Document:

RESCISSION AGREEMENT

 

EXHIBIT 10.1

RESCISSION AGREEMENT

 

This Rescission Agreement (this “Agreement”) is made this 26th day of December, 2017, by and between WALKER LANE EXPLORATION, INC., a Nevada corporation (the "Company") and SJE Mining LLC, a Nevada limited liability company ("SJE"). The Company and SJE are at times herein referred to individually as a "Party" and together as the "Parties."

Background

A. The Company and SJE made and entered into that certain agreement (the “Asset Purchase Agreement”), dated as of July 31, 2014, whereby SJE transferred to the Company certain mining claims (herein the “Mining Claims” and more particularly described in the annexed Schedule 1, incorporated herein by reference) and in consideration of the Mining Claims, the Company:

1. 

Issued 200 million (subsequently, on September 22, 2014, reduced to the amount of 8 million shares as the result of a reverse stock split) of its unregistered shares of common stock (the “Common Shares”);

2. 

Assumed liabilities of USD 150,000, represented by three promissory notes (the “Notes” as more particularly described in the annexed Schedule 2, incorporated herein by reference); and

3.

Five Notes executed by Walker Lane and will remain with Walker Lane.  The Notes are as follows:  Steve Jones $10,000 and $10,000; Toby Mancuso $5,000 and Trevor Moss $10,000 and $10,000.  It is proposed they will all agree to exchange the notes for Company stock in the future. Notes attached in Schedule 

 

B. Subsequently, the Company and SJE have determined to cancel and rescind the Asset Purchase Agreement, effective as of the date of this Agreement.

 

Agreement

     Now, therefore, in consideration of the foregoing, the Parties agree as follows:

1. Rescission  The Company and SJE hereby mutually rescind the Asset Purchase Agreement in all respects, effective as of the date of this Agreement, it being understood and agreed that there shall be no remaining or surviving obligations for either the Company or SJE thereunder, notwithstanding any provisions to the contrary contained in the Asset Purchase Agreement. All obligations contained in the Asset Purchase Agreement for both the Company and SJE are fully extinguished and released in favor of this Agreement, which supersedes the Asset Purchase Agreement in its entirety.

2. Restoration of Shares and Mining Claims and Transfer of Liabilities. 

(a) 

No later than January 31, 2018, SJE shall:

(i) 

transfer and assign 6.25 million (a close approximation of the shares issued to Steve Jones, Eric Stevenson and their assigns-the actual number will come from  the transfer agent Empire Stock) of the Common Shares back to the Company for cancellation, free and clear of liens, encumbrances or other restrictions, retaining the remaining Common Shares [subject to reduction pursuant to section 3(b) below];

(ii)

assume in writing the liabilities originally evidenced by the Notes, in a form satisfactory to the Company’s legal counsel;

(iii) 

as there were no Series B Preferred shares granted to anyone in SJE Mining or its affiliates or associates.  The preferred shares issued in place of payment of the notes and accrued interest were to my investors Ron Ruby ($10,000) and Arlon Franz ($100,000) which we are keeping in Walker Lane and will exchange the preferred stock to common at a 2:1 ratio;

(iv)

deliver to the current secretary of the Company all of the historical minutes, stock subscriptions, and books and records of the Company in the possession or control of SJE, for which SJE shall be issued a written receipt;

(v)

make such adjustments its books and records to reflect the transactions contemplated by this Agreement; and

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(vi) 

take such other and further actions necessary to carry out the purposes and intents of this Agreement without delay, including effecting the release of any UCC-1 financing statements recorded against the Company.  Referencing the UCC, we (Walker Lane) will address the UCC filed by Keith Simon not SJE Mining.  He will release the UCC in exchange for a Note in that amount which he will convert to stock at a mutually agreed upon share price to be determined later;

(b) 

No later than January 31, 2018, the Company shall:

(i) 

execute, acknowledge and deliver to SJE one or more special warranty deeds, transfering to SJE any remaining Mining Claims from the original Purchase Agreement, free and clear of liens, encumbrances or other restrictions attributable to the Company or held by persons claiming by or through the Company

(ii)

make such adjustments its books and records to reflect the transactions contemplated by this Agreement; and

(iii) 

take such other and further actions necessary to carry out the purposes and intents of this Agreement without delay.

