Document:

Filed by OTC Filings Inc. - www.otcedgar.com - 1-866-832-FILE(3453) - VALMIE RESOURCES, INC. - Exhibit 10.1

 MINERAL CLAIM OPTION AGREEMENT
 

 THIS OPTION AGREEMENT DATED the 30th day of September, 2011.
 AMONG:
 PROMITHIAN MINING (NEVADA), INC., a company incorporated  under the laws of the State of Nevada with an address at 406E 300S, # 149, Salt Lake City, Utah, 84111
 (“Promithian”)
 AND:
 VALMIE RESOURCES, INC., a company incorporated under the laws of the State of Nevada with an address at 9190 Double Diamond Parkway, Reno, Nevada, 89521
 (“Valmie”)
 WHEREAS:
 
 A.
 Promithian (the “Optionor”) is the sole recorded and beneficial owner of certain mineral claims and tenures located in the State of Nevada as further described in Schedule “A” hereto (the “Property”);
 
 B.
 The Optionor wishes to Option its’ right, title and interest in and to the Property to Valmie (the Optionee) ; and
 
 C.
 The parties wish to enter into this Option Agreement to set forth their respective rights and obligations in respect of the option of the Property.
 NOW THEREFORE in consideration of the premises and of the mutual covenants, agreements and representations and warranties of the parties hereinafter contained, the parties covenant and agree as follows:

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Definitions
 
 1.
 In this Option Agreement, the following words have the following meanings:
 
 (a)
 “Agreement Date” means the date of this Option Agreement;
 
 (b)
 “Closing Date” means September 30, 2011, or such other date as mutually agreed upon by the parties;
 
 (c)
 “Consideration” has the meaning ascribed to such term in Section ;
 
 (d)
 “NSR” means the net smelter return royalty, as described in Schedule “B”;
 
 (e)
 “NSR Payment” has the meaning ascribed to such term in Schedule “B”; and
 
 (f)
 “Property” has the meaning ascribed to such term in Schedule .
 Option of Property
 
 2.
 The Optionor agrees to option and the Optionee agrees to option a 100% interest in and to the Property. In consideration therefore (the “Consideration”), the Optionee will: 
 
 (a)
 grant a 6% NSR to the Optionor in the following:
 
 (i)
 the Property,
 
 (ii)
 any claims staked by the Optionee within a 10 kilometer radius of the Property, and 
 
 (iii)
 any claims staked by the Optionee contiguous to the Property.
 
 (b)
 provided that the Optionee has not abandoned the Property in accordance with Section , the Optionee will pay to the Optionor a payment (the “Payments”) as follows:
 
 (i)
 $15,000.00 on September 30, 2011,
 
 (ii)
 $30,000.00 on September 30, 2012,
 
 (iii)
 $60,000.00 on September 30, 2013,
 
 (iv)
 $120,000.00 on September 30, 2014,
 
 (v)
 Upon the payment of this $225,000 title to 100% of the Property will be transferred to the Optionee
 
 (c)
 the Optionee will spend a minimum of $125,000 on exploration and development work on the Property by December 31, 2012; and every subsequent year thereafter;
 
 (d)
 the Optionee will pay the Optionor the NSR Payments in cash as laid out in Schedule “B”; and
 
 (e)
 at any time until the tenth year anniversary of this Agreement, the Optionee may purchase half of the Optionors’ NSR right (3%) from the Optionor for a one time payment of $5,000,000.
 
 (f)
 The Optionee shall be responsible for any and all property payments due to any governmental authority on the Property during the terms of this Option Agreement.
 

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 Optionors’ Representations and Warranties
 
 3.
 The Optionor represents and warrants to the Optionee that, as at the Agreement Date and at the Closing Date:
 
 (a)
 the Optionor is the sole recorded and beneficial owner of an undivided l00% interest in and to the Property;
 
 (b)
 the claims comprising the Property have been properly located and staked and recorded in compliance with the laws of the jurisdiction in which they are situate, are accurately described in Schedule “A” and are valid and subsisting mineral claims;
 
 (c)
 the Property is in good standing under all applicable laws and regulations, all assessment work required to be performed and filed has been performed and filed, all taxes and other payments have been paid and all filings have been made;
 
 (d)
 the Property is free and clear of any encumbrances, liens or charges and neither the Optionor nor, to the best of the Optionors’ knowledge, any of their predecessors in interest or title, have done anything whereby the Property may be encumbered; 
 
