Document:

Non-Qualified Annuity Endorsement

 

 
 Brighthouse Life Insurance Company 

1209 Orange Street 
 Wilmington, DE
19801 
  
  

NON-QUALIFIED ANNUITY ENDORSEMENT 
 This
Endorsement forms a part of the Contract to which it is attached. This Endorsement is being added to the Contract as of the issue date in order to summarize and clarify the federal income tax rules that apply to the administration of your Contract
and the payment of the proceeds of the Contract or the payment of any Death Benefit. 
 In order to maintain its status as a nonqualified
annuity contract under section 72(s) of the Internal Revenue Code of 1986, as subsequently amended, (the “Code”), notwithstanding anything in the Contract (including any endorsements thereto) to the contrary, the following rules apply:

  

	1.	 Where any Owner dies prior to the “annuity starting date” (as defined under section 72(c)(4) of the
Code and the regulations there under), the entire Contract proceeds must be paid out to the person who is otherwise entitled to receive the Contract proceeds or death benefit under the terms of the Contract (the “Payee”), either:
(a) within five years of the date of the death or (b) as provided in income tax regulations, over the payee’s life or over a period no greater than the Payee’s life expectancy in substantially equal payments made at least
annually beginning within twelve months of the date of death. Where required to comply with this rule, We will pay out the actuarial value of any portion of the death benefit that is payable in the form of income payments or installment payments,
over a period shorter than the remaining guarantee period as of the date of an Owner’s death. 

  

	2.	 Where any Owner dies on or after the “annuity starting date”, payments must continue to be made as
least as rapidly as under the annuity payment method in effect at the time of the Owner’s death. 

  

	3.	 If the Contract is owned by a non-natural person (non-individual), the death of any primary Annuitant (or,
where otherwise permitted under the terms of the Contract, the change of any primary Annuitant) shall be treated as the death of an Owner. Accordingly, the federal income tax rules require that the entire Contract proceeds be paid out to the Payee
as provided under paragraph 1 or 2 above (whichever is applicable). 

  

	4.	 Where the Payee is the spouse of the Owner, and where otherwise permitted under the terms of the Contract, the
Payee may, instead of receiving the Contract proceeds or death benefit as provided in this Endorsement, continue such Contract as Owner. 

  

	5.	 Notwithstanding, anything in the Contract to the contrary, where the above referenced death occurs prior to
the annuity starting date, to the extent permitted under the Code, We may make available to the Payee under certain contract forms, in addition to income payments, the option to receive his or her remaining interest in the Contract over a series of
regular, periodic payments (received no less frequently than annually), over his or her life, or over a period no longer than his or her life expectancy. Such payments streams must comply with section 72(s) of the Code. To the extent permitted under
the Code, We may permit a full or partial acceleration of this stream of payments. The Payee may exercise rights of ownership (such as the ability to make reallocations and transfers, if applicable) under this payment stream. 

 

	6.	 Where permitted under the Code, We may deem payments made to a trust (or to the trustee of such trust) that is
treated as owned by a natural person under sections 672 et. seq. of the Code, and under whose terms such natural person can compel the distribution of the entire trust property to himself or herself; as being paid to such natural person as
Payee”. 

 Your Contract is intended to comply with section 72(s) of the Code and will be interpreted accordingly. We
reserve the right to amend the Contract so as to comply with the provisions of the federal income tax law, including section 72(s) of the Code. We will notify You of any such amendment, and, when required by law, we will obtain the approval of the
appropriate regulatory authority. 

  

					
	MLIU-NQ (11/04)-I	 		  	

 All other terms and provisions of the Contract are unchanged. 

Brighthouse Life Insurance Company has caused this Rider to be signed by its President and Secretary. 