(c)

Upon the Company’s full performance of its obligations hereunder, the Company shall be entitled to (i) instruct its transfer agent and registrar to cancel the Common Shares and (ii) adjust its financial statements to remove the liabilities previously assumed by the Company under the Asset Purchase Agreement, with effect as of December 31, 2017. 

3. Additional Terms. 

(a) 

The portion of the Common Shares retained by SJE shall be subject to a voluntary lockup agreement for a period of one (1) year from the date that SJE has performed its obligations hereunder, provided that so long as SJE is not in default hereunder the Company will permit 100,000 eligible Common Shares per calendar quarter, beginning on the last business day of April of 2018, to be qualified for resale by SJE, by the Company instructing its transfer agent to remove the restrictive legend. 

(b)

For each calendar day of delay beyond January 31, 2018, by SJE in performing its obligations hereunder, the quantity of Common Shares that SJE shall be permitted to retain hereunder shall be reduced by 20,000 shares.

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(c)

Upon the Parties’ execution of this Agreement, the Company shall pay to SJE the sum of USD $4,000, to be used by SJE as its deems appropriate in facilitating the actions to be taken by SJE hereunder.

 

(d)

By no later than January 31, 2018, the Parties shall in good faith negotiate the form and content of a mutual Release and Indemnification Agreement, under which they shall each agree to release, indemnify and hold the other Party harmless from third party claims, known or unknown, for which they are responsible, including any unpaid employee or consultant compensation accrued during the period from the closing of the Asset Purchase Agreement to the date of this Agreement. The Parties each agree to execute and deliver to the other Party a signed original of such agreement within three business days following their mutual acceptance of its terms.

4. Miscellaneous.  

(a)

This Agreement shall be governed and construed according to the laws of the State of Nevada, as if this Agreement were wholly executed and wholly performed within such jurisdiction, and without reference to the conflicts of laws principles thereof.  All disputes between the parties hereto arising out of or in connection with the interpretation or execution of this Agreement, shall be finally settled by the courts of competent jurisdiction located in Carson City, Nevada.

(b)

In the event of any dispute hereunder, the prevailing party shall be entitled to recover, in addition to the relief sought in the action, their court costs and fees of attorneys.

(c)

For notice purposes, correspondence and written communications between the Parties shall be sent to the addresses set forth below the signatures of the Parties below.

     

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     IN WITNESS WHEREOF, the Parties have executed this Agreement by their duly authorized representatives.

		
	The “Company”

	“SJE”

	 
	 

	WALKER LANE EXPLORATION, INC.,

	SJE Mining LLC, a Nevada Limited

	a Nevada Corporation

	Liability Company

	 
	 

	 
	 

	 
	 

	By /s/ Phillip Allen

	By /s/ Eric Stevenson

	Name: Phil Allen

	Name: Eric Stevenson

	Title:  CEO, Chairman

	Title: Managing Member

	Address for Notices 4750 S. Dudley St.

	Address for Notices 102 N. Curry St.

	#36   Littleton, CO 80123

	Carson City, NV 89703

	 
	 

	By: Iain A. Stewart

	By: Steven K. Jones

	Name:  Iain Stewart

	Name: Steven Jones

	Title:  EVP, Director

	Title:  Member

	Address for Notices 2518 Stonecrest Dr.

	Address for Notices 102 N. Curry St.

	Fort Collins, CO 80521

	Carson City, NV 89703

	 
	 

	By: /s/ Keith Simon

	 

	Name:  Keith Simon

	 

	Title:  CFO, Director

	 

	Address for Notices 963 Chip Creek et

	 

	Mindor, NV 89423

	 

	 
	 

	 
	 

	 
	 

	 
	 

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Schedule 1

List of claims for the Pyramid Property, Washoe County, Nevada.  All claims are in Township 23 North, Range 21 East, MDBM.

