Document:

a50614397ex10_1.htm

Exhibit 10.1

 

TRANSITION AGREEMENT AND RELEASE

This Transition Agreement and Release (“Agreement and Release”) is made by and between Andrew Varga (hereinafter “Varga”) and Papa John’s International, Inc., on behalf of itself and its affiliates and subsidiaries (hereinafter “Papa John’s”).

 

W I T N E S S E T H:

 

WHEREAS, Varga signed an Employment Agreement with Papa John’s on March 5, 2012 providing for execution of a release upon termination; and

 

WHEREAS, Varga is leaving Papa John’s employment effective April 15, 2013; and

 

WHEREAS, the parties wish to clarify and memorialize certain agreements made between them with respect to Varga’s employment and the orderly transition of his duties and responsibilities; and

 

WHEREAS, Varga acknowledges that he was given this agreement on April 16, 2013, and informed that he has twenty-one (21) days to consider it and he has voluntarily agreed to its terms.

 

NOW, THEREFORE, in consideration of the foregoing premises and the terms stated herein, it is mutually agreed between the parties as follows:

 

	
    1.  

	
Varga’s employment with Papa John’s will end on April 19, 2013 (the “Separation Date”).  His last day in the office is April 12, 2013.

 

	
    2.  

	
The parties agree that, effective as of April 12, 2013, Varga is resigning as an officer of Papa John’s and its subsidiaries and affiliates (including joint ventures), including all committee, officer, board of directors and other similar positions.

 

	
    3.  

	
In connection with the execution of this Agreement and Release, in consideration of the role that Varga has and will continue to undertake in the transition of his duties and responsibilities, and as specific consideration for the release and waiver contained in Paragraph 5 below, Papa John’s shall provide Varga the following benefits to which he would not otherwise be entitled:

 

  

  

  

 

	
       (a)  

	
For the period between the execution of this Agreement and the Separation Date (the “Continuation Period”), Papa John’s shall pay Varga his regular salary at the rate of pay currently in effect, less all applicable withholdings.

 

	
       (b)  

	
During the Continuation Period, Varga shall receive from Papa John’s the continuation of all health and life benefits, as applicable, and as described in the Papa John’s plan and any amendments or modifications to that plan during the Continuation Period.  Varga shall continue to pay his portion of the costs for those benefits through payroll deductions, as applicable.

 

	
       (c)  

	
During the Continuation Period and as a condition precedent to receiving the payment referenced in Paragraph (d) below, Varga agrees to cooperate fully with Papa John’s to successfully transition his duties and responsibilities and to ensure a productive working relationship in the future.

 

	
       (d)  

	
Should Varga execute this Agreement prior to the Separation Date, Varga agrees he will execute a “Supplemental Release” upon the Separation Date.  Within thirty (30) days after the Separation Date, and provided that Varga has signed this Release and the Supplemental Release, if applicable, and the revocation periods in the releases have expired without a revocation, Papa John’s shall pay Varga a lump sum of $175,000 (less all applicable withholdings).

 

	
       (e)  

	
All other benefits cease effective on the Separation Date; provided, however, any amounts held in trust in the Papa John’s 401(k) Plan and Deferred Compensation Plan for the benefit of Varga shall continue to be held in trust for Varga within the parameters of the existing plan.  In addition, any stock options or other equity awards held by Varga that are vested as of the Separation Date shall remain exercisable pursuant to the terms of the equity plan under which such options or equity awards were issued.

 

 

  

2

  

 

	
    4.  

	
Papa John’s shall pay Varga for any credited unused vacation to which he is entitled under Papa John’s policy in Varga’s final paycheck.

 

	
    5.  