 

									
					
	

                    	 	Secretary	 		 	

	 	President

  

					
	MLIU-NQ (11/04)-Iex-10.1

 

 

 POWER AMERICAS MINERALS CORP
 Suite 1400, 1111 West Georgia Street, 
 Vancouver, BC V6E 4M3
 

 

 PRIVATE AND STRICTLY CONFIDENTIAL
 

 

 February 28, 2017
 

 

 

 Red Metal Resources Corp
 1158 Russel Street, Unit D
 Thunder Bay, ON P7B 5N2
 

 Attention: Caitlin Jeffs
 

 Dear Caitlin,
 

 Re:
 Acquisition of a 100% interest in the Farellon, Perth and Mateo Properties (the “Properties”) from Red Metal Resources Corp. (the “Vendor)
 

 This letter of intent (“Letter of Intent”) is intended to set out our mutual understanding of the basic terms and conditions upon which Power Americas Minerals Corp. (“Power Americas”) will acquire a 100% interest in Red Metal’s Farellon Property as defined in Schedule “A” (the “First Option”), a 100% interest in Red Metal’s Perth Property, as defined in Schedule “B” (the “Second Option”), and a 100% interest in  Red Metal’s Mateo Property as defined in Schedule “C” (the “Third Option”) in exchange for an aggregate consideration of i) 25,000,000 common shares in the capital of Power Americas; and ii) a one-time payment of US$250,000. The First, Second and Third Option are hereinafter collectively referred to as the “Option”.
 

 Two of the Farellon mining claims are under option from a third party. Power Americas intends to assume the third-party option and make two final payments of US$75,000 each to the third party vendor to complete the 100% acquisition of the two claims. The option agreements for these two claims can be found in Schedule “D”. There is currently registered a total of 2.5% net smelter royalties (“NSRs”) on the properties to four different parties. A total of 1.5% of the NSR can be purchased for cash payments to the four parties totaling US$3,850,000. The Perth Property will have a 2.5% NSR on it with a buy back of 1.5% of the NSR for US$1,000,000. The Mateo Property has various underlying NSR’s with buy backs of the NSR’s which will be defined in the Definitive Agreement.
 

 1.
 Power Americas may exercise the First Option and earn an undivided 100% interest in the Farellon Property by:
 

 (i)
 issuing Ten Million (10,000,000) common shares at a price of $0.145 per share in the capital of Power Americas and paying the Vendor a one-time sum of US$250,000 within 5 business days of receiving the acceptance of the TSX Venture Exchange (the “TSXV”) to the Transaction;
 

 

 
 

 2.
 Within a period of six months from the date of exercise of the First Option, Power Americas may exercise the Second Option and earn an undivided 100% interest in the Perth Property by issuing to Red Metal either:
 

 (i)
 Ten Million (10,000,000) common shares at a price of $0.145 per share; or
 

 (ii)
 Ten Million (10,000,000) Special Warrants at a price of $0.145 per Special Warrant. Each Special Warrant is exercisable without further consideration into one common share in the capital of Power Americas.  Red Metal shall provide its undertaking that it shall not, for a period of six months from the date of TSX Venture Approval acceptance to this Transaction, acquire upon exercise of the Special Warrants, such number of common shares in the capital of Power Americas which could result in Red Metal owning greater than 10% of the issued and outstanding shares of Power Americas.
 

 3.
 Within a period of 12 months from the date of exercise of the Second Option, Power Americas may exercise the Third Option and earn an undivided 100% interest in the Mateo Property by issuing to Red Metal either:
 

 (i)
 Five Million (5,000,000) common shares at a price of $0.145 per share; or
 

 (ii)
 Five Million (5,000,000) Special Warrants at a price of $0.145 per Special Warrant. Each Special Warrant is exercisable without further consideration into one common share in the capital of Power Americas.  Red Metal shall provide its undertaking that it shall not, for a period of 12 months from the date of TSX Venture Approval acceptance to this Transaction, acquire upon exercise of the Special Warrants, such number of common shares in the capital of Power Americas which could result in Red Metal owning greater than 10% of the issued and outstanding shares of Power Americas.
 

