Document:

ex10-01.htm

    
EXHIBIT
10.01

     

     

    CONFIDENTIAL

    

     

    ASSET
PURCHASE AGREEMENT

     

    BY
AND AMONG

     

    MEDINA
PROPERTY GROUP, LLC

     

    AND

     

    SIERRA
RESOURCE GROUP, INC.

     

    

     

    

     

    

     

    

     

    

     

    

     

    

     

    Effective
Date: April 23, 2010

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

    CONFIDENTIAL

    TABLE OF
CONTENTS

     

    Page

    

      
        	
                ARTICLE I PURCHASE AND
      SALE

              	
                1

              
	
                    1.1  Purchase of the
      Assets

              	
                1

              
	
                    1.2  Purchase
      Price

              	
                2

              
	
                    1.3  Excluded
      Liabilities

              	
                2

              
	
                    1.4  Purchase Price
      Allocation

              	
                2

              
	
                    1.5  Intentionally
      Deleted

              	
                2

              
	
                    1.6  Third Party
      Beneficiaries

              	
                3

              
	    1.7  NSR Obligations	
                3

              
	
                ARTICLE II
      CLOSING

              	
                3

              
	
                    2.1 
      Closing

              	
                3

              
	
                    2.2  Seller Closing
      Deliveries

              	
                3

              
	
                    2.3  Buyer Closing
      Deliveries

              	
                3

              
	
                    2.4  Further
      Assurances

              	
                4

              
	
                ARTICLE III [INTENTIONALY
      DELETED]

              	
                4

              
	
                ARTICLE IV REPRESENTATIONS AND
      WARRANTIES OF THE SELLER

              	
                4

              
	     4.1  Corporate
Status	4
	     4.2  Corporate Power and
      Authority	4
	     4.3  Existing
    Condition	4
	     4.4  Title to and Sufficiency
      of Properties	5
	     4.5  Use of Assets	5
	     4.6  Litigation	5
	     4.7  Validity of Contemplated
      Transactions	5
	     4.8  Consents	6
	     4.9  Licenses and
      Permits	6
	     4.10
      Water Requirements	6
	     4.11
      Contracts and Commitments	6
	     4.12
      Environmental Matters	6
	     4.13
      Zoning	7
	     4.14
      Tax Liabilities	7
	     4.15
      Employee Benefit Matters	8
	     4.16
      Compliance with Applicable Laws	8
	     4.17
      Labor Matters	8
	     4.18
      Non-Foreign	9
	     4.19
      Patriot Act	9
	     4.20
      Non-Foreign Status	9
	     4.21 No
      Undisclosed Liabilities	9
	     4.22
      Disclosure	9
	 ARTICLE V REPRESENTATIONS AND WARRANTIES OF THE
      BUYER	9

      

      
        	
                   5.1  Corporate
      Existence

              	
                9

              
	
                    5.2  Corporate Power and
      Authority  

              	
                9

              

      

i

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
         

         

      

    

    
      CONFIDENTIAL

      TABLE OF
CONTENTS

      (continued)

       

      Page

    

    
      
        
          	
                      5.3  Validity of Contemplated
      Transactions

                	
                  9

                
	
                      5.4  No
      Conflicts

                	
                  10

                
	
                      5.5  Ability to Close

                	
                  10

                
	
                      5.6 
      Consents

                	
                  10

                
	
                      5.7  Brokers' Fees

                	
                  10

                
	
                      5.8  Patriot Act

                	
                  10

                
	
                      5.9  Information on
    Buyer

                	
                  11

                
	ARTICLE VI CONDITIONS PRECEDENT TO THE
      CLOSING	
                  11

                
	
                      6.1  Conditions Precedent to
      Buyer's Obligations

                	
                  11

                
	
                      6.2  Conditions Precedent to
      Seller's Obligations

                	
                  12

                
	
                  ARTICLE VII COVENANTS OF THE
      PARTIES

                	
                  12

                
	
                      7.1  Confidentiality

                	
                  12

                
	
                      7.2  Due
      Diligence

                	
                  12

                
	
                      7.3  Access to
      Information

                	
                  13

                
	
                      7.4  Capitalization of Buyer;
      Protection of Shares Consideration

                	
                  13

                
	    7.5  Reasonable Efforts and
      Cooperation; Accomplish Transaction	13
	    7.6  General Conduct	14
	    7.7  Other
    Restrictions	14
	    7.8  Further
      Restrictions	15
	ARTICLE
      VIII POST CLOSING MATTERS AND COVENANTS	15
	    8.1  Access to Records and
      Persons 	15
	    8.2  Water
    Rights 	15
	    8.3  Recording
      Fees 	16
	    8.4  Merger in
      Agreement 	16
	ARTICLE
      IX TERMINATION	16
	    9.1  Termination	16
	ARTICLE
      X INDEMNIFICATION	16
	    10.1
      Indemnification Obligation of the Seller 	16
	    10.2
      Indemnification Obligation of Buyer 	17
	    10.3
      Claims Procedures for Indemnification 	18
	    10.4
      Aggregate Liability 	19
	    10.5
      Exclusivity 	19
	ARTICLE
      XI MISCELLANEOUS 	19
	    11.1
      Expenses 	19
	    11.2
      Contents of Agreement; Parties in Interest 	19
	    11.3
      Assignment and Binding Effect 	20
	    11.4
      Waiver 	20
	    11.5
      Notices 	20

        

        
          	
                      11.6 No Benefit to
      Others

                	
                  20

                
	
                      11.7 Schedules and
      Exhibits

                	
                  20

                

        

         

         

        ii

      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
       

      
        CONFIDENTIAL

        TABLE OF
CONTENTS

        (continued)

         

        Page

      

    

     

    
      	    11.8
      Severability 	20
	    11.9
      Cooperation 	20
	    11.10Counterparts 	21
	    11.11
      Governing Law; Venue 	21
	    11.12
      Time is of the Essence 	21

      
        	
                    11.13 Delivery by
      Facsimile

              	
                21

              
	
                    11.14
    Publicity

              	
                21

              

      

       

      SCHEDULES AND
EXHIBITS

       

      Schedules

       

      Schedule 1.1a        Mining Claims and Mill
Sites

      Schedule 1.1b        Machinery, Equipment,
Etc.

       

      Exhibits

       

      Exhibit A       Form of Deed and Bill of Sale

      Exhibit B        State of Arizona & Federal
Permits

      Exhibit C        Water Rights

      Exhibit D        Bylaws of Buyer

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      iii

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    CONFIDENTIAL

     

    ASSET
PURCHASE AGREEMENT

     

     

    THIS ASSET PURCHASE AGREEMENT
(this “Agreement”) is
made and entered into on this 23th day of April 2010 (the “Effective Date”), by and
between Medina Property Group, LLC, a Florida limited liability company (the
“Seller”) and Sierra
Resource Group, Inc., a Nevada corporation (the “Buyer”).

     

    Preliminary
Statements

     

    WHEREAS, the Chloride Copper
Project, located near Kingston, Arizona, is a former copper producer comprised
of a mineral deposit and some infrastructure, including (i) a small open pit
mine, (ii) an SX/EW plant, (iii) a leach pad with mineralized material for heap
leaching, (iv) a pad with tailings from previous mining and processing, (v)
three small low grade stockpiles, and (vi) mine infrastructure including some
buildings, office trailer and equipment, which may have to be repaired or
replaced (the “Mine”).

     

    WHEREAS, the Seller is
conducting work to assess the economics of putting the Mine back into production and
is the owner of certain permits, rights and equipment with respect to the Mine
which the Buyer is interested in purchasing.  

     

    WHEREAS, the Buyer is a
publicly traded entity.

     

    WHEREAS, the Buyer wishes to
purchase the Assets (as defined below) for the purchase price set forth herein
and upon and subject to the terms and conditions hereinafter set
forth.

     

    WHEREAS, the Buyer shall
assume no trade obligations, indebtedness of any kind, bank drafts or other
liabilities of the Seller, contingent or otherwise, unless specified
herein.

     

    WHEREAS, in consideration of
the mutual agreements, representations, warranties, covenants and agreements
herein contained, and for other good and valuable consideration, the receipt and
sufficiency of all of which are hereby acknowledged, the parties hereto agree as
follows:

    

    ARTICLE
I

    PURCHASE
AND SALE

    

                    
1.1 Purchase
of the Assets. At the
Closing (defined below), on the terms and subject to the conditions set forth in
this Agreement, the Seller will validly and effectively, grant, sell, convey,
transfer, assign and deliver to the Buyer, free and clear of all liens, pledges,
security interests, charges, claims, restrictions and other encumbrances or
defects of title of any nature whatsoever, and the Buyer will purchase and
acquire from the Seller, an undivided eighty percent (80%) of Seller’s right,
title and interest, as of theClosing Date (defined below), in and to all of the
Seller’s properties and assets including, but not be limited to, those assets
set forth below relating to the Mine (collectively, the “Assets”):

     

     

    1

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    CONFIDENTIAL

    
 

    The 37
unpatented lode mining claims, the 14 unpatented mill sites, and the processing
equipment and other property, excluding the Retained Interest, described on
Schedules 1.1(a) and 1.1(b) all AS-IS and WHERE-IS, without express or implied
warranty of any kind, the permits and approvals described on Exhibit “B”,
excluding the Retained Interest (the “Permits”), and the water rights described
on Exhibit “C”, excluding the Retained Interest (the “Water Rights”). Buyer
acknowledges and agrees that the Assets do not include the remaining
non-dilutable, non-divisable twenty percent (20%) of Seller’s right, title and
interest (the “Retained Interest”), retained by Seller or its designee(s) or
assigns, which is specifically excluded from this Agreement.

    
       

                     
1.2 Purchase
Price. In consideration for the purchase of the Assets set forth above,
the Buyer will pay Twelve Million Seven Hundred Fifty Thousand
(12,750,000)  shares of common stock of Buyer issued to Seller or its
assignees (the “Shares Consideration” or the “Purchase Price”) as
follows:

    

     

    (a) The
Shares Consideration shall be delivered at the Closing.

     

    (b)
Notwithstanding anything to the contrary contained herein, the Parties recognize
that the sum of One Hundred Twenty Five Thousand Dollars ($125,000.00) is due
and owing to the original seller for the purchase of the equipment where the
Mine is located.  This sum shall also be paid to Seller by Buyer at
Closing within 90 days, and is part of the Purchase Price.

     

     1.3 Excluded
Liabilities.  The
Buyer will assume no liabilities, obligations or commitments of the Seller,
including without limitation any trade obligations, bank debt, or claims of any
kind other than the NSR Obligations defined below.  The Seller retains
all other liabilities that relate to the Mine or the Assets that result from or
arise out of any event, occurrence, transaction, action or inaction occurring
prior to the Closing, including without limitation liabilities under any
“employee pension benefit plan” or “employee welfare benefit plan” as those
terms are defined in Sections 3(1) and 3(2) of the Employee Retirement Income
Security Act of 1974 as amended, any product liability, warranty or other claims
arising out of or relating to any product manufactured, distributed or sold by
the Seller at any time before Closing, and any claims relating to patent or
trademark infringement, taxes, workers compensation, real estate or
environmental, health or safety matters.

     

     1.4 Purchase Price
Allocation. The
Purchase Price shall be allocated among the equipment comprising the Assets in
accordance with an allocation schedule which will be prepared prior to the
Closing by the Buyer, subject to Seller approval and, which schedule will be
prepared in accordance with the United States Internal Revenue Code (the “Code”).  In
connection with the determination of the foregoing allocation schedule, the
parties shall cooperate with each other and provide such information as any of
them shall reasonably request.  The parties will each report the
federal, state and local and other tax consequences of the purchase and sale
contemplated hereby (including the filing of Internal Revenue Service Form 8594)
in a manner consistent with such allocation.

     

    1.5 [Intentionally
Deleted]

     

     

    2

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    CONFIDENTIAL

     

    1.6 Third Party
Beneficiaries. This Agreement is
between the parties hereto only and nothing herein shall establish any
enforceable rights, legal or equitable, in any person other than the Buyer and
the Seller, including any employee of either such party.

     

    1.7  NSR
Obligations. The following Net Smelter Return (“NSR”) obligations are
royalty payments made by a producer of metals based on gross metal production
from the property, less deduction of certain limited costs including and limited
to: smelting, refining, transportation and insurance costs, (if any), and is
paid Quarterly to the NSR recipients defined herein (copies of which have been
provided by Seller to Buyer and subject to which Buyer takes the Assets): (i)
Coach Capital LTD, 1% NSR on all ore for a period of 5 years (ii) MayLink (May
Lion, Inc., Xing-Lung Road, Sec. 1, #257, 2F Taipei, Taiwan) 7.5% NSR all
ore.  Buyer shall assume all of the aforementioned payment obligations
upon the Closing.

     

    

     

    ARTICLE
II

    CLOSING

     

     2.1 Closing.  The
Closing (the “Closing”)
of the sale and purchase of the Assets shall occur no later than June 15, 2010
(such date, the “Closing
Date”) and shall take place at the offices of the Seller’s counsel,
Silverberg & Weiss, P. A., 2665 Executive Park Drive, Suite #2, Weston,
FL  33331, or at such other time and place as the parties may mutually
agree upon in writing.  The Parties agree that the Assets shall be
transferred and conveyed by Seller to Buyer at Closing.

