Document:

Exhibit 10.2

 

ATHENA SILVER CORPORATION

2010A Harbison Drive, #312

Vacaville, CA 95687

707-291-698

 

August 21, 2020

 

Nubian Resources Ltd.

2526 Yale Court, Suite
202

Abbotsford, British Columbia

Canada V2S 8G9

 

Attention:
Markus Janser, Chairman

 

Dear Mr. Janser,

 

	Re:	Proposed Agreement to Purchase 100% of the Excelsior Springs Exploration Project, Esmeralda
County, Nevada from Nubian Resources Ltd. 

 

This letter of intent (“LOI”)
sets out the principal commercial and contractual terms and principles of the agreement between Nubian Resources Ltd. (the “Vendor”)
and Athena Silver Corporation (“Athena”) whereby Athena will acquire an option to purchase from the Vendor 100%
of the Excelsior Springs Exploration Project located in Esmeralda County, Nevada, USA, which is made up of the mineral tenures,
interests and permits listed in Schedule A (the “Property”), but subject to the royalties listed in Schedule
A, and all data, maps, information, reports, drill core and samples from or relating to the Property in whatever form (collectively,
the "Property Data").

 

This LOI is intended to and constitutes
a legally binding and enforceable agreement among the parties. It is further intended that, subject to Athena being satisfied with
the results of its due diligence investigations in respect of the Property in its discretion, including a site visit, the parties
hereto agree to negotiate in good faith to settle the form of, and enter into, a binding definitive agreement which will replace
this LOI and set forth the terms and conditions of this LOI in greater detail (the “Definitive Agreement”).

 

	1.	Option to Purchase

 

The Vendor hereby grants Athena
the exclusive right to purchase an undivided 100% right, title and interest in and to the Property and the Property Data (the “Transaction”)
in consideration for the following purchase payments:

 

		a)	US$10,000 paid by Athena to the Vendor within five business days of the date the TSX Venture Exchange
(“TSXV”) grants conditional approval for the purchase and sale of the Property as contemplated in this LOI (such
date being the “1st Payment Date”), which amount is non-refundable in all circumstances; and

 

		b)	on or before the earlier of the date of the execution of the Definitive Agreement and the date
that is three months from the date of this LOI (such date being the “2nd Payment Date”), Athena issuing
50,000,000 shares of Athena to the Vendor valued at $0.05 per share;

 

If the purchase payments outlined
in (a) and (b) above are made by Athena in advance of the termination of this LOI and/or execution of the Definitive Agreement,
Athena will be deemed to have purchased a 100% interest in the Property and the Vendor shall immediately undertake all actions
necessary to transfer and register 100% of the Property to Athena.

 

	2.	Due Diligence Period

 

During the period between the
date of this LOI and the 2nd Payment Date (the “Due Diligence Period”) the Vendor agrees that:

 

		a)	it will allow Athena and its authorized representatives, including legal counsel and consultants,
access to the Property and to all information, books, records or other documents in the Vendor’s possession pertaining to
the Property; and

 

		b)	it will not, directly or indirectly, authorise or permit any officer, employee, representative
or agent thereof, to directly or indirectly solicit, initiate, encourage, engage in or respond to any inquiry or proposal regarding
a purchase, transfer or other dealing in the Property, or encourage or provide any information to any corporation or other entity
regarding an acquisition of the Property.

 

 

 

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	3.	Distribution of Shares

 

The Vendor intends to distribute
the shares to its shareholders on a pro rata basis. The shares have a hold period of six months from the 2nd Payment
Date and a distribution before the end of the hold period will result in carrying the hold period over to its shareholders.

 

	4.	Covenants of the Parties

 

		a)	From the 1st Payment Date until termination of the LOI or completion of the purchase of the Property
by Athena (the “Option Period”), Athena will be responsible for the maintenance of the Property including payment
of BLM fees and Athena agrees to keep the Property free and clear of all mortgages, charges, caveats, security interests and other
encumbrances arising from its activities on or in respect of the Property.

