Document:

uree_ex1020.htm

Exhibit 10.20

 

SETTLEMENT AGREEMENT AND GENERAL RELEASE

 

THIS SETTLEMENT AGREEMENT AND GENERAL RELEASE (the “Agreement”) is made and entered into on the 15th day of March 2013 (the “Effective Date”), by and among U.S. Rare Earths, Inc., a Nevada corporation (“USRE” or “the Company”), on the one hand, and H. Deworth Williams (“D. Williams”), Edward F. Cowle (“Cowle”), Geoff Williams (“G. Williams”), and Blue Cap Development Corp., a Nevada corporation (“Blue Cap”)  (collectively referred to herein as “Defendants”), on the other.

 

WHEREAS, USRE filed a complaint in the Eighth Judicial District Court in Clark County, Nevada against Defendants D. Williams, Cowle, G. Williams, and Blue Cap, Case No. A-12-668230-B (the “Nevada Litigation”), alleging, among other things, claims for declaratory relief and breach of fiduciary duty;

 

WHEREAS, Defendants D. Williams and Cowle filed a Verified Petition for Extraordinary Relief or, Alternatively, For Issuance of a Writ of Mandamus in the Third Judicial District Court in and for Salt Lake County in the State of Utah, a case subsequently removed to the United States District Court for the District of Utah, Case No. 2:12-cv-00905-RJS (the “Utah Litigation”);

 

WHEREAS, Defendants filed numerous counterclaims in the Nevada Litigation and brought in other individuals from whom they are seeking derivative relief on behalf of USRE;

 

WHEREAS, USRE, on or about August 27, 2012, dismissed Defendants Williams and Cowle from the Board of Directors on the ground that they had allegedly violated federal law and otherwise allegedly breached fiduciary duties – allegations that the Defendants have vigorously disputed and which USRE formally retracts by this settlement and Agreement;

 

WHEREAS, USRE and Defendants (a “Party” or collectively, the “Parties”), in an effort to avoid the expenses, time demands and uncertainties of litigation, have reached an agreement to compromise and settle all disputes between them including, but not limited to, the Nevada Litigation and Utah Litigation;

 

NOW, THEREFORE, for and in consideration of the mutual promises herein contained, and for good and valuable consideration, the receipt, sufficiency and adequacy of which are hereby acknowledged, the Parties to this Agreement agree (subject to Court review and approval) as follows:

 

DEFINITIONS

 

“Defendants” means H. Deworth Williams, Edward F. Cowle, Geoff Williams, and Blue Cap Development Corp.;

 

“USRE” or “the Company” means U.S. Rare Earths, Inc. and its officers, directors, employees, shareholders, stockholders, attorneys, tax advisors, agents, representatives, and assigns (the “Related Parties”);

 

The “Nevada Litigation” means U.S. Rare Earths, Inc. v. Williams et al., Case No. A-12-668230-B, Eighth Judicial District Court, Clark County, Nevada;

 

The “Utah Litigation” means Williams, et al. v. U.S. Rare Earths, Inc., originally filed in the Third Judicial District Court in and for Salt Lake County in the State of Utah, and removed to the United States District Court for the District of Utah, Case No. 2:12-cv-00905-RJS;

 

The “Claims” means all demands, claims, counterclaims, cross-claims, causes, actions, suits, losses, damages, costs, attorneys’ fees, expenses, demands and amounts claimed due of whatsoever nature, known or unknown, whether in contract or in tort, whether arising at common law, in equity, or by virtue of statute or regulation, and any other causes of action that were or could have been asserted by any Party against any persons, whether a Party or a Related Party, in the Nevada Litigation or the Utah Litigation related to USRE, but excluding any claim for breach of this Settlement Agreement.

 

  

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AGREEMENT

 

1. This Agreement is subject to the review and approval of the Court before whom the Nevada Litigation (the “Nevada Court”) is pending.  Upon execution of this Agreement by the parties, this Agreement and its attachments shall be promptly submitted to the Court for appropriate notice to shareholders and approval of settlement.  The parties shall further request that upon final approval by the Court, the litigation pending in Nevada and Utah be dismissed, with prejudice.  This Agreement shall be null and void in its entirety unless the terms set forth herein are approved by the Nevada Court and all related objections or appeal period limits have expired.