	
Varga, for himself and his heirs, personal representatives, successors and assigns, does hereby release and forever discharge Papa John’s, its successors, assigns, agents, representatives, employees, officers, directors, trustees, and shareholders, insurers, reinsurers and any affiliated corporations or entities of any type or nature, from any and all causes of action, claims, demands, suits, damages, sums of money, attorneys’ fees, and/or judgments (hereinafter “damages”) arising at any time prior to and through the date of the execution of this Agreement and Release and Separation Date which might have been asserted against Papa John’s, its successors, assigns, agents, representatives, employees, officers, directors, trustees, shareholders, insurers, reinsurers and any affiliated subsidiaries, corporations or related entities (the “Released Parties”) by Varga, or on his behalf, including but not limited to any which may have been asserted against Papa John’s or the other Released Parties by or on behalf of Varga relating to his employment by Papa John’s or the separation of his employment, including vacation pay, profit sharing plans, stock option plans, retirement plans or any benefit plans of any type or nature, and any claims for discrimination of any type under any federal, state or local law or regulation, including, but not limited to, claims under the Age Discrimination in Employment Act of 1967, as amended, Title VII of the Civil Rights Act of 1964 and the Civil Rights Act of 1991, and the Family and Medical Leave Act, and the Americans with Disabilities Act, except for any claims arising under this Agreement and Release.

 

	
    6.  

	
Varga agrees not to file or otherwise institute any claim, demand or lawsuit seeking damages or other relief and not to otherwise assert any claims, demands or entitlements that are lawfully released herein.  Varga further hereby irrevocably and unconditionally waives any and all rights to recover any relief or damages concerning the claims, demands or entitlements that are lawfully released herein.  Varga represents and warrants that he has not previously filed or joined in any such claims, demands or entitlements against Papa John’s or the other Released Parties and that he will indemnify and hold them harmless from all liabilities, claims, demands, costs, expenses and/or attorneys’ fees incurred as a result of any such claims, demands or lawsuits.

 

  

3

  

 

	
    7.  

	
Varga understands and agrees that should any amount of the payment made to him by Papa John’s under this Agreement and Release be deemed taxable, Varga is solely liable for any taxes of whatever kind due by reason of this payment of money, and should any state or federal tax authority determine that any or all of such payment constitutes income subject to federal or state taxes, including but not limited to income tax, or social security laws, then Varga agrees to indemnify and hold harmless Papa John’s and the other Released Parties for any and all liability of whatever kind incurred by it or them on this payment, including, but not limited to taxes, levies, assessments, fines, interest, and penalties.

 

	
    8.  

	
Varga acknowledges that, during the course of his employment, he was exposed to information confidential and proprietary to Papa John’s.  Varga agrees that, unless otherwise required by law, he will not disclose to any third party any information that is confidential or proprietary to Papa John’s, and that by the Separation Date he will return to Papa John’s all documents containing any confidential or proprietary information relating to Papa John’s, including all electronic files and any other mediums whatsoever.  In the event Varga is notified he may be required by law to disclose any such information to a third party, Varga agrees to contact the office of the SVP, Legal Affairs at least three (3) business days prior to the date of the proposed disclosure so that Papa John’s may take any steps it deems necessary to evaluate and protect against such disclosure.

 

 

  

4

  

 

	
    9.  

	
Varga agrees to abide by the terms of the attached March 5, 2012 Employment Agreement, November 23, 2011 Confidentiality, Non-Disparagement and Dispute Resolution Agreement and September 16, 2009 Confidentiality and Non-Competition Agreement, which are reiterated and incorporated by reference herein.

 

	
    10.  

	
Varga further warrants that on or before the Separation Date, he will return any and all property of Papa John’s, including but not limited to any computer, key card, office keys, corporate credit card, and telephone credit card to the company; the parties agree that Varga may keep his Blackberry, subject to the removal of all Company information at the Separation Date.  Varga also warrants that, not later than thirty (30) days after the Separation Date, he will submit any outstanding expense reports to the office of Chief Financial Officer for reimbursement.  Varga agrees that Papa John’s may deduct any outstanding advances or other amounts owed to Papa John’s from the amounts referenced in Paragraph 3 of this Agreement and Release.

 

	
    11.  

