Document:

Exhibit 10.1

FORM OF ESCROW AGREEMENT

UMB Bank, N.A.

1010 Grand Blvd., 4th Floor

Mail Stop: 1020409

Kansas City, MO 64106

     

Re: ICON Oil & Gas Fund-[_] L.P.

Ladies and Gentlemen:

ICON OIL & GAS FUND-[_] L.P., a Delaware limited partnership (the “Company”), proposes to offer and sell up to 16,000 investor general partner interests and up to 4,000 limited partner interests (collectively, the “Interests”) in a public offering (the “Offering”) of Interests pursuant to a registration statement on Form S-1 (the “Registration Statement”) filed by the Company with the Securities and Exchange Commission (the “SEC”).  ICON Securities Corp., a Delaware corporation (the “Dealer Manager”), will act as dealer manager for the offering of Interests. The Company is entering into this agreement to set forth the terms on which UMB BANK, N.A. (the “Escrow Agent”) will, except as otherwise provided herein, hold and disburse the proceeds from subscriptions for the purchase of Interests in the Offering until such time as:  (i) in the case of subscriptions received from non-affiliates of the Company, the Company has received subscriptions for 200 Interests  (the “Minimum Offering”) and (ii) in the case of subscriptions received from residents of the Commonwealth of Pennsylvania (“Pennsylvania Subscribers”), the Company has received subscriptions for 1,000 Interests (the “Pennsylvania Minimum Offering”).

The Escrow Agent has engaged DST Systems, Inc., a Massachusetts corporation (the “Processing Agent”) to receive, examine for “good order” and facilitate subscriptions deposited into the Escrow Account (defined below) as further described herein and to act as record keeper, solely in the capacity of agent for the Escrow Agent and not in any capacity on behalf of the Company or the Dealer Manager, nor shall it have any interest other than that provided in this Agreement in assets in the Processing Agent’s possession as the agent of the Escrow Agent.

The Company hereby appoints UMB Bank, N.A. as Escrow Agent for purposes of holding the proceeds from the subscriptions for Interests, on the terms and conditions hereinafter set forth:

1. (a) Until such time as the Company has received subscriptions for Interests in an amount equal to the Minimum Offering and such funds are disbursed from the Escrow Account (as defined below) in accordance with paragraph 3(a) hereof, persons subscribing to purchase Interests ( “Subscribers”) will be instructed by the Dealer Manager or any soliciting dealers to remit the purchase price in the form of checks, drafts, wires, Automated Clearing House (ACH) or money orders (hereinafter “instruments of payment”) payable to the order of “UMB Bank, N.A., Agent for ICON O&G Fund-[_]” or a recognizable contraction or abbreviation thereof, including but not limited to, “UMB Bank, N.A. f/b/o ICON O&G Fund-[_].”  After subscriptions for Interests in an amount equal to the Minimum Offering are received and such funds are disbursed from the Escrow Account in accordance with paragraph 3(a) hereof, subscriptions shall continue to be so submitted unless otherwise instructed by the Dealer Manager.  Any checks, drafts or money orders received made payable to a party other than the Escrow Agent (or after the Minimum Offering is achieved, made payable to a party other than the party designated by the Dealer Manager) shall be returned to the soliciting dealer that submitted the check, draft or money order.  Within one (1) business day after receipt of instruments of payment from the Offering, the Dealer Manager, the Company or their respective agents will (a) send to the Escrow Agent each Subscriber’s name, address, number of Interests purchased, and purchase price remitted, and (b) the Escrow Agent will deposit the instruments of payment from such Subscribers into an interest-bearing deposit account entitled “Escrow Account for the Benefit of Subscribers for Interests of ICON O&G Fund-[_]” (the “Escrow Account”), which deposit shall occur within one (1) business day after the Escrow Agent’s receipt of the instrument of payment, until such Escrow Account has closed pursuant to paragraph 3(a) hereof.

 

  

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(b) The Escrow Agent agrees to maintain the funds contributed by the Pennsylvania Subscribers (“Pennsylvania Subscriptions”) in a manner in which they may be separately accounted for by the records of the Processing Agent so that the requirements of Sections 3 of this Agreement can be met.   The Escrow Account will be established and maintained in such a way as to permit the interest income calculations described in paragraph 7.

2. The Escrow Agent agrees to promptly process for collection the instruments of payment upon deposit into the Escrow Account.  Deposits shall be held in the Escrow Account until such funds are disbursed in accordance with paragraph 3 hereof.  If any of the instruments of payment are returned to the Escrow Agent for nonpayment prior to achieving the Minimum Offering or, in connection with Pennsylvania Subscriptions, the Pennsylvania Minimum Offering, the Escrow Agent shall promptly notify the Dealer Manager and the Company in writing via mail, email or facsimile of such nonpayment, and is authorized to debit the Escrow Account, in the amount of such returned payment as well as any interest earned on the amount of such payment.  In the event that instruments of payment are returned for nonpayment, the Escrow Agent is authorized to debit the Escrow Account, in accordance with this paragraph 2.