 

2. Except as to any claim based upon a breach of this Agreement, USRE, in consideration of the points and undertakings agreed upon in Paragraphs four (4) through eight (8) below, and for other valuable consideration, the sufficiency of which USRE acknowledges, USRE hereby releases and forever discharges Defendants and their officers, directors, employees, shareholders, stockholders, attorneys, tax advisors, agents, representatives, and assigns from the Claims.

 

3. Except as to any claim based upon a breach of this Settlement Agreement, Defendants, in consideration of the points and undertakings agreed upon in Paragraphs four (4) through eight (8)  below and for other valuable consideration, the sufficiency of which the Defendants acknowledge, Defendants hereby release and forever discharge USRE and its officers, directors, employees, shareholders, stockholders, attorneys, tax advisors, agents, representatives, and assigns from the Claims.

 

4. As a material and integral part of this Agreement, Defendants release and forever discharge USRE and its officers, directors, employees, shareholders, stockholders, attorneys, tax advisors, agents, representatives, and assigns as it pertains to:

 

(a)           the September 12, 2012, sale of an aggregate of 2,045,450 shares of theCompany’s common stock to Lattimore Properties, Inc., a Texas companyaffiliated with John Victor Lattimore, Jr. for a total of $550,000 (five hundredfifty thousand dollars) at a price of $0.27 per share;

 

(b)           the September 13, 2012, Convertible Secured Promissory Note (“Note” or “NoteAgreement”) entered into between USRE and Unique Materials, LLC (“Holder”),affiliated with John Victor Lattimore, Jr. (Chairman of USRE’s Board of Directors) pursuant to which the Company agreed to issue a Note for $650,000 at 5% interest;

 

(c)           Defendants hereby release and forever discharge any claim to any interest inthe mining and exploration claims held by USRE, other than such claims asDefendants may hold indirectly as common stockholders of USRE.

 

5. In settlement of all Claims as defined above, USRE and Defendants further agree that this Agreement is contingent on the simultaneous execution of the Stock Purchase Agreement and Voting Shareholder Agreement attached herein as Exhibits 1 and 2, respectively.  This Agreement shall be null and void unless the Stock Purchase Agreement and Voting Shareholder Agreement are simultaneously executed.  All terms and conditions of the Stock Purchase Agreement and Voting Shareholder Agreement are material to this Agreement and incorporated herein by reference.

 

6. Subject and subsequent to a successful secondary or other cash-based stock offering or PIPE (private investment in public equity) transaction (or combination thereof) exceeding $6,000,000 (six million dollars) in proceeds at any time throughout the calendar years 2013-2014, USRE agrees:

 

(a)  pursuant to the terms of the July 19, 2011, Agreement and Plan of Merger between Colorado Rare Earths, Inc., Seaglass Holding Corp. and U.S. Rare Earths, Inc. (Delaware), to assume and maintain the office lease of certain offices of USRE located in Salt Lake City, Utah, and USRE further agrees to pay the ongoing expenses associated with maintaining the lease and cost of operating the office in the amount of $6,000 per month;

 

(b)  to reimburse Defendant D. Williams for the reasonable business costs and expenses incurred and advanced by him for the benefit of USRE as provided in the July 19, 2011, Agreement and Plan of Merger between Colorado Rare Earths, Inc., Seaglass Holding Corp. and U.S. Rare Earths, Inc. (Delaware) for an amount not to exceed $145,000 total;

 

(c)  to reimburse Defendants for their costs and fees incurred in the Utah and Nevada Litigations in an amount not to exceed $150,000;

 

(d)  to use all reasonable efforts to retrieve or “claw back” at least 2.1 million shares of USRE common stock that was authorized to be issued on or about August 27, 2012, to certain individuals for non-cash consideration and future services; and

 

(e)  that Edward F. Cowle be employed as a senior level executive with the Company with an appropriate compensation package commensurate with that position to be decided by the Board of Directors.