     

     2.2  Seller Closing
Deliveries.  At
the Closing and subject to the terms and conditions herein contained the Seller
shall deliver to the Buyer the following:

     

              (i) its
executed counterpart to this Agreement;

     

              (ii) an
executed general instrument of sale, and conveyance, assignment, transfer and
delivery with respect to all of the Assets, such instrument to be in the form of
Exhibit A
attached hereto (the “Deed and
Bill of Sale”). This does not include a transfer of real property or the
Retained Interest;

     

              (iii) all of
the Assets;

     

              (iv) releases
of all liens and other encumbrances on the Assets or bank payoffs letter with
respect thereto; and

     

              (v) closing
documents as reasonably requested by the Buyer, including but not limited to a
Certificate of the President of the Seller certifying the accuracy of the
representations and warranties as of the Closing Date, board resolutions,
incumbency certificate, consents from any third parties or such other documents
as necessary and appropriate to consummate this transaction.

     

     2.3 Buyer Closing
Deliveries.

     

              (a) To the
Seller.  At the Closing and subject to the terms and conditions
herein contained the Buyer shall deliver, or cause to be delivered, to the
Seller the following:

     

     

    3

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

       

      CONFIDENTIAL

    

     

                     (i) its executed counterpart to this
Agreement;

     

                    (ii) stock certificate(s)
representing the Shares Consideration;

     

                    (iii) Any unpaid portion of the
Purchase Price and

     

                    (iv) closing documents as reasonably
requested by the Seller, including but not limited to a Certificate of the
President of the Buyer certifying the accuracy of the representations and
warranties as of the Closing Date, board resolutions, incumbency certificate,
consents from any third parties or such other documents as necessary and
appropriate to consummate this transaction..

     

     2.4 Further
Assurances.  The
Seller from time to time after the Closing, at the Buyer’s reasonable request
and at the Buyer’s expense, will execute, acknowledge and deliver to the Buyer
such other instruments of conveyance and transfer and will take such other
actions and execute and deliver such other documents, certifications and further
assurances as the Buyer may reasonably request in order to vest more effectively
in the Buyer, or to put the Buyer more fully in possession of any of the
Assets.

     

    

     

    ARTICLE
III

    [INTENTIONALLY
DELETED]

     

    

     

    ARTICLE
IV

    REPRESENTATIONS
AND WARRANTIES OF THE SELLER

     

    Except as
disclosed to the Buyer in the disclosure schedules delivered by the Seller
simultaneously with the execution of this Agreement, the Seller hereby
represents and warrants to the Buyer as of the Effective Date and as of the
Closing as follows (with the understanding that the Buyer is relying on each
such representation and warranty in entering into and performing this
Agreement):

     

     4.1 Corporate
Status.  The
Seller is a limited liability company duly incorporated under the laws of
Florida and is in good standing.  There are in existence no
outstanding options, contracts, commitments, warrants, agreements or rights of
any character or nature whatsoever affecting the issuance of the Seller’s
equity.

     

     4.2 Corporate Power and
Authority.  The
Seller has the full power, authority and legal right to execute, deliver and
perform this Agreement.  This Agreement constitutes, and when executed
and delivered will constitute, legal, valid and binding agreements of the Seller
enforceable against the Seller in accordance with their respective terms, except
as may be limited by bankruptcy, insolvency and other similar laws affecting
creditors’ rights generally and by general equity principles.

     

     4.3 Existing
Condition.  Since
December 31, 2009, the Seller has not with respect to the  Assets or
the Mine:

     

     (a) sold,
assigned or transferred any of its assets or properties;

     

     

    4

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

       

      CONFIDENTIAL

    

     

     (b) suffered
any damage, destruction or loss, whether or not covered by insurance, materially
and adversely affecting its business, operations, assets, properties or
prospects;

     

     (c) suffered
any material adverse change in its business, operations, assets,
properties;

     

    (d) received
notice or had knowledge of any actual or threatened labor trouble, strike,
change in the economy or in the mining industry or other occurrence, event or
condition of any similar character which has had or might have a material
adverse effect on its business, operations, assets, properties or
prospects;

     

    (e) made any
capital expenditure or capital addition or betterment except such as may be
involved in the ordinary course of business;

     

    (f) entered
into any material transaction other than in the ordinary course of its business
consistent with past practice;

     

    (g) operated
the Mine other than in the ordinary course consistent with past practice, and
granted no general or individual increase in compensation.

     

     4.4 Title to and Sufficiency of
Properties. The
Seller has good, valid and marketable title to all of the Assets free and clear
of all liens, pledges, security interests, charges, claims, restrictions and
other encumbrances and defects of title of any nature whatsoever and have the
unrestricted right to sell the Assets as herein provided.

     

     4.5 Use of
Assets.  The
Assets being conveyed have been used only in the lawful conduct of the
Mine.  Conveyance as contemplated by this Agreement will not violate
any federal statute or local law, ordinance, rule or regulation or any corporate
article of incorporation, bylaw, or resolution.

     

     4.6 Litigation.  Except
for the notice of violation dated July 17, 1997 received from the Arizona
Department of Environmental Quality, there is no litigation, arbitration,
investigation or other proceeding of or before any court, arbitrator or
governmental or regulatory official, body or authority pending or threatened
against the Seller which relates to any of the Assets, the Mine or the
transactions contemplated by this Agreement, nor does the Seller know of any
basis for such litigation, arbitration, investigation or other proceeding, which
if decided adversely would have a material adverse effect upon the financial
condition of the Seller.  The Seller is not a party to any judgment,
order, writ, injunction, decree or award of any court, arbitrator or
governmental or regulatory official, body or authority which affects the Assets
or the Mine or the transactions contemplated by this Agreement.

     

     4.7 Validity of Contemplated
Transactions.  The
execution, delivery and performance of this Agreement and the transactions
contemplated hereby by the Seller will not contravene or violate (a) any law,
rule or regulation to which the Seller is subject, (b) any judgment, order,
writ, injunction, decree or award of any court, arbitrator or governmental or
regulatory official, body or authority which is applicable to the Seller, or (c)
the charter documents of the Seller or any securities issued by the Seller; nor
will such execution, delivery or performance violate, be in conflict with or
result in the breach (with or without the giving of notice or lapse of time, or
both) of any term, condition or provision of, or require the consent of any
other party, to, any indenture, agreement, contract, commitment, lease, plan,
license, permit, authorization or other instrument, document or understanding,
oral or written, to which the Seller is a party, by which the Seller may have
rights or by which any of the Assets may be bound or affected, or give any party
with rights thereunder the right to terminate, modify, accelerate or otherwise
change the existing rights or obligations of the Seller thereunder except in
each case for any such item which would not have a material adverse
effect.

     

     

    5

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

       

      CONFIDENTIAL

       

       

    

     4.8 Consents. No
authorization, approval or consent, and no registration or filing with any
governmental or regulatory official, body or authority is required in connection
with the execution, delivery and performance of this Agreement by the
Seller.

     

     4.9 Licenses and
Permits. The
Seller owns all certificates, licenses, permits, approvals, franchises,
registrations, accreditations and other authorizations listed on Exhibit B, as
are necessary or appropriate in order to enable the Seller to own and use the
Assets and to own and conduct the Mine.  The Seller has complied in
all material respects, and the Seller is in compliance in all material respects,
with the terms and conditions of any such licenses and permits.  No
additional license or permit is required from any government entity in
connection with the operation of the Mine.  No claim has been made by
any government entity (and, to the knowledge of the Seller, no such claim has
been threatened) to the effect that a license or permit not possessed by the
Seller is necessary in respect of the Mine.

     

     4.10 [Intentionally
Deleted]

     

            4.11 Contracts and
Commitments.  The
Seller is not a party to any undisclosed contract or any undisclosed commitment,
whether oral or written.

     

     4.12 Environmental
Matters.

     

     (a) The
Seller has not discharged or caused to be discharged, on, under or about any
facility of its business, including without limitation into the ambient air,
surface water, groundwater, land surface, or subsurface strata, any solvents,
pollutants, chemicals, flammables, contaminants, gasoline, petroleum products,
crude oil, explosives, radioactive materials, hazardous materials or other
hazardous or toxic materials, substances, or wastes, or polychlorinated
biphenyls or related or similar materials, asbestos or any material containing
asbestos, (collectively, the “Hazardous
Substances”).

     

     (b) The
Seller has not used any facility owned or leased by it to generate, manufacture,
refine, transport, treat, store, handle, dispose, transfer, produce, process or
in any manner deal with Hazardous Substances, except in compliance with
applicable Environmental Laws, as defined herein, including, but not limited to
any applicable federal, state or local governmental law, rule, regulation or
ordinance, including, without limitation, the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980, as amended (42 U.S.C.
Sections 9601, et seq.), the Hazardous Materials Transportation Act, as amended
(49 U.S.C. Section 1801, et seq.), the Resource Conservation and Recovery Act,
as amended (42 U.S.C. Sections 6901 et seq.), the Federal Water Pollution
Control Act, as amended (33 U.S.C. Sections 1251 et seq.), the Clean Air Act, as
amended (42 U.S.C. Sections 7401 et seq.) the Toxic Substances Control Act, as
amended (15 U.S.C. Sections 2601 et. seq.), the Clean Water Act, as amended (33
U.S.C. Sections 1251 et. seq.) (collectively all such laws, rules, ordinances or
regulations called herein, “Environmental
Laws”);

     

     

    6

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

       

      CONFIDENTIAL

       

       

    

     (c) The
Seller has obtained  all required registrations, permits, licenses,
and other authorizations which are required under federal, state and local laws
and regulations relating to pollution or protection of the environment,
including but not limited to all Environmental Laws and including all laws
relating to emissions, discharges, releases, or threatened releases of Hazardous
Substances or otherwise relating to the manufacture, processing, distribution,
use, treatment, storage, disposal, transport or handling of Hazardous
Substances;

     

     (d) The
Seller is in compliance in all material respects with all terms and conditions
of such required registrations, permits, licenses and authorizations, and is
also in compliance with all other limitations, restrictions, conditions,
standards, prohibitions, requirements, obligations, schedules and timetables
contained in the Environmental Laws or contained in any regulation, code, plan,
order, decree, judgment, injunction, notice or demand letter issued, entered,
promulgated or approved thereunder;

     

     (e) There is
no civil, criminal, or administrative action, suit, demand, claim, hearing,
notice of violation, investigation, proceeding, notice or demand letter pending,
or threatened  relating in any way to (i) the Environmental Laws or
any regulation, code, plan, order, decree, judgment, injunction, notice or
demand letter applicable to it issued, entered, promulgated, or approved
thereunder, or (ii) relating to the release into the environment by the Seller
of any Hazardous Substances whether or not occurring at or on a site owned,
leased or operated by the Seller; and

     

     (f) The
Seller has timely filed all reports, obtained all required approvals, generated
and maintained all required data, documentation and records required by the
Environmental Laws or any regulation, code, plan, order, decree, judgment,
injunction, notice or demand letter issued, entered, promulgated, or approved
thereunder.

     

     4.13 Zoning.  The
Seller is currently in compliance with all applicable zoning regulations and the
current use, and the intended use by the Buyer, of the property on which the
Mine and the Assets are located is in compliance with all laws and does not
violate any local zoning ordinances.

     

    4.14 Tax
Liabilities.  The
Seller has properly completed and timely filed all federal, state, county, local
and foreign income, excise, property, sales and other tax returns relating to
the Mine and the Assets which are required to be filed up to and including the
Effective Date and has paid all taxes which have become due, or any assessment
which has become payable relating to the Mine or the Assets, except where the
failure to file or pay taxes would not have a material adverse effect on the
financial condition of the Seller.  There are no taxes, liens or
governmental charges owed, pending or threatened which affect the Mine or the
Assets.  The Seller shall be responsible for any transfer taxes which
are payable as a result of the sale of the Assets of the Seller to the
Buyer.

     

     

    7

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

       

      CONFIDENTIAL

       

       

    

                    
4.15 Employee Benefit
Matters.   The
Seller has not been and currently is not a party to any “employee benefit plan”,
as defined in Section 3(3) of ERISA, personnel policy, collective
bargaining agreement, profit sharing, stock option, stock purchase, pension,
bonus, incentive, retirement, incentive award plan or arrangement, vacation
policy, severance pay policy or agreement, deferred compensation agreement or
arrangement, consulting agreement, employment contract, medical reimbursement,
life insurance or other benefit plan, agreement, arrangement, program, practice
or understanding.

     

                   
 4.16 Compliance with Applicable
Laws.  To
the knowledge of the Seller, the Seller has complied with all laws, regulations,
injunctions, decrees and orders applicable to the Mine and the Assets and has
received no written notice of any alleged violation of any such law, regulation,
injunction, decree or order for which the failure to comply would, in any
individual case or in the aggregate, have an adverse effect on the Mine and the
Assets.  Neither the ownership of the Assets or the use of the
Seller’s properties in the operation of the Mine conflicts with the rights of
any other person, firm or corporation or violates, with or without the giving of
notice or the passage of time, or both, or will violate, conflict with or result
in a default, right to accelerate or loss of rights under, any terms or
provisions of its Articles of Organization or Operating Agreement as presently
in effect, or any lien, encumbrance, mortgage, deed of trust, lease, license,
agreement, understanding, law, ordinance, rule or regulation, or any order,
judgment or decree to which the Seller is a party or by which the Seller may be
bound or affected.  The Seller has not received any written notice
from any person alleging any violation by the Mine of any law, ordinance, code,
rule or regulation or requiring or calling attention to the necessity of any
work, repairs, new construction, installation or alteration in connection with
the Mine.