 

3. (a) (i) Subject to the provisions of subparagraphs 3(b)-3(e) below, once the Minimum Offering has been achieved and upon receiving written instruction from the Company, the Escrow Agent shall (A) disburse to the Company, by check  or wire transfer, the funds in the Escrow Account representing the gross purchase price for the Interests purchased excluding Pennsylvania Subscriptions, and (B) promptly disburse to the Company any interest thereon excluding interest attributable to Pennsylvania Subscriptions.  After such time the Escrow Account shall remain open and the Company shall continue to cause subscriptions for the purchase of Interests to be deposited in the Escrow Account, and thereafter any subscription documents and instruments of payment received by the Escrow Agent from Subscribers other than Pennsylvania Subscribers shall be forwarded directly to the Company or its agent, as so instructed.  For purposes of this Agreement, the term “collected funds” shall mean all funds received by the Escrow Agent that have cleared normal banking channels and are in the form of cash or cash equivalent.  After the satisfaction of the foregoing provisions of this paragraph 3(a)(i), in the event the Company receives subscriptions made payable to the Escrow Agent (other than Pennsylvania Subscriptions), subscription proceeds may continue to be received in this account generally, but to the extent such proceeds shall not be subject to escrow due to the satisfaction of the aforementioned provisions of this paragraph 3(a)(i), such proceeds are not subject to this Escrow Agreement and at the instruction of the Company or its agent to the Escrow Agent shall be transferred from the Escrow Account or deposited directly into, as the case may be, a commercial deposit account in the name of the Company with the Escrow Agent (the “Deposit Account”) that has been previously established by the Company, unless otherwise directed by the Company.  The Company hereby covenants and agrees that it shall take commercially reasonable efforts to establish the Deposit Account.  No provisions of this Escrow Agreement shall apply to the Deposit Account.

(ii) regardless of any release of funds from the Escrow Account, the Company, the Dealer Manager and soliciting dealers shall continue to forward instruments of payment received from Pennsylvania Subscribers for deposit into the Escrow Account to the Escrow Agent until such time as the Company notifies the Escrow Agent in writing that the Pennsylvania Minimum Offering has been achieved. Within five days after receipt by the Escrow Agent of such notice, the Escrow Agent shall (A) disburse to the Company, by check or wire transfer, the funds then in the Escrow Account representing the gross purchase price for the Pennsylvania Minimum Offering, and (B) promptly disburse to the Company any interest thereon.  Following such disbursements, any instruments of payment received by the Escrow Agent from Pennsylvania Subscribers shall not be subject to this Escrow Agreement and shall be deposited directly into the Escrow Account or the Deposit Account, as instructed in writing by the Company pursuant to subparagraph 3(a)(i) above.

  

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(b) Within four business days of the close of business on the date that is one year following commencement of the Offering (the “Expiration Date”), the Company shall promptly notify the Escrow Agent if the Minimum Offering has not been achieved.  Within five (5) calendar days following the date of such notice, the Escrow Agent shall, unless otherwise directed in writing by the Company, promptly return directly to each Subscriber the collected funds deposited in the Escrow Account  on behalf of such Subscriber (unless earlier disbursed in accordance with paragraph 3(c)), or shall return the instruments of payment delivered, but not yet processed for collection prior to such time, in either case, together with interest income (which interest shall be paid within five (5) business days after the first business day of the succeeding month) in the amounts calculated pursuant to paragraph 7 for each Subscriber at the address provided by the Dealer Manager or the Company to the Escrow Agent, which the Escrow Agent shall be entitled to rely upon.  Notwithstanding the above, in the event that the Escrow Agent has not received an executed IRS Form W-9 at such time for each Subscriber, the Escrow Agent shall remit an amount to the Subscribers in accordance with the provisions hereof, withholding the applicable percentage for backup withholding required by the Internal Revenue Code, as then in effect, from any interest income on subscription proceeds (determined in accordance with paragraph 7) attributable to each Subscriber for whom the Escrow Agent does not possess an executed IRS Form W-9.  However, the Escrow Agent shall not be required to remit any payments until the Escrow Agent has collected funds represented by such payments.

(c) Notwithstanding subparagraphs 3(a) and 3(b) above, the Company shall notify the Escrow Agent in writing if the Pennsylvania Minimum Offering has not been achieved on or before the close of business on such date that is 120 days after commencement of the Offering (the Company will notify the Escrow Agent of the commencement date of the Offering) (the “Initial Escrow Period”).  Thereafter, the Company shall send to each Pennsylvania Subscriber by certified mail within two (2) business days after the end of the Initial Escrow Period a notification in the form of Exhibit A.  If, pursuant to such notification, a Pennsylvania Subscriber requests the return of his or her subscription funds within five (5) calendar days after receipt of the notification (the “Request Period”), the Escrow Agent shall promptly refund directly to each Pennsylvania Subscriber the collected funds deposited in the Escrow Account on behalf of such Pennsylvania Subscriber or shall return the instruments of payment delivered, but not yet processed for collection prior to such time, to the address provided by the Dealer Manager or the Company or their respective agents to the Escrow Agent, which the Escrow Agent shall be entitled to rely upon, together with interest income (which interest shall be paid within five business days after the first business day of the succeeding month) in the amounts calculated pursuant to paragraph 7.   Notwithstanding the above, if the Escrow Agent has not received an executed IRS Form W-9 is for such Pennsylvania Subscriber, the Escrow Agent shall thereupon remit an amount to such Pennsylvania Subscriber in accordance with the provisions hereof, withholding the applicable percentage for backup withholding required by the Internal Revenue Code, as then in effect, from any interest income earned on subscription proceeds (determined in accordance with paragraph 7) attributable to such Pennsylvania Subscriber.  However, the Escrow Agent shall not be required to remit such payments until the Escrow Agent has collected funds represented by such payments.

