information	 	22
	 	 	4.06
    Options and Warrants	 	22
	 	 	4.07
    Absence of Certain Changes or Events	 	23
	 	 	4.08
    Title and Related Matters	 	24
	 	 	4.09
    Litigation and Proceedings	 	24
	 	 	4.10
    Contracts	 	24
	 	 	4.11
    No Conflict With Other Instruments	 	24
	 	 	4.12
    Governmental Authorizations	 	24
	 	 	4.13
    Compliance With Laws and Regulations	 	24
	 	 	4.14
    Insurance	 	25
	 	 	4.15
    Approval of Agreement	 	25
	 	 	4.16
    Material Transactions or Affiliations	 	25
	 	 	4.17
    Employment Matters	 	25
	 	 	 	 	 
	ARTICLE
    V	 	PLAN
    OF EXCHANGE	 	 
	 	 	 	 	 
	 	 	5.01
    The Exchange	 	25
	 	 	5.02
    Closing	 	26
	 	 	5.03
    Closing Events	 	26
	 	 	 	 	 
	ARTICLE
    VI	 	SPECIAL
    COVENANTS	 	 
	 	 	 	 	 
	 	 	6.01
    Access to Properties and Records	 	26
	 	 	6.02
    Delivery of Books and Records	 	26
	 	 	6.03
    Special Covenants and Representations Regarding the Exchanged Stock	 	26
	 	 	6.04
    Third Party Consents and Certificates	 	27
	 	 	6.05
    Sales Under Rules 144	 	27
	 	 	6.06
    Indemnification	 	27
	 	 	6.07
    Covenants Regarding Certain CERROS Assets	 	28
	 	 	6.08
    Board Observation Rights	 	28

 

    	 

    	Page | 4

    

 

	Articles	 	 	 	Page
	 	 	 	 	 
	ARTICLE
    VII		CONDITIONS	 	 
	 	 	 	 	 
	 	 	7.01
    Conditions to each Party’s Obligation to Effect The Exchange	 	29
	 	 	7.02
    Conditions to Obligation of INCEPTION to Effect The Exchange	 	29
	 	 	7.03
    Conditions to Obligation of CLAVO RICO to Effect The Exchange	 	31
	 	 	7.04
    Covenants of Razor Resources Subsequent to Closing	 	32
	 	 	 	 	 
	ARTICLE
    VIII	 	TERMINATION;
    DEFAULT	 	 
	 	 	 	 	 
	 	 	8.01
    Termination	 	33
	 	 	8.02
    Subsequent Default	 	33
	 	 	 	 	
	ARTICLE
    IX	 	MISCELLANEOUS	 	 
	 	 	 	 	 
	 	 	9.01
    Brokers	 	34
	 	 	9.02
    Governing Law	 	34
	 	 	9.03
    Notices	 	34
	 	 	9.04
    Attorneys’ Fees	 	34
	 	 	9.05
    Schedules; Knowledge	 	34
	 	 	9.06
    Third Party Beneficiaries	 	35
	 	 	9.07
    Entire Agreement	 	35
	 	 	9.08
    Survival; Termination	 	35
	 	 	9.09
    Counterparts	 	35
	 	 	9.10
    Amendment or Waiver	 	35
	 	 	9.11
    Arbitration	 	

 

    	 

    	Page | 5

    

 

STOCK
EXCHANGE AGREEMENT

 

THIS
STOCK EXCHANGE AGREEMENT (hereinafter referred to as this “Agreement”), is entered into effective as of the 3rd
day of February, 2015 by and among INCEPTION MINING, INC, a Nevada corporation (hereinafter referred to as
“INCEPTION”); CLAVO RICO LTD, a Turks and Caicos company (hereinafter referred to as “CLAVO RICO”), and the
majority shareholders of CLAVO RICO (hereinafter referred to as the “Shareholders”), upon the following
premises:

 

 

Premises

 

This
Agreement provides for the acquisition by INCEPTION of all of the common shares of CLAVO RICO owned by the Shareholders, which
constitute 100% of the issued and outstanding shares of common stock of CLAVO RICO, solely in exchange for shares of common stock
of INCEPTION (the “Exchange”).

 

Pursuant
to the terms of the Agreement, as hereinafter set forth, among other things, 100% of the outstanding and reserved securities (common
and preferred stock) of CLAVO RICO will be exchanged for shares of INCEPTION common stock, which will be issued to the Shareholders,
in reliance on applicable exemptions from the registration requirements of the Securities Act and Applicable Blue Sky laws, as
hereinafter described.

 

The
Boards of Directors of INCEPTION and CLAVO RICO have each determined that it is advisable and in the best interests of their respective
stockholders to consummate, and have approved, the business combination transaction provided for herein in which CLAVO RICO will
become a wholly owned subsidiary of INCEPTION and the Shareholders will hold INCEPTION shares of common stock.

 

Agreement

 

NOW
THEREFORE, on the stated premises and for and in consideration of the mutual covenants and agreements hereinafter set forth and
the mutual benefits to the parties to be derived therefrom, it is hereby agreed as follows:

 

    	 

    	Page | 6

    

 

ARTICLE
I

 

THE
EXCHANGE

 

Section
1.01 The Exchange. At the Effective Time (as defined in Section 1.02), upon the terms and subject to the conditions
of the Agreement, INCEPTION shall acquire 100% of the issued and outstanding common of CLAVO RICO from the Shareholders for and
in consideration of the issuance to the Shareholders of an aggregate of 66,391,160 shares of INCEPTION common stock. As a result
of the Exchange, CLAVO RICO shall become a wholly owned subsidiary of INCEPTION.

 

Section
1.02 Effective Time. Following the Closing (as defined in Section 1.03), 66,391,160 shares of INCEPTION common stock
(“Exchange Stock”) shall be delivered to the Shareholders and the Shareholders shall deliver to INCEPTION all of the
common shares of CLAVO RICO owned by the Shareholders, which shall constitute 100% of the issued and outstanding common stock
of CLAVO RICO in the manner and as provided in Section 1.06 hereof. The Exchange shall become effective on the Closing Date (such
date being referred to herein as the “Effective Time”).

 

Section
1.03 Closing. The closing of the Exchange (the “Closing”) will take place at the principal executive
offices of INCEPTION at 5320 S 900 E Suite 260, Murray, Utah 84106, or at such other place as the parties hereto mutually agree,
on a date and at a time to be specified by the parties, which shall in no event be later than 10:00 a.m., local time, on the next
day following satisfaction of all of the conditions Article VII or, if permissible, waived in accordance with this Agreement,
or on such other date as the parties hereto mutually agree (the “Closing Date”). At the Closing there shall be delivered
to INCEPTION and the Shareholders the certificates and other documents and instruments required to be delivered under Article
VI.

 

Section
1.04 Directors and Officers of CLAVO RICO. The directors of INCEPTION immediately prior to the Effective Time, or
such other individuals as the directors of INCEPTION shall designate, shall, from and after the Effective Time, be the directors
of CLAVO RICO and such directors shall appoint the officers of CLAVO RICO immediately prior to the Effective Time. The newly appointed
directors and officers of CLAVO RICO shall serve until their successors shall have been duly elected or appointed and qualified
or until their earlier death, resignation, or removal in accordance with the CLAVO RICO By-Laws. INCEPTION shall provide all needed
information of the person or persons who will serve in any capacity within CLAVO RICO. This information includes the full legal
name, date of birth, profession, passport and copies of all pages of the current passport for each such individual, marital status,
residence including a current address, citizenship, title with the company, date and place of the Board of Director meeting that
authorized said person to represent INCEPTION in the Turks and Caicos and any limitations to such representation or power.

 

Section
1.05 Effects of the Exchange. Subject to the foregoing, the effects of the Exchange shall be as provided in the
applicable provisions of the laws of the Turks and Caicos.

 

Section
1.06 Stock of CLAVO RICO.

 

    	 

    	Page | 7

    

 

	 	A.	Clavo
Rico Common Stock. The common stock of Clavo Rico, Ltd issued and outstanding at the Effective Time shall, by virtue of the Stock
Exchange and without any action on the part of the holders thereof, be exchanged on a pro rata basis for 66,391,160 shares of
Inception common stock.
	 	 	 
	 	B.	Exchange
    of CLAVO RICO Common Stock.

 

	 	(i)	INCEPTION
shall authorize one or more persons to act as exchange agent hereunder (the “Exchange Agent”) pursuant to an agreement
or agreements satisfactory to Inception and CLAVO RICO. Promptly after Closing, Inception shall deposit or cause to be deposited
with the Exchange Agent the number of certificates representing the shares of INCEPTION Common Stock payable to the holders of
CLAVO RICO Common Stock pursuant to Section 1.01 based on the number of shares of INCEPTION common Stock to be issued to the Shareholders.
	 	 	 
	 	(ii)	As
soon as practicable after the Effective Time, the Exchange Agent shall mail to each holder of record of a certificate or certificates
that immediately prior to the Effective Time represented outstanding shares of CLAVO RICO Common Stock (the “Certificates”),
a form letter of transmittal (which shall specify that delivery shall be effective, and risk of loss and title to the Certificates(s)
shall pass, only upon delivery of the Certificate(s) to the Exchange Agent) and instructions for such holder’s use in effecting
the surrender of the Certificates in exchange for certificates representing shares of INCEPTION Common Stock.
	 	 	 
	 	(iii)	As
soon as practicable after the Effective Time, the Exchange Agent shall distribute to holders of shares of CLAVO RICO Common Stock,
upon surrender to the Exchange Agent of one or more Certificates for cancellation, together with a duly executed letter of transmittal
one or more certificates representing the number of whole shares of INCEPTION Common Stock into which the shares represented by
the Certificate(s) shall have been converted pursuant to Section 1.01 and the Certificates surrendered shall be cancelled.
	 	 	 
	 	(iv)	All
shares of INCEPTION Common Stock issued upon the surrender for exchange of CLAVO RICO Common Stock in accordance with the terms
hereof shall be deemed to have been issued in full satisfaction of all rights pertaining to such shares of CLAVO RICO Common Stock.
	 	 	 
	 	(v)	As
of the Effective Time, the holders of Certificates representing shares of CLAVO RICO Common Stock shall cease to have any rights
as shareholders of CLAVO RICO, except such rights, if any, as they may have pursuant to the laws of the Turks and Caicos. Except
as provided above, until such time as the Certificates are surrendered for exchange, each such Certificate shall, after the Effective
time, represent for all purposes only the right to receive the number of whole shares of INCEPTION Common Stock into which the
shares of CLAVO RICO Common Stock have been converted by the Exchange as provided in Section 1.01.