 

  

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7. Independent of a successful secondary or other cash-based stock offering or PIPE transaction (or combination thereof) exceeding $6,000,000 (six million dollars) at any time throughout the calendar years 2013-2014 or at all, USRE further agrees:

 

(a) That Kevin Cassidy and his firm, Logic International Consulting Group, LLC (“Logic”), including Logic’s affiliate Agincourt Capital, LLC (“Agincourt”), a FINRA registered broker-dealer, and James J. Cahill, Agincourt’s Managing Director and Registered Principal (“Cahill”), shall be compensated for their consulting services rendered to date and through the settlement of this litigation in the amount of three million (3,000,000) restricted shares and a Convertible Unsecured Promissory Note in the amount of $650,000 (six hundred fifty thousand dollars) convertible at one dollar ($1.00) per share of USRE common stock.  This does not include the standard or customary compensation that Cahill may earn through Agincourt’s normal course of business as Logic’s affiliated broker-dealer.  Logic further agrees, following consultation with the USRE Board of Directors, to restructure its consulting services agreement with USRE in good faith.

 

(b) That the Defendants have represented that they are principals in a private Idaho entity known as Thorium Energy, Inc. (formed in  2007) (“Thorium Energy”), which, in conjunction with other geologists and experts, has developed, and is developing, a proprietary process to extract, separate, process and handle the radioactive rare earths mining by-product known as thorium, widely considered to be a hazardous liability with regard to rare earths, and known to be existing in high proportion to rare earths at the Lemhi Pass.  If this process becomes viable, the remaining “heavy” rare earths mineralization in the Lemhi Pass properties currently owned and held by USRE would thus become more readily accessible and thereby, arguably more valuable.  Accordingly, USRE agrees and hereby gives the Defendants and Thorium Energy a first right of refusal for ten (10) years from the date this Agreement is executed to contract with USRE in regard to its thorium on terms consistent with those as put forth by an independent third-party bidder, joint venturer or other commercial bidder to be determined by the parties at that time.  Further, USRE agrees to execute a confidentiality and non-compete agreement in this regard at such time as the Defendants’ process is so submitted and disclosed to USRE for this purpose.

 

(c) That USRE issue to either:  (i) John Victor Lattimore, Jr.; (ii) Lattimore Properties, Inc., a Texas company affiliated with John Victor Lattimore, Jr.; or (iii) Unique Materials, LLC (“Holder”), affiliated with John Victor Lattimore, Jr. (at John Victor Lattimore, Jr.’s sole and absolute discretion), an option to purchase up to three million (3,000,000) shares of USRE common stock at $1.00 a share and upon other terms to be decided by the Board of Directors of USRE; and

 

(d) That the Holder of the Convertible Secured Promissory Note (“Note” or “Note Agreement”) mentioned in paragraph 4(b) above or any affiliate of it may not convert said Note or any other subsequent convertible note entered into with USRE to stock at less than one dollar ($1.00) per share.

 

8. The Defendants agree that upon execution of this Agreement any intellectual property, trademarks or the like (such as websites, web domains, internet sites), bearing the name or terms “U.S. Rare Earths,” or in any way referring to the mining and/or mineral claims and/or leases owned by USRE will be promptly disclosed and immediately conveyed to the Company.

 

9. Neither this Settlement Agreement, nor the fact or any terms of this Settlement Agreement, is an admission, evidence or concession by any Party of any liability or wrongdoing or damages whatsoever.  Neither this Settlement Agreement, nor the fact or any terms of this Settlement Agreement, nor the settlement negotiations, nor statements in connection therewith, nor any related documents shall be used or construed as an admission or other evidence of any fault, liability or wrongdoing by or damage to any person.

 

10. The waiver of any Party of any breach of this Settlement Agreement by any other Party shall not be deemed a waiver of any other prior or subsequent breach of any provision of this Settlement Agreement by any other Party.