     

     4.17 Labor
Matters.

     

     (a) The
Seller has no incentive plans or policies, employment policies and handbooks,
employment agreements, collective bargaining agreements, union contracts or
similar types of agreements (including, without limitation, any side letters) by
which the Seller is bound or covered relating to the Mine or the
Assets.  Accurate and complete copies of all such agreements and
contracts have been delivered to the Buyer prior to the Effective
Date.

     

     (b) There is
no strike or union organizational activity or any allegation, charge or
complaint of employment discrimination, unfair labor practice or other similar
occurrence, pending or threatened against the Seller relating to the Mine or the
Assets, nor, has the Seller operated the Mine or used the Assets in such a way
which, to the best of its knowledge, would give rise to any such allegation,
charge, or complaint.

     

     (c) All
employees of the Seller have been properly classified and no person is treated
as an independent contractor or third party agency employee who should be
treated as an employee under the laws of the country in which such individual
performs services.

     

     4.18 Non-Foreign.  The
Seller is not a “foreign person,” as defined under §1445(f) of the
Code.

     

     

    8

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

       

      
        CONFIDENTIAL

         

         

      

    

     4.19 Patriot
Act.  The
Seller is not on the Specially Designated National and Blocked Persons List (the
“List”) of the Office of
Foreign Assets Control (the “Office”) of the United States
Department of the Treasury and is not otherwise blocked or banned by any Office
rule or any other law or regulation, including but not limited to the USA
Patriot Act (the “Act”)
or Executive Order 13224 (the “Order”).

     

     4.20 Non-Foreign
Status.  The
Buyer is not a “foreign person,” as defined under §1445(f) of the
Code.

    

     4.21 No Undisclosed
Liabilities.  To
the knowledge of the Seller, the Mine has no undisclosed liability of any
nature.

     

     4.22 Disclosure.  No
representation or warranty by the Seller contained in this Agreement, nor any
statement or certificate furnished or to be furnished by the Seller to the Buyer
or its representatives in connection herewith or pursuant hereto, contains or
will contain any untrue statement of material fact, or omits to state any
material fact required to make the statements herein or therein contained not
misleading or necessary in order to provide a prospective buyer of the Assets
with adequate information as to the Seller and its condition (financial and
otherwise), properties, assets, liabilities, and business, and the Seller has
disclosed to the Buyer in writing all material adverse facts known to them
relating to the same.

     

    

     

    ARTICLE
V

    REPRESENTATIONS
AND WARRANTIES OF THE BUYER

     

    The Buyer
hereby represents and warrants to the Seller as of the Effective Date and as of
the Closing as follows (with the understanding that the Seller is relying on
each such representation and warranty in entering into and performing this
Agreement):

     

             5.1 Corporate
Existence.  The
Buyer is a corporation duly organized, validly existing and in good standing
under the laws of the State of Nevada.

     

     5.2 Corporate Power and
Authority.  The
Buyer has the power, authority and legal right to execute, deliver and perform
this Agreement.  The execution, delivery and performance of this
Agreement by the Buyer and any document to be delivered at the
Closing  have been duly authorized by all necessary corporate
action.  This Agreement has been, and any document to be delivered at
the Closing will be, duly executed and delivered by the Buyer and constitutes
the legal, valid and binding agreement of the Buyer enforceable against it in
accordance with its terms, except as may be limited by bankruptcy, insolvency
and other similar laws affecting creditors’ rights generally and by general
equity principles.

     

     5.3 Validity of Contemplated
Transactions.  The
execution, delivery and performance of this Agreement by the Buyer will not
contravene or violate (a) any law, rule or regulation to which the Buyer is
subject, (b) any judgment, order, writ, injunction, decree or award of any
court, arbitrator or governmental or regulatory official, body or authority
which is applicable to the Buyer, or (c) the Operating Agreement of the Buyer or
any securities issued by the Buyer; nor will such execution, delivery or
performance violate, be in conflict with or result in the breach (with or
without the giving of notice or lapse of time, or both) of any term, condition
or provision of, or require the consent of any other party, to, any indenture,
agreement, contract, commitment, lease, plan, license, permit, authorization or
other instrument, document or understanding, oral or written, to which the Buyer
is a party, by which the Buyer may have rights or by which any of the Assets may
be bound or affected, or give any party with rights thereunder the right to
terminate, modify, accelerate or otherwise change the existing rights or
obligations of the Buyer thereunder.  No authorization, approval or
consent, and no registration or filing with any governmental or regulatory
official, body or authority is required in connection with the execution,
delivery and performance of this Agreement by the Buyer except in each case for
any item which would not have a material adverse effect.

     

     

    9

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

       

      CONFIDENTIAL

       

       

    

                    
5.4 No
Conflicts. The execution, delivery
and performance by the Buyer of this Agreement and the consummation of the
transactions contemplated hereby will not (a) conflict with or result in a
breach or violation of any term or provision of, or constitute a default under
(with or without notice or passage of time, or both), or otherwise give any
person a basis for accelerated or increased rights or termination or
nonperformance under, any indenture, mortgage, deed of trust, loan or credit
agreement, lease, license or other agreement or instrument of which the Buyer is
a party or by which the Buyer is bound or affected (b) result in the
violation of the provisions of the operating agreement of the Buyer or
(c) otherwise adversely affect the contractual or other legal rights or
privileges of the Buyer as it relates to its ability to consummate the
transactions contemplated by this Agreement.

     

    5.5 Ability to
Close. The Buyer has the
ability and financial wherewithal to close the transactions contemplated by this
Agreement and shall pay the Purchase Price on the Closing Date.

     

    5.6 Consents. All consents,
authorizations and approvals of any person or entity to or as a result of the
consummation of the transactions contemplated hereby, that are necessary or
advisable in connection with the operations and business of the Buyer as
currently conducted and as proposed to be conducted, or for which the failure to
obtain the same might have, individually or in the aggregate, a material adverse
effect on the Buyer, have been lawfully and validly obtained by the
Buyer.  The Seller shall fully cooperate with and assist the Buyer in
obtaining any consents necessary or advisable hereunder.

     

    5.7 Brokers’
Fees. No broker, finder or
similar agent has been employed by or on behalf of the Buyer in connection with
this Agreement or the transactions contemplated hereby, and the Buyer has not
entered into any agreement or understanding of any kind with any person or
entity for the payment of any brokerage commission, finder’s fee or any similar
compensation in connection with this Agreement or the transactions contemplated
hereby.

     

    5.8 
Patriot
Act. The Buyer is not on the
List and is not otherwise blocked or banned by any Office rule or any other law
or regulation, including but not limited to the Act or the Order.

     

    5.9  Information
on Buyer.  The Information furnished by Buyer to Seller,
including but not limited to Buyer’s bylaws, a copy of which is attached hereto
as Exhibit D, shall be complete and true and correct in all material
aspects.

     

     

    10

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

    CONFIDENTIAL

    

     

    ARTICLE
VI

    CONDITIONS
PRECEDENT TO THE CLOSING

     

     6.1 Conditions Precedent to
Buyer’s Obligations.  All
obligations of the Buyer under this Agreement are subject to the fulfillment or
satisfaction, prior to or at the Closing, of each of the following conditions
precedent:

     

     (a) Compliance with this
Agreement.  The Seller shall have performed and complied in all
material respects, with all agreements and conditions required by this Agreement
to be performed by it prior to or at the Closing.

     

     (b) No Threatened or Pending
Litigation.  On the Closing Date, no suit, action or other
proceeding, or injunction or final judgment relating thereto, shall be
threatened or be pending before any court or governmental or regulatory
official, body or authority in which it is sought to restrain or prohibit or to
obtain damages or other relief in connection with this Agreement or the
consummation of the transactions contemplated hereby, and no investigation that
might result in any such suit, action or proceeding shall be pending or
threatened.

     

     (c) No Material
Damage.  The Assets shall not have been damaged or destroyed
(other than sales of inventory in the ordinary course of business).

     

     (d) Certificates.   The
Seller shall have furnished the Buyer with such certificates of its officers and
others to evidence compliance with the conditions set forth in this Section 
6.1 as may be
reasonably requested by the Buyer.

     

     (e) Seller
Deliveries.  The Seller shall have delivered all items as
required by Section

2.2.

     

     (f) Accuracy of Representations
and Warranties.  Except for changes contemplated or permitted
by this Agreement, the representations and warranties of the Seller included in
this Agreement, the Schedules to this Agreement and any Exhibit or other
document delivered by the Seller pursuant to this Agreement, shall be true and
correct in all material respects on and as of the Closing with the same effect
as though such representations and warranties are being been made on as of the
Closing Date.  The Buyer in its sole discretion, shall have the right
to waive or defer compliance by the Seller at Closing with any representation or
warranty.

     

     (g) Performance of Covenants and
Agreements.  Each agreement, covenant or obligation of the
Seller to be performed at or before Closing under the terms hereof shall have
been duly performed in all material respects or waived by the Buyer in its sole
and absolute discretion.

     

     (h) No Material Adverse
Change.  Between the Effective Date and the Closing Date, there
has been no material adverse change affecting the Assets or the Mine , its
financial condition or prospects.

     

     

    11

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

       

      CONFIDENTIAL

       

       

    

                                    
(i) Consents.  The
Seller shall have received all consents, authorizations, approvals, filings,
exemptions and waivers from government entities and all material consents,
authorizations, approvals, filings, exemptions and waivers from other persons
necessary or advisable to permit the Seller to consummate the transaction
contemplated hereunder and/or convey the Assets.

     

    The Buyer
may waive any condition specified in this Section  
 6.1 if it
executes a writing so stating at or prior to the Closing.

     

     6.2 Conditions Precedent to
Seller’s Obligations.  All
obligations of the Seller under this Agreement are subject to the fulfillment or
satisfaction, prior to or at the Closing, of each of the following conditions
precedent:

     

     (a) Compliance with this
Agreement.  The Buyer shall have performed and complied in all
material respects, with all agreements and conditions required by this Agreement
to be performed by it prior to or at the Closing.

     

     (b) No Threatened or Pending
Litigation.  On the Closing Date, no suit, action or other
proceeding, or injunction or final judgment relating thereto, shall be
threatened or be pending before any court or governmental or regulatory
official, body or authority in which it is sought to restrain or prohibit or to
obtain damages or other relief in connection with this Agreement or the
consummation of the transactions contemplated hereby, and no investigation that
might result in any such suit, action or proceeding shall be pending or
threatened.

     

     (c) Accuracy of Representations
and Warranties.  The representations, warranties and agreements
made by the Buyer herein shall be true in all material respects on and as of the
Closing Date with the same effect as though such representations and warranties
are being made or given on and as of the Closing Date, except as affected by
transactions contemplated hereby.

     

                                    
(d) Performance of Covenants and
Agreements.  Each agreement, covenant or obligation of the
Buyer to be performed at or before Closing under the terms hereof shall have
been duly performed in all material respects or waived by the Seller in its sole
discretion.

     

     (e) Buyer
Deliveries.  The Buyer shall have delivered all items as
required by Section

2.3.

     

    The
Seller may waive any condition specified in this Section 
6.2 if they
execute a writing so stating at or prior to the Closing.

     

    

     

    ARTICLE
VII

    COVENANTS
OF THE PARTIES

     

     7.1 Confidentiality.  THE EXECUTION AND
DELIVERY OF, AND THE RESPECTIVE TERMS OF, ANY LETTERS OF INTENT, TERM SHEETS AND
OF THIS AGREEMENT BY AND BETWEEN THE PARTIES AND/OR THEIR AFFILIATES ON BEHALF
OF THE PARTIES; THE IDENTITIES OF THE RELEVANT PARTIES, THEIR RESPECTIVE
PRINCIPALS AND PRIOR OWNERS, AS WELL AS THE TITLE HISTORY OF THE ASSETS ARE
CONFIDENTIAL AND SHALL NOT BE DISCLOSED TO ANY THIRD PARTY. IF A PARTY IS
NOTIFIED OR IS OTHERWISE BEING COMPELLED TO DISCLOSE ANY INFORMATION COVERED
UNDER THIS SECTION 7.1, EACH PARTY AGREES WITH RESPECT TO ANY SUCH NOTICE OR
REQUIRED DISCLOSURE TO IMMEDIATELY INFORM THE OTHER PARTY IN WRITING OF THE
CONTENTS OF ANY PROPOSED OR POTENTIAL DISCLOSURE SUFFICIENTLY IN ADVANCE OF ITS
RELEASE TO PERMIT THE OTHER PARTY, IN ITS DISCRETION, TO COMMENT THEREON, FILE
FOR A PROTECTIVE ORDER (WHEREUPON THE OTHER PARTY SHALL ASSIST) AND/OR
SUBSEQUENTLY TO JOINTLY OR SIMULTANEOUSLY MAKE A
DISCLOSURE.   THIS COVENANT SHALL SURVIVE THE CLOSING FOR TEN
(10) YEARS, OR THE LONGEST PERIOD ALLOWED UNDER LAW.

     

     

    12

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

       

      CONFIDENTIAL

       

       

    

     7.2 Due
Diligence. The
Buyer and Seller each respectively warrant to the other that each has
satisfactorily performed its due diligence investigations on the other Party and
has made the independent decision to proceed to closing the transaction
contemplated by this Agreement.