 

    	 

    	Page | 8

    

 

	 	(vi)	No
fractional shares of INCEPTION Common Stock and no certificates or scrip therefor, or other evidence of ownership thereof, shall
be issued upon the surrender for exchange of Certificates, no dividend or distribution of INCEPTION shall relate to any fractional
share, and such fractional share interests shall not entitle the owner thereof to vote or to any rights of a shareholder of INCEPTION.
All fractional shares of INCEPTION Common Stock to which a holder of CLAVO RICO Common Stock immediately prior to the Effective
Time would otherwise be entitled, at the Effective Time, shall be aggregated and INCEPTION shall issue the number of shares Inception
Common Stock rounded up to the next whole number.
	 	 	 
	 	(vii)	In
    the event any Certificates shall have been lost, stolen or destroyed, the Exchange Agent shall issue in exchange for such
    lost, stolen or destroyed Certificate, upon the making of an affidavit of that fact by the holder thereof, such shares of
    INCEPTION Common Stock as may be required pursuant to this Section 1.0; provided, however, that INCEPTION may, in its discretion
    and as a condition precedent to the issuance thereof, require the owner of such lost, stolen or destroyed Certificate to deliver
    a bond or indemnification in such sum as it may direct as an indemnity against any claim that may be made against Inception
    or the Exchange Agent with respect to the Certificate alleged to have been lost, stolen or destroyed.

 

ARTICLE
II

 

REPRESENTATIONS
AND WARRANTIES OF CLAVO RICO

 

As
an inducement to, and to obtain the reliance of INCEPTION, CLAVO RICO and the CLAVO RICO Shareholders represent and warrant as
follows:

 

Section
2.01 Organization and Qualification. CLAVO RICO is an Exempted company duly organized, validly existing, and in
good standing under the laws of its jurisdiction of incorporation, Turks and Caicos Islands, and has the full corporate power
and authority to conduct its business as and to the extent now conducted and to own, use, and lease its assets and properties.
CLAVO RICO and each of Compania Minera Cerros del Sur, S.A. and Minera Clavo Rico, S.A, its wholly owned subsidiaries (individually,
a “Subsidiary” and collectively, the “Subsidiaries”) is duly qualified, licensed, or admitted to do business
and is in good standing in each jurisdiction in which the ownership, use, or leasing of its assets and properties, or the conduct
or nature of its businesses, makes such qualification, licensing or admission necessary.

 

    	 

    	Page | 9

    

 

CLAVO
RICO was formed in the Turks and Caicos Islands and is not qualified, licensed, or admitted to do business in any other jurisdiction.
Except for the Subsidiaries, , both companies formed and doing business in Honduras, CLAVO RICO does not directly or indirectly
own any equity or similar interest in, or any interest convertible into or exchangeable or exercisable for, any equity or similar
interest in, any corporation, partnership, joint venture or other business association or entity.

 

Section
2.02 Capital Stock.

 

(i)
The authorized capital stock of CLAVO RICO consists solely of 250,000,000 shares of capital stock, par value $.01. As of December
31, 2014, 65,000,000 shares of Clavo Rico common stock were issued and outstanding. There has been no change in the number of
issued and outstanding shares of CLAVO RICO capital stock since such date. 100% of the issued and outstanding shares of common
stock are owned by the Shareholders. All of the issued and outstanding shares of CLAVO RICO common stock are, duly authorized,
validly issued, fully paid, and nonassessable. Except pursuant to this Agreement there are no outstanding subscriptions, options,
warrants, rights (including “phantom” stock rights), preemptive rights or other contracts, commitments, understandings
or arrangements, including any right of conversion or exchange under any outstanding security, instrument or agreement, obligating
CLAVO RICO to issue or sell any shares of capital stock, bonds, or other securities of CLAVO RICO (collectively, “Options”)
or to grant, extend or enter into any option with respect thereto.

 

(ii) There
are no outstanding contractual obligations of CLAVO RICO to repurchase, redeem, or otherwise acquire any shares of CLAVO RICO
common stock to provide funds to, or make any investment (in the form of a loan, capital contribution or otherwise) in, any subsidiary
or any other person.

 

(iii)
The authorized capital stock of each of the Subsidiaries consists solely of 500,000 shares of capital stock, no par value. As
of January 1, 2015, 200,000 shares of common stock were issued and outstanding, 199,800 of which are held by CLAVO RICO and the
remaining shares are held by Gerardo Flores. There has been no change in the number of issued and outstanding shares of capital
stock since such date. All of the issued and outstanding shares of the Subsidiaries’ common stock are, duly authorized,
validly issued, fully paid, and nonassessable. There are no outstanding Options obligating CLAVO RICO or either of the Subsidiaries
to issue or sell any shares of capital stock of a Subsidiary or to grant, extend or enter into any option with respect thereto.

 

Section
2.03 Authority Relative to this Agreement. CLAVO RICO has full corporate power and authority to enter into this
Agreement and, subject to obtaining a majority of the CLAVO RICO Shareholders’ approval, to perform its obligations hereunder
and to consummate the transactions contemplated hereby. The execution, delivery, and performance of this Agreement by CLAVO RICO
and the consummation by CLAVO RICO of the transactions contemplated hereby have been duly and validly approved by the Board of
Directors and directed that this Agreement be submitted to the Shareholders for their consideration, and no other proceedings
on the part of CLAVO RICO or its Shareholders are necessary to authorize the execution, delivery and performance of the Agreement
by CLAVO RICO and the consummation by CLAVO RICO of the transactions contemplated hereby. This Agreement has been duly and validly
executed and delivered by CLAVO RICO and, subject to obtaining a majority of the CLAVO RICO Shareholders’ approval, constitutes
a legal, valid, and binding obligation of CLAVO RICO enforceable against CLAVO RICO in accordance with its terms, except as enforceability
may be limited by bankruptcy, insolvency, reorganization, moratorium, or other similar laws affecting the enforcement of creditors’
rights generally and by general equitable principles (regardless of whether such enforceability is considered in a proceeding
in equity or at law).

 

    	 

    	Page | 10

    

 

Section
2.04 Approvals and Consents.

 

		(i)	The
                                         execution and delivery of this Agreement by CLAVO RICO do not, and the performance by
                                         CLAVO RICO of its obligation hereunder and the consummation of the transactions contemplated
                                         hereby will not, conflict with, result in a violation or breach of, constitute (with
                                         or without notice or lapse of time or both) a default under, result in or give to any
                                         person any right of payment or reimbursement, termination, cancellation, modification
                                         or acceleration of, or result in the creation or imposition of any Lien upon any of the
                                         assets or properties of CLAVO RICO or the Subsidiaries under, any of the terms, conditions
                                         or provisions of (x) the By-Laws and its formation documents as recorded in the Turks
                                         and Caicos, or (y) subject to obtaining a majority of the CLAVO RICO Shareholders’
                                         Approval and the taking of the actions described in paragraph (ii) of this section 2.04.
                                         (A) any statute, law, rule, regulation, or ordinance (collectively, “Laws”),
                                         or any judgment, decree, order, writ, permit, or license (collectively, “Orders”),
                                         of any court, tribunal, arbitrator, authority, agency, commission, official, or other
                                         instrumentality of the Turks and Caicos Islands, Honduras, any foreign country, or any
                                         domestic or foreign state, country, city, or other political subdivision (a “Governmental
                                         or Regulatory Authority”), applicable to CLAVO RICO, the Subsidiaries or any of
                                         their assets or properties, or (B) any note, bond, mortgage, security agreement, indenture,
                                         license, franchise, permit, concession, contract, lease (capital or operating) or other
                                         instrument, obligation or agreement of any kind (collectively, “Contracts”)
                                         to which CLAVO RICO or a Subsidiary is a party or by which CLAVO RICO, the Subsidiaries
                                         or any of their assets or properties are bound, excluding from the foregoing clauses
                                         (A) and (B) conflicts, violations, breaches, defaults, terminations, modifications, accelerations,
                                         and creations and impositions of Liens which, individually or in the aggregate, could
                                         not be reasonably expected to have a Material Adverse Effect on CLAVO RICO or on the
                                         ability of CLAVO RICO to consummate the transactions contemplated by this agreement.
                                         For purposes of this Agreement, a “Material Adverse Effect” shall mean a
                                         material adverse effect on the businesses, properties, assets, liabilities, condition
                                         (financial or otherwise), or results of operations of an entity (or group of entities
                                         taken as a whole). Notwithstanding the forgoing, a Material Adverse Effect shall not
                                         include any change in political or economic matters of general applicability.
	 	 	 
		(ii)	No
                                         consent, approval, or action of, filing with, or notice to any Governmental or Regulatory
                                         Authority or other public or private third party is necessary or required under any of
                                         the terms, conditions or provisions of any Law or Order of any Government of Regulatory
                                         Authority or any contract to which CLAVO RICO or a Subsidiary is a party or by which
                                         CLAVO RICO, the Subsidiaries or any of their assets or properties are bound for the execution
                                         and delivery of this Agreement by CLAVO RICO, the performance by CLAVO RICO of its obligations
                                         hereunder or the consummation of the transactions contemplated hereby, except for such
                                         consents, approvals, or actions of, filings with or notices to any Governmental or Regulatory
                                         Authority or other public or private third party the failure of which to make or obtain
                                         do not and will not have a Material Adverse Effect on CLAVO RICO, a Subsidiary or on
                                         the ability of CLAVO RICO to consummate the transactions contemplated by this Agreement.

 

    	 

    	Page | 11

    

 

Section
2.05 Financial Statements. CLAVO RICO delivered to INCEPTION prior to the execution of this Agreement a true, correct
and complete copy of CLAVO RICO audited financial statements of its Subsidiaries for the years ended December 31, 2011, 2012,
and 2013, (including, in each case, the notes, if any, thereto) (the “CLAVO RICO Financial Statements”). The CLAVO
RICO Financial Statements were audited in accordance with International Auditing Standards applied on a consistent basis during
the periods involved (except as may be indicated therein or in the notes thereto) and fairly and accurately present the consolidated
financial position of CLAVO RICO and its Subsidiaries in all material respects as at the respective dates thereof and the results
of its operations and cash flows for the respective periods then ended.