 

11. This Settlement Agreement may be executed in one or more counterparts.  All executed counterparts and each of them shall be deemed to be one and the same instrument.

 

12. The terms, provisions and language of this Settlement Agreement have been negotiated and drafted by the Parties and their respective legal counsel.  DEFENDANTS AND USRE AS DEFINED ABOVE REPRESENT AND WARRANT THAT THEY HAVE CONSULTED WITH THEIR LEGAL COUNSEL.  Nothing in this Settlement Agreement should be construed or interpreted against any Party as the drafting party, or for any reason by operation of similar rules of construction.

 

13. Pursuant to its terms, this Settlement Agreement shall be binding upon and shall inure to the benefit of the successors and assigns of the Parties, including any entity into or with which any party may merge, consolidate or reorganize.

 

14. This Settlement Agreement and any and all disputes arising out of or relating to this Settlement Agreement shall be governed by and construed in accordance with the laws of the State of Nevada, without regard to choice of law principles.

 

15. Each of the Parties (i) irrevocably submits itself to the personal jurisdiction of any state or federal court sitting in Nevada, as well as to the jurisdiction of all courts to which an appeal may be taken from such courts, in any suit, action or proceeding arising out of or relating to this Settlement Agreement or any of the transactions contemplated by this Settlement Agreement, (ii) agrees that it shall not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from such court, (iii) agrees not to bring any action or proceeding arising out of or relating to this Settlement Agreement or any of the transactions contemplated by this Settlement Agreement in any other court, and (iv) expressly waives, and agrees not to plead or to make any claim that any such action or proceeding is subject (in whole or in part) to a jury trial.  Each of the Parties waives any defense of inconvenient forum to the maintenance of any action or proceeding so brought.

 

  

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16. In the event that any Party to this Settlement Agreement shall file or be required to defend any action to enforce the terms of this Settlement Agreement, including without limitation, the successful defense of any claim brought by a Party that is, or has been, released by the Parties under paragraphs 2 and 3 above of this Settlement Agreement, the prevailing Party shall be entitled to recover from the non-prevailing Party all of the prevailing Party’s costs associated with such action, including without limitation, reasonable attorneys’ fees.

 

17. If one or more of the provisions contained in this Settlement Agreement is determined by a court of competent jurisdiction to be invalid or unenforceable in any respect, the validity and enforceability of the remaining provisions of the Settlement Agreement shall not be affected or impaired, and the Parties will in good faith agree upon a valid and enforceable provision that shall be a reasonable substitute for such invalid or unenforceable provision.

 

18. Except as otherwise indicated or provided in paragraph 6(c) above, the Parties shall pay their own fees and costs, including attorneys’ fees, incurred in connection with the Action and this Settlement Agreement.

 

19. This Settlement Agreement constitutes the entire agreement among the Parties with respect to the subject matter thereof, and may be modified or amended only by a writing signed by the signatories hereto.

 

[The remainder of this page has been left blank intentionally.]

 

20. This Settlement Agreement shall be relegated or reduced to an Order of the Nevada Court such that its terms can be enforced by either Party by means of filing a Motion for an Order to Show Cause in and before the Nevada Court in which the litigation is now pending.  This Settlement Agreement shall become effective on the date on which it has been executed by both sets of Parties and upon such time as it has been approved by the Nevada Court (the “Effective Date”).

 

	
By:  Edward F. Cowle

/s/ Edward F. Cowle

Title:  Defendant, an individual

Date: 3/15/2013

	
By:  H. Deworth Williams

/s/ H. Deworth Williams

Title:  Defendant, an individual

Date: 3/15/2013

	
By:  Geoff Williams

/s/ Geoff Williams

Title:  Defendant, an individual

Date: 3/15/2013

	
By:  Blue Cap Development Corp.

/s/ Geoff Williams

Title:  Defendant, a Nevada corporation

Date: 3/15/2013

	
 

By:  John Victor Lattimore, Jr.

/s/ John Victor Lattimore, Jr.