(d) The subscription funds of Pennsylvania Subscribers who do not request the return of their subscription funds within the Request Period shall remain in the Escrow Account for successive 120-day escrow periods (a “Successive Escrow Period”), each commencing automatically upon the termination of the prior Successive Escrow Period, and the Company and Escrow Agent shall follow the notification and payment procedure set forth in subparagraph 3(c) above with respect to the Initial Escrow Period for each Successive Escrow Period until the occurrence of the earliest of (i) the Expiration Date, (ii) the Pennsylvania Minimum Offering being achieved, or (iii) all funds held in the Escrow Account having been returned to the Pennsylvania Subscribers in accordance with the provisions hereof.

(e) If the Company rejects any subscription for which the Escrow Agent has collected funds, the Escrow Agent shall, upon the written request of the Company, promptly issue a refund to the rejected Subscriber at the address provided by the Dealer Manager or the Company, which the Escrow Agent shall be entitled to rely upon.  If the Company rejects any subscription for which the Escrow Agent has not yet collected funds, but has submitted the Subscriber’s check for collection, the Escrow Agent shall promptly return the funds in the amount of the Subscriber’s check to the rejected Subscriber, at the address provided by the Dealer Manager or the Company or their respective agents, which the Escrow Agent shall be entitled to rely upon, after such funds have been collected.  If the Escrow Agent has not yet submitted a rejected Subscriber’s check for collection, the Escrow Agent shall promptly remit the Subscriber’s check directly to the Subscriber.

  

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4. The Escrow Agent shall provide to the Company monthly statements (or more frequently as reasonably requested by the Company) on the account balance in the Escrow Account and the activity in such account since the last report. The Escrow Agent will provide access to its   Web Exchange program to allow the Company to view account balances for the Escrow Account at any time.

5. Prior to the disbursement of funds deposited in the Escrow Account in accordance with the provisions of paragraph 3 hereof, the Escrow Agent shall invest all of the funds deposited as well as earnings and interest derived therefrom in the Escrow Account, as applicable, in the “Short-Term Investments” specified below at the written direction of the Company, unless the costs to the Company for the making of such investment are reasonably expected to exceed the anticipated interest earnings from such investment in which case the funds and interest thereon shall remain in the respective escrow account until the balance in the respective escrow account reaches the minimum amount necessary for the anticipated interest earnings from such investment to exceed the costs to the Company for the making of such investment, as determined by the Company based upon applicable interest rates.

“Short-Term Investments” include obligations of, or obligations guaranteed by, the United States government or bank money-market accounts or certificates of deposit of national or state banks that have deposits insured by the Federal Deposit Insurance Corporation (including certificates of deposit of any bank acting as a depository or custodian for any such funds) which mature on or before the Expiration Date, unless such instrument cannot be readily sold or otherwise disposed of for cash by the Expiration Date without any dissipation of the offering proceeds invested. Without limiting the generality of the foregoing, Exhibit B hereto sets forth specific Short-Term Investments that shall be deemed permissible investments hereunder.

The following securities are not permissible investments:

(a) money market funds;

(b) corporate equity or debt securities;

(c) repurchase agreements;

(d) bankers’ acceptances;

(e) commercial paper; and

(f) municipal securities.

It is hereby expressly agreed and stipulated by the parties hereto that the Escrow Agent shall not be required to exercise any investment discretion hereunder and shall have no investment or management responsibility and, accordingly, shall have no duty to, or liability for its failure to, provide investment recommendations or investment advice to the parties hereto. It is the intention of the parties hereto that, except as otherwise provided in paragraph 9, the Escrow Agent shall never be required to use, advance or risk its own funds or otherwise incur financial liability in the performance of any of its duties or the exercise of any of its rights and powers hereunder.

6. The Escrow Agent is entitled to rely upon written instructions received from the Company or the Dealer Manager or their respective agents, unless the Escrow Agent has actual knowledge that such instructions are not valid or genuine; provided that, if in the Escrow Agent’s opinion, any instructions from the Company or the Dealer Manager or their respective agents are unclear, the Escrow Agent may request clarification from the Company or the Dealer Manager or their respective agents, as applicable, prior to taking any action, and if such instructions continue to be unclear, the Escrow Agent may rely upon written instructions from the Company’s legal counsel in distributing or continuing to hold any funds.  However, the Escrow Agent shall not be required to disburse any funds attributable to instruments of payment that have not been processed for collection, until such funds are collected and then shall disburse such funds in compliance with the disbursement instructions from the Company or the Dealer Manager or their respective agents.