 

 Section
2.06 Absence of Certain Changes or Events. Except as set forth in this Agreement or the CLAVO RICO Schedules, since
December 31, 2013:

 

(a) there
has not been (i) any material adverse change in the business, operations, properties, assets, or condition of CLAVO RICO or a
Subsidiary; or (ii) any damage, destruction, or loss to CLAVO RICO or a Subsidiary (whether or not covered by insurance) materially
and adversely affecting the business, operations, properties, assets, or condition of CLAVO RICO or its Subsidiaries;

 

(b) Neither
CLAVO RICO nor the Subsidiaries have (i) amended their incorporation documents or its By-Laws; (ii) declared or made, or agreed
to declare or make, any payment of dividends or distributions of any assets of any kind whatsoever to stockholders or purchased
or redeemed, or agreed to purchase or redeem, any of its capital stock; (iii) waived any rights of value which in the aggregate
are extraordinary or material considering the business of CLAVO RICO and the Subsidiaries; (iv) made any material change in its
method of management, operation, or accounting; (v) entered into any other material transaction; (vi) made any accrual or arrangement
for payment of bonuses or special compensation of any kind or any severance or termination pay to any present or former officer
or employee; (vii) increased the rate of compensation payable or to become payable by it to any of its officers or directors or
any of its employees whose monthly compensation exceeds $1,000; or (viii) made any increase in any profit sharing, bonus, deferred
compensation, insurance, pension, retirement, or other employee benefit plan, payment, or arrangement made to, for, or with its
officers, directors, or employees;

 

    	 

    	Page | 12

    

 

(c) Neither
CLAVO RICO nor the Subsidiaries have (i) borrowed or agreed to borrow any funds or incurred, or become subject to, any material
obligation or liability (absolute or contingent) except liabilities incurred in the ordinary course of business; (ii) paid any
material obligation or liability (absolute or contingent) other than current liabilities reflected in or shown on the most recent
CLAVO RICO balance sheet, and current liabilities incurred since that date in the ordinary course of business; (iii) sold or transferred,
or agreed to sell or transfer, any of its assets, properties, or rights (except assets, properties, or rights not used or useful
in its business which, in the aggregate have a value of less than $1,000), or cancelled, or agreed to cancel, any debts or claims
(except debts or claims which in the aggregate are of a value of less than $1,000); (iv) made or permitted any amendment or termination
of any contract, agreement, or license to which it is a party if such amendment or termination is material, considering the business
of CLAVO RICO and the Subsidiaries; or (v) issued, delivered, or agreed to issue or deliver any stock, bonds or other corporate
securities including debentures (whether authorized and unissued or held as treasury stock); and

 

(d) Neither
CLAVO RICO nor the Subsidiaries have become subject to any law or regulation which materially and adversely affects, or in the
future may adversely affect, the business, operations, properties, assets, or condition of CLAVO RICO.

 

Section
2.07 Absence of Undisclosed Liabilities. Except for matters reflected or reserved against in the balance sheet for
the period ended December 31, 2013 included in CLAVO RICO Financial Statements or as disclosed in Schedule 2.07 hereto, neither
CLAVO RICO nor the Subsidiaries have at such dates, or have incurred since that date, any liabilities or obligations (whether
absolute, accrued, contingent, fixed or otherwise, or whether due or to become due) of any nature that would be required by generally
accepted accounting principles to be reflected on a consolidated balance sheet of CLAVO RICO and the Subsidiaries (including the
notes thereto). Except as set forth in Schedules 2.07, the Clavo Rico Financial Statements or the notes thereto, neither Clavo
Rico nor the Subsidiaries have any material contingent liabilities, direct or indirect, matured or unmatured.

 

Section
2.08 Legal Proceedings. Except as set forth on schedule 2.08, there are no actions, suits, arbitrations or proceedings
pending or, to the knowledge of CLAVO RICO are there any Government or Regulatory Authority investigations or audits pending or
threatened or claims or actions threatened by third parties against, relating to or affecting, CLAVO RICO, the Subsidiaries or
any of their assets and properties, and (ii) neither CLAVO RICO nor the Subsidiaries are subject to any judgment, decree, order,
or writ, injunction, award, rule or regulation of any Governmental or Regulatory Authority.

 

    	 

    	Page | 13

    

 

Section
2.09 Information Supplied. All information furnished by CLAVO RICO to INCEPTION in this Agreement, the CLAVO
RICO Schedules and otherwise in connection with the transactions contemplated hereby and on which INCEPTION shall rely in making
its disclosures and filings pursuant to the Securities Act and the Exchange Act, including the CLAVO RICO Financial Statements,
will comply as to form in all material respects with the requirements of the Exchange Act and the Securities Act, respectively,
and will not, on the date hereof and at the Effective Time, contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances
under which they are made, not misleading.

 

Section
2.10 Compliance with Laws and Orders. CLAVO RICO and the Subsidiaries hold all permits, licenses, variances,
exemptions, orders and approvals of all Governmental and Regulatory Authorities necessary for the lawful conduct of its business
(the “CLAVO RICO Permits”), except for failures to hold such permits, licenses, variances, exemptions, orders and
approvals which, individually or in the aggregate, are not having and could not be reasonably expected to have a Material Adverse
Effect on CLAVO RICO or the Subsidiaries. CLAVO RICO is in compliance with the terms of the CLAVO RICO Permits, except failures
so to comply which, individually or in the aggregate, are not having and could not be reasonably expected to have a Material Adverse
Effect on CLAVO RICO or the Subsidiaries. CLAVO RICO is not in violation of or default under any Law or Order of any Government
or Regulatory Authority, except for violations which, individually or in the aggregate, are not having and could not be reasonably
expected to have a Material Adverse Effect on CLAVO RICO or the Subsidiaries.

 

Section
2.11 Compliance with Agreements; Certain Agreements.

 

		(i)	Neither
                                         CLAVO RICO, the Subsidiaries nor, to the knowledge of CLAVO RICO, any other party thereto
                                         is in breach or violation of, or in default in the performance or observance of any term
                                         or provision of, and no event has occurred which, with notice or lapse of time or both,
                                         could be reasonably expected to result in a default under, (x) the formation documents
                                         or the By-Laws (or other comparable charter documents) of CLAVO RICO or a Subsidiary
                                         or (y) any Contract to which CLAVO RICO or a Subsidiary is a party or by which CLAVO
                                         RICO, a Subsidiary or any of their assets or properties are bound.
	 	 	 
		(ii)	Except
                                         as disclosed in Schedule 2.11 (ii), as of the date hereof, neither CLAVO RICO nor either
                                         of the Subsidiaries is a party to any oral or written (u) capital or operating leases
                                         providing for the payment of more than $50,000 per annum, (v) consulting agreement involving
                                         the payment of more than $25,000 per annum, (w) union or collective bargaining agreement
                                         which covers more than 15 employees, (x) agreement with any executive officer or other
                                         key employee the benefits of which are contingent or vest, or the terms of which are
                                         materially altered, upon the occurrence of a transaction involving CLAVO RICO or a Subsidiary
                                         or (y) agreement or plan, including any stock option, stock appreciation right, restricted
                                         stock or stock purchase plan, any of the benefits of which will be increased, or the
                                         vesting of the benefits of which will be accelerated, by the occurrence of any of the
                                         transactions contemplated by this Agreement or the value of any of the benefits of which
                                         will be calculated on the basis of any transactions contemplated by this Agreement.

 

    	 

    	Page | 14

    

 

Section
2.12 Tax Matters.

 

For
purposes of this Section 2.12 the terms “Tax” and “Taxes” include without limitation all liabilities for
federal, state, local, foreign or other taxes, whether based on, or related to income, profits, capital, premiums, sales, use,
gross receipts, property, ad valorem, franchise, employment, excise, patrol import and other taxes, duties, leases and assessments,
and include all related penalties, interest, additions to tax and liabilities for taxes related to contractual obligations with
customers and suppliers.

 

	 	(i)	Except
    as set forth in Schedule 2.12 hereto, CLAVO RICO and each of the Subsidiaries has filed all material Tax returns required
    to be filed by applicable law prior to the Closing Date. All material Tax returns were (and, as to Tax returns not filed as
    of the date hereof, will be) true, complete, and correct and filed on a timely basis. CLAVO RICO and each of the Subsidiaries
    (i) has paid all material Taxes due, or claimed or asserted by any taxing authority to be due, for the periods covered by
    such Tax returns or (ii) has duly and fully provided reserves (in accordance with applicable accounting principles) adequate
    to pay all such Taxes.
	 	 	 
	 	(ii)	Except
    as set forth in Schedule 2.12 hereto, CLAVO RICO and each of its Subsidiaries has established (and until the Closing Date
    will maintain) on its books and records reserves adequate to pay all material Taxes not yet due and payable. CLAVO RICO has
    made available to INCEPTION the complete and accurate copies of all work papers associated with the calculation of CLAVO RICO’s
    and the Subsidiaries’ Tax reserves.
	 	 	 
	 	(iii)	There
    are no Tax Liens upon the assets of CLAVO RICO or either of the Subsidiaries except Liens for Taxes not yet due.
	 	 	 
	 	(iv)	Neither
    CLAVO RICO nor a Subsidiary has requested (and no request has been made on its behalf) any extension of time within which
    to file any material Tax return.
	 	 	 
	 	(v)	 (A)
    the statute of limitations for the assessment of all Taxes has expired for all applicable Tax returns of CLAVO RICO and the
    Subsidiaries through December 31, 2008; (B) no state or federal income tax returns have been examined by the appropriate taxing
    authorities for any periods; and (C) no deficiency for any material Taxes has been suggested, proposed, asserted or assessed
    against CLAVO RICO or a Subsidiary that has not been resolved and paid in full. Neither CLAVO RICO nor a Subsidiary has executed
    a written consent extending the applicable statute of limitations for federal, state or local tax purposes.
	 	 	 

    	 

    	Page | 15

    

 

	 	(vi)	No
    audits or other administrative proceedings or court proceedings are presently pending with regard to any Taxes or Tax returns
    of CLAVO RICO or a Subsidiary.
	 	 	 
	 	(vii)	Neither
    CLAVO RICO nor a Subsidiary has received a written ruling of a taxing authority relating to Taxes or entered into a written
    and legally binding agreement with any taxing authority relating to taxes.
	 	 	 