 (e)
 the Optionor has the right to enter into this Option Agreement and to Option the Property in accordance with the terms of this Option Agreement, there are no disputes over the title to the Property, and no other party has any interest in the Property or the production therefrom or any right to acquire any such interest;
 
 (f)
 there are no outstanding orders or directions relating to environmental matters requiring any work, repairs, construction or capital expenditures with respect to the Property and the conduct of the operations related thereto, and the Optionor has not received any notice of same and are not aware of any basis on which any such orders or direction could be made;
 
 (g)
 the Optionors’ ownership of the Property is in compliance with, is not in default or violation in any material respect under, and the Optionor has not been charged with or received any notice at any time of any material violation of any statute, law, ordinance, regulation, rule, decree or other applicable regulation in connection with the Optionors’ ownership of the Property;
 
 (h)
 the Optionor has duly filed all reports and returns required to be filed with governmental authorities and have obtained all governmental permits and other governmental consents, except as may be required after the execution of this Option Agreement and all of such permits and consents are in full force and effect, and no proceedings for the suspension or cancellation of any of them, and no investigation relating to any of them, is pending or to the knowledge of the Optionor, threatened, and none of them will be adversely affected by the entry into this Option Agreement;
 
 (i)
 the Optionor has held the Property in material compliance with all laws, rules, statutes, ordinances, orders and regulations and the Optionor has not received any notice of any violation thereof, nor is the Optionor aware of any valid basis therefore;
 

 
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 (j)
 there is no adverse claim or challenge against or to the ownership of or title to any part of the Property and, to the knowledge of the Optionor, there is no basis for such adverse claim or challenge which may affect the Property;
 
 (k)
 there are no actual or pending proceedings for, and the Optionor is unaware of any basis for, the institution of any proceedings leading to the placing of the Optionor in bankruptcy or subject to any other laws governing the affairs of insolvent parties;
 
 (l)
 the Optionor has advised the Optionee of all of the material information relating to the mineral potential of the Property of which they have knowledge;
 
 (m)
 no filing or registration with, no notice to and no permit, authorization, consent, or approval of any public or governmental body or authority or other person or entity is necessary for the consummation of the option contemplated by this Option Agreement or to enable the Optionee to option the Property on the Closing Date;
 
 (n)
 there are no mine workings or waste dumps or mine tailings on the Property; 
 
 (o)
 the Optionor has the legal capacity and competence to enter into and execute this Option Agreement and to take all actions required pursuant hereto;
 
 (p)
 the entering into of this Option Agreement and the transactions contemplated hereby do not result in the violation of any of the terms and provisions of any law applicable to, or of any agreement, written or oral, to which the Optionor may be a party or by which the Optionor is or may be bound;
 
 (q)
 the Optionee and others will rely upon the truth and accuracy of the acknowledgements, representations and agreements contained in this Option Agreement, and agrees that if any of such acknowledgements, representations and agreements are no longer accurate or have been breached, the Optionor shall promptly notify the Optionee;
 
 (r)
 the Optionor has duly executed and delivered this Option Agreement and it constitutes a valid and binding agreement of the Optionor enforceable against the Optionor;
 
 (s)
 the Optionor has received and carefully read this Option Agreement; and
 
 (t)
 the Property is not subject to any mining royalties imposed by any federal, state, provincial, municipal or local authority, which are beyond the control of the Optionor.
 Survival of Optionors’ Representations and Warranties
 
 4.
 The representations and warranties of the Optionor in this Option Agreement shall survive the closing of the Option of the Property contemplated hereby and shall continue in full force and effect for the benefit of the Optionee. Such representations and warranties shall apply to all assignments, conveyances, transfers and documents delivered in connection with this Option Agreement, and there shall not be any merger of any representations and warranties in such assignments, conveyances, transfers or documents notwithstanding any rule of law, equity or statute to the contrary and all such rules are hereby waived.  The Optionor shall have the right to waive any representation and warranty made by the Optionee in its’ favour without prejudice to any of their recourses with respect to any other breach by it. The Optionor shall indemnify and save harmless the Optionee from and against any loss, damages, actions and costs arising from the Optionors’ representations and warranties given hereunder or pursuant to this Option Agreement being incorrect or breached.
 