 

  

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7. If the Offering terminates prior to achieving the Minimum Offering or one or more Pennsylvania Subscribers elects to have his or her subscription returned in accordance with paragraph 3, interest income earned on subscription proceeds deposited in the Escrow Account (the “Escrow Income”), , shall be remitted to Subscribers to the address provided by the Dealer Manager or the Company to the Escrow Agent, which the Escrow Agent shall be entitled to rely upon, or to the Company if the applicable Subscriber’s funds have been held in escrow by the Escrow Agent for less than thirty five (35) calendar days, in accordance with paragraph 3 and without any deductions for escrow expenses.  The Company shall reimburse the Escrow Agent for all reasonable and documented escrow expenses.  If the Escrow Agent remits interest income pursuant to this Agreement, the Escrow Agent shall be responsible for any necessary federal tax reporting associated with such income; provided, however, that the Escrow Agent shall not be responsible for any other tax reporting associated with this Agreement. The Escrow Agent shall remit all such Escrow Income in accordance with paragraph 3. If the Company chooses to leave the Escrow Account open after achieving the Minimum Offering then it shall make regular acceptances of subscriptions therein, but no less frequently than monthly, and the Escrow Income from the last such acceptance shall be calculated and remitted to the Subscribers or the Company, as applicable, pursuant to the provisions of paragraph 3.

8. The Escrow Agent shall receive compensation from the Company as set forth in Exhibit C attached hereto, which such Exhibit C is hereby incorporated by reference.

9. In performing any of its duties hereunder, the Escrow Agent shall not incur any liability to anyone for any damages, losses, or expenses, except for willful misconduct, breach of trust, or gross negligence. Accordingly, the Escrow Agent shall not incur any such liability with respect to any action taken or omitted (a) in good faith upon advice of the Escrow Agent’s counsel given with respect to any questions relating to the Escrow Agent duties and responsibilities under this Agreement, or (b) in reliance upon any instrument, including any written instrument or instruction provided for in this Agreement, not only as to its due execution and validity and effectiveness of its provisions but also as to the truth and accuracy of information contained therein, which the Escrow Agent shall in good faith believe to be genuine, to have been signed or presented by a proper person or persons and to conform to the provisions of this Agreement.

10. The Company hereby agrees to indemnify and hold the Escrow Agent harmless against any and all losses, claims, damages, liabilities, and expenses, including reasonable attorneys’ fees and disbursements, that may be imposed on or incurred by the Escrow Agent in connection with acceptance of appointment as the Escrow Agent hereunder, or the performance of the duties hereunder, including any litigation arising from this Agreement or involving the subject matter hereof, except where such losses, claims, damages, liabilities, and expenses result from willful misconduct, breach of trust, or gross negligence.

11.  The Escrow Agent, or any successor to it hereafter appointed, may at any time resign and be discharged from the duties and obligations under this Agreement by giving at least thirty (30) days prior written notice to the Company and accounting in full for all sums delivered to, and held by, it and all earnings thereon while acting as the Escrow Agent hereunder.  The Escrow Agent may be removed at any time upon sixty (60) days prior written notice by any instrument purportedly signed by an authorized representative of the Company.  Any successor Escrow Agent shall deliver to the Escrow Agent, the Company and the Dealer Manager a written instrument accepting such appointment hereunder and shall accept delivery of the Escrow Account to hold and distribute same in accordance with the terms of this Agreement.  If no successor Escrow Agent shall have been appointed within thirty (30) days after the Company receives notice of the Escrow Agent’s intention to resign or within sixty (60) days of the Escrow Agent’s receipt of notice of its removal, the Escrow Agent shall deliver all amounts deposited with it in the Escrow Account and all earnings thereon to a national bank with a net worth of not less than $100,000,000 that is designated by the Escrow Agent and has agreed in writing to accept such monies and to act as substitute Escrow Agent in compliance with the terms of this Agreement.  Upon such delivery and acceptance, the Escrow Agent shall be discharged from any future obligations under this Agreement.

12. All communications and notices required or permitted by this Agreement shall be in writing and shall be deemed to have been given when delivered personally or by messenger or by overnight delivery service or when received via telecopy or other electronic transmission, in all cases addressed to the person for whom it is intended at such person’s address set forth below or to such other address as a party shall have designated by notice in writing to the other party in the manner provided by this paragraph:

(a) if to the Company:

ICON Oil & Gas Fund-[_] L.P.

c/o ICON Oil & Gas GP, LLC

  

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100 Fifth Avenue, 4th Floor

New York, NY 10011

Fax: (212) 418-4739

Attention: Chief Executive Officer

(b) if to the Dealer Manager:

ICON Securities Corp.