	 	(viii)	To
    the extent requested by INCEPTION, CLAVO RICO has made available to INCEPTION (or, in the case of Tax returns to be filed
    on or before the Closing Date, will make available) complete and accurate copies of all Tax returns and associated work papers
    filed by or on behalf of CLAVO RICO and the Subsidiaries for all taxable years since 2011 ending on or prior to the Closing
    Date.
	 	 	 
	 	(ix)	No
    agreements relating to allocating or sharing of any material Taxes have been entered into by CLAVO RICO or a Subsidiary.
	 	 	 
	 	(x)	All
    transactions that could give rise to a material understatement of income taxes by CLAVO RICO or a Subsidiary have been adequately
    disclosed (or, with respect to Tax returns filed following the Closing will be adequately disclosed) on CLAVO RICO’s
    and each Subsidiary’s Tax returns.

 

Section
2.13 Environmental Matters.

 

	 	(i)	To
    the knowledge of CLAVO RICO and its Subsidiaries, as of the date hereof no material amount of any substance that has been
    designated by any governmental entity or by applicable federal, state, or local law to be radioactive, toxic, hazardous or
    otherwise a danger to health or other environment, including, without limitation, PCBs, asbestos, petroleum, or urea-formaldehyde,
    a (Hazardous Material”), but excluding chemicals used by CLAVO RICO Subsidiaries in mining operations and office and
    janitorial supplies, is present, as a result of the actions of CLAVO RICO or the Subsidiaries in, on or under any property,
    including the land and the improvements, ground water and surface water, that CLAVO RICO and the Subsidiaries have at any
    time owned, operated, occupied or leased.
	 	 	 
	 	(ii)	At
    no time has CLAVO RICO or its Subsidiaries transported, stored, used, manufactured, disposed of, released or exposed its employees
    or others to Hazardous Materials in violation of any Law in effect on or before the Effective Time, which has had or is reasonably
    likely to have a Material Adverse Effect on CLAVO RICO or the Subsidiaries, nor has CLAVO RICO or the Subsidiaries disposed
    of, transported, sold, or manufactured any product containing a Hazardous Material (collectively), “Hazardous Material
    Activities”) in violation of any Law or Order promulgated by any Governmental or Regulating Authority to prohibit, regulate
    or control Hazardous Materials or any Hazardous Material Activity, which has or is reasonably likely to have a Material Adverse
    Effect on CLAVO RICO or the Subsidiaries.

 

    	 

    	Page | 16

    

 

	 	(iii)	The
    Subsidiaries currently have been approved for an environmental license for its Clavo Rico mining project (the “Environmental
    Permit”) necessary for the conduct of its mining operations and other businesses of the Subsidiaries as such activities
    and businesses are currently being conducted, the absence of which would be reasonably likely to have a Material Adverse Effect
    on CLAVO RICO and the Subsidiaries.
	 	 	 
	 	(iv)	No
    action, proceeding, revocation proceeding, amendment procedure, writ, injunction, or claim is pending or, to the knowledge
    of CLAVO RICO as of the date hereof, threatened concerning any Environmental Permit or any Hazardous Material Activity of
    CLAVO RICO or the Subsidiaries. CLAVO RICO is not aware of any fact or circumstance which could involve CLAVO RICO or the
    Subsidiaries in any environmental litigation or impose upon CLAVO RICO or the Subsidiaries any environmental liability.

 

Section
2.14 Employee Benefit Plans.

 

	 	(i)	Neither CLAVO RICO nor the
Subsidiaries have or contribute to, any pension, profit-sharing, option, other incentive plan, or any other type of Employee Benefit
Plan, or have any obligation to or customary arrangement with employees for bonuses, incentives, compensation, vacations, severance,
pay, sick pay, sick leave, insurance, service award, relocation, disability, tuition refund, or other benefits, whether oral or
written, except as set forth in Honduran law. Schedule 2.14 sets forth a complete and accurate list of each such Employee Benefit
Plan, Honduran employee benefits including accrued liabilities, and other arrangements. CLAVO RICO has furnished to INCEPTION
true, correct, and complete copies, of all documents evidencing plans, obligations, or arrangements referred to in Schedule 2.14
(or true, correct, and complete written summaries of such plans, obligations, or arrangements to the extent not evidenced by documents)
and true, correct, and complete copies of all documents evidencing trusts, summary plan descriptions.
	 	 	 
	 	(ii)	Neither CLAVO RICO nor the
Subsidiaries have any employee benefit plans other than those required under Honduran law.

 

Section
2.15 Patents, Trademarks, Et Cetera. CLAVO RICO and each Subsidiary has all right, title and interest in,
or a valid and binding license to use all patents, patent applications, trademarks, trademark applications, trade names, service
marks, copyrights, copyright applications, franchises, trade secrets, computer programs (in object or source code form), or other
intangible property or asset (collectively, “Intangibles”) which are individually or in the aggregate material to
the conduct of the business of CLAVO RICO and the Subsidiaries. Neither CLAVO RICO nor the Subsidiaries are in default (or with
the giving of notice or lapse of time or both, would be in default) in a material respect under any license to use such Intangible,
such Intangible is not being infringed by any third party. Neither CLAVO RICO nor the Subsidiaries are infringing in a material
respect any Intangible of any third party.

 

    	 

    	Page | 17

    

 

Section
2.16 Insurance. Except as set forth on Schedule 2.16, neither CLAVO RICO nor the Subsidiaries have any liability,
property, workers’ compensation, directors’ and officers’ liability and other insurance policies currently in
effect that insure the business, operations, properties, assets, or employees of CLAVO RICO or the Subsidiaries.

 

Section
2.17 Labor Matters. There are no material controversies pending or, to the knowledge of CLAVO RICO,
threatened between CLAVO RICO or the Subsidiaries and any representatives of its employees, and, to the knowledge of CLAVO RICO,
there are no material organizational efforts presently being made involving any of the now unorganized employees of CLAVO RICO
or the Subsidiaries. There has been no work stoppage, strike or similar concerted action by employees of CLAVO RICO or the Subsidiaries.

 

Section
2.18 Tangible Property and Assets. CLAVO RICO and each of the Subsidiaries have good and marketable title to all
of its properties, interest in properties, and assets, real and personal, which are reflected in the CLAVO RICO Financial Statements
or acquired after that date (except properties, interest in properties, and assets sold or otherwise disposed of since such date
in the ordinary course of business), free and clear of all liens, pledges, charges, or encumbrances except (a) statutory liens
or claims not yet delinquent; (b) such imperfections of title and easements as do not and will not materially detract from or
interfere with the present or proposed use of the properties subject thereto or affected thereby or otherwise materially impair
present business operations on such properties; and (c) as described in the CLAVO RICO Schedules. .

 

Section
2.19 Shareholder Vote Required. The consent of a majority of the Shareholders on the CLAVO RICO Exchange proposal
is the only vote of the holders of any class or series of the capital stock of CLAVO RICO required to adopt this Agreement and
approve the Exchange and the other transactions contemplated hereby.

 

Section
2.20 Brokers. All negotiations relative to this Agreement and the transactions contemplated hereby have been carried
out by CLAVO RICO directly with INCEPTION without the intervention of any person on behalf of CLAVO RICO in such a manner as to
give rise to any valid claim by any person against CLAVO RICO or INCEPTION for a finder’s fee, brokerage commission or similar
payment.

 

Section
2.21 Agreements Not to Compete. There are no contracts between CLAVO RICO or the Subsidiaries and their directors,
officers, employees, agents (including sales agents), dealers or distributors which prevent or restrict any such person from competing
with CLAVO RICO or the Subsidiaries in any manner.

 

    	 

    	Page | 18

    

 

 

Section
2.22 Board Approval of Agreement. The board of directors of CLAVO RICO has authorized the execution
and delivery of this Agreement by CLAVO RICO and has approved the transactions contemplated hereby.

 

Section
2.23 Material Transactions or Affiliations. Set forth in the CLAVO RICO Schedules is a description of every
material contract, agreement, or arrangement to which CLAVO RICO, the Subsidiaries or any predecessor thereof and any person who
was at the time of such contract, agreement, or arrangement an officer, director, or person owning of record, or known by CLAVO
RICO to own beneficially, five percent (5%) or more of the issued and outstanding common stock of CLAVO RICO and which is to be
performed in whole or in part after the date hereof or which was entered into not more than three years prior to the date hereof.
In all of such transactions, the amount paid or received, whether in cash, in services, or in kind, is, had been during the full
term thereof, and is required to be during the unexpired portion of the term thereof, no less favorable to CLAVO RICO and the
Subsidiaries than terms available from otherwise unrelated parties in arm’s length transactions. Except as disclosed in
the CLAVO RICO Schedules or otherwise disclosed herein, no officer, director, or five percent (5%) shareholder of CLAVO RICO or
the Subsidiaries has, or has had since inception of CLAVO RICO, any interest, direct or indirect, in any material transaction
with CLAVO RICO or a Subsidiary. There are no commitments by CLAVO RICO or a Subsidiary, whether written or oral, to lend any
funds to, borrow any money from, or enter into any other material transaction with, any such affiliated person.

 

Section
2.24 CLAVO RICO Schedules. CLAVO RICO has delivered to INCEPTION. the following schedules, which are collectively
referred to as the “CLAVO RICO Schedules” and which consist of separate schedules dated as of the date of execution
of this Agreement and instruments and data as of such date, all certified by the chief executive officer of CLAVO RICO as complete,
true, and correct:

 

(a) a
schedule identifying the formation documents, By-Laws and minutes of Board of Director meetings and resolutions of CLAVO RICO
and each Subsidiary in effect as of the date of this Agreement, complete and correct copies of which have been provided by CLAVO
RICO to INCEPTION;

 

(b) a
schedule containing the Financial Statements of CLAVO RICO identified in paragraph 2.05;

 

(c)
a statement indicating that all required income tax returns have been filed on behalf of CLAVO RICO and the Subsidiaries, copies
of which have been provided to INCEPTION by CLAVO RICO.