 

		b)	Athena’s and Nubian’s respective obligations to enter into the Definitive Agreement
will be conditional upon the satisfaction or waiver of the following conditions precedent during the Due Diligence Period:

 

		i)	the Vendor receiving conditional acceptance of the Transaction from the TSXV (subject to only usual
conditions of the TSXV); and

 

		ii)	the parties obtaining any other approvals required under applicable laws or the rules of an applicable securities exchange.

 

	5.	Representations and Warranties

 

		a)	The Vendor represents, warrants and covenants to and with Athena, that as of the date of this LOI:

 

		i)	the Vendor is a company duly organized, validly existing and in good standing under the laws of
its jurisdiction of incorporation;

 

		ii)	the Vendor has full legal capacity, power and authority to enter into and perform its obligations
under this LOI and this LOI constitutes a legal, valid and binding obligation of it enforceable against it in accordance with its
terms;

 

		iii)	the Vendor holds a 100% legal and beneficial right, title and interest in the Property, except
as set forth in Schedule A;

 

		iv)	the Property is free from any encumbrances liens, charges, claims, royalties or interests of others
of whatever nature, other than the royalties described in Schedule A hereto and rights and interests under legislation applicable
to the Property;

 

		v)	the Property claims are in good standing, in full force and effect and not liable to cancellation
or forfeiture for any reasons and the Vendor is not in breach or contravention of any of the terms and conditions upon which the
Property claims were granted or of any other rule, regulation or provision of any statute concerning, affecting or relating to
the Property claims;

 

		vi)	the mining lease(s), if any, governing mineral rights included in the Property are valid and enforceable
agreements and grant rights to minerals on, in or under the area of such leases to the Vendor, are in good-standing and are assignable
by the Vendor without the consent of the lessor(s);

 

		vii)	there are no environmental liabilities relating to or affecting the Property nor are there any
circumstances relating to the Property which may reasonably be expected to give rise to future environmental liabilities, other
than environmental obligations included in the terms and conditions attaching to the Property or arising under any law other than
by reason of a breach of that law by the Vendor;

 

 

 

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		viii)	to the best of its knowledge, neither the Vendor nor the Vendor’s rights to the Property
are subject to any litigation or legal proceedings, and litigation or legal proceedings have not been threatened against the Vendor;
and

 

		ix)	neither the Vendor, nor any of its assets, is subject to any bankruptcy, receivership or insolvency
proceedings or orders.

 

Under the Definitive Agreement,
the Vendor will provide such representations and warranties to Athena as are considered standard for transactions similar to the
one described herein, including but not limited to the substance of the foregoing statements, at the date of the Definitive Agreement.

 

		b)	Under the Definitive Agreement, Athena will provide such warranties to the Vendor as are considered
standard for transactions similar to the Transaction, including but not limited to warranting to the Vendor that the following
statements are true, complete and accurate at the date of the Definitive Agreement:

 

		i)	Athena is a company duly organized, validly existing and in good standing under the laws of its
jurisdiction of incorporation;

 

		ii)	Athena has full legal capacity, power and authority to enter into and perform its obligations under
this LOI and this LOI constitutes a legal, valid and binding obligation of it enforceable against it in accordance with its terms;

 

		iii)	Athena owns 100% of the entire issued share capital (in formation) of Esmeralda Gold Corporation;

 

		iv)	Athena is not subject to any litigation or legal proceedings, and litigation or legal proceedings
have not been threatened against Athena; and

 

		v)	Athena, nor any of their respective assets, is subject to any bankruptcy, receivership or insolvency
proceedings or orders.

 

	6.	Other Provisions

 

		a)	During the Option Period, Athena shall convert outstanding debt to equity and will have no more
than 50,000,000 shares outstanding;

 

		b)	Athena shall raise $750,000 at a minimum of $0.03 USD per share for a total of maximum 25,000,000
shares;

 

		c)	Athena shall obtain a listing on the CSE, the TSX Venture Exchange or another recognized stock
exchange agreed to by the Vendor, acting reasonably;

 

		d)	The Vendor shall retain a 1% NSR on the Property and Athena shall have the right, but not the obligation,
to purchase 0.5% NSR back from the Vendor for the amount of $500,000 and the remainder of 0.5% at fair market value;

 

		e)	The parties shall use their best efforts to agree to the terms of and, if so agreed, execute, a
Definitive Agreement within the Due Diligence Period. If the Definitive Agreement is not agreed and executed by the end of the
Due Diligence Period, Athena or the Vendor may terminate this LOI by notice in writing to the other party.