     

     7.3 Access to
Information.  The
Buyer and Seller each respectively warrant to the other that each has been
provided with full material access to such information required by each Party to
satisfactorily conduct its due diligence investigation.

     

    7.4 Capitalization of
Buyer;
Protection of Shares Consideration.  The
Buyer hereby covenants and agrees that on the date the Shares Consideration are
issued, the capitalization of Buyer shall consist of only one class of stock, no
issued or outstanding options, warrants or other rights and Eighteen Million Two
Hundred Fourty Two Thousand (18,242,000) issued and outstanding shares of common
stock comprised of (i) the Shares Consideration; (ii) One Million Nine Hundred
Seventeen Thousand (1,917,000) shares in the name of Black Diamond Realty Trust,
Inc; and (iii) Three Million Five Hundred Seventy Five Thousand (3,575,000)
shares held by thirty two (32) other shareholders. Buyer represents and warrants
and shall re-affirm at Closing to Seller that prior to the Closing, prior to
issuance of the Shares Consideration and the ownership of the Shares vesting in
Seller, Buyer has not and shall not (i) incur any indebtedness or take any
action relating to the incurring of indebtedness; (iii) in any other way dilute
the value of the shares represented by the Shares Consideration, including but
not limited to promising or providing options, warrants or other current or
future related rights; or (iv) made a representations, press releases,
registrations, filings or other commitments to any non-party or the public at
large.

     

     7.5 Reasonable Efforts and
Cooperation; Accomplish Transaction.  The
Seller shall use commercially reasonable efforts to take, or cause to be taken,
all appropriate actions, and to do, or cause to be done, all things necessary,
proper or advisable under applicable laws and to consummate the transactions
contemplated hereunder, including, without limitation, (i) cooperating with the
Buyer in the preparation and filing of all forms, notifications, reports and
information, if any, required or reasonably deemed advisable pursuant to any
law, statute, rule or regulation, including the stock exchange rules; (ii) using
commercially reasonable efforts to obtain all licenses, permits, consents,
approvals, authorizations, qualifications and orders of any government entity or
other persons, (iii) making on a prompt and timely basis all governmental or
regulatory notifications and filings required to be made by it for the
consummation of the transactions contemplated hereunder, (iv) defending all
legal proceedings challenging this Agreement and to lift or rescind any
injunction or restraining order or other order adversely affecting the ability
of the parties to consummate the transactions contemplated hereunder, and (v)
executing and delivering such additional instruments and other documents and
shall take such further actions as may be necessary or appropriate to
effectuate, carry out and comply with all of the terms of this Agreement and the
transactions contemplated hereunder.

     

     

    13

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

       

      CONFIDENTIAL

       

       

                      
7.6 General
Conduct.  Prior
to the Closing Date, the Seller will use the Assets in the normal course and
will use reasonable efforts to preserve the Mine, the Assets and the business
organization of the Seller intact and retain the services of its present
officers, employees and agents to the end that it may retain its goodwill and
preserve its business relationships with customers, suppliers and
others.

    

     

     7.7 Other
Restrictions. In
addition, the Seller covenants that, from the Effective Date until the
Closing:

     

     (a) the
Seller’s business will be conducted only in the ordinary course, and none of its
properties or any of the Assets will be sold or otherwise disposed of,
mortgaged, pledged or otherwise hypothecated, except in the ordinary course of
business;

     

     (b) no
general increase or individual increase will be made in the compensation payable
or to become payable by the Seller to any of its officers, employees or agents,
and no reimbursement of expenses unrelated to the Seller’s business in its
ordinary course shall be made;

     

     (c) no
contract, obligation or commitment will be entered into or assumed by or on
behalf of the Seller, which affects the Assets, extending beyond the Closing,
except normal commitments for the purchase of materials, supplies, licenses and
other assets used in the ordinary course of business, and for commitments to
customers incurred in the ordinary course of business;

     

     (d) no
change, other than those required in the ordinary course of business, will be
made affecting the Seller’s personnel or agents;

     

     (e) the
Seller will maintain its equipment in the same operating condition and repair as
of the Effective Date, using its customary standards of maintenance, reasonable
wear and tear excepted;

     

                                     (f)
the Seller will continue to carry insurance in the forms and in the amounts now
carried;

     

                                   
 (g) upon
prior reasonable notice, the Seller will permit the Buyer to have access to its
books and records with respect to the Assets and its business;

     

     (h) upon
prior reasonable notice, the Seller will make the Assets available for
observation by the Buyer during normal working hours;

     

     

    14

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

       

      CONFIDENTIAL

    

     

     

                                    
(i) the Seller will not enter into or terminate any lease, agreement, contract
or other commitments in connection with the Mine or the Assets or otherwise
cancel or waive any claim or right with respect to the Mine or the Assets;
and

     

     (j) the
Seller will not create or incur any indebtedness, liability or obligation in
connection with the Mine or the Assets, other than in the ordinary
course.

     

     7.8 Further
Restrictions. Between
the Effective Date and the Closing Date, the Seller shall:

     

     (a) Do
nothing, and permit nothing to be done (which is within its control), which will
or might cause the Seller to use the Assets in an improper or illegal
manner;

     

                                   
 (b) Not cause
a default in any the terms, conditions and obligations of any of the contracts
and other agreements of the Seller;

     

     (c) To the
extent permissible by law, maintain its corporate existence in good standing,
and its licenses and permits and comply fully with all laws respecting its
formation, existence, activities and operations;  and

     

                                   
 (d) Seek the
advice of the Buyer on all new material contracts, agreements, commitments or
bids, the hiring and firing of employees, all litigation and arbitration
matters, and such other general matters relevant to the operations of the Mine
and Assets. Nothing herein shall be interpreted to require the Buyer’s consent;
however, it is the intent that the Seller shall review and consult with the
Buyer prior to taking action on any of the foregoing matters and that the Buyer
and the Seller shall work together in a cooperative fashion in connection with
any of the foregoing.

     

    

     

    ARTICLE
VIII

    POST
CLOSING MATTERS AND COVENANTS

     

     8.1 Access to Records and
Persons.  The
Seller and the Buyer agree that, both before and after the Closing, each will
have access, upon prior reasonable written request and at any reasonable time
during normal business hours, to the other’s officers and employees and to its
books and records relating to the assets, properties and operations of the
Seller, and each shall have the right to make copies of such books and records;
provided, however, that such access shall be solely for the purpose of enabling
such party to prepare financial statements and tax returns, and any litigation,
claims, collection or arbitration matters and for such other business purposes
as the Seller and the Buyer may agree.  No party to this Agreement
shall destroy or discard its books and records for a period of five (5) years
after the Closing Date without first providing the other parties adequate
opportunity to retrieve such books and records.

     

     8.2 Water
Rights.  Seller
has informed Buyer and Buyer acknowledges that there is pending an auction for
water rights associated with a well referred to generally as the Santa Claus
Well and that the estimated costs of the Water Rights is Forty Two Thousand
Dollars ($42,000.00).  Payment of the fees, costs and expenses
relating to any of the rights with respect to the Water Requirements or other
water rights shall be the obligation of the Buyer.

     

     

    15

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

       

      CONFIDENTIAL

       

       

                      
8.3 Recording
Fees.  The Buyer shall
pay all fees and charges required in connection with filing and recording the
Deed and Bill of Sale.

    

     

     8.4 Merger in
Agreement.  All other
agreements, covenants, representations and warranties by any party relating to
the Assets, including, but not limited to, any letters of intent or term sheets,
are merged in this Agreement, in the Exhibits and in the other documents
specifically provided for herein. This Agreement shall prevail. No agreements,
covenants, representations or warranties relating to the Assets or the
transaction contemplated hereby that are not expressly set forth in this
Agreement have been made by any party hereto.

     

    

     

    ARTICLE
IX

    TERMINATION

     

                    
9.1 Termination.  This
Agreement may be terminated at any time:

     

     (a) by mutual
consent of the parties;

     

     (b) by either
party if the Closing shall not have occurred in accordance with Section 
2.1, and the
party seeking termination is ready, willing and able to close and not in
material default of its obligations under this Agreement;

     

     (c) by either
party if there shall have been a material misrepresentation or breach of
warranty or a breach of a material covenant on the part of the other party in
the representations and warranties or covenants set forth herein or in any
Schedule, Exhibit or other instrument delivered in connection herewith, which
misrepresentation or breach is not cured prior to the Closing.

     

    

     

    ARTICLE
X

    INDEMNIFICATION

     

                   
 10.1 Indemnification Obligation
of the Seller.   The
Seller shall reimburse, indemnify and hold harmless the Buyer, and its officers,
directors and members, (each such person is referred to herein as a “Seller Indemnified Party”)
against and in respect of:

     

     (a) any and
all actions, suits and claims, or legal, administrative, arbitral, governmental
or other proceedings or investigations against any Seller Indemnified Party,
that relate to the Seller the Mine or the Assets and which result from or arise
out of any event, occurrence, action, inaction or transaction occurring on or
prior to the Closing Date;

     

     (b)any and
all liabilities and obligations of any nature whatsoever of or relating to the
Seller or to the Mine or the Assets on or prior to the Closing, including any
employee severance or similar benefits and liabilities and obligations arising
out of occurrences or actions on or prior to the Closing Date under any
“employee pension benefit plan” or “employee welfare benefit plan” as those
terms are defined in Sections 3(1) and 3(2) of the Employee Retirement Income
Security Act of 1974, as amended, any product liability, warranty or other
claims arising out of or relating to any product manufactured, distributed or
sold by the Seller at any time before Closing, and any claims relating to patent
or trademark infringement, taxes, workers compensation, real estate or
environmental, health or safety matters;

     

     

    16

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

       

      CONFIDENTIAL

       

       

                                      
(c) any and
all damages, losses, settlement payments, deficiencies, liabilities, costs and
expenses suffered, sustained, incurred or required to be paid by any Seller
Indemnified Party because of or that result from, relate to or arise out of the
material untruth, inaccuracy or breach of, or the failure to fulfill, any
representation, warranty, agreement, covenant or statement (i) of the Seller
contained in this Agreement or (ii) contained in any certificate, or schedule,
document or instrument furnished to the Seller Indemnified Party by or on behalf
of the Seller at the Closing;

    

     

                                   
 (d) any and
all actions, suits, claims or legal, administrative, arbitral, governmental or
other proceedings involving the Seller Indemnified Party that relate to
environmental, safety or health matters arising from the Seller’s ownership,
use, operation, or occupancy of any real property or improvements at any time,
except as caused by the Seller Indemnified Party, directly or indirectly, after
the Closing Date; and

     

     (e) any and
all actions, suits, claims, proceedings, assessments, fines, judgments, costs
and other expenses (including, without limitation, reasonable legal fees and
expenses) incident to any of the foregoing or to the enforcement of this Section 
10.1 to the
extent the Seller Indemnified Party prevails in such action.  The
Seller Indemnified Party shall promptly notify the Seller of the existence of
any matter to which the obligations set forth in this paragraph shall apply, and
shall give the Seller reasonable opportunity to defend any claim or litigation
at its own expense, with counsel of its own selection approved by the Seller
Indemnified Party (which shall not be unreasonably withheld); provided that the
Seller Indemnified Party shall also at all times have the right fully to
participate in such defense at its own expense.  If the Seller shall
fail, within a reasonable time after such notice, to defend such claim or
litigation, the Seller Indemnified Party or any successor to the business and
assets of the Seller Indemnified Party shall have the right, but not the
obligation, to defend, compromise or settle any such claim or
litigation.

     

                   
 10.2 Indemnification Obligation
of Buyer.   Except
to the extent the Seller has agreed to be liable to a Buyer Indemnified
Party,  the Buyer will indemnify and hold harmless the Seller, and its
officers, directors, and shareholders, (each such person is referred to herein
as a “Buyer Indemnified
Party”) against and in respect of:

     

     (a) any and
all actions, suits, claims or legal, administrative, arbitration, governmental
or other proceedings or investigations, against any Buyer Indemnified Party that
relate to the Buyer, the Mine or the Assets and which result from or arise out
of any event, occurrence, action, inaction or transaction occurring after the
Closing Date;

     

                                    
(b)any and
all damages, losses, settlement payments, deficiencies, liabilities, costs and
expenses suffered, sustained, incurred or required to be paid by any Buyer
Indemnified Party because of or that result from, relate to or arise out of the
material untruth, inaccuracy or breach of, or the failure to fulfill, any
representation, warranty, agreement, covenant or statement (i) of the Buyer
contained in this Agreement or (ii) contained in any certificate, schedule,
statement, document or instrument furnished to the Buyer Indemnified Party by or
on behalf of the Buyer at the Closing; and

     

     

    17

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

       

      CONFIDENTIAL

       

       

       

    

     (c) any and
all actions, suits, claims, proceedings, investigation, demands, assessments,
audits, fines, judgments, costs and other expenses (including, without
limitation, reasonable legal fees and expenses) incident to any of the foregoing
or to the enforcement of this Section 
10.2 to the
extent the Buyer Indemnified Party prevails in such action.  The Buyer
Indemnified Party shall promptly notify the Buyer of the existence of any matter
to which the obligations set forth in this paragraph shall apply, and shall give
the Buyer reasonable opportunity to defend any claim or litigation at its own
expense, with counsel of its own selection approved by the Buyer Indemnified
Party; provided that the Buyer Indemnified Party shall also at all times have
the right fully to participate in such defense at its own expense.  If
the Buyer shall fail, within a reasonable time after such notice, to defend such
claim or litigation, the Buyer Indemnified Party, or any successor to the
business and assets of the Buyer, shall have the right, but not the obligation,
to defend, compromise or settle any such claim or litigation.

