Document:

Red Mountain Resources, Inc. 10-Q

Exhibit 10.3

 

Amendment
No. 1 to

 UNSECURED
SUBORDINATED PROMISSORY NOTE

 OF

 RED
MOUNTAIN RESOURCES, INC.

 

 

This Amendment No.
1 (the “Amendment”) to that certain Unsecured Subordinated Promissory Note, dated as of February 6, 2013, is
entered into by and among Red Mountain Resources, Inc. (“Borrower”), Hyman Belzberg (“HB”),
William Belzberg (“WB”) and Caddo Management, Inc. (“Caddo,” and collectively with HB and
WB, “Lender”).

 

WHEREAS, that certain
Unsecured Subordinated Promissory Note, dated as of February 6, 2013, in the aggregate principal amount of $0.5 million, issued
by Borrower in favor of Lender (the “Original Note”) matures on July 31, 2013 (the “Maturity Date”).

  

WHEREAS, the Borrower
and Lender desire to extend the Maturity Date.

 

NOW, THEREFORE, in
consideration of the foregoing and the respective representations, warranties, covenants and agreements set forth in this Amendment
and intending to be legally bound hereby, the parties hereto agree as follows:

 

1.                 
Amendment. Section 5 of the Original Note is hereby amended and restated in its entirety to read as follows:

 

“5.
Maturity. To the extent not sooner due and payable in accordance with this Promissory Note, the Obligations shall
be due and payable on August 31, 2013 (the “Maturity Date”). Upon payment of the Obligations hereunder
in full by or on behalf of Borrower, this Promissory Note shall be deemed paid in full.”

 

2.Counterparts.
This Amendment may be executed in one or more counterparts, each of which will be deemed to be an original copy of this Amendment,
and all of which, when taken together, shall constitute one and the same agreement. The exchange of copies of this Amendment and
of signature pages by email or facsimile transmission shall constitute effective execution and delivery of this Amendment as to
the parties and may be used in lieu of the original Amendment for all purposes. Signatures of the parties transmitted by email
or facsimile shall be deemed to be their original signatures for all purposes.

 

* * * * *

    	 

    	 

    

 

 

IN WITNESS
WHEREOF, the parties hereto have executed this Amendment as of July 30, 2013.

 

	 	 	BORROWER
	 	 	 
	 	 	RED MOUNTAIN RESOURCES, INC.
	 	 	 
	 	 	 
	 	 	 
	 	 	By:	
        /s/Alan
W. Barksdale 

	 	 	 	Alan W. Barksdale, President & CEO
	 	 	 	 
	 	 	 	 
	 	 	 
		 	LENDER
	 	 	 
	 	 	 
	 	 	 /s/
Hyman Belzberg 

	 	 	Hyman Belzberg
	 	 	 
	 	 	 
	 	 	/s/ William Belzberg
	 	 	William Belzberg
	 	 	 
	 	 	 
	 	 	 
	 	 	CADDO MANAGEMENT, INC.
	 	 	 
	 	 	 
	 	 	By:	/s/ Randolph M.S. Kallenberg 
	 	 	Name:	 Randolph M.S. Kallenberg
	 	 	Title:	 Vice President —
Explorationproperty Acq Agmnt - FINAL (00330435).DOCX

MINERAL PROPERTY ACQUISITION AGREEMENT

THIS AGREEMENT is made the  15th day of  November, 2013. 

BETWEEN: 

Joshua Gold Resources Inc., of #201, 2368 Lakeshore Road W, Oakville, ON L6L 1H5  (the "Purchaser") 

AND Between: 

2254022 Ontario Ltd., of 70-C Mountjoy Street North, Suite 106 Timmins, Ontario, P4N 4V6, an Ontario, Canada, Corporation  (the “Vendor") 

WHEREAS: 

A. 

The Vendor is the beneficial and registered owner of the mineral interests described and illustrated in Schedule "A" attached hereto (the "Property"), located in the Province of Ontario; 

B. 

The Vendor has agreed to sell to the Purchaser and the Purchaser has agreed to purchase the Property in accordance with the terms and conditions hereinafter set forth 

NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the issuance of one million, two hundred and fifty thousand  Common Shares (1,250,000 Shares) of Joshua Gold Resources Inc (JSHG:OTCQB), (the “Shares”), and for other good and valuable consideration, the sufficiency whereof the Vendor hereby acknowledges, 

THE PARTIES HERETO AGREE AS FOLLOWS: 

1. Representations And Warranties Of The Vendor 

1.1 The Vendor hereby represents and warrants to the Purchaser as follows: 

(a) 

It is, and at the time of transfer to the Purchaser will be, the beneficial owner(s) of a 100% undivided interest in and to the Property free and clear of all liens, charges and claims of others, and no taxes or rentals are or will be due in respect of any thereof; 

