Document:

AMENDMENT NO. 4 TO PURCHASE AGREEMENT

 

This amendment no. 4 (the "Amendment") amends the purchase agreement by and between Billali Mine, LLC and JC Imperial, LLC (collectively, the "Seller") and Mineral Acquisitions, LLC ("Buyer") dated on or about January 4, 2019, amended on March 8, 2019, further amended on January 21, 2020 and further amended on May 1, 2020 (collectively referred to as the "Purchase Agreement"), and is dated effective October 7, 2020 ("Effective Date").

 

WHEREAS, the Seller and Buyer desire to amend the Purchase Agreement to reflect revised payment terms of the Purchase Agreement;

 

NOW, THEREFORE, in consideration of the above, and for other good and valuable consideration including the desire to work together during the COVID-19 pandemic and concurrent economic uncertainty, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

I.Amended and Restated Section 2.B. Section 2.B of the Purchase Agreement is hereby amended and restated in its entirety as follows: 

 

"B. Payment of the Purchase Price. The Total Purchase Price of $10,000,000 will be paid as follows:

(i)Six Hundred Thousand Dollars ($600,000) has been paid by Buyer to Seller as of the date of this Amendment. 

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(ii)Commencing November l, 2020 and continuing on the first day of each 

subsequent month thereafter, a monthly payment of $25,000 will be paid until (A) the mill processing plant to create concentrate is in operation and

(B) we received our first payment for shipment of such concentrate from 

the mill (satisfaction of these two items is referred to as "Milestone"). Upon

satisfaction of this Milestone and commencing on the first day of the following month and continuing the first day of each subsequent month thereafter, Buyer will pay to Seller the sum of Fifty Thousand Dollars ($50,000) until a total of One Million Six Hundred Thousand Dollars ($1,600,000 is paid.

(iii)Commencing 30 days after the last payment in (ii) above and continuing with 48 subsequent payments every 30 days thereafter, Buyer will pay to Seller the sum of One Hundred Seventy-Five Thousand Dollars ($175,000.00) per period. 

(iv)Each payment made hereunder will be allocated Twenty-Five per cent (25%) to the Billali and Seventy-Five percent (75%) to the Jim Crow, Imperial." 

2.No Other Amendments or Supplements. Except as set forth in Sections 1 and 7 hereof, the Purchase Agreement shall remain in full force and effect as currently in effect. 

3.Severability.  Should any one or more of the provisions of this Amendment be determined to be illegal or unenforceable, all other provisions of this Amendment shall be given effect separately from the provision or provisions determined to be illegal or unenforceable and shall not be effected thereby. 

 

4.Counterparts.  This Amendment may be executed in multiple counterparts with the same effect as if all parties had signed the same document. All such counterparts shall be deemed an original, shall be construed together and shall constitute one and the same instrument. 

 

5.Entire Agreement. This Amendment and the Purchase Agreement constitute the full and entire understanding and agreement between the parties with respect to the subject matter hereof. 

 

6.Defined Terms. Defined terms used in this Amendment shall have the meaning ascribed to them herein or in the Purchase Agreement. 

 

7.Waiver of Events of Default. As of the Effective Date, Seller hereby waives each and every breach and event of default of Buyer in the Purchase Agreement, and Seller and Buyer hereby confirm and acknowledge that the Purchase Agreement and this Amendment are binding on each other and in full force and effect. 

 

IN WITNESS WHEREOF, each of the parties hereto has executed this Amendment or has caused this Amendment to be executed on its behalf by a representative duly authorized, all as of the date first above set forth.

 

SELLER:BUYER: 

 

Billali, LLC and JC Imperial, LLCMineral Acquisition, LLC 

 

 

 

 

 

 

 

 

 

 

 

 

 

2DIRECTOR’S AGREEMENT

 

This Director’s Agreement (this “Agreement”) is made and entered into as of the 3rd day of November, 2020 (the “Effective Date”), by and between Brian Adair (hereinafter referred to as “Director”) and Santa Fe Gold Corporation, a Delaware corporation (“Company”).

 

WITNESSETH:

 

WHEREAS, Director serves as a chairman of the board of directors (“Board”) and desires to be paid for his continued efforts as chairman.