 Optionees’ Representations and Warranties
 
 5.
 The Optionee represents and warrants to the Optionor that, as at the Agreement Date and at the Closing Date:
 
 (a)
 it has been duly organized and validly exists as a company in good standing under the laws of the State of Nevada
 
 (b)
 upon completion of the option of the Property, it will be lawfully authorized to hold mineral claims and real property under the laws of the State of Nevada;
 
 (c)
 it has duly obtained all corporate authorizations for the execution of this Option Agreement and for the performance of this Option Agreement by it, and the consummation of the transactions herein contemplated will not conflict with or result in any breach of any covenants or agreements contained in, or constitute a default under, or result in the creation of any encumbrance under the provisions of the Articles of the Optionee or any shareholders' or directors' resolution, indenture, agreement or other instrument whatsoever to which the Optionee is a party or by which it is bound or to which it or the Property may be subject; and
 
 (d)
 no proceedings are pending for, and the Optionee is unaware of any basis for the institution of any proceedings leading to, the dissolution or winding up of the Optionee or the placing of the Optionee in bankruptcy or subject to any other laws governing the affairs of insolvent corporations.
 Survival of Optionees’ Representations and Warranties
 
 6.
 The representations and warranties of the Optionee in this Option Agreement shall survive the closing of the Option of the Property contemplated hereby and shall continue in full force and effect for the benefit of the Optionor. Such representations and warranties shall apply to all assignments, conveyances, transfers and documents delivered in connection with this Option Agreement, and there shall not be any merger of any representations and warranties in such assignments, conveyances, transfers or documents notwithstanding any rule of law, equity or statute to the contrary and all such rules are hereby waived.  The Optionee shall have the right to waive any representation and warranty made by the Optionor in the Optionees’ favour without prejudice to any of its recourses with respect to any other breach by the Optionee. The Optionee shall indemnify and save harmless the Optionor from and against any loss, damages, actions and costs arising from any of the Optionees’ representations and warranties given hereunder or pursuant to this Option Agreement being incorrect or breached. 
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Closing Documents
 
 7.
 On the Closing Date, the Optionor will deliver to the Optionee, all data and other information in the possession or control of the Optionor with respect to the Property which have not been previously delivered to the Optionee.
 Conditions Precedent
 
 8.
 The obligation of the Optionee to complete the Option of the Property contemplated hereby is subject to the satisfaction of the following conditions precedent:
 
 (a)
 the Optionors’ representations and warranties will be true and correct at the Closing Date;
 
 (b)
 the Optionee shall have the right to conduct a due diligence review with respect to the Property and title thereto and shall be satisfied with same, in its sole discretion; 
 
 (c)
 the Optionor shall have received all regulatory approvals or consents necessary to consummate the transactions set out herein including, without limitation, the Option of the Property to the Optionee; 
 
 (d)
 the Optionor will have performed and complied in all material respects with any obligations which it may have to the Optionee under this Option Agreement; and
 
 (e)
 no statute, rule, regulation, decree, ruling or injunction will have been enacted or entered into, and no litigation, proceeding, government inquiry or investigation will be pending, which challenges, prohibits or restricts, or seeks to prohibit or restrict, the consummation of the transactions contemplated by this Option Agreement.
 
 9.
 The foregoing conditions precedent are inserted for the benefit of the Optionee and may be waived in whole or in part by the Optionee by notice in writing to the Optionor. 
 
 10.
 The obligation of the Optionor to complete the transactions contemplated hereby is subject to the satisfaction of the following condition precedent:
 
 (a)
 the Optionors’ representations and warranties will be true and correct on the Closing Date; 
 
 (b)
 no statute, rule, regulation, decree, ruling or injunction will have been enacted or entered into, and no litigation, proceeding, government inquiry or investigation will be pending, which challenges, prohibits or restricts, or seeks to prohibit or restrict, the consummation of the transactions contemplated by this Option Agreement; and
 
 (c)
 the Optionee will have performed and complied in all material respects with any obligations which it may have to the Optionor under this Option Agreement.
 