120 Fifth Avenue, 8th Floor

New York, NY 10011

Fax: (212) 300-9681

Attention: President

(c) if to the Escrow Agent:

UMB Bank, N.A.

Corporate Trust & Escrow Services

1010 Grand Blvd., 4th Floor

Mail Stop: 1020409

Kansas City, MO 64106

Attention: Lara Stevens

Each party hereto may, from time to time, change the address to which notices to it are to be delivered or mailed hereunder by notice in accordance herewith to the other parties.

13. This Agreement shall be governed by the laws of the State of New York as to both interpretation and performance without regard to the conflict of laws rules thereof.

14. The provisions of this Agreement shall be binding upon the legal representatives, successors, and assigns of the parties hereto.

15. The Company and the Dealer Manager hereby acknowledge that UMB Bank, N.A. is serving as Escrow Agent only for the limited purposes herein set forth, and hereby agree that they will not represent or imply that, by serving as Escrow Agent hereunder or otherwise, have investigated the desirability or advisability of investment in the Company or have approved, endorsed, or passed upon the merits of the Interests or the Company.

16. This Agreement and any amendment hereto may be executed by the parties hereto in one or more counterparts, each of which shall be deemed to be an original.

17. The Escrow Agent shall be bound only by the terms of this Escrow Agreement and shall not be bound by or incur any liability with respect to any other agreements or understanding between any other parties, whether or not the Escrow Agent has knowledge of any such agreements or understandings.

18. The liability and indemnification provisions set forth herein shall survive the termination of this Agreement.

19. In the event that any part of this Agreement is declared by any court or other judicial or administrative body to be null, void, or unenforceable, said provision shall survive to the extent it is not so declared, and all of the other provisions of this Agreement shall remain in full force and effect.

20. Unless otherwise provided in this Agreement, final termination of this Escrow Agreement shall occur on the date that all funds held in the Escrow Account are distributed and the Company has informed the Escrow Agent in writing to close the Escrow Account pursuant to paragraph 3 hereof.

21. Neither the Escrow Agent, nor its agents, shall have responsibility for accepting, rejecting, or approving subscriptions.  The Escrow Agent or its agent (including the Processing Agent) on its behalf shall complete an OFAC search, in compliance with its policy and procedures, of each subscription and shall inform the Company if a subscription fails the OFAC search.  The Dealer Manager shall provide a copy of each subscription agreement in order that the Escrow Agent, or its agent, may perform such OFAC search.

  

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22. This Agreement shall not be modified, revoked, released, or terminated unless reduced to writing and signed by all parties hereto, subject to the following paragraph.

23. The Company shall provide to Escrow Agent any documentation and information reasonably requested by the Escrow Agent for it to comply with the USA Patriot Act of 2001, as amended from time to time.

 

[Signature page follows]

  

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Agreed to as of the ___day of September, 2011.

	  	
ICON OIL & GAS FUND-[_] L.P.

 

By: ICON Oil & Gas GP, LLC, its

General Partner 

	 	 
	  	
By:  

	  
	  	  	
Michael A. Reisner

Co-Chief Executive Officer and Co-President 

	  
	  	
ICON SECURITIES CORP.

	 	 
	  	
By:  

	  
	  	  	
Douglas S. Crossman 

	  	  	
President 

 

The terms and conditions contained above are hereby accepted and agreed to by:

UMB Bank, N.A. as Escrow Agent

	
By:  

	  
	
Name:  

	  
	
Title:  

	  

  

8Exhibit 10.1

                            ASSET PURCHASE AGREEMENT

THIS AGREEMENT dated the 19th day of September, 2011.

BETWEEN:

          LAGUNA FINANCE LTD.

          (the "VENDOR")

                                                               OF THE FIRST PART

AND:
          SIGA RESOURCES INC.

          (the "PURCHASER")

                                                              OF THE SECOND PART

WHEREAS:

A. The Vendor is the registered and beneficial owner of various mineral claims
(hereinafter the "CLAIMS"), collectively called the Montauban Gold Claims. The
Claims of the Vendor are more particularly described in Schedule "A" attached
hereto and forming part of this Agreement;

B. The Vendor has agreed to sell and the Purchaser has agreed to purchase 100%
of the Claims of the Vendor in accordance with the terms of this Agreement.

NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the terms and
covenants herein and other good and valuable consideration, the receipt and
sufficiency of which each party acknowledges, the parties hereto agree as
follows:

1. PURCHASE AND SALE OF ASSETS

1.1 SALE OF ASSETS. Subject to the terms and conditions of this Agreement, the
Vendor hereby sells, assigns and transfers to the Purchaser, and the Purchaser
hereby purchases the Vendor's Claims.

1.2 PURCHASE PRICE. The purchase price payable by the Purchaser to the Vendor
for the Vendor's Claims is 10,000,000 restricted shares of common stock of Siga
Resources Inc. (the "Shares") at a deemed value of $2.00 per share for a total
deemed value of $20,000,000 (the "PURCHASE PRICE"), subject to a carried 1.5%
Net Smelter Royalty as described in Appendix "A".