(b) 

to the best of the Vendor's knowledge, information and belief, the Property, as described in Schedule "A", is owned by the Vendor free and clear of all liens, charges and encumbrances ;   

(c) 

there is no adverse claim or challenge to the ownership of or title to the Property nor to the knowledge of the Vendor is there any basis therefor, and there are no outstanding agreements or options to acquire or purchase his interest in the Property or any portion thereof,; 

(d) 

the Vendor is the sole beneficial owner of the Property;

(e) 

the mineral claims comprising the Property have been properly staked and recorded and are in good standing in the mining division in which they were recorded; and 

(f) 

neither the Vendor nor, to the best of their knowledge, any predecessor in interest or title of the Vendor to the Property has done anything whereby the Property may be encumbered. 

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1.1

Representations and Warranties

The representations and warranties contained in subsection 1.1 are provided for the exclusive benefit of the Purchaser, and a breach of any one or more thereof may be waived by the Purchaser, in whole or in part, at any time without prejudice to its rights in respect of any other breach of the same or any other representation or warranty; and the representations and warranties contained in that subsection shall survive the execution hereof. 

2. Acquisition Of The Property

2.1 The Vendor, subject to the terms hereof, hereby agrees to sell to the Purchaser and to transfer to the Purchaser, a 100% undivided interest in and to the Property free from all liens, mortgages, charges, pledges, encumbrances or other burdens with all rights now or thereafter attached thereto. If the Purchaser should notify the Vendor in writing of any claims or burdens against the Property then, after ascertaining the validity thereof, the Vendor shall, within a reasonable period of time after notification thereof by the Purchaser, attend to the discharge of such claims at his or their own expense, or will indemnify the Purchaser against the same and will provide such security as may reasonably be requested by the Purchaser to secure such indemnity. 

2.2 The Purchaser agrees to purchase the Property and issue one million two hundred and fifty thousand (1,250,000) common  shares of Joshua Gold Resources Inc (JSHG:OTCQB).

3. Registration And Transfer Of Property 

3.1 Concurrently with the execution of this Agreement, the Vendor shall deliver to the Purchaser such transfer documents (hereinafter referred to as the "Property Transfer Documents") as the Purchaser or its counsel may reasonably deem necessary to assign, transfer and assure to the Purchaser, good, safe, holding and marketable title to 100% of the Property. 

4. Transfers 

The Purchaser may at any time sell, transfer or otherwise dispose of all or any portion of its interest in and to the Property.

5. Notice 

5.1 Each notice, demand or other communication required or permitted to be given under this Agreement shall be in writing and shall be delivered or faxed to such party at the address for such party specified above. The date of receipt of such notice, demand or other communication shall be the date of delivery thereof if delivered or, if given by telecopier, shall be deemed conclusively to be the next business day.  Either party may at any time and from time to time notify the other party in writing of a change of address and the new address to which notice shall be given to it thereafter until further change. 

5.2 Either party may at any time and from time to time notify the other party in writing of a change of address and the new address to which notice shall be given to it thereafter until further change. 

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6. General 

6.1 This Agreement shall supersede and replace any other agreement or arrangement, whether oral or written, heretofore existing between the parties in respect of the subject matter of this Agreement. 

6.2 The parties have not created a partnership and nothing contained in this Agreement shall in any manner whatsoever constitute any party the partner, agent or legal representative of any other party, nor create any fiduciary relationship between them for any purpose whatsoever. No party shall have any authority to act for, or to assume any obligations or responsibility on behalf of, any other party except as may be, from time to time, agreed upon in writing between the parties or as otherwise expressly provided. 

6.3 No consent or waiver expressed or implied by either party in respect of any breach or default by the other in the performance by such other of its obligations hereunder shall be deemed or construed to be a consent to or a waiver of any other breach or default. 

6.4 The parties shall promptly execute or cause to be executed all documents, deeds, conveyances and other instruments of further assurance which may be reasonably necessary or 

6.5 This Agreement may be subject to the approval of the appropriate regulatory authorities and the parties agree to use such reasonable amendments as may be required by those authorities.

6.6 This Agreement shall be construed in accordance with the laws in force from time to time in the Province of Ontario. 

6.7 This Agreement shall enure to the benefit of and be binding upon the parties and their respective successors and permitted assigns. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGE TO FOLLOW]

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IN WITNESS WHEREOF the Vendor have hereunto set their hand, and an authorized signatory of the Purchaser has hereunto signed this Agreement, as of the day and year first above written.

Signed:

/s/ Philip Black

     /s/ Benjamin Ward

Name: Philip Black

     Name: Benjamin Ward

Title: Director

     President: Joshua Gold Resources Inc. 

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