Title:  Chairman of the Board of Directors of USRE

Date:__________________________

	
 

By:  Kevin M. Cassidy

/s/ Kevin M. Cassidy

Title:  Chief Executive Officer of USRE

Date:________________________

4uree_ex1021.htm

Exhibit 10.21

 

STOCK PURCHASE AGREEMENT

 

THIS STOCK PURCHASE AGREEMENT (this “Agreement”) dated as of March 14, 2013, between H. Deworth Williams (“D. Williams”), Edward F Cowle (“Cowle”), and Geoff Williams (“G. Williams”), collectively “Sellers”) and John Victor Lattimore, Jr. (“Lattimore”) or one of his affiliated companies – which may include Lattimore Materials, Inc. and/or Unique Materials, LLC (“Purchasers”).

 

RECITALS

 

A.           Sellers are the legal and beneficial owners of certain shares of the issued and outstanding shares of U.S. Rare Earths, Inc., a Nevada corporation (the “Company”).

 

B.           Sellers desire to sell, and Purchasers desire to purchase one million shares (1,000,000) of the Company owned by Sellers (the “Shares”) pursuant to the terms and conditions contained in this Agreement.

 

NOW, THEREFORE, in consideration of the covenants, promises and representations set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, the parties agree as follows:

 

1.           Agreement to Purchase and Sell Shares at the Closing.  Subject to the terms and conditions of this Agreement, at the Closing (hereafter defined).  Sellers shall sell, assign, transfer, convey, and deliver to purchasers, and Purchasers shall accept and purchase the Shares and any and all rights in the Shares to which Sellers are entitled, and by doing so Sellers shall be deemed to have assigned all of their rights, titles and interests in and to the Shares to Purchasers.  Such sale of the Shares shall be evidenced by stock certificates, duly endorsed in blank or accompanied by stock powers duly executed in blank or other instruments of transfer in form and substance reasonably satisfactory to Purchasers.

 

2.           Consideration for Purchase.  In consideration for the sale of the Shares, Purchasers shall deliver to Sellers (the “Purchase Price”) an aggregate of One Million Dollars ($1,000,000) immediately upon Closing.

 

3.           Closing Deliveries.

 

(a)           The purchase and sale of the shares shall be held simultaneously with the final approval of the terms and conditions of the Settlement Agreement and General Release between the parties of the litigation pending in the Eighth Judicial District Court in Clark County, Nevada encaptioned U.S. Rare Earths, Inc. v. H. Deworth Williams et al., Civil Action No. A-12-668230-B (the “Nevada Litigation”) and the final dismissal with prejudice of the Writ of Mandamus pending in the U.S. District Court of Utah encaptioned H. Deworth Williams et al v. U.S. Rare Earths, Inc., Civil Action No. 2:12-cv-00905-RJS (the “Utah Petition”) (the “Closing”).

 

  

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       (b)           Promptly upon the Closing and payment to Sellers of the Purchase Price for the Shares, the parties shall instruct the transfer agent of the Company to issue a stock certificate in the name of Purchasers representing the Shares.

 

4.           Representations and Warranties of Sellers.  As further inducement to Purchasers to enter into this Agreement and to consummate the transactions contemplated herein, Sellers hereby represent and warrant to Purchasers as follows:

 

4.1           Authority.  Sellers have the right, power, authority and capacity to execute and deliver this Agreement, to consummate the transactions contemplated hereby and to perform their obligations under this agreement.  This Agreement constitutes the legal, valid and binding obligations of sellers, enforceable against Sellers in accordance with the terms hereof.

 

4.2           Ownership.  Sellers are the sole record and beneficial owners of the shares, have good and marketable title to the Shares, free and clear of all Encumbrances (hereinafter defined), other than applicable restrictions under applicable securities laws, and have full legal right and power to sell, transfer an deliver the Shares to Purchasers in accordance with this Agreement.  “Encumbrances” means any liens, pledges, hypothecations, charges, adverse claims, options, preferential arrangements or restrictions of any kind, including, without limitation, any restriction of the use, voting, transfer, receipt of income or other exercise of any attributes of ownership.  Upon the execution and delivery of this Agreement, Purchasers will receive good and marketable title to the Shares, free and clear of all Encumbrances, other than restrictions imposed pursuant to any applicable securities laws and regulations and other than those imposed by the corollary Voting Shareholder Agreement executed contemporaneously with this Agreement.