	
Varga agrees he will not voluntarily participate or testify in any proceeding adverse to Papa John’s, except to the extent required by law.  Varga agrees he will notify Papa John’s within three (3) business days by contacting the office of the SVP, Legal Affairs in response to any order, subpoena, deposition notice, or any other discovery request issued by or through a state or federal court or governmental agency or any other authority having the power to issue such an order, subpoena, deposition notice, or discovery request.  Varga agrees not to disparage or make derogatory comments about Papa John’s, its successors, assigns, agents, representatives, employees, officers, directors, trustees, shareholders, insurers, reinsurers and any affiliated corporations or entities, at any time during Varga’s continued employment or following the Separation Date.

 

 

  

5

  

 

	
    12.  

	
Papa John’s and its representatives agree not to publish, discuss or release any information to any person concerning Varga’s employment by Papa John’s or the separation of his employment, except as required by law, and except that upon request for employment information, Papa John’s will verify Varga’s employment dates and position held.

 

	
    13.  

	
The parties agree that any disputes arising out of this Agreement and Release or otherwise, including whether any provision of this Agreement and Release has been breached, shall be resolved solely through confidential mediation or confidential binding arbitration.  Any dispute shall initially be submitted to a neutral mediator, mutually selected by the parties with the costs of such mediation paid for by Papa John’s, for confidential resolution.  If such dispute is not satisfactorily resolved via mediation or the parties cannot agree upon a mediator, then it shall be submitted for confidential resolution by a neutral arbitrator, to be mutually selected by the parties from a list provided by the American Arbitration Association, with the costs of such arbitration to be divided equally between the parties and with such resolution to be made pursuant to that organization’s then-current Employment (or other applicable) Arbitration Rules and Mediation Procedures.

 

	
    14.  

	
The parties further agree that, in the event a dispute arising out of this Agreement and Release or other dispute is submitted to mediation and/or arbitration, they will keep confidential both the fact that mediation/arbitration has or will take place, and all facts related thereto. Any settlement reached via mediation or award of an arbitrator shall be final and binding on the parties to this Agreement. The only exception to the mediation/arbitration requirement shall be that, in the event of an actual, threatened or anticipatory breach of the Confidentiality or Non-Disparagement provisions of this Agreement and Release, either party shall be entitled to seek injunctive relief from a court of competent jurisdiction to prevent or obtain immediate relief related to such breach.

 

 

  

6

  

 

	
    15.  

	
The parties declare each has carefully read this Agreement and Release.  Both parties understand they have the right to and should consult with an attorney prior to executing this Agreement and Release.  With such understanding or consultation with counsel, both parties agree to the terms of this Agreement and Release for purposes of making a full and final adjustment and resolution of the matters contained herein.

 

	
    16.  

	
It is understood and agreed this Agreement and Release does not and shall not constitute an admission by either party of any violation of any law or right of the other party.

 

	
    17.  

	
This Agreement and Release constitutes the entire understanding and agreement between the parties as to the subject matter hereof and the terms of this Agreement and Release may not be waived, modified or supplemented except in writing by all parties hereto.  The parties further acknowledge that this Agreement and Release may be revoked within seven (7) days from the execution hereof and that the Agreement and Release shall not become effective or enforceable until after the revocation period has ended without revocation.  Varga understands that, if he elects to exercise this revocation right, this Agreement and Release shall be voided in its entirety at the election of Papa John’s and Papa John’s shall be relieved of all obligations to make any payments under this Agreement and Release, provide the other benefits and take the other actions under Section 3(d), (e), (f) and (g) hereof.  Varga may, if he wishes, elect to sign this Agreement and Release prior to the expiration of the twenty one-day consideration period, and Varga agrees that if he elects to do so, his election is made freely and voluntarily and after having an opportunity to consult counsel.  Varga agrees that any revocation shall be submitted to Papa John’s in writing to the attention of the Office of the SVP, Legal Affairs.

 

 

  

7

  

 

	
    18.  

	
Should this Agreement and Release be held invalid or unenforceable (in whole or in part) with respect to any particular claims or circumstances, it shall remain fully valid and enforceable as to all other claims and circumstances.

 

	
    19.  

	
This Agreement and Release shall be construed in accordance with the laws of the Commonwealth of Kentucky.