 

(d) a
schedule identifying the name and address of each shareholder of CLAVO RICO and each Subsidiary together with the number of shares
owned by the such shareholder;

 

    	 

    	Page | 19

    

 

 

(e) a
schedule containing a description of all real property owned or leased by CLAVO RICO;

 

(f) a
schedule identifying the title, date, and parties of all contracts, agreements, or other instruments to which CLAVO RICO and the
Subsidiaries are a party or by which they or their properties are bound, specifically including all contracts, agreements, or
arrangements referred to in section 2.18, and a true and correct copy of each such contract, agreement and instrument CLAVO RICO
represents have been provided to INCEPTION;

 

(g) a
schedule identifying all licenses, permits, and other governmental authorizations (or requests or applications therefor) pursuant
to which CLAVO RICO or the Subsidiaries carry on or propose to carry on their businesses, copies of which have been provided to
INCEPTION by CLAVO RICO;

 

 (h) a
schedule listing the accounts receivable and notes and other obligations receivable of CLAVO RICO and the Subsidiaries as of December
31, 2014, or that arose thereafter, indicating the debtor and amount, and classifying the accounts to show in reasonable detail
the length of time, if any, overdue, and stating the nature and amount of any refunds, set offs, reimbursements, discounts, or
other adjustments which are in the aggregate material and due to or claimed by such creditor;

 

 (i) a
schedule listing the accounts payable and notes and other obligations payable by CLAVO RICO and the Subsidiaries as of December
31, 2014 or that arose thereafter other than in the ordinary course of the business of CLAVO RICO, indicating the creditor and
amount, classifying the accounts to show in reasonable detail the length of time, if any, overdue, and stating the nature and
amount of any refunds, setoffs, reimbursements, discounts, or other adjustments, which in the aggregate are material and due or
payable to CLAVO RICO or the Subsidiaries respecting such obligations;

 

 (j) a
schedule setting forth a description of any material adverse change in the business, operations, property, inventory, assets,
or condition of CLAVO RICO or a Subsidiary since December 31, 2014;

 

 (k) a
schedule containing a copy of the board of directors’ and shareholders’ minutes of CLAVO RICO and each of the Subsidiaries
since inception; and

 

 (l) a
schedule setting forth any other information, together with any required copies of documents, required to be disclosed in the
CLAVO RICO Schedules by Sections 2.01 through 2.23.

 

 

    	 

    	Page | 20

    

 

ARTICLE
III

 

REPRESENTATIONS,
COVENANTS, AND WARRANTIES OF THE SHAREHOLDERS

 

As
an inducement to, and to obtain reliance of INCEPTION, CLAVO RICO Shareholders holding a majority of the issued and outstanding
shares represent and warrant as follows:

 

Section
3.01 Ownership of CLAVO RICO Shares.

 

(a) The
CLAVO RICO Shareholders making this representation own greater than 50% of the issued and outstanding shares of Common Stock of
CLAVO RICO, free and clear of any claims, charges, equities, liens, security interests, and encumbrances whatsoever, and that
the Shareholders have full right, power, and authority to transfer, assign, convey, and deliver their CLAVO RICO shares; and delivery
of such shares at the closing will convey to INCEPTION good and marketable title to such shares free and clear of any claims,
charges, equities, liens, security interests, and encumbrances whatsoever, except as set forth herein. Further, the Shareholders
making this representation represent that their affirmative vote for this Exchange Agreement is binding upon Clavo Rico and the
other Shareholders.

 

(b) The
Shareholders further warrant and certify by affixing their signatures to the consent to the Exchange Agreement that they are an
“Accredited Investor” within the meaning of that term as defined in Regulation D of the Securities Act of 1933.

 

 (c) The
CLAVO RICO Shareholders have been advised that:

 

(1) The
securities to be issued by INCEPTION in exchange for CLAVO RICO common stock have not been registered under the Securities Act,
the Exchange Act or any comparable state securities laws, but rather, are being issued in reliance on the exemption from registration
under the Securities Act provided by Section 4(2), Section 4(6) and/or Regulation S thereof.

 

(2) The
certificates for the shares of INCEPTION’s common stock will bear a legend restricting any transactions therein, directly
or indirectly, unless it is first registered under applicable federal and state securities laws or the proposed transaction is
exempt from such registration requirements, and if such facts are demonstrated to the satisfaction of INCEPTION and its legal
counsel, based on such third party legal opinions, affidavits, and transfer agency procedures as INCEPTION will reasonably require
or have in place. INCEPTION will not unreasonably withhold its consent to such registration;

 

(3) INCEPTION’s
transfer agent has been instructed to decline transfer of the certificate for the shares of INCEPTION’s common stock to
be issued pursuant to this Agreement unless the foregoing requirements have been met and have been confirmed as having been met
by a duly authorized officer of INCEPTION.

 

(d)
Each CLAVO RICO Shareholder has independently determined through their own legal counsel that all requirements of CLAVO RICO’s
country of domicile for the issuance of the shares of INCEPTION’s common stock called for by this Agreement have been met,
or will have been met, prior to Closing.

 

 

    	 

    	Page | 21

    

 

 

 ARTICLE
IV

 

 REPRESENTATIONS,
COVENANTS, AND WARRANTIES OF INCEPTION 

 

As
an inducement to, and to obtain the reliance of CLAVO RICO and the Shareholders INCEPTION represents and warrants as follows:

 

Section
4.01 Organization. INCEPTION is a corporation duly organized, validly existing, and in good standing under the laws
of the state of Nevada, and has the corporate power and is duly authorized, qualified, franchised, and licensed under all applicable
laws, regulations, ordinances, and orders of public authorities to own all of its properties and assets and to carry on its business
in all material respects as it is now being conducted, and there is no jurisdiction in which it is not qualified in which the
character and location of the assets owned by it or the nature of the business transacted by it requires qualification. The execution
and delivery of this Agreement does not, and the consummation of the transactions contemplated hereby will not, violate any provision
of INCEPTION’s articles of incorporation or bylaws. INCEPTION has taken all action required by law, its articles of incorporation,
its bylaws, or otherwise to authorize the execution and delivery of this Agreement, and INCEPTION has full power, authority, and
legal right and has taken all action required by law, its articles of incorporation, bylaws, or otherwise to consummate the transactions
herein contemplated.

 

Section
4.02 Capitalization. INCEPTION authorized capitalization consists of 10,000,000 shares of Preferred Shares, $.00001
par value, none of which are issued and outstanding, and 500,000,000 shares of common stock, par value $.00001, of which 16,597,790
shares are issued and outstanding. All issued and outstanding shares are legally issued, fully paid, and non-assessable and not
issued in violation of the pre-emptive or other rights of any person. Further, INCEPTION has granted no options, warrants or issued
other convertible instruments, which when exercised or converted would result in the issuance of additional shares of Common or
Preferred Shares.

 

Section
4.03 Subsidiaries. INCEPTION has no operating subsidiaries.

 

Section
4.04 Financial Statements.

 

(a) INCEPTION’S
annual audited for the year ended July 31, 2014 and quarterly unaudited statements are a matter of public record and filed of
record with the Securities and Exchange Commission on forms 10K and 10Q and all such forms 10K and 10Q currently due have been
filed with the SEC.

 

    	 

    	Page | 22

    

  

(b) All
such financial statements have been prepared in accordance with generally accepted accounting principles consistently applied
throughout the periods involved. The INCEPTION balance sheets present fairly as of their respective dates the financial condition
of INCEPTION. INCEPTION did not have as of the date of any such INCEPTION balance sheet, except as and to the extent reflected
or reserved against therein, any liabilities or obligations (absolute or contingent) which should be reflected in a balance sheet
or the notes thereto prepared in accordance with generally accepted accounting principles, and all assets reflected therein are
properly reported and present fairly the value of the assets of INCEPTION, in accordance with generally accepted accounting principles.
The statements of operations, stockholders’ equity, and changes in financial position reflect fairly the information required
to be set forth therein by generally accepted accounting principles.

 

(c) INCEPTION
has no liabilities with respect to the payment of any federal, state, county, local, or other taxes (including any deficiencies,
interest, or penalties), except for taxes accrued but not yet due and payable.

 

(d) INCEPTION
has filed all state, federal, or local income or sales or use tax returns required to be filed by it from inception to the date
hereof. No such federal or state tax returns have been audited by any state or the Internal Revenue Service. Each of such tax
returns reflects the taxes due for the period covered thereby, except for amounts which, individually or in the aggregate, are
immaterial.

 

(e) The
books and records, financial and otherwise, of INCEPTION are in all material respects complete and correct and have been maintained
in accordance with good business and accounting practices.

 

(f) INCEPTION
has good and marketable title to its assets and, except as set forth in the INCEPTION Schedules or the Financial Statements of
INCEPTION or the notes thereto, has no material contingent liabilities, direct or indirect, matured or unmatured.

  

Section
4.05 Information. The information concerning INCEPTION set forth in this Agreement and the INCEPTION Schedules
is complete and accurate in all material respects and does not contain any untrue statement of a material fact or omit to state
a material fact required to make the statements made, in light of the circumstances under which they were made, not misleading.

 

Section
4.06 Options or Warrants. Except as set forth in the INCEPTION financial statements or as required to be
issued pursuant to this Agreement, there are no existing convertible instruments, options, warrants, calls, or commitments of
any character relating to authorized and unissued stock of INCEPTION, except options, warrants, calls, or commitments, if any,
to which INCEPTION is not a party and by which it is not bound.