     

                    
10.3 Claims Procedures for
Indemnification.

     

     (a) Notice.  If
following the Closing a party to this Agreement (a “Claimant”) wishes to make a
claim for indemnity (the “Claim”) against another party
(the “Indemnitor”), the
Claimant shall promptly give the Indemnitor written notice of the basis for and
existence of the Claim (“Claim
Notice”), setting forth all specifics of the Claim then known by the
Claimant.

     

     (b) Response.  If
the Claim derives from a third-party claim or action against the Claimant, the
Indemnitor may, within ten (10) days of receiving the Claim Notice, stipulate in
writing that he/she/it is obligated to indemnify for the Claim, and, if
he/she/it does so, may thereafter promptly defend against the Claim in
Claimant’s name and on his/her/it’s behalf, at Indemnitor’s own cost and
expense, with counsel reasonably satisfactory to the Claimant.

     

     (c) Assumption of
Claim.  If Indemnitor assumes the Claim, Claimant may at
his/her/its sole cost and expense retain counsel of its own choosing, and
(subject to negotiation of a joint defense agreement) Indemnitor will share
relevant information with Claimant’s counsel and consult with it as to
disposition of the Claim. However, Indemnitor will retain ultimate control over
the defense or settlement of the Claim (in which the Claimant will cooperate),
with the proviso that Indemnitor may not without Claimant’s consent agree to the
entry of any order for non-monetary relief which will be binding on Claimant,
its assets or operations. Each party as a potential Claimant agrees that it will
make available to any Indemnitor all of his/her/its relevant books and records
and will, at the Indemnitor’s request and expense, reasonably cooperate (and
cause his/her/its officers, directors and employees to cooperate) with the
Indemnitor in the defense of the Claim.

     

     (d) Rejection of
Claim.  If Indemnitor fails to respond affirmatively within ten
(10) days of receipt of a Claim Notice, it will be deemed to have denied
responsibility for the Claim. If Indemnitor denies responsibility for the Claim
(or if it assumes the defense of the Claim, but subsequently fails to pursue the
defense in good faith) the Claimant may assume the defense of the Claim with
counsel of his/her/its own choosing, and the cost of counsel will then be
subject to possible indemnity pursuant to this 
Article
X.  If Claimant assumes the defense of a Claim, it shall
have the sole right and authority to conduct the defense and/or settle the Claim
on such terms as it deems appropriate, but (subject to negotiation of a joint
defense agreement) shall share information concerning the Claim with Indemnitor
or his/her/its counsel.

     

     

    18

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

       

      CONFIDENTIAL

       

       

                                      
(e) Settlement of
Claims.  Unless otherwise agreed to by the parties in writing,
an Indemnitor shall not be obligated to settle a Claim, nor shall a Claimant be
entitled to its settlement (whether from the escrow, by set-off against
contingent payments or directly from the Indemnitor) prior to the Determination
Date.  For purposes of this Agreement, the “Determination Date” shall mean
the first date on which a court order, arbitration award or settlement
stipulation that an event has occurred for which the Claimant is entitled to
indemnity hereunder becomes final, binding and
non-appealable.

    

     

     10.4 Aggregate
Liability.  Notwithstanding
anything to the contrary contained herein, the aggregate liability of any
Indemnitor under this 
Article X shall
not exceed the aggregate of the Purchase Price.

     

     10.5 Exclusivity.  Except
in the case of fraud, willful misconduct or criminal conduct, the remedies
provided in this 
Article X shall
be exclusive of any other rights or remedies which might be available to a party
upon the occurrence of any event described in Section 
9.1, either under
this Agreement or at law or in equity. Nothing contained herein, however, shall
preclude a party from seeking injunctive or other equitable relief under
circumstances where such relief is available, with the proviso that the moving
party shall not be entitled to ancillary relief in the nature of damages or fee
awards unless specifically provided for in this Agreement.

     

    

     

    ARTICLE
XI

    MISCELLANEOUS

     

     11.1 Expenses.  The
parties hereto shall pay their own expenses, including without limitation their
legal fees and expenses, incidental to the preparation of this Agreement, the
carrying out of the provisions of this Agreement and the consummation of the
transactions contemplated hereby.

     

                   
 11.2 Contents of Agreement;
Parties in Interest.  This
Agreement, the Schedules, the Exhibits, and such other documents which may be
delivered pursuant to this Agreement, set forth the entire understanding of the
parties hereto with respect to the transactions contemplated
hereby.  This Agreement shall not be amended or modified except by
written instrument duly executed by each of the parties hereto.  Any
and all previous agreements and understandings between or among the parties
regarding the subject matter hereof, whether written or oral, are superseded by
this Agreement.

     

     11.3 Assignment and Binding
Effect.  All
of the terms and provisions of this Agreement shall be binding upon and inure to
the benefit of and be enforceable by the successors and assigns of the Seller
and the Buyer.

     

                   
 11.4 Waiver.  Any
term or provision of this Agreement may be waived at any time by the party or
parties entitled to the benefit thereof but only by a written instrument duly
executed by such party or parties.

     

                   
 11.5 Notices.  Any
notice, request, demand, waiver, consent, approval or other communication which
is required or permitted hereunder shall be in writing and shall be deemed given
only if delivered personally or sent by overnight mail, postage prepaid, to the
address of the parties set forth below or to such other address as the addressee
may have specified in a notice duly given to the sender as provided
herein.  Such notice, request, demand, waiver, consent, approval or
other communication will be deemed to have been given as of the date so
delivered, facsimiled or mailed.

     

     

    19

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

       

      CONFIDENTIAL

       

       

                                      
If to the Buyer:

    

     

    Sierra
Resource Group, Inc.

     

    6586
Hypoluxo Rd Suite 307

     

    Lake
worth, FL 33467-7678

     

    Fax:
(561)486-3380

     

    

                                    
If to the Seller:

     

    Medina
Property Group, LLC

     

    Address  2665
Executive Park Drive, Suite #2

     

    Weston,
FL 33331

     

    Attention:
Jorge Medina

     

    Fax:
(954) 384-5390

     

                                   
with a copy to:

     

    Silverberg
& Weiss, PA

     

    2665
Executive Park Drive, St 2

     

    Weston,
FL 33331

     

    Attention:  Paul
K. Silverberg

     

    Fax:
(954) 384-5390

     

     11.6 No Benefit to
Others.  The
representations, warranties, covenants and agreements contained in this
Agreement are for the sole benefit of the parties hereto and their successors
and assigns, and they shall not be construed as conferring any rights on any
other persons.

     

     11.7 Schedules and
Exhibits.  All
Exhibits and Schedules referred to herein are intended to be and hereby are
specifically made a part of this Agreement.  If a document or matter
is disclosed in any Exhibit or Schedule of this Agreement, it shall be deemed to
be disclosed for all purposes of this Agreement without the necessity of
specific repetition or cross-reference.

     

                    
11.8 Severability.  Any
provision of this Agreement which is invalid or unenforceable in any
jurisdiction shall be ineffective to the extent of such invalidity or
unenforceability without invalidating or rendering unenforceable the remaining
provisions hereof, and any such invalidity or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

     

     11.9 Cooperation.  Each
party to this Agreement shall cooperate and take such action as may be
reasonably requested by any other party in order to carry out the provisions and
purposes of this Agreement.

     

     

    20

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

       

      CONFIDENTIAL

       

       

       

    

     11.10 Counterparts.  This
Agreement may be executed in any number of counterparts, any party hereto may
execute any such counterpart, each of which when executed and delivered shall be
deemed to be an original and all of which counterparts taken together shall
constitute but one and the same instrument.  This Agreement shall
become binding when one or more counterparts taken together shall been executed
and delivered by the parties.  It shall not be necessary in making
proof of this Agreement or any counterpart hereof to produce or account for any
of the other counterparts.  Signatures delivered by facsimile for this
Agreement or any document delivered at Closing shall be binding to the same
extent as an original.

     

     11.11 Governing Law; Venue.  This
Agreement shall be governed by the laws of the State of Florida, without
reference to its conflict of laws provisions. Proper venue for any dispute
resolution proceeding shall be Broward County, Florida, to which each Party
irrevocably consents to personal jurisdiction. The prevailing party in any
dispute resolution proceeding shall be entitled to an award of its attorney’s
fees.  EACH PARTY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVES ITS
RIGHT TO TRIAL BY JURY IN ANY PROCEEDING INVOLVING THIS AGREEMENT OR THE
UNDERLYING BUSINESS RELATIONSHIP BETWEEN THE PARTIES.

     

     11.12 Time is of the
Essence.  Time
shall be of the essence in this transaction with regard to every date or time
period set forth herein.

     

     11.13 Delivery by
Facsimile. This Agreement and any
signed agreement or instrument entered into in connection herewith or
contemplated hereby, and any amendments hereto or thereto, to the extent signed
and delivered by means of a facsimile machine, shall be treated in all manner
and respects as an original agreement or instrument and shall be considered to
have the same binding legal effects as if it were the original signed version
thereof delivered in person.  At the request of any party hereto or to
any such other agreement or instrument, each other party hereto or thereto shall
re-execute original forms thereof and deliver them to all other
parties.  No party hereto or to any such agreement or instrument shall
raise the use of a facsimile machine to deliver a signature or the fact that any
signature or agreement or instrument was transmitted or communicated through the
use of facsimile machine as a defense to the formation of a contract and each
such party forever waives any such defense.

     

     11.14 Publicity. Neither the Buyer nor
the Seller shall, without the approval of the other, make any press release or
other public announcement concerning the transactions contemplated by this
Agreement prior to Closing, except as and to the extent that any such party
shall be so obligated by law, in which case the other party shall be advised and
the parties shall use their best efforts to cause a mutually agreeable release
or announcement to be issued.

     

     

    [signature
page to follow]

     

     

    21

    
 

    
      
         

      

      
         

        
          

        

      

      
         

        
          CONFIDENTIAL

        

      

    

    IN WITNESS WHEREOF, the
parties hereto have duly executed this Agreement on the date first
written.

     

    BUYER:

     

    SIERRA
RESOURCE GROUP, INC.

    

    

    BY:
/s/ MICHAEL
DOUGHERTY                                                                

    Name:  Michael
Dougherty

    Title:  President
and CFO

     

    SELLER:

     

                                                                                                    
MEDINA PROPERTY GROUP, LLC

     

    By: /s/ JORGE
MEDINA      
                                                      

    Name:   Jorge
Medina

    Title:  Director

     

    

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    22

    

     

    
      
         

      

      
         

        
          

        

      

      
         

        
          CONFIDENTIAL

        

      

    

    EXHIBIT
A

     

    FORM
OF DEED AND BILL OF SALE

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

        
          CONFIDENTIAL

        

      

    

    Schedule
1.1a

    Mining
Claims and Mill Sites

    

    
      	
              Claim
      Name

            	
              Approx
      Area (ha)

            	
              Mohave
      County Recorder’s Book/Page

            	
              AMC
      Number

            	
              Remark

            
	
              Copper
      Hill Mill No. 1

            	
              1.4

            	
              84/399-400

            	
              105792

            	 
      
	
              Copper
      Hill Mill No. 2

            	
              1.4

            	
              84/401-402

            	
              105793

            	 
      
	
              Copper
      Hill Mill No. 3

            	
              1.4

            	
              84/403-404

            	
              105794

            	 
      
	
              Copper
      Hill Mill No. 4

            	
              1.4

            	
              84/405-406

            	
              105795

            	 
      
	
              Copper
      Hill Mill No. 5

            	
              1.4

            	
              84/407-408

            	
              105796

            	 
      
	
              Copper
      Hill Mill No. 6

            	
              1.4

            	
              84/409-410

            	
              105797

            	 
      
	
              Copper
      Hill Mill No. 7

            	
              1.4

            	
              84/411-412

            	
              105798

            	 
      
	
              Copper
      Hill Mill No. 8

            	
              1.4

            	
              84/413-414

            	
              105799

            	 
      
	
              Copper
      Hill Mill No. 10

            	
              1.4

            	
              84/417-418

            	
              105801

            	 
      
	
              Copper
      Hill Mill No. 11

            	
              1.4

            	 
      	
              105802

            	 
      
	
              Copper
      Hill Mill No. 12

            	
              1.4

            	 
      	
              105803

            	 
      
	
              Copper
      Hill Mill No. 13

            	
              1.4

            	
              84/425-426

            	
              105804

            	 
      
	
              Copper
      Hill Mill No. 14

            	
              1.4

            	
              84/425-426

            	
              105805

            	 
      
	
              Copper
      Hill Mill No. 15

            	
              1.4

            	
              84/427-428

            	
              105806

            	 
      
	
              Copper
      Hill No. 2

            	
              5.6

            	
              WW/149-151(Amended
      6A/55-56)

            	
              105785

            	 
      
	
              Hermes

            	
              5.6

            	
              Y/463
      (Amended 6A/63-64)

            	
              105786

            	 
      
	
              Hermes
      No. 2

            	
              5.6

            	
              AA/191-193
      (Amended 6A/63-64)