 

4.3           Valid Issuance.  The Shares are duly authorized, validly issued, fully paid and non-assessable, and were not issued in violation of any preemptive or similar rights.

 

4.4           No Conflict.  None of the execution, delivery or performance of this Agreement, and the consummation of the transactions contemplated hereby, conflicts or will conflict with, or )with or without notice or lapse of time, or both) result in a termination, breach or violation of (i) any instrument, contract or agreement to which Sellers are a party or by which they are bound, or to which the Shares are subject; or (ii) any federal, state, local or foreign law, ordinance, judgment, decree, order, statute, or regulation, or that of any other governmental body or authority, applicable to Sellers or the Shares.

 

4.5           No Consent.  No consent, approval, authorization or order of, or any filing or declaration with any governmental authority or any other person is required for the consummation by Sellers of any of the transactions on their part contemplated under this Agreement, other than any applicable filings required by the U.S. Securities and Exchange Commission (“SEC”).

 

4.6           No General Solicitation or Advertising.  Neither any Seller nor any of their affiliates nor any person acting on their behalf has (i) conducted or will conduct any general solicitation (as that term is used in Rule 502(c) of Regulation D) or general advertising with respect to any of the Shares, or (ii) made any offers or sales of any security or solicited any offers to buy any security under any circumstances that would require registration of the Shares under the Securities Act of 1933, as amended (the “Securities Act”).

 

  

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       4.7           Full Disclosure.  No representation or warranty of Sellers to Purchasers in this Agreement omits to state a material fact necessary to make the statements herein, in light of the circumstances in which they were made, not misleading.  There is no fact known to Sellers that has specific application to the Shares or the Company that material adversely affects or, as far as can be reasonable foreseen, materially threatens the Shares or the Company that has not been set forth in this Agreement.

 

4.8           Restricted Shares.  The Purchasers acknowledge that the Shares are “Restricted Securities” as defined by rule 144(a) promulgated under the securities Act.  Purchasers agree and acknowledge that the Shares are being purchased for investment purposes only and not for resale.

 

5.           Representations and Warranties of Purchasers.  As an inducement to Sellers to enter into this Agreement and to consummate the transactions contemplated herein, Purchasers represent and warrant to Sellers as follows:

 

5.1           Authority.  Purchasers have the right, power, authority and capacity to execute and deliver this Agreement, to consummate the transactions contemplated hereby and to perform his obligations under this Agreement.  This Agreement constitutes the legal, valid and binding obligations of Purchasers, enforceable against Purchasers in accordance with the terms hereof.

 

5.2           No Consent.  No consent, approval, authorization or order of, or any filing or declaration with any governmental authority or any other person is required for the consummation by Purchasers of any of the transactions on its part contemplated under this Agreement.

 

5.3           No Conflict.  None of the execution, delivery, or performance of this Agreement, and the consummation of the transactions contemplated hereby, conflicts or will conflict with, or (with or without notice or lapse of time, or both) result in a termination, breach or violation of (i) any instrument, contract or agreement to which Purchasers are a party or by which they are bound: or (ii) any federal, state, local or foreign law, ordinance, judgment, decree, order, statue, or regulation, or that of any other governmental body or authority, applicable to Purchasers.

 

5.4           Potential Loss of Investment.  Purchasers understand that an investment in the Shares is a speculative investment which involves a high degree of risk and the potential loss of their entire investment.

 

5.5           Receipt of Information.  Purchasers have received all documents, records, books and other information pertaining to this investment that has been requested by Purchasers, including without limitation, the SEC filings made by this Company.