1.3 PAYMENT OF THE PURCHASE PRICE. The Purchase Price will be paid by the
issuance of the Shares on or before September 30, 2011.
<PAGE>
1.4 DELIVERY OF CLAIMS. The Vendor delivers to the Purchaser, on execution
hereof, all of the Claims unconditionally and free and clear of all liens,
charges, or encumbrances, except where disclosed.

2. COVENANTS OF THE PARTIES

2.1 COVENANTS. The parties undertake to keep the information with respect to
this Agreement, the terms herein, and any related, underlying or subsequent
agreements (the "INFORMATION") confidential and not to directly or indirectly
disclose the Information at any time to any person or persons or use the
Information for any purpose whatsoever.

3. REPRESENTATIONS OF THE VENDOR

3.1 REPRESENTATIONS. The Vendor represents and warrants to the Purchaser as
follows, with the intent that the Purchaser will rely on the representations in
entering into this Agreement, and in concluding the purchase and sale
contemplated by this Agreement:

     (a)  CAPACITY TO SELL. The Vendor has the power and capacity to own and
          dispose of the Claims and to enter into this Agreement and carry out
          its terms to the full extent;

     (b)  AUTHORITY TO SELL. The execution and delivery of this Agreement, and
          the completion of the transaction contemplated by this Agreement has
          been duly and validly authorized by all necessary corporate action on
          the part of the Vendor, and this Agreement constitutes a legal, valid
          and binding obligation of the Vendor enforceable against the Vendor in
          accordance with its terms except as may be limited by laws of general
          application affecting the rights of creditors;

     (c)  SALE WILL NOT CAUSE DEFAULT. Neither the execution and delivery of
          this Agreement, nor the completion of the purchase and sale
          contemplated by this Agreement will:

          (i)  violate any of the terms and provisions of the constating
               documents or bylaws or articles of the Vendor, or any order,
               decree, statute, bylaw, regulation, covenant, restriction
               applicable to the Vendor or the Claims;

          (ii) give any person the right to terminate, cancel or otherwise deal
               with the Claims; or

          (iii) result in any fees, duties, taxes, assessments or other amounts
               relating to the Claims becoming due or payable other than tax
               payable by the Purchaser in connection with the purchase and
               sale;

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<PAGE>
     (d)  ENCUMBRANCES. The Vendor owns and possesses and has a good marketable
          title to the Claims free and clear of all legal claims, mortgages,
          liens, charges, pledges, security interest, encumbrances or other
          claims, except where as disclosed;

     (e)  LITIGATION. There is no litigation or administrative or governmental
          proceeding or inquiry pending or, to the knowledge of the Vendor,
          threatened against or relating to the Claims, nor does the Vendor know
          of or have reasonable grounds that there is any basis for any such
          action, proceeding or inquiry;

     (f)  NO DEFAULTS. Except as otherwise expressly disclosed in this Agreement
          there has not been any default in any obligation to be performed under
          any of the Claims, which are in good standing and in full force and
          appropriate effect; and

     (g)  GOOD STANDING. Prior to closing this Agreement, the Vendor will
          maintain, as required, the Claims in good standing.

4. COVENANTS OF THE VENDOR

4.1 PROCURE CONSENTS. The Vendor will diligently and expeditiously take all
reasonable steps requested by the Purchaser to obtain all necessary consents to
effect the transfer of the Claims.

4.2 COVENANT OF INDEMNITY. The Vendor will indemnify and hold harmless the
Purchaser from and against:

     (a)  any and all liabilities, whether accrued, absolute, contingent or
          otherwise, existing at closing and which are not agreed to be assumed
          by the Purchaser under this Agreement;

     (b)  any and all losses, claims, damages and costs incurred or suffered by
          the Purchaser arising out of the breach or inaccuracy of any
          representation or warranty of the Vendor contained in this Agreement;
          and

     (c)  any and all actions, suits, proceedings, demands, assessments,
          judgments, costs and legal and other expenses incident to any of the
          foregoing.

4.3 EXECUTION OF ALL NECESSARY DOCUMENTS. The Vendor will execute all necessary
documents including such assignments as the Purchaser may require to effect the
transfer of all of the Claims, including but not limited to, internet contracts
and internet names.

                                       3
<PAGE>
5. REPRESENTATIONS OF THE PURCHASER

5.1 REPRESENTATIONS. The Purchaser represents and warrants to the Vendor as
follows, with the intent that the Vendor will rely on these representations and
warranties in entering into this Agreement, and in concluding the purchase and
sale contemplated by this Agreement:

     (a)  STATUS OF PURCHASER. The Purchaser is a corporation duly incorporated,
          validly existing and in good standing and has the power and capacity
          to enter into this Agreement and carry out its terms; and

     (b)  AUTHORITY TO PURCHASE. The execution and delivery of this Agreement
          and the completion of the transaction contemplated by this Agreement
          has been duly and validly authorized by all necessary corporate action
          on the part of the Purchaser, and this Agreement constitutes a legal,
          valid and binding obligation of the Purchaser enforceable against the
          Purchaser in accordance with its terms except as limited by laws of
          general application affecting the rights of creditors.