            	
              105787

            	 
      
	
              Jimtown
      Copper No. 1

            	
              5.5

            	
              6A/57-58

            	
              105788

            	 
      
	
              Valley
      Copper No. 1

            	
              4.2

            	
              6A/50

            	
              105789

            	
              Overstaked

            
	
              Valley
      Copper No. 2

            	
              5.6

            	
              6I/25

            	
              105790

            	 
      
	
              Valley
      Copper No. 3

            	
              5.6

            	
              6C/118-119

            	
              105791

            	 
      
	
              Emerald
      No. 1

            	
              2.8

            	
              2706/457-458

            	
              339597

            	
              Overstaked

            
	
              Emerald
      No. 2

            	
              5.6

            	
              2706/459-460

            	
              339598

            	 
      
	
              FDR

            	
              5.6

            	 
      	
              386617

            	 
      
	
              Subtotal
      Old Claims

            	
              71.3

            	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
              Emerald
      #1A

            	
              5.6

            	
              5282/269-270

            	
              364261

            	 
      
	
              Emerald
      #2A

            	
              5.6

            	
              5282/271

            	
              364262

            	 
      
	
              Emerald
      #3

            	
              5.6

            	
              5282/272

            	
              364263

            	 
      
	
              Emerald
      #4

            	
              5.6

            	
              5282/273

            	
              364264

            	 
      
	
              Emerald
      #5

            	
              5.6

            	
              5282/274

            	
              364265

            	 
      
	
              Emerald
      #6

            	
              5.6

            	
              5282/275

            	
              364266

            	 
      
	
              Emerald
      #7

            	
              5.6

            	
              5282/276

            	
              364267

            	 
      
	
              Emerald
      #8

            	
              5.5

            	
              5282/277

            	
              364268

            	 
      
	
              Emerald
      #9

            	
              5.6

            	
              5282/278

            	
              364269

            	 
      
	
              Emerald
      #10

            	
              2.0

            	
              5282/279

            	
              364270

            	
              Overstaked

            
	
              Emerald
      #11

            	
              4.9

            	
              5282/280

            	
              364271

            	
              Overstaked

            
	
              Emerald
      #12

            	
              0.1

            	
              5282/281

            	
              364272

            	
              Overstaked

            
	
              Emerald
      #13

            	
              5.5

            	
              5282/282

            	
              364273

            	
              Overstaked

            
	
              Emerald
      #14

            	
              2.2

            	
              5282/283

            	
              364274

            	
              Overstaked

            
	
              Emerald
      #15

            	
              5.6

            	
              5282/284

            	
              364275

            	 
      
	
              Emerald
      #16

            	
              4.2

            	
              5282/285

            	
              364276

            	
              Overstaked

            
	
              Emerald
      #17

            	
              5.6

            	
              5282/286

            	
              364277

            	 
      
	
              Emerald
      #18

            	
              2.8

            	
              5282/287

            	
              364278

            	
              Overstaked

            
	
              Emerald
      #19

            	
              5.6

            	
              5282/288

            	
              364279

            	
              Overstaked

            
	
              Emerald
      #20

            	
              2.7

            	
              5282/289

            	
              364280

            	
              Overstaked

            
	
              Emerald
      #21

            	
              5.5

            	
              5349/445-446

            	
              364620

            	
              Overstaked

            
	
              Emerald
      #22

            	
              3.0

            	
              5349/447-448

            	
              364621

            	
              Overstaked

            
	
              Emerald
      #30

            	
              0.1

            	
              5349/463-464

            	
              364622

            	
              Overstaked

            
	
              Emerald
      #19

            	
              5.6

            	
              5282/288

            	
              364279

            	
              Overstaked

            
	
              Emerald
      #31

            	
              5.0

            	
              5349/465-466

            	
              364632

            	
              Overstaked

            
	
              Emerald
      #43

            	
              1.4

            	
              5349/489-490

            	
              364624

            	
              Overstaked

            
	
              Emerald
      #44

            	
              0

            	
              5349/491-492

            	
              364625

            	
              Overstaked

            
	
              Emerald
      #45

            	
              0

            	
              5349/493-494

            	
              364626

            	
              Overstaked

            
	
              Subtotal
      New Claims

            	
              106.9

            	 
      	 
      	 
      
	
              Total

            	
              177.9

            	 
      	 
      	 
      

    

    

    
      
         

      

      
         

        
          

        

      

      
         

        
          CONFIDENTIAL

        

      

    

    Schedule
1.1b

    Machinery, Equipment,
Etc.

    

    
      	 
      	
              SX/EW Equipment and
    Components

            	
              Quantity

            
	 
      	 
      	 
      
	 
      	
              Motor
      load control boxes

            	
              22

            
	 
      	
              Acme
      Transformer 480 to 208/120 volt 112.5 KVA

            	
              1

            
	 
      	
              Acme
      Transformer 480 to 208/120 volt 45 KVA

            	
              1

            
	 
      	
              Ramco
      Metal Bandsaw Model RS90P

            	
              1

            
	 
      	
              110
      volt pallet jack Atlas 4500 pound capacity

            	
              1

            
	 
      	
              Miscellaneous
      Caution and Danger signs

            	
              10

            
	 
      	
              Miscellaneous
      lab parts and pieces

            	
              1

            
	 
      	
              Miscellaneous
      nails, screws, nuts, bolts, and washers

            	
              1

            
	 
      	
              Drill
      press / Ohio Forge Model #510459, Serial #104313

            	
              1

            
	 
      	
              McElroy
      Pit Bull Fusion Welder

            	
              1

            
	 
      	
              Perkin
      Elmer 5000 Atomic Absorption Spectophotometer

            	
              1

            
	 
      	
                   Model
      5000, Serial #127934

            	 
      
	 
      	
              Perkin
      Elmer 500 automatic burner control

            	
              1

            
	 
      	
              Perkin
      Elmer HGA 500 programmer

            	
              1

            
	 
      	
              Perkin
      Elmer Type Zeeman 5000, Serial #5267

            	
              1

            
	 
      	
              IEC
      HN-SII Centrifuge Model HNS, Serial #AC7825

            	
              1

            
	 
      	
              Speedaire
      Compressor 480 volt 3-phase

            	
              1

            
	 
      	
              IngersollRand
      Compressor 480 volt 3-phase Model 3000E30 Serial #790233

            	
              1

            
	 
      	
              Caterpillar
      Forklift Model R80, Serial #49A00924

            	
              1

            
	 
      	
              Greenlee
      Hydraulic Conduit Bender Model 777

            	
              1

            
	 
      	
              30
      KW Generator Set 480 volt 3-phase Model MEP005A M20

            	
              1

            
	 
      	
              480
      volt E7218 Serial #JC79183

            	
              1

            
	 
      	
              220/120
      volt Coleman Generator Set (light plant)

            	
              1

            
	 
      	
              Dayton
      5 KW 220/120 Generator Set Model 4W113 Serial #0884740

            	
              1

            
	 
      	
              Model
      E5222 HI Serial #185B70

            	
              1

            
	 
      	
              Miscellaneous
      stainless steel pumps

            	
              4

            
	 
      	
              HDPE
      4" pipe

            	
              12,000
      feet

            
	 
      	
              HDPE
      3" pipe

            	
              1,000
      feet

            
	 
      	
              HDPE
      6" pipe

            	
              1,000
      feet

            
	 
      	
              Forklift
      man lift tower

            	
              1

            
	 
      	
              Miscellaneous
      office equipment

            	
              1

            
	 
      	
              Crane
      load lifter 5-ton 480 volt 3-phase Serial #17467

            	
              1

            
	 
      	
              Overhead
      crane 10-ton

            	
              1

            
	 
      	
              Storage
      facility

            	
              1

            
	 
      	
              Tank
      and warehouse complex

            	
              1

            
	 
      	
              4/0
      copper wire

            	
              1,500
      feet

            
	 
      	
              2/0
      copper wire

            	
              1,000
      feet

            
	 
      	
              2"
      Honda trash pump

            	
              1

            
	 
      	
              3"
      Tsurumi trash pump with fittings

            	
              1

            
	 
      	
              5,000
      gallon kerosene tank

            	
              1

            
	 
      	
              5,000
      gallon acid tank

            	
              1

            
	 
      	
              250
      gallon used oil tank

            	
              1

            
	 
      	
              500
      gallon diesel tank

            	
              1

            
	 
      	
              Tank
      house, stainless steel lined

            	
              1

            
	 
      	
              3x3
      fiberglass composite pumps (2 of which reconditioned)

            	
              3

            
	 
      	
              Reconditioned
      17 KW Generator

            	
              1

            
	 
      	
              Complete
      total station, level gear

            	
              1

            
	 
      	
              Well
      monitoring equipment

            	
              1

            
	 
      	
              Welding
      trailer

            	
              1

            
	 
      	
              4-inch
      well pump

            	
              1

            
	 
      	
              MIP
      steel strap tensioner

            	
              1

            
	 
      	
              Hydraulic
      crimp tool

            	
              1

            
	 
      	
              Handheld
      pipe threading tool

            	
              1

            
	 
      	
              Electowinning
      cells

            	
              16

            
	 
      	
              Anodes

            	
              Note
      1

            
	 
      	
              Cathodes

            	
              Note
      1

            
	 
      	
              Rectifier
      15,000 amp

            	
              1

            
	 
      	
              Tankhouse
      structure

            	
              1

            
	 
      	
              Mixer
      tanks 9' x 9' x 7.5' SS

            	
              3

            
	 
      	
              SX
      steel structures

            	
              3

            

    

     

    Note
1:  includes all Anodes and Cathodes related to installed
Electrowinning Cells.

     

     

    

     

    
      
         

      

      
         

        
          

        

      

      
         

        
          CONFIDENTIAL

        

      

    

    Exhibit
B

    

    State
of Arizona & Federal Permits

    

    

    
      	
              ·  

            	
              Aquifer Protection
      Permit:  Issued June 9, 1993 by Arizona Department of
      Environmental Quality, (ADEQ).  A new application for this
      permit will likely be required.

            

    

    

    
      	
              ·  

            	
              Air Quality
      Permit:  ADEQ determined on March 28, 2005 that no Air
      Quality Permit is required for the 2500 tons per day run-of-mine operation
      using 16 electro-winning cells.

            

    

    

    
      	
              ·  

            	
              Plan of Operations:
      Revision issued October 2, 1992 by Bureau of Land Management,
      (BLM).  The Plan of Operations was modified on June 28, 2005 and
      submitted to the BLM.  Currently, the Plan of Operations is
      being modified and will be submitted post-Closing. A reclamation bond will
      need to be posted.

            

    

    

    
      	
              ·  

            	
              National Pollutant Discharge
      Elimination System Permit: Arizona Department of Environmental
      Quality, (ADEQ) or US Environmental Protection Agency.  A
      Multi-Sector General Permit was issued in 2000 with a five year life. The
      Permit expired in 2005.  A renewal application will be
      required.

            

    

     

    

     

     

    

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
      
         

      

      
         

        
          

        

      

      
         

        
          CONFIDENTIAL

        

      

    

    Exhibit
C

    

    Water
Rights

    

    

    
      	
              ·  

            	
              Seller
      currently owns no water rights applicable to operation of the mine and/or
      processing facilities of the
Property.

            

    

    

    
      	
              ·  

            	
              Past
      operations have utilized water from three wells located to the north of
      the Property.  These wells are owned b y the BLM, which has
      acknowledged that the associated water may be used for mining-related
      activities on the Property.  The BLM has granted a right-of-way
      from these wells to the Property.

            

    

    

    
      	
              ·  

            	
              Seller
      has applied for the transfer of a pipeline right-of-way from the site of
      the Santa Claus Well to the
Property.

            

    

    

    
      	
              ·  

            	
              Seller
      has paid the survey fees for the water
rights.

            

    

    

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

        
          CONFIDENTIAL

        

      

    

    Exhibit
D

    

    Bylaws
of BuyerExhibit
10.1

 

RESTRICTIVE
COVENANTS AND GENERAL RELEASE AGREEMENT

 

THIS
RESTRICTIVE COVENANTS AND GENERAL RELEASE AGREEMENT (the “Agreement”) is
entered into on April 23, 2010 between Joseph J. Buttigieg III (hereafter “Executive”)
and Comerica Incorporated, a Delaware corporation, for the benefit of Comerica
Incorporated, Comerica Bank, all of their past, present and future
subsidiaries, affiliates, predecessors, and successors, and all of their
subsidiaries and affiliates, (hereafter all individually and collectively
referred to as “Comerica”). This Agreement sets forth the complete
understanding and agreement between Comerica and Executive relating to
Executive’s employment and cessation of employment with Comerica.  This Agreement shall be effective as of the
Effective Date (as defined in Paragraph 18 below), and in the event the
Effective Date does not occur, this Agreement shall be void ab initio.

 

Accordingly, Executive and Comerica hereby
agree as follows:

 

1.                                      Separation from
Employment.  Executive
and Comerica agree that Executive’s employment with Comerica shall terminate
effective May 4, 2010 (the “Separation Date”).

 

2.                                      Public
Announcement.  Comerica
shall issue an announcement of Executive’s departure from Comerica by May 4,
2010.

 

3.                                      Resignation from
Boards and Committees. 
Effective before or as of May 4, 2010, Executive shall resign from
any and all positions he holds as an officer, member or manager of Comerica and
any and all positions he holds as a member of a Comerica board or committee.