 11.
 The foregoing conditions precedent is inserted for the benefit of the Optionor and may be waived in whole or in part by the Optionor by notice in writing to the Optionee. 
 Right to Abandon Property Interests
 
 12.
 The Optionee, at its sole discretion, may abandon all interests and cease mineral exploration and extraction work on the Property at any time by providing at least 30 days written notice, the “Termination Notice”, to the Optionor. The Optionee shall have not further obligations to the Optionor in regards to option payments, exploration and extraction work, or NSR payments as of the effective date of the “Termination Notice”
 Further Assurances
 
 13.
 Each party shall execute all further documents or assurances as the other party may reasonably require to carry out the terms and intention of this Option Agreement.
 Notice
 
 14.
 Each notice, demand or other communication required or permitted to be given under this Option Agreement shall be in writing and shall be delivered or telecopied 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.
 
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Payment
 
 15.
 All references to monies hereunder will be in United States funds.  All payments to be made to any party hereunder may be made by cheque delivered to such party at its address for notice as provided in Section . Unless instructed by the Optionor in writing,  
 All Further Acts.  
 
 16.
 Each of the parties hereto will do any and all such acts and will execute any and all such documents as may reasonably be necessary from time to time to give full force and effect to the provisions and intent of this Option Agreement.  The Optionor further agree that it will, at any time and from time to time after the date hereof, upon the Optionees’ request, execute, acknowledge and deliver or cause to be executed and delivered, all further documents or instruments necessary to effect the transactions contemplated in this Option Agreement.
 Entire Agreement
 
 17.
 This Option Agreement constitutes the entire agreement between the parties and replaces and supersedes all agreements, memoranda, correspondence, communications, negotiations and representations, whether verbal or express or implied, statutory or otherwise, between the parties with respect to the subject matter herein.
 Assignment
 
 18.
 The Optionor and Optionee will not assign any right, benefit or interest in this Option Agreement without the written consent of the other party, which consent may not be unreasonably withheld.
 Gender
 
 19.
 Wherever the singular or neuter are used herein the same shall be deemed to include the plural, feminine or masculine.
 Enurement
 
 20.
 This Option Agreement shall enure to the benefit of and be binding upon the parties hereto and their respective successors and permitted assigns.  
 Governing Laws
 
 21.
 This Option Agreement shall be governed by, and construed in accordance with, the laws of the State of Nevada applicable therein. The parties irrevocably submit to the exclusive jurisdiction of the courts of the State of Nevada with respect to any legal proceedings arising herefrom. 
 Counterparts and Electronic Means.  
 
 22.
 This Option Agreement may be executed in several counterparts, each of which will be deemed to be an original and all of which will together constitute one and the same instrument.  Delivery of an executed copy of this Lease Agreement by electronic facsimile transmission or other means of electronic communication capable of producing a printed copy will be deemed to be execution and delivery of this Option Agreement as of the day and year first written above.
 [the remainder of this page intentionally left blank]
 
 
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 Independent Legal Advice.
 
 23.
 Each of the parties acknowledges that: they have sought or have otherwise waived, independent tax and legal advice with respect to this Option Agreement and the documents delivered pursuant thereto.
 IN WITNESS WHEREOF this Option Agreement has been executed by the parties hereto as of the day and year first above written.
 

 PROMITHIAN MINING (NEVADA), INC.
 

Per:
 Authorized Signatory
 

 VALMIE RESOURCES, INC.
 

 
 Per:
 ________________________________
 Authorized Signatory
 

  
 
 
 
 
 
 
 
 
 
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 SCHEDULE “A”
 LANDER COUNTY, NEVADA CLAIMS
 
 Claim Name and #
 Bureau Of Land Management Mining Claim Serial #
 
 Mag # 3
 339182
 
 Mag # 4
 339183
 
 Mag # 5
 339184
 
 Mag # 6
 339184
 
 Pro # 1
 1032431
 
 Pro # 2
 1032432
 
 Pro # 3
 1032433
 
 Pro # 4
 1032434
 
 Pro # 5
 1032435
 
 Pro # 6
 1032436
 
 Pro # 7
 1032437
 
 Pro # 8
 1032438
 
 Pro # 9
 1032439
 
 Pro # 10
 1032440
 
 Pro # 11
 1032441
 
 Pro # 12
 1032442
 
 Pro # 13
 1032443
 
 Pro # 14
 1032444
 
 Pro # 15
 1032445
 
 Pro # 16
 1032446
 
 Pro # 17
 1032447
 
 Pro # 18 
 1032448
 
 Pro # 19
 1032449
 
 Pro # 20 
 1032450
 
 Pro # 21
 1032451
 
 Pro # 22
 1032452
 
 Pro # 23
 1032453
 
 Pro # 24
 1032454
  
 

 
  
 
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 SCHEDULE “B”
 Net Smelter Royalty Calculation
 	 In this Schedule B, expressions used herein which are defined in the attached Option Agreement will have the meanings ascribed to them in the attached Option Agreement unless otherwise defined herein or the context otherwise requires.