 

  

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       5.6           No Advertising.  At no time were Purchasers presented with or solicited by any leaflet, newspaper or magazine article, radio or television advertisement, or any other form of general advertising or solicited or invited to attend a promotional a meeting otherwise than in connection and concurrently with such communicated offer.

 

5.7           Investment Experience/”Accredited Investor” Status.  Purchasers (either by themselves or with their advisors) are (i) experienced in making investments of the kind described in this Agreement, (ii) able, by reason of their business and financial experience, to protect their own interests in connection with the transactions described in this Agreement, and (iii) able to afford the entire loss of its investment in the Shares.  In addition, Purchasers are “accredited investors” as that term is defined in Rule 501 of Regulation D promulgated under the Securities Act and they have otherwise been given access to the kind of information regarding the Company that would be contained in a registration statement if one were filed with the SEC.

 

5.8           Full Disclosure.  No representation or warranty of Purchasers to sellers in this Agreement omits to state a material fact necessary to make the statements herein, in light of the circumstances in which they were made, not misleading.  There is no fact known to Purchasers that materially adversely affects or, as far as can be reasonably foreseen, that has not been set forth in this Agreement.

 

6.           Indemnification: Survival.

 

6.1           Indemnification.  Each party hereto shall jointly and severally indemnify and hold harmless the other party and such other party’s agents, beneficiaries, affiliates, representatives and their respective successors and assigns (collectively, the “Indemnified Persons”) from and against any and all damages, losses, liabilities, taxes and costs and expenses (including, without limitation, attorneys’ fees and costs) (collectively, the “Losses”) resulting directly or indirectly form (a) any inaccuracy, misrepresentation, breach of warranty or non-fulfillment of any of the representations and warranties of such party in this Agreement, or any actions, omissions or statements of fact inconsistent with in any material respect any such representation or warranty, (b) any failure by such party to perform or comply with any agreement, covenant or obligation in this Agreement.

 

6.2           Survival. All representations, warranties, covenants and agreements of the parties contained herein or in any other certificate or document delivered pursuant hereto shall survive the date hereof until the expiration of the applicable statute of limitations.

 

7.           Miscellaneous.

 

7.1           Further Assurances.  From time to time, whether at or following the Closing, each party shall make reasonable commercial efforts to take, or cause to be taken, all actions, and to do, or cause to be done, all things reasonably necessary, proper or advisable, including as required by applicable laws, to consummate and make effective as promptly as practicable the transactions contemplated by this Agreement.

 

  

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7.2           Notices.  All notices or other communications required or permitted hereunder shall be in writing shall be deemed duly given (a) if by personal delivery, when so delivered, (b) if mailed, three (3) business days after having been sent by registered or certified mail, return receipt requested, postage prepaid and addressed to the intended recipient as set forth below, or (c) if sent through an overnight delivery service in circumstances to which such service guarantees next day delivery, the day following being so sent to the addresses of the parties as indicated on the signature page hereto.  Any party may change the address to which notices and other communications hereunder are to be delivered by giving the other parties notice in the manner herein set forth.

 

7.3           Choice of Law; Jurisdiction.  This Agreement shall be governed, construed and enforced in accordance with the laws of the State of Nevada, without giving effect to principles of conflicts of law.  Each of the parties agrees to submit to the jurisdiction of the federal or state courts located in Law Vegas, Nevada, in any actions or proceedings arising out of or relating to this Agreement.  Each of the parties, by execution and delivery of this Agreement, expressly and irrevocably (i) consents and submits to the personal jurisdiction of any of such courts in any such action or proceeding; (ii) consents to the service of any complain t, summons, notice or other process relating to any such action o proceeding by delivery thereof to such party as set forth in Section 7.2 above and (iii) waives any claim or defense in any such action or proceeding based on any alleged lack of personal jurisdiction, improper venue or forum non conveniens or any similar basis.  EACH OF THE UNDERSIGNED HEREBY WAIVES FOR ITSELF AND ITS PERMITTED SUCCESSORS AND ASSIGNS THE IRGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING INSTITUTED IN CONNECTION WITH THIS AGREEMENT.