 

If this LOI
is terminated under this clause 6(e):

 

		i)	the rights and obligations of each party under clauses 6(j) and (k) will survive termination;
                                                             and

 

		ii)	subject to clause 6(e)(i), each party is released from its obligations under this LOI.

 

		f)	The Vendor understands and acknowledges that all shares of Athena issuable to the Vendor pursuant
to a Definitive Agreement will be subject to certain resale restrictions under applicable Canadian and US securities laws and the
rules and policies of the TSXV and the Vendor agrees to comply with such restrictions. The Vendor also acknowledges that the certificates
for the securities of Athena issuable hereunder will bear the required legends under US and Canadian securities laws.

 

 

 

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		g)	For the purposes of Section 1 hereof, if there is any subdivision, consolidation or other alteration
of the share capital of Athena before the date the fixed share payment must be made, there will be a corresponding adjustment in
the number of shares issuable to reflect such change in share capital. It is anticipated that Athena will endeavor a 1:10 consolidation
and a name change on completion of this transaction.

 

		h)	During the Option Period, Athena and its employees, agents and independent contractors shall have
the right to enter upon the Property to undertake due diligence activities contemplated by this Agreement, including the removal
of mineral samples for the purpose of, and in the amounts appropriate for, testing such mineral samples, and Athena shall have
the right to bring upon and erect upon the Property such equipment as Athena may deem necessary or desirable to carry out such
due diligence activities.

 

		i)	Time shall be of the essence in this LOI.

 

		j)	No disclosure or announcement, public or otherwise, in respect of this LOI or the transactions
contemplated herein or therein will be made by any party without the prior agreement of the other party as to timing, content and
method, provided that the obligations herein will not prevent any party from making, after consultation with the other party to
the extent possible, such disclosure as its counsel advises is required by applicable law or the rules and policies of the TSXV,
or any securities regulatory authority having jurisdiction over it.

 

		k)	This LOI and the Definitive Agreement shall be governed by and construed in accordance with the
laws of British Columbia, Canada. Each party submits to the exclusive jurisdiction of the courts exercising jurisdiction in British
Columbia, Canada and courts of appeal from them in respect of any proceedings arising out of or in connection with this LOI or
the Definitive Agreement.

 

		l)	During the Option Period, none of the parties to this LOI may assign nor otherwise deal with all
or any part of its interest in the Definitive Agreement or this LOI without the written consent of the other party and any purported
assignment without such consent is considered void.

 

		m)	This LOI may be executed in several parts in the same form and such parts as so executed will together
constitute one original agreement, and such parts, if more than one, will be read together as if all parties hereto had executed
one copy of this LOI.

 

		n)	This LOI constitutes the entire agreement between the parties hereto with respect to the subject
matter hereof and supersedes all prior agreements, understandings and representations, oral or written, by and between any of the
parties hereto with respect to the subject matter hereof.

 

		o)	Each party at its own expense must do everything reasonably necessary to give full effect to this
LOI and the transactions which it contemplates.

 

		p)	Each party shall bear its own legal and other costs in relation to this LOI, the Transaction, the
Definitive Agreement and any other agreements entered into in connection with the Transaction.

 

		q)	The existence and terms of this LOI are confidential and must not be disclosed to a third party
without the prior written consent of the other party. This restriction does not apply where such disclosure is to a related body
corporate, government agency or legal or financial adviser of a party or is required by law or the rules of any stock exchange
applicable to one of the parties hereto.

 

If the foregoing is in accordance with
your understanding and is acceptable to you, please indicate by signing this LOI and returning a copy to us.