 

NOW, THEREFORE, the parties hereto, intending to be legally bound, agree as follows:

 

1.Services of Chairman 

 

The chairman of the Board (“Director”) agrees to devote the amount of time, skill, and efforts during the term of this Agreement to the affairs of Company as may be reasonably requested and required of Director and in accordance with the duties and obligations imposed upon directors of corporations by the Company’s Certificate of Incorporation, Bylaws, Delaware corporate law, and federal and state securities law. As the Company lacks a chief executive officer, Director will assume certain responsibilities that would normally fall under the job description of the chief executive officer, including without limitation, negotiating a potential joint venture arrangement with respect to developing certain mining properties and formulating and implementing a financing plan with the goal to provide the Company with sufficient liquidity. This Agreement shall continue until June 30, 2021.

 

2.Compensation 

 

The Company shall pay Director the sum of $75,000 for the quarter ending June 30, 2020 and $300,000 for services rendered during the fiscal year ended June 30, 2021, paid through the issuance of restricted common shares, the number of shares to be issued monthly. The number of shares for issuance is determined monthly and based on the average share price of Company common stock for the month of measurement divided into $25,000. Shares to vest 1/12 per month during the current fiscal year (the first 4 months will have vested as of the effective date hereof, with the balance to vest pro-rata on the last day of each calendar month during this current fiscal year). The shares for the quarter ended June 30, 2020, have vested as of June 30, 2020. The Company shall reimburse Director for any out-of-pocket expenses incurred to attend Board of Director meetings or such other Company meetings or functions as the Company might request after submission of appropriate documentation.

 

3.Confidential and Proprietary Information; Documents 

 

3.1Director recognizes and acknowledges that Director will have access to certain information of Company that is confidential and proprietary and constitutes valuable and unique property of Company. Director agrees that Director will not at any time, either during or subsequent to the term of this Agreement, disclose to others, use, copy or permit to be copied, except in pursuance of Director’s duties on behalf of Company, its successors, assigns or nominees, or as required by the order of any tribunal having jurisdiction or by mandatory provisions of applicable law, any confidential information or know-how of Company without the prior written consent of the Board of Company. Director further agrees to maintain in confidence any confidential information of third parties received as a result of Director’s relationship with Company. 

 

3.2Director further agrees to deliver to Company promptly after his resignation, removal or failure to be nominated or elected as a member of the Board, all materials correspondence, memoranda , notes, records, plans, or other documents and all copies thereof (all of which are hereafter referred to as the “Documents”), made, composed or received by Director, solely or jointly with others, and which are in Director’s possession, custody, or control at such date and which are related in any manner to the past, present, or anticipated business of Company. 

4.Conflicts of Interest 

 

4.1In keeping with Director’s fiduciary duties to Company, Director agrees that Director shall not, directly or indirectly, become involved in any conflict of interest, or upon discovery thereof, allow such a conflict to continue. Moreover, Director agrees that Director shall promptly disclose to the Board of Company any facts which might involve any reasonable possibility of a conflict of interest as Company is currently and in the future configured and practicing business. Director shall maintain the highest standards of conduct, and shall not do anything likely to injure the reputation or goodwill of Company, or embarrass or otherwise generate adverse publicity for or bring unwanted attention to Company. 

 

4.2It is agreed that any direct or indirect interest in, connection with, or benefit from any outside activities, particularly commercial activities, which interest might in any way adversely affect Company or any of its subsidiaries or affiliates, involves a possible conflict of interest. Circumstances in which a conflict of interest on the part of Director would or might arise, and which should be reported immediately by Director to an officer of Company, include, without limitation, the following: (a) ownership of a material interest in, acting in any capacity for, or accepting directly or indirectly any payments, services or loans from a supplier, contractor, subcontractor, customer or other entity with which Company does business; (b) misuse of information or facilities to which Director has access in a manner which will be detrimental to Company’ interest; (c) disclosure or other misuse of information of any kind obtained through the Director’s connection with Company; (d) acquiring or trading in, directly or indirectly, other properties or interests adjacent to the properties and by Company; (e) the appropriation to the Director or the diversion to others, directly or indirectly , of any opportunity in which it is known or could reasonably be anticipated that Company would be interested unless Company is precluded from or chooses not to pursue such opportunity; and (f) the ownership, directly or indirectly, of a material interest in an enterprise in direct competition with Company or acting as a director, officer, partner, consultant, Director or agent of any enterprise which is in direct competition with Company. 