 

	
    20.  

	
Notwithstanding anything else in this Agreement and Release, the parties agree that this Agreement and Release does not constitute a waiver by the party of any rights or claims that may occur and arise after the date on which Varga executes this Agreement and Release.

 

	
    21.  

	
All notices, demands, requests, or other communications which may be or are required to be given or made by any party to the other party pursuant to this Agreement and Release shall be in writing and shall be hand delivered, mailed by first-class registered or certified mail, return receipt requested, postage prepaid, delivered by overnight air courier, or transmitted by facsimile transmission addressed as follows:

 

 

	 	If to the Company:
	 	Attn: SVP, Legal Affairs
	 	Facsimile Number: (502) 261-4234
	 	 
	 	If to Varga:
	 	8906 Ayrshire Ave
	 	Louisville, KY 40222

Each party may designate by notice in writing a new address to which any notice, demand, request or communication may thereafter be so given, served or sent.  Each notice, demand, request, or communication that shall be given or made in the manner described above shall be deemed sufficiently given or made for all purposes at such time as it is delivered to the addressee (with the return receipt, the delivery receipt, confirmation of facsimile transmission or the affidavit of messenger being deemed conclusive but not exclusive evidence of such delivery) or at such time as delivery is refused by the addressee upon presentation.

 

  

8

  

 

	
    22.  

	
The parties have not relied on any representations, promises, or agreements of any kind made to them in connection with this Agreement, except for those set forth in this Agreement.

 

	
    23.  

	
The parties acknowledge and agree that none of the benefits provided to Varga hereunder are deferred compensation for purposes of Section 409A of the Internal Revenue Code of 1986, as amended (“Code”), and that none of the benefits provided to Varga hereunder shall be subject to the six-month delay described in Code Section 409A(a)(2)(B).

 

	
    24.  

	
The parties agree that this Agreement and Release may not be modified, altered or changed except by a written agreement signed by the parties hereto.  If any provision of this Agreement and Release is held to be invalid, the remaining provisions shall remain in full force and effect.

 

	
    25.  

	
Varga agrees to make himself reasonably available to Papa John’s relating to his prior services as an officer and employee of Papa John’s including, but not limited to, assisting the Company and any of its affiliates and acting as a witness in connection with any pending or threatened litigation or other legal proceeding with respect to which the Company or such affiliates reasonably determines his participation to be necessary, and responding to questions and inquiries with respect to such prior services in connection with any such proceedings.

 

 

  

9

  

 

	
    26.  

	
This Agreement and Release shall not be valid unless signed by both parties. This Agreement and Release may be executed in counterparts, each of which shall be deemed to be an original and all of which together shall constitute the Agreement and Release; provided, however, that this Agreement and Release shall not become effective until completely conforming counterparts have been signed and delivered by each of the parties hereto.  The parties agree that this Agreement and Release shall be binding upon and inure to the benefit of Varga’s assigns, heirs, executors and administrators as well as Papa John’s, its parent, subsidiaries and affiliates and each of its and their respective officers, directors, employees, agents, predecessors, successors, purchasers, assigns, and representatives.

 

	 	 	 	 	 
	
/s/A. M. Varga

	 	April 19, 2013	 
	
Signature of Andrew Varga  

	 	Date	 
	
 

	 	 	 

	 	 	 	 	 
	
Andrew M. Varga

	 	 	
 

	 
	
Name Printed

	 	 	
 

	 
	
 

	 	 	
 

	 

Papa John’s International, Inc.