 

Yours truly,

 

	ATHENA SILVER CORPORATION
	Per:	
         

        /s/ John C. Power

	 	
        Name:       John C. Power

        Title:        President

 

Accepted and agreed to this 21st day of August, 2020,
by:

 

	NUBIAN RESOURCES LTD.
	Per:	
         

        /s/ Martin Walter

	 	
        Name:     Martin Walter

        Title:       Chief Executive Officer

 

 

 

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SCHEDULE A

 

EXCELSIOR
SPRINGS Claims 

 

PATENTED CLAIMS

 

	Name	MS#	Royalty Payable	Royaltyholder	Agreement Creating Royalty

 

 

 

 

 

 

 

 

 

UNPATENTED CLAIMS

 

	Name	BLM#	Royalty Payable	Royaltyholder	Agreement Creating Royalty

 

 

 

 

    	 	5llexq-ex101_6.htm

Exhibit 10.1

THIRD AMENDMENT TO SENIOR SECURED SUPER-PRIORITY DEBTOR-IN-POSSESSION CREDIT AGREEMENT

 

This THIRD AMENDMENT TO SENIOR SECURED SUPER-PRIORITY DEBTOR-IN-POSSESSION CREDIT AGREEMENT (this “Agreement”) dated as of August 28, 2020, is among Lilis Energy Inc., a Nevada corporation (the “Borrower”), certain Subsidiaries of the Borrower (the “Guarantors”), BMO Harris Bank N.A. (“BMO”), as Administrative Agent for the Lenders, and the other Lenders from time to time party hereto.

Recitals

	
A.
	
WHEREAS, the Borrower, the Guarantors, the Lenders party thereto and the Administrative Agent are parties to that certain Senior Secured Super-Priority Debtor-In-Possession Credit Agreement dated as of June 30, 2020 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), pursuant to which the Lenders have made certain credit available to and on behalf of the Borrower.

	
B.
	
WHEREAS, the Borrower has requested that the Administrative Agent and the Lenders constituting the Majority Lenders enter into this Amendment to, among other things, grant an extension of certain Chapter 11 Milestones as further set forth herein.

NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

Section 1Defined Terms.  Each capitalized term which is defined in the Credit Agreement, but which is not defined in this Agreement, shall have the meaning ascribed to such term in the Credit Agreement. 

Section 2Amendment.  Subject to the occurrence of the Effective Date, the following amendment to the Credit Agreement shall be made:

2.1Amendment to Section 8.23. Section 8.23(e) of the Credit Agreement is hereby amended by replacing the phrase “August 28, 2020” with the phrase “September 3, 2020”.

Section 3Conditions Precedent to Effective Date.  This Agreement shall become effective on the date (such date, the “Effective Date”) when each of the following conditions is satisfied (or waived) in accordance with the terms herein: 

3.1The Administrative Agent shall have received from the Borrower, each Guarantor, and Lenders constituting the Majority Lenders, counterparts of this Agreement signed on behalf of such Persons.

3.2As of the Effective Date, after giving effect to this Agreement, (a) the representations and warranties of each Loan Party set forth in the Credit Agreement and in each other Loan Document shall be true and correct in all material respects (unless already qualified by materiality in which case such applicable representation and warranty shall be true and correct), except to the extent such representations and warranties expressly relate to an earlier date, in which case they shall be true and correct in all material respects (unless already qualified by materiality in which case such applicable representation and warranty shall be true and correct) as of such earlier date and (b) no Default or Event of Default shall have occurred and be continuing.

 

 

Each party hereto hereby authorizes and directs the Administrative Agent to declare this Agreement to be effective (and the Effective Date shall occur) when it has received documents confirming or certifying, to the reasonable satisfaction of the Administrative Agent, compliance with the conditions set forth in this Section 3. Such declaration shall be final, conclusive and binding upon all parties to the Credit Agreement for all purposes.

Section 4Miscellaneous.

4.1Limitation of Waivers. Nothing contained in this Agreement shall directly or indirectly in any way whatsoever, except as set forth herein, amend or alter any provision of the Credit Agreement, the other Loan Documents, or any other contract or instrument.

4.2Confirmation.  The provisions of the Credit Agreement and each Loan Document shall remain in full force and effect following the Effective Date.