 4.
 Exclusivity
 

 From the date hereof until the termination of this Letter of Intent in accordance with Section 7 hereof (the “Exclusivity Period”), Red Metal agrees to deal exclusively with Power Americas in connection with the Transaction. During the Exclusivity Period, neither Red Metal nor any of its affiliates, officers, directors, employees, agents, professional advisors or other representatives will, directly or indirectly, without Power Americas’ prior written consent in its sole discretion: (a) solicit, initiate, encourage or facilitate enquiries or submissions of proposals from, or enter into or participate in any discussion or negotiation with, any person or company other than Power Americas relating to the acquisition of the Farellon Property or any material portion of the assets of Red Metal or any of its subsidiaries; (b) furnish any information to any person or company other than Power Americas in furtherance of any of the foregoing; or (c) otherwise cooperate in any manner with, or assist or participate in, or encourage any effort or attempt by any person to do or seek to do any of the foregoing. If any such action or undertaking is currently being performed or undertaken, Red Metal will terminate such action or undertaking promptly upon signing this Letter of Intent. 
 

 Red Metal agrees to notify Power Americas forthwith if it, or its affiliates or its or their respective affiliates, officers, directors, employees, agents, professional advisors or other representatives receives, after the date hereof, any indication of interest or other communication regarding any of the foregoing and will furnish in writing to Power Americas all the terms and conditions of any such indication or communication.
 

 

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 5.
 Confirmatory Due Diligence
 

 Power Americas shall complete its due diligence on Red Metal and the Properties to its entire satisfaction before the earlier of the end of the Exclusivity Period (“Confirmatory Due Diligence”) and 60 days from the signing of this Letter of Intent. During the Exclusivity Period, Red Metal will assist Power Americas in its due diligence investigations regarding Red Metal for the purpose of satisfying legal, including mineral title to Red Metal’s mineral projects, environmental and financial due diligence, and such other due diligence review as is customary in the scope of similar transactions including by providing to Power Americas on a timely basis all materials and information regarding Red Metal and its business and operations requested by Power Americas from time to time. Red Metal will use its best efforts to promptly obtain any required consents in order to permit Power Americas to review any materials or information of a nature requested by Power Americas in connection with its due diligence that are subject to confidentiality obligations of Red Metal. 
 

 6.
 Closing Conditions and Other Matters
 

 Our proposal is conditional upon the following conditions:
 

 (a)
 Conditions in favor of both Power Americas and Red Metal:
 

 i)
 the entering into of a definitive agreement (the “Definitive Agreement”) between Power Americas and Red Metal containing customary terms, conditions, representations and warranties (including without limitation environmental-mining) upon which the Transaction will be completed, including customary deal protection mechanisms;
 

 ii)
 the unanimous approval of the Transaction by the Board of Directors of Red Metal and approval by the Board of Directors of Power Americas;
 

 iii)
 the receipt of the applicable third party and regulatory renunciation or approvals, including from the TSX Venture Exchange and the Securities and Exchange Commission; and
 

 iv)
 the compliance by both Red Metal and Power Americas with any applicable securities laws.
 

 (b)
 Conditions in favor of Power Americas:
 

 (i)
 the Farellon Property will be free and clear of all liens, charges, encumbrances, claims, mineral rights or interests, except any customary royalties to be fully disclosed in the Definitive Agreement;
 

 (ii)
 Power Americas shall complete its continued due diligence on the Farellon Property to its entire satisfaction before the end of the Exclusivity Period.
 

 (c)
 Conditions in favor of Red Metal:
 

 i)
 if approval of Red Metal shareholders is required for the Transaction under applicable laws, such approval is obtained; and
 

 ii)
 the closing by Power Americas of a financing of CAD$1,000,000 before the closing of the Transaction.
 

 3
 

 
 

 Each party may want to implement certain reorganization transactions before closing in order to, among other reasons, make the transaction more tax efficient, provided that such reorganization transactions do not, in any manner, affect the Transaction or the Purchase Price, as the case may be.
 