 

7.4           Assignment.  Each party’s rights and obligations under this Agreement shall not be assigned or delegated, by operation of law or otherwise, without the other party’s prior written consent, and any such assignment or attempted assignment shall be void, of no force and effect, and shall constitute a material default by such party.

 

7.6           Amendments.  This Agreement may be amended, modified, superseded or cancelled, and any of the terms, covenants, representations, warranties or conditions hereof may be waived, only by a written instrument executed by the parties hereto.

 

7.7           Waivers.  The failure of any party at any time or times to require performance of any provision hereof shall in no manner affect the right at a later time to enforce the same.  No waiver by any party of any condition, or the breach of any term, covenant, representation or warranty contained in this Agreement, whether by conduct or otherwise, in any one or more instances shall be deemed to be or construed as a further or continuing waiver of any such condition or breach or a waiver of any other term, covenant, representation or warranty of this Agreement.

 

7.8           Counterparts.  This Agreement may be executed simultaneously in two or more counterparts and by facsimile, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

7.9           Severability.  If any term, provisions, covenant or restriction of this Agreement is held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party.  Upon such determination, the parties shall negotiate in good faith to modify Agreement so as to effect the original intent of the parties as closely as possible in an acceptance manner in order that the transactions contemplated hereby be consummated as originally contemplated in the fullest extent possible.

 

  

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7.10           Interpretation.  The parties agree that this Agreement shall be deemed to have been jointly and equally drafted by them, and that the provisions of this Agreement therefore shall not be construed against a party or parties on the ground that such party or parties drafted or was more responsible for the drafting of any such provision(s).  The parties further agree that they have each carefully read the terms and conditions of this Agreement, that they know and understand the contents and effect of this Agreement and that the legal effect of this Agreement has  been fully explained to its satisfaction by counsel of its own choosing.

 

8.           Escrow.

 

8.1           Escrow Agent.  The parties agree that the Company’s transfer agent shall act as escrow agent for transaction, which is Manhattan Transfer Registrar Company, located at 57 Eastwood Road, Miller Place, NY 11764.

 

8.2           Escrow Deposit by Sellers.  Upon the signature and execution of this Agreement, Sellers agree to deposit one million (1,000,000) shares of U.S. Rare Earths, Inc. common stock with the Company’s transfer agent to be held in escrow pursuant to the Escrow Agreement attached here as Exhibit A.

 

8.3           Escrow Deposit by Purchaser.  Upon the signature and execution of this Agreement, Purchasers agree to deposit the sum of One Million Dollars ($1,000,000) (the “Purchase Funds”) with the Company’s transfer agent to be held in escrow pursuant to the Escrow Agreement attached her as Exhibit A.

 

8.4           Disbursement.  Upon Closing, the transfer agent will immediately disburse the Purchase Funds and Shares as contemplated by this Agreement.

 

[Remainder of Page Intentionally Left Blank: Signature Page to Follow]

 

  

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IN WITNESS WHEREOF, the parties have duly executed this Stock Purchase Agreement as of the date first above written.

 

	 	 
PURCHASER:

	 
	 	 	 	 
	
 

	
By: 

	/s/ John Victor Lattimore, Jr.	 
	 	Name: 	John Victor Lattimore, Jr.	 
	 	 	 	 
	 	 	 	 

 

	 	
SELLERS

	 
	 	 	 	 
	
 

	
By: 

	/s/ H. Deworth Williams	 
	 	Name: 	H. Deworth Williams	 
	 	 	 	 
	 	 	 

	 	 	 
	 	 	 	 
	
 

	
By: 

	/s/ Edward F. Cowle	 
	 	Name: 	Edward F. Cowle	 
	 	 	 	 
	 	 	 

 

	 	 	 
	 	 	 	 
	
 

	
By: 

	/s/ Geoff Williams	 
	 	Name: 	Geoff Williams	 
	 	 	 	 
	 	 	 

7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00229-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00229-of-00352.parquet"}]]