	 “Net Smelter Returns” shall mean the actual proceeds paid to Optionor from any mine, smelter, or other purchaser for the sale of ores, metals or concentrated products from the Property and sold after deducting from such proceeds the following charges to the extent that they were not deducted from such proceeds by the purchaser in computing payment: smelting and refining charges; cost of transportation of ores, metals or concentrates from the Property to any mint smelter or other purchaser; and insurance on all such ores, metals or concentrates. The Net Smelter Royalty will be calculated on a per concession basis.

	 The Optionor and the Optionee acknowledge and agree that the Property is subject to a royalty payment to the Optionor of 6% of Net Smelter Returns as contemplated in Section 2 of this Option Agreement (the “NSR”). 

	 Payment of the NSR (the “NSR Payment”) shall be made quarterly within 30 days after the end of each fiscal quarter of the Optionee and shall be accompanied by unaudited financial statements pertaining to the operations carried out on the Property.  Within 90 days after the end of each fiscal year of the Optionee in which the NSR is payable, the records relating to the calculation of NSR for such year shall be audited and any resulting adjustments in the payment of the NSR payable shall be made forthwith.  A copy of the said audit (the “Annual Report”) shall be delivered to the Parties within 30 days of the end of such 90-day period.

	 Each annual audit shall be final and not subject to adjustment unless a party delivers to the other party written exceptions in reasonable detail within three months after a party receives the Annual Report.  The Parties, or their representative duly authorized in writing, shall at their expense have the right to audit the books and production records of the Optionee, or such other operator of the mine, related to the NSR to determine the accuracy of the Annual Report. The audit shall be conducted by a chartered or certified public accountant of recognized standing (the “Auditor”).  The Lessee or such other operator of the mine shall have the right to condition access to its books and records on execution of a written agreement by the Auditor that all information will be held in confidence and used solely for purposes of audit and resolution of any disputes related to the NSR.  A copy of the Auditor’s report shall be delivered to the Optionee and the amount, which should have been paid according to the Auditor’s report, shall be paid forthwith, one party to the other

	 In the event smelting or refining are carried out in facilities owned or controlled in whole or in part by the Optionee, charges, costs with respect to such operations, excluding transportation, shall mean reasonable charges, costs for such operations but not in excess of the amounts that the Optionee would have incurred if such operations were carried out at facilities not owned or controlled by the Optionee then offering comparable customer services.

	 A party shall at their election have the right to take their NSR in kind as it may pertain to precious metals defined as gold, silver, rare earth elements and platinum group elements in whole or in part.Unassociated Document

 

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY STATE SECURITIES OR “BLUE SKY LAWS,” AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED ABSENT AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR COMPLIANCE WITH RULE 144 PROMULGATED UNDER SUCH ACT, OR UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL, REASONABLY SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED.

 

 

10% CONVERTIBLE BRIDGE NOTE

DUE JULY 2, 2013

BUREAU OF FUGITIVE RECOVERY, INC.

 

 

	 
Date: July 2, 2012 

	 	 	 
US$________

 

 

FOR VALUE RECEIVED, in cash and other consideration, Bureau of Fugitive Recovery, Inc., a Colorado corporation (“Borrower”), hereby promises to pay to ____________, or registered assigns (“Holder”), the sum of _____________ (US$_____) (the “Principal”).

(1)           Payments of Principal.  On July 2, 2013 (the “Maturity Date”), unless an Event of Default shall have occurred, Borrower shall pay to Holder the entire principal amount (the “Principal Amount”) under this Promissory Note (this “Note”) plus all accrued and unpaid interest in cash.  If any time prior to the Maturity Date Borrower has consummated a financing in which it issues its securities (the “Financing”), then the Holder shall have the right to exchange this Note for such security and the principal and accrued interest hereunder will be applied towards the purchase of such security, at the price and on the same terms being offered to the other investors in the Financing.  Such offer shall made at the same time and in the same manner as if such offer is being made to any other potential purchaser of such security.  Borrower may prepay all or any portion of the amounts owing under this Note at any time without fee, charge or premium.