 

    	 

    	Page | 23

    

  

Section
4.07 Absence of Certain Changes or Events. Except as described herein or in the INCEPTION Schedules, since
the date of the most recent INCEPTION balance sheet:

 

(a) there
has not been (i) any material adverse change in the business, operations, properties, assets, or condition of INCEPTION (whether
or not covered by insurance) materially and adversely affecting the business, operations, properties, assets, or condition of
INCEPTION;

 

 (b) INCEPTION
has not (i) amended its articles of incorporation or bylaws; (ii) declared or made, or agreed to declare or make any payment of
dividends or distributions of any assets of any kind whatsoever to stockholders or purchased or redeemed, or agreed to purchase
or redeem, any of its capital stock; (iii) waived any rights of value which in the aggregate are extraordinary or material considering
the business of INCEPTION; (iv) made any material change in its method of management, operation, or accounting; (v) entered into
any other material transactions; (vi) made any accrual or arrangement for or payment of bonuses or special compensation of any
kind or any severance or termination pay to any present or former officer or employee; (vii) increased the rate of compensation
payable or to become payable by it to any of its officers or directors or any of its employees whose monthly compensation exceeds
$1,000; or (viii) made any increase in any profit sharing, bonus, deferred compensation, insurance, pension, retirement, or other
employee benefit plan, payment, or arrangement, made to, for, or with its officers, directors, or employees;

 

(c) INCEPTION
has not, except as provided under this Agreement (i) granted or agreed to grant any options, warrants, or other rights for its
stocks, bonds, or other corporate securities calling for the issuance thereof; (ii) borrowed or agreed to borrow any funds or
incurred, or become subject to, any material obligation or liability (absolute or contingent) except liabilities incurred in the
ordinary course of business; (iii) paid or agreed to pay any material obligation or liability (absolute or contingent) other than
current liabilities reflected in or shown on the most recent INCEPTION balance sheet and current liabilities incurred since that
date in the ordinary course of business and professional and other fees and expenses incurred in connection with the preparation
of this Agreement and the consummation of the transactions contemplated hereby; (iv) sold or transferred, or agreed to sell or
transfer, any of its assets, property, or rights (except assets, property, or rights not used or useful in its business which,
in the aggregate have a value of less than $1,000), or cancelled, or agreed to cancel, any debts or claims (except debts or claims
which in the aggregate are of a value of less than $1,000); (v) made or permitted any amendment or termination of any contract,
agreement, or license to which it is a party if such amendment or termination is material, considering the business of INCEPTION;
or (vi) issued, delivered, or agreed to issue or deliver any stock, bonds, or other corporate securities including debentures
(whether authorized and unissued or held as treasury stock), except in connection with this Agreement; and

 

(d) to
the best knowledge of INCEPTION, it has not become subject to any law or regulation which materially and adversely affects, or
in the future may adversely affect, the business, operations, properties, assets, or condition of INCEPTION.

 

    	 

    	Page | 24

    

  

Section
4.08 Title and Related Matters. INCEPTION has good and marketable title to all of its properties, interest
in properties, and assets, real and personal, which are reflected in the INCEPTION balance sheet or acquired after that date (except
properties, interest in properties, and assets sold or otherwise disposed of since such date in the ordinary course of business),
free and clear of all liens, pledges, charges, or encumbrances except (a) statutory liens or claims not yet delinquent; (b) such
imperfections of title and easements as do not and will not materially detract from or interfere with the present or proposed
use of the properties subject thereto or affected thereby or otherwise materially impair present business operations on such properties;
and (c) as described in the INCEPTION Schedules.

 

Section
4.09 Litigation and Proceedings. There are no actions, suits, or proceedings pending or, to the knowledge
of INCEPTION, threatened by or against or affecting INCEPTION, at law or in equity, before any court or other governmental agency
or instrumentality, domestic or foreign, or before any arbitrator of any kind. INCEPTION does not have any knowledge of any default
on its part with respect to any judgment, order, writs, injunction, decree, award, rule, or regulation of any court, arbitrator,
or governmental agency or instrumentality.

 

Section
4.10 Contracts. Except for contracts entered into in the ordinary course of business, all of INCEPTION’s material
contracts, agreements, and other commitments have been disclosed in INCEPTION’S SEC filings.

 

Section
4.11 No Conflict With Other Instruments. The consummation of the transactions contemplated by this Agreement
will not result in the material breach of any term or provision of, or constitute a material default under, any indenture, mortgage,
deed of trust, or other material agreement or instrument to which INCEPTION is a party or to which it or any of its assets or
operations are subject.

 

Section
4.12 Governmental Authorizations. INCEPTION has all licenses, franchises, permits, and other government authorizations,
that are legally required to enable it to conduct its business operations in all material respects as conducted on the date hereof.
Except for compliance with federal and state securities or corporation laws, as hereinafter provided, no authorization, approval,
consent, or order of, or registration, declaration, or filing with, any court or other governmental body is required in connection
with the execution and delivery by INCEPTION of this Agreement and the consummation by INCEPTION of the transactions contemplated
hereby. 

 

Section
4.13 Compliance With Laws and Regulations. To the best of its knowledge, INCEPTION has complied with all
applicable statutes and regulations of any federal, state, or other applicable governmental entity or agency thereof, except to
the extent that noncompliance would not materially and adversely affect the business, operations, properties, assets, or conditions
of INCEPTION or except to the extent that noncompliance would not result in the incurrence of any material liability. This compliance
includes, but is not limited to, the filing of all reports to date with federal and state securities authorities in connection
with INCEPTION’s filing, approval and completion of its recent offering of securities pursuant to Rule 504 of Regulation
C and subsequent reports required by the U.S. Securities and Exchange Commission.

  

    	 

    	Page | 25

    

 

 Section
4.14 Insurance. Except as set forth on Schedule 4.14, INCEPTION has no liability, property, workers’
compensation, directors’ and officers’ liability or other insurance policies currently in effect that insure the business,
operations, properties, assets, or employees of INCEPTION.

 

Section
4.15 Approval of Agreement. The board of directors of INCEPTION has authorized the execution and delivery
of this Agreement by INCEPTION and has approved this Agreement and the transactions contemplated hereby.

 

Section
4.16 Material Transactions of Affiliations. Except as disclosed herein and in the INCEPTION Schedules, there
exists no material contract, agreement, or arrangement between INCEPTION and any person who was at the time of such contract,
agreement, or arrangement an officer, director, or person owning of record or known by INCEPTION to own beneficially, 5% or more
of the issued and outstanding common stock of INCEPTION and which is to be performed in whole or in part after the date hereof
or was entered into not more than three years prior to the date hereof. Neither any officer, director, nor 5% shareholder of INCEPTION
has, or has had during the last preceding full fiscal year, any known interest in any material transaction with INCEPTION which
was material to the business of INCEPTION. INCEPTION has no commitment, whether written or oral, to lend any funds to, borrow
any money from, or enter into any other material transaction with any such affiliated person.

 

Section
4.17 Employment Matters. INCEPTION has no employees other than its directors and officers. There are no material
controversies pending or, to the knowledge of INCEPTION, threatened between INCEPTION and any representatives of its former employees.

 

 ARTICLE
V

 

 CONSIDERATION
AND PLAN OF EXCHANGE

 

Section
5.01 The Exchange. On the terms and subject to the conditions set forth in this Agreement, on the Closing
Date (as defined in Section 1.03), the Shareholders hereby agree to assign, transfer, and deliver to INCEPTION, free and clear
of all liens, pledges, encumbrances, charges, restrictions, or known claims of any kind, nature, or description shares of common
stock of CLAVO RICO, in the aggregate constituting 100% of the issued and outstanding shares of common and preferred stock of
CLAVO RICO, and INCEPTION agrees to acquire such shares on such date by issuing and delivering to the Shareholders in exchange
therefore an aggregate of 66,391,160 shares of INCEPTION restricted common stock, par value $0.00001. The shares shall be distributed
to the Shareholders in the amounts set forth opposite each such Shareholder’s name on the shareholder list delivered electronically
to INCEPTION attached hereto and incorporated herein by this reference.

 

    	 

    	Page | 26

    

  

As
of the Closing, the effect of the Exchange will be that CLAVO RICO will have become a wholly owned subsidiary of INCEPTION and
the Shareholders will have become shareholders of INCEPTION, and the Shareholders will have no further rights, title or interest
in CLAVO RICO stock, other than (i) to receive the shares of INCEPTION restricted common stock set forth on Exhibit A and (ii)
indirectly as a shareholder of INCEPTION and as may be set forth hereafter.

 

Section
5.02 Closing. The closing (“Closing”) of the transactions contemplated by this Agreement shall
be on a date and at such time as the parties may agree (“Closing Date”). Such Closing shall take place at a mutually
agreeable time and place.

 

Section
5.03 Closing Events. At the Closing, each of the respective parties hereto shall execute, acknowledge, and
deliver (or shall cause to be executed, acknowledged, and delivered) any and all certificates, opinions, financial statements,
schedules, agreements, resolutions, rulings, or other instruments required by this Agreement to be so delivered at or prior to
the Closing, together with such other items as may be reasonably requested by the parties hereto and their respective legal counsel
in order to effectuate or evidence the transactions contemplated hereby.

 

 ARTICLE
VI

 

 SPECIAL
COVENANTS

 

Section
6.01 Access to Properties and Records. INCEPTION and CLAVO RICO will each afford to the officers and authorized
representatives of the other full access to the properties, books, and records of INCEPTION or CLAVO RICO as the case may be,
in order that each may have full opportunity to make such reasonable investigation as it shall desire to make of the affairs of
the other, and each will furnish the other with such additional financial and operating data and other information as to the business
and properties of INCEPTION or CLAVO RICO, as the case may be, as the other shall from time to time reasonably request.

 

Section
6.02 Delivery of Books and Records. At the Closing, CLAVO RICO shall deliver to INCEPTION the originals of
the corporate minute books, books of account, contracts, records, and all other books or documents of CLAVO RICO now in the possession
of CLAVO RICO or its representatives.

 

Section
6.03 Special Covenants and Representations Regarding the Exchanged Stock. The consummation of this Agreement
and the transactions herein contemplated, including the issuance of the INCEPTION common Stock to the Shareholders as contemplated
hereby, constitutes the offer and sale of securities under the Securities Act and applicable state statutes. Such transaction
shall be consummated in reliance on exemptions from the registration and prospectus delivery requirements of such statutes which
depend, inter alia, upon the circumstances under which the Shareholders acquire such securities. In connection with reliance upon
exemptions from the registration and prospectus delivery requirements for such transactions, at the Closing, the Shareholders
shall cause to be delivered, and the Shareholders shall deliver to INCEPTION, letters of representation in the appropriate form.

 

    	 

    	Page | 27

    

  

Section
6.04 Third Party Consents and Certificates. INCEPTION and CLAVO RICO agree to cooperate with each other in
order to obtain any required third party consents to this Agreement and the transactions herein and therein contemplated.

 

Section
6.05 Sales Under Rules 144, If Applicable.

 

(a) INCEPTION
will use its best efforts to at all times comply with the reporting requirements of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”), including timely filing all periodic reports required under the provisions of the Exchange Act
and the rules and regulations promulgated thereunder.

 

(b) Upon
being informed in writing by any of the Shareholders that any such Shareholder intends to sell any shares under Rule 144 promulgated
under the Securities Act (including any rule adopted in substitution or replacement thereof), INCEPTION will certify in writing
to the Shareholder that it has filed all of the reports required to be filed by it under the Exchange Act to enable the shareholder
to sell the shareholder’s restricted stock under Rule 144, or will inform the shareholder in writing that it has not filed
any such report or reports.