 

4.                                      Return of
Comerica Property.  Executive
shall return to Comerica, no later than the close of business on the Separation
Date, all property of Comerica including, but

 

Page
1 of 20

 

not limited to, automobile, customer information, personal computer,
laptop, Blackberry, keys, identification cards, access cards, corporate credit
cards, and files or other documents received, compiled or generated by or for
Executive in connection with or by virtue of his employment with Comerica.  Executive’s automobile shall be returned to
Comerica at a location designated by Comerica.

 

5.                                      Compensation
and Benefits.  In
consideration for the release of claims set forth in Paragraph 6, the covenants
set forth in Paragraphs 7, 8, 9, 10 and 11 and such other promises of Executive
as set forth in this Agreement, Comerica agrees that it shall pay or provide to
Executive the following payments and benefits:

 

a.                                      Prior to the
Separation Date, so long as Executive continues to be employed by Comerica,
Comerica shall continue to pay Executive his regular base salary at the rate in
effect as of immediately prior to the delivery of this Agreement, in accordance
with the payroll practices of Comerica applicable to similarly situated executives.

 

b.                                      Prior to the
Separation Date, so long as Executive continues to be employed by Comerica,
Executive shall continue to be eligible to participate in Comerica’s health,
welfare benefit and retirement plans in which Executive participated
immediately prior to the delivery of this Agreement, as such plans may be in
effect from time to time.

 

c.                                       Following the
Separation Date, Executive shall be eligible to elect continuation coverage
under Comerica’s healthcare benefit plans in accordance with Section 4980B
(“COBRA”) of the Internal Revenue Code of 1986, as amended (the “Code”) and the
terms of the applicable plan.

 

Page
2 of 20

 

Assuming Executive elects COBRA continuation
coverage under Comerica’s medical benefit plan, Executive shall be eligible to
continue medical benefit plan coverage under COBRA for the period of coverage
under COBRA, with the cost of such coverage to be paid by Executive pursuant to
the terms generally applicable to retired employees of Comerica as in effect
from time to time.  Executive’s
conversion rights under other insurance programs following the Separation Date
shall be determined in accordance with the terms of the applicable plan.

 

d.                                      Comerica shall
reimburse Executive for reasonable and documented business expenses incurred by
Executive on or before the Separation Date, in accordance with the terms of
Comerica’s policy in effect as of the Separation Date.

 

e.                                       Executive will
receive, pursuant to the terms of the 1999 Amended and Restated Comerica
Incorporated Deferred Compensation Plan (“DCP”) and the 1999 Comerica
Incorporated Amended and Restated Common Stock Deferred Incentive Award Plan (“DIAP”),
distributions from his accounts, if any, under those plans, payable in
accordance with his prior elections, the terms of the DCP and the DIAP, and
applicable laws including, but not limited to, Section 409A of the
Code.  Such distributions will be subject
to all applicable taxes, FICA and other withholding and deductions required by
law and will be made pursuant to the distribution schedule followed under the
administrative procedures of the DCP and the DIAP, and applicable laws
including, but not limited to, Section 409A of the Code.

 

Page
3 of 20

 

f.                                        Stock options
granted to Executive under the Comerica Incorporated 2006 Amended and Restated
Long-Term Incentive Plan (the “LT Incentive Plan”) shall be governed by the
terms of the LT Incentive Plan and the respective grant agreements evidencing
the grant of such options.

 

g.                                       At the meeting
of the Comerica Incorporated Governance, Compensation and Nominating Committee
(the “Committee”) scheduled for April 27 2010, Comerica will recommend to
the Committee that Executive’s restricted shares of Comerica Incorporated
common stock that are not vested as of the Separation Date shall fully vest as
of the Separation Date, subject to the execution and delivery by Executive of
this Agreement at least eight (8) calendar days prior to the Separation
Date and his non-revocation of this Agreement and such other terms and
conditions of the LT Incentive Plan and the grant agreements evidencing the
grant of such restricted stock, including Executive’s obligation to satisfy all
tax withholding obligations.

 

h.                                      To the extent
provided by the Amended and Restated Bylaws of Comerica Incorporated, Article V,
Section 12, Comerica agrees to defend, indemnify and hold Executive
harmless from and against all liability for actions taken by him within the
scope of his responsibilities so long as his conduct in any such matter was
consistent with the standards contained in such Article V, Section12.

 

6.                                      Release of
Claims.  In consideration for the
payments and other benefits provided to Executive by this Agreement, including those
described above in Paragraph 5,

 

Page
4 of 20

 

certain of which Executive is not otherwise
entitled, and the sufficiency of which Executive acknowledges, Executive
further agrees, as follows:

 

a.                                      For himself and
for all people acting on his behalf (such as, but not limited to, his family,
heirs, executors, administrators, personal representatives, agents and/or legal
representatives), Executive agrees to waive any and all claims or grievances
which he may have against Comerica and Comerica’s past or present stockholders,
directors, officers, trustees, agents, representatives, attorneys, employees,
in their individual or representative capacities, and any and all employee
benefit plans and their respective past, current and future trustees and
administrators (hereafter, collectively, the “Released Parties”).  By his signature hereto, Executive, for
himself and for all people acting on his behalf, forever and fully releases and
discharges any and all of the Released Parties from any and all claims, causes
of action, contracts, grievances, liabilities, debts, judgments, and demands,
including but not limited to any claims for attorney fees, that Executive ever
had, now has, or may have by reason of or arising in whole or in part out of
any event, act or omission occurring on or prior to the Effective Date of this
Agreement.  This release includes, but is
not limited to, any and all claims of any nature that relate to Executive’s
employment by or termination of employment with Comerica. 
This release includes, but is not limited to: claims of promissory
estoppel, forced resignation, constructive discharge, libel, slander,
deprivation of due process, wrongful or retaliatory discharge,

 

Page
5 of 20

 

discharge in violation of
public policy, breach of contract, breach of implied contract, infliction of
emotional distress, detrimental reliance, invasion of privacy, negligence,
malicious prosecution, false imprisonment, fraud, assault and battery,
interference with contractual or other relationships, or any other claim under
common law.  This release also
specifically includes, but is not limited to: any and all claims under any federal,
state, and/or local law, regulation, or order prohibiting discrimination,
including the Age Discrimination in
Employment Act, the Americans With Disabilities Act, Title VII of
the Civil Rights Act of 1964, the Texas Commission on Human Rights Act, the
Public Employment Discrimination Act, the Texas Free Enterprise and Enterprise
Act of 1938, the Texas Payday Law, the Texas Minimum Wage Act of 1970, together
with any and all claims under the Fair Credit Reporting Act, the Uniform
Services Employment and Reemployment Rights Act, the Employee Retirement
Security Income Security Act, the Family Medical Leave Act, or any other
federal, state, and or local law, regulation, or order relating to employment,
as they all have been or may be amended. 
It is Executive’s intent, by executing this Agreement, to release all
claims as specified above to the maximum extent permitted by law, whether said
claims are presently known or unknown.

 

b.                                      To the maximum
extent permitted by law, Executive agrees that he has not filed, nor will he
ever file, a lawsuit asserting any claims which are released by this Agreement,
or to accept any benefit from any lawsuit

 

Page
6 of 20

 

which might be filed by another person or
government entity based in whole or in part on any event, act, or omission
which is the subject of Executive’s release.

 

c.                                       Executive
understands and agrees that, other than the payments and benefits expressly
enumerated in this Agreement, he is not entitled to receive any other
compensation, incentive, wage, vacation or other paid time off, leave, benefit
or other payment from Comerica, other than any vested benefits to which he may
be entitled under the Comerica Incorporated Retirement Plan, the Comerica
Incorporated Preferred Savings [401(k)] Plan, the Amended and Restated Benefit
Equalization Plan for Employees of Comerica Incorporated, the 1999 Comerica
Incorporated Amended and Restated Deferred Compensation Plan, the 1999 Comerica
Incorporated Amended and Restated Common Stock Deferred Incentive Award Plan,
and the Comerica Incorporated Amended and Restated Employee Stock Purchase
Plan, in each case in accordance with the terms of such plans and any valid
elections thereunder.  In addition, prior
to November 23, 2004, a portion of the Executive’s incentive bonus
attributable to the three-year performance period under the MIP was
automatically invested in common stock that is non-transferrable until he
terminates employment with Comerica (sometimes referred to as the non-deferred
3-year award program or plan) (the “Non-Deferred Account”).  Executive shall be entitled to receive the
shares in his Non-Deferred Account following his Separation Date.  Executive

 

Page
7 of 20

 

agrees that he is not entitled to any benefits
under any other program or plan of Comerica.

 

d.                                      The provisions
of this Paragraph 6 do not apply to any claim Executive may have for
representation and indemnification pursuant to Paragraph 5(h) above.

 

7.                                      Disclosure of
Information.  Executive
hereby acknowledges that he has been and will continue to have access and
exposure to confidential and proprietary information of Comerica and trade
secrets, including details of the business or affairs of Comerica, its
subsidiaries or affiliates (including, without limitation, planning information
and strategies, information and/or strategies for the prosecution and/or
defense of any matter that is now or may be in the future the subject of any
lawsuit, dispute, controversy, claim and/or regulatory action, financial
information, organizational structure, strategic planning, sales and marketing
strategies, distribution methods, data processing and other systems, personnel
policies and compensation plans and arrangements); any customer or advertising
lists; any information, knowledge or data of a technical nature (including,
without limitation, methods, know-how, processes, discoveries, machines, or
research projects); any information, knowledge or data relating to future
developments (including without limitation, tax planning research and
development, future marketing or merchandising); or any and all other trade
secrets (collectively, “Confidential Information”).  Confidential Information does not include (i) information
already known or independently developed by Executive from public sources or
information in the public domain, (ii)

 

Page
8 of 20

 

information in the public domain through no wrongful
act of the recipient, or (iii) information received by Executive from a
third party who was free to disclose it. 
Executive understands that Comerica’s Confidential Information,
including its trade secrets, is highly sensitive information relating to the
business of Comerica and of Comerica’s clients, which has had its secrecy
protected both internally and externally and which is a competitive asset of
Comerica.  Executive hereby agrees that
he shall not use, commercialize or disclose such Confidential Information or
information as to the existence and/or provisions of this Agreement to any
person or entity, except to such individuals as approved by Comerica in writing
prior to any such disclosure or as otherwise required by law.  Executive’s obligations pursuant to this
Paragraph shall survive the termination of this Agreement.

 

8.                                      Cooperation.  Executive agrees that in the event of a legal
proceeding (whether threatened or pending, whether investigative,
administrative, or judicial) involving matters of which he has knowledge by
virtue of the positions Executive held during his employment at Comerica,
Executive shall disclose to Comerica and its counsel any facts known to
Executive which might be relevant to said legal proceeding and shall cooperate
fully with Comerica and its counsel so as to enable Comerica to present any
claim or defense which it may have relating to such matters.  For purposes of this paragraph, “cooperate
fully” shall mean that Executive shall make himself reasonably available for
interviews, depositions, and testimony as directed by Comerica or its counsel,
and shall further execute truthful statements, declarations, or affidavits
pertaining to such matters at the request of Comerica or its counsel.  Executive shall be reimbursed for any

 

Page
9 of 20

 

reasonable out of pocket expenses that he may
incur as a result of his compliance with this Paragraph, subject to Comerica’s
expense reimbursement policies.  Nothing
in this Paragraph shall be construed as requiring Executive to be non-truthful
or as preventing him from disclosing information that would be considered
adverse to Comerica or requiring him to do anything in violation of any
applicable law, rule or regulation.

 

9.                                      Non-Disparagement.

 

a.                                      Executive
agrees that he will make no disparaging remarks about Comerica, its parent
and/or affiliates, their respective businesses, products or services, any
current or former director, the Chairman and Chief Executive Officer, or any of
his direct reports, or their policies, procedures or practices (including but
not limited to, business, lending, or credit policies, procedures or practices)
to any third parties, including but not limited to, customers or prospective
customers of Comerica.  It is agreed and
understood that nothing in this Paragraph 9(a) shall be construed to
preclude Executive from (1) testifying truthfully pursuant to subpoena or
as otherwise required by law, (2) engaging in any action consistent with
public policy, or (3) cooperating in any internal or government
investigation to the extent such cooperation is mandated by policy, regulation
or statute.  Executive agrees that he
shall provide notice to Comerica in advance of any such cooperation or
testimony, unless such notice is prohibited. 
It is further understood that nothing in this Paragraph 9(a) shall
be construed to preclude Executive from discharging his legal

 

Page
10 of 20

 

obligations to any administrative or
regulatory agencies or auditing entities.

 

b.                                      Comerica agrees
that the Chairman and Chief Executive Officer and his direct reports will not
make any disparaging remarks regarding Executive or Executive’s performance while
employed at Comerica and will respond to any inquiries regarding Executive’s
separation with the statement that Executive retired from Comerica. It is
agreed and understood that nothing in this Paragraph 9(b) shall be
construed to preclude those covered from (1) testifying truthfully
pursuant to subpoena or as otherwise required by law, (2) engaging in any
action consistent with public policy, or (3) cooperating in any internal
or government investigation to the extent such cooperation is mandated by policy,
regulation or statute.  It is further
agreed and understood that nothing in this Paragraph shall be construed to
preclude Comerica from discharging its legal obligations to its Boards of
Directors, any administrative or regulatory agencies or auditing entities.