			
	Claim Name

	Section

	NMC #

	Pyramid-1

	16

	1088279

	Pyramid-2

	16

	1088280

	Pyramid-3

	16

	1088281

	Pyramid-4

	16

	1102565

	Pyramid-5

	16

	1102566

	Pyramid-6

	16, 19

	1102567

	Pyramid-7

	16

	1102568

	Pyramid-8

	16

	1102569

	Pyramid-9

	16

	1102570

	Pyramid-10

	9

	1102571

List of claims for the West Trinity Property, Churchill County, Nevada.  All claims are in Township 24 North, Range 27 East, MDBM.

			
	Claim Name

	Section

	NMC #

	WT-1

	17

	1090104

	WT-2

	17

	1102542

	WT-3

	17

	1102543

	WT-4

	17

	1102544

	WT-5

	17

	1102545

	WT-6

	17

	1102546

	WT-7

	17

	1102547

	WT-8

	17

	1102548

	WT-9

	17

	1102549

	WT-10

	18

	1102550

	WT-11

	18

	1102551

	WT-12

	18

	1102552

	WT-13

	18

	1102553

	WT-14

	18

	1102554

	WT-15

	18

	1102555

	WT-16

	18

	1102556

	WT-17

	18

	1102557

	WT-18

	18

	1102558

	WT-19

	18

	1102559

	WT-20

	18

	1102560

	WT-21

	18

	1102561

	WT-22

	18

	1102562

	WT-23

	18

	1102563

	WT-24

	18

	1102564

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Schedule 2

Assumed liabilities of USD $150,000, represented by three promissory notes (the “Notes” as more particularly described, incorporated herein by reference); and consisting of three note holders to include:

1.

 Steven K. Jones.  Amount of note is $50,000.

2.

Trevor Moss.  Amount of note is $50,000.

3.

Wayne Leung.  Amount of note is $50,000.

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Schedule 3

Five Notes executed by Walker Lane totaling USD$45,000. will remain with Walker Lane.  The Notes are as follows:  Steve Jones $10,000 and $10,000; Toby Mancuso $5,000 and Trevor Moss $10,000 and $10,000.

8RELEASE AND INDEMNIFICATION AGREEMENT

 

EXHIBIT 10.2

RELEASE AND INDEMNIFICATION AGREEMENT

 

This RELEASE AND INDEMNIFICATION AGREEMENT (this “Agreement”) is entered into as of December 31, 2017, by and among Walker Lane Exploration, Inc, a Nevada Corporation (“Indemnitor”), for itself and its officers, directors, employees, agents, members and shareholders (as applicable), and affiliates (the “Indemnifying Parties”), and SJE Mining, a Nevada LLC (“Indemnitee”), acting for itself and the additional persons in the class defined in Section 2.1 below (the “Indemnified Parties”). At times herein, the named parties are referred to collectively as the “Parties” and individually as a “Party”.

WITNESSETH:

WHEREAS, the Parties have made and entered into that certain Rescission Agreement, dated  December 26, 2017, pursuant to which they have agreed to rescind an Asset Purchase Agreement and have each agreed to take certain actions in furtherance thereof, including the execution and delivery by each Party of an original of this Release and Indemnification Agreement; and 

 

WHEREAS, in satisfaction of its obligation under such Rescission Agreement, the Indemnitor identified above as representing the Indemnifying Parties, now wishes to execute and deliver this instrument to the Indemnitee identified above and the other Indemnified Parties.

NOW, THEREFORE, in consideration of the mutual benefits contained herein, IT IS HEREBY AGREED:

1. Release. The Indemnitor, acting for itself and with all required authority in behalf of each of the other Indemnifying Parties, hereby irrevocably releases and agrees to hold harmless the Indemnitee and each of the other Indemnified Parties, from any and all known claims now held by the Indemnitor or any of the Indemnifying Parties.