 7.
 Undertaking to Maintain Non-Insider Position (less than 10%)
 

 Both parties agree to maintain Red Metal in a non-insider position of less than a 10% shareholding in Power Americas common stock, in any of the share issuances exercising the First, Second and Third Options during the term of the Definitive Agreement. The parties agree to issue non-voting special warrants converting into common shares, in lieu of common shares in order to maintain a less than 10% position in Power Americas.
 

 8.
 Financing
 

 Power Americas’s offer is not subject to a financing condition, except as provided in Section 3(c)(2). 
 

 9.
 Public Disclosure and Material Transactions
 

 During the Exclusivity Period, Red Metal and Power Americas shall each obtain the prior written consent of the other prior to issuing a press release, filing a material change report with any securities commission or otherwise making any public disclosure regarding the Transaction; provided, however, that nothing in this Letter of Intent will prevent Red Metal or Power Americas from good faith compliance with its disclosure obligations under applicable securities law or applicable regulatory or stock exchange requirements.
 

 10.
 Expenses
 

 Each of Red Metal and Power Americas will be responsible for its own costs and expenses incurred in connection with its evaluation and pursuit of the Transaction.
 

 11.
 Term and Termination
 

 This Letter of Intent (except Section 2 (Confirmatory Due Diligence), Section 8 (Not a Binding Agreement) and Section 9 (Governing Law) will automatically terminate without further action by Power Americas or Red Metal, and be of no further force and effect upon the earliest to occur of:
 

 (a)
 the entering into of the Definitive Agreement;
 

 (b)
 the mutual written agreement by Power Americas and Red Metal; and
 

 (c)
 the 60th day following the date that this Letter of Intent is replaced with a fully executed Definitive Agreement, or such later date as may be agreed to in writing by Power Americas and Red Metal.
 

 Notwithstanding anything in this Section 7, the terms of this Letter of Intent shall not affect any right either party has with respect to the breach of this Letter of Intent by the other party prior to such termination.
 

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 12.
 Not a Binding Agreement
 

 With the exception of Section 1 (Exclusivity), Section 2 (Confirmatory Due Diligence), Section 5 (Public Disclosure and Material Transactions), Section 7 (Term and Termination), Section 8 (Not a Binding Agreement), and Section 9 (Governing Law), this Letter of Intent does not, nor is it intended to, constitute a binding agreement, an agreement in principle or a legally binding contract between Power Americas and Red Metal. Unless and until the Definitive Agreement has been executed and delivered, neither Power Americas nor Red Metal will be under any legal obligation of any kind whatsoever with respect to the Transaction by virtue of this Letter of Intent, except for the matters specifically identified in this Section 8 as legally binding.
 

 13.
 Governing Law
 

 This Letter of Intent will be governed by and construed in accordance with the laws of the Province of British Columbia and the federal laws of Canada applicable therein.
 

 

 

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 We look forward to proceeding expeditiously towards a transaction.  Please do not hesitate to contact us at any time should you have any questions regarding our proposal. Please indicate your acknowledgement and agreement by signing below and returning a signed copy to the attention of Jeffrey Cocks as soon as possible, and in any event, by 5:00 p.m. (Vancouver Time) on February 28, 2017.
 

 Yours very truly,
 

 

 

 POWER AMERICAS MINERALS CORP.
 

 

 

 By:
 /s/ Jeffrey Cocks
 Name:
 Jeffrey Cocks
 President and Chief Executive Officer
 

 The undersigned acknowledges and agrees to the foregoing as of the 28th day of February, 2017.
 

 

 RED METAL RESOURCES LTD.
 

 

 

 By:
 /s/ Caitlin Jeffs
 Name:
 Caitlin Jeffs
 President and Chief Executive Officer
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 6
 

 
 

 SCHEDULE A
 Farellon Property
 

 
 

 

 

 

 

 

 

 

 

 

 

 7
 

 
 SCHEDULE B
 Farellon Property Option Agreements
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 8
 

 
 

 SCHEDULE C
 Perth Property
 

 
 

 

 

 

 

 9
 

 
 SCHEDULE D
 Mateo Property
 

 

 
 

 

 

 

 10

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