	 	 	 	 	 
	
/s/ Tony Thompson

	 	April 19, 2013 	 
	
Papa John’s Representative

	 	Date	 
	
 

	 	 	
 

	 

	 	 	 	 	 
	
Tony Thompson

	 	Executive Vice President, Chief Operating Officer and President, PJ Food Service	 
	
Papa John’s Representative Name Printed  

	 	 	 
	
 

	 	 	
 

	 

10Exhibit 10.1

                               PURCHASE AGREEMENT

BY THIS  PURCHASE  AGREEMENT  effective  as of the 19th day of April,  2013 (the
"Effective Date"),

BY AND BETWEEN
                  Monfort Ventures Ltd.,
                  60 Market Square
                  Belize City, Belize,
                  ("Vendor")

AND

                  Nevada  Tungsten  Holdings Ltd., with a resident agent address
                  at 1000 East William Street,  Suite 204,  Carson City,  Nevada
                  89701 ("Nevada Tungsten")

WHEREAS Vendor, in consideration of the agreements set forth herein, has granted
certain rights to Nevada Tungsten under the following terms and conditions:

1. DEFINITIONS

a.  DEFINITIONS  - The words and phrases used in this  Agreement  shall have the
following meanings:

     (1) The  "Property"  shall include those certain  unpatented  placer mining
claims situated in Custer County, Idaho, more particularly  described in Exhibit
A attached hereto.

     (2)  "Shares"  means  fully paid and  non-assessable  common  shares in the
capital of  Tungsten  Corp.,  the  parent  company  of Nevada  Tungsten,  issued
pursuant to exemptions from registration and prospectus  requirements  contained
in the  United  States  Securities  Act of 1933 and the  rules  and  regulations
promulgated  thereunder,  which Shares shall  contain such  restrictive  legends
regarding applicable hold periods as required by such securities laws.

b.  TRANSFER OF TITLE - Upon Nevada  Tungsten's  completion  of its  obligations
under  subsection  (a) of Section 2, Vendor shall transfer title of the Property
to Nevada Tungsten.

2. CONSIDERATION TO VENDOR

a. STOCK TRANSFER - As  consideration,  the Purchase Price shall be the issuance
of 3,000,000  Shares,  subject to such conditions as may be imposed by the rules
and regulations of the United States Securities and Exchange Commission.
<PAGE>
                                     Page 2

b. CONDITIONS FOR TRANSFER OF TITLE AND SUBSEQUENT LIMITATIONS - At such time as
the Nevada  Tungsten has completed the stock  transfers  specified in subsection
(a) of this Section 2, the Property shall be  transferred to Nevada  Tungsten by
Quitclaim Deed.

3. OBLIGATIONS OF NEVADA TUNGSTEN

a. INDEMNITY - Nevada  Tungsten shall  indemnify  Vendor against and hold Vendor
harmless  from any suit,  claim,  judgment or demand  whatsoever  arising out of
negligence  on the part of Nevada  Tungsten in the exercise of any of its rights
pursuant  to  this  Agreement,   provided  that  if  Vendor  or  any  person  or
instrumentality  acting on Vendor's behalf shall have been a contributing  cause
to the  event  giving  rise to such  suit,  claim,  demand or  judgment,  Nevada
Tungsten's  obligation to indemnify  Vendor shall not exceed  Nevada  Tungsten's
liability  under the laws  applicable  to the event  giving  rise to such  suit,
claim,  demand or judgment.  Likewise,  Vendor shall similarly  indemnify Nevada
Tungstenfrom  claims  arising  out  of its  negligence  in  the  conduct  of its
activities prior to the transfer of title.

b. PAYMENT OF TAXES - Nevada  Tungsten  shall pay all taxes  levied  against the
Property and any  improvements  on the Property.  Nevada Tungsten shall have the
right to  contest,  in the courts or  otherwise,  the  validity or amount of any
taxes or assessments, before it shall be required to pay the same.

4. TITLE MATTERS

a.  REPRESENTATIONS  AND WARRANTIES  RELATED TO THE PROPERTY - Vendor represents
and  warrants  to  Nevada  Tungsten  that:  (1)  the  unpatented  mining  claims
constituting the Property have been located and appropriate  record made thereof
in  compliance  with the laws of the United  States and the laws of the State of
Idaho,  (2) the claim  maintenance fees have been paid for the year beginning on
September 1 prior to the effective date of this Agreement and appropriate record
made  thereof;  (3) there is no claim of adverse  mineral  rights  affecting the
Property,  (4) subject to the paramount  interest of the United  States,  Vendor
controls  the full  undivided  possessory  title to the  Property,  (5) Vendor's
possessory   right  to  the  Property  is  free  and  clear  of  all  liens  and
encumbrances.