6. COVENANTS OF THE PURCHASER

6.1 CONSENTS. The Purchaser will at the request of the Vendor execute and
deliver such applications for consent and such assumption agreements, and
provide such information as may be necessary to obtain the consents referred to
in paragraph 4.1 and will assist and cooperate with the Vendor in obtaining the
consents.

6.2 EXECUTION OF ALL NECESSARY DOCUMENTS. The Purchaser will execute all
necessary documents as the Vendor may require to effect the transfer of all of
the Claims.

7. SURVIVAL OF REPRESENTATIONS AND COVENANTS

7.1 VENDOR'S REPRESENTATIONS AND COVENANTS. All representations, covenants and
agreements made by the Vendor in this Agreement or under this Agreement will,
unless otherwise expressly stated, survive closing and any investigation at any
time made by or on behalf of the Purchaser will continue in full force and
effect for the benefit of the Purchaser.

7.2 PURCHASER'S REPRESENTATIONS AND COVENANTS. All representations, covenants
and agreements made by the Purchaser in this Agreement or under this Agreement
will, unless otherwise expressly stated, survive closing and any investigation
at any time made by or on behalf of the Vendor and will continue in full force
and effect for the benefit of the Vendor.

8. LIABILITIES NOT ASSUMED

8.1 LIABILITIES NOT ASSUMED. The Purchaser will not assume any liabilities of
the Vendor. The Purchaser will not be responsible for any liability of the

                                       4
<PAGE>
Vendor, past, present or future, relating to the Claims, and the Vendor will
indemnify and save harmless the Purchaser from and against any such claim.

9. CONDITIONS PRECEDENT TO THE OBLIGATIONS OF THE PURCHASER

9.1 CONDITIONS. All obligations of the Purchaser under this Agreement are
subject to the fulfillment of the following conditions:

     (a)  VENDOR'S REPRESENTATIONS. The Vendor's representations contained in
          this Agreement will be true.

     (b)  VENDOR'S COVENANTS. The Vendor will have performed and complied with
          all agreements, covenants and conditions as required by this
          Agreement.

     (c)  CONSENTS. The Purchaser will have received duly executed copies of the
          consents or approvals referred to in paragraph 4.1.

9.2 EXCLUSIVE BENEFIT. The foregoing conditions are for the exclusive benefit of
the Purchaser and any such condition may be waived in whole or in part by the
Purchaser delivering to the Vendor a written waiver to that effect signed by the
Purchaser.

10. CONDITIONS PRECEDENT TO THE OBLIGATIONS OF THE VENDOR

10.1 CONDITIONS. All obligations of the Vendor under this Agreement are subject
to the fulfillment of the following conditions:

     (a)  PURCHASER'S REPRESENTATIONS. The Purchaser's representations contained
          in this Agreement will be true.

     (b)  PURCHASER'S COVENANTS. The Purchaser will have performed and complied
          with all covenants, agreements and conditions as required by this
          Agreement.

     (c)  CONSENTS OF THIRD PARTIES. All consents or approvals required to be
          obtained by the Vendor for the purpose of selling, assigning or
          transferring the Claims have been obtained, provided that this
          condition may only be relied upon by the Vendor if the Vendor has
          diligently exercised its best efforts to procure all such consents or
          approvals and the Purchaser has not waived the need for all such
          consents or approvals.

10.2 EXCLUSIVE BENEFIT. The foregoing conditions are for the exclusive benefit
of the Vendor and any such condition may be waived in whole or in part by the
Vendor delivering to the Purchaser a written waiver to that effect signed by the
Vendor.

                                       5
<PAGE>
11. GENERAL

11.1 GOVERNING LAW. This Agreement and each of the documents contemplated by or
delivered under or in connection with this Agreement are governed exclusively
by, and are to be enforced, construed and interpreted exclusively in accordance
with the laws of British Columbia which will be deemed to be the proper law of
the Agreement.

11.2 PROFESSIONAL FEES. Each of the parties will bear the fees and disbursements
of their respective lawyers, advisers and consultants engaged by them
respectively in connection with the transactions contemplated by this Agreement
prior to the closing.

11.3 ASSIGNMENT. No party will assign this Agreement, or any part of this
Agreement, without the prior written consent of the other party. Any purported
assignment without the required consent is not binding or enforceable against
any party.

11.4 ENUREMENT. This Agreement enures to the benefit of and binds the parties
and their respective successors and permitted assigns.

11.5 NOTICE. All notices required or permitted to be given under this Agreement
will be in writing and personally delivered to the address of the intended
recipient set out on the first page of this Agreement or at such other address
as may from time to time be notified by any of the parties in the manner
provided in this Agreement.

11.6 FURTHER ASSURANCES. The parties will execute and deliver all further
documents and take all further action reasonably necessary or appropriate to
give effect to the provisions and intent of this Agreement and to complete the
transactions contemplated by this Agreement.