(2)           Interest.  This Note shall bear interest at the rate of 10% per annum payable in full on the Maturity Date.

(3)           Event of Default.

(a)           Event of Default.  Each of the following events shall constitute an “Event of Default” hereunder:

 

(i)              Borrower's failure to pay to the Holder any amount when and as due under this Note for a period of ten (10) Business Days after notice of such failure; or

 

  

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(ii)              Borrower shall either (i) fail to pay, when due, or within any applicable grace period, any payment in respect of any Indebtedness in excess of $100,000, individually or in the aggregate, due to any third party, other than, with respect to unsecured indebtedness only, payments contested by the Borrower in good faith by proper proceedings and with respect to which adequate reserves have been set aside for the payment thereof, or otherwise be in breach or violation of any agreement for monies owed or owing in respect of any indebtedness in an amount in excess of $250,000, individually or in the aggregate, which breach or violation permits the other party thereto to declare a default or otherwise accelerate amounts due thereunder, or (ii) suffer to exist any other circumstance or event that would, with or without the passage of time or the giving of notice, result in a default or event of default under any agreement binding Borrower, which default or event of default would or is likely to have a material adverse effect on the business, operations, properties, prospects of financial condition of Borrower or any of its Subsidiaries, individually or in the aggregate;

 

(iii)              Borrower or any of its Subsidiaries, pursuant to or within the meaning of Title 11, U.S. Code, or any similar Federal, foreign or state law for the relief of debtors generally (collectively, “Bankruptcy Law”), (A) commences a voluntary case, (B) consents to the entry of an order for relief against it in an involuntary case, (C) consents to the appointment of a receiver, trustee, assignee, liquidator or similar official for substantially all of its assets (a “Custodian”), (D) makes a general assignment for the benefit of its creditors or (E) admits in writing that it is generally unable to pay its debts as they become due;

 

(iv)              a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that (A) is for relief against Borrower or any of its Subsidiaries in an involuntary case, (B) appoints a Custodian of Borrower or any of its Subsidiaries for substantially all of its assets, or (C) orders the liquidation of Borrower or any of its Subsidiaries;

 

(v)              a final judgment or judgments for the payment of money aggregating in excess of $250,000 are rendered against Borrower or any of its Subsidiaries and which judgments are not, within sixty (60) days after the entry thereof, bonded, discharged or stayed pending appeal, or are not discharged within sixty (60) days after the expiration of such stay; provided, however, that any judgment which is covered by insurance or an indemnity from a credit worthy party shall not be included in calculating the $250,000 amount set forth above; and

 

(vi)              Borrower breaches any covenant or other term or condition or any material representation or warranty of any of the Transaction Documents, except, in the case of a breach of a covenant or other term or condition which is curable, and provided that Borrower delivers prompt notice of such breach to the Holder, only if such breach continues for a period of at least ten (10) consecutive Business Days.

(b)           Acceleration.  Upon the occurrence of an Event of Default under this Note, Holder shall have, at its option, the right, without further notice or demand, which Borrower hereby expressly waives, to declare the unpaid principal and interest immediately due and payable and to exercise any other rights and remedies that Holder may have.  Holder’s failure to accelerate the payment of this Note upon the occurrence of one or more events of default shall not constitute a waiver of Holder’s right to exercise such options at any subsequent time with respect to the same or any other event of default.  Holder’s acceptance of any payment under this Note which is less than payment in full of all amounts then due and payable shall not constitute a waiver by Holder of any right to declare a default hereunder or to pursue any remedy available under this Note, at law or in equity, or under any other agreement, instrument or document entered into by and between Borrower and Holder.

 

  

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(4)           Notices; Payments.

(a)           Notices.  Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto prior to 5:30 p.m. (Pacific time) on a Business Day, (b) the next Business Day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto on a day that is not a Business Day or later than 5:30 p.m. (Eastern time) on any Business Day, (c) the 2nd  Business Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service, or (d) upon actual receipt by the party to whom such notice is required to be given.  The address for such notices and communications shall be as set forth below:

If to Borrower:

Bureau of Fugitive Recovery, Inc.

132 W. 11th Avenue

Denver, Colorado 80204

Or such other address as Borrower may provide to Holder for notices purposes after the issuance of this Note.