 

(c) If
any Shareholder presents to INCEPTION’s transfer agent for registration of transfer in connection with any sale theretofore made
under Rule 144, provided such certificate is duly endorsed for transfer by the appropriate person(s) or accompanied by a separate
stock power duly executed by the appropriate person(s) in each case with reasonable assurances that such endorsements are genuine
and effective, and is accompanied by an opinion of counsel satisfactory to INCEPTION and its counsel that such transfer has complied
with the requirements of Rule 144 or other applicable exemption, INCEPTION will promptly instruct its transfer agent to register
such transfer and to issue one or more new certificates representing such shares to the transferee and, if appropriate under the
provisions of Rule 144, free of any stop transfer order or restrictive legend. The provisions of this Section 6.05 shall survive
the Closing and the consummation of the transactions contemplated by this Agreement.

 

Section
6.06 Indemnification.

 

(a) CLAVO
RICO hereby agrees to indemnify INCEPTION and each of the officers, agents and directors of INCEPTION as of the date of execution
of this Agreement against any loss, liability, claim, damage, or expense (including, but not limited to, any and all expense whatsoever
reasonably incurred in investigating, preparing, or defending against any litigation, commenced or threatened, or any claim whatsoever),
to which it or they may become subject arising out of or based on (i) any inaccuracy appearing in or misrepresentation made under
Articles II and/or III of this Agreement or (ii) an uncured subsequent default under Section 8.02 of this Agreement. The indemnification
provided for in this paragraph shall survive the Closing and consummation of the transactions contemplated hereby and termination
of this Agreement.

 

    	 

    	Page | 28

    

  

 (b) INCEPTION
hereby agrees to indemnify CLAVO RICO and each of the officers, agents and directors of CLAVO RICO as of the date of execution
of this Agreement against any loss, liability, claim, damage, or expense (including, but not limited to, any and all expense whatsoever
reasonably incurred in investigating, preparing, or defending against any litigation, commenced or threatened, or any claim whatsoever),
to which it or they may become subject arising out of or based on (i) any inaccuracy appearing in or misrepresentation made under
Article IV of this Agreement or (ii) an uncured subsequent default under Section 8.02 of this Agreement. The indemnification provided
for in this paragraph shall survive the Closing and consummation of the transactions contemplated hereby and termination of this
Agreement.

 

Section
6.07 Covenants Regarding Certain CLAVO RICO Assets

 

 (a) The
Parties recognize and acknowledge that certain assets of CLAVO RICO are related to mining operations in Honduras, but not to the
Clavo Rico concession. It is the intent that the ownership of the following described assets be transferred from CLAVO RICO and
recorded under Honduran law in the names of assignees as soon as possible. Until such time as these transfers can be effected
and recorded the assets shall remain in the legal name of CLAVO RICO.

 

 (b) The
“Retained Assets” are: (i) Corpus 1,2,3, and 4 mining concessions; (ii) the El Transito mining concession.

 

 (c) The
Parties shall execute and deliver, as a condition to the Closing, an undertaking and indemnification agreement related to the
Retained Assets defining the Parties’ respective rights and responsibilities related thereto until their transfer can be
recorded under Honduran law without adversely affecting the ownership thereof.

 

Section
6.08 Board Observation Rights and CERROS Legal Representative 

 

(a)
INCEPTION’S Board of Directors shall grant Board observation rights to up to two designees of CLAVO RICO, who shall be entitled
to participate as observers of all meetings of the Board and shall be entitled to notice of such meetings, actions to be taken
without meeting, and all materials distributed to the Board as if the designees were members of the Board. The Board observation
rights shall continue for a period of two years from the Closing Date.

 

(b)
Gerardo Flores shall remain as one of CLAVO RICO’s Legal Representatives in Honduras for at least 6 months from the Closing.

 

    	 

    	Page | 29

    

  

ARTICLE
VII

 

CONDITIONS

 

7.01
Conditions to Each Party’s Obligation to Effect the Exchange

 

The
respective obligation of each party to effect the Exchange is subject to the fulfillment, at or prior to the Closing, of each
of the following conditions:

 

	 	(a)	Shareholder
    Approval. The Agreement shall have been adopted by the requisite vote of the Shareholders of CLAVO RICO under CLAVO RICO’s
    formation documents and By-Laws and as required under Turks and Caicos Law.
	 	 	 
	 	(b)	State
    Securities Laws. INCEPTION shall have received all state securities or “Blue Sky” permits and other authorizations
    necessary, if required, to issue the INCEPTION common stock pursuant to the Agreement at the Closing.
	 	 	 
	 	(c)	No
    Injunctions or Restraints. No court of competent jurisdiction or other competent governmental or regulatory authority
    shall have enacted, issued, promulgated, enforced or entered any law or order (whether temporary, preliminary or permanent)
    which is then in effect and has the effect of making illegal or otherwise restricting, preventing or prohibiting consummation
    of the Exchange or the other transactions contemplated by this Agreement.
	 	 	 
	 	(d)	Consents
    and Approvals. All consents, approvals and actions of, CLAVO RICO or INCEPTION to consummate the Exchange and the other
    matters contemplated hereby, the failure of which to be obtained or taken could reasonably expected to have a material adverse
    effect on INCEPTION or CLAVO RICO, in each case taken as a whole, or on the ability of the Parties to consummate the transactions
    contemplated hereby shall have been obtained, all in form and substance reasonably satisfactory to the Parties, and no such
    consent, approval or action shall contain any term or condition which could be reasonably expected to result in a material
    diminution of the benefits of the Exchange to the stockholders of INCEPTION or CLAVO RICO.
	 	 	 
	 	(e)	Lock-Up
    Agreement. The Parties shall have executed and delivered a Lock-Up Agreement (“Lock-Up Agreement”) relating
    to a portion of the shares of INCEPTION common stock acceptable to INCEPTION issued to the CLAVO RICO shareholders in the
    Exchange.

 

7.02
Conditions to Obligation of INCEPTION to Effect the Exchange.

 

The
obligation of INCEPTION to effect the Exchange is further subject to the fulfillment, at or prior to the Closing, of each of the
following additional conditions (all or any of which may be waived in whole or in part by INCEPTION in its sole discretion).

 

    	 

    	Page | 30

    

  

	 	(a)	Representations
    and Warranties. The representations and warranties made by CLAVO RICO and the Shareholders in this Agreement shall be
    true and correct in all material respects as of the Closing Date as though made on and as of the Closing Date or, in the case
    of representations and warranties made as of a specified date earlier than the Closing Date, on and as of such earlier date,
    and CLAVO RICO shall have delivered to INCEPTION a certificate, dated the Closing Date and executed on behalf of CLAVO RICO
    by its Chairman of the Board or its President to such effect.
	 	 	 
	 	(b)	Performance
    of Obligations. CLAVO RICO shall have performed and complied with, in all material respects, each agreement, covenant,
    and obligation required by this Agreement to be so performed or complied with by CLAVO RICO at or prior to the Closing, and
    CLAVO RICO shall have delivered to INCEPTION a certificate, dated the Closing Date and executed on behalf of CLAVO RICO by
    its Chairman of the Board or President to such effect.
	 	 	 
	 	(c)	Other
    Closing Documents. CLAVO RICO shall have delivered to INCEPTION at or prior to the Effective Time such other documents
    as INCEPTION may reasonably request in order to enable INCEPTION to determine whether the conditions to its obligations under
    this Agreement have been met and otherwise to carry out the provisions of this Agreement, including but not limited to such
    documents, certificates or representations from the Shareholders to ensure that any shares issuable to such shareholder can
    be issued appropriately in reliance upon an exemption from registration under the United States Securities Act of 1933,
    as amended.
	 	 	 
	 	(d)	Legal
    Action. There shall not have been instituted or threatened any legal proceeding relating to, or seeking to prohibit or
    otherwise challenge the consummation of, the transactions contemplated by this Agreement, or to obtain substantial damages
    with respect thereto.
	 	 	 
	 	(e)	No
    Governmental Action. There shall not have been any action taken, or any law, rule, regulation, order, judgment, or decree
    proposed, promulgated, enacted, entered, enforced, or deemed applicable to the transactions contemplated by this Agreement
    by any federal, state, local, or other governmental authority or by any court or other tribunal, which, in the reasonable
    judgment of INCEPTION, delays the Closing or effects the Exchange in any material way.
	 	 	 
	 	(f)	Material
    Adverse Change. There shall not have been a Material Adverse Change in CLAVO RICO since December 31, 2013.

 

    	 

    	Page | 31

    

  

7.03
Conditions to Obligation of CLAVO RICO to Effect the Exchange.

 

The
obligation of CLAVO RICO and the Shareholders to effect the Exchange is further subject to the fulfillment, at or prior to the
Closing, of each of the following additional conditions (all or any of which may be waived in whole or in part by CLAVO RICO or
the Shareholders in their sole discretion):

 

	 	(a)	Representations
    and Warranties. The representations and warranties made by INCEPTION in this Agreement shall be true and correct in all
    material respects as of the Closing Date as though made on and as of the Closing Date or, in the case of representations and
    warranties made as of a specified date earlier than the Closing Date, on and as of such earlier date, and INCEPTION shall
    have delivered to CLAVO RICO a certificate, dated the Closing Date and executed on behalf of INCEPTION by its President to
    such effect.
	 	 	 
	 	(b)	Performance
    of Obligations. INCEPTION shall have performed and complied with, in all material respects, each agreement, covenant,
    and obligation required by this Agreement to be so performed or complied with by INCEPTION at or prior to the Closing, and
    INCEPTION shall have delivered to CLAVO RICO a certificate, dated the Closing Date and executed on behalf of INCEPTION by
    its President to such effect.
	 	 	 
	 	(c)	Percentage
    Ownership. The 66,391,160 shares issued by INCEPTION in consideration of this Agreement was determined in light of the
    total fully diluted shares of INCEPTION common stock at the Closing Date, including any warrants, options, or other instruments
    convertible to common stock outstanding on the Closing Date.
	 	 	 
	 	(d)	Capital
    Funding. INCEPTION shall have completed a debt or equity funding, the net proceeds from which shall be no less than $11,000,000,
    or as mutually agreed to subsequent to the signing of this agreement.
	 	 	 