b. JOINT  REPRESENTATIONS  - Nevada  Tungsten and Vendor  jointly  represent and
warrant that each company:  (1) have the full right, power and capacity to enter
into  this  Agreement  upon the terms set  forth  herein,  (2) is  incorporated,
organized and in good standing under the laws of the state of its  incorporation
and is  qualified  to do business  and is in good  standing in their  respective
States; (3) has obtained all necessary  corporate and shareholder  approvals and
no further action on the part of its directors or  shareholders  is necessary or
desirable  to make  this  Agreement  valid  and  binding;  and (4)  neither  the
execution and delivery of this  Agreement  nor any of the agreement  referred to
herein or contemplated  hereby, nor the consummation of the transactions  hereby
contemplated  conflict with any agreement to which it is a party and by which it
is currently bound.
<PAGE>
                                     Page 3

c. TITLE DOCUMENTS;  DATA - Upon written request of Nevada Tungsten at any time,
Vendor shall promptly  deliver to Nevada  Tungsten copies of all title documents
affecting  the  Property  that  Vendor  has in its  possession.  If Vendor is in
possession or knows the  whereabouts  of technical  data  concerning the mineral
estate of the Property,  Vendor shall,  at Nevada  Tungsten's  expense,  furnish
copies of such  materials to Nevada  Tungsten or notify  Nevada  Tungsten of the
location of such information.

d. TITLE  DEFECTS,  DEFENSE AND  PROTECTION - Nevada  Tungsten  has,  during its
initial due diligence  examination of the Property prior to the Effective  Date,
examined and approved  Vendor's  title to the  Property.  If title to any of the
Property is contested or questioned by any person, entity or governmental agency
Vendor and Nevada  Tungsten  shall  undertake such actions as may be required to
perfect, defend or initiate litigation to protect such title.

e. CHANGE OF LAW - If the law of the United  States  concerning  acquisition  of
mineral  rights  on  federally  managed  lands  is  repealed,  amended,  or  new
legislation is enacted, Nevada Tungsten shall have the right, at its expense, to
take whatever  action it deems  appropriate  to preserve a right to explore for,
develop, and mine minerals from the Property.  If Nevada Tungsten elects to take
any action under the terms of this  subsection,  it shall first notify Vendor in
writing  setting  forth the nature of the  proposed  action  and an  explanation
thereof.  Vendor agrees to cooperate with Nevada  Tungsten and execute  whatever
documents are deemed  necessary by Nevada  Tungsten to  accomplish  such action.
Nothing in this  subsection  shall impose any obligation upon Nevada Tungsten to
take any  action,  or  diminish  the  right of  Vendor  to take  action it deems
appropriate;  provided,  however,  that if Vendor chooses to take any action, it
will first inform Nevada Tungsten of the nature of such contemplated action.

5. ROYALTY

a. Upon commencement of "Commercial  Production" the Property will be subject to
a Net Smelter  Returns  (NSR)  royalty of 3.00% as further  defined on Exhibit B
attached hereto.  "Commercial Production" means the operation of the Property or
any portion thereof as a producing mine and the production of minerals  products
therefrom  (excluding  bulk  sampling,  pilot  plant,  initial  tune-up  or test
operations).

b. At anytime after the execution of this Agreement, Nevada Tungsten can acquire
one percent  (1.00%) of the NSR royalty  from Vendor for  $500,000.  Thereafter,
Nevada  Tungsten can acquire another one percent (1.00%) of the NSR royalty from
Vendor $1,000,000.

6. SHARE MATTERS

Vendor  represents  and warrants to Nevada  Tungsten that it is an  "accredited"
investor as that term is defined in Rule 501 of Regulation D  promulgated  under
<PAGE>
                                     Page 4

the United States  Securities  Act of 1933,  as amended,  and  acknowledges  and
agrees  that the  Shares  will be  issued  in  accordance  with  all  applicable
securities  laws and will be subject to hold periods and  restrictions on resale
in accordance with applicable securities laws and it is Vendor's  responsibility
to determine  what those hold  periods and  restrictions  are before  selling or
otherwise transferring any Shares.