If to Holder:

_________________

_________________

_________________

(b)            Payments.  Whenever any payment of cash is to be made by Borrower to any Person pursuant to this Note, such payment shall be made in lawful money of the United States of America by a check drawn on the account of Borrower and sent via overnight courier service to such Person at the address provided for notice pursuant to Section 13(a) above, or as subsequently provided to the other party in writing; provided that the Holder may elect to receive a payment of cash via wire transfer of immediately available funds by providing Borrower with prior written notice setting out such request and the Holder's wire transfer instructions.  Whenever any amount expressed to be due by the terms of this Note is due on any day which is not a Business Day, the same shall instead be due on the next succeeding day which is a Business Day.

 

  

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(5)           Cancellation.  After all principal, interest and other amounts at any time owed on this Note have been indefeasibly paid in full, this Note shall automatically be deemed canceled, shall be surrendered to Borrower for cancellation and shall not be reissued, and the security interest granted in the Collateral shall terminate.  The Holder agrees to promptly execute, file and/or deliver any and all documents reasonably required or requested to further evidence such termination.

(6)           Waivers by Borrower.  Borrower (a) waives diligence, grace, demand, presentment for payment, exhibition of this Note, protest, notice of protest, notice of dishonor, notice of demand, notice of nonpayment, and any or all other notices whatsoever, and any and all exemption rights against the indebtedness evidenced by this Note; (b) agrees to any and all extensions or renewals from time to time without notice and to any partial payments of this Note; (c) consents to offsets of any sums owed to Borrower by Holder at any time and to any release of all or any part of the security for this Note, or to any release of any party liable for payment of this Note; and (d) agrees that any such waiver, extension, renewal, release, consent, or partial payment may be made without notice to Borrower or any other party and shall not release or discharge any one or all of them from the obligation of payment of this Note or any installment of this Note or any other liability under this Note.  Any security given for the obligations of Borrower may be waived, exchanged, surrendered or otherwise dealt with by Holder without affecting the liability of Borrower or any other party who might subsequently become liable hereon.

(7)           Governing Law; Jurisdiction; Severability; Jury Trial.  This Note shall be construed and enforced in accordance with, and all questions concerning the construction, validity, interpretation and performance of this Note shall be governed by, the internal laws of the State of California, without giving effect to any choice of law or conflict of law provision or rule that would cause the application of the laws of any jurisdictions other than the State of California.  Borrower hereby irrevocably submits to the exclusive jurisdiction of the Commercial Court sitting in the City of San Diego, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper.  Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law.  In the event that any provision of this Note is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law.  Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of this Note.  Nothing contained herein shall be deemed or operate to preclude the Holder from bringing suit or taking other legal action against Borrower in any other jurisdiction to collect on Borrower's obligations to the Holder, to realize on any collateral or any other security for such obligations, or to enforce a judgment or other court ruling in favor of the Holder.

(8)           Usury Savings.  Borrower and Holder intend to contract in compliance with all state and federal usury laws governing the loan evidenced by this Note.  Holder and Borrower agree that none of the terms of this Note shall be construed to require payment of interest at a rate in excess of the maximum interest rate allowed by any applicable state, federal or foreign usury laws.  If Holder receives sums which constitute interest that would otherwise increase the effective interest rate on this Note to a rate in excess of that permitted by any applicable law, then all such sums constituting interest in excess of the maximum lawful rate shall at Holder’s option either be credited to the payment of principal or returned to Borrower.  The provisions of this Section 9 control the other provisions of this Note and any other agreement between Borrower and Holder.

 

  

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(9)           Severability.  All provisions hereof are severable.  If any provision hereof is declared invalid for any reason, that invalidity shall not affect any other provision of this Note, all of which shall remain in full force and effect.

(10)         Successors and Assigns.  Subject to the restrictions on transfer described in Section 11 below, the rights and obligations of the Borrower and Holder shall be binding upon and benefit the successors, assigns, heirs, administrators and transferees of the parties.

(11)         Assignment by Borrower.  Neither this Note nor any of the rights, interests or obligations hereunder may be assigned, by operation of law or otherwise, in whole or in part, by the Borrower without the prior written consent of Holder.

 

 

IN WITNESS WHEREOF, Borrower has caused this Note to be duly executed as of the set forth above.

 

 

BUREAU OF FUGITIVE RECOVERY, INC.

By:_______________________________

      Jay Kelman, its Chief Executive Officer

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