2. Indemnification.

 

2.1. Third-Party Claims. The Indemnifying Parties, jointly and severally, shall indemnify and hold harmless the Indemnitee, as well as the Indemnitee’s officers, directors, members, employees and agents (herein collectively referred to as “Indemnified Parties”), from and against any and all suits, actions, claims, losses, liabilities, judgments, awards and costs (including reasonable legal fees and expenses) incurred by, borne by or asserted by a third party against any of the Indemnified Parties in any way relating to, arising out of or resulting from any prior acts of the Indemnifying Parties in connection with the subject matter of the said Asset Purchase Agreement or the Rescission Agreement. 

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2.2. Notice and Defense. The Indemnified Parties agree to promptly notify the Indemnitor in writing of any such claim or suit within ten (10) banking days that the pleading, demand letter, or other notice is served upon any of the Indemnified Parties; and agrees to cooperate in a reasonable manner with the Indemnifying Parties and at the Indemnifying Parties’ expense, with respect to the defense and disposition of such claim. The Indemnifying Parties shall have control of the defense or settlement; provided, however, that the Indemnifying Parties shall not enter into any settlement that obligates the Indemnified Parties to take any action or incur any expense without such Indemnified Parties’ prior written consent, and further provided that the Indemnified Parties shall have the right to be represented by independent counsel of their own choosing, at their own expense, in connection with such claim or suit.  If the Indemnifying Parties fail to defend such suit, then the Indemnified Parties, through counsel of their own choice, shall, at the joint and several expense of the Indemnifying Parties, shall have the right to conduct the defense of such claim; provided however that the Indemnified Parties shall not enter into any settlement that obligates the Indemnifying Parties to take any action or incur any expense without the Indemnifying Parties’ prior written consent.

             

2.3. Survival. This section 2 (Indemnification) shall continue in full force and effect for a period of five (5) years after the closing of the said Rescission Agreement. 

3. Miscellaneous.

             

3.1. Successors and Assigns. The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and assigns of each of the Parties.

             

3.2. Notice. Whenever notice is required or permitted hereunder the Party shall give notice to the other Parties by a recognized overnight courier service such as Federal Express, UPS or DHL, with signature required to confirm delivery. Any such notice shall be addressed to a Party at the most recent address used by the Parties in their course of dealings. 

3.3. Governing Law.  This Agreement shall be governed by and construed under the laws of the State of Nevada without reference to principles of conflict of laws or choice of laws, and each party to this Agreement agrees to submit to the jurisdiction of the courts of the State of Nevada, sitting in Carson City.

             

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

             

3.5. Attorneys’ Fees.  If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing Party shall be entitled to reasonable attorneys’ fees, costs and necessary disbursements in addition to any other relief to which such Party may be entitled.

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3.6. Amendments and Waivers. Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively) only with the written consent of all of the Parties hereto.

             

3.7. Severability.  If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision(s) shall be excluded from this Agreement and the balance of the Agreement shall be interpreted as if such provision(s) were so excluded and shall be enforceable in accordance with its terms.

             

3.8. Entire Agreement. This Agreement constitutes the entire agreement and understanding of the Parties with respect to the subject matter hereof and supersedes any and all prior negotiations, correspondence, agreements, understandings duties or obligations among the Parties with respect to the subject matter hereof.

In Witness Whereof, the undersigned, having full power and authority to bind their respective principals, as applicable, have executed this Agreement as of the date first shown above.

“Indemnitor”

Walker Lane Exploration, a Nevada corporation, for itself and in behalf of the other Indemnifying Parties:

		
	By /s/ Phillip Allen

	By /s/ Eric Stevenson

	Name: Phillip Allen

	Name: Eric Stevenson

	Title:  CEO and Chairman of the Board

	Title: Managing Member

	 
	 

	 
	 

	By /s/ Keith Simon

	By /s/ Steven K. Jones

	Name:  Keith Simon

	Name: Steve Jones

	Title:  CFO, Director

	Title:  Member

	 
	 

	 
	 

	By /s/ Iain A. Stewart

	 

	Name:  Iain Stewart

	 

	Title:  EVP, Director

	 

	 
	 

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