 

5.Miscellaneous 

 

5.1This Agreement is made and entered into as of the Effective Date and the rights and obligations of the parties hereto shall be binding upon the heirs and legal representatives of the Director and the successors and assigns of Company. This Agreement may be assigned by Company (including assignment by operation of law to any successor to the business of Company by merger, consolidation or other business combination) without the consent of Director but is personal to the Director and no rights, duties, and obligations of Director hereunder may be assigned without the consent of Company or its assigns, which may be granted or withheld in its sole discretion. 

 

5.2No waiver or non-action with respect to any breach by the other party of any provision of this Agreement, nor the waiver or non-action with respect to any breach of the provisions of similar agreements with other Directors shall be construed to be a waiver of any succeeding breach of such provision, or as a waiver of the provision itself. 

 

5.3Should any portions hereof be held to be invalid or wholly or partially unenforceable, such holding shall not invalidate or void the remainder of this Agreement. The portions held to be invalid or unenforceable shall be revised and reduced in scope so as to be valid and enforceable, or, if such is not possible, then such portions shall be deemed to have been wholly excluded with the same force and effect as it if had never been included herein. 

 

5.4Director ‘s obligations with regards Section 3 of this Agreement to Company shall survive Director’s resignation, removal or failure to be nominated or elected as a member of the Board of Company. 

 

5.5This Agreement supersedes. replaces and merges any and all prior and contemporaneous understandings, representations, agreements and discussions relating to the same or similar subject matter as that of this Agreement between the Director and Company and constitutes the sole and entire agreement between the Director and Company with respect to the subject matter of this Agreement. 

Director’s Agreement
November 3, 2020
Page 3 of 4

5.6The laws of the State of Delaware, excluding any conflicts of law rule or principle that might otherwise refer to the substantive law of another jurisdiction, will govern the interpretation, validity and effect of this Agreement without regard to the place of execution or the place for performance thereof. 

 

5.7All notices and other communications required or permitted hereunder or necessary or convenient in connection herewith shall be in writing and shall be deemed to have given when mailed by registered mail or certified mail, return receipt requested, as follows: 

 

As to the Director, at the Director’s home address on file with the Company.

 

As to the Company:

 

Santa Fe Gold Corporation 
Attn: Board of Directors 
3544 Rio Grande Blvd., 
NW Albuquerque, NM 87107

 

or to such other addresses as either party may designate by notice to the other party hereto in the manner specified in this section.

 

5.8This Agreement may not be changed or terminated orally, and no change, termination or waiver of this Agreement or of any of the provisions herein contained shall be binding unless made in writing and signed by both parties, and in the case of Company, by an authorized officer of Company. Any change or changes, from time to time, in Director’s compensation shall not be deemed to be, a change, termination or waiver of this Agreement or of any of the provisions herein contained. 

 

IN WITNESS WHEREOF, the undersigned have hereby caused this Agreement to be effective as of the date first written above.

 

 

Director’s Agreement
November 3, 2020
Page 4 of 4

5.7All notices and other communications required or permitted hereunder or necessary or convenient in connection herewith shall be in writing and shall be deemed to have given when mailed by registered mail or certified mail, return receipt requested, as follows: 

 

As to the Director, at the Director ‘s home address on file with the Company. 

As to the Company:

Santa Fe Gold Corporation 

Attn: Board of Directors 

3544 Rio Grande Blvd., NW 

Albuquerque, NM 87107

 

or to such other addresses as either party may designate by notice to the other party hereto in the manner specified in this section.

 

5.8This Agreement may not be changed or terminated orally, and no change, termination or waiver of this Agreement or of any of the provisions herein contained shall be binding unless made in writing and signed by both parties, and in the case of Company, by an authorized officer of Company. Any change or changes, from time to time, in Director’s compensation shall not be deemed to be, a change, termination or waiver of this Agreement or of any of the provisions herein contained. 

 

IN WITNESS WHEREOF, the undersigned have hereby caused this Agreement to be effective as of the date first written above.

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