11.7 REMEDIES CUMULATIVE. The rights and remedies under this Agreement are
cumulative and are in addition to and not in substitution for any other rights
and remedies available at law or in equity or otherwise. Any party to this
Agreement may terminate this Agreement if any other party is in breach of or
defaults under any material term or condition of this Agreement or has made a
material misrepresentation in this Agreement. No single or partial exercise by a
party of any right or remedy precludes or otherwise affects the exercise of any
other right or remedy to which that party may be entitled.

11.8 ENTIRE AGREEMENT. This Agreement constitutes the entire agreement between
the parties and there are no representations, express or implied, statutory or
otherwise and no collateral agreements other than as expressly set out or
referred to in this Agreement.

11.9 HEADINGS. The division of this Agreement into sections and the insertion of
headings are for convenience only and do not form part of this Agreement and

                                       6
<PAGE>
will not be used to interpret, define or limit the scope, extent or intent of
this Agreement.

11.10 SEVERABILITY. Each provision of this Agreement is severable. If any
provision of this Agreement is or becomes illegal, invalid or unenforceable, the
illegality, invalidity or unenforceability of that provision will not affect the
legality, validity or enforceability of the remaining provisions of this
Agreement.

11.11 SCHEDULES. The Schedules attached hereto form an integral part of this
Agreement.

11.12 TIME OF THE ESSENCE. Time will be of the essence of this Agreement.

11.13 COUNTERPARTS. This Agreement and all documents contemplated by or
delivered in connection with this Agreement may be executed and delivered by
facsimile or original and in any number of counterparts, and each executed
counterpart will be considered to be an original. All executed counterparts
taken together will constitute one agreement.

IN WITNESS WHEREOF the parties have duly executed this Agreement by their duly
authorized officers effective the first day and year written above.

VENDOR:  LAGUNA FINANCE LTD.

per:
    --------------------------------------------
    Authorized Signatory

PURCHASER:  SIGA RESOURCES INC.

per:
    --------------------------------------------
    Authorized Signatory

                                       7
<PAGE>
                                  SCHEDULE "A"

THIS IS SCHEDULE "A" to the Asset Purchase Agreement.

TITLE NO.
---------

CDC 2197161
CDC 2197162
CDC 2197163
CDC 2197164
CDC 2197165
CDC 2197166
CDC 2197167
CDC 2197168
CDC 2197169
CDC 2197170
CDC 2197171
CDC 2197172
CDC 2197173

                                       8
<PAGE>
                             APPENDIX "A" - ROYALTY

                            1.5% NET SMELTER RETURNS

1. In this Agreement, "1.5% NET SMELTER RETURNS" means 1.5% of the net amount of
money received by the Purchaser for its own account from the sale of ore, or ore
concentrates or other mineral products from the Claims to a smelter or other
mineral products buyer after deduction of smelter and/or refining charges, ore
treatment charges, penalties and any and all charges made by the purchaser of
ore, concentrates, or other mineral products, less any and all transportation
costs which may be incurred in connection with the transportation of ore or
concentrates, less all umpire charges which the purchaser may be required to
pay.

2. Payment of Net Smelter Returns by the Purchaser to the Vendor shall be made
semi-annually within 60 days after the end of each fiscal half year of the
Purchaser and shall be accompanied by unaudited financial statements pertaining
to the operations carried out by the Purchaser on the Claims. Within 90 days
after the end of each fiscal year of the Purchaser in which Net Smelter Returns
are payable to the Vendor, the records relating to the calculation of Net
Smelter Returns for such year shall be audited and any resulting adjustments in
the payment of Net Smelter Returns payable to the Vendor shall be made
forthwith. A copy of the said audit shall be delivered to the Vendor within 30
days of the end of such 90-day period.

3. Each annual audit shall be final and not subject to adjustment unless the
Vendor delivers to the Purchaser written exceptions in reasonable detail within
six months after the Vendor receives the report. The Vendor, or its
representative duly authorized in writing, at its expense, shall have the right
to audit the books and records of the Purchaser related to Net Smelter Returns
to determine the accuracy of the report, but shall not have access to any other
books and records of the Purchaser. The audit shall be conducted by a chartered
or certified public accountant of recognized standing. The Purchaser 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
report. A copy of the Vendor's report shall be delivered to the Purchaser upon
completion, and any discrepancy between the amount actually paid by the
Purchaser and the amount which should have been paid according to the Vendor's
report shall be paid forthwith, one party to the other. In the event that the
said discrepancy is to the detriment of the Vendor and exceeds 5% of the amount
actually paid by the Purchaser, then the Purchaser shall pay the entire cost of
the audit.

4. Any dispute arising out of or related to any report, payment, calculation or
audit shall be resolved solely by arbitration as provided in the Agreement. No
error in accounting or in interpretation of the Agreement shall be the basis for
a claim of breach of fiduciary duty, or the like, or give rise to a claim for
exemplary or punitive damages or for termination or rescission of the Agreement
or the estate and rights acquired and held by the Purchaser under the terms of
the Agreement.

                                       9

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