4.3Ratification and Affirmation; Representations and Warranties.  Each of the Guarantors and the Borrower certifies to the Lenders, on the Effective Date, as applicable, that, after giving effect to this Agreement and the amendments and transactions occurring on the Effective Date, (a) the representations and warranties of each Loan Party set forth in the Credit Agreement and in each other Loan Document are true and correct in all material respects (unless already qualified by materiality in which case such applicable representation and warranty are true and correct), except to the extent such representations and warranties expressly relate to an earlier date, in which case they are true and correct in all material respects (unless already qualified by materiality in which case such applicable representation and warranty are true and correct) as of such earlier date and (b) no Default or Event of Default has occurred and is continuing.   

4.4Counterparts.  This Agreement may be executed by one or more of the parties to this Agreement on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument.  Delivery of an executed signature page of this Agreement by email or facsimile transmission shall be effective as delivery of a manually executed counterpart hereof.  The words “execution,” “signed,” “signature,” “delivery,” and words of like import in or relating to any  document to be signed in connection with this Agreement and the transactions contemplated hereby shall be deemed to include electronic signatures, deliveries or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act; provided that nothing herein shall require the Administrative Agent to accept electronic signatures in any form or format without its prior written consent.  Without limiting the generality of the foregoing, the Borrower hereby (i) agrees that, for all purposes, including without limitation, in connection with any workout, restructuring, enforcement of remedies, bankruptcy proceedings or litigation among the Administrative Agent, the Lenders and the Borrower and its Subsidiaries, electronic images of this Agreement or any other Loan Documents (in each case, including with respect to any signature pages thereto) shall have the same legal effect, validity and enforceability as any paper original, and (ii) waives any argument, defense or right to contest the validity or enforceability of the Loan Documents based solely on the lack of paper original copies of any Loan Documents, including with respect to any signature pages thereto.

4.5No Oral Agreement.  This Agreement, the Credit Agreement, the other Loan Documents and any separate letter agreement with respect to fees payable to the Administrative Agent constitute the entire contract among the parties relating to the subject matter hereof and thereof and supersede any and all previous agreement and understandings, oral or written, relating to the subject matter hereof and thereof. 

2

 

THIS AGREEMENT, THE CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES HERETO AND THERETO AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENT OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. 

4.6GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

4.7WAIVER OF RIGHT TO TRIAL BY JURY.  EACH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

4.8Severability.  Any provision of this Agreement or any other Loan Document held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof or thereof, and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

4.9Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns in accordance with Section 12.04 of the Credit Agreement.

4.10Loan Documents.  This Agreement is a Loan Document.

[Signature Pages Follow]

 

3

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed effective as of the Effective Date.

		
	
 

BORROWER:
	
 

LILIS ENERGY, INC.

	
 
	
 

	
 
	
 

	
 
	
By:/s/ Joseph C. Daches

	
 
	
Name:Joseph C. Daches 

	
 
	
Title:Chief Executive Officer, President and Chief Financial Officer 

	
 

GUARANTORS:
	
 

BRUSHY RESOURCES, INC.

	
 
	
HURRICANE RESOURCES LLC

	
 
	
IMPETRO OPERATING LLC

	
 
	
LILIS OPERATING COMPANY, LLC

	
 
	
IMPETRO RESOURCES, LLC

	
 
	
 

	
 
	
 

	
 
	
Each By: /s/ Joseph C. Daches

	
 
	
Name:Joseph C. Daches

	
 
	
Title:Chief Executive Officer, President and Chief Financial Officer

 

 

	
ADMINISTRATIVE AGENT:
	
BMO HARRIS BANK N.A., 
as Administrative Agent, and a Lender

 

By:/s/ Melissa Guzmann___________
Name:Melissa Guzmann
Title:Director

5

 

	
LENDERS:
	
CAPITAL ONE, NATIONAL ASSOCIATION,
as a Lender

By:/s/ Michael P. Robinson___________________
Name:Michael P. Robinson
Title:Senior Vice President

6

 

	

	
CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, as a Lender

By:/s/ Megan Kane_____________________
Name:Megan Kane
Title:Authorized Signatory

By:/s/ Christopher Zybrick____________________
Name:Christopher Zybrick
Title:Authorized Signatory

 

 

 

7

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