7. NOTICES

Any notice or communication  required or permitted  hereunder shall be effective
when  personally   delivered  or  deposited,   postage  prepaid,   certified  or
registered,  in the United States mail to the addresses  specified above. Either
party may, by notice to the other given as aforesaid, change its mailing address
for future notices.

8. CONFIDENTIALITY

Each of the parties agrees that all information obtained under the terms of this
Agreement  will not be publicly  disclosed or used other than for the activities
contemplated hereunder except as required by law or by the rules and regulations
of any regulatory  authority or stock exchange having jurisdiction or with prior
written  consent  of the  other  party,  such  consent  not  to be  unreasonably
withheld.

9. MEMORANDUM

The parties to this  Agreement  agree to execute and record a Memorandum of this
Agreement in a form  sufficient to constitute  record notice to third parties of
the rights granted  hereunder,  which may be recorded in the official records of
Lincoln County, Nevada.

10. CONSTRUCTION

a.  GOVERNING LAW - This  Agreement  shall be construed by the internal laws but
not the laws of conflict of the State of Nevada.

b. ENTIRE  AGREEMENT - All of the agreements and  understandings  of the parties
with  reference  to the  Property  are  embodied  in this  Agreement,  and  this
Agreement supersedes all prior agreements or understandings between the parties.

c. NO IMPLIED  COVENANTS - It is  expressly  agreed that no implied  covenant or
condition  whatsoever  shall be read into this  Agreement  relating  to any time
frame  as the  measure  of  diligence  for any  operations  of  Nevada  Tungsten
hereunder.

11. FURTHER ASSURANCES

The parties  agree to perform all acts and  execute  all  documents  that may be
necessary to carry out the spirit and intent of this Agreement.
<PAGE>
                                     Page 5

SIGNED, effective as of the date recited above.

Nevada Tungsten Holdings Ltd.

Per:
     --------------------------------------------
     Authorized Signatory

Vendor

Per:
     --------------------------------------------
     Authorized Signatory
<PAGE>
                                     Page 6

                                    EXHIBIT A
                            (THE "PROPERTY" DEFINED)

<PAGE>
                                     Page 7

                                    EXHIBIT B

                        DEFINITION OF NET SMELTER RETURNS

1. For the purposes of this Agreement, the term "Net Smelter Returns" shall mean
the net  proceeds  actually  paid to  Nevada  Tungsten  from the sale by  Nevada
Tungsten of minerals mined and removed from the Property, after deduction of the
following:

(a) smelting costs,  treatment  charges and penalties  including,  but not being
limited to, metal  losses,  penalties for  impurities  and charges for refining,
selling and  handling by the  smelter,  refinery or other  purchaser;  provided,
however,  in the  case of  leaching  operations  or  other  solution  mining  or
beneficiation  techniques,  where the metal  being  treated is  precipitated  or
otherwise directly derived from such leach solution, all processing and recovery
costs  incurred  by Nevada  Tungsten,  beyond the point at which the metal being
treated is in solution, shall be considered as treatment charges;

(b) costs of  handling,  transporting  and  insuring  ores,  minerals  and other
materials  or  concentrates  from the Property or from a  concentrator,  whether
situated  on or off the  Property,  to a  smelter,  refinery  or other  place of
treatment; and

(c) ad valorem taxes and taxes based upon production, but not income taxes.

2. In the event Nevada  Tungsten  commingles  minerals  from the  Property  with
minerals from other properties,  Nevada Tungsten shall establish procedures,  in
accordance with sound mining and metallurgical  techniques,  for determining the
proportional  amount of the total  recoverable  metal content in the  commingled
minerals  attributable  to the input from each of the  properties by calculating
the same on a metallurgical  basis,  in accordance  with sampling  schedules and
mining  efficiency  experience,  so  that  production  royalties  applicable  to
minerals produced from the Property may reasonably be determined

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