 

10.                               Non-Competition and Non-Solicitation.  Prior to the
Separation Date and for the period ending two (2) years after the
execution of this Agreement, Executive agrees that he shall not, directly or
indirectly, for his own account or in conjunction with any other person or
entity, whether as an employee, shareholder, partner, investor, principal,
agent, representative, proprietor, consultant, or in any other capacity, do any
of the following:

 

a.                                      Enter into or
engage in any business in competition with the businesses conducted by Comerica
in the states of Michigan, California, Texas,

 

Page
11 of 20

 

Arizona or Florida.  For purposes of this Paragraph 10(a),
Executive shall be “in competition with Comerica” if (1) Executive accepts
employment or serves as an agent, employee, director or consultant to, a
competitor of Comerica, or (2) Executive acquires or has an interest
(direct or indirect) in any firm, corporation, partnership or other entity engaged
in a business that is competitive with Comerica.  The mere ownership of less than 1% debt
and/or equity interest in a competing entity whose stock is publicly held shall
not be considered as having a prohibited interest in a competitor, and neither shall
the mere ownership of less than 5% debt and/or equity interest in a competing
entity whose stock is not publicly held. 
For purposes of this Paragraph 10(a), any commercial bank, savings and
loan association, securities broker or dealer, or other business or financial
institution that offers any major service offered by Comerica as of the
Separation Date, and which conducts business in Michigan, California, Texas,
Arizona or Florida, shall be deemed a competitor;

 

b.                                      Request or
advise any individual or company that is a customer of Comerica to withdraw,
curtail, or cancel any such customer’s actual or prospective business with
Comerica;

 

c.                                       Solicit, induce
or attempt to induce any customers of Comerica with whom Executive had
professional contact or with respect to whom he was privy to any information
during the two (2) year period prior to the Separation Date to patronize
any business that is competitive with Comerica; and

 

Page
12 of 20

 

d.                                      Solicit or induce
or attempt to solicit or induce any employee, agent or consultant of Comerica
to terminate his or her employment, representation, or other relationship with
Comerica.

 

During the two-year period following the
execution of this Agreement, Executive may request an exception to this
provision.  The request must be made in
writing, describe the scope and nature of the engagement, and directed to
Comerica’s Chief Legal Officer.  Any
exception will be at Comerica’s sole discretion.

 

11.                               Representation.  Executive represents and warrants:

 

a.                                      Executive has
no knowledge of or is not otherwise aware of, has no evidence of and/or has not
reported to any person, organization and/or governmental or regulatory
authority any of the following: (i) any violation by the Released Parties
of any securities and/or other laws, rules and regulations applicable to
Comerica, (ii) any breach by Comerica and/or by any Released Party of any
fiduciary duty or obligation to any person, organization and/or governmental or
regulatory authority, and/or (iii) any violation by any Released Party of
Comerica’s Code of Business Conduct and Ethics for Employees, Senior Financial
Officer Code of Ethics, or Code of Business Conduct and Ethics for Members of
the Board of Directors, each as amended and/or restated.

 

b.                                      Executive has a
special relationship of trust and confidence with Comerica and its customers
and clients, which creates a high risk and opportunity for Executive to
misappropriate the relationship and goodwill existing between Comerica and such
entities and individuals.  Executive
further

 

Page
13 of 20

 

acknowledges that, at the outset of his
employment with Comerica and throughout his employment with Comerica, Executive
received, and continues to receive and/or have access to Comerica and Comerica’s
clients’ proprietary Confidential Information, specialized training and
goodwill that he would not otherwise have but for his employment with
Comerica.  Therefore, Executive agrees
that it is fair and reasonable for Comerica to take steps to protect itself
from the risk of misappropriation of Comerica’s trade secrets including but not
limited to its business relationships, goodwill, proprietary information,
specialized training, and other Confidential Information.  Executive agrees he has carefully considered
the nature and extent of the restrictions placed upon him and the remedies
conferred upon Comerica in this Agreement and has had the opportunity to retain
legal counsel at his own expense to review this Agreement.  Executive agrees the restrictions are
reasonable in time and geographic scope and are necessary to protect the
legitimate business interests of Comerica and its customers and do not confer a
benefit on Comerica that is out of proportion to the restrictions placed on
Executive.

 

12.                               Dispute
Resolution.

 

a.                                      Early Resolution Conference.  This Agreement is understood to
be clear and enforceable as written and is executed by both parties on that
basis.  However, should Executive later
challenge any provision as unclear, unenforceable, or inapplicable to any
competitive or other activity that Executive intends to engage in, Executive
will first notify Comerica in

 

Page
14 of 20

 

writing and meet with a Comerica
representative and a neutral mediator (if either party elects to retain one at
its own expense) to discuss resolution of any disputes between the
parties.  Executive will provide this
notification at least fourteen (14) calendar days before he engages in any
activity that could reasonably and foreseeably fall within a questioned
restriction.  Executive’s failure to
comply with this early resolution conference requirement (the “Resolution
Requirement”) shall waive his right to challenge the reasonable scope, clarity,
applicability or enforceability of this Agreement and its restrictions at a
later time.  Comerica will respond to
Executive’s notification required by this Paragraph within fourteen (14)
calendar days following receipt of the written notification.  Comerica’s failure to respond with an
acceptance or denial within the fourteen (14) calendar day period, unless a
party has invoked the mediation process described above, shall waive its right
to challenge Executive’s activity that could reasonably fall within a
questioned restriction at a later time. 
All rights of both parties will be preserved if the Resolution
Requirement is complied with even if no agreement is reached in the conference.

 

b.                                  Injunctive
Relief.  In the event of a breach or
threatened breach of Paragraphs 6, 7, 8, 9 or 10 of
this Agreement, Executive agrees that Comerica shall be entitled to injunctive
relief in a Texas court of appropriate jurisdiction to remedy any such breach
or threatened breach, and Executive acknowledges that monetary damages alone
would not be

 

Page
15 of 20

 

an adequate remedy to compensate Comerica for
the loss of goodwill and other harm to its reputation and business.

 

c.                                          Arbitration.  Except as provided in Paragraph 12(a) hereof,
in the event of any dispute between any of the Released Parties and Executive
relating to Executive’s employment with or separation from employment with
Comerica, the terms of and the parties’ entry into this Agreement and/or breach
of this Agreement, Executive and Comerica agree to submit the dispute,
including any claims of discrimination under federal, state or local law by
Executive, to final and binding arbitration pursuant to the provisions of Texas
statutory law and/or the Federal Arbitration Act, 9 U.S.C. Sec. 1 et seq.  The arbitration shall be conducted by the
National Center for Dispute Settlement or a similar organization mutually
agreed to by the parties.  The
arbitration shall be before a single, neutral arbitrator selected by the
parties.

 

In the event the parties cannot agree on the
selection of a single arbitrator, the following process to select an
arbitration panel will be followed:  (1) when
a party reasonably believes that there will be no agreement on the selection of
a single, neutral arbitrator, that party may notify the other at the address
provided in Paragraph 17 of this Agreement of the fact an impasse has been
reached, (2) within five (5) days of receipt of such notice, each
party must provide the other with the name of its respective panel member, and (3) within
ten (10) days of their selection, the parties’

 

Page
16 of 20

 

panel members must agree on the third,
neutral member of the arbitration panel.

 

The arbitrator, or arbitration panel (“panel”)
if one is utilized, shall have the power to enter any award that could be
entered by a judge of a trial court of the State of Texas, and only such power,
and shall follow the law. 
Notwithstanding the foregoing, the arbitrator or panel may award
reasonable attorney fees and costs to the prevailing party.  In the event the arbitrator or panel does not
follow the law, the arbitrator or panel will have exceeded the scope of his or
her authority and the parties may, at their option, file a motion to vacate the
award in court.  Except as otherwise
provided herein, the parties agree to abide by and perform any award rendered
by the arbitrator.  The arbitrator or
panel shall issue the award in writing and therein state the essential findings
and conclusions on which the award is based. 
Judgment on the award may be entered in any court having jurisdiction
thereof.  In no event shall the demand
for arbitration be made after the date when institution of legal or equitable
proceedings based on such claim, dispute or other matter in question would be
barred by the applicable statute of limitations.  This agreement to arbitrate shall be
specifically enforceable under the prevailing arbitration law, and shall be in
accordance with the procedures established for arbitration in the Texas Rules of
Civil Procedure.  Unless otherwise
prohibited by law, each party shall bear its own costs, including, but not
limited to, any costs

 

Page
17 of 20

 

associated with the appointment of its panel
member in the event an arbitration panel is constituted, in any such
arbitration and shall share equally any fees or other expenses charged by the
neutral arbitrator for services rendered. 
The parties understand that by
agreeing to arbitrate their disputes, they are giving up their right to have
their disputes heard in a court of law and, if applicable, by a jury.

 

13.          Entire Agreement; TARP
Provisions.  This
Agreement supersedes all prior and contemporaneous relationships, agreements,
understandings, negotiations and discussions, whether oral or written, of the
parties with respect to the subject matter hereof, to the extent they conflict
herewith, other than the Waiver signed as of November 14, 2008 by
Executive in connection with Comerica’s  participation
in the United States Department of the Treasury’s Troubled Assets Relief
Program (“TARP”) Capital Purchase Program (the “Waiver”),  and
the Capital Purchase Program Senior Executive Officer Consent to Comerica’s
amendments to compensation, bonus, incentive and other benefit plans,
arrangements and agreements in connection with Comerica’s  participation
in the United States Department of the Treasury’s TARP Capital Purchase
Program, signed by Executive as of November 14, 2008 (the “Consent”), and,
except as otherwise set forth herein, there are no other agreements between the
parties with respect to the subject matter hereof, other than the Waiver and
the Consent.  No amendment, supplement,
modification or waiver of this Agreement shall be implied or be binding unless
in writing and signed by the party against which such amendment, supplement,
modification or waiver is asserted.  No
waiver of

 

Page
18 of 20

 

any of the provisions of this Agreement shall be deemed or shall
constitute a waiver of any other provisions hereof (whether or not similar),
nor shall such waiver constitute a continuing waiver, unless otherwise therein
provided; provided, however, that the Waiver shall
not be affected by this sentence.

 

14.                               Governing Law.  This Agreement shall be interpreted and
governed by the laws of the State of Texas, except as to matters specifically
governed by federal statute or regulation.

 

15.                               Severability.          The provisions
of this Agreement are severable, and if any part or portion of it is found to
be unenforceable, the other portions shall remain fully valid and enforceable.

 

16.                               Withholding.  Comerica may withhold from any amounts
payable under this Agreement such Federal, state or local taxes as shall be
required to be withheld pursuant to any applicable law or regulation.

 

17.                               Notice.  Any notices relating to or arising out of
this Agreement shall be sent by registered mail, return receipt requested, and
shall be addressed as follows:

 

To Comerica:

 

Jon W. Bilstrom,

EVP, Governance, Regulatory
Relations and Legal Affairs, and Corporate Secretary

1717 Main Street, MC 6504

Dallas, Texas 75201

 

To Executive:

 

Joseph J. Buttigieg III

At the address on record with Comerica as of the Separation Date

 

18.                               Consideration
Period, Revocation Period and Effective Date.  Executive confirms that he had at least
twenty-one (21) days to consider this Agreement and that he

 

Page
19 of 20

 

had an opportunity to
consult with an attorney during said consideration period and prior to signing
this Agreement.  For an additional period
of seven (7) days following the signing of this Agreement, Executive
understands he may revoke his signature by delivery of a written notice of
revocation to Terri L. Renshaw, Senior Vice President and General Counsel,
Litigation and Corporate Operations, 1717 Main Street, 4th Floor, MC 6506, Dallas, Texas, 75201.  The revocation must be delivered to this
address before 5:00 p.m. CDST on or before the 7th day following the signing of this
Agreement.  This Agreement shall become
effective and enforceable on the eighth (8th) day following its execution by Executive, provided
he does not exercise his right of revocation as described above (the “Effective
Date”). If Executive fails to sign this Agreement on or before the 21st day from the date set forth below or revokes
his signature, this Agreement will be without force or effect, and Executive
shall not be entitled to any of the rights and benefits hereunder.

 

Delivered to Executive for his consideration this 9th day of April 2010.

 

	
   

  	
   

  
	
   

  	
  Comerica
  Incorporated

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jon W. Bilstrom

  
	
   

  	
  Name:

  	
  Jon
  W. Bilstrom

  
	
   

  	
  Title:

  	
  Executive
  Vice President

  
	
   

  	
  Date:

  	
  April 23, 2010

  

 

I,
JOSEPH J. BUTTIGIEG III, HAVING READ THE FOREGOING SEPARATION AND RESTRICTIVE
COVENANTS AGREEMENT, UNDERSTANDING ITS CONTENT AND HAVING HAD AN OPPORTUNITY TO
CONSULT WITH COUNSEL OF MY CHOICE, DO HEREBY KNOWINGLY AND VOLUNTARILY SIGN THIS
AGREEMENT, THEREBY AGREEING TO THE TERMS THEREOF AND WAIVING AND RELEASING MY
CLAIMS, ON APRIL 23, 2010.

 

	
   

  	
  /s/
  Joseph J. Buttigieg III

  
	
   

  	
  Joseph
  J. Buttigieg III

  

 

Page
20 of 20

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00172-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00172-of-00352.parquet"}]]