	 	(e)	Other
    Closing Documents. INCEPTION shall have delivered to CLAVO RICO at or prior to the Effective Time such other documents
    as CLAVO RICO may reasonably request in order to enable CLAVO RICO to determine whether the conditions to its obligations
    under this Agreement have been met and otherwise to carry out the provisions of this Agreement.
	 	 	 
	 	(f)	Legal
    Action. There shall not have been instituted or threatened any legal proceeding relating to, or seeking to prohibit or
    otherwise challenge the consummation of, the transactions contemplated by this Agreement, or to obtain substantial damages
    with respect thereto.
	 	 	 
	 	(g)	No
    Governmental Action. There shall not have been any action taken, or any law, rule, regulation, order, judgment, or decree
    proposed, promulgated, enacted, entered, enforced, or deemed applicable to the transactions contemplated by this Agreement
    by any federal, state, local, or other governmental authority or by any court or other tribunal, which, in the reasonable
    judgment of CLAVO RICO, delays the Closing or effects the Exchange in any material way.
	 	 	 
	 	(h)	Material
    Adverse Change. There shall not have been a Material Adverse Change in INCEPTION since July 31, 2014.

 

    	 

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7.04
Covenants of INCEPTION subsequent to Closing

 

The
following covenants shall be obligations of INCEPTION to the Shareholders, which shall be satisfied after the Closing of the Exchange
and shall survive the closing of this Agreement. The remedy for breach of any of these covenants is set forth under Article VIII
herein.

 

	 	(a)	Comply
    with the reporting requirements of the Exchange Act for a period of eighteen (18) months following the Closing. If delinquent
    in any such reporting requirement, any Shareholder may request INCEPTION to correct the delinquency within thirty (30) days.
    Failure to file the delinquent reports within the thirty (30) days notice shall constitute a breach of this subsection 7.04.
	 	 	 
	 	(b)	Take
    all necessary action and use all reasonable efforts to remain qualified for the common shares of INCEPTION to continue to
    trade on the Bulletin Board listings or a comparable exchange for at least eighteen (18) months from the Closing. Failure
    to meet this requirement shall constitute a breach of this subsection 7.04.
	 	 	 
	 	(c)	Elect
    a minimum of two new Directors to the INCEPTION board of directors who have mining and financial experience capable of running
    a small mining operation. Failure to elect such directors within three months from Closing shall constitute a breach of this
    subsection 7.04.
	 	 	 
	 	(d)	INCEPTION
    shall, through its management team or consultants, prepare a detailed budget for its mine operations and development in Honduras
    which includes its drilling program, its anticipated capital expenses as well as its projected costs of production within
    four (4) months of Closing. INCEPTION shall fund all operating costs, as well as investments and expenses per the approved
    budget for a period of at least fifteen months from Closing. Failure to fund such costs, investments and expenses shall constitute
    a breach of this subsection 7.04.

 

7.05
Covenants of CLAVO RICO subsequent to Closing

 

The
following covenants shall be obligations of CLAVO RICO to INCEPTION, which shall be satisfied after the Closing of the Exchange
and shall survive the closing of this Agreement. The remedy for breach of any of these covenants is set forth under Article VIII
herein.

 

(a)
The Shareholders who enter into a Lock-Up Agreement will comply with the terms of the Lock-Up Agreement.

 

(b)
Failure to comply in accordance with subsection (a) shall constitute a breach of this subsection 7.05.

 

(c)
CLAVO RICO shall notify all shareholders of the material terms of the Stock Exchange Agreement within 30 days of Closing, which
shall include instructions for exchanging certificates.

 

    	 

    	Page | 33

    

  

(d)
CLAVO RICO has advised that commencing on the date hereof through ninety (90) days following the Closing, CLAVO RICO shall use
its best efforts to have the shareholders of CLAVO RICO in addition to the Shareholders (the “Additional Shareholders”)
execute this Agreement and have such Additional Shareholders exchange their shares of CLAVO RICO for one share each of INCEPTION.
The shares of INCEPTION shall be offered to each of the Additional Shareholders under Regulation S as promulgated under the Securities
Act of 1933, as amended.

 

ARTICLE
VIII

 

TERMINATION;
DEFAULT

  

Section
8.01 Termination. This Agreement may be terminated at any time after execution hereof and prior to the Closing as
follows:

 

	 	(a)	Mutual
    Agreement. This Agreement may be terminated at any time by mutual agreement of the Parties.
	 	 	 
	 	(b)	Failure
    of Conditions. Either Party may terminate this Agreement, if any of the conditions obligating such Party to close specified
    in Article VII, except the conditions in Section 7.04, hereof are not satisfied or waived by such Party as of the Closing
    Date.
	 	 	 
	 	(c)	Effect
    of Termination. Each Party shall return to the other all non public information in its possession relating to the other Party.
    Each Party shall bear its own costs related to its due diligence, professional fees, etc.
	 	 	 
	 	(d)	Closing
    Date. In the event the contemplated transaction has not closed on or before April 30, 2015 the Agreement may be terminated
    at any time by either of CLAVO RICO or INCEPTION.

 

Section
8.02 Subsequent Default. In the event of a breach of any covenant set forth in sections 4.02,
6.07, 7.04 or 7.05 herein, a Shareholder may notify INCEPTION or CLAVO RICO, as appropriate, of the default and request that it
be remedied within ten (10) business days. Failure to remedy the breach within the ten business days shall result a right of indemnification
of the non-breaching party under Section 6.06 of this Agreement

 

    	 

    	Page | 34

    

  

ARTICLE
IX

 

 MISCELLANEOUS

 

Section
9.01 Brokers. INCEPTION and CLAVO RICO agree that there were no finders or brokers involved in bringing the
parties together or who were instrumental in the negotiation, execution, or consummation of this Agreement. INCEPTION and CLAVO
RICO each agree to indemnify the other against any claim by any third person for any commission, brokerage, or finders’
fee arising from the transactions contemplated hereby based on any alleged agreement or understanding between the indemnifying
party and such third person, whether express or implied from the actions of the indemnifying party.

 

Section
9.02 Governing Law. This Agreement shall be governed by, enforced, and construed under and in accordance
with the laws of the United States of America and, with respect to matters of state law, with the laws of Nevada.

 

Section
9.03 Notices. Any notices or other communications required or permitted hereunder shall be sufficiently given
if personally delivered to it or sent by registered mail or certified mail, postage prepaid, or by prepaid telegram addressed
as follows:

 

	 	If
    to INCEPTION to:	 
	 	 	 
	 	5320
    S 900 E Suite 260	 
	 	Murray,
    Utah 84107	 
	 	Attention:
    Michael Ahlin, President	 
	 	 	 
	 	With
    copies to:	 
	 	 	 
	 	If
    to CLAVO RICO to:	 
	 	 	 
	 	4049
    S. Highland Drive	 
	 	Salt
    Lake City, Utah 84124	 
	 	Attention:
    Reed L Benson, President	 
	 	 	 
	 	With
    copies to:	

 

or
such other addresses as shall be furnished in writing by any party in the manner for giving notices hereunder, and any such notice
or communication shall be deemed to have been given as of the date so delivered, mailed, or telegraphed.

 

Section
9.04 Attorney’s Fees. In the event that any party institutes any action or suit to enforce this Agreement
or to secure relief from any default hereunder or breach hereof, the breaching party or parties shall reimburse the non-breaching
party or parties for all costs, including reasonable attorneys’ fees, incurred in connection therewith and in enforcing
or collecting any judgment rendered therein.

 

Section
9.05 Schedules; Knowledge. Each party is presumed to have full knowledge of all information set forth in
the other party’s schedules delivered pursuant to this Agreement.

 

    	 

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Section
9.06 Third Party Beneficiaries. This contract is solely between INCEPTION, CLAVO RICO and the Shareholders,
and, except as specifically provided, no director, officer, stockholder, employee, agent, independent contractor, or any other
person or entity shall be deemed to be a third party beneficiary of this Agreement.

 

Section
9.07 Entire Agreement. This Agreement represents the entire agreement between the parties relating to the
subject matter hereof, including This Agreement alone fully and completely expresses the agreement of the parties relating to
the subject matter hereof. There are no other courses of dealing, understandings, agreements, representations, or warranties,
written or oral, except as set forth herein.

 

Section
9.08 Survival; Termination. The representations, warranties, and covenants of the respective parties shall
survive the Closing Date and the consummation of the transactions herein contemplated.

 

Section
9.09 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed
an original and all of which taken together shall be but a single instrument.

 

Section
9.10 Amendment or Waiver. Every right and remedy provided herein shall be cumulative with every other right
and remedy, whether conferred herein, at law, or in equity, and may be enforced concurrently herewith, and no waiver by any party
of the performance of any obligation by the other shall be construed as a waiver of the same or any other default then, theretofore,
or thereafter occurring or existing. At any time prior to the Closing Date, this Agreement may be amended by a writing signed
by all parties hereto, with respect to any of the terms contained herein, and any term or condition of this Agreement may be waived
or the time for performance hereof may be extended by a writing signed by the party or parties for whose benefit the provision
is intended.

 

[SIGNATURE
PAGE FOLLOWS]

 

    	 

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IN
WITNESS WHEREOF, the corporate parties hereto have caused this Agreement to be executed by their respective officers, hereunto
duly authorized, as of the date first above-written.

 

	 	 	INCEPTION
    MINING, INC.
	ATTEST:	 	 	 
	 	 	 	 
	/s/
    Whit Cluff  	 	By	/s/
    Michael Ahlin
	Secretary	 	 	President
	 	 	 	 
	 	 	CLAVO
    RICO, LTD.
	 	 	 	 
	 	 	By	/s/
    Reed L. Benson
	 	 	 	President

 

    	 

    	Page | 37

    

  

SHAREHOLDER
SIGNATURE PAGE

 

The
Undersigned shareholder(s) of Clavo Rico, Ltd, a Turks and Caicos Limited Company, by the signature(s) set forth herein do hereby
agree that the Undersigned confirms and ratifies the Stock Exchange Agreement by and among Clavo Rico, Ltd., Inception Mining,
Inc. and the Shareholders of Clavo Rico, delivered herewith. The Undersigned acknowledges that he(she) will receive one share
of Inception Mining, Inc. for each share of Clavo Rico, Ltd. held by the Undersigned.

 

	Shareholder	 	Number
    of Shares held
	 	 	 
	 	 	 
	 	 	 

 

    	 

    	Page | 38

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